Climate Change and Energy
At Resolute Forest Products, we steward renewable,
sustainable, fossil-free resources that play an important role in fighting
climate change. Our vision is to operate a model manufacturing company with a climate-adaptable
business model, built with the strongest values, the highest respect for
sustainability and the calling to serve our people and communities. We are
delivering on our strong commitment to climate and green energy by reducing
greenhouse gas (GHG) emissions and optimizing the use of renewable energy.
SBTi Reduction Targets
Resolute continues to raise the bar, increasing
expectations of its own performance. Having surpassed our 2025 GHG emission
reduction target ahead of schedule, our new reduction goals have been validated
by the Science
Based Targets initiative (SBTi),
including a 41.5% reduction in absolute scope 1 and 2 emissions
by 2026 from a 2015 base year, and a 16.5% reduction in scope 3 emissions
within the same timeframe. Our scope 1 and 2 target is in line with a
well-below 2°C trajectory, and our scope 3 target is in line with a 2°C
trajectory, conforming to the SBTi Criteria and Recommendations (version 4.2). The
target boundary includes biogenic emissions and removals from bioenergy
Actions to reduce GHG emissions and combat climate
change are cornerstones of our sustainability strategy. We achieved our goal to
reduce the company’s absolute scope 1 and 2 GHG emissions by 2025 compared to
2015 levels last year, the equivalent of removing nearly 700,000 metric tons of
CO2 per year. By year-end, we had achieved a 31.9% reduction in
absolute scope 1 and 2 GHG emissions across company operations. Our climate
change initiatives also include an 84.7% reduction in scope 1 and 2 emissions
at our pulp, paper and tissue mills compared to 2000 levels. Together, our
carbon-reduction initiatives over the past two decades have reduced emissions
by more than 8.2 million metric tons of CO2 equivalents per
year, comparable to taking close to two million cars off the road.
Resolute is constantly evaluating and improving our manufacturing processes by optimizing energy efficiency; decreasing our consumption of fuel, steam and electricity; reducing our carbon footprint through fuel switching; and focusing on renewable energy use. For more information on our emission reduction projects, please visit our Carbon Footprint page. To learn more on our renewable energy initiatives, please visit our Green Energy page.
Disclosing our Performance
Resolute’s commitment to transparency and annual sustainability reporting includes disclosing our annual environmental performance to CDP, a globally-recognized, non-profit framework that has long championed environmental disclosure as standard business practice. Participation in CDP’s disclosure programs allows organizations to measure their progress and drive action around their sustainability performance. Resolute has reported our carbon footprint to CDP since 2006, beginning with scope 1 and 2 GHG emissions, and adding scope 3 (supply chain) emissions in 2016.
In CDP’s 2021 climate change program, we increased our score to a
“B” from “B-”, placing us at the management level. The improvement reflects the
concrete actions we have taken on climate issues, and the steps we have
implemented to manage our carbon footprint. We are committed to
participating in CDP’s climate change program on an annual basis.
For more information, visit our 2022 CDP report on climate change.
Climate Change Governance
Resolute's executive team is responsible for the company’s business and sustainability strategies, which the board of directors oversees. Climate change and carbon issues are discussed and reviewed on a regular basis at the corporate level, as all capital projects considered by the company require an evaluation of their impact on GHG emissions.
In addition, our corporate carbon committee serves as a training and information mechanism for issues related to carbon regulation. All risks and opportunities related to our carbon strategy are reviewed by the committee, which is a cross-functional group of vice presidents and representatives (Operations, Legal, Treasury, Finance, Energy, Procurement) that is chaired by our vice president, Environment, Energy and Innovation. Company results are reported to our senior managers and the executive team.
Overall responsibility for risks and opportunities at the mill level resides with our vice president, Environment, Energy and Innovation, while our director, Forestry, has responsibility for risks and opportunities in our woodland operations. A top-down approach is in place for assessing risks and opportunities, which relate primarily to regulatory changes, strategic capital investments, consumer preference changes, reputation and weather- and climate-related challenges.
At each of Resolute's operations, facility managers are responsible for implementing site-specific carbon- and energy-related projects. They collaborate with project engineers, financial controllers and environmental coordinators in order to carry out their projects. Environment coordinators also ensure our facilities comply fully with environmental regulations, such as those related to GHG emissions.
A thorough emissions inventory is essential for identifying opportunities to reduce our carbon footprint. Resolute’s Environment group, overseen by our vice president, Environment, Energy and Innovation, consolidates data from each mill using verification processes for accuracy. This helps us close any minor gaps in our scopes 1 and 2 inventories. We work diligently to track our sawmill emissions, allocate emissions from our cogeneration facilities, and include emissions from our landfill sites.
Resolute’s reputation, environmental and legal responsibilities, regulatory obligations, financial reporting, and supply chains are all significantly impacted by climate and energy-related factors.
Our operations are subject to climate variations, which impact the productivity of forests, the frequency and severity of wildfires, the availability of water, the distribution and abundance of species, and the spread of disease or insect epidemics, which in turn may adversely or positively affect timber production and availability. Over the past several years, changing weather patterns and climatic conditions due to natural and man-made causes have added to the unpredictability and frequency of natural disasters.
The risks associated with global, regional and local weather conditions, as well as climate change – including the costs of complying with evolving climate change regulations and implementing climate-change mitigation programs – are disclosed annually in the company’s 2021 Form 10-K.
Partnering With our Industry Associations
When Resolute joined the elite World Wildlife Fund® (WWF®) Climate Savers program in November 2011, we made commitments that were among the most ambitious in our global industry to reduce our GHG emissions. We committed to reducing absolute GHG emissions (scopes 1 and 2) to 65% of 2000 levels by 2015. At the end of 2015, our reduction had reached an impressive 70%, and Resolute's participation in the program was completed with the expiration of the five-year term of the agreement. For more information on our on emissions reducing projects, please visit our Carbon Footprint page.
Resolute welcomes the opportunity to work with others to support global carbon emission reduction efforts. As a member of the Forest Products Association of Canada (FPAC), we have signed on to its "30 by 30” Climate Change Challenge, which commits the Canadian forest products industry to removing 30 megatons of CO2 per year by 2030 – more than 13% of the Canadian government’s total emission reduction target. FPAC estimates that from 2015 to 2018, the industry increased annual net carbon removals by 8.3 megatonnes, nearly 1/3 of "30 by 30" target. In the United States, we work with the American Forest and Paper Association (AF&PA), supporting the U.S. industry’s goal of achieving a 20% reduction in members’ GHG emissions from 2005 to 2020. Together, AF&PA members surpassed the target by achieving a 24.1% reduction of absolute GHG emissions compared to 2005.
Joining the Carbon Pricing Leadership Coalition
In July 2016, Resolute became an inaugural Canadian member of the Carbon Pricing Leadership Coalition (CPLC), a voluntary global partnership that brings together leaders to help address climate change by putting a price on carbon. Resolute supports carbon pricing policies as a market mechanism that drives competitiveness, creates jobs, encourages innovation and delivers meaningful emission reductions. A market price for carbon is currently included in decision-making at our facilities.