Clearwater Paper Corporation (CLW): Análisis PESTLE [Actualizado en Ene-2025]

En el panorama dinámico de la fabricación de papel y envases, Clearwater Paper Corporation (CLW) se encuentra en una intersección crítica de desafíos globales y soluciones innovadoras. Este análisis integral de mortero presenta las fuerzas externas multifacéticas que configuran la trayectoria estratégica de la compañía, revelando cómo los factores políticos, económicos, sociológicos, tecnológicos, legales y ambientales complejos están transformando la industria del papel tradicional. Desde la gestión forestal sostenible hasta las innovaciones tecnológicas de vanguardia, el viaje de Clearwater Paper refleja la intrincada danza de la resiliencia y adaptación corporativa en un mercado global en constante evolución.

Clearwater Paper Corporation (CLW) - Análisis de mortero: factores políticos

Impacto potencial de las políticas comerciales de EE. UU. En la fabricación de papel y envases

A partir de 2024, las políticas comerciales de EE. UU. Impactan directamente las operaciones de fabricación de Clearwater Paper Corporation. Las tarifas arancelas actuales en productos de papel importados son de 6.8% para papel no recubierto y 8.2% para materiales de embalaje.

Indicador de política comercial	Tasa actual
Tarifa de importación sobre papel no recubierto	6.8%
Tarifa de importación sobre materiales de embalaje	8.2%
Costos anuales de cumplimiento comercial	$ 1.3 millones

Regulaciones gubernamentales que afectan el manejo forestal y el abastecimiento de madera

Las regulaciones federales influyen significativamente en las estrategias de abastecimiento de madera de Clearwater Paper.

• Requisitos de certificación del Consejo de Administración Forestal (FSC)
• Estándares de cumplimiento de la Iniciativa Forestal Sostenible (SFI)
• Pautas de recolección de madera de la Agencia de Protección Ambiental (EPA)

Métrico de cumplimiento regulatorio	2024 datos
Costos anuales de cumplimiento de la gestión forestal	$ 2.7 millones
Porcentaje de abastecimiento de madera certificado por FSC	62%

Cambios potenciales en la legislación de protección del medio ambiente

La Ley de Reducción de Inflación de 2022 continúa influyendo en las regulaciones ambientales para las industrias manufactureras.

• Requisitos de informes de emisiones de carbono
• Mandatos de integración de energía renovable
• Reducción de residuos y regulaciones de reciclaje

Métrica de cumplimiento ambiental	2024 datos
Costos anuales de informes de emisiones de carbono	$840,000
Inversión proyectada en tecnologías verdes	$ 5.6 millones

Posibles cambios en los subsidios federales para la industria de productos forestales

El apoyo federal actual para la industria de productos forestales incluye incentivos fiscales específicos y subvenciones de investigación.

Categoría de subsidio	Cantidad de 2024
Créditos fiscales de investigación y desarrollo	$ 1.2 millones
Incentivos de producción de energía renovable	$950,000
Programas de subvenciones forestales sostenibles	$ 1.5 millones

Clearwater Paper Corporation (CLW) - Análisis de mortero: factores económicos

Volatilidad en la pulpa y los precios de los productos básicos

A partir del cuarto trimestre de 2023, Clearwater Paper Corporation experimentó significativas fluctuaciones de precios de productos básicos. Los precios de la pulpa oscilaron entre $ 780 y $ 920 por tonelada métrica. El precio de los productos básicos en papel mostró la siguiente tendencia:

Tipo de papel	Rango de precios (USD/tonelada)	2023 volatilidad
Contenedor	$650 - $750	14.3%
Papel de seda	$1,100 - $1,250	12.7%
Papel de embalaje	$700 - $820	16.2%

Fluctuando la demanda en los mercados de envases y productos en papel

El análisis de la demanda del mercado para Clearwater Paper Corporation revela:

Segmento de productos	Volumen de demanda 2023	Cambio año tras año
Productos de embalaje	1.2 millones de toneladas	+3.5%
Productos de tejido	850,000 toneladas	-1.8%
Productos para pulpa	620,000 toneladas	+2.1%

Desafíos económicos potenciales de la inflación y las interrupciones de la cadena de suministro

Impacto de la inflación en Clearwater Paper Corporation:

• Índice de precios del productor (PPI) para productos en papel: 5.7%
• Aumento del costo de la materia prima: 6.2%
• Gastos de transporte y logística: 4.9%

Impacto de las tasas de interés en las estrategias de préstamos y expansión corporativos

Métricas financieras para Clearwater Paper Corporation:

Indicador financiero	Valor 2023	Cambio del año anterior
Tasa de préstamo corporativo	7.25%	+1.5 puntos porcentuales
Deuda a largo plazo	$ 324 millones	+8.3%
Gasto de capital	$ 87.5 millones	+5.6%

Clearwater Paper Corporation (CLW) - Análisis de mortero: factores sociales

Cambiar las preferencias del consumidor hacia soluciones de empaque sostenibles

Según la Coalición de Embalaje Sostenible, el 74% de los consumidores están dispuestos a pagar más por el empaque sostenible en 2023. La línea de productos de Clearwater Paper refleja esta tendencia con la segmentación específica del mercado:

Categoría de productos	Porcentaje de envasado sostenible	Tasa de crecimiento del mercado
Productos de papel reciclados	42%	6.3% anual
Embalaje ecológico	35%	8.1% anual

Cambios demográficos de la fuerza laboral en los sectores de fabricación

Los datos de la Oficina de Estadísticas Laborales de EE. UU. Muestran demografía de la fuerza laboral de fabricación para 2023:

Grupo de edad	Porcentaje de fabricación	Tenencia promedio
18-34 años	27%	3.2 años
35-54 años	45%	7.6 años
55+ años	28%	12.4 años

Creciente conciencia ambiental que afecta el diseño del producto

Las declaraciones de productos ambientales (EPD) muestran las métricas de impacto ambiental de Clearwater Paper:

• Reducción de la huella de carbono: 22% desde 2020
• Reducción del uso del agua: 18% en procesos de fabricación
• Uso de energía renovable: 37% del consumo total de energía

Aumento de la demanda de productos de papel ecológico

Datos de investigación de mercado sobre la demanda de productos en papel ecológicos:

Tipo de producto	Tamaño del mercado 2023	Crecimiento proyectado para 2027
Papel de impresión reciclado	$ 4.3 mil millones	7,5% CAGR
Papel de embalaje sostenible	$ 6.7 mil millones	9.2% CAGR

Clearwater Paper Corporation (CLW) - Análisis de mortero: factores tecnológicos

Automatización y transformación digital en procesos de fabricación

En 2023, Clearwater Paper invirtió $ 12.3 millones en tecnologías de automatización de fabricación. La compañía informó una reducción del 17.5% en los costos laborales de producción a través de iniciativas de transformación digital. Las líneas de producción automatizadas aumentaron la eficiencia operativa en un 22.4% en sus instalaciones de fabricación.

Categoría de inversión tecnológica	Monto de inversión ($)	Mejora de la eficiencia (%)
Automatización de procesos robóticos	5.6 millones	15.2
Sistemas de fabricación digital	4.7 millones	18.3
Tecnologías de control de procesos	2 millones	12.9

Inversión en reciclaje avanzado y tecnologías de producción sostenible

El papel de Clearwater asignó $ 8.9 millones para tecnologías de producción sostenibles en 2023. Su eficiencia de reciclaje aumentó a 76.5%, con una reducción del 32% en el consumo de agua por unidad de producción.

Tecnología de sostenibilidad	Inversión ($)	Impacto ambiental
Sistemas de reciclaje avanzados	4.2 millones	76.5% Tasa de recuperación de material
Tecnologías de conservación del agua	2.7 millones	32% de reducción del uso del agua
Equipo de eficiencia energética	2 millones	18% de reducción del consumo de energía

Implementación de IA y aprendizaje automático en la gestión de la cadena de suministro

La compañía desplegó soluciones de gestión de la cadena de suministro impulsada por la IA con una inversión de $ 6.5 millones. Los algoritmos de aprendizaje automático mejoraron la precisión del inventario en un 28.3% y redujeron los costos logísticos en un 16,7%.

Aplicación de tecnología de IA	Inversión ($)	Mejora del rendimiento (%)
Gestión de inventario predictivo	3.2 millones	28.3
Optimización logística	2.1 millones	16.7
Pronóstico de demanda	1.2 millones	22.5

Desarrollo de soluciones de envasado innovadoras utilizando materiales avanzados

Clearwater Paper invirtió $ 5.4 millones en el desarrollo de tecnologías de envasado avanzado. Las nuevas innovaciones materiales dieron como resultado un envasado más ligero del 25.6% con métricas de sostenibilidad mejoradas.

Innovación de envasado	Inversión de investigación ($)	Rendimiento material
Materiales de embalaje biodegradables	2.6 millones	25.6% de reducción de peso
Materiales compuestos avanzados	1.8 millones	40% aumentó la durabilidad
Diseño de embalaje sostenible	1 millón	60% de contenido reciclado

Clearwater Paper Corporation (CLW) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones de protección del medio ambiente

Clearwater Paper Corporation incurrió en $ 3.2 millones en costos de cumplimiento ambiental en 2022. Las multas regulatorias de la EPA relacionadas con las emisiones de aire y agua totalizaron $ 127,500 en el mismo año fiscal.

Categoría de regulación	Gasto de cumplimiento	Riesgo de penalización regulatoria
Cumplimiento de la Ley de Aire Limpio	$ 1.4 millones	Medio
Regulaciones de descarga de agua	$ 1.1 millones	Bajo
Gestión de residuos	$700,000	Bajo

Posibles riesgos de litigios en la fabricación de productos forestales

Las disputas legales en curso en 2023 representaron una posible exposición de responsabilidad civil de $ 5.7 millones. Las reservas de litigios actuales se encuentran en $ 2.3 millones.

Tipo de litigio	Responsabilidad estimada	Estado actual
Reclamaciones de daños ambientales	$ 2.1 millones	Pendiente
Disputas contractuales de la cadena de suministro	$ 1.6 millones	Negociación

Protección de propiedad intelectual para tecnologías de envasado innovadoras

Clearwater Paper posee 37 patentes activas con una inversión total de $ 4.5 millones en desarrollo de propiedad intelectual durante 2022.

Categoría de patente	Número de patentes	Inversión de I + D
Tecnología de envasado	22	$ 2.7 millones
Proceso de fabricación	15	$ 1.8 millones

Adhesión a los estándares de seguridad laboral y en el lugar de trabajo

La tasa de incidentes registrables de OSHA fue de 2.6 por cada 100 trabajadores en 2022. Los gastos de capacitación de cumplimiento legal alcanzaron $ 612,000.

Métrica de seguridad	Valor	Inversión de cumplimiento
Incidentes registrables de OSHA	2.6 por cada 100 trabajadores	$612,000
Reclamaciones de compensación de trabajadores	47 reclamos	$ 1.1 millones

Clearwater Paper Corporation (CLW) - Análisis de mortero: factores ambientales

Compromiso con prácticas de manejo forestal sostenible

Fuentes de Clearwater Paper Corporation 100% de su fibra de madera de Programas forestales sostenibles certificados. A partir de 2024, la compañía mantiene la certificación del Consejo de Administración Forestal (FSC) para el 78% de su adquisición de fibra.

Métrica de certificación forestal	2024 datos
Abastecimiento de fibra certificada FSC	78%
Volumen anual de replantación de árboles	1.2 millones de árboles
Tasa de regeneración forestal	103%

Reducción de la huella de carbono en los procesos de fabricación

Clearwater Paper ha invertido $ 42.3 millones en tecnologías de eficiencia energética, reduciendo las emisiones de gases de efecto invernadero en un 22% desde 2019.

Métrica de emisiones de carbono	2024 datos
Reducción total de emisiones de carbono	22%
Inversión en tecnologías verdes	$ 42.3 millones
Uso de energía renovable	37%

Aumento del enfoque en líneas de productos reciclables y biodegradables

En 2024, Clearwater Paper amplió su cartera de productos ecológicos, con el 65% de las líneas de productos que ahora contienen materiales reciclables.

Métrica de productos sostenibles	2024 datos
Líneas de productos reciclables	65%
Porcentaje de producto biodegradable	48%
Contenido reciclado en productos	35%

Implementación de principios de economía circular en la producción

Clearwater Paper ha desarrollado una estrategia de economía circular integral, reduciendo los desechos en un 31% e implementando procesos de fabricación de circuito cerrado en 4 instalaciones de producción primaria.

Métrica de economía circular	2024 datos
Reducción de desechos	31%
Instalaciones con fabricación de circuito cerrado	4
Tasa de reciclaje de agua	62%

Clearwater Paper Corporation (CLW) - PESTLE Analysis: Social factors

The social factors impacting Clearwater Paper Corporation are currently a tailwind, not a headwind. You are seeing a clear shift in consumer values toward sustainability and corporate responsibility, which directly benefits a fiber-based packaging company. This trend is amplified by the structural growth of e-commerce, creating a stable, high-volume demand floor for their products. The company's focus on internal social metrics-specifically diversity and safety-shows they are aligned with modern stakeholder expectations, which is defintely a plus for long-term valuation.

Strong consumer demand for sustainable, fiber-based packaging

The market is sending an unmistakable signal: consumers want sustainable packaging, and they are willing to act on that preference. In 2025, the demand for fiber-based solutions is undeniable, with a significant 87% of consumers reporting they would buy more sustainable products if they were simply easier to find. This is not a niche movement; nearly seven out of ten consumers, or 69%, expect the brands and retailers they support to offer sustainable packaging this year.

Clearwater Paper is strategically positioned to capitalize on this shift, especially with its paperboard products being a renewable resource alternative to non-renewable packaging. Their focus on developing compostable packaging and poly-free coatings directly addresses this core consumer concern. Honestly, this social trend is an irreversible structural change, not a cyclical fad.

E-commerce sector provides stable, ongoing demand for packaging products

The relentless expansion of the e-commerce sector acts as a powerful, stabilizing force for Clearwater Paper's packaging demand. As a premier independent supplier of paperboard to North American converters, the company is deeply embedded in the supply chain for consumer goods and food service applications.

The sheer scale of the opportunity is massive: the e-commerce packaging market is projected to expand rapidly, with an estimated value of $111.93 billion by 2030. This consistent, high-volume need for shipping and product packaging-much of which is fiber-based-ensures a durable revenue stream, buffering the company against volatility in other paperboard segments.

Targeting 30% or greater female representation in the salaried workforce by 2030

Clearwater Paper has set a clear, measurable goal to improve diversity in its professional ranks. Their multi-year sustainability plan includes a target to achieve female representation of 30% or greater in the salaried workforce through 2030.

The good news is they are ahead of schedule. As reported in their 2025 Sustainability Summary, the company has already achieved 33% female representation in its salaried workforce based on 2024 data. This progress shows a strong commitment to their Diversity, Equity, and Inclusion (DE&I) strategy, which is critical for attracting top talent and appealing to institutional investors who increasingly screen for strong social governance (the 'S' in ESG).

Here's the quick math on their salaried workforce as of the 2025 summary:

Metric	Value	Total Employees
Female Salaried Employees	31.5%	685
Male Salaried Employees	68.5%	685

Focus on employee safety with a 75% reduction in significant injuries in 2024

A safe workplace is a non-negotiable social factor, and Clearwater Paper has demonstrated tangible progress on this front. The company's focus on safety is a core part of its 'Thriving People and Communities' pillar.

In 2024, the company achieved a major milestone: a 75% reduction in significant injuries from the prior year, reporting a total of only a single significant injury incident for the entire year. This result is a direct outcome of rolling out new Safety Commitments and Lifesaving Rules, alongside new training for site leaders.

Other key 2024 safety achievements include:

• Reducing identified safety risks by more than 20% versus the prior year.
• Launching new training courses focused on safety for new hires and leadership skills for supervisors.

This level of safety performance reduces operational risk, lowers potential insurance and litigation costs, and improves employee morale and retention. It's a clear example of good social governance driving better business outcomes.

Clearwater Paper Corporation (CLW) - PESTLE Analysis: Technological factors

Exploring a potential $50 million investment for CUK (unbleached paperboard) swing capacity

You need to know where Clearwater Paper Corporation (CLW) is placing its big bets, and right now, the most significant technological decision is the potential conversion of a Solid Bleached Sulfate (SBS) machine to swing capacity for CUK (Coated Unbleached Kraft), or unbleached paperboard. The estimated capital required for this project is substantial: approximately $50 million. This isn't just a capital expense; it's a strategic technology move that creates flexibility.

The core technology play here is agility. By retrofitting an existing SBS machine, Clearwater Paper can toggle production between high-end SBS and the more industrial CUK based on market demand. The estimated project return is compelling, sitting at more than 20% at current market prices. However, the final investment decision was put on hold in the latter half of 2025 as the company prioritized balance sheet strength amidst industry oversupply. It would take more than 18 months to complete the project, so the cash flow benefits are not immediate.

Developing compostable and poly-free coatings for new product lines

The market is demanding sustainable packaging, and technology is the only way to deliver it without sacrificing performance. Clearwater Paper is actively using new coating technology to address the shift away from traditional plastic (polyethylene) coatings. This is a critical move to capture the growing Quick Service Restaurant (QSR) and Consumer Packaged Goods (CPG) segments that are focused on sustainability.

The company's Candesce® paperboard achieved BPI (Biodegradable Products Institute) certification at both the Lewiston and Cypress Bend mills in 2025. This certification is a key technological enabler, confirming the paperboard can safely break down in a commercial composting facility. Plus, the long-term goal is clear: 75% of their Solid Bleached Sulfate (SBS) products will be recyclable or compostable by 2030. They are also continuing to develop poly-free coatings and barriers, which is the next technological frontier for truly circular packaging.

Digitalization continues the structural decline in graphic paper demand

While Clearwater Paper has pivoted away from the tissue business, the broader technological pressure of digitalization still affects the paperboard market through shifts in overall paper demand. The structural decline in graphic paper (magazines, brochures, etc.) is well-known, but the paperboard segment is dealing with its own technological headwinds-namely, new industry capacity coming online faster than demand is growing.

This technological overcapacity means industry Solid Bleached Sulfate (SBS) operating rates were only 83% in the second quarter of 2025, down from 84% a year prior. By year-end 2025, new SBS capacity is expected to lower utilization to the low 80% range, with supply exceeding demand by more than 500,000 tons. This is defintely a technology-driven supply shock that creates a challenging pricing environment for all producers, even those focused on packaging.

Investing in operational efficiency via major maintenance outage improvements

Operational technology and maintenance are often overlooked, but they are the bedrock of cost control. Clearwater Paper is making significant capital investments to boost efficiency and predictability, targeting a reduction in unplanned downtime. For the full year 2025, total Capital Expenditures (CapEx) are projected to be between $80 million and $90 million.

A large portion of this is directed at major maintenance outages, which are being strategically shifted to an annual cadence to be smaller and more predictable. Here's the quick math on the direct costs for 2025 outages:

• Total direct major maintenance costs for 2025 are projected at $45 million to $50 million.
• The Cypress Bend outage cost approximately $9 million.
• The planned Lewiston outage in Q3 2025 had a significant Adjusted EBITDA cost impact of $23 million to $25 million.

The company's cost reduction initiatives, which include operational improvements, are tracking to deliver approximately $50 million in annual savings for the year, exceeding the original target of $30 million to $40 million. That's a clear return on the investment in better operational technology and processes.

2025 Technological & Operational Metrics	Value/Range	Strategic Context
Full-Year Capital Expenditures (CapEx)	$80 million to $90 million	Funding for maintenance and strategic growth projects.
CUK Swing Capacity Investment (Potential)	$50 million	Projected cost for machine retrofit; decision on hold in late 2025.
Estimated CUK Project Return	>20%	High potential return, but delayed due to market conditions.
Total Direct Major Maintenance Costs (2025)	$45 million to $50 million	Investment in asset reliability and planned, predictable downtime.
Target Annual Fixed Cost Reduction (Run Rate)	~$50 million	Efficiency gain from operational improvements and workforce optimization.
SBS Industry Operating Rate (Q2 2025)	83%	Reflects technological overcapacity in the core paperboard market.

Your next step should be to model the impact of the $50 million CUK investment on your long-term valuation, assuming a delayed start in early 2026, but still using the >20% return estimate. Finance: update the capital allocation model with a CUK project start date of Q1 2026.

Clearwater Paper Corporation (CLW) - PESTLE Analysis: Legal factors

Executive compensation is now linked to specific sustainability (ESG) targets.

You need to know that the legal and governance landscape is mandating a direct link between executive pay and Environmental, Social, and Governance (ESG) performance, moving these from soft goals to hard, compensable metrics. Clearwater Paper Corporation has formally linked executive compensation to strategic objectives that include sustainability factors, a critical governance signal to shareholders and regulators.

This integration ensures that management is financially incentivized to meet non-financial, yet material, risks. For example, the company has a validated Science Based Targets initiative (SBTi) goal to reduce absolute Scope 1 and 2 Greenhouse Gas (GHG) emissions by 29.1% by 2030 from a 2021 baseline. That's a huge commitment, and you can bet a portion of the executive bonus pool is tied to hitting the near-term milestones for that reduction.

The Compensation Committee also reviews human capital management, which includes safety performance. The company's achievement of a 27% risk reduction for identified safety hazards shows this focus is translating into results. This is defintely a trend to watch, as investors are increasingly scrutinizing the rigor of these ESG metrics.

Adherence to SEC reporting and full disclosure of risk factors in filings.

As a publicly traded company, Clearwater Paper Corporation's adherence to Securities and Exchange Commission (SEC) rules is paramount, especially regarding full disclosure of risk factors, which directly impacts investor confidence and valuation. The recent filings for the 2025 fiscal year highlight several material legal and financial risks you must consider.

In the first nine months of 2025, the company reported a net loss from continuing operations of $56 million, driven in part by a significant non-cash goodwill impairment charge of $48.0 million in the third quarter of 2025. This impairment, which reduced the balance sheet goodwill to zero, is a clear signal of market-related legal risk impacting asset valuation. Also, the company incurred $6.1 million in cost reduction plan-related charges year-to-date 2025, primarily severance, which requires transparent reporting as a restructuring cost.

The company's SEC filings explicitly list several forward-looking legal risks, including:

• Risks and costs associated with new or ongoing environmental litigation, specifically mentioning PFAS-related claims.
• The ability to service debt obligations and restrictions imposed by debt covenants and terms.
• Changes in laws, regulations, or industry standards affecting the business.

Here's the quick math: A $48.0 million non-cash impairment charge on the books in Q3 2025 is a legal disclosure that forces a re-evaluation of the paperboard division's long-term value, even if it's non-cash.

Compliance with complex environmental, health, and safety (EHS) regulations.

The pulp and paper industry operates under some of the most stringent Environmental, Health, and Safety (EHS) regulations in the U.S., covering everything from air emissions and wastewater discharge to chemical handling. Non-compliance is not just a fine; it's a material operational risk that can halt production.

A major legal risk that emerged in 2025 is the newly filed environmental lawsuit in Georgia related to Per- and polyfluoroalkyl substances (PFAS). This is a material legal exposure, especially considering the acquisition of the Augusta, Georgia, paperboard facility in May 2024 for $708.2 million. The liability for legacy environmental issues at acquired facilities is a significant legal risk that can quickly erode deal value.

On the EHS compliance side, the company has made progress in safety, achieving a 75% reduction in significant injuries from 2023, with only a single significant injury incident in 2024. However, the regulatory pressure on water and climate remains intense. The table below summarizes key quantified EHS/Legal compliance targets:

EHS/Legal Metric	Target/Risk Detail (2025 Context)	Impact/Status
GHG Emissions Reduction (Scope 1 & 2)	Reduce by 29.1% by 2030 (2021 baseline)	SBTi validated; requires significant capital investment in operational efficiency to meet legal/regulatory mandates.
Water Intake Intensity	Reduce by 10% from 2024 baseline by 2030	New goal for 2025; critical for operating permits in water-stressed regions.
Safety Hazard Risk Reduction	Achieved 27% risk reduction for identified safety hazards	Demonstrates compliance focus on occupational safety, mitigating potential OSHA fines and liability.
PFAS Litigation	Newly filed environmental lawsuit in Georgia	Represents a material, unquantified legal liability and expenditure risk in the near-term.

The biggest legal risk is the unknown cost of the PFAS lawsuit, plus still having to meet the 29.1% GHG reduction target. Finance: Track all legal defense costs for the Georgia PFAS lawsuit monthly.

Clearwater Paper Corporation (CLW) - PESTLE Analysis: Environmental factors

You're looking at the environmental factors (E in PESTLE) for Clearwater Paper Corporation, and the trend is clear: regulatory pressure and stakeholder demands are translating directly into significant capital allocation. This isn't just about compliance anymore; it's about risk mitigation and maintaining a social license to operate, especially post-2024's major business restructuring.

Clearwater Paper has locked in on verifiable, science-based targets (SBTs) and is putting real money toward meeting them, but the shift of focus to paperboard, including the new Augusta, Georgia facility, also shifts their specific environmental risk profile. This is defintely a high-stakes area for the company's long-term enterprise value.

Committed to a 29.1% reduction in Scope 1 and 2 GHG emissions by 2030.

Clearwater Paper Corporation has a validated, science-based target to reduce its absolute Scope 1 (direct) and Scope 2 (indirect from purchased energy) greenhouse gas (GHG) emissions by at least 29.1% by 2030, using a 2021 baseline. To be fair, achieving this goal got more complex in 2024. The divestiture of the tissue business and the acquisition of the Augusta, Georgia paperboard mill meant a significant change in their emissions profile, effectively resetting the path to that 2030 target.

Here's the quick math on the starting line: in 2023, the company had only achieved a 1.2% reduction in Scope 1 and 2 GHG emissions from that 2021 baseline. The heavy lifting is still ahead, and the strategy roadmap to meet these targets focuses on the largest-emitting facilities in Idaho, Arkansas, and North Carolina.

Achieved Water Stewardship Verified status in 2024 (WAVE Program).

Water is a critical input and a major risk for any pulp and paper operation, so the 2024 achievement of Water Stewardship Verified status through The Water Council's WAVE Program is a solid step. This verification means Clearwater Paper completed a comprehensive, enterprise-wide assessment of its water usage, impacts, and risks across all its manufacturing sites.

The immediate, actionable result of this process is a new, formal goal to reduce water intake intensity across all manufacturing sites by 10% from a 2024 baseline by 2030. This target is crucial for sites located in water-stressed regions, improving operational resiliency and reducing the risk of community conflict over shared resources.

Completed a $45 million capital project for a new emissions control device.

Capital investment in environmental controls is a non-negotiable part of the paperboard business. Clearwater Paper committed to a major capital project, investing approximately $45 million for a new emissions control device. This type of investment is typically aimed at reducing regulated air pollutants like sulfur dioxide (SO2) or particulate matter, ensuring long-term compliance and minimizing the risk of costly regulatory fines and operational shutdowns.

For the full fiscal year 2025, the company has forecasted total capital expenditures between $80 million and $90 million, with $70 million to $80 million allocated to annual maintenance spending. This means the $45 million emissions control project represents a significant portion of their discretionary capital spending, signaling a clear priority for environmental compliance and air quality management over the next few years.

2025 Environmental Capital and Financial Context

Metric	Value (FY 2025 Projections)	Significance
Total Capital Expenditures (CAPEX)	$80M - $90M	Total budget for maintenance and strategic projects.
Annual Maintenance CAPEX	$70M - $80M	Baseline cost to keep current operations running.
Emissions Control Project Value	$45M	Major discretionary investment for air quality compliance and GHG reduction roadmap.
Water Intake Reduction Goal	10% by 2030 (2024 baseline)	New goal following WAVE Verification to improve water resiliency.

Risk of operational disruption from severe weather events like hurricanes.

The company's strategic pivot to focus solely on paperboard has geographically concentrated its assets, particularly with the acquisition of the Augusta, Georgia facility in May 2024. This location, and others in the Southeast, are inherently more exposed to severe weather events, especially Atlantic hurricanes.

The risk isn't theoretical. In 2024, Clearwater Paper had to actively engage in community support and donations in the face of devastating weather events such as Hurricane Helene. A major storm hitting a key facility could cause:

• Extended production shutdowns.
• Damage to physical assets, requiring costly repairs.
• Disruption to supply chain and logistics.
• Increased insurance premiums and deductibles.

This is a clear, near-term operational risk that needs to be factored into inventory planning and business continuity efforts, especially during the peak hurricane season.