Continuing Our

2018

Journey into
the Future Vision Commitment Ac tion
About this Report
Kruger Products, L.P. (KPLP)’s 2018 Sustainability Report describes
KPLP’s performance and management actions in key areas of
environmental, social and economic sustainability. Performance
data covered in this report reflects the 2018 calendar year and
previous calendar years where stated. Data covers all of KPLP’s
manufacturing operations, which are located in Canada and
the United States. Deviations from this boundary are clearly
identified and stated within the report, data tables and footnotes.
Explanations are provided, where available, for any deviations.
Performance data are collected in accordance with relevant
laws and regulations or accepted voluntary standards. Where
appropriate, we report performance normalized to metric tonnes
of production for a given year. All dollar values are expressed in
Canadian currency unless otherwise indicated. Our sustainable
development program, Sustainability 2020, was launched in 2016
and utilizes calendar year 2009 baseline data.

KPLP’s sustainability report is informed by the Global Reporting

Initiative’s GRI Standard and the United Nation’s Sustainable
Development Goals (SDG’s). We do not currently have a policy
to seek external assurance for our report. This report has been
reviewed by key KPLP leadership members including the CEO.

2
Table of Contents
1.0 Introduction 4 4.0 Our Operations 29
1.1 About Kruger Products 5 4.1 Investing in Our Future 30
1.2 Our Sustainability Journey 9 4.2 Energy & Climate 31
1.3 Sustainability 2020 13 4.3 Water 33
4.4 Environmental Protection 34
2.0 Our Business 15
2.1 Mission, Vision & Values 16 5.0 Our People 36
2.2 Financial Highlights 17 5.1 Safety 37
2.3 Governance 18 5.2 Employee Well Being/Workforce Topics 39
2.4 Ethics & Integrity 19
2.5 Awards & Recognition 20 6.0 Our Communities 41
2.6 Market Leadership 21 6.1 In Our Community 42

3.0 Our Products 23 7.0 Performance Data 45

3.1 Fiber & Forests 24 7.1 Performance Data 46
3.2 Product Certifications 27
3.3 Packaging 28

3
1.0 Overview Kruger Products

1.0
Overview

4
1.1 About Kruger Products Kruger Products
About Us
Kruger Products L.P. (KPLP) is Canada’s leading
manufacturer and marketer of quality tissue products
for household, industrial and commercial use. Based
in Mississauga, Ontario, Canada, KPLP employs
approximately 2,500 employees with manufacturing
operations in Canada in New Westminster, British
Columbia; Scarborough (Toronto) and Trenton,
Ontario; Crabtree, Gatineau, and Lennoxville
(Sherbrooke), Québec; and in the United States in
Memphis, Tennessee.
Our major shareholder, Kruger Inc., is a Montreal,
Canada-based Company founded in 1904 and
involved in diverse industry sectors including tissue,
containerboard, packaging, publication papers,
energy, specialty papers, bio materials, recycling,
real estate and wines and spirits. Kruger Inc. has
approximately 5,000 employees and operates facilities
in Canada in British Columbia, Newfoundland and
Labrador, Ontario and Québec as well as in the
United States in Maine, New York, North Carolina,
Rhode Island, Tennessee and Virginia.
The remaining shares are held by KP Tissue Inc. which
was created to acquire, and its business is limited to
holding, a limited partnership interest in KPLP. KP
Tissue is a publically-traded entity on the Toronto
Stock Exchange (stock symbol KPT).
5
1.1 About Kruger Products Kruger Products
Canadian
Consumer
Products
Products: Branded and private
label bathroom tissue, facial tissue,
paper towels, and paper napkins for
consumer household use.
Brands: Cashmere® and Purex®
bathroom tissue, Scotties®’ facial
tissue, SpongeTowels® paper towels,
and White Swan® bathroom tissue,
facial tissue, and napkins for consumer
household use. Our EnviroCare®
portfolio is made from 100 per cent
recycled paper and is comprised
of Cashmere EnviroCare, Purex
EnviroCare, Scotties EnviroCare and
SpongeTowels EnviroCare.
Retail Customers: Grocery, drug,
mass merchandisers, club stores, drug
stores and convenience stores.
Our Vision Is To Be The Most
Trusted And Best Loved Tissue
Company In North America.
Our Mission:
Making everyday life
more comfortable.
United States
Consumer
Products
Products: Branded and private
label bathroom tissue, facial tissue
and paper towels for consumer
household use.
Brand: White Cloud® bathroom
tissue and paper towels are sold at
retailer locations across the United
States.
Retail Customers: Grocery, drug,
mass merchandisers, club stores,
drug stores and convenience stores.
Away From Home
(AFH) Products
Products: Branded and private label
bathroom tissue, facial tissue, paper
towels, paper napkins, wipers, hand
care, and dispensing systems for
commercial and industrial use across
all major market segments in Canada
and the United States.
Brands: Embassy®, White Swan®,
Chalet, Metro.
Segments: Food services,
property management, healthcare,
manufacturing, education and
lodging.
6
1.1 About Kruger Products Kruger Products

Our Operations
Manufacturing operations are strategically (Toronto) and Trenton, Ontario; Crabtree, Gatineau,
aligned to the natural resources we use to make and Lennoxville (Sherbrooke), Québec; and in
our products and to key population centres Memphis, Tennessee in the United States.
representing 90% of Canadian and 60% of American Corporate HQ: Mississauga
consumers.
In Canada our plants are located in New
Westminster, British Columbia; Scarborough

Corporate Headquarters

Manufacturing Plant

New Westminster, BC

Crabtree, QC

Gatineau, QC Lennoxville, QC

Trenton, ON
Mississauga, ON
Scarborough, ON

Memphis, TN

7
1.1 About Kruger Products Kruger Products

Annual Primary
Primary Paper Finished Total No. of Third-Party
KPLP Location
Function(s) Making Products Employees** Cirtifications
Capacity (MT) Produced

Paper Making ISO 9001:2015

Converting FSC® CoC
Crabtree, Deinking & 91,000 Bathroom Tissue 612 UL ECOLOGO
Québec Canada Pulping Paper Towels GMP
(Recycled) CT-PAT

ISO 9001:2015
Paper Making Bathroom Tissue ISO 50001:2011
Gatineau, (Laurier) Facial Tissue FSC® CoC
93,000 380
Québec Canada Converting Paper Nakins UL ECOLOGO
(Richelieu) Paper Towels GMP
CT-PAT
HACCP

ISO 9001:2015
Lennoxville
Paper Making 24,000 N/A 46 FSC® CoC
(Sherbrooke)
UL ECOLOGO
Québec Canada
CT-PAT

Mississauga, Corporate
Ontario Canada** N/A N/A 233 FSC® CoC
Head Office
UL ECOLOGO

Memphis Bathroom Tissue ISO 9001:2015

Tennessee Paper Making Facial Tissue
110,000 497 FSC® CoC
United States Converting Paper Towels
of America

New Westminster, Bathroom Tissue ISO 9001:2015

British Columbia Paper Making
61,000 Facial Tissue 402 FSC® CoC
Canada Converting
Paper Towels CT-PAT

Scarborough, FSC® CoC

Converting N/A Paper Napkins 126
Ontario Canada UL ECOLOGO

Sherbrooke, 70,000 Bathroom Tissue

Québec Canada*** Paper Making 180 Projected N/A
Projected Paper Towels
Converting

Bathroom Tissue
Trenton, Facial Tissue FSC® CoC
Converting N/A 160
Ontario Canada Paper Napkins UL ECOLOGO
Paper Towels

Totals*** 379,000 2456

*As of March 1, 2019

**Includes sales offices in Bentonville, Arkansas USA and Laval, Québec Canada as well as individual home offices across the USA and Canada.
***Total do not include new Sherbrooke, QC plant expected to be operational in 2021.
8
1.2 Our Sustainability Journey Kruger Products
Our Sustainability Journey
Sustainability at KPLP is our commitment to
conducting business in a manner that ensures
the prosperity of our company, our people, our
communities and the planet, now and into the
future.
KPLP recently developed a new vision for its
business: “to be the most trusted tissue paper
in North America.” This vision helps define the
importance of sustainability at KPLP. We believe
that integrating sustainability into our business
is critical to gaining the trust of customers,
employers and communities – in fact without doing
this, achieving our business’ vision would not be
possible.
As Canada’s leading tissue manufacturer, our
actions matter. We have a responsibility to reduce
our business’ environmental impact, and our
company can help preserve natural resources
and address global climate change. We have a
responsibility to our employees and customers to
set a good example, day-in and day-out.
We take these responsibilities seriously. The
sustainability path forward for KPLP will in part be
defined by the confidence the organization has
gained from setting bold, challenging targets in the
sustainability areas that matter most to our business
and meeting them.
KPLP’s sustainability journey began in 2008 and
over the past 10 years, the sustainability efforts,
commitments, and achievements have grown
with the business. The journey has included
setting strategic plans, investments in operations
to improve environmental performance, and
ongoing engagement with customers and external
stakeholders. Initiatives under each category have
informed each other in a constant feedback loop
of planning – doing – reflecting – seeking input –
updating.
9
1.2 Our Sustainability Journey Kruger Products

Overview of Sustainability at Kruger Products

2011
First Canadian Tissue
Company to Earn
Forest Stewardship
2010 Council® Certification
First Sustainable
Development
Program—Sustainability
2015—Launches
Gatineau, QC Heat
Recovery Project
Operational

2009 2012
Dedicated Senior Earth Day Canada Official
Sustainability Leader Hired Partnership
New Westminster, BC Initial Leaders in
Biogasification Operational Sustainable Thinking
Roundtable Launched with
Canadian Grocer

2008
Sustainability identified as Key Strategic
Imperative by Leadership Team
Launched EnviroCare Family of Consumer
Products made from 100% Recycled Paper

10
 1.2 Our Sustainability Journey Kruger Products

Vision Commitment Ac tion

2016
Sustainable 2020
Program Launched
2015 Walmart Canada
Sustainability 2015 Sustainability Award
Program Completed Winner

2014
Acquisition of Metro Paper 2017
Industries Inc. (Scarborough New Crabtree, QC
[Toronto], ON and Trenton, Paper Machine 8
ON) Operational

2013
2018
Named one of Corporate Knights’ Best
50 Corporate Citizens in Canada
Memphis, TN Through Air Dried
Tissue Plant Operational 15th Anniversary Cashmere Collection
benefiting the Breast Cancer Cause
First Global Reporting Initiative
Sustainable Report Released New Sherbrooke, QC Through Air Dried
Tissue Plant Announced (Operational
Crabtree, QC Heat Recovery Project 2021)
Operational
11
1.2 Our Sustainability Journey Kruger Products

KPLP set our first sustainability targets in 2010
with the establishment of the Sustainability 2015
program. Sustainability 2015 formalized our
sustainability path and how we considered our
impact on the natural environment. Sustainability
2015 established goals in 8 areas: fibre
procurement, energy and water resources used
in operations, greenhouse gas emissions, how
products are delivered to customers, packaging,
and product certifications. We also continued our
involvement in our communities and engagement
with our customers.
While the sustainability targets have been in
place, KPLP’s business has grown. We learned that
by establishing formal objectives, sustainability
became a standard that everyone in our company
wants to achieve. We learned to make hard
decisions and have honest conversations about
where we can improve. The process has helped us
learn more about our company, our operations,
and our ability to innovate and find value in being
sustainable.

We were proud of the success and achievements

of Sustainability 2015. The program reduced the
company’s environmental impact, and also saved
money, built community and employee pride, and
helped win over customer trust. But achieving
the objectives wasn’t easy. It required dedication,
investment, and sustained effort.

12
1.3 Sustainability 2020 Kruger Products

Sustainability 2020
From the beginning of KPLP’s sustainability journey,
we understood that a commitment to sustainability
would not be measured in one year or even five
years but rather in an ongoing commitment to
making continuous improvements. This philosophy
is consistent with the company’s values.
To that end, in 2016 KPLP launched Sustainability
2020, the next five-year strategic plan to improve
Vision Commitment Ac tion
its footprint and building on the success of our
previous program.
At its core are four major targets. We increased the
ambition of our targets for energy, GHG emissions,
and water, and set a target for employee safety, an
issue of upmost importance to KPLP.

Sustainability 2020 Objectives

Five Year Plan Launched 2016

SAFETY
FIRST

-50% -15% -27% -35%

Reduction+ in Healh Reduction* in Energy Reduction*in GHG Reduction* in Water
& Safety Consumption Emissions Consumption
(OSHA TIR) (GJ/MDMT) (CO²e/MGMT) (m³/MDMT)
+
Versus 2015 Benchmark
* Intensity Based Versus 2009 Benchmark

Sustainability 2020 emphasises the phrase ‘Vision
- Commitment – Action’ which serve as our
sustainability mantra. These words tell how our
targets get accomplished. At KPLP, we first set
out to affirm our vision to continue to reduce our
environmental impacts and improve our safety
performance. We then set out clear and ambitious
goals to work towards. These commitments are
pursued by our whole company. Action emphasises
the importance of focussing on getting down to
business on achieving the targets once they are
established. KPLP has proven its ability to do just
that with the 2015 framework, and we are working
hard to achieve our 2020 targets.

2020 Targets - Results to Date

2020 Target 2018 Results
Employee Safety(1) 50% Improvement from 2015 48% Improvement from 2015

Energy Consumption(2) 15% Improvement from 2009 10% Reduction from 2009

Greenhouse Gas Emissions(2) 27% Improvement from 2009 22% Reduction from 2009

Water Consumption(2) 35% Improvement from 2009 28% Reduction from 2009

(1)
OSHA Totoal Incidence Rate
(2)
Intensity-Based On Track Behind Schedule

13
1.3 Sustainability 2020 Kruger Products

Our Footprint
WATER
CONSUMPTION
(M³/MDMT)
80
2009 Baseline
76 75
2018 Result
70
2020 Objective
65

60

55 55

49 50

0
55 572
18
.0

0
60
18.46
18

609
.5
19
.0

0
65
19
.5

19.69

0
20

70
.0
20
.5

0
75
21

ENERGY SCOPE 1GHG

.0

783
CONSUMPTION 21.72 EMISSIONS
21

0
.5

80
(GJ/MDMT) (KG CO²E/MDMT)
22
.0

Beyond our formal 2020 targets, we have also made
the following notable achievements since launching
Sustainability 2020:
• Certified Sustainable Fibre: While 55% of our
fibre is FSC® certified, growing customer demand
requires more certified fibre. We recently received
SFI/PEFC certification, growing our certified fibre
to over 98%.
• Packaging Innovation – We are exploring a
range of innovative alternatives for our plastic
packaging, including bio-based/plant-based
plastics, biodegradable options, hybrid paper/
film, paper, and other new substances. All of
KPLP’s current fibre-based packaging, including
facial tissue cartons, bath tissue and paper towel
cores, paper wraps and shipping cases are made
from 100% recycled materials.
• Diversity: KPLP has achieved 25% female
representation on the Board and 18% in executive
positions and is in the midst of launching a
company-wide diversity and inclusive initiative.
• Community involvement: KPLP has been
making a difference in the lives of Canadian
women and their families affected by breast
cancer since 2005. KPLP is one of the Canadian
Cancer Society’s top five national brand partners
supporting the breast cancer cause, based
on annual contribution and awareness raising
initiatives. Over the years, our support has helped
fund innovative research that aims to reduce the
incidence of breast cancer, lower mortality rates
and support women and their families affected
by breast cancer. Kruger Products has also been
dedicated to supporting breast cancer efforts at
the Quebec Breast Cancer Foundation.

14
2.0 Our Business Kruger Products

2.0
Our Business

15
2.1 Mission, Vision & Values Kruger Products
Mission, Vision & Values
Our Vision
To be the most trusted, best loved tissue com-
pany in North America.
Our Mission
Making everyday life more comfortable.
Our Values
Entrepreneurship: We value and nurture an
entrepreneurial spirit within our organization. As
we continue to grow our company and diversify our
operations, we maintain a long-term outlook and
keep our minds open to new ideas and innovation.
Our employees exemplify this philosophy through
their commitment to excellence.
Family Spirit: Our organization is like a family.
And our family means the world to us. We foster a
sense of belonging by encouraging teamwork and
supporting employee initiatives that contribute
to our collective success. We also recognize the
value and contribution of each individual within our
organization.
Commitment: Commitment is at the heart of
everything we do. Our concern for others is also
reflected in our commitment to offer our employees
a stimulating, healthy and safe workplace. We
are deeply committed to the environment and
to maintaining meaningful relationships with the
people and communities we engage with.
Integrity: We keep our word and value trust
above all else. Our integrity has allowed us to stand
the test of time and to build mutually beneficial
relationships with our employees, our customers,
our business partners and the community.
Customer Focus: Trust is the cornerstone of
every business relationship, which is why we focus
on earning our customers’ trust by providing
exceptional service, ensuring consistent product
quality and making it easy to do business with us.
Our goal is to generate value for each customer by
creating solutions that improve their business for
the long term.
16
2.2 Financial Highlights Kruger Products

Financial Highlights
Overall Revenue (in millions of Canadian Dollars)
1500

1400
1370.4

1300 1280.0
1227.9

1200
2016 2017 2018

2018 Revenue by 2018 Revenue by

Segment Country (in
(in millions of millions of
Canadian Dollars) Canadian Dollars)

Consumer AFH Other Canada United States Mexico

1,124.5 (82%) 231.1 (17%) 14.8 (1%) 803.6 (61%) 479.4 (35%) 87.5 (4%)

Operating Income (in millions of Net Income (in millions of

Canadian Dollars) Canadian Dollars)
1200 60
1059
1000 50
45.4

800 40 35.5

600 30

400 20

200 10 15.3
92.1
49.5
0 0
2016 2017 2018 2016 2017 2018

17
2.3 Governance Kruger Products

Governance
Our governance and management structure is
designed to ensure that all aspects of our business
are conducted with integrity, transparency and in
full compliance with the laws and regulations of
the jurisdictions in which we operate. We challenge
ourselves to continually act in accordance with the
highest standards of governance and ethics.
Board of Directors
KPGP has a nine-member Board of Directors
comprised of four external directors including three
independent members representing KP Tissue Inc.
and five members from Kruger Inc. management
including KPLP’s Chief Executive Officer. Kruger
Inc.’s Chairman and Chief Executive Officer is the
Chairman of the Board.
The Board’s mandate includes specific duties and
key responsibilities, such as Board organization,
selection, retention and succession, strategic
oversight, risk evaluation, financial matters and
internal controls, disclosure to shareholders and
others, policies and procedures, and monitoring
and oversight. In performing many of these duties
and responsibilities, it relies on services provided
by Kruger Inc. pursuant to an Administration
Agreement between parties.
The management team is responsible for
operational management of the Company including
development and execution of the organization’s
mission, values and strategy. From a sustainability
perspective, the management team reviews key
environmental and social performance progress
monthly and engages in the development,
execution and support of various sustainable
development activities.
Sustainability Executive Steering Committee
An executive steering committee led by the Chief
Executive Officer guides the development and
activities of the sustainable development initiatives.
The committee:
• Identifies projects that will help us reach
our targets;
• Reviews progress on reaching our
targets;
• Works through roadblocks;
• Provides general guidance on the
initiatives and activities and;
• Ensures activities are consistent with the
overall business operation and strategy.

KPLP Management Team

The management team is led by KPLP’s Chief
Executive Officer. Other members include: Chief
Financial Officer, Chief Marketing Officer, SVP & GM
Consumer Business Canada, SVP & GM Consumer
Business USA, SVP & GM AFH Business, SVP
General Counsel & Corporate Affairs, SVP Human
Resources, SVP Operations, and Corporate VP
Technology & Product Development.

Dino Bianco
Chief Executive Officer

18
2.4 Ethics & Integrity Kruger Products
Ethics & Integrity
KPLP operates under a number of policies
developed either by Kruger Inc. and/or KPLP, but
enforced by KPLP’s leadership team. These policies
are regularly reviewed and updated as necessary.
We actively adhere to these policies to ensure we
are in compliance with laws and regulations. For
the reporting period, there have been no incidents
of corruption or anti-competitive behavior.
Code of Business Conduct and Ethics
Kruger Inc. developed and released its initial Code
of Business Conduct and Ethics policy in 2011.
The policy was updated for Kruger Products and
approved by its Board in November 2013. A :45
minute online training module was provided at
the time of the release to all salaried employees
who were required to read and sign the policy. An
annual :15 minute online refresher training course
is required to be read and signed by all salaried
employees. All new salaried employees are
required to view the :45 minute online training and
sign the policy as well.
This policy outlines how we conduct our business
ethically, including human rights and anti-corruption
policies, and in conformance with applicable laws,
rules and regulations of all countries in which we
conduct business. It applies to all employees,
officers and directors of KPLP and provides various
rules and guidelines for ethical business practices
and procedures, such as:
• The employees’, Board’s and
management’s responsibilities;
• The importance of values such as
honesty, integrity and fairness;
• Our willingness to provide a work
environment that is fair, challenging and
rewarding;
• Our practices regarding Health and
Safety, Environment and Competition;
• The protection of information;
• The management of conflicts of interest;
and
• The protection of whistleblowers.
The Corporate VP of Human Resources holds
ongoing responsibility for maintaining and
enforcing the policy. The policy is available in both
English and French in compliance with Canada’s
official languages and is available to employees on
KPLP’s intranet as well as publicly on the corporate
website:
http://www.krugerproducts.ca/pdfs/Kruger_
Code_%C3%A9tiques_EN_v6_FINAL.pdf
19
2.5 2018 Awards Kruger Products

2018 Awards
At KPLP we strive to be the best at what we do everyday. We are honoured to be recognized with a
variety of awards that validate our ongoing efforts.

Canada’s Best Forbes Greater Corporate

Managed Canada’s Best Toronto Area Knights’ Best 50
Companies Employers, Top Employer Corporate Citizens
Ranked #2 for 7th consecutive in Canada ,
year Ranked #40

Rated #1 Canadian Packaged Goods Supplier, Adapt Marketing Group Supplier of the Year,
Industry Survey for sixth consecutive year Away From Home Division

International Business Awards’ Gold Stevie— International Association of Business

Manufacturing, Kruger Products Corporate Communicators/Toronto, OVATION Award of
Website Excellence, Media Relations, Cashmere

Commission des normes, de l’équité, de la santé Strategy Atomic Award -- Bronze, Audio
et de la sécurité du travail (CNESST), Grand Prix Branding, Cashmere
Occupational health and safety-large companies
in the Innovation category, Gatineau, QC Plant Strategy—Marketers of the Year, Nancy Marcus,
Chief Marketing Officer
Walmart Mexico & Central America Supplier of
the Year for Private Brands, Grupo Tissue de Pulp & Paper Safety Association—Executive
Mexico Eagle Award, Fred Ceruti, General Manager
Memphis Plant
International Association of Business
Communicators, International Gold Quill Award
of Excellence, Media Relations, Cashmere

20
2.6 Market Leadership Kruger Products
Market Leadership
As market leaders, at KPLP we believe its our
responsibility to demonstrate leadership on
sustainability. Through collaboration, partnership,
and leading by example, we strive to advance
sustainability across our industry and beyond.
Leaders in Sustainable Thinking
To advance industry collaboration and further the
sustainability agenda, in 2012 we partnered with
Canadian Grocer magazine to launch Leaders In
Sustainable Thinking, an annual industry thought
leadership series. It was created to provide a
platform for manufacturers and retailers to find
new ways to work together to advance progress
on sustainability issues in common. Many issues
require collaboration to find real solutions, and
these round tables are one way that we’re helping
to bring leading companies together for a common
goal.
We have explored topics including Who is the
Green Consumer? Responsible Sourcing and
Procurement; and Sustainable Logistics and
Transportation. In 2017, we ran a ‘hackathon’ with
emerging leaders to explore bold, new ideas from
younger generations on how decarbonize the retail
value chain. The top ideas from the hackathon were
explored by industry leaders in our 2018 session.
After many sessions, we have commissioned a
white paper, with the aim of sharing the knowledge
gained during these sessions. These white papers
are available for download at www.krugerproducts.
ca/ sustainability and the outcomes are shared
widely through Canadian Grocer magazine.
Participants in these discussions have included
senior representatives from leading organizations,
such as Unilever, Walmart, Loblaw, Forest
Stewardship Council, Marine Stewardship Council,
Rainforest Alliance, Sobeys, Metro, Longos,
Overwaitea, Nestle, Federated Co-Op, Coca-Cola
and others.
EXCEL
PARTNERSHIP
The EXCEL Partnership: Canada’s Business
& Sustainability Partnership
KPLP is a proud member of the EXCEL Partnership,
a learning partnership that empowers Canadian
companies to improve corporate performance
through sustainability leadership. EXCEL facilitates
cross-sector innovation and dialog and provides
industry leaders with access to cutting-edge
research, analysis, and insights. The Partnership
contains some of Canada’s most prominent
companies from across the economy including:
RBC, Air Canada, Enbridge, CN, Bell, Capital
Power, Cenovus, and others. KPLP brings its
unique perspective on sustainability to the group,
while also gaining many insights from the other
members. Founded in 1996, the EXCEL Partnership
has become Canada’s most trusted and influential
business group focused on sustainability. EXCEL
is an initiative of GLOBE Series and is a member
of the World Business Council for Sustainable
Development’s (WBCSD’s) Regional Network.
21
2.6 Market Leadership Kruger Products

KPLP’s Contribution to United Nation’s SDGs

Supporting the UN Sustainable Development Goals
KPLP supports the UN Sustainable Development Goals. Developed as part of the 2030 Agenda for
Sustainable Development and adopted by all United Nations Member States in 2015, the UN SDG’s
provide a blueprint for peace and prosperity for people and the planet, now and into the future.
At KPLP, our business practices and sustainability efforts contribute to achieving several of the targets and
indictors within the SDG framework.

In Our Business...
KPLP’s economic contribution, job
creation, and sustainability efforts
contributes to the UN goals of enhanced
economic productivity, full and productive
employment, and improved global
resource efficiency, including decoupling
economic growth from environmental
degradation.

In Our Products...
Our Forest Our Forest Our Green Our Forest
Certifications Certifications support Products waste Certifications
support the UN ensure that forests are management efforts, supports the UN
goal to protect and managed to sequester and sustainability goal of sustainable
restore water-related carbon and play a reporting all management for all
ecosystems, including positive role in climate contribute to the types of forests and
within forests mitigation UN Responsible supports goals to
Consumption goals protect biodiversity

In Our Operations...
Our Energy Target Our GHG target Our investments Our water target
and renewable and mitigation in new facilities and water treatment
energy used in our efforts directly innovative, resource practices support the
operations (27%), support global efficient technologies goals of increased
supports the UN climate action contribute to the water efficiency,
goals to increase UN goal to upgrade sustainable water
renewable energy infrastructure and withdrawal and
and improve energy industries with enhanced water
efficiency. sustainable and quality
increased resource-use
efficiency technologies.

In Our People & Communities...

Our Energy Target Our Diversity & Our Strong Safety
and renewable energy Inclusion efforts record and actions
used in our operations support the UN Goals support the UN Goal to
(27%), supports the for full and effective promote safe and secure
UN goals to increase participation and working environments
renewable energy equal opportunities in and respect of workers
and improve energy the workplace rights
efficiency.

22
3.0 Ethics and Integrity Kruger Products

3.0
Our Products

23
3.1 Fibre & Forests Kruger Products
Fibre & Forest
As a leading manufacturer of tissue products, we
know that responsibly managed forests are vital
to long-term global sustainability and achieving
the UN Sustainable Development Goals.
Sustainable forests are also critical to preserving
the natural resources and ecosystems that our
products and supply chain depend upon. That
is why at KPLP, we have been industry leaders
in responsible forest management since the
beginning of our sustainability program. KPLP
was the first Canadian tissue manufacturer
to earn Forest Stewardship Council® (FSC®)
Chain of Custody certification in 2011 from the
Rainforest Alliance and we were recently re-
certified through 2021by NEPCON.
Our Progress in 2018
✔ 100% of fibre is sourced from third-party
certified or non-controversial sources
✔ 55% of fibre is FSC-certified
✔ 24% of fibre is from reclaimed sources
Beyond our direct sourcing, we actively work with
customers, distributors and suppliers to increase
awareness of the importance of stringent fibre
certification systems, such as FSC®, because they
help keep our forests healthy for the future. In
addition, we actively encouraged and supported
our sister division, Kruger Packaging to earn FSC®
certification for their packaging materials.
24
3.1 Ethics and Integrity Kruger Products

Sustainably Managed Forests Can Provide the

Following Benefits:
Enhanced carbon
Protection against sequestration to mitigate Protection of aquatic and
deforestation climate change riparian areas

Preservation of sensitive
and high conservation Protection of threatened
Improved soil health
value areas and endangered species

Socio-economic benefits
to local communities,
including First Nations

Sustainable forestry certifications also provide transparency and ensure greater accountability and
compliance with all laws and regulations.

25
3.1 Ethics and Integrity Kruger Products

CANADA

U.S.A.

Fibre Origin
Our wood fibre is sourced from Canada, the U.S.,
and Brazil. Most of our fibre is sourced from Canada
(76%), who is a global leader in sustainable forestry
and has among the world’s most stringent forest
management practices and laws. 100% of our fibre
sourced from Brazil is FSC-certified. BRAZIL

Total KPLP % FSC Recycled Non-controversial

Economy
Fibre (%) Certified Fibre Sources

Canada 76% 10% 32% 58%

U.S.A. <1% 0% 3% 97%

Brazil 24% 100% 0% 0%

Fibre Procurement Policy Looking Ahead

KPLP operates under Kruger Inc.’s Fibre Procurement We will continue to source our fibre from
Policy, which key personnel utilize in the purchase responsible sources and support certification
of our virgin fibre. Through this policy, we make a programs. In 2019, we achieved SFI chain of
strong effort to ensure that wood fibre is sourced from custody certification for our fibre that is not FSC®-
forests where management practices comply with certified. Nearly 100% of our fibre is third-party
the requirements of recognized forest certification certified.
standards, such as Forest Stewardship Council®
(FSC®)--our preference, Sustainable Forestry Initiative Fibre 2009
Unit 2018
(SFI) and Programme for the Endorsement of Forest Consumed Benchmark
Certification (PEFC), and that wood fibre is not sourced FSC® Mix
from controversial sources, as outlined in the policy. % Total 31 0
Certified

FSC® Recycled
% Total 24 0
Certified
The policy is available to the public via our corporate
Uncontroversial
website: http://www.krugerproducts.ca/pdfs/Sustainability- Sources
% Total 45 0
Our_Policies/Kruger_Pol_mat_lign_EN.pdf

26
3.2 Product Certifications Kruger Products
Product Certifications
As the Canadian market leader, we believe it is our
responsibility to lead by example. We have chosen
to have our products certified by the most respected
and most credible third-party certification systems
available to our industry.
Green Product Offerings
Launched in 2008, KPLP’s EnviroCare portfolio of
products is Canada’s first line that offers consumers
premium, 100% recycled, environmentally friendly
tissue and paper products so consumers don’t have
to compromise on quality while doing something
good for the environment.
This portfolio consists of Cashmere EnviroCare
and Purex EnviroCare bathroom tissue, Scotties
EnviroCare facial tissue and SpongeTowels
EnviroCare paper towel. EnviroCare is committed to
sustainable forestry and bear the Forest Stewardship
Council® (FSC®) logo on pack so consumers can
trust that they are making responsible choices when
they purchase EnviroCare products. Similarly, many
of our away-from-home products are UL EcoLogo
certified and/or FSC® certified providing assurance
to customers that they are choosing responsible
products for their facilities.
UL Ecologo
In 2018, KPLP offered 58 UL
EcoLogo-certified products
across our bathroom tissue, facial
tissue, paper towel and napkin
product lines. UL EcoLogo is
recognized world-wide as North America’s largest,
most respected environmental standard and multi
attribute certification mark. UL EcoLogo provides
consumers and customers with confidence in
knowing that the products and services bearing the
logo meet stringent standards of environmental
leadership. UL EcoLogo assures that our products
demonstrate a significantly reduced environmental
impact as measured by five key life-cycle criteria:
resource consumption, energy consumption,
wastewater quality, aquatic toxicity, and solid waste
generation
Forest Stewardship
Council (FSC)
KPLP became the
first Canadian tissue
manufacture to become FSC® Chain of Custody
Certified by Rainforest Alliance in 2011. Ever since,
we have continued to expand our commitment to
certification, even as our business has grown. In
2018, KPLP offered 110 FSC-certified products.
Today, NEPCon is KPLP’s selected certifier, auditing
a sample of its facilities on an annual basis. KPLP
operates under a multi-site, credit system.
FSC is one of the most highly respected international
certifications ensuring that FSC-certified products
come from a responsible forest and/or that
recycled fibre comes from certified suppliers with
confirmation of post-consumer content. FSC is the
only certification supported by major international,
national and local Aboriginal, Environmental and
Social groups including: Greenpeace, the World
Wildlife Foundation, the Sierra Club of Canada,
ForestEthics, The Nature Conservancy and the David
Suzuki Foundation.
Sustainable Forestry
Initiative (SFI)
KPLP became SFI Chain
of Custody Certified in
July 2019 by BM Trada. The SFI Chain of Custody
Standard is an accounting system that tracks forest
fibre content (certified forest content, certified
sourcing and recycled content through production
and manufacturing to the end product). KPLP
operates under a multi-site, credit system.
27
3.3 Packaging Kruger Products
Packaging
Since launching our initial Sustainability program, we
have actively worked to reduce the use of packaging
across our operations and in our consumer products.
Our efforts have resulted in a 13.5% decrease in
packaging from our 2009 baseline.
Recent examples of our efforts to reduce packaging
include:
• Invested in retail ready pallet displays
of our consumer products, thereby
eliminating corrugate shipping cases.
• Eliminated corrugate inserts for away-from-
home Ultimate Washroom roll towels SKUs
through redesigning the shipping case.
This resulted in a 2.5% reduction in overall
packaging materials.
• Reduced the gauge of the poly film used
for individually wrapped away-from-home
bathroom tissue products, resulting in a
42% reduction in packaging material.
• Reduced the gauge of the biodegradable
poly film for facial tissue, resulting in an
18% reduction in materials.
At KPLP, 93% of our product packaging by weight
is fibre-based. Our fiber-based packaging includes
all facial tissue cartons, bath tissue and paper towel
cores, paper wraps and shipping cases. Beyond our
efforts to reduce packaging, we also ensure that our
fibre-based packaging is environmentally responsible.
All of KPLP’s current fibre-based packaging are made
from 100% recycled materials and are 100% recyclable.
93%
of packaging
100%of fibre-base
packaging is made
by weight is from recycled
fibre-based materials
Addressing Plastic Packaging
Through Innovation
Plastic packaging is ubiquitous in our society and in the
consumer goods industry. As important as plastics have
been, at KPLP, we recognize the growing impact plastic
packaging has on the environment and we are committed
to reducing our use of petroleum-based plastics.
Plastic packaging is a two-pronged challenge. First, the
production of most plastics is derived from fossil fuels,
which directly contributes to climate change through the
extraction and production of the materials. Today, KPLP
uses approximately 7 million pounds of plastic, which
requires an estimated 2.8 million gallons of oil to produce.
The second challenge is disposal. While some plastic
packaging materials can be effectively recycled, others
cannot. Even where plastic packaging can be recycled,
we know effective recycling infrastructure is not always
available. Plastic waste when not properly disposed
can end up in natural ecosystems, particularly in the
world’s oceans. According to the Ocean Conservancy, an
estimated 8 million metric tonnes of plastic ends up in the
oceans every year. By reducing our own plastic use, we
can contribute to addressing both challenges.
Developing alternatives to plastic packaging extends
beyond any single company and requires collaboration,
diligence, and innovation. We are up to this challenge,
and by bringing together partners across our value chain,
we are confident that we can reduce our plastic packaging
and play a leading role in bringing innovative solutions to
our industry in the coming years.
We are currently working with our procurement teams and
suppliers to explore potential new packaging solutions that
are suitable for our operations. We are exploring a range
of innovative alternatives, including bio-based/plant-based
plastics, biodegradable options, hybrid paper/film, paper,
and other new substances.
28
4.0 Governance Kruger Products

4.0
Our Operations

29
4.1 Investing in Our Future Kruger Products
Investing in Our Future
At KPLP, we are committed to investing in our future -
for our company, our people, our communities and the
planet.
We have made continuous investments in our
manufacturing facilities to grow our business, improve
our efficiency and reduce our environmental impact.
Capital Investments in Sherbrook
and Crabtree
In August 2018 KPLP announced its plan for a capital
investment of $575 million in Sherbrooke, Québec, to
build a new, state-of-the-art tissue plant featuring Canada’s
largest and most modern through-air-dry (TAD) paper
machine.
The new plant will produce at maturity approximately
70,000 metric tonnes per annum of bathroom tissue and
paper towels which will enable KPLP to increase its offering
of ultra premium and innovative tissue products under the
Cashmere®, SpongeTowels® and Purex® brands.
The project will create more than 180 new jobs in the
region and produce major benefits for the community,
including over $250 million in direct expenses in Québec
and one million person-hours for the construction of the
new plant.
Significant construction of the project began in early
2019, and the plant is slated to commence production in
early 2021.
This investment is the latest major capital investment
KPLP has made over the last two years. In August 2017,
a new $55-million paper machine started up at the KPLP
plant in Crabtree, Quebec, increasing the plant’s overall
production by 29%.
Investing in State-of-the-art
Technology
At KPLP we are committed to investing in state-of-the-
art technologies. TAD technology is the world’s most
advanced ultra premium tissue products manufacturing
technology. It uses less fibre and less water to obtain a
plusher, stronger, exceptionally soft and more absorbent
product.
KPLP operates a TAD machine at its Memphis, Tennessee
plant, which has been in operation since 2013. The new
facility in Sherbrooke, QC will be KPLP’s second TAD
machine and will be the first of its kind in Québec.
New Sherbrooke, QC
TAD Facility
Begins Production in 2021
30
4.2 Climate & Energy Kruger Products

Climate & Energy

Energy Consumption
GJ/MDMT
22 21.7
At KPLP, we believe addressing climate change is
a global necessity and a strategic imperative for 21 20.7 -10%
our business. Reducing our energy consumption 19.8
20
19.5 19.6
and GHG emissions are key pillars of Sustainability
2020 and our efforts help minimize the impacts of 19
18.3
climate change on our business. 18

As a paper products manufacturer, KPLP’s ability 17

2009 2015 2016 2017 2018 2020 Target
to operate and generate profit is dependent upon
continued access to resources such as wood pulp, GHG Emissions Performance
kg CO²e/MDMT
energy, and water. Each of these natural resources 800 763
are key ingredients in the manufacture of our
paper products – and are wholly exposed to the 700
-22%
644
unavoidable consequences of climate change. 609
599 605
KPLP embraces a culture that identifies and 600 572
manages the risks and opportunities associated
with climate change across our value chain in 500

order to ensure our ability to continue to operate

and profit. Our climate strategy includes energy 400
2009 2015 2016 2017 2018 2020 Target
management, greenhouse gas reduction, resource
productivity and sustainable forest management. Investing in energy efficiency
Within our operations, our efforts focus on & GHG reduction projects
improving energy efficiency, deploying GHG We make regular investments in energy management,
mitigation technologies, and using renewable efficiency, and GHG reduction technologies through
energy. a portfolio of capital projects and continuous
improvement in our operations.

Our Target KPLP has invested over $6M in energy efficiency and
GHG reduction projects over the past two years.
Collectively, these projects are expected to reduce
energy consumption by an additional 2.7% on an

-15%
Reduction in
-27%
Reduction in
annualized basis. Two examples include:
• A new heat recovery system at Crabtree – Hot
humid air from the paper machines is captured
Evergy Consumption GHG Emissions and reused to heat process water and the
Intensity basis (CO2e/MDMT)
Intensity basis (GJ/MDMT)
from 2009 baseline
facilities themselves. Capturing this waste heat
from 2009 baseline
reduces the amount of steam needed at the
facility, yielding GHG reductions.
• An energy management system at Gatineau –
Our Performance A new, state of the art energy technology and
control system will provide the Gatineau plant
Through 2018, we have reduced our energy intensity
with real time demand-response capabilities
by 10% and our Scope 1 GHG emissions intensity by
and energy analytics that will save an
22% from our 2009 baseline.
estimated 61,000 GJ of energy per year.

31
4.2 Climate & Energy Kruger Products

Circularity in our supply chain

At KPLP, we strive to work with suppliers and partners
who share our commitment to sustainability. One of
these partners is CHEP, our supplier of wood pallets.
Wood pallets are used throughout our operations to
house finished products and transport products to our
customers. And we use a lot – nearly 2,000,000 pallets
in 2018. CHEP are pioneers in the circular economy, and
their system of reused, pooled, and responsibly sourced
pallets, helps us keep waste out of landfill and reduce
GHG emissions in our supply chain.

Benefits of circular, reusable pallets

Continuous reuse of pallets minimizes resources
Reutilization 1.06M lbs solid waste
Pooling drastically reduces waste in the supply chain

Transport Density of our network allows shorter transportation

.8M lbs CO²e
Efficiencies Results in a reduction of CO²in your supply chain

Resource Certified renewable resource from sustainable sources 99% of all timber is certified to
a third-party sustainable forest
Efficiencies 100% recyclable back into new pallets & other uses management certification

Investing in Renewable Energy • Reduces GHG emissions by an average of

14,500 tonnes CO2e per year, reducing the
As our industry is dependant on high amounts plant’s annual emissions by 40%.
of energy, replacing fossil fuel-based energy
• Displaces on average 445,000 GJ of natural gas
with renewable sources is necessary to achieve
per year with renewable energy, equivalent to
deep reductions in our GHG emissions. Our New
the amount of natural gas used to heat roughly
Westminster facility uses cutting edge technology
3,500 homes in Canada for a year.
to replace natural gas with biomass, significantly
reducing emissions at the facility. • In 2018, the system produced 37% of the plant’s
total energy, representing 5% of KPLP’s total
energy consumption.
Overall, 27% of the total energy used at our • Lowers fuel costs
facilities is derived from renewable sources, and • Generates additional revenue through the
we continue to explore further opportunities to sale of registered carbon credits with the BC
expand our use of renewable energy throughout government
our operations.
Energy 2009
Unit 2018¹
New Westminster biomass gasification Consumed Benchmark
As our industry is dependant on high amounts Total Energy Gigajoules 7,050,322 6,567,528
Consumption 19.65 21.72
of energy, replacing fossil fuel-based energy GJ/MDMT² Produced

with renewable sources is necessary to achieve Energy from

% of Total 27 24
Renewables
deep reductions in our GHG emissions. Our New
Westminster facility uses cutting edge technology ¹ Includes Trenton and Scarborough, ON Converting Plants Data
² MDMT=Machine Dried Metric Tonnes
to replace natural gas with biomass, significantly
reducing emissions at the facility. GHG 2009
Unit 2018
Emissions Benchmark
CO²e Scope 1 Metric Tonnes CO²e 218,365 236,712
Overall, 27% of the total energy used at our
(Direct) kg CO²e/MDMT Produced 609 783
facilities is derived from renewable sources, and
CO²e Scope 2 Metric Tonnes CO²e 119,240 63,843
we continue to explore further opportunities to (Indirect location based)
kg CO²e/MDMT Produced 332 211
expand our use of renewable energy throughout
CO²e Scope 2 Metric Tonnes CO²e 78,102 N/A
our operations. (Indirect market based)

The project has achieved significant sustainability Metric Tonnes CO²e 337,239 300,545
Total Emissions
benefits: kg CO²e/MDMT Produced 940 994

32
4.3 Water Kruger Products

Water Our Performance

Sustainable water resources are vital to our business.
Water Consumption
Tissue paper manufacturing requires significant Through to the end of 2018, we have reduced our
amounts of water, which is why the responsible use water intensity by 28% from our 2009 baseline.
of water is one of KPLP’s top sustainability priorities.
Water Consumption Target -35% Reduction¹ vs. 2009
As an industry leader, we have a responsibility to
m³/MDMT
consume water resources in a manner that minimizes
76
our impact on local watersheds. While none of 80
-28%
KPLP’s manufacturing facilities are located in regions 64
60
that are at risk from water scarcity, we nonetheless 60 55 54
49
are committed to ensuring the watersheds near our
40
operations are healthy and sustainable for years to
come.
20

KPLP sources water primarily from rivers (surface

water) located adjacent to the plants as well as
municipal city water. Our Memphis, TN facility
withdraws from ground water. We employ water
efficiency technologies to reduce our water
consumption and almost all of the water withdrawn
for our manufacturing process is returned to the
environment after it is treated. During water
treatment, we strive to ensure that water discharged
back into the environment meets high water quality
standards.
0
2009 2015 2016 2017 2018 YTD* 2020 Target
Our water reduction progress has been achieved
through investments in more water efficient
equipment at our Memphis facility and our
investments in through-air-drying (TAD) paper making
technology. Our TAD machinery uses 75% less water
than traditional papermaking equipment.
We are on pace to achieving our goal of 35%
water reduction by 2020 and will continue to make
investments in water efficiency to achieve our target.

Our Target Water Quality

Our environmental management system at each
facility regularly monitors water effluent discharges
back to the environment. Water effluent is tested
daily and reported to regulatory bodies. At minimum,

35%
we comply with all regulatory requirements and
seek ‘beyond compliance’ performance where ever
possible.

We have made significant progress in reducing the

Reduction in water effluents discharged from our facilities over the
past three years, including reducing our Biochemical
Water Consumption Oxygen Demand (BOD) by 48% since 2016.

intensity basis (m³/MDMT) Effluent % Decrease

Unit
from 2009 baseline Discharge Since 2016
BOD % Total -48%

Suspended Solids % Total -27%

COD % Total -34%

33
4.4 Environmental Protection Kruger Products

Environmental Protection
KPLP is committed to protecting the environment, Supplier Sustainability Policy
preventing pollution, and managing environmental
Our Supplier Sustainability Policy aligns the visions
risks that may arise from our operations. We
for sustainability at KPLP with the products and
recognize environmental protection within our
services we procure and the manner in which we
corporate values and as a key component of
conduct business with our suppliers. The policy
sound business performance. Underlying KPLP’s
provides suppliers with guidelines and principles
environmental commitments is our foundational
around our sustainability goals to help promote
environmental policies and management systems.
the incorporation of environmental and social
These systems ensure that KPLP provides a quality
criteria into our procurement process. Procurement
product in a manner that minimizes our impact on
personnel have been trained on this policy, and
the environment.
through their implementation, help us enhance our
environmental, social and economic performance
Environmental Management System
throughout our supply chain.
KPLP has a proprietary Environmental Management System
(EMS) which we deploy at each of our plant locations. The policy is available to the public via our
The General Manager at each plant is responsible for its corporate website:
implementation, ongoing operation and review. Each http://www.krugerproducts.ca/pdfs/Sustainability-
plant has an Environmental Committee charged with Our_Policies/sustainability_policies_supplier_en.pdf
ongoing execution of the EMS as well as internal and
external reporting as required by local, provincial and/or Waste Management
state and national governmental bodies.
We view waste as a valuable resource and take
Environmental Policy efforts across our manufacturing facilities to reduce
waste at source and enhance our recovery of waste
KPLP operates under Kruger Inc.’s Environmental Policy. materials, primarily through converting broke¹
All facilities and employees are required to comply into finished products. We have achieved a waste
with this policy, which is widely distributed within the diversion rate of 80% or greater each year since
organization. KPLP has always made it a priority to
2015.
protect the environment and the quality of life of our
employees, as well as the communities in which we
operate. We believe in a shared responsibility to protect
the environment, so to that end, we support responsible
stewardship of resources, including forests, fish and
aquatic habitats, wildlife, air and land, thereby making
sustained economic development possible. In this spirit,
we adhere to a set of governing principles pertaining to
our attitude and actions in environmental matters, which
have become part of our business approach.

The policy is available to the public:

http://www.krugerproducts.ca/pdfs/Sustainability-
Our_Policies/Kruger_Pol_env_EN_13_v2.pdf

¹ Broke is fully or partially manufactured paper that is re-pulped and made

into paper again, enhancing the productivity of our paper making process and
reducing overall waste fiber material.

34
4.4 Investing in Our Future Kruger Products

88%
2018 Waste
Diversion Rate

Solid Waste Unit 2018 2017 2016 2015

Generated Metric Tonnes 48,658 50,349 47,671 45,390

Metric Tonnes 42,915 41,514 41,216 40,711

Recovered
% of Total 88 82 86 90

Metric Tonnes 5,743 8,835 6,455 4,679

Landfill
% of Total 12 18 14 10

Air Pollution
We monitor the criteria air contaminants (CACs) from our manufacturing facilities, operate within all
regulatory requirements, and take steps to reduce our CAC emissions wherever possible. In 2018, all of
our CAC emissions decreased on an intensity basis from the prior year, despite a 5% growth in production
from 2017.

Solid Waste Unit 2018 2017 2016

NOx Metric Tonnes 302.3 292.5 285.1

SOx Metric Tonnes 109.3 108.1 104.8

TPM² Metric Tonnes 93.2 91.3 87.5

VOCs³ Metric Tonnes 16.1 15.5 15.2

CO Metric Tonnes 296.4 286.4 276

² For certain emission sources, an emission factor for TPM (total particulate matter) was not available. In these instances, PM10 or Filterable PM is used to represent TPM.
³ For certain emission sources, an emission factor for VOC (Volatile organic compound) was not available. In these instances, TOC (total organic carbon) or NMTOC
(non-methane organic compound) is used to represent VOC

35
5.0 Organizational Structure Kruger Products

5.0
Our People

36
5.1 Safety Kruger Products

The importance of employee health and safety

cannot be overstated at KPLP. Providing the safest
possible work environment to all our employees
and striving to be our industry’s leader are part of
our core values and key to our long-term success.
We formally included safety in our Sustainability
2020 program and have set an ambitious reduction
goal across the company.
Our Target
Safety is Everyone’s
Responsibility
We are proud of our accomplishments, but we know
that a safe workplace requires constant vigilance by
everyone in the Company. We do this by making
health & safety everyone’s responsibility and involve
management and employees.
Each facility and department conduct daily, bi-
weekly, and/or monthly meetings with their
respective team members to discuss safety issues
and on the ground conditions. Our manufacturing
sites have daily shift meetings focused on safety as

-50%
well as regular meetings with their mill managers to
keep up-to-date with safety procedures, machine

SAFETY
performance, and other important factors that
Reduction in Health influence safety performance.
FIRST & Safety Incidents
All of our facilities also comply with corporate
from 2015
(OSHA TIR) safety guidelines under our corporate-wide
Environment, Health & Safety (EH&S) standards,
which are in place to ensure that we lead the
Our Performance industry in EH&S performance. The Accident,
Injury, and illness prevention pillar of our EH&S
We are proud to have seen significant improvements standards includes adherence to the following
in our safety record. At the end of 2018, KPLP measures:
reduced our Occupational Safety and Health
Administration (OSHA) total recordable incidence • Safety risks are identified and addressed
rate by 45% from 2015, on track to meeting our 50% through dedicated action plans
objective by 2020. • Every accident is investigated to determine its
cause and prevent reoccurrence
OSHA Incidence Rate • Safety performance is monitored through
leading and lagging indicators
5
• Every facility regularly monitors and reviews
4
4.0
-45%
3.6 the effectiveness of existing risk management
3 2.9 measures
2.1 2.0
2 Best practices are also shared and regularly
communicated to employees to support peer-to-
1
peer learning and build a culture of safety across
0 the company.
2015 2016 2017 2018 2020 Target

37
5.1 Safety Kruger Products
Recognizing Outstanding
Safety
At KPLP, we celebrate our safety successes and
we also tie in safety with our social responsibility
efforts. Each time a site meets a safety milestone,
a community donation is made by the local team.
We are proud of our plants who achieved safety
milestones and industry recognition in 2018:
• Lennoxville (Sherbrooke), QC was awarded
the 2018 Safety Innovation Award by Kruger,
Inc. Employees chose to donate their $5,000
prize to the Christian Vachon Foundation. The
plant was also recognized for 2 years without
a recordable incident and was recognized by
Pulp & Paper’s Safest Mill in Canada Contest
(Category C)
• Brampton, ON was awarded the 2018 Safety
Innovation Award along with Sherbrooke
• Richelieu (Gatineau), QC was awarded the
Grand Prize for Occupational Health and
Safety - Large Companies in the Innovation
category of the Commission on Standards,
Fairness, Health and Safety at Work (CNESST).
Gatineau was also recognized for 1 year
without a recordable incident, Pulp & Paper’s
Safest Mill in Canada (Category C), and
250,000 hours of incident-free work. Employees
chose to donate their $5000 prize to both the
Centre d’intervention en abus sexuels pour la
famille (CIASF) and Organisme en reduction
des mefaits.
• Memphis, TN was recognized for 250,000
hours of incident-free work and employees
chose to donate their $5,000 prize to the Boys
& Girls Clubs of Greater Memphis.
• Crabtree, QC was recognized in Pulp & Paper’s
Safest Mill in Canada (Category A)
• New Westminster, BC was recognized in Pulp
& Paper’s Safest Mill in Canada (Category B)
The results of the Safest Mill in Canada contest can be
viewed in Pulp & Paper Canada’s Spring 2019 issue.
Spotlight on Safety Excellence:
Memphis
Since launching Sustainability 2020, our
plant in Memphis, Tennessee has dedicated
significant effort to ensure a safe work
environment and improve the mill’s safety
record. At the end of 2018, the mill has
reduced its incident rate by 57% from the
2015 baseline. The Pulp & Paper Safety
Association recognized this impressive
achievement by awarding the plant’s General
Manager with the Executive Eagle Award, the
association’s most prestigious award.
38
5.2 Workforce Kruger Products
Our Workforce
At KPLP, we know our nearly 2,500 employees are
the basis of our success, and are ultimately the
foundation of many of the positive things we can
bring to the North American marketplace. We also
know that our organization has a direct impact on
the lives and wellbeing not only of our employees,
but also their families and communities. Therefore,
this is a corporate responsibility that we do not take
lightly.
That’s why we have doubled the size of our Human
Resources team to deliver on three key promises to
our Employees from our revised Strategic Plan:
• Launching our new Employee Value
Proposition across the company: “We
see your Greatness”
• Delivering our Roadmap for our Diversity
& Inclusion (D&I) project
• Implementing a new global competency
framework
“We see your Greatness”
Our people are our strategic game changer, and
we take great pride in providing a workplace that
enables our people to thrive. The variety of skills,
backgrounds, perspectives and talents across our
workforce is what helps make KPLP great. The
below sections highlight some of what we do at
KPLP to support our people and maintain a great
place to work. These initiatives are all part of our
strategic plan and our “We see your Greatness”
initiative.
Diversity and Inclusion
Our Corporate strategy with respect to Diversity
and Inclusion (D&I) is clear. Under the pillar of
“Winning Team & Culture”, strengthening D&I is
one of the four strategic priorities of our business.
As we think about our corporate mission and D&I,
we want employees to be comfortable to bring
their whole self into the workplace as we see the
power of our diverse and inclusive team.
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5.2 Workforce Kruger Products
In 2018 we began work on developing an official
D&I strategy and roadmap for the future and have
since provided education and training to both our
executive leadership team as well as our HR and
business leaders. This development session will
continue to be introduced to all of our employees
in 2019 along with the detailed roadmap.
We have resolute alignment amongst our
Leadership Team for this initiative and to make
Kruger Products the most welcoming, team-
oriented, and positive workplace it can be. We
also know that diversity of thought, background,
and experience will lead to increased performance.
We’ve seen this time-and-again over the past eight
years. By truly unlocking the potential, creativity,
determination, and passion of our employees, our
business has exceeded the average performance of
our industry.
“I am excited to be working on the
formation of Kruger Products’
Women’s Community Group. This
grassroots organization is committed
to providing a forum for the women
of Kruger Products to invest in
themselves through networking and
mentoring. We are creating a “village
of support” that will assist in driving
change, make us more competitive
in the market and establish the
longevity of Kruger Products.”
− Anna Gaynor, Strategic Accounts Manager, AFH
Training and Development
We have put a significant investment behind talent
management. This includes tools, programs,
resources, and dedicated employees to facilitate
the growth and development of greatness within
our people. Our mentorship program – which
has evolved every year – is a key tenet in how we
encourage our Employees to build each other up.
We have a robust Learning Management System
and offer a wide variety of courses, programs, and
options for Employees to develop their skills and
career development. All told, we spend over $7M a
year on training across the business.
In 2018, we also launched a new competency
framework to ensure we have the right skills aligned
for our business. We have always understood the
importance of competencies that are aligned to our
business and talent strategies. This new framework
ensures that the observable and measurable
skills and behaviors that contribute to workplace
effectiveness and career success are always
updated to the most recent field research.
Health & Wellness
When we look at health, we don’t just think about
physical fitness. We take all aspects of wellness
into account. At KPLP, we want our people to
look and feel their best every single day. We make
it an objective of ours to provide a supportive,
progressive atmosphere at work, and valuable
and useful benefits at home. One of the areas
that we’ve made quantum improvement over the
past few years has been in modernizing our health
benefits offering, as we know this is a critical benefit
for employees (especially younger generations) and
their families. When we look at health, we don’t
just think about physical fitness. We have for a long
time taken a wider view on wellness and focus on
all of its aspects, including: mental health, financial
health, social health, and nutrition.
We offer competitive and flexible health benefits
for all salaried employees and extensive optional
and extended health, wellness, and family friendly
benefits and policies. We also offer online training
and support tools to employees on a range of
health and wellness topics, such as Managing
Mental Health Matters and Emotional Intelligence.
At our Head Office and New Westminster facility
we a multi-functional Wellness Committee works to
make health and wellness a part of everyone’s day.
At our Head Office, we put on a variety of monthly
events as part of our ‘Wellness Wednesday’
initiative such as massages on site, a nutrition 101
talk, and a mental health 101 talk. Each event is
communicated on all of our KPLP communication
channels, and engagement has been very high.
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6.0 Our Locations Kruger Products

6.0
Our Communities

41
6.1 Our Communities Kruger Products

Our Communities
At KPLP, we recognize that an important aspect of
being a sustainable company is making a positive
difference in the community. We believe that we
can make a difference in the lives of our employees,
customers and community members, and take our
responsibility to do so very seriously. We invest time in
community-building activities and local philanthropy,
thereby contributing to the health, welfare and social
well-being of neighbours and community partners.
Corporately, we’ve aligned ourselves with community
and philanthropic endeavors that are important to our
consumers, particularly in the areas of cancer research,
children’s health, environmental conservation, and
women’s sports. Our support is strategically focused and
our commitments are typically long-term relationships.
We support more than 50 initiatives and programs across
the country, and actively provide both work-time and
encouragement to our employees, so that they may get
involved with the cause of their choice.

Giving back is an integral part of our

company culture

“To me community commitment is the bond which exists between members or

groups and their respective communities. It can be reinforced or demonstrated
via the actions we take to create and maintain safe, stable and nurturing
relationships and environments”
− Shastri Ramkhelawan, Director, I.T.

42
6.1 Our Communities Kruger Products
Cancer Research
Designing a Future Without Breast Cancer
A longstanding and committed contributor to
the breast cancer cause, KPLP has supported the
Canadian Breast Cancer Foundation (CBCF), now
known as the Canadian Cancer Society (CCS)
since 2005, and today is one of the top 5 partners
supporting the breast cancer cause at CCS, based
on annual contribution and awareness raising
initiatives. Over the years, our support has helped
fund innovative research that aims to reduce the
incidence of breast cancer, lower mortality rates
and support women and their families affected by
breast cancer.
Cashmere Collection
The Cashmere Collection is a fund- and awareness-
raiser for the Canadian Cancer Society’s Breast
Cancer efforts featuring Canadian fashion designers
who are challenged to design breathtaking fashion
creations that have been crafted in 100% luxurious
Cashmere bathroom tissue and then send them
down the runway. An internationally acclaimed
showcase for Canada’s top design talent, the
Cashmere Collection debuted 15 years ago in
2004. It has featured more than 195 top Canadian
designers to date and the 2018 collection was the
fifteenth in the series.
Supporting the Quebec Breast Cancer
Foundation
KPLP has been dedicated to supporting breast
cancer efforts at the Quebec Breast Cancer
Foundation. Together, we are helping to create a
future without breast cancer.
Crohn’s & Colitis Canada
Through our Cashmere and Purex bathroom
tissue brands, KPLP became affiliated with Crohn’s
& Colitis Canada in 2014 as a national sponsor
for Gutsy Walk. Gutsy Walk is Canada’s largest
community event committed to raising funds for
Crohn’s & Colitis disease and ulcerative colitis.
Children’s Health
Ronald McDonald House Canada
Since 1990, 100% of all household paper products
supplied to the 15 Ronald McDonald Houses across
Canada has been donated by KPLP’s Away From
Home Division. With 70% of Canadians living
outside of a city with a children’s hospital, the 15
Ronald McDonald Houses across Canada provide
a home for out-of-town families whose children are
being treated at a nearby hospital.
Friends Of We Care
For more than a decade, KPLP has helped
send children with disabilities to Easter Seals
camps through our Away From Home Division’s
sponsorship of Friends of We Care. Every year,
Friends of We Care helps send 5000 children with
disabilities to fully-accessible Easter Seals Camps
across Canada.
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6.1 Our Communities Kruger Products
Environmental
Conservation
Nature Conservancy of Canada
KPLP partnered with the Nature Conservancy of
Canada (NCC) starting in 2019 to encourage Canadians
to connect with nature by taking a journey through
some of the greatest examples of our country’s natural
areas. NCC’s Nature Destinations program invites
Canadians to connect with nature in over 20 properties
from coast to coast, with more added every year.
From coastal estuaries in Atlantic Canada to Quebec’s
Appalachian Mountain range, to the prairie grasslands
and BC’s interior habitats, each Nature Destination
offers opportunities to create unforgettable memories
in Canada’s unique landscapes.
Women’s Sport
Scottie’s Tournament of Hearts
We have proudly supported Canadian women’s
curling through our 38-year sponsorship of the
Scotties Tournament of Hearts. KPLP has been
a sponsor of the Canadian Women’s Curling
Championship (Scotties Tournament of Hearts)
since 1982. Our proud support represents one of
the longest sponsorship of amateur athletics in
Canada. In addition, we also provide sponsorship
to all provincial women’s curling championships.
We support women’s curling at a grassroots level,
and truly believe that the women competing all
across the country are champions – on and off the
ice. The 2019 event in Sydney, NS was a riveting
event that featured Kruger Products branding and
personnel in attendance, along with a TV spot that
we proudly aired across Canada, as well as online.
Local Community Support
The culture of “giving back” is an integral part of our
company identity. Across our facilities, our employees
donate their time, raise money, and support causes
important to our communities.
Many of our facilities have a Community Involvement
Committee that meets to brainstorm ideas on how KPLP
and its employees can be involved and contribute to our
local communities. Below are a sample of organization
our facilities supported at the local level in the past year:
• Sistering Shelter
• Dress for Success
• Food Bank
• Regeneration’s Winter Coat Drive
• JFJ Centre
• Earth Day
• Knights of Columbus
• United Way
• Big Brothers and Big Sisters
• Miracle Treat Day
• Cp24 Chum Christmas Wish Foundation
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7.0 Principle Industry and Business Associations Kruger Products

Our Reporting &

7.0
Performance Data

45
7.1 Performance Data Kruger Products

Kruger Products, L.P. Sustainability Key Performance Indicators:

Operations
2009
Energy Consumption1 Unit 2018* 2017* 2016* 2015
Benchmark
Natural Gas Gigajoules 4,314,868 4,093,447 3,970,252 4,053,601 4,271,830

% of Total 61 61 61 61 65

Grid-Supplied Electricity Gigajoules 2,329,479 2,305,309 2,246,507 2,187,507 1,992,136

% of Total 34 34 34 34 31

Biomass Gigajoules 361,216 350,841 332,189 355,002 15,977

% of Total 5 5 5 5 0

Other (Diesel, Oil, Propane) Gigajoules 44,760 34,020 28,297 31,392 287,585

% of Total 0 0 0 0 4

Total Gigajoules 7,050,322 6,783,427 6,577,246 6,627,502 6,567,528

GJ/MDMT Produced 19.65 19.81 19.53 20.67 21.72

Energy from Renewables % of Total 27 27 29 27 26

2009
Greenhouse Gas Emissions1 Unit 2018* 2017* 2016* 2015
Benchmark
CO²e Scope 1 (Direct) Metric Tonnes CO2e 218,365 207,015 201,963 206,732 236,712
kg CO2e/MDMT
Produced 609 605 599 644 783
Location-based CO²e Scope 2 Metric Tonnes CO2e 119,240 121,355 132,443 142,432 63,843
(Indirect)
kg CO2e/MDMT
Produced
332 354 393 444 211

Total Metric Tonnes CO2e 337,239 328,371 334,407 320,613 300,545

kg CO2e/MDMT
Produced
940 959 993 1060 994
Market-based CO²e Scope 2 kg CO2e/MDMT
(Indirect) Produced
78,102 82,879 94,135 N/A N/A

2009
CAC Emissions1 Unit 2018* 2017* 2016* 2015
Benchmark
NOx Metric Tonnes 302.3 292.5 285.1 - -

SOx Metric Tonnes 109.3 108.1 104.8 - -

TPM 93.2 91.3 87.5 - -

2
Metric Tonnes

VOCs3 Metric Tonnes 16.1 15.5 15.2 - -

CO Metric Tonnes 296.4 286.4 276 - -

2009
Water1 Unit 2018* 2017* 2016* 2015
Benchmark
Effluent Hydraulic Flow m3 19,606,335 18,895,035 20,114,475 20,471,496 22,983,464
3
M /MDMT Produced 55 55 60 64 76

46
7.1 Performance Data Kruger Products

2009
Effluent Discharges1 Unit 2018* 2017* 2016* 2015
Benchmark

BOD Metric Tonnes 873 1,654 1,473 1,693 -

Suspended Solids Metric Tonnes 3,492 2,901 2,956 4,800 -

COD Metric Tonnes

4
5,253 5,588 5,988 790 -
7

AOX5 Metric Tonnes 10 9 11 10 -

P6 Metric Tonnes 3 4 4 4 -

2009
Solid Waste1 Unit 2018* 2017* 2016* 2015
Benchmark
Generated Metric Tonnes 49,658 50,349 47,671 45,390 -

Recovered Metric Tonnes 42,915 41,514 41,216 40,711 -

% of Total 88 82 86 90 -

Landfill Metric Tonnes 5,743 8,835 6,455 4,679 -

% of Total 12 18 14 10 -

Products
2009
Fibre Consumed Unit 2018* 2017* 2016* 2015
Benchmark
Purchased Recycled Air Dried MT 4,547 5,500 4,829 6,264 7,026

% of Total 1 2 1 2 3

Produced Recycled Air Dried MT 82,301 74,866 85,454 77,066 78,921

% of Total 23 22 25 24 27

Purchased Virgin Air Dried MT 269,765 262,939 248,803 236,917 181,091

% of Total 76 76 73 74 64

Produced Virgin Air Dried MT - - - - 16,833

% of Total 0 - - - 6

Total Air Dried MT 356,613 343,355 339,086 320,247 283,871

FSC® Mix Certified % of Total 31 34 32 33 0

FSC® Recycled Certified % of Total 24 22 25 24 0

Non-Controversial Sources % of Total 45 44 43 43 0

2009
Certified Products Unit 2018* 2017* 2016* 2015
Benchmark
UL ECOLOGO (UL 175) No. of Products 58 55 55 55 93

Forest Stewardship Council® No. of Products 110 107 127 126 0

Green Seal No. of Products 1 1 1 1 1

47
7.1 Performance Data Kruger Products

2009
Certified Papermaking Unit 2018* 2017* 2016* 2015
Benchmark
ISO 9001 % of Total 100 100 100 100 -
Production

2009
Production Unit 2018* 2017* 2016* 2015
Benchmark
Paper MDMT 358,807 342,427 336,771 320,613 302,414

Social
2009
Health & Safety Unit 2018* 2017* 2016* 2015
Benchmark
OSHA Total Incidence Rate 2.1 2.9 3.6 4.0 6.6

Lost Work Days No. of Day 614 795 1,436 907 -

Fatalities No. of Employees 0 0 0 0 0

2009
Leadership Diversity Unit 2018* 2017* 2016* 2015
Benchmark

Women in Board Roles Percentage 25 0 25 25 N/A

Women in Senior Leadership Roles Percentage 18 10 10 10 10

*Includes Trenton and Scarborough, ON Converting Plants Data

Manufacturing operations only.
²For certain emission sources, an emission factor for TPM (total particulate matter) was not available. In these instances, PM10 or Filterable PM is used to represent TPM.
³For certain emission sources, an emission factor for VOC (Volatile organic compound) was not available. In these instances, TOC (total organic carbon) or NMTOC
(non-methane organic compound) is used to represent VOC.
4Does not include New Westminster, BC Plant.

5Only Gatineau and Crabtree, QC Plants included.

6Only Crabtree and Lennoxville (Sherbrooke), QC Plants included.

7Only Gatineau, Crabtree and Lenoxville (Sherbrooke), QC Plants included.

MDMT=Machine Dried Metric Tonnes

48
We welcome feedback from our
stakeholders. For more information,
clarification or to provide any comments,
please contact:

Steven Sage
Vice President, Sustainability
Kruger Products, L.P.
1900 Minnesota Court, Suite 200
Mississauga, ON L5N 5R5
905.812.6900
sustainability@krugerproducts.ca

49
©2019 Kruger Product L.P. ®Registered trademarks and ™trademarks of Kruger Products L.P. ®’ SCOTTIES is a trademark of Kimberly-Clark
Worldwide Inc., used under license. ® Forest Stewardship Council and FSC logo -- Forest Stewardship Council, A.C.