Responsible Sourcing Strategy

Responsible Sourcing Strategy

“We collaborate with customers and suppliers to ensure every phase of our supply chain, from procurement to manufacturing, distribution, sales and recycling, delivers safe, profitable and environmentally responsible solutions.” David Liebetreu, VP, Global Sourcing

International Paper’s global supply chain includes more than 100,000 suppliers that provide products and services from around the world. Our supply base is complex and diverse. With products ranging from fiber, raw materials and energy, to services such as transportation, we have a vast network that supports our production of sustainable and renewal paper and packaging products. With a global expenditure exceeding $15 billion, half of which is with suppliers based in the United States, our initial supply-chain focus is U.S. suppliers with national and global reach.

For improved global alignment, we have established internal Global Commodity Boards, led by senior sourcing professionals from each region around the world. These boards assure a standard approach to sustainability in our sourcing processes worldwide.

Our Global Sourcing policies and processes ensure we secure quality products and services that create, deliver and sustain value for our operations and customers. Our strategic sourcing process applies a comprehensive methodology to source products and services in support of our operations around the globe.

In 2013, we continued to develop our Supply Chain Sustainability Strategy by reaching out to internal and external stakeholders for input. With the support of our Global Commodity Boards, cross-functional working teams were developed to build the framework of the supply-chain strategy. With help from Pennsylvania State University’s Smeal MBA program, a benchmark study was completed. The study identified key opportunities, confirming the focus and path forward in support of our strategic approach.

International Paper’s Global Supply Chain organization collaborates with stakeholders to reduce emissions and waste, consume natural resources responsibly, maximize the use of renewable resources and further mitigate risk — which in general contributes to lowering our overall total cost of ownership. This strategy enables increased transparency and performance through the following supply-chain aspects:

  • Risk Assessments — Identify potential risk in the supply chain, assess the likelihood of risk and develop response protocols to address potential exposure;
  • Capturing Value Through Improved Collaborations — Capture, measure, monitor and communicate initiatives that have a sustainability impact on International Paper’s supply chain and;
  • Supplier Diversity — Commit to the growth and development of U.S. minority- and women-owned business enterprises.

FEATURED STORY

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Expanding Renewable Energy Beyond Biomass

In Exeter, California, the industrial packaging business installed a ground-mounted solar system with single-axis tracking technology that will produce 1 MW of electricity, providing a significant amount of the plant’s electricity needs. The system, which uses over 3,700 solar panels, is estimated to offset 1,765 tons of GHG emissions annually and is financially and environmentally sustainable. Although this project makes up a tiny fraction of International Paper’s overall energy footprint, the installation is an added feature of our energy profile.

FEATURED STORY

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Capital & Manufacturing Services

In 2013, International Paper’s Manufacturing Services team reached an agreement with three key suppliers for the ongoing maintenance, repair or reuse of electronic sensors and circuit boards in our mills. The combination of these agreements and previously established internal recycling systems, centralized the prioritization of all facility repairs through Global Sourcing. The program resulted in International Paper generating repair-cost reductions as well as eliminating waste.