In its first environmental, social, and governance (ESG) report, LP focuses on environment, community, and culture to underpin sustainable business growth
NASHVILLE, Tenn., Dec. 7, 2021 /PRNewswire/ -- LP Building Solutions (LP), a leading manufacturer of high-performance building products, released its 2021 Sustainability Report today. Serving as LP's inaugural environmental, social, and governance (ESG) report, the document outlines LP's five sustainability pillars—governance, people, environment, products, and community—which represent the foundation of the company's sustainability work and collective commitment to ESG principles.
"At LP, we define sustainability as doing the right thing today so that we can build a brighter future for generations to come," said LP Chair and Chief Executive Officer Brad Southern. "Our work to support a successful future is inextricably linked to protecting the environment, minimizing waste, manufacturing sustainable products, developing our employees, diversifying our workplace, supporting our communities, and promoting economic prosperity. With a strong track record of sustainability across these areas, LP continues to improve so that we can build a stronger tomorrow."
By Building a Better World™, LP not only cultivates community and sustainability but also helps drive business performance. For example, in 2020, LP achieved $2.8 billion in net sales and $4.31 earnings per share.
"We are energized and excited to build on LP's 50-year legacy of sustainability," Southern continued. "As this report shows, LP is managing risks and capitalizing on opportunities to establish new leadership standards on ESG matters."
Elevating People and Community
- The health, safety, and wellness of LP's employees are paramount to sustainable business success. LP's health and safety programs are governed by the LP Environmental Health and Safety Protocol Standard and rely on an advanced form of safety management that measures serious injury and fatality potential to prevent incidents before they occur. LP considers safety so fundamental to its operations that the company uses it as a key metric in evaluating operational excellence.
- Earlier this year, LP released the LP Diversity, Equity, and Inclusion (DEI) Pledge for Action, which prioritizes gender and racial diversity, equity, and inclusion as critical focus areas for the company. The goal of LP's DEI journey is to cultivate an inclusive work environment that attracts and retains a diverse and high-performing workforce to meet the needs of LP's rapidly diversifying markets and communities.
- LP has also continued its long-standing history of volunteerism and philanthropy this year. The company strives to build strong relationships in the communities where its employees live and work, with teams volunteering their time and expertise in many ways. In 2021, the LP Foundation donated more than $500,000 through five programs: Disaster Relief, Grants and Sponsorships, Community Mill Grants, Employee Giving Match Program, and Employee Nonprofit Board Sponsorships.
Promoting Environmental Stewardship with Responsible Manufacturing and Carbon-Conscious Products
- Founded as a commodity forest products company nearly 50 years ago, LP has evolved into a leading specialty building solutions provider that continues to preserve and enhance the environment. LP's commitment to sustainable forestry is highlighted by its third-party forest certification to independent standards from the Sustainable Forestry Initiative® (SFI®) and the Programme for the Endorsement of Forest Certification. All of the fiber that LP sources from the U.S and Canada is certified to SFI standards.
- To minimize waste, LP uses more than 99% of the fiber harvested for manufacturing in products or as an alternative thermal energy source. Nearly 80% of LP's thermal energy is derived from renewable energy sources.
- Using globally recognized protocols, LP is working to quantify contributions to greenhouse gas emissions related to product manufacturing, including Scope 1 (direct emissions from owned or controlled sources) and Scope 2 (indirect emissions from the generation of purchased electricity, steam, heating, and cooling consumed by LP), as well as contributions across its supply chain, including Scope 3 (all other indirect emissions that occur across the company's value chain). This information will provide the initial baseline used to establish measurable targets for carbon emission reductions moving forward.
- The Value Reporting Foundation's SASB Standards Board oversees the SASB Standards, an ESG guidance framework for the disclosure of relevant and material sustainability information to investors. LP is aligned with SASB's Building Products and Furnishings standards and Forestry Management standards (the full SASB index is provided in LP's 2021 Sustainability Report). LP is also currently undertaking a climate change risk and opportunity assessment using the framework established by the Financial Stability Board's Task Force on Climate-Related Financial Disclosures.
- In 2021, LP released an environmental product declaration (EPD) for LP® SmartSide® Trim & Siding products. The results helped show that SmartSide products store more carbon than is released in the production and distribution of the product. The EPD, along with a supplemental assessment, demonstrates that SmartSide products are carbon negative.
Building a Brighter Future Through Sustainability
- For LP, Building a Better World™ is a journey of continuous improvement that can only be achieved through collaboration with stakeholders. To that end, LP initiated an ESG priority assessment in 2021, engaging a broad group of stakeholders to identify the ESG topics most relevant to the long-term sustainability of its business. This discussion also sought to shed light on the material risks and opportunities for the company. LP is currently establishing goals and developing action plans in relation to these ESG priority topics.
LP is proud of the steps it has taken in 2021 to implement a holistic sustainability strategy and looks forward to further building upon its ESG program in the years to come.
To read LP's 2021 Sustainability Report, visit lpcorp.com/sustainability.
About LP Building Solutions
As a leader in high-performance building solutions, Louisiana-Pacific Corporation (LP Building Solutions, NYSE: LPX) manufactures engineered wood building products that meet the demands of builders, remodelers and homeowners worldwide. LP's extensive offerings include innovative and dependable building products and accessories, such as siding solutions (LP® SmartSide® Trim & Siding, LP® SmartSide® ExpertFinish® Trim & Siding, LP BuilderSeries® Lap Siding, and LP® Outdoor Building Solutions®), LP Structural Solutions (LP® TechShield® Radiant Barrier, LP WeatherLogic® Air & Water Barrier, LP Legacy® Premium Sub-Flooring, and LP® FlameBlock® Fire-Rated Sheathing and more), LP® TopNotch® Sub-Flooring, and oriented strand board (OSB). In addition to product solutions, LP provides industry-leading customer service and warranties. Since its founding in 1972, LP has been Building a Better World™ by helping customers construct beautiful, durable homes while our shareholders build lasting value. Headquartered in Nashville, Tennessee, LP operates 25 plants across the U.S., Canada, Chile, and Brazil. For more information, visit LPCorp.com.
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SOURCE Louisiana-Pacific Corporation