Intertape
Polymer
Group Inc.

Sustainability
Report 2020

Our
Circular
Economy

We are pleased to present the Intertape Polymer Group Inc. (IPG) 2020 Sustainability Report. Our longstanding and simple corporate mantra of “just do the right thing” is as relevant today as ever. The events of the past year impacted every one of us in some manner, from the COVID-19 pandemic to the greater recognition of social injustice. In the face of these challenges, an opportunity for positive change exists.

Embracing sustainability is one of the areas where we believe IPG can impact our employees, the communities where we live, our customers including end-users of our products, our suppliers, and our shareholders. 102-14

IPG has always focused on our employees’ health and safety, and we emerged from 2020 stronger than ever in our safety message. We have established enhanced processes and procedures to implement safety measures that will continue to benefit us. I am incredibly proud of the accomplishments of our employees last year.

In 2020, we made several significant steps forward on our sustainability agenda.

We advanced our strategy to increase our offering of more C2C CertifiedTM products. In 2020, IPG was awarded C2C Certifications for our Exlfilmplus performance shrink films, our SuperFLEX® and StretchFLEX® stretch film, and our NovaShield® structure membrane products. Each of these products is the first-to-the-world product in its respective product category to be C2C Certified.

We published our Sustainable Product Design and Development Vision Statement, publicly stating our commitment to developing safe, circular, and sustainable products.

The Board of Directors established a new committee of the Board, the Environmental, Social & Governance (ESG) Committee, to govern our stakeholder sustainability activities.

We formalized our sustainability management structure by introducing a Vice-President, Sustainability position reporting directly into the Chief Financial Officer.

Our Truro, Nova Scotia manufacturing facility achieved ISO 50001 certification of its Energy Management System. Truro is the first IPG facility to achieve ISO 50001 certification, signifying another critical step forward in our sustainability journey.

We continued our focus on ENERGY STAR® practices. During this past year, we were recognized for the sixth consecutive time by the U.S. Environmental Protection Agency and the U.S. Department of Energy with the ENERGY STAR Partner of the Year Sustained Excellence Award for continued leadership and superior contributions.

We signed the Association of Plastics Recyclers Demand Champion Commitment letter signifying our support of including increased amounts of postconsumer recycled content in our products.

We also signed the U.S. EPA America Recycles pledge to further demonstrate our commitment to supporting a circular economy and eliminating the concept of waste.

Over the next several months, we will be formalizing our sustainability goals and will plan a public announcement in early 2022.

We are proud of the effort and commitment demonstrated by our employees and business partners that delivered the successes and opportunities shared in this report. However, we view sustainability as a journey, and we must continue to move forward.

We will continue to do the right thing for People, Planet and Profitability, bringing a sustainable future closer through our actions and impacts every day.

Gregory Yull signature

Gregory Yull

Our Approach to Sustainability

  • ESTABLISHED an ESG Committee on our Board of Directors of Intertape Polymer Group Inc. (Board of Directors).
  • CONDUCTED a materiality assessment to identify and prioritize environmental, social, and governance topics relevant to IPG and our stakeholders.
  • HIRED a Vice-President, Sustainability to coordinate and direct our efforts.
  • EXPANDED our Sustainability Pillar to include recent acquisitions and Fibope.
  • ADOPTED a Sustainable Product Design and Development Vision, which places the precautionary principle outlined in the United Nations Global Compact (the Compact) and the Cradle to Cradle® (C2C) design principles as central pillars to guide our aspirational sustainable product lifecycle goals.
  • REVISED our IPG Environmental Policy to align with our vision of embracing sustainability and driving continuous improvement.
  • DEVELOPED an Energy Policy and a Water Policy.
  • DEVELOPED our Water Impact Strategy, established the Water Committee, and completed an assessment of our operations relative to water-stressed regions.
  • CONDUCTED virtual energy and sustainability summits.
  • CONTINUED efforts to establish long-term sustainability goals for our operations.
  • COMPLETED the initial EcoVadis supplier reporting assessment.

Our Products

  • TO DATE, four of our products have received C2C certification; two at the Bronze level (water-activated tape and Nova Shield structure membrane products), and two at the Silver level (Exlfilmplus performance shrink films and SuperFlex and StretchFlex stretch films). Together, our certified products represent 21% of total IPG sales.
  • CONTINUED to explore long-term goals to increase our products’ recyclability.
  • SET A GOAL to establish and implement a How2Recycle labeling strategy for all eligible products by the end of 2021.
  • AT THE END OF 2020, 47% of our packaging products, by sales, were recyclable, reusable, or compostable.

Our People

  • CONTINUED to realize improvements in our safety performance, with downward trends in both our TCIR and LWCIR rates (defined on page 23).
  • MET THE CHALLENGE presented by COVID-19. As the world turned to e-commerce, they indirectly turned to us as a primarily business-to-business company focused on shipping and packaging supplies. We put safety measures in place, instituted paid leave for all U.S. employees for certain COVID-19-related reasons, implemented remote work practices where possible, and added significant safety protocols for those needing to be on site in our manufacturing facilities. At the end of 2020, we have had no cases of COVID-19 originating from our workplace.
  • EXPANDED FOCUS on Health & Wellness, with increased focus and communications company wide. This topic was discussed extensively during town halls and other employee communication meetings. We implemented various other communication channels including wellness activities and contests. The topic of mental health and personal well-being was at the heart of all of our wellness initiatives. The use of our Employee Assistance Programs was promoted and encouraged. Our focus was on the complete mental and physical health and wellness of our employees, their families, and our communities.
  • ADDED LANGUAGE to our supplier contracts about IPG participation in the Compact and our expectation that our suppliers abide by its commitments, even if they are not signatories themselves.
  • IMPLEMENTED actions stemming from 2019 Employee Engagement Survey, including more frequent and interactive virtual employee meetings, new feedback mechanisms, engagement training for supervisors and managers, and recognition programs.
  • INITIATED Leader Standard Work and Core Leadership training for supervisory employees.
  • RE-IMAGINED our programs and rallied to satisfy crucial needs in our communities, including donating food, physical goods, and volunteer hours to several causes.

Our Planet

  • EXCEEDED our goal to reduce energy intensity by 2.5% per year and CO2 emissions by 3% per year. Established in 2020 using 2019 as the baseline year, we have reduced our energy intensity by 7.16% and our CO2 emissions by 3.67%.
  • REALIZED a 7.03% decrease in direct (Scope 1) emissions and a 1.95% decrease in indirect (Scope 2) emissions from 2019 – 2020.
  • ACHIEVED a 2.79% reduction in carbon intensity in 2020 compared to 2019.
  • COMMITTED to reducing water withdrawal by 25% by 2030, using 2019 as our baseline year, focusing on reductions at those operations with water-stressed conditions. We made progress against this goal in 2020, with a 36.25 mega-liter (6.37%) reduction in our water use, with over 6.83 mega-liters of this reduction coming from facilities in water- stressed locations.
  • BECAME an Association of Plastics Recyclers (APR) Demand Champion by signing APR’s Demand Champion Commitment letter signifying our support of including increased post-consumer recycled content in our products.
  • SIGNED the US EPA America Recycles pledge signaling our support to act with other pledge signatories to improve America’s recycling system.
  • RECEIVED the 2020 ENERGY STAR Partner of the Year award (6th year in a row).
  • EARNED the first ENERGY STAR certification at the Danville regional distribution center.
  • ACHIEVED the ENERGY STAR Challenge for Industry in our Danville stretch film operation by reducing energy intensity by more than 21 percent within four years from a 2015 baseline year.
  • INSTALLED a new rooftop solar array at our Daman, India facility. The solar facilities annual generation is 115,000 KWhr, with an expected 81 MT of CO2e emissions reduction annually.
  • OBTAINED the ISO 50001 certification in Truro, Nova Scotia.
  • BROADENED our transportation pool points across the country (grouping shipments for the initial portion of the trip) and reduced our footprint in the LTL network, increasing logistic efficiency and further reducing our overall impact on the planet. In 2020 the expanded use of pool points resulted in a savings of over 651,000 CO2 metric tons.
  • JOINED the Renewable Energy Buyers Alliance (REBA).

Our Performance

  • GREW our business despite the pandemic, demonstrating our ability to address the challenges of an uncertain environment.
  • SUCCESSFULLY leveraged existing systems and processes to create a framework for new processes to address COVID-19.
  • ACCOMMODATED the data security and technology needs to support the increased number of remote employees and significant demand on our e-commerce platform.

Our Approach to Sustainability

  • CONTINUE To improve our effort reporting in accordance with the CDP (formerly Carbon Disclosure project), to inform and improve our efforts to manage our environmental impacts.
  • INCREASE the number of facilities with ISO 9001, 14001, and 50001 certifications, and expand participation in the OSHA VPP program.
  • EXPAND sustainability reporting to additional frameworks, including CDP and the Task Force on Climate-related Financial Disclosures.
  • ENHANCE data collection and assurance protocols for further transparency in our sustainable reporting.

Our Products

  • INCREASE the number of C2C Certified products.
  • DEFINE and step into our role to help address the global challenge of plastic waste.
  • CONTINUE to focus on sustainable packaging to help to develop the market for sustainable packaging materials.
  • DEVELOP a supply chain for plastic recyclate that performs as well or better than the current raw material supply chain for resin.
  • IMPLEMENT sustainable packaging for IPG’s packaged products and eliminate the use of PVC in packaging.
  • EXPAND the use of renewable materials as potential replacements for non-renewable material sources and drive demand for recycled content by including post- consumer recycled content in our products.
  • CONTINUE to work with our suppliers and third-party assessors to evaluate the human and environmental health impacts of our raw materials and finished products.

Our People

  • CONTINUE to foster and develop a respectful and equitable work environment that allows room for individuals of varying walks of life to feel welcome.
  • STRIVE to create a diverse, global workforce that represents the communities in which we operate.
  • CONTINUE to integrate new acquisitions into the IPG system, to normalize recordkeeping practices across all sites, and to implement our digital safety platform, which is scheduled for roll out in 2021.
  • EXPLORE ways to better understand the risk for child labor, forced or compulsory labor, or limits to freedom of association or collective bargaining in our operations and supply chain.
  • CONTINUE to integrate our culture of community stewardship throughout our global facilities, including our more recent acquisitions.

Our Planet

  • INCREASE the number of C2C Certified products.
  • FOCUS on water conservation with an emphasis on operations in high-water risk geographies. Seven of our operating facilities, or 27 percent, are in parts of the world considered to be at high or extremely high-water risk.
  • BROADEN renewable energy purchasing options.
  • CONTINUE to explore opportunities to reduce our waste generation, and eliminate the waste sent to landfill.

Our Performance

  • FURTHER identify risks and opportunities posed by climate change that can generate substantive changes in operations, revenue, or expenditure.
  • CONTINUE to innovate to offset the physical, regulatory, and reputational risks and meet related market opportunities.
  • CONTINUE to maintain the data security posture of our organization to protect our most valued assets both now and into the future.