Clearwater Paper Corporation (CLW): Analyse du Pestle [Jan-2025 MISE À JOUR]

Dans le paysage dynamique de la fabrication de papier et d'emballage, Clearwater Paper Corporation (CLW) se dresse à une intersection critique de défis mondiaux et de solutions innovantes. Cette analyse complète du pilon dévoile les forces externes multiformes qui façonnent la trajectoire stratégique de l'entreprise, révélant comment des facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux complexes transforment l'industrie papier traditionnelle. De la gestion durable des forêts aux innovations technologiques de pointe, le parcours de Clearwater Paper reflète la danse complexe de la résilience et de l'adaptation des entreprises sur un marché mondial en constante évolution.

Clearwater Paper Corporation (CLW) - Analyse du pilon: facteurs politiques

Impact potentiel des politiques commerciales américaines sur la fabrication du papier et des emballages

En 2024, les politiques commerciales américaines ont un impact direct sur les opérations de fabrication de Clearwater Paper Corporation. Les taux de tarif actuels sur les produits en papier importés sont de 6,8% pour le papier non couché et 8,2% pour les matériaux d'emballage.

Indicateur de politique commerciale	Taux actuel
Importer un tarif sur du papier non revêtu	6.8%
Importer un tarif sur les matériaux d'emballage	8.2%
Coûts annuels de conformité commerciale	1,3 million de dollars

Règlements gouvernementaux affectant la gestion forestière et l'approvisionnement en bois

Les réglementations fédérales influencent considérablement les stratégies d'approvisionnement en bois de Clearwater Paper.

• Exigences de certification Forest Stewardship Council (FSC)
• Normes de conformité Initiative forestière durable (SFI)
• Agence de protection de l'environnement (EPA) Lignes directrices sur la récolte du bois

Métrique de la conformité réglementaire	2024 données
Coûts annuels de conformité de la gestion forestière	2,7 millions de dollars
Pourcentage de l'approvisionnement en bois certifié FSC	62%

Changements potentiels dans la législation sur la protection de l'environnement

La loi sur la réduction de l'inflation de 2022 continue d'influencer les réglementations environnementales pour les industries manufacturières.

• Exigences de déclaration des émissions de carbone
• Mandats d'intégration des énergies renouvelables
• Règlements sur la réduction des déchets et le recyclage

Métrique de la conformité environnementale	2024 données
Coûts de signalement des émissions de carbone annuelles	$840,000
Investissement projeté dans les technologies vertes	5,6 millions de dollars

Changements potentiels dans les subventions fédérales pour l'industrie des produits forestiers

Le soutien fédéral actuel à l'industrie des produits forestiers comprend des incitations fiscales ciblées et des subventions de recherche.

Catégorie de subvention	2024 Montant
Crédits d'impôt à la recherche et au développement	1,2 million de dollars
Incitations à la production d'énergie renouvelable	$950,000
Programmes de subventions forestières durables	1,5 million de dollars

Clearwater Paper Corporation (CLW) - Analyse du pilon: facteurs économiques

Volatilité des prix des produits de la pulpe et du papier

Depuis le quatrième trimestre 2023, Clearwater Paper Corporation a connu des fluctuations importantes des prix des produits de base. Les prix des pâtes variaient de 780 $ à 920 $ par tonne métrique. Le prix des produits de base du papier a montré la tendance suivante:

Type de papier	Gamme de prix (USD / tonne)	2023 Volatilité
Panneau de conteneur	$650 - $750	14.3%
Papier de soie	$1,100 - $1,250	12.7%
Papier d'emballage	$700 - $820	16.2%

Fluctuant de la demande des marchés de produits d'emballage et de papier

L'analyse de la demande du marché pour Clearwater Paper Corporation révèle:

Segment de produit	2023 Volume de demande	Changement d'une année à l'autre
Produits d'emballage	1,2 million de tonnes	+3.5%
Tissus	850 000 tonnes	-1.8%
Produits de pâte	620 000 tonnes	+2.1%

Défis économiques potentiels de l'inflation et des perturbations de la chaîne d'approvisionnement

Impact de l'inflation sur Clearwater Paper Corporation:

• Indice des prix de la production (PPI) pour les produits papier: 5,7%
• Augmentation du coût des matières premières: 6,2%
• Frais de transport et de logistique: 4,9%

Impact des taux d'intérêt sur les stratégies d'emprunt et d'expansion des entreprises

Métriques financières pour Clearwater Paper Corporation:

Indicateur financier	Valeur 2023	Changement par rapport à l'année précédente
Taux d'emprunt des entreprises	7.25%	+1,5 points de pourcentage
Dette à long terme	324 millions de dollars	+8.3%
Dépenses en capital	87,5 millions de dollars	+5.6%

Clearwater Paper Corporation (CLW) - Analyse du pilon: facteurs sociaux

Changer les préférences des consommateurs envers les solutions d'emballage durables

Selon la Sururable Packaging Coalition, 74% des consommateurs sont prêts à payer plus pour l'emballage durable en 2023. La gamme de produits de Clearwater Paper reflète cette tendance avec une segmentation spécifique du marché:

Catégorie de produits	Pourcentage d'emballage durable	Taux de croissance du marché
Produits en papier recyclé	42%	6,3% par an
Emballage respectueux de l'environnement	35%	8,1% par an

Changements démographiques de la main-d'œuvre dans les secteurs de la fabrication

Les données du Bureau des statistiques du travail américain montrent la démographie de la main-d'œuvre de fabrication pour 2023:

Groupe d'âge	Pourcentage de fabrication	Tenure moyenne
18-34 ans	27%	3,2 ans
35 à 54 ans	45%	7,6 ans
Plus de 55 ans	28%	12.4 ans

Conscience environnementale croissante affectant la conception des produits

Les déclarations de produits environnementaux (EPD) montrent les mesures d'impact environnemental de Clearwater Paper:

• Réduction de l'empreinte carbone: 22% depuis 2020
• Réduction de l'utilisation de l'eau: 18% des processus de fabrication
• Utilisation d'énergie renouvelable: 37% de la consommation totale d'énergie

Demande croissante de produits papier respectueux de l'environnement

Données d'études de marché sur la demande de produits papier respectueuse de l'environnement:

Type de produit	Taille du marché 2023	Croissance projetée d'ici 2027
Papier d'impression recyclé	4,3 milliards de dollars	7,5% CAGR
Papier d'emballage durable	6,7 milliards de dollars	CAGR 9,2%

Clearwater Paper Corporation (CLW) - Analyse du pilon: facteurs technologiques

Automatisation et transformation numérique dans les processus de fabrication

En 2023, Clearwater Paper a investi 12,3 millions de dollars dans les technologies de l'automatisation de la fabrication. La société a déclaré une réduction de 17,5% des coûts de travail de production grâce à des initiatives de transformation numérique. Les lignes de production automatisées ont augmenté l'efficacité opérationnelle de 22,4% dans leurs installations de fabrication.

Catégorie d'investissement technologique	Montant d'investissement ($)	Amélioration de l'efficacité (%)
Automatisation de processus robotique	5,6 millions	15.2
Systèmes de fabrication numérique	4,7 millions	18.3
Technologies de contrôle des processus	2 millions	12.9

Investissement dans des technologies avancées de recyclage et de production durable

Le papier Clearwater a alloué 8,9 millions de dollars aux technologies de production durables en 2023. Leur efficacité de recyclage est passée à 76,5%, avec une réduction de 32% de la consommation d'eau par unité de production.

Technologie de durabilité	Investissement ($)	Impact environnemental
Systèmes de recyclage avancés	4,2 millions	Taux de récupération des matériaux de 76,5%
Technologies de conservation de l'eau	2,7 millions	32% de réduction de la consommation d'eau
Équipement économe en énergie	2 millions	18% de réduction de la consommation d'énergie

Mise en œuvre de l'IA et de l'apprentissage automatique dans la gestion de la chaîne d'approvisionnement

La société a déployé des solutions de gestion de la chaîne d'approvisionnement en AI avec un investissement de 6,5 millions de dollars. Les algorithmes d'apprentissage automatique ont amélioré la précision des stocks de 28,3% et réduit les coûts logistiques de 16,7%.

Application technologique AI	Investissement ($)	Amélioration des performances (%)
Gestion des stocks prédictifs	3,2 millions	28.3
Optimisation logistique	2,1 millions	16.7
Prévision de la demande	1,2 million	22.5

Développement de solutions d'emballage innovantes à l'aide de matériaux avancés

Clearwater Paper a investi 5,4 millions de dollars dans le développement de technologies d'emballage avancées. De nouvelles innovations matérielles ont abouti à des emballages plus légers de 25,6% avec des mesures de durabilité améliorées.

Innovation d'emballage	Investissement en recherche ($)	Performance matérielle
Matériaux d'emballage biodégradables	2,6 millions	25,6% de réduction du poids
Matériaux composites avancés	1,8 million	40% de durabilité accrue
Conception d'emballage durable	1 million	60% de contenu recyclé

Clearwater Paper Corporation (CLW) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations sur la protection de l'environnement

Clearwater Paper Corporation a engagé 3,2 millions de dollars de coûts de conformité environnementale en 2022. Des amendes réglementaires de l'EPA liées aux émissions aériennes et d'eau ont totalisé 127 500 $ au cours du même exercice.

Catégorie de réglementation	Dépenses de conformité	Risque de pénalité réglementaire
COMPOSITION DE LA COLLE AIR	1,4 million de dollars	Moyen
Règlements sur les débits de l'eau	1,1 million de dollars	Faible
Gestion des déchets	$700,000	Faible

Risques potentiels en matière de litige dans la fabrication de produits forestiers

Les litiges juridiques en cours en 2023 ont représenté une exposition à la responsabilité potentielle de 5,7 millions de dollars. Les réserves de litige actuelles s'élèvent à 2,3 millions de dollars.

Type de litige	Responsabilité estimée	État actuel
Réclamations de dommages environnementaux	2,1 millions de dollars	En attente
Contests contractuels de la chaîne d'approvisionnement	1,6 million de dollars	Négociation

Protection de la propriété intellectuelle pour les technologies d'emballage innovantes

Clearwater Paper détient 37 brevets actifs avec un investissement total de 4,5 millions de dollars dans le développement de la propriété intellectuelle en 2022.

Catégorie de brevet	Nombre de brevets	Investissement en R&D
Technologie d'emballage	22	2,7 millions de dollars
Processus de fabrication	15	1,8 million de dollars

Adhésion aux normes de sécurité du travail et du travail

Le taux d'incident enregistrable de l'OSHA était de 2,6 pour 100 travailleurs en 2022. Les dépenses de formation en conformité juridique ont atteint 612 000 $.

Métrique de sécurité	Valeur	Investissement de conformité
Incidents enregistrables de l'OSHA	2,6 pour 100 travailleurs	$612,000
Réclamations d'indemnisation des travailleurs	47 réclamations	1,1 million de dollars

Clearwater Paper Corporation (CLW) - Analyse du pilon: facteurs environnementaux

Engagement envers les pratiques de gestion des forêts durables

Clearwater Paper Corporation s'approvisionne à 100% de sa fibre de bois de Programmes forestiers certifiés durables. En 2024, la société maintient la certification Forest Stewardship Council (FSC) pour 78% de son achat de fibres.

Métrique de certification forestière	2024 données
Source des fibres certifiées FSC	78%
Volume annuel de replantation d'arbre	1,2 million d'arbres
Taux de régénération forestière	103%

Réduction de l'empreinte carbone dans les processus de fabrication

Clearwater Paper a investi 42,3 millions de dollars dans les technologies d'efficacité énergétique, réduisant les émissions de gaz à effet de serre de 22% depuis 2019.

Métrique des émissions de carbone	2024 données
Réduction totale des émissions de carbone	22%
Investissement dans les technologies vertes	42,3 millions de dollars
Consommation d'énergie renouvelable	37%

Accent croissant sur les gammes de produits recyclables et biodégradables

En 2024, Clearwater Paper a élargi son portefeuille de produits écologiques, avec 65% des gammes de produits contenant désormais des matériaux recyclables.

Métrique du produit durable	2024 données
Gammes de produits recyclables	65%
Pourcentage de produit biodégradable	48%
Contenu recyclé dans les produits	35%

Mise en œuvre des principes de l'économie circulaire en production

Clearwater Paper a développé une stratégie complète de l'économie circulaire, réduisant les déchets de 31% et mettant en œuvre des processus de fabrication en boucle fermée dans 4 installations de production primaires.

Métrique de l'économie circulaire	2024 données
Réduction des déchets	31%
Installations avec fabrication en boucle fermée	4
Taux de recyclage de l'eau	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.