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2004 Report on Sustainable Development

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2004 Report on Sustainable Development Corporate Social Responsibility 2004 Highlights Respect, our guiding force. Corporate Social Responsibility Packaging Sector Boxboard Group Containerboard Group Norampac Inc., 50% Specialty Products Group Cascades Inc. Tissue Sector Fine Papers Sector Cascades is active in three main sectors. Contents 3 A Message from the Lemaire Brothers 5 Our Planet 11 The Human Element 17 The Economic Environment 19 Governance 20 Recognition 2004 Sustainability Highlights Profile Founded in 1964, Cascades produces, transforms and markets packaging products, tissue paper and fine papers, composed mainly of recycled fibres. Cascades employs nearly 15,800 men and women who work in some 150 modern and flexible production units located in North America, in Europe and in Asia. Cascades’ management philosophy, its more than 40 years of experience in recycling and its continued efforts in research and development are strengths which enable the company to create new products for its customers and thus offer superior performance to its shareholders. The Cascades shares trade on the Toronto stock exchange under the ticker symbol CAS. Our values Respect • Team Work • Autonomy • Adaptability Initiative • Communication Vision Cascades is a group of distinct entities that operate in different sectors collaborating with each other to optimize synergies. United by an attitude of respect for the individual, these entities share a sense of belonging and pride. Each sectorial group ensures its own growth by taking advantage of interesting business opportunities that arise and are in keeping with prevailing financial and economic market realities. Our commitment to these fundamental values will guarantee our future. Corporate Social Responsibility Our commitment to the environment, society and the economy is entrenched in our corporate culture. 2 2004 Sustainability Highlights Long before Corporate Social Responsibility (CSR) was developing environmentally friendly alternatives a buzzword, Cascades was operating in an environmen- for our customers and the community. Our sense of tally, socially and economically sustainable manner. respect clearly extends to our planet, and we believe In fact, our Company was built on a strong respect for this approach yields better profits and a better world. the land, the people and the communities where we We are committed to promoting personal conduct our business. And, the solid values we espoused development and quality of life, not just for the 41 years ago still hold true today. Everyday we strive to be 15,800 employees whose daily work fuels the growth of fair employers, good corporate citizens and ethical busi- Cascades, but also for the communities that surround nesspeople, respectful of the environment. our 150 business units. By putting people first, we have Over the years, Cascades has evolved from a successfully channelled the energy and talent of our small-town family business to a major, multinational employees to build a world-class company. player. In spite of our tremendous growth, our values Our financial performance has enabled us to remain constant. They are our guiding force. reinvest, innovate and grow. This has had a positive economic impact on shareholders, employees, suppli- It all starts with respect ers, customers and communities. Our profitability has Respect is woven into the very heart of our philosophy. also enabled us to invest in Research and Development, It is clearly articulated in our vision and entrenched in leading to new products and processes. our daily culture. And with that foundation of respect We have become recognized as a pioneer and comes transparency in our business and a spirit of leader largely because of our innovative vision toward open dialogue. By keeping our doors wide open, human resources, as well as our commitment to qual- both inside the organization and out to the world, we ity, technological development and the protection of remain true to our origins. Simply put, Cascades is, the environment. despite its size, a company with a human face. The pages that follow provide a glimpse into some Our thorough approach to business enables us of our activities and performance in the area of CSR. to continuously deliver quality products. We never With some exceptions, they cover all our operations stop raising the bar, elevating our standards in all in North America and Europe. While this brief report that we do. cannot address the vast number of CSR issues, it The entrepreneurial spirit is alive and well at articulates our continued commitment to conduct Cascades. Empowerment and accountability are a our business ethically and responsibly. way of life at the business unit and the individual employee level. For Cascades, it’s a work style that Alain Lemaire yields results. President and Chief Executive Officer Bernard Lemaire Environmental, Social and Economic Impact Chairman of the Board We believe that environmental and social responsi- bility do not preclude financial performance. On the Laurent Lemaire contrary, environmental stewardship and progressive Executive Vice-Chairman of the Board management practices underlie our success. Cascades started as a waste recovery and recycled fibre business built on the idea that paper could be made from waste paper. Since then, we have been leaders in paper recycling and energy conservation, 3 Corporate Social Responsibility Protecting the Earth for future generations. 4 2004 Sustainability Highlights Our Planet Cascades has a strong legacy of environmental Objectives and Targets stewardship — all the way back to 1964 and to the Cascades operations aim to meet or exceed all current Company’s pioneering work in paper recycling. environmental regulations. Each of Cascades’ facilities Today, we continue to lead the industry in responsible has the responsibility to set individual environmental resource management and eco-friendly products by goals, aligned with our environmental mission. upholding a basic tenet that has sustained us for more than 40 years. Monitoring Our Environment Department routinely monitors and Environmental Mission audits operations to ensure that mills consistently comply This is our commitment to environmental protection, not only with current government standards but also which we revised in 2003 in order to clearly lay out with our environmental mission. Our team of experts corporate and senior management responsibilities. also provides technical support to Cascades business It is based on ISO 14000 principles and outlines units and helps plant managers develop and implement specific programs to: environmental programs. • Identify important environmental issues and establish clear objectives; • Promote employee awareness on the topic of Saving trees environmental protection; The 2.5 million short tons of • Promote conservation of resources by saving paper and cardboard recycled energy and raw materials; by Cascades allows us to save • Ensure compliance with environmental legislation 30 million trees, or the in force; and equivalent of 30,000 hectares • Inform Board members and management of of forest each year. environmental issues. Environmental Management System Up to Standard Our Environmental Management System (EMS) As of December 31, 2004, 10 of the Company’s mills allows us to judiciously monitor and control the had achieved certification under the ISO 14001 Company’s diverse environmental situations. It’s an environmental management system standard. important tool to proactively identify potential issues, reduce risks and ensure continuous improvement through immediate disclosure of environmental inci- dents. Moreover, quarterly reporting of environmental issues are transmitted to the Board. Periodically, the Company reviews its EMS to ensure it continues to remain an effective monitoring tool. 5 Corporate Social Responsibility Environmental Performance from the pulp to the finished product. And, our No matter how much the paper industry changes, Saint-Jérôme fine papers mill is the only Canadian Cascades firmly intents to remain a leader by main- mill to be EcoLogo™ certified, Environment Canada’s taining the environmental objectives we have set recognition for reduced energy consumption and for ourselves: to better protect the environment and greehouse gas emissions, to name a few. forests by increasing the volume of recycled materials, further reducing greenhouse gas emissions, recovering Other milestones: waste from water treatment systems and maximizing • New Life DP100™, the most environmentally energy efficiency. friendly consumer paper on the market. Made of 100% postconsumer content, not a single tree is Raw Fibre Supply cut in its manufacture. And, the de-inking process The Cascades group has an annual recycled fibre used to manufacture it uses 80% less water than consumption of over 2.5 million short tons. To ensure conventional methods. 2004 2004 a reliable supply of recycled fibreRemuneration for our unique paper • Rolland Enviro100™ and Rolland Enviro Edition™ Remuneration (PAYROLL, BENEFITS, Training Training $ products,($M) snapshot we set up a significant($M) AND PROFIT recovery SHARING) networksnapshot are the environmental($M) spent choice for the commercial that provides our North1,000 American mills with a large printing20 and publishing industries since they are Gross payroll 900 Number of hours 18 ™ percentage608 of their raw material. 347,604 chlorine-free, accredited Eco-Logo and made from 800 16 Cascades Fine Papers Group is at the forefront 100% postconsumer fibre. On average, 17 mature 700
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