Cascades' New Ghg Emissions Reduction Targets Approved by the Science Based Targets Initiative

Cascades' SBTi-approved emissions targets highlight strong progress but long-dated ambitions.

What the company is saying

Cascades Inc. is emphasizing the external validation of its 2035 greenhouse gas emissions reduction targets by the Science Based Targets initiative (SBTi), framing this as evidence of credible climate leadership. The company highlights its fifth Sustainability Plan, launched in June, and details specific commitments: a 67.2% reduction in Scopes 1 and 2 emissions and a 41.3% reduction in Scope 3 emissions (across purchased goods and services, fuel and energy activities, upstream transport, and end-of-life product treatment) by 2035, all relative to 2019. The announcement stresses that these targets are ambitious but supported by existing action plans, with Hugues Simon, President and CEO, stating that the roadmap is credible and already embedded in operations. Cascades points to its 32.6% reduction in Scopes 1 and 2 emissions between 2019 and 2025 as evidence of momentum, and claims a 25% lower GHG footprint than the North American paper industry average in 2025. The tone is confident and forward-looking, with repeated references to innovation, collaboration, and disciplined investment as enablers for continued progress.

What the data suggests

The disclosed numbers show Cascades achieved a 32.6% reduction in Scopes 1 and 2 GHG emissions from 2019 to 2025, indicating significant progress toward its 67.2% reduction target by 2035. In 2025, the company generated 25% fewer GHG emissions than the North American paper industry average, suggesting it is outperforming peers on emissions intensity. The SBTi's approval of the new targets lends external credibility to the company's decarbonization strategy. However, there is no evidence provided of progress on Scope 3 reductions; the 41.3% target for these categories remains aspirational. The announcement does not quantify the financial impact of these reductions or detail specific project outcomes, focusing instead on high-level achievements and future intentions. The company employs close to 9,000 people across 60 facilities in North America, underlining its operational scale. Overall, the data supports the claim of industry-leading emissions performance but leaves the path to full target achievement and associated financial benefits largely unquantified.

Analysis

The announcement is generally positive in tone, highlighting the approval of Cascades' 2035 GHG reduction targets by the SBTi and referencing significant progress already made (32.6% reduction in Scopes 1 and 2 emissions from 2019 to 2025, and outperforming the industry average in 2025). However, half of the key claims are forward-looking, focusing on ambitious 2035 targets and ongoing/future projects rather than realised outcomes. The most substantial achievements are historical, while the largest benefits (67.2% and 41.3% reductions by 2035) are long-term and not yet realised. There is no disclosure of financial metrics (profit, EBITDA, cash flow), so the true_signal cannot exceed weak_positive. The language around 'robust action plans' and 'creating sustainable value' is aspirational, with no immediate earnings or capital outlay flagged. The gap between narrative and evidence is moderate: past progress is credible, but future claims are long-dated and not yet substantiated.

Risk flags

• ●The bulk of the emissions reduction targets—67.2% for Scopes 1 and 2 and 41.3% for Scope 3—are not due until 2035, creating long-term execution risk. Achieving these goals will require sustained operational, technological, and capital investment over the next decade.
• ●There is no disclosure of financial impact, capex requirements, or cost savings associated with the emissions reduction initiatives. Without this, investors cannot assess the economic trade-offs or potential return on investment for the decarbonization strategy.
• ●Progress on Scope 3 emissions is not quantified, and these reductions are typically harder to achieve due to reliance on external suppliers and end-of-life product management. This introduces additional complexity and risk to meeting the full suite of targets.

Bottom line

Cascades' SBTi-approved 2035 emissions targets and its 32.6% reduction in Scopes 1 and 2 emissions since 2019 position it as a North American industry leader in decarbonization. The company's 2025 emissions were 25% below the industry average, demonstrating real operational progress. However, the most ambitious targets remain long-dated, and there is no disclosure of financial impacts or detailed project-level outcomes. The lack of quantified progress on Scope 3 emissions and absence of cost or savings data mean investors cannot yet gauge the full business implications. The credibility of the narrative is supported by third-party validation but will depend on continued delivery and more granular disclosures. The most important takeaway is that while Cascades is ahead of peers on emissions, the financial and operational path to its 2035 goals remains to be detailed.

Announcement summary

(TSX:CAS) Cascades Inc. announced that its new 2035 greenhouse gas (GHG) emissions reduction targets have been approved by the Science Based Targets initiative (SBTi). The SBTi is a partnership among the Carbon Disclosure Project (CDP), the United Nations Global Compact, the World Resources Institute (WRI), and the World Wildlife Fund for Nature (WWF). Cascades' fifth Sustainability Plan, launched in June, commits the company to reducing its Scopes 1 and 2 GHG emissions by 67.2% by 2035 compared to 2019 levels. The company also aims to reduce its Scope 3 GHG emissions by 41.3% from Category 1 (Purchased goods and services), Category 3 (Fuel- and energy-related activities), Category 4 (Upstream transportation and distribution), and Category 12 (End-of-life treatment of sold products), using 2019 as the base year. Between 2019 and 2025, Cascades reduced its Scopes 1 and 2 GHG emissions by 32.6%. In 2025, Cascades generated 25% fewer GHG emissions than the North American paper industry average. The company plans to continue implementing projects to improve energy efficiency, reduce energy consumption, electrify certain equipment, and explore new renewable electricity sourcing opportunities. Hugues Simon, President and Chief Executive Officer, stated that the SBTi approval is an important recognition of Cascades' climate commitment and the credibility of its decarbonization roadmap. He emphasized that the targets are ambitious but supported by robust action plans and initiatives already established across operations. Cascades employs close to 9,000 people across a network of 60 operating facilities in North America. The company’s shares trade on the Toronto Stock Exchange under the ticker symbol CAS.

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