THERE IS ONLY ENDURING ONE THING VALUES MORE CONSTANT CONSTANT CHANGE THAN CHANGE: OUR VALUES. CATALYST PAPER CORPORATE SOCIAL RESPONSIBILITY REPORT 2016 SUSTAINABILITY HIGHLIGHTS FACTS & FIGURES PEOPLE & PLACES Catalyst is proud of our 2014 2015 2016 Total Employees 2,573 green pedigree and our CATALYST AT A GLANCE PEOPLE & COMMUNITIES # of Workplace Incidents Requiring Medical Attention 70 recognition for our corporate Catalyst Paper is a leading North American manufacturer of social responsibility efforts Medical Incident Frequency (PER 200,000 HOURS WORKED) 1 2.51 2.67 2.69 Taxes Paid to Governments $35 million (see page 20), but these diverse printing and writing papers, and of a growing line of Lost-Time Incident Frequency (PER 200,000 HOURS WORKED) 2 1.13 1.26 1.11 Total Direct Economic Impact $2 billion achievements are only specialty paper products for applications such as labels, food possible because of our Employee Population employees who treat the (ACTIVE EMPLOYEES AT YEAR END, EXCLUDING VACANCIES) 1,598 2,625 2,573 liners, pressure-sensitive products and specialty packaging. company as their own. Payroll (INCLUSIVE OF BENEFITS AND EXCLUSIVE OF We also produce market pulp. RESTRUCTURING COSTS [SEVERANCE]) (MILLIONS) $186 $337 $356 FIBRE (1,000 TONNES) ENERGY & CARBON Sustainability starts and We draw from sustainably managed and largely third-party certified forests, and Taxes Paid (MILLIONS) 3 $30 $35 $35 ends with people, and it collaborate with special interest groups to contribute to the conservation of ecosystems Wood Chips Used 1,590 Renewable Energy (%) 75% is our employees who live Spending with Suppliers & Business Partners (MILLIONS) $886 $1,613 $1,578 such as the Great Bear Rainforest and boreal forest. We use extensive amounts of and breathe the values renewable, waste-based and low-carbon energy sources, in the most efficient and Pulp Logs Used 1,106 Electrical Energy Used (GWh) 3,094 RESOURCE USE we believe in. You’ll meet cleanest ways feasible. Purchased Pulp Used (virgin) 98 Biomass Fuels Used (million GJ) 39.5 some of those people as we Water (M3 – TREATED EFFLUENT DISCHARGES/PROCESS WATER) 110,246,970 150,284,263 158,845,561 We operate five mills in North America with a network of well positioned distribution Purchased Pulp Used (recycled) 6 Fossil Fuels Used (million GJ) 15.3 highlight our achievements Fuel Energy facilities. This enables us to effectively serve markets throughout the continent and in 2016. (GIGAJOULES (GJ) – INCLUDES FOSSIL FUELS AND RENEWABLES) 30,440,668 53,651,272 54,799,707 Third Party Audited % 47% Greenhouse Gases – Scope 1 – the world, with freight logical options for customers. Our leading sustainability Direct Operations Electrical Energy performance and disclosure means we provide leading brands with the confidence (thousand tonnes CO2e) 1,159 (MEGAWATT-HOURS (MWh) – INCLUDES PURCHASED AND SELF-GENERATED ENERGY) 3,495,885 4,649,959 4,601,117 they need in the paper and packaging products that they buy. WATER Greenhouse Gases – Scope 2 – % Renewable Energy 90% 74% 75% Purchased Power ABOUT THIS REPORT Process Water Used (thousand tonnes CO2e) 310 Wood Fibre (TONNES) 1,712,216 2,796,406 2,801,168 (million m3) 159 This is Catalyst Paper’s 14th Corporate In late 2016 we interviewed representatives Greenhouse Gases – Scope 3 – % Chain-of-Custody/Third Party Audited 54% 49% 47% Social Responsibility Report, covering of a cross-section of customers, operating Cooling Water Used Supply Chain performance from January 1 to December communities and environmental groups, 3 4 (million m ) (thousand tonnes CO2e) 931 EMISSIONS & OUTPUTS (TONNES UNLESS OTHERWISE NOTED) 102 31, 2016, and encompassing all of our seeking their feedback on the scope, Greenhouse Gases (SCOPE 1) 5 226 1,204 1,159 operations and our worldwide sales. content and balance of our 2015 report. Particulate Emissions 6 460 837 702 We became a private company in early Based on their feedback, we have continued 2017 and have chosen to maintain broad to focus on procurement practices, materials, 1 CUSTOMERS & PRODUCTS Nitrogen Oxides 1,917 5,598 4,456 and voluntary disclosure of our sustain- energy, water, emissions, effluents and ability-related performance through this waste, compliance, transport, employment, Total Paper Manufactured (t) 1,755,795 Suphur Oxides 3,160 8,404 5,110 report, which covers our environmental, occupational health and safety, and local social and other impacts. communities, while also incorporating Total Pulp Manufactured Biochemical Oxygen Demand 1,261 1,982 2,504 more target disclosure and industry (for external sale) (t) 461,946 OUTPUTS We self-declare this report to be in accordance Total Suspended Solids 2,787 4,753 4,120 benchmarks. with the core disclosure requirements of Total Electricity Sold (MWh) 149,861 Solid Waste to Landfill (t) 146,246 Solid Waste to Landfill 76,063 142,232 146,246 the Global Reporting Initiative’s G4 Total Countries Shipped To 40 Solid Waste Beneficial Reuse (t) 123,148 Guidelines. All dollar figures are reported 1 Medical Incident: Injury requiring medical treatment 4 Includes emissions attributable to both paper NOTE: The acquisition of the Biron and Rumford in Canadian currency. Feedback on this Total Customers Sold To 464 Total Suspended Solids Released (t) 4,120 other than first aid. manufacturing and production of power for sale. mills, at the beginning of 2015, resulted in significant report is welcome and can be provided to: increases across numerous metrics. 1 Includes Crofton & Rumford pulp. Biochemical Oxygen Demand (t) 2,504 2 Lost-Time Incident: Injury resulting in a full work day 5 The 2015 value has been updated to correct for [email protected] lost, past initial treatment. a calculation error. Total Particulates Released (t) 702 3 Includes property taxes, U.S. operations’ sales taxes, 6 Based on actual test results; NPRI data may differ Total Reduced Sulphur Released (t) 97 carbon taxes and PST incurred. due to use of emission factors and inclusion of other sources. See page 59. Total Sulphur Dioxides Released (t) 5,110 Total Nitrogen Oxides Released (t) 4,456 1 CATALYST PAPER CAT·A·LYST ENDURING VALUES. 'kad( )l st / noun CONSTANT CHANGE. Our values are the most constant thing in most of our lives, embedded in what’s most important to each of us: The places we cherish; the people we care most about; our basic health A SUBSTANCE THAT and safety. That’s why Catalyst’s values endure – they reflect the people who work here. But change is just as constant, and calls us to do more than INCREASES THE keep up, but also to imagine. To ask, “how can we be better, and what do we need to do to get there?” To dream of tech- nology and possibility that changes the very nature of work. RATE OF A REACTION And to innovate in order to never be obsolete. The stories in this year’s Corporate Social Responsibility Report have something in common: They are all about WHILE REMAINING tapping in to enduring values in times of ever-more-constant change. These stories, and the full disclosure of data behind them, are about us, and – by extension – about you. We are Catalyst: A force for change, which stays the same. UNCHANGED ITSELF. This year, we changed the title of our publication from “Sustainability Report” to “Corporate Social Responsibility Report” to reflect the broad disclosure we make on sustainability issues, and our social and economic impacts and results. 2 CATALYST PAPER CORPORATE SOCIAL RESPONSIBILITY REPORT 2016 3 AT CATALYST, WE… LEARNING WHAT’S CHANGED: CONTENTS Two sustainability leaders discuss Catalyst in Context 18 the need to keep current on facts LEARN 06 in a rapidly changing industry. Customers & Products 22 People 24 Fibre 32 LISTENING TO EACH OTHER: In Powell River, community Energy & Carbon 36 LISTEN 08 partners are investing in each other. Water 40 Outputs 42 INNOVATION IS SUSTAINABLE: The Results: Environmental Data 47 In Rumford, customers are involved in INNOVATE 10 product development trials up close. Our Products 64 COLLABORATING on a successful mill-wide project opened up a new COLLABORATE 12 market for the Port Alberni mill. STAYING SAFE is a choice for each of us. Catalyst has been working hard to ensure it’s the choice workers make, STAY SAFE 14 every time. GETTING THINGS DONE is an attitude and a practice at Biron that came to life with an emission- reducing project completed ahead GET THINGS DONE 16 of schedule. 4 CATALYST PAPER CORPORATE SOCIAL RESPONSIBILITY REPORT 2016 5 “We are a risk-taking company, willing to give things a try, learn something along the way and continuously strive to improve. Over the past two decades, this process has resulted in an enviable green pedigree that has become a powerful advantage for us.” Graham Kissack, Vice President, Corporate Social Responsibility ON CORPORATE SOCIAL RESPONSIBILITY Nina (NG): “Many of the first sets of sustainability goals set by companies in the 1990s were met in 2015. Among our more than 200 member organizations, we are seeing new sets of goals that are even more aggressive. Companies like Pepsi, Walmart, Unilever – all set amazingly bold goals for 2025. They know that companies with a sustainability plan create more value for shareholders.” Graham (GK): “My counterparts in other companies are talking that way, too. They understand that it’s in their best interest to lessen their energy footprint. Catalyst bought into this approach in the late 1980s ON THE POWER OF THE “RECYCLED” LOGO when we started swapping out fossil fuels. We’ve GK: “Thirty years ago, the green movement taught us benefited and have been able to compete because that more recycled content was better, but it’s become LEARNING our fuel costs are lower than our competitors.” more complex than that.