Our Sustainability Approach

Mercer’s sustainability strategy is integrated into our business strategy, providing a clear framework that aligns environmental, social, and economic priorities with our operations and financial performance. Our approach focuses on measurable impact, ensuring accountability across our sustainability initiatives.

As a member of the UN Global Compact, we align our efforts with its principles to drive responsible business practices. Through this membership, we have identified key Sustainable Development Goals (SDGs) where our operations and products can make a measurable contribution.

In early 2024, our participation in the UN Global Compact SDG Ambition Accelerator helped us refine our sustainability targets and further align them with global priorities. This initiative supports our ongoing efforts to implement concrete actions that contribute to a sustainable and low-carbon economy.

We view these goals as important commitments that can move sustainable development forward, both in our local communities and globally. Mercer’s dedication to these goals underscores our commitment to fostering positive change toward a more sustainable future.

TEN PRINCIPLES OF THE UNITED NATIONS GLOBAL COMPACT

As a signatory to the UN Global Compact, Mercer is committed to the Ten Principles of the United Nations Global Compact. We realize that our success in sustainability is rooted in our value system that translates into operating with ethics and the highest regard for human rights. In 2024, Mercer completed its first Communication on Progress which enables participating companies of the UN Global Compact to measure and demonstrate progress to stakeholders and the public on the Ten Principles and the Sustainable Development Goals in a consistent and harmonized way.

SDG AMBITION ACCELERATOR PROGRAM WITH THE UNGC IN NEW YORK

Our participation in the UN Global Compact SDG Ambition Accelerator in early 2024 has been a key initiative to accelerate action and further align our sustainability ambitions with our business goals. Our sustainability framework lays the foundation of our sustainability strategy. At Mercer, this is our roadmap to creating positive impacts for society and the planet. Our framework serves as a tool to align our environmental, social, and economic goals with our business strategies, operations, and financial performance.

Our membership in the UN Global Compact reinforces this commitment, emphasizing responsible practices in human rights, labor, environment, and anti-corruption. As part of the UN Global Compact, we have identified the Sustainable Development Goals towards which our operations and products can make effective contributions.

Strategic Focus Areas: At Mercer, we center our efforts toward a more sustainable future around six key focus areas that provide guidance in policy and practice.
Environmental Performance
We strive to continuously improve environmental performance across the organization and with our business partners.
Circular Bioeconomy
We continuously improve resource efficiency and advance the circular bioeconomy.
Sustainable Enterprise
We focus on sustainable long-term growth and value creation.
Climate Change
We innovate and implement processes aimed at mitigating and adapting to the effects associated with climate change.
Sustainable Forestry
We acknowledge our responsibility to sustainably manage forests and promote responsible forestry in our supply chain.
Social Responsibility
We embrace social responsibility to advance the well-being of employees, local communities, and business partners across our supply chain.
Our Sustainability Approach is framed around strategic focus areas and related targets and indicators. Our 2024 results and progress are summarized in the table below. Please refer to the individual sections within the report for further details related to our progress.
Theme and Focus Area 2030 Aspirational Goals 2024 Progress Status UN SDG
Environment
Champion Sustainable Forestry 75% share of certified fiber, with 100% of fiber from responsible sources1 68% certified fiber
100% of fiber comes from responsible sources
Mitigate Climate Change 50% reduction in scope 1 GHG emissions per tonne of pulp from a 2019 baseline1 10% increase from 2019

35% reduction in absolute scope 2 GHG emissions from a 2024 baseline1 Revised goal
35% reduction in absolute scope 3 GHG emissions from a 2024 baseline1 Revised goal
90% of energy from renewable sources1 83%
200% growth in stored carbon in mass timber from a 2024 baseline1 New goal
Improve Resource Efficiencies and the Circular Bioeconomy 10% reduction in water withdrawal intensity from a 2019 baseline1 1% increase from 2019
5% improvement in resource efficiency from a 2024 baseline in1:

• Fiber utilization rate New goal
• Chemical utilization rate New goal
• Energy intensity New goal
30% reduction in landfill waste intensity from a 2019 baseline1 24% decrease from 2019
Advance the substitution of fossil-based products with innovative biomaterials and low-carbon products through R&D and collaborative partnerships1 New goal
Social
Embrace Social Responsibility 60th percentile inclusion index score1 22nd percentile
80% engagement survey response rate1 60%
<1.7 total recordable incidents rate1 2.76
Governance
Sustainable Enterprise Balanced and resilient EBITDA1 Operating EBITDA: $243,722,000
Revenue Mix:
71% Pulp
21% Solid wood2
8% Bioenergy, Biofuels, and Biochemicals3
Be the preferred global supplier, delivering superior value proposition1 Continuous engagement with customers to meet strategic and sustainability needs
Environment
Theme and Focus Area Champion Sustainable Forestry
2030 Aspirational Goals 75% share of certified fiber, with 100% of fiber from responsible sources1
2024 Progress 68% certified fiber
100% of fiber comes from responsible sources
Status
UN SDG
Theme and Focus Area Mitigate Climate Change
2030 Aspirational Goals 50% reduction in scope 1 GHG emissions per tonne of pulp from a 2019 baseline1
2024 Progress 10% increase from 2019
Status
UN SDG
Theme and Focus Area Mitigate Climate Change
2030 Aspirational Goals 35% reduction in absolute scope 2 GHG emissions from a 2024 baseline1
2024 Progress Revised goal
Status
UN SDG
Theme and Focus Area Mitigate Climate Change
2030 Aspirational Goals 35% reduction in absolute scope 3 GHG emissions from a 2024 baseline1
2024 Progress Revised goal
Status
UN SDG
Theme and Focus Area Mitigate Climate Change
2030 Aspirational Goals 90% of energy from renewable sources1
2024 Progress 83%
Status
UN SDG
Theme and Focus Area Mitigate Climate Change
2030 Aspirational Goals 200% growth in stored carbon in mass timber from a 2024 baseline1
2024 Progress New goal
Status
UN SDG
Theme and Focus Area Improve Resource Efficiencies and the Circular Bioeconomy
2030 Aspirational Goals 10% reduction in water withdrawal intensity from a 2019 baseline1
2024 Progress 1% increase from 2019
Status
UN SDG
Theme and Focus Area Improve Resource Efficiencies and the Circular Bioeconomy
2030 Aspirational Goals 5% improvement in resource efficiency from a 2024 baseline in1:
• Fiber utilization rate
• Chemical utilization rate
• Energy intensity
2024 Progress New goal
Status
UN SDG
Theme and Focus Area Improve Resource Efficiencies and the Circular Bioeconomy
2030 Aspirational Goals 30% reduction in landfill waste intensity from a 2019 baseline1
2024 Progress 24% decrease from 2019
Status
UN SDG
Theme and Focus Area Improve Resource Efficiencies and the Circular Bioeconomy
2030 Aspirational Goals Advance the substitution of fossil-based products with innovative biomaterials and low-carbon products through R&D and collaborative partnerships1
2024 Progress New goal
Status
UN SDG
Social
Theme and Focus Area Embrace Social Responsibility
2030 Aspirational Goals 60th percentile inclusion index score1
2024 Progress 22nd percentile
Status
UN SDG
Theme and Focus Area Embrace Social Responsibility
2030 Aspirational Goals 80% engagement survey response rate1
2024 Progress 60%
Status
UN SDG
Theme and Focus Area Embrace Social Responsibility
2030 Aspirational Goals <1.7 total recordable incidents rate1
2024 Progress 2.76
Status
UN SDG
Governance
Theme and Focus Area Sustainable Enterprise
2030 Aspirational Goals Balanced and resilient EBITDA1
2024 Progress Operating EBITDA: $243,722,000
Revenue Mix:
71% Pulp
21% Solid wood2
8% Bioenergy, Biofuels, and Biochemicals3
Status
UN SDG
Theme and Focus Area Sustainable Enterprise
2030 Aspirational Goals Be the preferred global supplier, delivering superior value proposition1
2024 Progress Continuous engagement with customers to meet strategic and sustainability needs
Status
UN SDG
1 See Appendix for a summary table of our targets, progress, and corresponding methodology and scope.
2 Solid wood includes lumber, mass timber, and pallets.
3 Bioenergy, biofuels, and biochemicals include bioenergy, pellets, briquettes, tall oil, turpentine, and methanol.
In progress, on track
Needs acceleration

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