|G4||GENERAL STANDARD DISCLOSURE||LINK||EXTERNAL ASSURANCE|
|STRATEGY AND ANALYSIS|
|G4-1||Executive Leadership Statement||http://sustainability.kapstonepaper.com/2016/#shareholder_letter||No|
|G4-3||Name of reporting organization||KapStone Paper and Packaging||No|
|G4-5||Headquarters location||1101 Skokie Blvd., Suite
300 Northbrook, IL 60062-4124
|G4-6||Countries of operation||United States||No|
|G4-7||Legal form||KapStone Paper and Packaging Corporation was formed in Delaware as a special purpose acquisition corporation on April 15, 2005 for the purpose of effecting a merger, capital stock exchange, asset acquisition or other similar business combination with an unidentified operating business in the paper, packaging, forest products, and related industries.||No|
|G4-8||Markets served||We serve the containerboard, corrugated products, and specialty paper markets. We view the specialty paper market as including kraft paper, saturating kraft, and folding carton board. We also have a distribution arm to facilitate packaging, fulfillment and distribution.||No|
|G4-9||Report the scale of the organization, including: Total number of employees; Total number of operations; Net Sales (for private sector organizations) or net revenues (for public sector organizations); Total capitalization broken down in terms of debt and equity (for private sector organization); Quantity of products or services provided||In 2016, consolidated net sales grew 10 percent to a record $3.077 billion. As of December 31, 2016, we had approximately 6,400 employees.||No|
|G4-10||a. Report the total number of employees by contract and gender. b. Report the total number of permanent employees by employment type and gender. c. Report the total workforce by employees and supervised workers and by gender. d. Report the total workforce by region and gender. e. Report whether a substantial portion of the organization’s work is performed by workers who are legally recognized as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors. f. Report any significant variations in employment numbers (such as seasonal variations in employment in the tourism or agricultural industries).||
Managers Male: 627
Non-Managers Male: 4,615
The majority of our employees are directly employed by KapStone. There is no significant variation in employee numbers.
|G4-11||Report the percentage of total employees covered by collective bargaining agreements.||Approximately 38% of employees are covered by collective bargaining agreements.||No|
|G4-12||Describe the organization’s supply chain.||We engage a procurement process that supports competitive sourcing and allows us to adjust our approach based on supply market dynamics and market competitiveness.
In 2016, we had approximately 6,000 suppliers ranging in size from large corporations to small, independent proprietors. Ninety percent of our suppliers are U.S.-based companies and most are located regionally near our manufacturing facilities. Our suppliers include manufacturers, original equipment manufacturers (OEM), distributors, resellers, publishers, wholesalers, licensees, lessors, consultants, contractors and agencies. For the reporting period, there were no significant changes in our supply chain process.
|G4-13||Report any significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain.||Victory Packaging (VP) was acquired on 06/01/2015, so KapStone Financial reporting for 2016FY includes the VP distribution business. KapStone acquired Central Florida Box (CFB) on 07/01/2016.||No|
|G4-14||Report whether and how the precautionary approach or principle is addressed by the organization.||On Supplier code of conduct, KapStone has a publically available link on the Supplier page of KapStone’s web site: http://www.kapstonepaper.com/suppliers/||No|
|G4-15||List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses.||Economic: Rules mandated by SEC and NYSE
Environmental: See listing provided in the Sustainability section of our website at www.kapstonepaper.com.
|G4-16||List memberships of associations (such as industry associations) and national or international advocacy organizations in which the organization: Holds a position on the governance body; Participates in projects or committees; Provides substantive funding beyond routine membership dues; Views membership as strategic. This refers primarily to memberships maintained at the organizational level.||We are members and hold key positions in several organizations and institutions in the forestry and paper industries, including:
See Table 1 below for a selection of key current positions.
|TABLE 1: G4-16 LIST OF PROFESSIONAL ORGANIZATIONS AND ASSOCIATIONS MEMBERSHIPS WITH KEY LEADERSHIP ROLES|
|Matt Kaplan, Chief Executive Office and President, KapStone Kraft Paper Corporation||
|Randy J. Nebel, Executive VP of Integrated Packaging, KapStone Kraft Paper Corporation||
|Bill Kessinger, Vice President of KapStone Mill System|
|Patrick Ortiz, Vice President of KapStone Corrugated Container System||
|G4||GENERAL STANDARD DISCLOSURE||LINK||EXTERNAL ASSURANCE|
|G4-17||a. List all entities included in the organization’s consolidated financial statements or equivalent documents.
b. Report whether any entity included in the organization’s consolidated financial statements or equivalent documents is not covered by the report.
|See Form 10-K on investor relations section at www.kapstonepaper.com; Data in this report includes all KapStone Paper operations.||No|
|G4-18||a. Explain the process for defining the report content and the Aspect Boundaries.
b. Explain how the organization has implemented the Reporting Principles for Defining Reporting Content.
|Our 2016 CSR report was prepared under the supervision of our Sustainability Team covering Environmental, Health & Safety, Operations, Sales & Marketing, and Procurement groups. KapStone uses both custom and GRI-based disclosures to communicate sustainability-related data to our key stakeholders. Additional information on our sustainability efforts can be reviewed at www.kapstonepaper.com/sustainability.
KapStone uses a company-wide general management approach to continuously monitor all internal and external material aspects of the business.
Unless otherwise noted, data used in this report is from our wholly-owned U.S. mill operations and business units.
|G4-19||List all the material Aspects identified in the process for defining report content.||See Table 2 below.||No|
|IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES|
|G4-20||a. For each material Aspect, report the Aspect Boundary within the organization, as follows: Report whether the Aspect is material within the organization. If the Aspect is not material for all entities within the organization (as described in G4-17), select one of the following two approaches and report either: The list of entities or groups of entities included in G4-17 for which the Aspect is not material or the list of entities or groups of entities included in G4-17 for which the Aspect is material: Report any specific limitation regarding the Aspect Boundary within the organization.||See Table 2 below.||No|
|G4-21||a. For each material Aspect, report the Aspect Boundary outside the organization, as follows: Report whether the Aspect is material outside the organization. If the Aspect is material outside the organization, identify the entities, groups of entities or elements for which the Aspect is material. In addition, describe the geographical location where the Aspect is material for the entities identified. Report any significant limitation regarding the Aspect Boundary outside the organization.||See Table 2 below.||No|
|TABLE 2: G4 19-21 LIST OF IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES|
|G4 MATERIAL ASPECT||G4 CATEGORY||MATERIAL WITHIN THE ORGANIZATION||MATERIAL EXTERNAL TO THE ORGANIZATION||RELEVANCE OUTSIDE THE ORGANIZATION|
|Economic Performance||Economic||X||X||This is important to the individuals and communities surrounding our operations as our financial success creates positive value contribution wherever we operate.|
|Water||Environmental||X||X||Reducing our global footprint through conservation is an important element addressing climate change. These Aspects are relevant in the areas where we maintain operations as part of our commitment to environmental stewardship.|
|Effluents and Waste||Environmental||X||X|
|Occupational Health and Safety||Labor Practices||X|
|Forced or Compulsory Labor||Human Rights||X|
|G4||GENERAL STANDARD DISCLOSURE||LINK||EXTERNAL ASSURANCE|
|G4-22||Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements.||Safety results were restated for years 2013-2015 due to an updated software tool using Industry Safe Information.||No|
|G4-23||Report significant changes from previous reporting periods in the Scope and Aspect Boundaries.||In addition to the baseline year of 2010, this report covers data for fiscal year 2016 (January 1–December 31, 2016). Our 2016 report offers an update to the sustainability goals, aspects and indicators outlined in the previous reporting period.||No|
|G4-24||Provide a list of stakeholder groups engaged by the organization.||Customers, employees, suppliers, industry associations, communities where we operate||No|
|G4-25||Report the basis for identification and selection of stakeholders with whom to engage.||KapStone 2014 Sustainability Report||No|
|G4-26||Report the organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process.||KapStone 2014 Sustainability Report||No|
|G4-27||Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns.||KapStone 2014 Sustainability Report||No|
|G4-28||Reporting period (such as fiscal or calendar year) for information provided.||Fiscal year 2016||No|
|G4-29||Date of most recent previous report (if any).||Fiscal year 2015||No|
|G4-30||Reporting cycle (such as annual, biennial).||Annual||No|
|G4-31||Provide the contact point for questions regarding the report or its content.||John Benson
Director of Marketing
|G4-32||a. Report the ‘in accordance’ option the organization has chosen. b. Report the GRI Content Index for chosen option. c. Report the reference to the External Assurance Report, if the report has been externally assured.||Our 2016 CSR report is organized in accordance with Global Reporting Initiative (GRI’s) G4 reporting framework. We self-declare that it meets the “Core” application requirements||No|
|G4-33||a. Report the organization’s policy and current practice with regard to seeking external assurance for the report. b. If not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided. c. Report the relationship between the organization and the assurance providers. d. Report whether the highest governance body or senior executives are involved in seeking assurance for the organization’s sustainability report.||The report has not been externally assured.||No|
|G4-34||Report the governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts.||See Governance section at www.kapstonepaper.com.||No|
|ETHICS AND INTEGRITY|
|G4-56||Describe the organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics.||Principles and Values found in the About KapStone section at www.kapstonepaper.com; Codes of Ethics and Conduct also found at www.kapstonepaper.com.||No|
|MATERIAL ASPECTS AS LISTED IN G4-19||DMA AND INDICATORS||INDICATOR DETAIL||LINK/PDF PAGE NUMBER||OMISSIONS||EXTERNAL ASSURANCE|
|Economic Performance||G4-EC1||Direct economic value||See Form 10-K on investor relations section of our website: www.kapstonepaper.com.||No|
|G4-EC4||Government Financial Assistance||Company received no government assistance during the reporting period.||No|
|Procurement Practices||G4-EC9||Local supplier spending||Ninety percent of our suppliers are U.S.-based companies and most are located regionally near our manufacturing facilities||No|
|Materials||G4-EN2||Percentage of recycled input materials||Pre-consumer fiber: 11%
Post-consumer fiber: 21%
|Energy||G4-EN3||Energy consumption||Direct energy (MMbtu/ton production) in 2016 was 10.22, compared to our 2020 goal of 9.84. We have reduced energy consumption annually since 2010 and reached a 6.5 percent reduction in 2016.||No|
|Water||G4-EN8||Total water withdrawal by source||In 2016, we reduced water usage by 3.9 percent from our 2010 baseline year. We continue to monitor water usage and have developed a strategic plan to meet our 2020 goal of a 10 percent reduction.||No|
|Biodiversity||G4-EN11||Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas||KapStone is not a forest landowner, but KapStone donated 2.45 million seedlings for forest regeneration during the 2015-2016 planting season||No|
|Emissions||G4-EN15||Direct Greenhouse Gas Emissions (Scope 1)||As established in our 2010 baseline year, our target is to reduce greenhouse gas (GHG) emissions by 15 percent by 2020. In 2016, reduction projects produced a 13 percent reduction since our baseline year. We are not using GHG offsets to meet targets||Scope 1 and Scope 2 are reported as a combined number.||No|
|G4-EN16||Energy Indirect Greenhouse Gas Emissions (Scope 2)||Scope 1 and Scope 2 are reported as a combined number.||Reporting is in metric tons.||No|
|G4-EN21||NOX, SOX, and other significant air emissions||See Table 3 below.||Data includes only four major mills.||No|
|Effluents and Waste||G4-EN24||Total number and volume of significant spills||No significant spills during the reporting period.||No|
|Compliance||G4-EN29||Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations||There have been no fines or sanctions for non-compliance with environmental laws and regulations.||No|
|TABLE 3: G4-EN21 Air Emissions|
|Mill WL Average|
|Net Production of Product (ADT tons/year)||2,795,836||2,734,641|
|Total Criteria Pollutant (lbs/ADT)||7.02||8.14|
|SUBCATEGORY: LABOR PRACTICES AND DECENT WORK|
|Employment||G4-LA2||Benefits provided to full-time employees that are not provided to temporary or part-time employees by significant location or operation||We provide our employees with access to quality healthcare and wellness programs, and many of our facilities partner with local healthcare institutions to offer health screenings, flu shots, and other programs for employees and their families.
We also offer a variety of medical, dental and vision benefits for employees and eligible dependents, as well as a fitness discount program and an Employee Assistance Program. Additionally, we offer two reimbursement accounts and a health savings account that give employees the opportunity to use pre-tax pay to fund out-of-pocket health and childcare expenses. We also provide disability benefits, life insurance, and supplemental medical insurance. In addition to health and welfare benefits, we offer a 401(k) retirement plan and an employee stock purchase program.
|Not specifically stated are benefits offered union employees, which are similar to those offered full-time employees||No|
|Occupational Health and Safety||G4-LA6||Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and gender||See Table 4 below.||Omitted data by gender. Reported data for major divisions, not regionally.||No|
|TABLE 4: G4-LA6 OCCUPATIONAL HEALTH & SAFETY|
|Location||12/31/2016||Date of Last Incident||Incidents Year-to-Date||Rates Year-to-Date||Hours Worked Year-to-Date|
|Lost Time Cases||12/08/2016||47||0.95|
|SUBCATEGORY: HUMAN RIGHTS|
|Forced or Compulsory Labor||G4-HR6||Operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to elimination of all forms of forced or compulsory labor||See California Transparency Supply Chain Act found on the Sustainability section of our website at www.kapstonepaper.com.||No|
|Anti-Corruption||G4-SO4||Communication and training on anti-corruption policies and procedures||Link to website at:||No|