MEETING YOUR NEEDS TODAY WHILE BUILDING A BETTER TOMORROW

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MEETING YOUR NEEDS TODAY WHILE BUILDING A BETTER TOMORROW A GLATFELTER 2016-2017 PUBLICATION TABLE OF CONTENTS 2-3 SOCIAL 4-5 ECONOMIC 6-7 ENVIRONMENTAL Count On Us to care for our customers, our

1 MEETING YOUR NEEDS TODAY WHILE BUILDING A BETTER TOMORROW A GLATFELTER PUBLICATION TABLE OF CONTENTS 2-3 SOCIAL 4-5 ECONOMIC 6-7 ENVIRONMENTAL Count On Us to care for our customers, our employees, our communities, and our environment. At Glatfelter, sustainability is more than an environmental initiative. We ve long understood the balance required for strong financial performance, genuine environmental stewardship, and social responsibility. Every day, Glatfelter PEOPLE bring this sustainability mindset to the workplace and the communities we call home. Most Glatfelter facilities are located in small communities where our actions make a lasting impact. As an employer, we understand the integral role we play in these communities because of the taxes we pay, the jobs we create that sustain families, and the philanthropic endeavors we support. We actively encourage our 4,300 employees to be involved in their communities and the activities that are important to them. We take seriously our role as a responsible corporate citizen and have done so for 153 years. The confidence and trust our customers, employees, and communities have placed in us must be consistently earned over time through our performance and commitment to building a better tomorrow. You can count on us. Eileen Beck Vice President Human Resources, Glatfelter

SOCIAL GLATFELTER.COM/ Back to School Glatfelter PEOPLE help build stronger communities in the classroom and beyond.

The instruction was thanks to Glatfelter volunteers and Junior Achievement, a U.S.-based nonprofit organization that is focused on empowering young people to own their economic success.

the program. We talk [with the children] about entrepreneurship and other business concepts in a fun way.

level, and then guide five or six 30 40 minute sessions over the course of several weeks. Everybody wins. Students enjoy experiential learning through the fresh perspective of their volunteers.

2 SOCIAL GLATFELTER.COM/ Back to School Glatfelter PEOPLE help build stronger communities in the classroom and beyond. Elementary school children in York County received special lessons in work readiness, entrepreneurship, and financial literacy. The instruction was thanks to Glatfelter volunteers and Junior Achievement, a U.S.-based nonprofit organization that is focused on empowering young people to own their economic success. It s a rewarding way for us to immerse ourselves in the local community, says Korri Struble, a human resources generalist for Glatfelter, who taught sessions for first- and second-graders as part of the program. We talk [with the children] about entrepreneurship and other business concepts in a fun way. Employees from Glatfelter s Spring Grove facility and corporate offices were able to select a school perhaps where their children attend, their alma mater, or a school close to their office and grade level, and then guide five or six minute sessions over the course of several weeks. Everybody wins. Students enjoy experiential learning through the fresh perspective of their volunteers. Glatfelter PEOPLE enjoy the satisfaction of sharing their real-world experiences in a way that benefits their local community, and, as a result, York County communities become more robust. Developing stronger communities through philanthropic and volunteer opportunities is at the heart of Glatfelter s commitment to social responsibility. It s an initiative that is carried out on a global scale. Glatfelter s 4,300 PEOPLE are encouraged to live out the company s core values of integrity, financial discipline, mutual respect, customer focus, and environmental and social responsibility inside and outside of work. Together, Glatfelter PEOPLE are contributing to the betterment of the communities in which we operate and live around the world, says Struble. HELPING SAVE LIVES, ONE DONATION AT A TIME For the third consecutive year, Glatfelter PEOPLE from Newtech Pulp, Inc. in the Philippines hosted an on-site blood drive in conjunction with the Philippine Red Cross. TEAMING UP TO SUPPORT A GOOD CAUSE Glatfelter PEOPLE cheer on athletes with various abilities at a yearly sporting event in Falkenhagen, Germany. The event brings together caring volunteers and special athletes to celebrate the joy of participating in physical fitness activities. 2 3

ECONOMIC Keeping Up with Consumer Demand A new airlaid facility in Fort Smith supports Glatfelter s position as a world leader in the personal care market.

The soft, dust-free, highly absorbent airlaid materials are used to produce household, personal care, and baby wipes; feminine hygiene and adult incontinence products; food pads; and napkins and

The new location allows us to tap into the area s high-quality workforce, adds Astley. Up to 83 highly skilled manufacturing jobs will be created when production at the facility begins in early 2018.

Training a New Generation of Glatfelter PEOPLE A Gernsbach apprenticeship program develops talented and loyal employees.

Unit facility in Gernsbach leverage through a proven apprenticeship program. Apprentices alternate for three years between a vocational education classroom and the Gernsbach facility.

3 ECONOMIC Keeping Up with Consumer Demand A new airlaid facility in Fort Smith supports Glatfelter s position as a world leader in the personal care market. Glatfelter s purchase of a building in Fort Smith, Arkansas, set the groundwork for a state-of-the-art manufacturing facility that will add much-needed capacity to meet North America s strong demand for airlaid materials. Airlaid refers to the manufacturing process in which fibers are carried and formed to the structure of paper by air, rather than by water (as is used in traditional paper-making processes). The soft, dust-free, highly absorbent airlaid materials are used to produce household, personal care, and baby wipes; feminine hygiene and adult incontinence products; food pads; and napkins and disposable table coverings. Locating in Fort Smith puts us in closer proximity to key suppliers and customers, and links us to highly efficient transportation routes across the [U.S.] South, says Chris Astley, senior vice president of Glatfelter and president of the company s Advanced Airlaid Materials Business Unit. The new location allows us to tap into the area s high-quality workforce, adds Astley. Up to 83 highly skilled manufacturing jobs will be created when production at the facility begins in early This will be Glatfelter s fifth North American manufacturing operation and first U.S.-based operation for its Advanced Airlaid Materials Business Unit. Training a New Generation of Glatfelter PEOPLE A Gernsbach apprenticeship program develops talented and loyal employees. The ability to develop highly skilled workers in the specialized world of composite fibers manufacturing is a key competitive advantage, and one that leaders of Glatfelter s Composite Fibers Business Unit facility in Gernsbach leverage through a proven apprenticeship program. Apprentices alternate for three years between a vocational education classroom and the Gernsbach facility. There, they receive real-world experience to become proficient in such professions as paper technology engineer, industrial clerk (office worker), electrical technician, and industrial mechanic, careers that depend on internship-trained workers. This combination of theory and practice gives a real head start into the job, says Angela Spicola-Hanoman, Glatfelter s personnel development manager in Gernsbach. By the time they complete the training, they have the required technical knowledge and hands-on experience in their job. According to Spicola-Hanoman, approximately 350 applicants vie for 14 apprenticeships each year. Nearly all apprentices complete their on-thejob training and go on to become loyal employees. Ninety-two percent of our apprentices become Glatfelter employees, Spicola-Hanoman says. In fact, more than 40 percent of Gernsbach s 650 employees are former apprentices. The company also supports threeyear student training programs that lead to graduates earning a Bachelor of Arts Industry, Bachelor of Engineering Paper and Technology, or Bachelor of Science Industrial Safety degree. Gernsbach s training and apprenticeship programs are just one example of Glatfelter s dedication to developing a world-class workforce with the technical know-how and commitment to customer service that customers have come to rely on for more than 150 years. WIN WIN WIN More than US$25,000 has been donated to the Make-a-Wish Foundation of Orange County and the Inland Empire region of California, thanks to a new business development program co-sponsored by Glatfelter and its long-time customer in Anaheim, 5 Day Business Forms. During the program, a percentage of all new carbonless orders helped local, terminally ill children see their wishes come true. MAKING BATTERIES SAFER AND LAST LONGER Glatfelter and Dreamweaver International, Inc. s lithium ion battery separator received an Excellence Award at EDANA s INDEX17 nonwovens exhibition held in Geneva. Glatfelter s Martin Rapp, senior vice president and Composite Fibers Business Unit president, is pictured along with the chairman, CEO, and co-founder of Dreamweaver, Jim Schaefer. SERVICE AT THE FOREFRONT Russia s largest wallcovering producer, KOF Palitra, honored Glatfelter for its service excellence, consistent high quality, and long-term cooperation at Palitra s 15th anniversary celebration in Moscow. Pictured are Alexei Sherbakov, commercial director, KOF Palitra; Mattis Gosmann, vice president, sales and marketing, Glatfelter s Composite Fiber s Business Unit; and Anton Orel, general director, KOF Palitra. KEURIG NAMES GLATFELTER SUPPLIER OF THE YEAR Keurig Green Mountain, Inc., a leader in specialty coffee and singleserve brewing systems, recognized Glatfelter with top honors at its 2017 Supplier Recognition Awards. A Keurig executive cited Glatfelter s superior responsiveness to our evolving business needs, leading to improvement of the materials they provide, and optimization of our supply chain. 4 5

ENVIRONMENTAL SAFETY & ENVIRONMENTAL 2016 HIGHLIGHTS Half of all Glatfelter s facilities have safety rankings among the industry s top 25% or better.

4 ENVIRONMENTAL SAFETY & ENVIRONMENTAL 2016 HIGHLIGHTS Half of all Glatfelter s facilities have safety rankings among the industry s top 25% or better. Two facilities, Caerphilly (UK) and Newtech (Philippines), achieved a total case incident rate (TCIR)* of zero, while Falkenhagen (Germany), Gernsbach (Germany), Lydney (UK), and Scaër (France) rank in the industry s top quartile. 3.0 GLATFELTER GLOBAL TCIR Paper Manufacturing Industry Average *TCIR is a performance measurement established by the U.S. Occupational Safety and Health Administration. Powering the Future Glatfelter invests US$113 million in Spring Grove and Chillicothe operations. Glatfelter is celebrating the completion of its largest environmental protection endeavor to date: a US$113 million upgrade to the boiler systems in Spring Grove and Chillicothe. In the past, the company used readily available, affordable coal to power manufacturing operations at the two locations. Now, through careful stewardship and cooperation with regulatory guidelines, all coal boilers have been replaced or retrofitted with cleaner burning natural gas systems. Improvements were also made to air emission control systems. We re investing in the future of our business and communities while protecting the resources we all depend on, says Kathy Wiedeman, director of environmental, health, and safety for Glatfelter s Specialty Papers Business Unit (SPBU). Wiedeman notes that the boiler upgrades ensure compliance with U.S. Environmental Protection Agency regulations, which are referred to as Best Available Retrofit Technology (BART) and Boiler Maximum Achievable Control Technology (MACT). In addition to meeting regulatory guidelines, the state-of-the-art boiler systems dramatically reduce emissions and improve energy efficiency. The improvements are expected to reduce sulfur dioxide (SO 2 ) emissions by 90 percent and greenhouse gasses by percent. Glatfelter is committed to ongoing environmental and economic sustainability. As a result of this complex, multi-year project, Spring Grove and Chillicothe operations including the 1,900 Glatfelter PEOPLE within the SPBU who run them are better positioned for long-term success. CLEANER AIR IS ON THE RISE Over the past three years, the Specialty Papers Business Unit reduced SO 2 emissions by 50% and NOx emissions by 32%. LESS WASTE TO LANDFILLS Over the past three years, the Advanced Airlaid Materials Business Unit reduced tons landfilled by 67%, and the Specialty Papers Business Unit saw a 30% reduction. 50% SO 2 67% AMBU 32% NOx 30% SPBU 6 7

worldclass service, and over a century and a half of technical expertise.

operations include facilities in Pennsylvania and Ohio.

5 GLOBAL LOCATIONS GLATFELTER.COM/ =manufacturing facilities =sales and distribution offices Glatfelter is a global supplier of specialty papers and engineered materials, offering innovation, worldclass service, and over a century and a half of technical expertise. Headquartered in York, Pennsylvania, the company employs approximately 4,300 PEOPLE and serves customers in over 100 countries. U.S. operations include facilities in Pennsylvania and Ohio. International operations include facilities in Canada, Germany, France, the United Kingdom, and the Philippines, and sales and distribution offices in China and Russia. Glatfelter s sales approximate US$1.6 billion annually, and its common stock is traded on the New York Stock Exchange under the ticker symbol GLT. Additional information may be found at www. glatfelter.com. We welcome your comments and suggestions for continued improvement on our sustainability initiatives. Karla Heberlig Communications Analyst, Glatfelter feedback@glatfelter.com 8

2016 Corporate Responsibility Report Executive Summary

2016 Corporate Responsibility Report Executive Summary A message from our CEO Ever since 1933, when the first Rockwell Collins radios marked every step of Admiral Byrd s historic journey to the South Pole,