ESG Report 2020
Building for a Sustainable Future

CEO
Message

About
NorbordOur Sustainable
Advantage

Risks and
Opportunities

Strategic
Orientation

Our ESGAmbitions

Building WorldClass Facilities

Empowering People
and Culture

Being Resource Efficientand Carbon Net Zero

About
This Report

Data
Tables< >Table of Contents|

3

ABOUT NORBORD|CEO MESSAGE

5OUR SUSTAINABLE ADVANTAGE: WOOD PANELS |RISKS AND OPPORTUNITIES |STRATEGIC ORIENTATION |OUR ESG AMBITIONS |

8

9

10

BUILDING WORLD-CLASS FACILITIESEMPOWERING PEOPLE AND CULTURE

12

|
|

20

BEING RESOURCE EFFICIENT AND CARBON NET ZEROABOUT THIS REPORT |DATA TABLES |

7

39

40

|

27

As a leading global manufacturer of wood-based
panels and the world’s largest producer oforiented strand board, Norbord is committed todelivering economic, social and environmental
benefits to shareholders, employees, customers
and the many communities where we operate.

Unless otherwise stated, the quantitative data in this report covers the calendar year 2019. Qualitative data generally reflects 2019 accomplishments, as well assome key highlights during the first and second quarters of 2020. Financial references are in US dollars unless otherwise indicated. Information contained in thisreport was compiled in advance of the announced acquisition of Norbord by West Fraser and represents Norbord activities only. For more details regarding the scopeand data boundaries, refer to About This Report.

NORBORD | ESG REPORT 2020

2

CEO
Message

About
NorbordOur Sustainable
Advantage

Risks and
Opportunities

Strategic
Orientation

Our ESGAmbitions

Building WorldClass Facilities

Empowering People
and Culture

Being Resource Efficientand Carbon Net Zero

About
This Report

Data
Tables< >CEO Message
We are very excited to present this report on environmental, social and governance (ESG)
performance at Norbord.
For Norbord, sustainability is all about how we can create
economic growth while caring for society and the natural
world. It is part of our DNA and core to our business,going hand in hand with our commitment to operational
excellence in manufacturing, as we focus on personal andprocess safety, continuous improvement, and building andmaintaining world-class facilities. To this end, sustainability
at Norbord is centred around three strategic orientations:building world-class facilities, being resource efficient andcarbon net zero, and empowering people and culture.
This report presents the highlights of our performancein 2019, as well as some key highlights during the firstand second quarters of 2020. It is our intention for it todemonstrate how we continue to elevate our commitment
to our people, our customers and our planet by building aresilient, world-class organization.
Indeed, we are proud of our story. At its core, wood isa renewable resource and we have a long history ofcommitment to sustainable forest management. Woodproducts are critical in the global transition to a moresustainable economy – providing not only shelter andcomfort, but sequestering carbon. In fact, we estimate
approximately six million tonnes of carbon end up in longterm storage in our products every year, roughly equivalent
to the annual emissions of 900,000 vehicles.

NORBORD | ESG REPORT 2020NOTABLE ACCOMPLISHMENTS IN 2019
Building world-class facilities. We worked hard in 2019
on enhancing the digital transformation of our business.
Applying automation, artificial intelligence and data
analytics, we made our manufacturing processes safer,more efficient and more quality consistent. We look forward
to continuing our digital transformation journey to further
empower our employees and continuously improve ourfacility performance.
Being resource efficient and carbon net zero. Towards
improved carbon performance and resource efficiency,
we worked to reduce our energy consumption and useof fossil fuels across our supply chain. Approximately
25% of our forklift truck fleet is now electric, and we also
pursued rail distribution improvements and a pilot program
to make transport of our product by truck more energy
efficient. Like many of our initiatives, these strengthened
the sustainability of our business and better enabled us toserve our customers.
Empowering people and culture. In 2019, we also launched
our “Stronger Together” internal safety brand, beginningwith a commitment by each and every employee to watch
out for one another and keep each other safe. This proved
especially timely with the COVID-19 pandemic, helping tomaintain an empowered workforce.

3“Sustainability is part of our
DNA and core to our business,going hand in hand with ourcommitment to operational
excellence in manufacturing.”– PETER WIJNBERGEN,PRESIDENT & CEO

CEO
Message

About
NorbordOur Sustainable
Advantage

Risks and
Opportunities

Strategic
Orientation

Finally, our commitment to supporting communities remains
strong, embodied by our partnership with the Home Building
Institute (HBI). Following the success of our Thank-a-Framer
campaign, in 2019 we launched Become-a-Framer, targeting
unemployed and underserved youth in the US. We arenothing without framers – who install so much of what
we make – and it is our hope that initiatives such as thesecontribute to the continued resilience of our communities.
BUILDING A MORE RESILIENT NORBORD
Sustainability has made Norbord more resilient. The
COVID-19 pandemic further accentuated and accelerated ourefforts to manage differently, to become more agile and toquickly adapt to changing market needs. Reflecting on thisyear, I believe our successful management of this crisis todate is a reflection of our company’s culture and history.

Our ESGAmbitions

Building WorldClass Facilities

Being Resource Efficientand Carbon Net Zero

About
This Report

Data
Tables< >ENHANCED ESG GOVERNANCE
This year, we continued to strengthen the governance of sustainability across the business.
We formalized oversight for our sustainability strategy, assigning the highest level of governancewith our Environmental, Health & Safety (EHS) and Sustainability Board Committee.
At the executive level, we meet regularly to ensure there are effective processes for identifying andmonitoring ESG risks and opportunities, reviewing our strategy, and approving our disclosures.
Reports on our progress are communicated to the Board quarterly, and as matters arise.
In 2019/20, we formalized an ESG multi-functional team and grew our dedicated sustainability
team to implement and maintain our strategy.

While we have a long history of working on ESG topics, thisis our first targeted report in over a decade, and it is intended
to “lay the foundations” for future years. I am excited toshare it with you as it elevates many of the important things
we already do and will continue to build on going forward.
Like our business, our sustainability story continues to
evolve. As we prepare for the next phase of Norbord’sjourney, it is my hope that this report helps further accelerate
our progress in these critical efforts.
I want to thank all our employees and partners for their
extraordinary work, as well as all the builders and framers fortheir valued contributions to critical infrastructure projects.
Together, we are building a safer and better future.
Peter Wijnbergen
President & CEO
December 2020

NORBORD | ESG REPORT 2020

Empowering People
and Culture4

CEO
Message

About
NorbordOur Sustainable
Advantage

Risks and
Opportunities

Strategic
Orientation

Our ESGAmbitions

Building WorldClass Facilities

Empowering People
and Culture

Being Resource Efficientand Carbon Net Zero

About
This Report

Data
Tables< >About Norbord
Norbord Inc. is a leading global manufacturer of wood-based panels and the world’s largest producer of oriented strand
board (OSB). Our wood panels provide a safe, durable and sustainable alternative for the building industry. From our two
geographic segments, 79% of our panel production capacity is derived in North America and 21% in Europe.
NORTH AMERICA$1.8B

EUROPEin assets1~2,400employees1

17

mills in the US,
Canada and Europe(15 operating)179%
OSB
Particleboard

Medium density
fibreboard (MDF)
Furnitureof our panel production
capacity is derived in
North America
1 Data as of August 4, 2020.

NORBORD | ESG REPORT 2020

5

CEO
Message

About
NorbordOur Sustainable
Advantage

Risks and
Opportunities

Strategic
Orientation

Our ESGAmbitions

Building WorldClass Facilities

Empowering People
and Culture

Being Resource Efficientand Carbon Net ZeroIn North America, Norbord manufactures OSB for home construction, repair andremodelling, and specialty applications (including industrial and export end uses). In
Europe, our mills manufacture a range of OSB, medium density fibreboard (MDF)
and particleboard, and related value-added products for the home construction,
furniture and do-it-yourself markets.

About
This Report

Data
Tables< >PANEL CAPACITY 1 BY REGIONOSB IS AN INNOVATIVE, AFFORDABLE AND ENVIRONMENTALLY SUSTAINABLE
STRUCTURAL PANEL SERVING MANY USES IN THE HOMEUS				42%
Canada				37%Europe				21%

PANEL CAPACITY BY PRODUCTOSB – 90% OF CAPACITY• New home construction• Repair and remodel• Light commercial construction• Industrial applications

NORBORD | ESG REPORT 2020

PARTICLEBOARD – 6% OF CAPACITY• New home construction• Repair and remodel• Furniture• Fixtures

MDF – 4% OF CAPACITY• Furniture• Fixtures• Mill work
• Mouldings and kitchen cabinets

6

1

OSB

90%

Particleboard

6%

MDF

4%

Data as of August 4, 2020.

CEO
Message

About
NorbordOur Sustainable
Advantage

Risks and
Opportunities

Strategic
Orientation

Our ESGAmbitions

Building WorldClass Facilities

Empowering People
and Culture

Being Resource Efficientand Carbon Net Zero

About
This Report

Data
Tables< >Our Sustainable Advantage: Wood Panels
We are proud to be the manufacturer of innovative, affordable and environmentally sustainable wood-based panels. We believe
our products are an integral part of the climate solution by enhancing carbon storage, increasing the efficient use of wood forconstruction, and advancing innovation in bio-based product development and sustainable forest management practices.
PROMOTES THE CIRCULAR ECONOMY
Our products use recycled fibre, are biodegradable,
produce little waste and are themselves recyclable(where programs exist).

RENEWABLE NATURAL RESOURCE
Wood contributes significantly fewer carbon emissions
than non-renewable materials such as steel and concrete.

SEQUESTERS CARBON
The majority of our products end up
in long-term applications, storing
approximately 6 million tonnesof carbon per annum.1

RESILIENT AND
ENERGY-EFFICIENT SHEATHING
When used as part of an engineeredbuilding solution, longer length OSB
wall sheathing contributes to a resilient
structure with reduced air infiltration andincreased energy efficiency.

SUSTAINABLY MANAGED FORESTS
We promote sustainable forest
management and source all our fibre
in compliance with applicable forest
certification schemes.

LOW CARBON AND RESOURCE EFFICIENT
We make efficient use of the whole tree. Treebark and fine wood particles are recovered
during manufacturing to fuel mill heat energy
systems, thereby reducing carbon emissions
and reducing dependence on fossil fuels.
ULTRA-LOW OR FORMALDEHYDE-FREE RESINSThe resins we use limit toxic chemicals with noadded volatile organic compounds.

1 Estimated average CO2e stored over a 100-year period in products in use.
NORBORD | ESG REPORT 2020

7

CEO
Message

About
NorbordOur Sustainable
Advantage

Risks and
Opportunities

Strategic
Orientation

Our ESGAmbitions

Building WorldClass Facilities

Empowering People
and Culture

Being Resource Efficientand Carbon Net Zero

About
This Report

Data
Tables< >Risks and Opportunities
We continuously reassess the key business risks and opportunities we face, while ensuring we establish the right level of risk
management and controls to protect, improve and grow our business. The following provides an overview of high-levelrisks and opportunities facing our business that we identified through our ESG materiality assessment.
ATTRACTING AND RETAINING TALENT
Our success depends on the ability to attract andretain skilled and talented team members in all areasof our business. We have a strong talent attraction
program, supplemented by industry apprenticeshipprograms and best-in-class compensation and profit
sharing strategies.
BUSINESS RESILIENCE
The wood-based panels industry is a highly
competitive business environment in which
companies compete, to a large degree, on the basis ofprice. Norbord’s success can be impacted by seasonal
factors such as weather and building activity as
market demand varies cyclically and seasonally withhomebuilding activity and repair-and-remodellingwork. Our long-term commitment is to provide bestin-class products and service, allocate capital withdiscipline, and maintain a margin-focused operating
culture. Combined, this provides resiliency to thebusiness and thereby enables growth.

CLIMATE CHANGE
Our operations are subject to events such as forest
fires, floods, hurricanes and other severe weather
events, timber diseases and insect infestations that
may be associated with climate change. Such events
could impact our operations, including access to oravailability of fibre, raw materials and demand forour products. This year, we are conducting a morein-depth climate scenario analysis to inform resilienceand adaptation strategies, as well as committing toour own carbon net zero targets.
FOREST MANAGEMENT
Government-issued forest management licences andagreements require the payment of stumpage fees
for the timber harvested and compliance with specificoperating, generation and silviculture management
practices. The majority of the timberland from which
we source fibre for our European and Canadian
operations are subject to third-party certifications to
the Forest Stewardship Council® or the Sustainable
Forest Initiative® Sustainable Forest Management
standards. We also proactively engage with timber
suppliers and forest landowners to ensure thesustainability of wood sources from private lands.

For a complete list of risks and uncertainties pertaining to Norbord’sbusiness, please see the 2019 Annual Report, 2019 Annual Information Formand the latest Management’s Discussion and Analysis. For more informationon our ESG materiality assessment process, refer to About This Report.
NORBORD | ESG REPORT 2020

8

ENVIRONMENT, HEALTH AND SAFETY
Our operations are subject to environmental laws
and regulations relating to air emissions, wastewater
discharges, solid and hazardous waste management,site remediation and safety, in addition to sitespecific approvals, permits and licences. We have
implemented management systems aligned withinternational standards such as ISO and EMAS toeffectively identify and address risks proactively.
SUPPLY CHAIN RESILIENCE
We rely on third-party transportation services fordelivery of products to customers and deliveryof material from suppliers. Failure of third parties
to deliver finished goods or raw materials in atimely manner, including from adverse weather
conditions or work stoppages, could adversely
impact our reputation and customer relationships.
We are building resiliency into our business byworking closely with our suppliers towards greater
adaptability and agility.

CEO
Message

About
NorbordOur Sustainable
Advantage

Risks and
Opportunities

Strategic
Orientation

Our ESGAmbitions

Building WorldClass Facilities

Empowering People
and Culture

Being Resource Efficientand Carbon Net Zero

About
This Report

Data
Tables< >Strategic
Orientation
With the promise of quality, durability andsustainability deeply rooted in our DNA, we
are helping build communities for the future.
In 2019, we made the conscious decision to think
differently about how we use the world’s resources.
We are inspiring and equipping our people, investingin new technologies and working together withour customers and suppliers to develop leading
products that meet the changing needs of society.
THE RESULT: THREE SUSTAINABILITY ORIENTATIONSTHAT UNDERPIN EVERYTHING WE DO• Building world-class facilities:
Leading in safety, efficiency and high-quality,
innovative and sustainable wood panel products.

BUILD
WORLD-CLASSFACILITIESOwn highquality assets
with low-cost
positions

Focus on growththrough best-inclass service andproducts

BE RESOURCEEFFICIENT AND
CARBON NET ZEROPursue growthin OSB

Maintain a marginfocused operating culture

For us, sustainability is an integral part of doing business.
This is why our sustainability orientations are embedded inour business model, underpinning the six key componentsof our business strategy. Ultimately, we believe in “making
it better.” We are always looking for ways to improve,
be more efficient, offer customers a better product, andmake things safer and easier for people to do their jobs.

NORBORD | ESG REPORT 2020EMPOWERPEOPLE AND
CULTURE
MAKE
IT BETTER• Empowering people and culture:
Cultivating an enriching and diverse work environment
where people feel valued and supported to be
successful both personally and professionally.
• Being resource efficient and carbon net zero:
Creating more value from fewer resources, minimizing
carbon emissions and being part of the climate solution.

Develop a worldclass safety culture

Allocate capitalwith discipline

9

CEO
Message

About
NorbordOur Sustainable
Advantage

Our ESGAmbitionsSustainability is integral
to building communitiesof the future.
We recognize that, while we have built
deep roots in sustainability, there isroom to grow. We believe we have theability to capture new sources of value
for the business and our stakeholders –through aspects such as circularizationand green building – while also doingright by our people and the planet.

Risks and
Opportunities

Strategic
Orientation

Our ESGAmbitions

Building WorldClass Facilities

Being Resource Efficientand Carbon Net Zero

About
This Report

Data
Tables< >ALIGNING TO THE UNITED NATIONS (UN) SUSTAINABLE DEVELOPMENT GOALS (SDGS)
We have aligned our sustainability orientations and strategic ambitions with the specific targets of the UN SDGs
where we believe we can have the greatest impact in contributing to a prosperous, equitable and sustainable world.
BUILDING WORLD-CLASS FACILITIESEMPOWERING PEOPLE AND CULTURE

SDG 3:
Good Health & Well-being
We are committed toproviding affordable
and effective health carebenefits to all employees, promoting
their physical and mental well-being
and reducing the emission of hazardous
chemicals to the environment.

SDG 5:
Gender Equality
We are working to build
an inclusive and equal
opportunity workplace
for all genders, and promote women’s
full and effective participation at alllevels of leadership and decisionmaking throughout Norbord.

SDG 8:
Decent Work andEconomic Growth

In 2021, we will continue to implement
actionable targets that demonstrate
our commitment to sustainability.
Alignment of our ambitions, goals
and targets with the United Nations(UN) Sustainable Development Goals(SDGs) will lay the groundwork forfurther improvement in the areas thatoffer the most favourable opportunities
for the engineered wood business.

NORBORD | ESG REPORT 2020

Empowering People
and Culture

We strive to maximize
economic growthand create good jobs through theapplication of technological innovation
to improve resource efficiency, andby supporting small businesses
and investing in the workforce oftomorrow where we work and live.

BEING RESOURCE EFFICIENT AND
CARBON NET ZEROSDG 12:
Responsible Consumption
and Production
Our products andmanufacturing processes
support the sustainable management
and efficient use of natural resources
and the reduction of waste generation.

SDG 13:
Climate Action
We are taking action tocombat climate change
and its impacts, supporting
the sustainable management of forest
carbon sinks and finding new ways
to integrate climate change into ourpolicies, strategies and planning.

SDG 15:
Life on Land
We depend on thepreservation andenhancement of natural
capital, supporting sustainable
forest management and working
to understand the impacts of ouractivities so that we can take action tosustain and enhance biodiversity.

10

CEO
Message

About
NorbordOur Sustainable
Advantage

Risks and
Opportunities

Strategic
Orientation

Our ESGAmbitions

Building WorldClass Facilities

Empowering People
and Culture

Being Resource Efficientand Carbon Net Zero

About
This Report

Data
Tables< >Our ESG Goals

BUILDING WORLD-CLASS FACILITIESEMPOWERING PEOPLE AND CULTURE

BEING RESOURCE EFFICIENT AND CARBON NET ZEROAMBITIONAMBITIONAMBITION

We lead in safety, efficiency, quality and innovation acrossthe industry.

We cultivate an enriching and diverse workplacethat empowers us all to be stronger together.

We make the most of trees – bringing affordable andaccessible circular economy solutions home.

• Customer quality. We offer customers high quality andconsistency in our products and services.

• Diversity. We provide equal opportunities and reflect
the diversity of the communities in which we operate.

• Safety. We take responsibility for personal andprocess safety.

• Talent development. We attract, develop and retain atalented workforce.

• Climate change. We design resilient products, made tolast for the life of your home with zero impact on the
climate – and we believe green buildings should be withinreach of everyone.

• Technology and innovation. We focus on continuous
improvement to become more nimble, flexible, efficientand adaptive.

• Social impact. We are engaged where we work andsupport those that need and use our products.

• Sustainable forestry and biodiversity. We promote theprotection of biodiversity and sustainable forest
management.
• Resource efficiency and circularity. We optimize the use ofwood fibre and other resources across our value chain.

• Business resilience. We remain agile and resilient in theface of an increasingly unpredictable global environment.

2021 GOAL

2021 GOAL

2021 GOAL

Safety: Eliminate high consequence injuries and develop
safety culture through employee engagement and use ofpredictive data analytics.

Diversity: Achieve 30% gender diversity by 2025 and elevate
cultural awareness.

Climate: Develop science-based targets to achieve carbon net
zero operations before 2050, and reduce greenhouse gas(GHG) intensity by 20% by 2025.

Customer innovations: Reduce product variability by
driving automation and improved efficiency throughNorbord 4.0 Program.
Sustainable procurement: Engage our supply chain indevelopment of joint improvement initiatives.

NORBORD | ESG REPORT 2020

Talent management: Promote entrepreneurship and sharedownership values.
Community development: Support and strengthencommitments to essential workers through the Thank-aFramer/Become-a-Framer programs.

11

Material efficiency: Develop site-specific water, waste andmaterial efficiency metrics at all operations.
Biodiversity: Develop baseline biodiversity and humanfootprint assessment within our Alberta forest
management area.

CEO
Message

About
NorbordOur Sustainable
Advantage

Risks and
Opportunities

Strategic
Orientation

Our ESGAmbitions

Building WorldClass Facilities

Empowering People
and Culture

Building WorldClass Facilities
Leading the way in safety, efficiency and high-quality, innovativeand sustainable wood panel products.

$141M

invested in capital projects
to improve production
efficiency and achieve highsafety and environmental
performance

NORBORD | ESG REPORT 20209 millsachieving industry
top-quartile safety
performance (based on
3-year average)$9M

invested in research anddevelopment since 201712

Being Resource Efficientand Carbon Net Zero

About
This Report

Data
Tables< >CEOMessage

About
NorbordOur Sustainable
Advantage

OUR STRATEGIC AMBITIONS
We lead in safety, efficiency, quality
and innovation across the industry.
• Customer quality. We offer
customers high quality andconsistency in our products
and services.
• Safety. We take responsibility for
personal and process safety.
• Technology and innovation.
We focus on continuous
improvement to become more
nimble, flexible, efficientand adaptive.
• Business resilience. We remain
agile and resilient in the face of anincreasingly unpredictable global
environment.

Risks and
Opportunities

Strategic
Orientation

Our ESGAmbitions

Building WorldClass Facilities

Empowering People
and Culture

Being Resource Efficientand Carbon Net Zero

Our Pursuit of Excellence
At Norbord, we believe in “making it better.” We arealways looking for ways to improve, to be more efficient,
to offer customers a better product, and to make things
safer and easier for people to do their jobs.

About
This Report

Data
TablesKEY HIGHLIGHTS

4 of 15
operating mills set annual
production records

Our success comes from the pursuit of excellence in all areas of our business.
As a leading manufacturer of wood-based panel products with operationsin North America and Europe, we aim to be best-in-class. We look beyond
minimum requirements and set our sights on a vision of what’s possible.
Our business is continually subject to market conditions and pressures. These
include fluctuations in raw material prices and customer demand, which in turnimpact benchmark commodity OSB prices.
Moving forward, we are looking for ways to make our business more agileand efficient. We will continue to implement projects to reduce manufacturingcosts and make investments to increase production of specialty products forindustrial applications and exports.

$400M
in margin improvements
over the past 18 years>15,400
local suppliers

NORBORD | ESG REPORT 2020

< >

13

CEO
Message

About
NorbordOur Sustainable
Advantage

Risks and
Opportunities

Strategic
Orientation

Our ESGAmbitions

Building WorldClass Facilities

Empowering People
and Culture

Being Resource Efficientand Carbon Net Zero

About
This Report

Data
Tables< >Customer Quality
We deliver high-quality, sustainable wood-based panels that meet the needs of today’s
marketplace. We are developing higher-quality products that are safer, lighter, have lower
volatile organic compounds (VOCs) and are more resilient to climate change.
REDUCING PANEL WEIGHT
We are continually working to reduce the weight of our panels
by ensuring greater material efficiency in our process, withoutcompromising quality or safety. Even small changes, when
multiplied by the number of boards we produce, result insignificant reductions in the use of wood, resin and wax. As aresult, our customers receive a better product that is lighter totransport, safer to handle and more environmentally friendly.

BUILDING FOR CLIMATE RESILIENCE
We provide our customers with a consistent and durable
product made from a renewable natural resource thatsequesters carbon. Our OSB products, when used in anengineered building solution, are integral to the constructionof energy-efficient structures that are resistant to extreme
weather including hurricanes, high wind events andearthquakes.

REDUCING THE USE OF FORMALDEHYDE-BASED RESINSIn Europe, we no longer use formaldehyde-based resins in
our OSB, and we continue to reduce their use in our North
American products. We are also exploring ways to remove
formaldehyde-based resins from our MDF and particleboard.

Windstorm® wall sheathing meets hurricane wind codes,
which translates into savings of up to $1,000 or more perhome in construction material, labour and waste.

However, while little to no formaldehyde is added into theprocess, a small amount of VOCs naturally occur in the wooditself. New standards in Germany and Scandinavia are shifting
to lower VOC values that will be difficult for even boards
manufactured without added VOC-emitting compounds
to meet. However, we are committed to manufacturing
products that meet the lowest emissions standards withoutcompromising product quality.

Our Solarbord® radiant barrier sheathing product helps toreduce home cooling costs in southern climates. It uses
a radiant heat-reflecting foil that, when installed as roof
sheathing, reduces radiant heat transfer by up to 97%, thereby
keeping the home cooler in the summer.
Our longer length panels, TallWall®, Windstorm® andQuakeZone®, are designed to be installed vertically and canhelp reduce air leakage by up to 60% compared to traditional
4x8-foot panels that are installed horizontally, making homeheating and ventilation systems more energy efficient.

Goal: Engage supply chain in development
of joint improvement initiatives

NORBORD | ESG REPORT 202014

Quality technicians assure products meet rigorous
third-party standards and customer requirements.

15%
increase in North American
specialty product shipments
since 2004

CEO
Message

About
NorbordOur Sustainable
Advantage

Risks and
Opportunities

Strategic
Orientation

Our ESGAmbitions

Building WorldClass Facilities

Empowering People
and Culture

Being Resource Efficientand Carbon Net Zero

About
This Report

Data
Tables< >Technology and Innovation
We are embracing new technologies and innovating for future growth.
For us, implementing technology andautomation is about augmenting humans: wewant to make their work more efficient andput people’s skills to better use. Our biggest
initiative underway is Norbord 4.0, where
we are digitizing our operating environment,
harnessing artificial intelligence (AI), data andanalytics to improve the manufacturing process.
This improves quality control and facilitates
predictive and condition-based maintenance.

AUTOMATING SALES AND LOGISTICS FUNCTIONSIn Europe, we are improving our businessprocesses by automating certain aspects of theordering process to ensure that orders flow
more seamlessly from the customer to thewarehouse. In 2019, in Europe, we continued
to transfer our large customer accounts onto
electronic ordering. Our goal is to have over
70% of our United Kingdom (UK) customer
base transferred by the end of Q1 2021.

34

3

robots deployed
across all mills

fully automatedfinishing lines

PILOTING ROBOTICS APPLICATIONS
Robots are now being used in the finishing andpackaging stages as part of the stacking, edge
coating, stenciling and strapping processes.
We have also automated key order assemblyand packing functions at our South Molton,
England furniture plant and continue to explore
opportunities for robots in every step of theprocess. The idea is not just to reduce labour
but to improve employee safety by reducing
repetitive movements and limiting humaninteractions with dangerous equipment.

DIGITIZING OUR MANUFACTURING PROCESSBy automating aspects of our quality control
process, using better instrumentation, sensors
and the power of AI, we are taking the variability
out of our manufacturing process. This will
result in a better product for our customers
and have a positive impact on sustainability by
reducing the use of resources and improving
cost-effectiveness. In 2019, we began deploying
these new Norbord 4.0 technologies at our
Huguley, Alabama mill, and are aggressively
expanding their use throughout our operations.
Goal: Drive automation andimproved efficiency throughNorbord 4.0 Program

NORBORD | ESG REPORT 2020

ENSURING CYBER SECURITY
As we accelerate the implementation of automationand increase the digital engagement of ourworkforce, our cyber security systems are being
strengthened to stay abreast of ever-increasing
cyber threats. We have made substantial
investments in deployment of secure and reliable
IT infrastructure, processes and tools. In addition,
we have trained all employees to identify cyberthreats and protect our IT infrastructure,
employees, customers and shareholders.

15

Top photo: Robot at the South Molton, England mill.
Bottom photo: Employees in our Jefferson, Texas mill use digital technologies
to make data-driven decisions that improve our entire manufacturing process.

CEO
Message

About
NorbordOur Sustainable
Advantage

Risks and
Opportunities

Strategic
Orientation

Our ESGAmbitions

Building WorldClass Facilities

Empowering People
and Culture

Being Resource Efficientand Carbon Net Zero

Norbord 4.0: A Digital Transformation
Two years ago, we partnered with Rockwell Automation to embark on a journey of digitaltransformation: we call this project Norbord 4.0. Our goal with this digital transformation isto empower our people to make data-driven decisions and be more productive by leveraging
digital technologies and ultimately improve our entire manufacturing process.
WHY DID NORBORD PURSUE
DIGITAL TRANSFORMATION?
In the past, we have spent vast amountsof time and effort fine-tuning ourmachines. We had a lot of homegrownsystems that were highly customized
to our specific needs, but were
having trouble keeping up with ourorganization’s growth. We needed better
insights into how our mills operate, withthe capability to process the data in realtime and make it useful to the people
who make decisions every day.

HOW ARE YOU USINGDATA ANALYTICS?
We decided to start at the mill level,from the floor up. Together with
Rockwell Automation, we designed
an application that would allow ourfacilities to collect information on thestatus of devices and processes. The
system then evaluates that data. If
there’s an event, it determines whichusers to alert and sends a notification
directly to their mobile phones.

NORBORD | ESG REPORT 2020

The idea is simple: the more machines
and processes you have to monitor, theless likely you are to notice subtle shifts.
But a subtle shift could be a precursor
to a bigger problem. In other words,
we are becoming more predictive andmoving to a condition-driven approach.

WHAT STEPS DID YOU TAKE TO ENSURE
THAT EMPLOYEES WERE SUPPORTIVE
OF THE PROJECT?
One of the reasons we chose Rockwell
Automation was their experience inhuman-centred design. Led by theirdevelopment team, we are focusing
on how we could best help the end
user. We held interviews at the mills,
town halls and meetings to drive our
employee engagement and make surethey understand how they are positively
contributing to this transformation.

HOW DOES NORBORD 4.0
IMPROVE EFFICIENCY?
One of the cornerstones of Norbord
4.0 is the manufacturing execution
system. It governs the recipe for the
manufacturing process. But also, as
the product is being manufactured, it
records all the effort, energy and raw
materials going into the product. Thatgives us a real-time, granular image ofour manufacturing inputs so that we can
improve our product and process.

WHAT IS THE PROJECT TIMELINE?
We have just finished deploying
Norbord 4.0 at our pilot site, and weare seeing positive results on every
work stream. We are aiming to havethe whole company running on thisplatform within a few years.

“We constantly look for new andbetter solutions and technologies
that give us a modern, peoplefocused approach to data, control
and reporting.”

Top photo: Kevin Burke, Senior Vice President,
North American Operations.
Bottom photo: Employees in the Huguley, Alabama
mill use Norbord 4.0 technology.

16

About
This Report

Data
Tables< >CEOMessage

About
NorbordOur Sustainable
Advantage

Risks and
Opportunities

Strategic
Orientation

Our ESGAmbitions

Building WorldClass Facilities

Empowering People
and Culture

Being Resource Efficientand Carbon Net Zero

About
This Report

Data
Tables< >Safety Culture
Safety is a core value at Norbord and a success factor for our business.
We endeavour to integrate safety into every aspect of our decision-making.
From a safety perspective, 2019 was a source of both
disappointment and optimism. Our Occupational Safety
and Health Administration (OSHA) recordable injury rateincreased to 1.27.1 While our 2019 OSHA rate was still
better than average in the North American panel industry,
it was higher than previous years for us. As part of ourcommitment to achieving world-class safety performance,
we launched “Stronger Together,” a new company-widesafety brand which provides a foundation and rallying
point for all our safety programs and initiatives. The
brand is aimed at reinforcing the importance of safety ata personal level for our employees and their loved ones.
INVESTING IN HAZARD PREVENTION
Over the last five years, we have invested heavily in new
equipment and monitoring. Increasingly, we are leveraging
data to improve our safety programs. Automation is also
reducing risks for employees by automating hazardous
tasks and reducing human interactions with equipment.
One major challenge is fire prevention: because we dry
fine wood materials at high temperatures, our process has
inherent fire risks. In 2019, improvements to process safety
led to a 39% reduction in press fires, which contributed toa 45% decrease in the number of higher-severity fires.

92%
employee participation in 2019 safety
culture perception survey

STRENGTHENING OUR SAFETY LEADERSHIP PROGRAMSOur Safety Leadership Program, introduced over a
decade ago, has been successful in ensuring that
operators and supervisors have the knowledge andskills to take ownership and be accountable for safety
performance. In 2019, we began modernizing the
program to drive further performance improvement
and better leadership skills for our frontline leaders,
and we are committed to rolling out an enhanced
program for all existing and new managers in 2021.

Goal: Eliminate high consequence
injuries and develop safety culture
through employee engagement anduse of predictive data analytics

MEASURING SAFETY CULTURE
Achieving world-class safety goes beyond reducing andultimately eliminating workplace injuries: it requires a
shift in the heart and mind of every employee. Usinga safety culture perception survey, we measure ourrelative culture strength in three categories: safety
leadership, safety structure, and safety processes
and actions. In 2019, all three categories showed
improvement over the previous survey in 2016. The
detailed results are used at every level of the organization
to identify and share opportunities for improvement.

1 2019 injury rates have been adjusted from the previously disclosed
figure of 1.31, taking into account a recent OSHA determination that apreviously reported injury was not work related.
NORBORD | ESG REPORT 2020

17

DRIVING CONTINUOUS IMPROVEMENT:OUR SAFETY STAR AUDIT SYSTEMFirst introduced more than 10 years
ago, Safety Star is the management
system we use to verify, report on andrecognize a site’s progress towards asustainable world-class safety culture.
In 2018, it was revamped to focus on
driving continuous improvement andemployee ownership in safety.
An internal team of trained
professionals evaluates performanceat each mill by observing the day-today operations, conducting interviews
and reviewing documents in fourareas: management commitment
and employee involvement; worksite
analysis; hazard prevention andcontrol; and safety and health training.
Nine facilities have achieved andmaintained One Star certifications,with our Genk, Belgium mill the first toachieve Two Stars in 2019.

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Orientation

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Data
Tables< >Stronger Together: Making Safety Personal“Stronger Together” is a transformational safety culture initiative that seeks to make safety more personal across Norbord.
“I believe this is one of the most exciting things wehave ever done at Norbord. We have made a lot ofprogress in safety over the last decade…But we cando better, and we can make it better. Getting people
home safely is the most important thing we do.”– P ETER WIJNBERGEN,PRESIDENT & CEO

We believe that accidents are preventable when we work
together. This is part of the message behind our Stronger
Together safety brand. It’s about driving good decisionmaking down to all levels of the organization, so thateach and every employee is committed to following
procedures, reporting unsafe conditions and watchingout for their co-workers. The Stronger Together message
engages employees in four ways: from leadership to
employee, from employee to manager, from peer topeer, and from employee to family.
Stronger Together engages employees at all levels
in videos and discussions about their contribution
to safety. Subsequent media campaigns and supporting
activities have focused on topics such as the Safety Star
program, pre-risk assessment and hazard recognition
skills, automation, employee-led communications andour response to the COVID-19 pandemic.
Ultimately, the goal is to empower employees to takeownership and responsibility for their safety and thesafety of co-workers.

NORBORD | ESG REPORT 2020

Stronger Together vision statement.

In 2020, we launched the Stronger Together internal
website where employees can access campaign
materials and share safety news, achievements and bestpractices. In the first 12 months following the launch ofStronger Together, the number of recordable injuries
decreased by 30%. For the company as a whole, in thefirst two quarters of 2020, safety performance showed a
36% improvement over the same period last year.
STAYING STRONG DURING COVID-19
When we launched the Stronger Together initiative,
we had no idea how important this message would
become with the outbreak of the COVID-19 pandemic.
Stronger Together has taken on even greater meaning

18

Stronger Together mill launch event.

for us and is a powerful platform that supports
communicating, working together and looking out foreach other.
Our first priority being the health and safety of ouremployees, we quickly implemented measures to
educate, mitigate and re-imagine our offices andoperations to minimize the potential exposure to
COVID-19 while protecting our livelihoods.

36%
improvement in safety performance sinceroll-out of the Stronger Together brand

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NorbordOur Sustainable
Advantage

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Orientation

Our ESGAmbitions

Building WorldClass Facilities

Empowering People
and Culture

Being Resource Efficientand Carbon Net Zero

About
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Data
Tables< >Business Resilience
We continuously build our resilience by being flexible and agile. Climatechange, wildfires and recent events such as the COVID-19 pandemic
underscore how critical it is to continue these efforts.
INCREASING OUR OPERATIONAL AGILITY
One of our key learnings from the COVID-19 pandemic has
been the need to be able to adapt quickly. The pandemic
has challenged us to think differently about how we run
our business.

DIVERSIFYING SUPPLY CHAINS AND MARKETS
Our robust relationships with our suppliers ensure continuity
in difficult times. Where we have a more concentrated
exposure, we are looking at multi-sourcing key raw
materials to ensure more resilience in our supply chain.

At the start of the pandemic, we reduced operating schedules
across our mills as demand temporarily retracted during
early lockdowns. We felt this gave us the most flexibility
to adapt to the ever-changing demand landscape whilestill meeting our customers’ needs, reducing hardshipon our employees and ensuring we’d be prepared
for a return to growth when markets normalized.

Notably, our strong operating footprint and growing stable
margin end uses (North American specialty products,
which include industrial and exports, and European panels)
provide us with greater diversification than many of our
North American-based competitors and better positions
us to weather market cycles. We are also promoting theuse of OSB in products that are traditionally made out ofother composite wood, solid wood or other non-renewablematerials, such as kitchen cabinets, flooring substrate or
countertops – sectors where pricing is more stable.

While we have since implemented a flexible operating
strategy to be more agile in responding to changing
market conditions and customer requirements, these
events compelled us to reflect on how to be moreproactive. Our senior management team started to think
about the future: how will the world be different after
the pandemic? How can we prepare? As part of thisprocess, we developed a scenario analysis frameworkthat evaluated a dashboard of factors representing broad
macro themes to help us reprioritize accordingly.
Since then, the process has evolved. Next steps include
redesign of our existing scenario analysis framework to
make it more flexible and suited to any crisis, whether
it be related to climate change, a natural disaster or the
next pandemic. We are studying how to become evenmore nimble, identifying key trends to monitor andstrategic opportunities within those different scenarios.

NORBORD | ESG REPORT 2020

Over the next several years, we will continue to executeon our strategy of increasing North American sales of
OSB into new specialty applications to complement
the existing strong commodity products business.
Our long-term goal is to have specialty products
represent 50% of our North American OSB sales.

Goal: Have specialty products
represent 50% of our North
American OSB sales

19“We aim to increase ourbusiness resilience bybecoming more agile in
the face of an increasingly
unpredictable global
environment.”– ROBIN LAMPARD,SENIOR VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER

CEO
Message

About
NorbordOur Sustainable
Advantage

Risks and
Opportunities

Strategic
Orientation

Our ESGAmbitions

Building WorldClass Facilities

Empowering People
and Culture

Empowering People
and Culture
Creating an enriching work environment where people feel valued and supported
to be successful both personally and professionally.

$200K

committed to theongoing development ofHome Builders Institute(HBI) training programs

NORBORD | ESG REPORT 202010%of employees are
women (16% inmanagement andsenior level positions)78%

of employees reported
that their supervisor isinterested and cares about
them as an individual20

Being Resource Efficientand Carbon Net Zero

About
This Report

Data
Tables< >CEOMessage

About
NorbordOur Sustainable
Advantage

OUR STRATEGIC AMBITIONS
We cultivate an enriching anddiverse workplace that empowers
us all to be stronger together.
• Diversity. We provide equal
opportunities and reflect thediversity of the communities inwhich we operate.
• Talent development. We attract,develop and retain a talented
workforce.
• Communities. We are engaged
where we work and support thosethat need and use our products.

Risks and
Opportunities

Strategic
Orientation

Our ESGAmbitions

Building WorldClass Facilities

Empowering People
and Culture

Being Resource Efficientand Carbon Net Zero

Building Products andFutures
Our people are the heart of our business.
We attract, develop and retain the best talent by providing opportunities for
professional growth and cultivating an environment where employees will
thrive. Our ‘promote from within’ philosophy means investing in our people
while offering effective health and wellness programs.
Our profit share program means employees are invested in both improving thebusiness and sharing in the profits they help generate. We are also committed
to making sure that we represent the diversity of the communities where
we operate, building an inclusive culture where people can share ideas andvalue and respect one another. This is embodied by our “Stronger Together”
philosophy, which emphasizes employee engagement and collaboration.
Many of our mills are located in rural areas. We play an integral role in thesecommunities, not only as a major employer and taxpayer, but as a part of thefabric of the daily lives of the people who live there. Therefore, it’s importantfor us to engage with residents to build positive relationships and to contributeto the growth and sustainability of these communities, through interactions
with local community councils, or by sponsoring local initiatives and being
active contributors and volunteers in the community. Our commitment to a
positive social impact extends to those that purchase and use our products,
through partnerships like our Thank-a-Framer and Become-a-Framer programs,
and support for affordable housing, disaster relief (such as hurricanes) andinfrastructure development projects.

About
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Data
Tables< >KEY HIGHLIGHTSFEMALE EMPLOYEES BY REGION (%)
15
12
9
6
3
0

CanadaUS

Europe$75M
paid out to employees in
profit share and bonuses
since 201792individuals promoted
from within to managerial
positions since 2018

NORBORD | ESG REPORT 2020

21

CEO
Message

About
NorbordOur Sustainable
Advantage

Risks and
Opportunities

Strategic
Orientation

Our ESGAmbitions

Building WorldClass Facilities

Empowering People
and Culture

Being Resource Efficientand Carbon Net Zero

About
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Data
Tables< >Talent Development
We are dedicated to developing and retaining a strong and committed workforce
so that we remain at the forefront of manufacturing excellence.
Our 2,400 full-time employees across North America andEurope are the foundation of our success. Their commitment,
motivation and talent have made us successful, resilient andflexible. We engage and retain our employees by giving them
the tools and opportunities to develop to their full potential
and advance their careers in the direction they choose.
ATTRACTING NEW TALENT
We have a strong culture focus on continuous improvement,
supported by a flat corporate structure and a philosophy thataligns the interests of our employees with those of ourshareholders. Because of this philosophy, the average
number of years of service amongst our employees isapproximately 12 years and a quarter of them have 20 yearsof service or more.
We’re focused on attracting a diverse workforce that reflects
the communities where we operate, and upskilling ourcurrent talent to hone their technical and leadership skills.

EMPLOYEE AGE BREAKDOWNNORBORD | ESG REPORT 2020

We recognize our continued success depends upon thecontributions of our employees. This is why we haveestablished apprenticeship and training partnershipprograms to attract and develop engineering and technicalmanufacturing candidates early in their careers.
DEVELOPING LEADERS
We’re focused on growing people from within. Our
senior leaders regularly review our workforce to identify
talented individuals with leadership potential. Every
employee in an operational leadership position receives
training in leadership skills, communication, and their
key responsibilities and legal accountabilities.
We invest in our people through a long-standing partnershipwith Strathclyde University in Glasgow, where we haveenrolled three of our existing employees in its bespoke
Graduate Level Apprenticeship programme. This opportunity
clearly recognizes them as future leaders with the potential
to eventually become senior operations managers.
YEARS OF SERVICE

Below 30

11%

0–10 years

52%

30–50		

50%

11–20 years

23%

Over 50		

39%

21–30 years

18%

31 years +7%

22

Cowie, Scotland Technical Apprenticeship
Programme participants.

EUROPEAN TECHNICAL
APPRENTICESHIP PROGRAMME
Our program combines theoreticallearning and practical, hands-on
experience. Students alternate
between working on-site under
the supervision of experienced
workers and attending college tocomplete their degree. Programs
offer apprenticeships in Technical
Manufacturing, Maintenance andElectrical skills, ranging from
18 months to four years. Since theprogram launched eight years ago,
more than 100 apprentices havecompleted the program, with eightapprentices hired by Norbord in thepast year.

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NorbordOur Sustainable
Advantage

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Opportunities

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Orientation

Our ESGAmbitions

Building WorldClass Facilities

Empowering People
and Culture

Being Resource Efficientand Carbon Net Zero

About
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Data
Tables< >Aligning the Interests of Our Employeeswith Those of Our Shareholders
We have a strong philosophy of providing value-added work that focuses on both intrinsic
motivators and various incentives that share success with employees.
“ Trust and mutual respect for ourpeople are cornerstones of ourculture. It is central to Norbord
achieving long-term sustained
success. It underpins our
reputation and our profitability: it
is to be valued and nurtured.”– A LAN MCMEEKIN,SENIOR VICE PRESIDENT, EUROPE

HOW DOES PROFIT SHARING WORK?

WHY IS THIS PROGRAM SO IMPORTANT
TO NORBORD?

At the end of the year, a percentage
of each mill’s operating profits is split
equally among all mill employees.
It doesn’t matter if you’re a manager of
20 years or a recent hire learning a newrole: everyone shares equally in that pot
of money.

We are nothing without our people:
they are our reason for success. Our
philosophy has always been to work
hard to have positive relationships with
our employees. We work collaboratively
and openly toward a shared success. We
have even been successful introducing
these programs at our unionized mills,
which is a testament to our excellent
working relationship with the unions
that represent approximately 36% of ouremployees. Profit sharing is a tangible
way of empowering our people, once
again embodying our belief that we arestronger together.

WHAT HAS BEEN THE IMPACT
OF THIS STRATEGY?
WHAT TYPES OF INCENTIVES ARE
OFFERED TO YOUR EMPLOYEES?
In addition to offering regionallycompetitive wages and benefits at
our operations, we also have a formal
incentive program. Our incentive
program is designed to align ourshareholders’ and employees’ interestsfrom a compensation perspective. A keyelement of that strategy is our mill profit
sharing programs.

NORBORD | ESG REPORT 2020

It has been an incredibly powerfulprogram. It fosters peer-to-peer
accountability, and drives a cultureof looking for opportunities to reduce
costs and to make things safer
and easier. Because ultimately, thebetter the company does, the better
our employees do. As a result, ouremployees and their families get to
enjoy profit-sharing payouts due toimproved mill performance.

$75M

paid out to employees in
profit share and bonuses
since 201723

Top photo: Greg Mackie, Vice President, Human
Resources and Environment, Health & Safety.
Bottom photo: A team meeting at the Grande
Prairie, Alberta mill.

CEO
Message

About
NorbordOur Sustainable
Advantage

Risks and
Opportunities

Strategic
Orientation

Our ESGAmbitions

Building WorldClass Facilities

Empowering People
and Culture

Being Resource Efficientand Carbon Net Zero

Diversity
We are committed to building a diverse and inclusive workforce that provides equal
opportunities and reflects the communities where we operate.
We recognize the benefits of a diverse workforce, and our aim
is to be inclusive and accessible to all regardless of gender,
race, background or ability. We firmly believe that the value of
diversity in our workforce will enable better decisions as well
as stronger team and company performance.
Historically, we’ve employed a very high proportion of male
employees, especially within site-based production roles. In
recent years, however, we’ve been successful in recruiting
female employees for traditionally male-dominated positions
such as production operators, forklift truck drivers andgraduate engineers. Office and field-based functional roles
such as sales have moved towards a more even genderbalance. Over the last two years, we’ve also increased our
representation of women in senior leadership roles and ourBoard of Directors.
RECRUITING STRATEGIES
Because we’re committed to providing equal opportunities
and improving the balance of our workforce, we’ve undertaken
several initiatives to increase diversity across our business.
In Europe, for example, we are moving away from traditional
recruitment methods to prioritize programs such as Career
Ready (which focuses on attracting new talent and skills) andworking with universities to offer industrial placements, postgraduate opportunities and graduate-level apprenticeships.

BROADENING THE STRONGER TOGETHER MESSAGE
Embracing diversity also means encouraging employees
within the company to demonstrate an openness to different
points of view and treat each other with respect. While theinitial focus of our “Stronger Together” campaign when it
launched in 2019 was on safety, the underlying principles
provide a meaningful framework for how we work together
and treat each other.
WOMEN IN MANAGEMENT POSITIONS
100%
80%

40%
20%

SeniorManagement

Management
Women

Goal: Achieve 30% gender diversity across ourorganization by 2025. Our efforts are focused on
recruitment strategies, ensuring diversity on our
Board and reinforcing the message of inclusivenessthrough our Stronger Together culture.

NORBORD | ESG REPORT 2020

Data
Tables< >ENSURING DIVERSITY ON OUR BOARD
OF DIRECTORSAs stated in our Board Diversity
Policy, we seek to foster anenvironment that respects people’sdignity, ideas and beliefs, thereby
ensuring equity and diversity.

4 of 9BOARD MEMBERS ARE
WOMEN, EXCEEDING OURTARGET OF 2 IN 2019
We will continue to review andassess our progress to ensure thatdiversity on the Board, with respect togender, visible minorities, Indigenous
people and people with disabilities,
is considered as part of succession
planning and in adding new members.

60%

0%

About
This Report24

NonManagement

Men

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Data
Tables< >Health and Wellness
We are committed to actively supporting the health and wellnessof our people.
The health of our employees is importantso they can be at their best, every day. A
person’s physical and mental health has
a direct impact not only on their ability toperform their duties, but on their quality oflife, happiness and relationships with others.
We believe it is a shared responsibility. We are
therefore working closely with employees andexternal organizations to support their healthand well-being through various programs,
services and incentives. We are also paying
increasing attention to mental health, withnew training and awareness programs.
SHARING THE RESPONSIBILITY
Our organizational philosophy is that
health care is a shared responsibility. We
therefore offer various health programs,
including subsidized gym memberships andEmployee & Family Assistance Programs
to support the well-being of our employees
and their families. Across our mills, weemploy seven occupational health nurses
to assist in developing and implementing
our occupational health, safety and wellness
programs, such as smoking cessation, hearing
conservation, exercise, stretching and healthyeating programs. In 2019, we also worked
with our benefits providers to add virtual
health capabilities in Canada and the US.

NORBORD | ESG REPORT 2020

INCENTIVIZING HEALTHY BEHAVIOURS
To further encourage healthy behaviours andlifestyle habits amongst our employees, wecollect biometric data from everyone enrolled
in our US benefits program. This information
is used to provide additional resources
and incentives to improve their individual
biometric scores, and ultimately reduce healthcare costs and incentivize healthy behaviours
for our people. In addition, US employees
can receive additional health care funds when
they commit to safe and healthy behaviours.
In Europe, our Occupational Health teamroutinely monitors employee biometrics,
discusses healthy behaviours during
Health Surveillance Conversations andruns regular awareness campaigns
across our UK mills. Due to the successof these efforts, we have been expanding
our on-site occupational health services
throughout our North American mills.
Goal: With 21% of our US
employees at a high risk levelbased on biometric screening,
our goal is to reduce thepercentage of employees in thehigh and critical risk categories
by 50% by 2025.

25

Peter Quosai, Director, Environment Health and Safety

PROVIDING SUPPORT FOR MENTAL HEALTH
We consider mental health to be just as important as
physical health, and we encourage all employees to lookout for the mental well-being of fellow co-workers, family
members and friends. In 2019, the Stronger Together initiative
prompted the European mills to establish employeedriven Safety Ambassador and Mental Health First Aider
programs. We now have a team of 60 Safety Ambassadors
and a further 20 who volunteered to become Mental HealthFirst Aiders trained by the National Health Service.
In 2020, we began partnering with United Mental Healthin the UK to host awareness sessions for all employees.
The course is designed to educate and increase awarenesswhile providing the tools to help reduce stress andpromote good mental health. These programs have been
particularly useful in addressing stress throughout the
COVID-19 pandemic. Despite the pandemic restrictions, theemphasis on mental health has continued through a seriesof voluntary videoconferencing workshops covering such
topics as stress, responding to change and mindfulness.

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Data
Tables< >Become-a-Framer: Training a New Generation
Framers don’t just install our products; they build our communities. Our training partnerships and media campaign offer
a message of hope to underemployed, underserved American youth.
In 2017, when hurricanes devastated homes and lives in
Texas and Florida, we realized we were uniquely positioned
to help communities rebuild. In keeping with our Thanka-Framer campaign launched just a month earlier, wedonated $1.1 million to the Home Builders Institute (HBI)
to go towards training new construction professionals.

In 2020, we are redoubling our efforts with $200,000
in new investments that will continue to support
the HBI programs and help access additional
funding from US government programs.

As the industry continued to face a skilled labour shortage,in 2018, we reinforced our commitment to training newframers through our partnership with HBI. We also launched
a new video and multimedia campaign, highlighting the
supply chain and demonstrating the importance of thethousands of framers who work to install our products safely
and efficiently. Our videos on social media, in English andSpanish, have garnered over seven million views since 2017.

“Thankfully with HBI and Norbord creating this freeprogram and giving me a chance to actually excel,
that is something I never thought was possible.
And to this day I am still amazed by it. Knowingthat I now have a business and it’s because of thisprogram, I am eternally grateful.”

In 2019, following the success of Thank-a-Framer, welaunched Become-a-Framer to continue championing framing
as a viable career option and get more young people into
the building trades. This campaign targeted unemployed,
underemployed and underserved youth with messagesof hope for a better future with a career in framing.
Since its launch, our association with HBI has become an
integral part of our community development strategy.
This funding provides valuable long-term jobs, offers
support for those who need to rebuild, and helps toease the industry’s labour shortage. By investing in
training, we’re also supporting our customers – frombuilding materials dealers to the builders who buy
their products, from small businesses employing
a single framing crew to major developers whoplan, build and market entire neighbourhoods.

NORBORD | ESG REPORT 2020– D AHLEAH MOORE,HBI THANK-A-FRAMER GRADUATE

171

program graduates since 201877%

placement rate87%

of placements in theframing/carpentry industry

26

Bo McBride, Production Manager at Nacogdoches, Texas
mill, and Dahleah Moore, HBI Thank-a-Framer graduate.

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and Culture

Being Resource Efficientand Carbon Net Zero

Being Resource Efficientand Carbon Net Zero
Doing more with less and being part of the climate solution by regenerating
our forests for generations to come.

6,000 ktof carbon sequesteredin 2019NORBORD | ESG REPORT 2020

82 kg

CO2e/Msf-3/8" GHG
emissions intensity
company-wide(Scope 1 and 2)

100%
sustainably
sourced fibre

27

About
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Data
Tables< >CEOMessage

About
NorbordOur Sustainable
Advantage

OUR STRATEGIC AMBITIONS
We make the most of trees –bringing affordable and accessible
circular economy solutions home.
• Climate change. We design
resilient products, made to last for
the life of your home with zero
impact on the climate – and webelieve green buildings should bewithin reach of everyone.
• Sustainable forestry andbiodiversity. We promote theprotection of biodiversity andsustainable forest management.
• Resource efficiency andcircularity. We optimize the useof wood fibre and materials
across our value chain.

Risks and
Opportunities

Strategic
Orientation

Our ESGAmbitions

Building WorldClass Facilities

Empowering People
and Culture

Being Resource Efficientand Carbon Net Zero

Growing a More Circularand Sustainable WorldWe are committed to sustainable resource management
and having a net-positive impact on the environment.
We recognize that our environment is fundamental to our existence.
Our business and the communities where we operate depend upon
its health. We’re also aware that our operations have the potential
to cause environmental harm. Not only do we want to minimize
possible adverse impacts, but we believe we have the potential to
make a net-positive contribution to the natural environment.
Our business is built on the responsible use of a natural, renewable
resource: trees. It’s imperative that we take care of that resource
by ensuring we get our wood from sustainably managed
forests and use this resource as efficiently as possible.
Taking responsibility is also about protecting natural ecosystems as awhole. We’re partnering with organizations to learn more about habitats
and wildlife in the areas of our operations, taking steps to mitigate
the effects of our activities and supporting biodiversity projects.
We are also aware that although our wood products sequester
carbon, some aspects of our operations generate greenhousegases. We are therefore working hard to reduce our dependence
on fossil fuels by investing heavily in generating process heat fromwood waste that cannot be otherwise used in our products.

About
This Report

Data
Tables< >KEY HIGHLIGHTS

17%
reduction in global criteria
pollutant emission intensity
since 20171

77%

of energy consumed fromrenewable sources

100%

of fibre in North America
sourced from certified
sustainable sources(SFI®, PEFC™)“We’re focusing on the closed-loop process and promoting thesustainability of timber-based products as renewable resources
as part of the circular economy.”– S TEVE ROEBUCK, DIRECTOR OF HEALTH, SAFETY & ENVIRONMENT,NORBORD EUROPE

NORBORD | ESG REPORT 2020

28

1 ”Criteria pollutants” refer to pollutants
regulated under the US Clean Air Act
and include: particulate matter, volatileorganic compounds, carbon monoxide,
nitrogen dioxide and sulfur dioxide.

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Data
Tables< >Sustainable Forests Management
We are committed to the responsible sourcing of our wood fibre.
Our business starts with trees. Our long-term
success is based on the vitality and productivityof the forest. We procure fibre from a variety
of sources: we manage forest lands throughagreements with the government, we purchasetimber from private family and industrial
landowners and public agencies, and we buy
wood chips and other wood fibre as well as
recycled materials on the open market.
In the US, logs are primarily sourced fromprivate and industry-owned woodlands. In
Canada, we hold forest licences and agreements
to source logs from Crown timberlands, which
are supplemented by open market and private
purchases. In Europe, wood fibre is purchasedfrom government and private landowners.
SUSTAINABLE FORESTRY POLICIESOur Wood Procurement Policy ensuressustainable forest management principles
are entrenched in our culture. Our commitment
to the practice of sustainable woodprocurement is realized through constructive
interaction with forest landowners, wood
producers, logging contractors, forestry
professionals and our customers.

THIRD-PARTY CERTIFICATIONS
Third-party certification of wood procurement
and forest management practices is integral tomaintaining and improving forest ecosystems.
Each of our operations employs the certification
system best suited to the expectations of
our wood suppliers, customers and local
stakeholders. We hold third-party verified
Sustainable Forest Management and Fiber
Sourcing certification from the Sustainable
Forestry Initiative® (SFI®) program, and chainof custody certificates from SFI, the Forest
Stewardship Council® (FSC® – C023585,
FSC® – C012533) and the Programme for theEndorsement of Forest Certification (PEFC™).

100%

COMMITTING TO THE PRACTICE OF SUSTAINABLE FORESTRY
We believe that the procurement of forest resources should
be managed to optimize the yield of wood fibre while
protecting forest health and respecting the needs of otherforest users as well as all applicable forest management
legislation.
Formalized in our Wood Procurement Policy, our sustainable
forest practices are designed to achieve these goals. Such
practices include but are not limited to:of our products in the UK
are FSC® certified• Periodically assessing forest management practices tofoster continual improvement• Supporting training of wood producers and promoting theuse of forestry professionals• Measuring and reporting on our performance to senior
management and select certification bodies
To learn more, see our Wood Procurement Policy.

NORBORD | ESG REPORT 2020

29

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Data
TablesResponsible Fibre Sourcing
Norbord sets strict standards for wood suppliers and regularly monitors them to ensure
they meet the company’s standards for safety and sustainable forest certification.

27%

58%

of Norbord’s North American round wood fibre is procured
from lands certified to SFI® forest management standardsof Norbord’s wood fibre is sourced
from small private woodlands

WOOD PROCUREMENT BY OWNERSHIP (%)
CanadaUS

EuropePublic (controlled)

59

0

0

Public (non-controlled)

18

9

34

Private

23

90

44

Other

0

1

22

CanadaUS

EuropeWood from certified land

57

7

39

Wood from non-certified land

43

93

19

Certified recycle/residual

0

0

35

Non-certified recycle/residual

0

0

7

CANADAUSEUROPECANADAUSEUROPEWOOD PROCUREMENT BY CERTIFICATION (%)

NORBORD | ESG REPORT 2020

30

< >

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Tables< >Biodiversity Preservation
In the forest lands that we manage, we aim to have a net-positive impact on biodiversity by supporting habitat protection
initiatives and the sustainable management of forests.

PROTECTING MIGRATORY BIRDS
We are working with the University of Alberta on a
migratory bird project. The data will help to improveforest management planning models, increase habitat
connectivity and decrease habitat loss. Norbord
delays forest harvesting activities in Alberta until after
August 1 to mitigate the risk of destroying bird nests
with fresh hatchings. We are also working with a local
birding group and biologist in Grande Prairie, Alberta
to identify nesting areas to protect bird species at risk.

CONSERVING GRIZZLY BEARSOver the past few years, we have been funding theFoothills Research Institute (fRI Research) Grizzly Bearprogram, which provides knowledge and planning
tools to ensure the long-term conservation of grizzly
bears in Alberta. We use these tools in the harvest
planning phase to determine how forestry activities
will affect grizzly bears and their habitat, and where
needed, we apply strategies to mitigate the impact.

Goal: Develop baseline biodiversity and human footprint
assessment within our Alberta forest management area

NORBORD | ESG REPORT 2020

31

RESEARCHING CARIBOU PATTERNSIn response to the draft caribou plan released by
the Province of Alberta, we have been proactive inincorporating recommendations where our operations
overlap with multiple Caribou Range Zones in ourHigh Level, Alberta management area. As a result,
we are working with our partners in the High Level
Forest Management Agreement area to model new
harvest timing sequences within these zones.

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ENSURING FOREST REGENERATION
In northern North America, mostof our fibre comes from aspendominant forest stands. Aspen
naturally regenerates quickly and mosteffectively without planting seedlingsor the need for herbicides. However,for this to occur, careful planningneeds to be implemented. Our Western
Woodlands group conducts detailed
reviews of digital remote sensing
data and completes pre-harvest forest
surveys to evaluate soil types andplant communities to plan harvest
timing and ensure all ecologicalvalues are understood. Although thisprocess adds time and cost to theplanning phase, it contributes to ourability to achieve 100% regeneration
success following harvest.
Within the communities where
Norbord operates in the US, private
forestland ownership is not only an
important source of income for manyfamilies, it is a cultural foundationthat connects people to the naturalenvironment and ensures thattraditions of resource conservation,
multiple use and recreation are passed
down from generation to generation.
We procure 90% of our fibre in the
US from private sources – 80% of
this fibre comes from family-owned
land. As part of our commitment toforest certification, we only buy from
responsibly managed forests andNORBORD | ESG REPORT 2020

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encourage landowners to regenerate
the forest. The success of these efforts
is reflected in forest resource metrics
that are published by the USDA
Forest Service and that are routinely
evaluated wherever we procurematerials for our operations. The forest
resource data for the states in which
we operate indicate that the amountof productive forest is not only being
replenished, but is increasing. Overthe last 25 years, in the states in which
we operate, the area of productive
timberland has not been reduced andthe standing inventory of the species
that we rely on for our manufacturing
process has increased by 56%.
In the UK, round wood logs are
sourced from both public andprivate woodlands. In either case,woodlands management is subject toenvironmental impact assessments
and harvesting cannot be completed
without a government-issued felling
licence. These statutory requirements
include strict requirements forreforestation; therefore, virtually 100%of the area harvested for our wood
supply is regenerated into productive
forest or restored to native woodland.

80%
of our fibre in the US procured
from private family landowners
32

Empowering People
and Culture

Being Resource Efficientand Carbon Net Zero

About
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Data
Tables< >CEOMessage

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NorbordOur Sustainable
Advantage

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Orientation

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Building WorldClass Facilities

Empowering People
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Being Resource Efficientand Carbon Net Zero

About
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Data
Tables< >Pursuing Carbon Net Zero
We are committed to creating a forest positive future, while reducing the carbon emissions of our operations.
We recognize that we all have a roleto play in curbing climate change.
A few years ago, we strengthened
our data collection systems andestablished a comprehensive GHG
inventory guided by the recognizedinternational standard ISO 14064-1
and the World Resources InstituteGreenhouse Gas Protocol. We use
this data to monitor our progress.
In 2019, our global operations
accounted for approximately
662 kilotonnes of CO2e of Scope 1
and 2 emissions, representing a 7%
decrease in gross emissions compared
to 2018. Meanwhile, our products
during the same period sequesteredapproximately 6,000 kilotonnes of CO2e.
For us, energy is a key manufacturing
input in the production of wood
panel products. This is why weare working hard to cut our GHG
emissions by reducing our energy
consumption and where possible
eliminating the use of fossil fuels.
RENEWABLE ENERGYOver the years, we have been
converting our gas-fired systems
to biomass so that we can recoverenergy from the wood residue that
we generate and put it back into ourmanufacturing processes. Today,

NORBORD | ESG REPORT 2020

every mill uses biomass for theirprimary thermal energy source andapproximately 75% of the energy used
to produce our wood panel products
is derived from these wood residues.
As a whole, we use 1.5 million metrictonnes of biomass every year forenergy – that’s the equivalent of
about two million barrels of oil.

TRANSPORTATION OPTIMIZATION
We recently completed severaltransportation projects that are
driving greater efficiency and carbon
reductions in our supply chain. For
instance, a pilot program where we’ve
installed weigh scales directly in ourloading bays has helped to avoid extra
trips to and from customers, reduced
truck turnaround times and avoids
both underweight and overweighttrucks. This initiative has cut costs andresulted in a 5% reduction in truck
loads from our Joanna, South Carolina
mill. Over the next few years we plan
to implement the same approachat several of our mills in the US.

“For us, carbon reduction andenergy efficiency go hand-inhand. Currently, all our investment
decisions are made so that we do
not have to burn fossil fuels.”– ALAN MCMEEKIN, SENIOR VICE PRESIDENT,NORBORD, EUROPE

We continue to optimize our logistics
strategy to make the best use of trucks
and rail cars. In 2019, 39% of our North
American shipments were transported
by rail. In the UK, this has historically
been lower – but we have been working
with providers with the intent toshift more finished products leaving
Inverness from truck to rail. We expectthat this will reduce outbound transport
emissions from that mill by 20%.

ENERGY EFFICIENCY
We have been investing in numerous
projects to improve energy andcarbon efficiency. In 2019, we began
implementing LED lighting conversion
projects and now over 90% of ourfacilities are lit by high-efficiency
LEDs. These projects will result ina further savings of 10,000 MWhannually. This is just one element ina pipeline of improvement projects
which have identified approximately$10 million in possible projects todate that will result in 6% emission
reduction and annual savings of$2.5 million once implemented.
33

Approximately

90%

of our facilities are lit byhigh-efficiency LEDs

10,000 MWh
per year annualized reduction
in energy use from LEDs

5,838

kilotonnes CO2e sequesteredin our products in 2019

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Data
Tables< >Carbon Reduction

1%2,000,000

1,828,968
1,737,162

1,171,218

1,600,000
1,400,000

1,074,746

1,120,226

1,079,257

19%
2%
5%
18%

1,200,000
1,000,000
800,000

200,000
0

manufacturing materials
in our operations – which
Scope 1 GHG emissions, directachieve both cost andemissions savings.

60

Canadakg CO2e/Msf-3/8"
panel (excludes
Scope 3)55%

600,000
400,000

EMISSIONS INTENSITY AT A GLANCE
We’re optimizing ourlogistics to makeWe’rethe optimizing our logistics tobest use of trucksmake
and the best of trucks and railcars. We’ve also invested in Scope 1 GHG emissions, direct
rail cars. We’ve also
technology to reduce the use of
Scope 2 GHG emissions, indirect
invested in technology
resigns toand waxes – criticalmaterials in our
reduce the use ofmaunfacturingresinsoperations – which achieve73%
both
27%
and waxes – criticalcost and emissions savings.

UpstreamAbsolute GHG Emissions (tCO2e)

1,800,000

Downstream

In 2019, we achieved a 6% reduction in our absolute direct and indirect emissions, with energy being a key input inour manufacturing process. We continue to optimize our value chain to reduce our upstream and downstream emissions,which represent a significant source of GHGs.

359,164

366,61573%27%342,700

CO e/Msf-3/8"
68 kg
panel (excludes
2

Europe303,252

342,127

295,261

2017

2018

2019

Scope 1 GHG emissions, direct
Scope 2 GHG emissions, indirect
Scope 3 GHG emissions, upstream
and downstream

NORBORD | ESG REPORT 2020

Packaging materials
Third-party transport (outbound)
Other (waste, employee air travel, leased fleet)
Third-party transport (inbound)
Forestry operations
Manufacturing materials

34

54%

Scope 3)46%kg CO e/Msf-3/8"
104 panel(excludes
2

US

Scope 3)

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Data
Tables< >Energy Efficiency
77% of our heat energy requirements are met by renewable sources. With the use of residual biomass fromthe production process, emissions per panel produced continues to decline despite greater energy use.

228

228

1,160

226

1,140

1,133

1,133

1,120

222

1,100

1,100

224

221

220

1,080
1,060

218

218

1,040

216

1,020

214

1,000

2017

2018

2019

Emissions Intensity (kgCO2e/MSF 3/8 inch)

Energy Intensity (kWh CO2e/MSF 3/8 inch)

1,180

Energy use
at a
ENERGYUSE AT
A glance
GLANCE230

1,200

Direct energy, renewable sources
Indirect energy, renewable sources

94%
44%
CanadakWh/Msf-3/8"
panel

1.1

kWh/Msf-3/8"
panel

71%
33%
Europe212

Average energy intensity (kWh/Msf-3/8")
Average emissions intensity (kgCO2e/Msf-3/8")

81%
19%
US

NORBORD | ESG REPORT 2020

1.0

35

1.3 kWh/Msf-3/8"
panel

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Data
Tables< >Committed to the Task Force on Climate-related
Financial Disclosures
We believe the transition to a low-carbon economy is critical for our sustainable future. We are committed to providing
comparable decision-useful information on how we are addressing climate change in our business consistent with the Task
Force on Climate-related Financial Disclosures (TCFD).
GOVERNANCE

STRATEGY

What governance processes
are in place to manage climaterelated risks and opportunities?

How do climate-related risks
and opportunities impact
the business, strategy andfinancial planning?

The highest level of oversight on
ESG-related risks and opportunities is
assigned at the Board level throughour Environment, Health & Safety
and Sustainability (EHS) Committee.
The Committee plays a pivotal role inensuring that policies and procedures
are in place to manage environmental
matters, including climate-related
physical and transition risks andopportunities such as energy efficiency
and GHGs emission reduction. The
Committee meets three times per
year to obtain updates on climaterelated and other matters, and canmeet on an ad hoc basis as required.
Resulting actions are delegated to
management with the oversightof our Chief Executive Officer.

NORBORD | ESG REPORT 2020enabled our European mills to comply
with energy efficiency targets andcreate carbon credits and renewable
heat incentives (RHI). Since 2005,
surplus credits traded on environmental
exchanges and RHI payments
have resulted in approximately£7 million in additional income.

To date, we have not identified
climate change–related physical ortransition risks and opportunities to be
substantive to our business. Extreme
weather, wildfire and the effects offorest-related insects and disease may
impact our operations; however, theserisks are not considered substantive
given the inherent geographic
diversification of our business.

RISK MANAGEMENT
How are climate-relatedrisks identified, assessed
and managed?
Historically, climate-related risks havebeen identified and discussed throughroutine management discussions.
Earlier in 2020, we initiated a formal
climate change scenario analysis of thephysical and transition risks that could
impact our business. We are reviewing
risks and opportunities over a short-,
medium- and long-term time horizonand exploring future climate scenarios
as defined through the International

Transition risks such as policy, market
and technology factors have typicallypresented opportunities as opposed
to risks. We continue to explore
opportunities to increase our biomass
use and further reduce dependence on
fossil fuels for our operations. Biomass
heat energy generating units have

36

Energy Agency. The results will informfuture decisions related to climaterelated risks and opportunities.

METRICS AND TARGETS
What metrics and targets are used
to assess and manage climaterelated risks and opportunities?
Our European operations arecommitted to a 9% improvement target
as part of their participation in the UK
Climate Change Levy and EU Carbon
Trading scheme and we are currently
exploring developing enterprisewide science-based targets. We arecommitted to monitor, measure andreport our carbon emissions based on
Scope 1, 2 and 3 emissions, as wellas energy consumption and carbon
sequestration in our products. For
more information, please refer to our
ESG data table in this report and our
CDP reports posted on our website.

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Data
Tables< >Resource Efficient
We are committed to continually improving our processes to minimize waste and use resources as efficiently as possible.
How efficient we are with raw materials
is critical to us in terms of bothprotecting the environment and beinga low-cost operator. To this end, we’recontinually looking for ways to improve
our processes and do more with less.
We aim to reuse, recycle and recovermaterials as much as possible.
RECYCLED WOOD
In addition to sustainably sourcing virginfibre, we use alternative sources of wood
fibre, including recycled and industrial
residual fibre, in the manufacture ofparticleboard and MDF. Not only does
recycled fibre reduce costs, but it helps
conserve natural forests, reduces thevolume of material going to landfill andis drier than virgin ﬁbre, requiring lessenergy to process. We are the largest
recycler of wood residues in the UK.

Today, we use 99.1% of the tree – and are always
looking for new ways to put materials to use.

MATERIAL OPTIMIZATION
We have optimized our processes insuch a way that today we effectively
use 100% of the tree. The best woodgoes into making boards, while any
wood that can’t be used in the productserves to generate energy. Over theyears, we’ve invested over $25 million
in screening technology that allows
us to separate non-primary wood into
different streams, so we can reduce theuse of resins and waxes and minimize
the amount sent to be burned.

0.9%

Investments in automation to reduce
variability in our manufacturing
process are enabling us to improve ourprocesses so that we can make the same
quality product using less material.

In 2019, we used

278,000

metric tonnes of post-consumer wood fibre1

257,000

metric tonnes of industrial residual fibre2
1 Material reclaimed after being used in crating, pallets, window and door frames, and other building materials.
2 Such as chips and sawdust.
NORBORD | ESG REPORT 2020

37

Lost aswaste ash

12.6%

Converted to
useful biomass,
including energy
for our mills

86.5%

Turnedinto OSBCEO
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Data
Tables< >Embracing the Circular Economy Through Innovation
in Recycled Wood Fibre
Norbord began introducing recycled wood into its particleboard manufacturing process more than 25 years ago, buying scrap
softwood chippings from recycling companies and adding the cleaned fibre to its production line. Today, this raw material forms
the basis of Norbord’s successful CaberBoard range of products, which includes CaberDek moisture-resistant tongue-andgroove flooring and Conti decorative-faced particleboard.
Over the years, Norbord has steadily increased
the proportion of this material in the CaberBoard
production process from a modest 10% feedstock to
its current level of 70%–80%.
“Particleboard has always used what you mightcall ‘scrap’ wood,” explains Ian Lawrence, TechnicalManager at Norbord’s South Molton mill, where Conti
is produced. “Traditionally, it’s made from sawmill
co-products such as sawdust, wood chips and smaller
trees from forest thinning operations. But the use ofrecycled wood is really a Norbord innovation,” he adds.
Using waste timber such as crating, pallets, window
and door frames, and other building materials helps
to reduce costs and also has significant environmental
benefits. Reusing scrap wood diverts the material fromthe waste-stream; instead of being incinerated or buried
in a landfill site, the recycled fibre is turned into a usefulproduct. The recycled wood used is also independently
audited as originating from post-consumer operations
and is therefore certified as FSC-approved material.

“The main issue is contamination,” he says.
“Recycled wood has to be cleaned of metalfragments like nails, screws and staples.”“Over the years, we’ve perfected the process and
now we can offer the best quality product with ahigh recycled content,” he adds. ”Only good quality
fibre is allowed to enter the feedstock. Low quality
material is used to provide energy on-site.”
Norbord Europe has also adopted 100% recycled
packaging for its market-leading board products.
These innovations reflect Norbord’s environmental
policy which includes a commitment to“continual improvement in our environmental
performance and management of forest land.”In the face of a growing need to conserve
resources and minimize our impact on theenvironment, it’s good to know that it is possible
to produce valuable building products usingmaterials that were once regarded as waste.

However, recycled wood is significantly different
to fresh wood and this must be taken into accountin the production process, says Lawrence.
Builders install Norbord CaberDek particleboard flooring.

NORBORD | ESG REPORT 2020

38

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High

Data
Tables< >Very HighOB

SETTING THE CONTEXT
In conjunction with a third-party consulting firm with expertise in sustainability
reporting, we developed this ESG report in alignment with leading
sustainability frameworks and international reporting standards, including the
Global Reporting Initiative (GRI) Sustainability Standards, the Sustainability
Accounting Standards Board (SASB) and the Task Force on Climate-related
Financial Disclosures (TCFD).

M

IMPORTANCE TO STAKEHOLDERSH

The report covers the calendar year 2019 for all quantitative data. Qualitative
data generally reflects 2019 accomplishments, as well as some key highlights
during the first and second quarter of 2020. Financial references are in US
dollars unless otherwise indicated. Information contained in this report wascompiled in advance of the announced acquisition of Norbord by West Fraser
and represents Norbord activities only.

D
N

C
F
K
A

E
L
J

I
G

ALIGNING TOPICS WITH STAKEHOLDER EXPECTATIONSIn developing the content of this report, we prioritized the topics that weremost relevant to our stakeholders and to our business.

IMPORTANCE TO NORBORD

We started our prioritization assessment with an analysis of industry trends
and priorities to identify an initial list of potential sustainability topics.
We conducted in-depth interviews with our executive leadership teams tounderstand the topics that mattered most to our business. We supplemented
the analysis with topics relevant to our stakeholders through an in-depth
desktop review with key customers, suppliers and interviews with investors.
We then worked with our executive leadership team to review the relative
importance of the topics, taking into account our business purpose alongside
a careful assessment of their importance to our stakeholders. The structureof this report highlights the main topics and shows how these relate to our
corporate strategy and the UN Sustainable Development Goals (SDGs).

Building worldclass facilities

A. Sustainable Procurement

J. Resource Efficiency

B. Diversity

K. Talent Management

Empowering
people andcultureC. Health and Safety

L. Responsible Management

D. Stakeholder Outreach

M. Technology and Innovation

E. Biodiversity

N. Community Development

Being resource
efficient andcarbon net zero

F. Quality Customer Service

O. Ethics and Compliance

G. Resilience
H. Climate Change
I. Cyber Security

NORBORD | ESG REPORT 2020

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Being Resource Efficientand Carbon Net Zero

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About
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Data
Tables< >Disclosure Index
Our disclosure has been informed by the requirements outlined by the Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB). This
context index accompanies our 2019 ESG Report and provides a reference point for all data reported in 2019 in partial alignment with these disclosure frameworks,
describing indicator-specific omissions where applicable.
DISCLOSURE

Section or Content Reference

Identified Omission(s)102-1: Name of the organization

2019 Annual Report

Full disclosure102-2: Activities, brands, products, and services

ESG Report – About Norbord

GENERAL DISCLOSURES

102-3: Location of headquarters
102-4: Location of operations
102-5: Ownership and legal form
102-6: Markets served
102-7: Scale of the organization
102-8: Information on employees and other workers

ESG Report – About Norbord

Partial disclosure

ESG Report – Data Tables – Social – Employees by Region and Gender102-14: Statement from senior decision-maker

ESG Report – CEO Message

Full disclosure102-15: Key impacts, risks, and opportunities

ESG Report – Risks and Opportunities

Partial disclosure

ESG Report – Being Resource Efficient and Carbon Net Zero – Committed to the TCFD
102-16: Values, principles, standards, and norms of behaviour

2019 Annual Report

Full disclosure

ESG Report – CEO Message
ESG Report – Strategic Orientations
ESG Report – Building World-Class Facilities
ESG Report – Empowering People and Culture
ESG Report – Being Resource Efficient and Carbon Net Zero
102-18: Governance structure

ESG Report – CEO Message

102-20: Executive-level responsibility for economic, environmental, and social topics

ESG Report – Being Resource Efficient and Carbon Net Zero – Committed to the TCFD

102-22: Composition of the governance body and its committees

ESG Report – Data Table - Governance102-41: Collective bargaining agreements

ESG Report – Data Tables – Social – Collective Bargaining Agreements

102-46: Defining report content and topic Boundaries

ESG Report – About This Report102-47: List of material topics
102-50: Reporting period

NORBORD | ESG REPORT 2020

Partial disclosure

Partial disclosure
Partial disclosure

ESG Report – About This Report40

Full disclosure

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Data
Tables< >Disclosure Index cont'd
DISCLOSURE

Section or Content Reference

Identified Omission(s)204-1: Proportion of spending on local suppliers

ESG Report – Data Tables – Economic - Suppliers

Full disclosure419-1: Non-compliance with laws and regulations in the social and economic area

ESG Report – Data Tables – Governance – Regulatory Compliance

Partial disclosure

ESG Report – Being Resource Efficient and Carbon Net Zero – Sustainable
Forests Management

Partial disclosure

TOPIC-SPECIFIC DISCLOSURES
Material topic(s): Community Development

Material topic(s): Biodiversity304-3: Habitats protected or restored

ESG Report – Data Tables – Environment - Biodiversity

Material topic(s): Climate Change
201-2: Financial implications and other risks and opportunities due to climate change

2019 Annual Report

Partial disclosure

ESG Report – Risks and Opportunities
ESG Report – Being Resource Efficient and Carbon Net Zero – Committed to the TCFD
305-1: Direct (Scope 1) GHG emissions

2019 Annual Report305-2: Energy indirect (Scope 2) GHG emissions

ESG Report – Being Resource Efficient and Carbon Net Zero – Pursuing Carbon Net Zero

305-3: Other indirect (Scope 3) GHG emissions

ESG Report – Data Tables – Environment – Emissions

Full disclosure305-4: GHG emissions intensity
305-5: Reduction of GHG emissions
305-7: Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions

ESG Report – Data Tables – Environment – Emissions

Full disclosure301-2: Recycled input materials used

ESG Report – Data Tables – Environment – Biodiversity

Partial disclosure302-1: Energy consumption within the organization

ESG Report – Being Resource Efficient and Carbon Net Zero – Energy Efficiency

Full disclosure

CG-BF-103a.1: (1) Total energy consumption, (2) percentage grid electricity, (3) percentage renewable

ESG Report – Data Tables – Environment – Energy

Material topic(s): Resource Efficiency, Sustainable Procurement302-3: Energy intensity
302-4: Reduction of energy consumption
303-5: Water consumption

ESG Report – Data Tables – Environment – Water

Partial disclosure306-1: Waste generation and significant waste-related impacts

ESG Report – Being Resource Efficient and Carbon Net Zero – Sustainable Forests
Management

Partial disclosure306-2: Management of significant waste-related impacts
306-3: Waste generated

NORBORD | ESG REPORT 2020

ESG Report – Being Resource Efficient and Carbon Net Zero – Resource Efficient
ESG Report – Data Tables – Environment – Waste

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Data
Tables< >Disclosure Index cont'd
DISCLOSURE

Section or Content Reference

Identified Omission(s)CG-BF-250a.2: Percentage of eligible products meeting volatile organic compound (VOC) emissions andcontent standards

ESG Report – Data Tables – Environment – Air Emissions

Full disclosure

CG-BF-410a.1: Description of efforts to manage product lifecycle impacts and meet demand for sustainableproducts

ESG Report – Being Resource Efficient and Carbon Net Zero – Resource EfficientPartial disclosure

ESG Report – Building World-Class Facilities – Safety Culture

Partial disclosure403-6: Promotion of worker health

ESG Report – Empowering People and Culture – Health and Wellness

Partial disclosure403-8: Workers covered by an occupational health and safety management system

ESG Report – Building World-Class Facilities – Safety Culture

Partial disclosure403-9: Work-related injuries

2019 Annual Report

Partial disclosure

TOPIC-SPECIFIC DISCLOSURESCG-BF-250a.1: Discussion of processes to assess and manage risks and/or hazards associated withchemicals in products

Material topic(s): Health and Safety403-1: Occupational health and safety management system403-4: Worker participation, consultation, and communication on occupational health and safety403-5: Worker training on occupational health and safety

ESG Report – Building World-Class Facilities – Safety Culture
ESG Report – Data Tables – Social – Health and Safety

Material topic(s): Diversity, Talent Management401-1: New employee hires and employee turnover

ESG Report – Data Tables – Social – New Employee Hires

Partial disclosure

ESG Report – Data Tables – Social – Employee Turnover405-1: Diversity of governance bodies and employees

ESG Report – Empowering People and Culture – Diversity

Partial disclosure

ESG Report – Data Tables – Social – Diversity and Equal Opportunity
ESG Report – Data Tables – Governance – Board Composition

Material topic(s): Responsible Management
CG-BF-000.A: Annual production2019 Annual Report

Full disclosure

ESG Report – Data Tables – Economic – Productivity
201-1: Direct economic value generated and distributed

ESG Report – Data Tables – Economic – Socio-economic Impact

Partial disclosure201-4: Financial assistance received from government

ESG Report – Data Tables – Economic – Socio-economic Impact

Partial disclosure307-1: Non-compliance with environmental laws and regulations

ESG Report – Data Tables – Governance – Regulatory ComplianceFull disclosure415-1: Political contributions

ESG Report – Data Tables – Economic

Partial disclosure

NORBORD | ESG REPORT 2020

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Data
Tables< >Environment
AIR EMISSIONS

Measurement

GREENHOUSE GAS (GHG) EMISSIONS

Metric tonnes (t) CO2e

2019

Direct and Indirect (Energy) Emissions (Scope 1 and 2) (a)

2018

2017

662,416

708,742

637,961

Canada149,112

154,860

152,263US

386,063

422,107346,136

Europe127,240

131,776

139,563

Direct GHG Emissions (Scope 1) (b)

303,252

342,127

295,261

Canada33,92244,15845,731

US

175,927

204,758

144,582

Europe93,402

93,212

104,949

Indirect GHG Emissions (Scope 2) (c)359,164

366,615

342,700

Canada115,190

110,702106,532

US

210,136

217,349

201,554

Europe33,83838,564

34,614Market-based Approach (d)403,053

421,789–

Location-based Approach (e)359,164

366,615

342,700

1,092,066

1,108,855

1,068,770

865,863904,288893,859

Other Indirect GHG Emissions (Scope 3)
Upstream Emissions
Third-party Transport (Inbound) (f)56,82854,04549,703

Forestry Operations (g)190,252

195,751

190,961

Manufacturing Materials (h)592,546

635,050

628,977

25,614

18,82723,537

Employee Air Travel (j)

434

420

486

Leased Fleet (k)

190

195

195

Downstream Emissions

208,883

215,938

185,398

Third-party Transport (Outbound) (I)

199,420

205,752

175,060

9,463

10,186

10,338Waste (i)Packaging Materials (m)NORBORD | ESG REPORT 2020

43

GRI
301-2

305-4

SASB

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Data
Tables

2017

GRI

< >

Environment cont’d
AIR EMISSIONS CONT’D

Measurement

2019

2018

GREENHOUSE GAS (GHG) EMISSIONSGHG Emissions Intensity (n)kgCO2e/Msf-3/8"

305-4

Total Emissions Intensity (Scopes 1, 2 and 3)

216

221

216

Canada

206

204

194

US

216

225

216

Europe

227

234

245

Direct and Indirect (Energy) Emissions Intensity (Scopes 1 and 2)

82

86

80

Canada

60

61

59

US

104

109

97

Europe68

71

76

Direct Emissions Intensity (Scope 1) (b)

38

41

37

Canada

14

17

18

US

47

53

41

Europe5050

58Indirect (Energy) Emissions Intensity (Scope 2) (c)

45

44

43

Canada

47

43

41

US

56

56

57

Europe18

21

19

Other Indirect GHG Emissions Intensity (Scope 3)

133

135

136

Canada

146

143

135

US

113

116

119

159

163

168

-7%

11%

–

EuropeGHG Absolute Reductions (Scope 1 and 2) Year over Year (o)NORBORD | ESG REPORT 2020

tCO2e

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Data
Tables< >Environment cont’d
AIR EMISSIONS CONT’D

Measurement

2019

2018

2017

NOx, SO2 AND OTHER EMISSIONS (p) (q)Nitrous Oxide (NOx)Metric tonnes

Nitrous Oxide (NOx) Intensity by Geography

Grams/Msf-3/8"

2,540

2,547

2,514

315

307

316

Canada (q)

405

402

451

US

260

240

214

Europe

299

318

324

115

135

130

14

16

16

136

–

–

Sulphur Dioxide (SO2)

Metric tonnes

Sulphur Dioxide (SO2) Intensity by Geography

Grams/Msf-3/8"

Canada (r)US (s)

13

16

16

Europe

32

37

38

1,485

1,700

2,198

Particulate Matter (PM)Metric tonnes

Particulate Matter (PM) Intensity by Geography

Grams/Msf-3/8"

184

205

276

Canada (t)

378

394

608

US

128

126

134

Europe (u)

40

110

84

Carbon Monoxide (CO)Metric tonnes

4,369

4,550

5,847

Carbon Monoxide (CO) Intensity by Geography

Grams/Msf-3/8"

542

549

735

Canada (t)

849

850

1,359

US

287

290

302

Europe

645

682

695

NORBORD | ESG REPORT 2020

GRI
305-7

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Data
TablesGRI< >Environment cont’d
AIR EMISSIONS CONT’D

Measurement

2019

2018

2017

Formaldehyde

Metric tonnes

302

266

288

Formaldehyde Intensity by Geography

Grams/Msf-3/8"

37

32

36

53

62

66

SASB

NOx, SO2 AND OTHER EMISSIONS (p) (q)CanadaUS (v)

4

6

6

Europe

92

103

112

Volatile Organic Compounds (VOC)

Metric tonnes

2,291

2,674

3,339

Volatile Organic Compounds (VOC) Intensity by Geography

Grams/Msf-3/8"

284

323

420

326

474

656

US

137

132

196

Europe

524

512

522

Canada (t)Eligible Products Meeting VOC Emissions
and Content Standards (w)Percentage

N/A

N/A

N/A

CG-BF-250a.2.

Eligible Products Meeting Formaldehyde Emissions
and Content Standards (x)Percentage

100%

100%

100%

CG-BF-250a.2.

NORBORD | ESG REPORT 2020

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Data
TablesGRI< >Environment cont’d
ENERGY

Measurement

Total energy consumption (direct and indirect)

Megawatt hours (MWh)

2019

2018

2017

9,045,596

9,994,935

8,844,314

77%

77%

78%

Total energy consumption

6,989,117

7,724,528

6,881,067

Non-renewable sources

23%

23%

22%

8,151,457

9,055,776

7,990,899

Canada2,178,497

2,275,932

2,463,179

US

4,351,394

5,057,702

3,795,405

Europe1,621,566

1,722,142

1,732,315

Renewable sources

Direct energy consumption (x)Megawatt hours (MWh)Non-renewable sources

17%

18%

17%

1,327,436

1,520,743

1,280,081

LPG

15,023

21,573

21,274Gasoline

2,243

2,940

1,968

Diesel

59,52451,434

59,183

Fuel Oil

2,034

2,341

1,636

Natural gas

Renewable sources
Biomass

83%

82%

83%

6,745,417

7,456,745

6,626,977

Canada2,094,351

2,138,143

2,322,970

US

3,504,410

4,065,666

3,109,844

Europe1,146,655

1,252,936

1,194,163

894,139

939,159

853,415

Indirect energy consumption (y)Megawatt hours (MWh)Non-renewable electrical grid power
All geographies

Renewable electrical grid power (z)

73%

71%

70%

650,439

671,376599,325

27%

29%

30%

Canada (aa)130,037

145,191

142,880

US66,866

69,11563,287

Europe46,79753,47747,923NORBORD | ESG REPORT 2020

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Data
Tables< >Environment cont’d
ENERGY CONT’D

Measurement

2019

2018

2017

GRI

Total energy intensity per Msf-3/8" by geography

MWh/Msf-3/8"

1.1

1.2

1.1

302-3

Canada

1.0

1.0

1.1

US

1.3

1.4

1.2

Europe

1.1

1.0

1.0

2,095

1,521

1,650

WATER
Water Consumption (bb)Megalitres

Geography

Megalitres

CanadaUS
EuropeIntensity

298

399

398

1,262

816

922

535

306

330

260

183

207

Canada

121

156

154

US

339

210

259

Europe

288

165

181

1,592

1,240

1,250

Groundwater

364

210

290

Surfacewater

139

71

110

SourceLitres per Msf-3/8"

Megalitres

Municipal

NORBORD | ESG REPORT 2020

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303-5

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Data
Tables< >Environment cont’d
WASTE

Measurement

2019

2018

2017

GRI

Waste Generated (cc) (dd)Metric tonnes

190,154

155,075

175,254306-1, 3

190,154

155,075

175,254

Geography
Canada (ee)72,20135,674

31,625

US

102,789

96,755

129,630

15,164

22,64613,999Europe (ff)

Waste Type
Hazardous Waste
Non-Hazardous Waste

Waste Intensity

Kilograms/Msf-3/8"

629

1,592

1,757

189,525

153,483

173,497

24

19

22

Canada

29

14

12

US

28

25

36

Europe8

128

NORBORD | ESG REPORT 2020

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Data
Tables< >Environment cont’d
BIODIVERSITY

Measurement

Seedlings Planted

Number

2019

2018

2017

164,280

Canada (gg)294,920301-2
10,32910,493

10,220

9,794

9,936

9,718

Post-Consumer Recycled Fibre

278

272

246

Industrial Residue Fibre

257

285

256

57%

–

–

US

7%

–

–

Europe39%––

Canada

100%

–

–

US

100%

–

–

Europe85%––000s Metric tonnes

Virgin Fibre

Fibre Sourcing

Percentage

Fibre Sourced from Certified Forest Lands (hh)CanadaFibre Certified to a Third-Party Standard (ii)NORBORD | ESG REPORT 2020

SASB

178,140

Sustainable Materials
Fibre Consumption

GRI
304-3

50

CG-BF-430a.1.

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Data
Tables< >Environment Data Notes(a) Our GHG inventory has been quantified and guided by the ISO 14064-1 standard and the World
Resource Institute Greenhouse Gas Protocol covering direct (Scope 1), energy indirect (Scope 2) andindirect (Scope 3) sources. The data is consolidated using the operational control approach. It includes datafrom North America and Europe based on a calendar year from January to December. Greenhouse gases
include carbon dioxide, methane, nitrous oxide and HCFC-22 (R-22). We apply global warming potentials
from the Intergovernmental Panel on Climate Change (IPCC), Fifth Assessment Report (AR5), dated 2014.
Emissions values disclosed in prior financial statements are restated, due to a correction of US emissions
factors released by eGRID following publication of our 2019 Annual Report. Prior year data is adjusted
accordingly, representing an immaterial change in total absolute emissions.

(i) Emissions from 13 different waste materials disposed off-site were quantified, including wood waste,municipal, solid waste, sludge, ash, cardboard, inorganics, organics, metals, hazardous, recyclables, oils
and plastics. In 2019, municipal solid waste, wood waste and sludge accounted for nearly 85% of waste
emissions. Emission factors were applied from the EPA Waste Reduction Model (WARM).
(j) Employee air travel relates to travel conducted for business purposes. Emission factors were applied
from DEFRA 2019.
(k) Emissions from leased vehicles consist of annual emissions per vehicle in North America and arequantified based on the US EPA Equivalences Calculator; and the EU vehicle fuel economy derived fromthe average of our EU vehicle fleet.

(b) Scope 1 emissions are associated with on-site combustion of fuels at our manufacturing and corporatesites, covering biomass, natural gas and other liquid petroleum fuels. It also includes fugitive releases ofrefrigerants used in the air conditioning of our buildings and on-site waste management. Emission factors
for fuel combustion were applied from the IPCC 2006 Guidelines, Volume 2: Energy, and for refrigerants
from the IPCC AR5.

(l) Third-party transport outbound consists of transporting the finished wood-based panels from the millto the point where ownership is transferred to the customer. In North America, this is conducted by truck
and rail, while in our European operations this is conducted by truck and ship. Emission factors are applied
from DEFRA 2019.

(c) Scope 2 emissions are associated with purchased electricity at our mills and corporate offices.

(m) Emissions from packaging materials production were quantified for cardboard, plastic and metal
strapping, plastic wrap and wood battens. The emission factors were applied from SimaPro.

(d) Market-based emission factors are supplier-specific. We calculate market-based emission factors forelectricity from our respective utility providers. Factors are not always available for some facilities; inwhich case the location-based factor is used.

(n) Msf-3/8" refers to a standard production measure utilized across the industry and reflects the volume ofwood in 1,000 square feet of standard 3/8 inch thick panel.

(e) Location-based reporting is the primary approach utilized by Norbord, given we do not currently
influence or control low-carbon electricity purchase agreements. We calculate location-based electricity
emission factors from Environment Canada's National Inventory Report (Canada), eGRID 2016 (US),DEFRA 2019 (UK), and International Energy Agency 2013 (Belgium).

(o) Reduction in gross emissions for the 2019 reporting period is primarily related to indefinite curtailmentof OSB production lines in 100 Mile House, British Columbia and Cordele, Georgia.
(p) Unless otherwise noted, all data is drawn from regulatory reports and factors for these reports arederived from site-specific testing.

(f) Third-party transport inbound consists of transporting input wood materials to our 17 sites. In our North
American operations, this is conducted entirely by truck, and in our European operations this is conductedby truck and ship. Emission factors are applied from DEFRA 2019.

(q) Variances in intensities between geographies are primarily due to variances in regulatory frameworks.
(r) 2018 and 2017 are excluded as insufficient emission data was captured for reliable disclosure.

(g) Forestry operations emissions relate to regeneration, thinning and harvesting operations. Emission
factors were applied from the IPCC 2006 Guidelines, Volume 2: Energy, and the Environmental Protection
Agency (EPA) Emission Factors (EF) 2018.

(s) Due to a lack of site-specific SO2 test data, emissions are estimated based on US industry-based
standard.

(h) Emissions from producing non-wood manufacturing materials were quantified, including resins (88%),
waxes (6%) and other materials (6%) (ink, pigment, urea, ammonium nitrate, zinc borate, edge seal, releaseagent and foil). Emission factors were applied from product-related Environmental Product Declarations.

(t) Emission factors for Grande Prairie and 100 Mile House were updated after emission testing conducted
in 2018. Emissions reductions in 2019 are linked to reduced operations in 100 Mile House.
(u) Decrease in PM intensity in 2019 is attributed to the Inverness mill modernization project.

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Data
Tables< >Environment Data Notes cont'd(v) Norbord's North American products are exempt from VOC and formaldehyde content standards, as
their emissions are below thresholds outlined in these standards.

(dd) Due to a lack of robust data, breakdown by disposal methods has been excluded.
(ee) Ash from combustion is routinely stockpiled temporarily on-site to allow for cooling and for seasonal
distribution for beneficial use throughout the year, such as an agricultural supplement. Removal ofstockpiled ash accounted for a portion of the 2019 increase in disposal of ash from combustion of woodbiomass, as the material was unsuitable for beneficial uses.

(w) All European facilities comply with VOC standards laid out in European Standards for Structural Use
Annex B of EN13986.
(x) Direct energy consumption is associated with on-site combustion of fuels at our manufacturing andcorporate sites, covering biomass, natural gas and other liquid petroleum fuels. LNG fuels are excluded.

(ff) Decreases in 2019 are attributable to start-up of the enhanced Inverness line.

(y) Indirect energy consumption is associated with purchased electricity at our mills and corporate offices.
Indirect energy sources reflect the jurisdictional grid mix.

(gg) Norbord’s Alberta mills rely on natural regeneration for reforestation. All seedlings are planted on
Alberta crown land allocations. Seedlings planted can fluctuate year over year as a result of the various
sources used to harvest timber.

(z) Norbord currently does not purchase Renewable Energy Credits.
(hh) Includes fibre sourced from lands certified to third-party forest management standards. Certified lands
are typically public lands, with industrial-owned lands representing a small portion of the total.

(aa) Indirect energy sources reflect the jursidictional grid mix. For example, electricity derived from grids
utilizing hydropower is a notable source of energy in some Canadian operations.

(ii) Includes all certified fibre, including certified fibre to forest management, fibre sourcing, recycledcontent or controlled wood standards.

(bb) Water consumption varies on product type and geography. In North America, water is predominantly
utilized for general purpose cleaning, fire protection, Wet Electrostatic Precipitator (WESP) operation,
steam generation and ash handling. In EU, particleboard and MDF require water for processing, including
chip washing and MDF refining.
(cc) Wastes generated in manufacturing operations comprise: ash from combustion of wood biomass;
WESP sludge; bark and wood waste contaminated by rock, dirt or metal; packaging scrap; and, generalrefuse associated with equipment maintenance and administration. A proportion of this waste is recycled
or reclaimed for beneficial use.

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Data
Tables< >SocialPEOPLE

Measurement

2019

2018

2017

GRI

Number

2,466

2,799

2,822

102-7, 8

Females

10%

10%

9%

Canada

122

133

130

US

62

66

65

Europe59

69

71

Canada

842

1,013

999

US

856

961

962

Europe

768

825

861

2,411

2,737

2,776

Females

10%

10%

10%

Canada

122

133

130

US

62

66

65

Europe59

69

71

Canada

789

962

965

US

854

958

950

Europe

768

817

861

55

62

46

31%

21%

26%

Canada

53

51

34

US

2

3

12

Europe–8–

EMPLOYEES BY REGION AND GENDER
Total Workers (a)By Region

Employees

NumberBy Region

Contractors and Students

NumberFemales
By Region

NORBORD | ESG REPORT 2020

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Data
Tables< >Social cont’d
PEOPLE CONT’D

Measurement

2019

2018

2017

GRI

Employees Covered by Collective Bargaining Agreements

Percentage

36%

69%

52%

102-41

By Region

Number
254

376

372

–

–

–

548

598

636

12%

12%

16%

Canada

120

163

177

US

151

154

249

Europe

35

23

39

23%

–

–

Canada (b)

35%

15%

15%

US (c)

23%

14%

11%

COLLECTIVE BARGAINING AGREEMENTS

CanadaUS
EuropeNEW EMPLOYEE HIRESNew Employee Hire Rate

Percentage

401-1

By Region

EMPLOYEE TURNOVER
Total Employee Turnover Rate

Percentage

By Region

11%

–

–

10%

–

–

Canada

104

101

94

US

119

80

57

Europe (d)Voluntary Turnover

Percentage

By Region

Number

26

–

–

13%

–

–

Canada

174

46

53

US

76

53

49

Europe (d)

59

–

–

Europe (d)Involuntary Turnover

Percentage

By Region

NumberNORBORD | ESG REPORT 2020

54

401-1

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Data
Tables

2017

GRI

< >

Social cont’d
PEOPLE CONT’D

Measurement

2019

2018

ABSENTEEISM
Absenteeism Rate (e)Percentage

By Region
5.9%

6.6%

7.3%

Not applicableNot applicableNot applicable

–

–

–

78%

–

–

78%

–

–

92%

–

–

Canada

92%

–

–

US

96%

–

–

Europe91%––

Canada (f)US (g)
Europe (h)EMPLOYEE ENGAGEMENT
Employee Satisfaction (i)% of respondents

With Availability of Essential Working Tools (j)With Supervisor Engagement and Support (k)Response Rate

% of total employees
actively engaged

102-21

By Region

HEALTH AND SAFETY
Fatalities

Number

0

0

0

403-9

High Consequence Injuries (l)Number

2

1

2

403-9

OSHA Total Recordable Injury Rate (TRIR) (m)Rate

1.3 (l)

0.8

0.8

403-9

Canada

1.2

1.1

1

US (n)

1.5 (m)0.7

0.8

Europe

1.1

0.5

0.5

By Region

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Data
Tables< >Social cont’d
PEOPLE CONT’D

Measurement

2019

2018

2017

GRI

36

24

23

403-9

Canada

12

12

11

US

16

8

8

Europe8

4

4Amputation (o)

0

1

2

Fracture

12

5

4

Cut

14

9

7

Burn

1

0

1

Concussion

0

1

0

Musculoskeletal

4

2

5

Other (Minor Medical Treatment)

5

5

3

–

–

–

Canada

2.1

1.78

1.63

US

1.29

1.4

1.36

–

–

–

HEALTH AND SAFETY
Total OSHA Recordable Work-Related Injuries

NumberBy Region

By Injury Type

Contractor Recordable Injury Rate (p)Rate

By Region

Europe (q)NORBORD | ESG REPORT 2020

56

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Data
Tables< >Social cont’d
PEOPLE CONT’D

Measurement

2019

2018

2017

GRI

–

–

–

405-1

Females

10%

10%

10%

Senior Management

10%

10%

10%

Management

16%

13%

14%

Non-Management

9%

10%

10%

Visible Minorities (s)

19%

–

–

Over 50

39%

42%

43%

Between 30–50

50%

49%

49%

Below 30

11%

10%

8%

DIVERSITY AND EQUAL OPPORTUNITY
Diversity (r)Percentage

Age Groups

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Data
Tables< >Social Data Notes(a) Totals are based on data for the period ending on December 31. Workers are defined as those people
working within the operational control of our organization, and includes contractors and students on payroll.

(k) Employees were asked: "To what extent do you agree that your supervisor is interested and cares about
you as an individual?" and were considered to be satisfied if they responded 'strongly agree' or 'agree'.

(b) Turnover rates increased in 2019 largely due to the indefinite curtailment of the 100 Mile House,
British Columbia mill, which was permenantly closed in 2020.

(l) High consequence injuries are those that result in a fatality or in an injury from which the worker cannot,
does not or is not expected to recover fully to pre-injury health status within six months.

(c) Turnover rates increased in 2019 largely due to the indefinite curtailment of a production line at theCordele, Georgia mill.

(m) The OSHA total recordable injury rate is tracked and calculated based on US OSHA recordkeeping
requirements. The rate has been restated since disclosure in the 2019 Norbord Annual Report. Values arerounded up and exclude contractors.

(d) Due to ongoing HR and payroll systems transformations, reliable data for the purpose of disclosure iscurrently unavailable prior to 2019.

(n) Norbord's OSHA total recordable injury rate is well below the US Bureau of Labor Statistics reported
2019 industry average injury and illness rate of 5.7 for the reconstituted wood panel industry category(NAICS: 321219).

(e) Absenteeism is tracked independently by regions, with different approaches for salaried/payroll andhourly employees.

(o) Amputations are defined as incidents requiring medical treatment where a portion of a bone isremoved. Amputation injuries in 2017 and 2018 were partial, to fingers or thumb.

(f) Includes paid and unpaid leave, 100 Mile House, Barwick, Grande Prairie, and High Level. Excludes
corporate employees.

(p) These figures include the TRIR rates of North American contractor organizations voluntarily disclosing
through Norbord's contractor data management system.

(g) US employees are salaried, therefore absenteeism is not associated with a loss of wages. As a result,absenteeism is monitored and tracked informally through relevant managers.

(q) Reliable data for disclosure is unavailable for European contractors.
(h) Due to ongoing HR and payroll systems transformations, reliable data for the purpose of disclosure iscurrently unavailable.

(r) Due to privacy reasons, ethnic diversity information is currently not collected and distributed for
Canadian and European operations.

(i) In 2019, we administered our first anonymous employee survey. The survey was administered to all
Norbord employees including managers, supervisors, hourly workers and professionals through the
Dupont platform.

(s) For the purpose of this report, visible minorities are defined as including people who self-identify as
American Indian/Alaskan Native, Asian, Black or African American, Hispanic and Latino, and/or two or
more races.

(j) Employees were asked: "To what extent do you agree that you have the tools to do your job?" and wereconsidered to be satisfied if they responded 'strongly agree' or 'agree'.

NORBORD | ESG REPORT 2020

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and Culture

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Data
Tables

2017

GRI

< >

Economic
ECONOMIC

Measurement

2019

2018

SASB

SOCIO-ECONOMIC IMPACT
Economic Impact

US$ millions

201-1, 4

Revenues (a)

1,731

2,424

2,177

Operating Expenses

1,596

1,704

1,509

Benefits and Wages

224

262

245

Government Taxes (b)

42

117

2

–

–

13

–

–

–

415-1

8,057

8,288

7,958

102-7

Government Financial Assistance (c)Political Contributions

US$ millions

PRODUCTIVITY
Annual Production (d)MMsf-3/8"

Geographic Reach

Number

102-7

Total Number of Countries Where We Operate

5

5

5

Total Number of Mills

17

17

17

Canada

6

6

6

US

7

7

7

Europe444Number

15,488––

North America

Number12,600––––Countries Where We Operate Mills

SUPPLIERS
Total Local Suppliers (e)By Region (f)Local Suppliers as Percentage of Total

Percentage

99%

EuropeNumber2,888

Local Suppliers as Percentage of Total

Percentage

82%

NORBORD | ESG REPORT 2020

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204-1

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Economic Data Notes(a) Total sales decreased by $693 million or 29% in 2019 primarily due to lower North American OSB andEuropean panel prices and lower North American shipment volumes.
(b) Lower income tax payments in 2017 are attributable to the use of instalments. In 2017, income tax
instalments were not made. 2017 income taxes owing were paid in 2018.
(c) Funds received in support projects totalling less than $1 million are excluded. This includes funds
received for projects in Chambord, Quebec (2018 and 2019) and Inverness, Scotland (2017).
(d) Production values include all OSB, MDF and particleboard products manufactured globally. Total
volumes decreased in 2019 due to weaker North American OSB demand.
(e) Supplier totals drawn from all active vendors in payment system as of October 2020 (not all vendors
may have been active within 2019); historic information is not readily available.
(f) Norbord defines local suppliers as those based in and around Norbord operating countries and forwhich payment is made in Canada, the United States, and the United Kingdom or Belgium.

NORBORD | ESG REPORT 2020

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Data
Tables< >CEOMessage

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NorbordOur Sustainable
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Empowering People
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Data
Tables<Governance
GOVERNANCE

Measurement

2019

2018

2017

GRI

8

8

8

102-22,405-1

Females2

10

Non-Executives

7

7

7

Independent

4

5

5

25%

13%

0%

7

9

9

BOARD COMPOSITION
Total Board Members

Number

Percentage of Female Board Members

Percentage

Average Board Tenure

Years

REGULATORY COMPLIANCE

307-1,
419-1

Value of Fines Related to Non-Compliance with Environmental Regulations

US$ millions

0

0

0

Value of Fines Related to Non-Compliance with Social or Economic
Regulations (a)US$ millions

0

0

0

Governance Data Notes(a) Nominal amounts may have been paid to regulators in North America. However, in aggregate, total isless than $1 million.

Concept and Design: THE WORKS DESIGN COMMUNICATIONS worksdesign.com

NORBORD | ESG REPORT 2020

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