■ Sustainability Commitment

On behalf of all Buckeye employees worldwide, I welcome you to our 2011 Sustainability Report, based on performance for 2010.

Buckeye has embarked on a sustainability strategy that embraces the importance of protecting the environment and resources for future generations and leverages long-term business and shareholder value. Buckeye is implementing sustainable business practices throughout our business operations that will build on our history as a good corporate citizen, a good employer, and a good environmental steward in the communities in which we operate.

2010 represented a period of recovery from the economic challenges we recently faced. As you will see in the report, some of the measures employed during this period adversely impacted our short-term sustainability metrics. Nonetheless, our sustainability efforts move forward, and we expect our positive trends to continue, making us confident that we will achieve the sustainability goals established in 2009.

Despite minor setbacks, we reached important milestones. The company now meets almost 80% of its total energy needs through the use of renewable fuels – a level that leads the pulp and paper industry.

Buckeye is a certified practitioner in the practice of sustainable forest management, which contributes to the renewability of the forest resource and the continued balance of the carbon cycle. For example, the vast forests dedicated to supplying our major facility in Florida sequester carbon dioxide (CO2), keeping significant quantities out of the atmosphere.

Sustainability initiatives at our individual facilities are making a significant difference, for instance:

• Our Foley plant uses renewable biomass (wood waste, bark and other wood-derived fuels) to supply 86% of the site’s energy requirements.
• Our Foley plant also joined the Department of Energy’s Save Energy Now LEADER program, making a voluntary commitment to reduce purchased energy by 25% over the next 10 years.
• Our Steinfurt plant now produces products under the FSC (Forest Stewardship Council) and PEFC (Programme for Endorsement of Forest Certification) Chain of Custody Certification.
• Our Lumberton plant responded to requests for organic hygienic cotton products by completing the requirements for Certified Organic Processor under the Global Organic Textile Standard (GOTS) Program.
• The Pulp and Paper Safety Association recognized our Memphis plant as the “Most Improved Pulp Mill in 2010” based on its safety performance.
• We are making significant strides in our safety performance – achieving a total incident rate (TIR) of 2.5 in 2010, down dramatically from the 4.7 TIR in 2006.
• Since 2006, we have reduced our reported air emissions by 19%, reduced total wastes by 15%, and reduced the quantity of effluents discharged from our facilities by 5%.

Our sustainability efforts have earned national recognition. In 2010, we were named among the top 20% highest in the first annual Southeastern Corporate Sustainability Rankings. These rankings were compiled by KLD Research & Analytics Inc., which was also instrumental in determining Newsweek’s Green 500 ratings. Read more about our sustainability goals and our progress on page 5 of this report.

Again, thank you for your time and your interest in Buckeye’s progress towards its sustainability goals. Please do not hesitate to contact us if you have any questions or need further information.

John B. Crowe
Chairman and CEO
Buckeye Technologies Inc