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2014 SUSTAINABILITY REPORT Catalyst Paper Corporation 2nd Floor, 3600 Lysander Lane Richmond, B.C. V7B 1C3 604.247.4400 catalystpaper.com RESULTS DRIVING PRODUCTION NOTES PAPER FACTS The inside pages of this report are printed on Ascent Gloss Sage, Catalyst’s inside pages of report (101 g) coated three grade, produced at the Port Alberni mill. Its brightness, INPUTS superior opacity and excellent printability make it ideal for magazine, catalogue, high-end insert, commercial and direct-mail print applications Raw Fibre (g) 95 printed on heatset offset presses. % certified sources 100 Catalyst’s coated products are available under our Sage program, meaning Filler (g) 38 they are PEFC certified (Programme for the Endorsement of Forest Certification) as containing 100 per cent fibre from sustainably managed Water (L) 7.7 forests; that there were no net carbon emissions during their manufacture; Work (person secs) 1.0 and that detailed mill-level environmental performance data are available Energy (Cal) 536 via GreenBlue’s Environmental Paper Assessment Tool (EPAT). We also contribute $1 for every tonne of Sage product sold to support our % renewable 92 partner initiatives. EMISSIONS The Paper Facts label identifies the inputs and emissions associated with this Greenhouse gas (g) 9* specific grade of paper calculated on a per-report basis. Catalyst customers can use the online Paper Calculator at www.catalystpaper.com/calculator to Air Particulate (mg) 5 identify inputs and emissions associated with their own purchases and to Effluent BOD (mg) 45 compare them to typical North American paper products. Solid Waste (cm3) 8 * Offset to zero 200043_Sustainability_Report_Cover.indd 1 15-03-16 10:40 AM 00 SUSTAINABILITY REPORT CONTACTING ABOUT US CATALYST CATALYST PAPER CORPORATION COMMUNITY AND ENVIRONMENTAL LIAISON 2nd Floor, 3600 Lysander Lane Richmond, BC V7B 1C3 CROFTON At Catalyst Paper, we have earned a reputation for 2014 BOARD OF DIRECTORS Visit us online at www.catalystpaper.com Robert Belanger, Vice-President & General Manager environmental stewardship based on our commitment AT A GLANCE Brian Houle, Manager, Environment to certified fibre sourcing and chain of custody, JOE NEMETH 250 -246-6100 manufacturing efficiency, green-energy generation President & Chief Executive Officer and environmentally responsible paper operations. PORT ALBERNI Our 2,800 employees are the ambassadors of our COMMITMENT BRIAN BAARDA Harold Norlund, Vice-President & General Manager sustainability vision. To continually review and improve Vice-President, Finance & Larry Cross, Manager, Environment governance procedures to keep pace with Chief Financial Officer emerging regulated and voluntary practices. 250-723-2161 The company has its head office in Richmond, British Columbia, and, as of 2015, operates five mills: JIM BAYLES POWELL RIVER Three in the coastal communities of Powell River, Senior Vice-President, Sales Fred Chinn, Vice-President & General Manager & Marketing Sarah Barkowski, Manager, Environment Crofton and Port Alberni, British Columbia, one in MEMBERS 604-482-3722 Biron, Wisconsin and one in Rumford, Maine. • 7 total 6 independent LEN POSYNIAK In addition, we have a distribution facility in Surrey, Senior Vice-President, Human Resources READ MORE ONLINE British Columbia and a regional office in Ohio. & Corporate Services Our combined annual production capacity of 2.3 million GENDER GREG MAULE tonnes meets the needs of paper customers and pulp • 6 male 1 female Senior Vice-President, US Operations consumers in North America, Latin America, Europe Our annual financial report for 2014 is available in the and the Pacific Rim. GRAHAM KISSACK Investor Relations section of our website. Sustainability Specialist A public company, Catalyst’s shares trade on the We welcome reader feedback and invite you to share your thoughts with us by emailing [email protected]. Toronto Stock Exchange (TSX) under the symbol CYT. COMMITTEES • Audit This report contains forward-looking statements. Forward-looking statements are risks and uncertainties and no assurance can be given that any of the events anticipated • Environment, Health and Safety statements, other than statements of historical fact, that address or discuss activities, by such statements will occur nor, if they do occur, what benefit Catalyst will derive from •Governance, Human Resources events or developments that Catalyst Paper expects or anticipates may occur in the them. No forward-looking statement is a guarantee of future results. A number of factors and Compensation future. These forward-looking statements can be identified by the use of words such as could cause actual results, performance or developments to differ materially from those “anticipate”, “could”, “expect”, “seek”, “may”, “likely”, “intend”, “will”, “believe” expressed or implied by such forward-looking statements, including technological and and similar expressions or the negative thereof. These forward-looking statements regulatory changes, cost constraints, Catalyst’s ability to successfully obtain operational reflect management’s current views and are based on certain assumptions and factors and environmental performance improvements, and other factors beyond its control. management believes are appropriate in the circumstances, including assumptions that Catalyst disclaims any intention or obligation to update or revise any forward-looking there will be no material change to the regulatory environment in which the company statements, whether as a result of new information, future events or otherwise, except as A five-point Operating Philosophy operates, capital budgeted for certain goals will be available, and existing relationships required by law. with stakeholders will be maintained. Such forward-looking statements are subject to guides our sustainability effort. ADDITIONAL INFORMATION Copies of committee terms of reference, codes of Designed and produced by Ignition. www.ignitionsc.com conduct and standards of governance, are available at Please recycle www.catalystpaper.com/about/governance. CATALYST PAPER SUSTAINABILITY REPORT 2014 CATALYST PAPER SUSTAINABILITY REPORT 2014 200043_Sustainability_Report_Cover.indd 2 15-03-11 3:39 PM 01 OUR REPORT This report focuses on the wholly owned operations and worldwide sales of Catalyst Paper during the period January 1 – December 31, 2014. The scope of our 2014 report is largely unchanged from previous years and is prepared according to the Global Reporting Initiative’s G4 guidelines. We did not seek external assurance for the report but self-declare in accordance with core disclosure. This report is written for our stakeholders and covers the sustainability topics most material to them. We welcome reader feedback and invite you to share your thoughts with us by emailing CONTENTS [email protected]. KEY FACTS & FIGURES 03 PRESIDENT & CEO’S MESSAGE 04 FIBRE 10 MANUFACTURING 12 PEOPLE & PLACES 25 PRODUCTS 28 DISTRIBUTION 30 CUSTOMERS 31 THE RESULTS: ENVIRONMENTAL DATA 33 REGULATORY COMPLIANCE 40 GRI INDEX 42 CATALYST PAPER SUSTAINABILITY REPORT 2014 200043_Sustainability_Report_Text.indd 1 15-03-11 4:06 PM 02 MEASURING PROGRESS/DRIVING RESULTS 2014 HIGHLIGHTS 1 INPUTS Eight-five per cent of our purchased raw inputs are • For the eighth straight year, Catalyst is named by waste products. Corporate Knights as one of Canada’s best corporate Certified chain of custody to Forest Stewardship citizens. In 2014, Catalyst ranked 45th, an improvement Council (FSC), Programme for the Endorsement from 50th in 2013. Only three other companies in our of Forest Certification (PEFC), and Sustainable Forestry Initiative (SFI). sector made the list. (The sector is made up of over 35 Canadian manufacturers operating almost 100 mills.) Ninety per cent renewable energy in our product manufacturing. • A thorough Scope 3 greenhouse gas emissions All of our fibre is from sustainably well-managed forests. assessment was completed. Results show Catalyst’s 2 MANUFACTURING total carbon footprint (comprising Scope 1, 2, and 3 We are yield focused – use less, waste less. emissions) is 593 kilograms of carbon dioxide equivalent Our high-opacity paper offers bulk with less weight. (kg CO e) per tonne compared to an industry average of 2 Our paper has one of the lowest carbon footprints 1 over 3,149 kg CO2e per tonne. in North America. • Crofton achieved the International Organization for Standardization’s ISO 50001 energy management 3 TRANSPORTATION certification. Multi-modal efficient logistics reduce material miles and carbon emissions from shipping finished product. High-quality handling delivers orders on time, LOOKING AHEAD: 2015 VISION AND GOALS damage free. • Economic: Become cash positive. 4 PAPER LIFE CYCLE • Environmental: Collaborate with BC Hydro To gain sustainability insights, we partner with to drive continued improvements in energy organizations like World Wildlife Fund (WWF), GreenBlue, Greenpeace, Sierra Club BC, efficiency and conservation. ForestEthics and Corporate Knights. • Social: Sustain the success of the employee-driven Opportunities For Improvement Program. 5 TRANSPARENCY Is ensured along the supply chain. Our product labels highlight pedigree and footprint. 1 Environmental impact estimates were made using the Environmental Paper Network’s Along with carbon, forest footprint, and water paper calculator version 3.2. For more information, visit www.papercalculator.org. disclosure, we report to GreenBlue’s Environmental Paper Assessment Tool (EPAT).