INTERNATIONAL PAPER CO /NEW/

The Company recognizes the impact of climate change on people and our planet. To manage climate-related risks,

we are taking actions throughout our value chain to help advance a low-carbon economy. We aligned our annual

sustainability reporting with the recommendations of the International Financial Reporting Standards S2 Climate-

related Disclosures in the 2024 reporting cycle. As part of our climate reports, we identify and report on climate-

related opportunities. We identify and evaluate physical and transition climate-related risks through our enterprise

risk management process.

The Company's 2024 Climate Report (which, prior to 2024, was referred to as the Company's Task Force on

Climate-related Financial Disclosures Report or "TCFD Report") provides climate related disclosures as of

December 31, 2024, consistent with the four core recommendations and 11 recommended disclosures set out in the

June 2017 Final Report published by the TCFD (the "Final 2017 TCFD Report)". Our 2025 Climate Report, which

will be available later in 2026, will provide climate related disclosures as of December 31, 2025, consistent with the

four core recommendations and 11 recommended disclosures set out in the Final 2017 TCFD Report. For ease of

review and given the detailed and technical content of these disclosures, the Climate Report is considered to be the

most appropriate location for the disclosures. This statement is provided in accordance with UKLR 14.3.24R. Our

corporate sustainability reports, including our 2024 and 2025 Climate Report, are or will be available at

www.internationalpaper.com/reports.

We transform renewable resources into recyclable products that people depend on every day. We aim to produce

low carbon products that have a positive impact on nature. To this end, we source renewable fiber from responsibly

managed forests and recycled raw materials. We then use a circular manufacturing process that makes the most of

resources and byproducts, while reducing the environmental impacts of our operations. At the end of use, the

majority of our low-carbon fiber-based products are recycled into new products at a higher rate than any other base

material. We work to advance the shift to a low-carbon, circular economy by designing products that are 100%

reusable, recyclable or compostable.

Through improvements in operations, equipment, energy efficiency and fuel diversity, we are working to achieve

company-wide reductions in Scope 1 and Scope 2 greenhouse gas (“GHG”) emissions. As part of our 2030 goals,

we targeted incremental reductions of 35% in our Scope 1, 2, and 3 GHG emissions by 2030 in comparison to 2019

levels. We intend to continue to evaluate and implement projects as we pursue this 2030 GHG goal. This includes

ongoing energy efficiency efforts and capital projects to phase out our most carbon intensive fuel sources (Scope 1)

as well as developing GHG reduction strategies for our energy sourcing (Scope 2) and broader supply chain

footprint (Scope 3). In addition, we were an early adopter of the Taskforce on Nature-related Financial Disclosures

(“TNFD”). We published our first TNFD report in 2025 with 2024 data that aligns with TNFD recommendations,

which have been designed to (i) meet the corporate reporting requirements of organizations across jurisdictions; (ii)

be consistent with the global baseline for corporate sustainability reporting; and (iii) be aligned with the global policy

goals outlined in the Kunming-Montreal Global Biodiversity Framework, which was adopted to halt and reverse

nature loss by 2030.

We use carbon-neutral biomass and manufacturing residuals to generate a majority of the manufacturing energy at

our mills. We believe our efforts to advance sustainable forest management and restore forest landscapes are an

important lever for mitigating climate change through carbon storage in forests.

INTERNATIONAL EFFORTS

The 2015 Paris Agreement compels international efforts and voluntary commitments toward reducing the emissions

of GHGs. Although the United States has withdrawn from the 2015 Paris Agreement, IP recognizes the importance

of global policy action to achieve emission reductions consistent with an increase of “well below 2 ° Celsius above

pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5 ° Celsius.” Consistent

with this objective, participating countries aim to balance GHG emissions generation and sequestration in the

second half of this century or, in effect, achieve net-zero global GHG emissions.

To assist member countries in meeting GHG reduction obligations, the European Union operates an Emissions

Trading System ("EU ETS"). Our operations in the EU experience indirect impacts of the EU ETS through

purchased power pricing. To date, neither the direct nor indirect impacts of the EU ETS have been material to the

Company. We continue to evaluate potential future impacts in light of (i) our plans to separate our EMEA packaging

business into an independent public company and (ii) ongoing developments in the global climate-policy

frameworks, including the evolution of the 2015 Paris Agreement's non-binding national commitments and

transparency framework. or allocation of, and market prices for, GHG credits. In 2025, many countries failed to

submit updated climate targets, which has contributed to continued uncertainty in the allocation and market pricing

of GHG credits.

Additionally, the EU’s Corporate Sustainability Reporting Directive (“CSRD”), Corporate Sustainability Due Diligence

Directive ("CSDDD") and Deforestation Regulation (“EUDR”), each impose additional compliance responsibilities on

the Company. The CSRD requires additional reporting processes for greater accountability. The Company’s first

reporting year under the CSRD is expected to be 2028. The CSRD standards replace the existing Non-Financial

Reporting Directive and expand reporting requirements for companies operating in the EU. The implementation

timeline varies depending on the type of entity.

The CSDDD requires reporting and documentation about due diligence systems covering company and supply

chains. The CSDDD became effective in 2024 and EU member states have two years to implement through national

laws and decide on enforcement. The CSDDD implementation and compliance timeline may vary based on details

once finalized by each member state.

The EUDR requires companies trading in products derived from certain commodities to conduct extensive diligence

on the value chain to ensure goods do not result from recent deforestation, forest degradation or breaches of local

environmental and social laws. The Company is evaluating the implications of the EUDR to its business with

expected reporting to begin after December 30, 2026.

However, following the planned separation of our EMEA business into an independent public company, International

Paper will review its obligations to report under these requirements.

U.S. EFFORTS, INCLUDING STATE, REGIONAL AND LOCAL MEASURES

Responses to climate change may result in regulatory risks as new laws and regulations aimed at reducing GHG

emissions come into effect. The EPA manages regulations to: (i) control GHGs from mobile sources by adopting

transportation fuel efficiency standards; (ii) control GHG emissions from new Electric Generating Units; (iii) control

emissions from new oil and gas processing operations; and (iv) require reporting of GHGs from sources of GHGs

greater than 25,000 tons per year.

Several U.S. states have enacted or are considering legal measures requiring the reduction and reporting of GHG

emissions by companies and public utilities. While current regulations in these jurisdictions have not had, and are

not expected to have, a material impact on the Company, we continue to monitor developments closely.

In particular, the State of California has enacted two laws that introduce expanded climate-related disclosure

obligations:

•California Climate Corporate Data Accountability Act (SB 253) requires annual public reporting of Scope 1

and Scope 2 GHG emissions, beginning with fiscal-year 2025 data to be disclosed by August 2026.

•California Climate-Related Financial Risk Act (SB 261) mandates disclosure of climate-related reporting

obligations on companies doing business in California meeting specified thresholds, subject to the

resolution of ongoing legal challenges. In 2026, IP voluntarily self-reported under SB 261 using our 2024

Climate Report.

The Company is actively preparing to meet the upcoming requirements of SB 261 and will continue to monitor state-

level climate legislation, evaluate its implications on our operations and update disclosures as laws take effect and

regularity clarity evolves. It is unclear what impacts, if any, future state-level or local GHG rules will have on the

Company’s operations, as well as the outcome of any legal challenges to these rules.

SUMMARY

Regulation related to GHGs and climate change continues to evolve in the areas of the world in which we do

business. Because it remains unclear what actions regulators may take or when such actions may occur, it is not

reasonably possible at this time to estimate the Company’s costs of compliance with rules that have not yet been

adopted or implemented, may never be adopted or implemented or may be subject to legal challenge. In addition to

possible direct impacts, future legislation and regulation could indirectly impact the Company. For example, higher

prices for transportation, energy and other inputs, as well as more protracted air permitting processes, could cause

delays and higher costs to implement capital projects. Other possible indirect impacts include influence on

competitive position due to customer and end-consumer preferences regarding low-carbon, circular products with a

high recycling rate along with tax credit and funding opportunities to expand green energy production and carbon

credit generation. The Company has controls and procedures in place designed to track GHG emissions from our

facilities and stay informed about developments concerning possible climate-related laws, regulations, accords, and

policies where we operate. We regularly assess whether such developments may have a material effect on the

Company, its operations or financial condition, and whether we have any related disclosure obligations under

applicable rules and regulations.

Moreover, compliance with legal requirements related to GHGs and/or climate change currently in effect or enacted

in the future are expected to require future expenditures to meet GHG emission reduction, disclosure or other

obligations. These obligations may include carbon taxes, the requirement to purchase GHG credits or the need to

acquire carbon offsets. We may also incur significant expenditures in relation to our efforts to meet our internal

targets or goals with respect to GHGs and climate change, including our 2030 goal on GHGs as discussed above.

Furthermore, in connection with complying with legal requirements and/or our efforts to meet our internal targets

and goals, we have made and expect to continue to make capital and other investments to displace traditional fossil

fuels, such as fuel oil and coal, with lower carbon alternatives, such as biomass and natural gas. Rather than rely on

carbon offsets, we focus on reducing energy consumption as well as relative GHG emissions across our mills and

manufacturing facilities. Currently, these efforts and obligations have not materially impacted the Company, but such

efforts and obligations may have a material impact on the Company in the future.

We believe sustainability is a key element of corporate governance with oversight of management's initiatives and

efforts provided by our Board of Directors and committees of the Board of Directors.

Our Board of Directors has primary oversight of the Company's enterprise risk management program, which

includes sustainability. The Board receives updates from our Chief Sustainability Officer ("CSO") and additional

members of management. Our Board also conducts periodic reviews of components of the sustainability strategy

and performance and reviews material key sustainability-related developments and issues. Our standing

committees share responsibility for sustainability as described below:

Audit and Finance Committee

•Reviews processes and controls for external reporting of sustainability and social impact data and metrics.

•Reviews related disclosures in Annual Report on Form 10-K and other sustainability reports.

Governance Committee

•Reviews and reassesses adequacy of, and oversees compliance with, our Corporate Governance

Guidelines.

•Seeks Board of Director candidates with a broad range of skills, experiences and perspectives.

Public Policy and Environment Committee ("PPE Committee")

•Reviews sustainability and social impact policies, plans and performance to ensure commitments to

stewardship.

•Stays current on emerging sustainability and social impact trends and issues impacting the Company.

At the management level, ownership and governance of sustainability matters is embedded in the organization from

the top down. Our CEO and ELT are responsible for corporate strategy and leadership including incorporation of our

sustainability goals and standards into our daily operations and long-term business strategy. Our ELT, which is

comprised of two executive vice presidents and three senior vice presidents who report directly to the CEO and

oversee critical functions and business units within the Company, evaluates sustainability issues based on input

from the businesses. The ELT receives several sustainability updates from our CSO.

For additional information regarding risks associated with climate change and the evolving regulatory landscape,

see Item 1A. Risk Factors –We are subject to risks associated with climate change and other sustainability

matters and global, regional and local weather conditions as well as legal, regulatory and market responses

to climate change; We are subject to a wide variety of laws, regulations and other government requirements

that may change in significant ways, and the cost of compliance with such requirements, or the failure to

comply with such requirements, could impact our business and results of operations.

Additional information regarding climate change and the Company is available in our annual Sustainability Report

and Climate Report, both of which can, or will be, found on our website at www.internationalpaper.com. Our 2025

Sustainability Report and 2025 Climate Report will be available later in 2026. The information contained in such

reports is not incorporated by reference into this Annual Report on Form 10-K and should not be considered part of

this or any other report that we file with or furnish to the SEC. Any targets or goals with respect to sustainability

matters discussed herein or in our sustainability reports as noted above are forward-looking statements and may be

aspirational. These targets or goals are not guarantees of future results and involve assumptions and known and

unknown risks and uncertainties, some of which are beyond our control.