Public Commitments

Based primarily on the shared priority issues identified by our stakeholders, Resolute Forest Products developed a sustainability strategy that drives all of our sustainability activities and initiatives, including our public commitments.

In 2011, we established a set of ambitious commitments reflecting our approach to balancing the company’s sustainability priorities. Since then, we have been tracking and reporting our progress annually and updating our targets, as necessary, in order to promote continuous improvement, which requires the use of SMART (specific, measurable, attainable, relevant and time-bound) targets. While some of the commitments meet the SMART standard, others are still being refined.

One of the main responsibilities of our sustainability committee is to review and refine our sustainability commitments on an annual basis. This cross-functional group, comprised of senior managers from various departments, recommends strategies, sets goals, measures results, oversees reporting, communications and continuous improvement, and assesses stakeholder expectations and sustainability trends.

Our year-over-year performance has steadily improved, and we continue to build on a solid base of what we believe are meaningful accomplishments. In 2021, we committed to integrating the United Nations’ Sustainable Development Goals (SDGs) into our sustainability reporting. By tying our ambitious targets and performance updates to the SDGs, we have enhanced our commitment to transparency, accountability and sustainability oversight.

The following tables provide a summary of Resolute’s sustainability performance for all the operations we owned or operated as at December 31, 2020.

Environment Commitments


Greenhouse Gas (GHG) Emissions
2020 Targets 2020 Performance 2021 Targets
Operate within established GHG reduction frameworks, e.g. American Forest & Paper Association's (AF&PA) industry goal of surpassing a 20% reduction of GHG emissions by 2020 based on 2005 levels, and Forest Products Association of Canada's (FPAC) ''30 by 30'' Climate Change Challenge
AF&PA members achieved a 23.2% reduction of absolute GHG emissions in 2019 compared to 2005
Rating: +
N/A target achieved
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
Rating: >
Operate within FPAC's established GHG emission reduction framework, the ''30 by 30'' Climate Change Challenge, which aims to reduce the industry's emissions by 30 megatonnes by 2030

Report climate change data and management practices to CDP, including scope 1, 2 and 3 emissions Received "B-” (Management level) score, indicating that we are taking coordinated action on climate change and that we have taken steps to assess potential environmental risks to our business, as well as implemented actions to manage those risks
Rating: +
Report climate change data and management practices to CDP, including scope 1, 2 and 3 emissions
  Achieved an 83.4% reduction in scope 1 and 2 GHG emissions compared to 2000 levels

Resolute's 2020 GHG reduction highlights:
- Joined OCIANA™ Consortium, a cross-industry team focused on developing a vessel management system to explore ways of lowering GHG emissions in supply chains
- Dolbeau (Quebec): Reduced use of auxiliary boiler fueled with bunker C oil at paper mill, equivalent to a reduction of 1,600 metric tons of CO2 equivalents per year
Rating: N/A
New target for 2021

By 2025 reduce pulp, paper and tissue mills' absolute GHG emissions (scope 1 and 2) by 30% over 2015 levels
  Wood products facilities represent less than 5% of the company's total annual GHG emissions and are currently excluded from GHG reporting, as permitted by the Greenhouse Gas Protocol, which allows exclusions of up to 5% of total emissions
Rating: N/A
New target for 2022

By 2022 include wood products facilities' GHG emissions in the company’s inventory
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Environmental Management Systems (EMS)
2020 Targets 2020 Performance 2021 Targets
Record 18 or fewer environmental incidents, with a long-term goal of zero incidents Recorded 13 environmental incidents

Trained approximately 200 directors, managers and superintendents to reinforce commitment to environmental management and compliance via four virtual training sessions
Rating: ++
Record 15 or fewer environmental incidents, with a long-term goal of zero incidents
Maintain ISO 14001 EMS certification at 100% of certified operations Maintained ISO 14001 EMS certification at 100% of certified operations
Rating: =
Maintain ISO 14001 EMS certification at 100% of certified operations
Finalize ISO 14001 EMS certification at Menominee (Michigan) pulp mill and Florida tissue mills Menominee (Michigan) pulp mill's certification audit completed in 2020; certificate pending

EMS in place at Hialeah; certification audit completed and certificate pending

EMS in place at Sanford; results of certification audit pending
Rating: >
Finalize ISO 14001 EMS certification at Menominee pulp mill and Florida tissue mills and assess implementation of ISO 14001 EMS certification at U.S. sawmills, with goal of completing certification in 2022
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Forest Management (FM)
2020 Targets 2020 Performance 2021 Targets
Maintain certification of 100% of Resolute-owned or managed woodlands to at least one internationally recognized FM standard Maintained certification of 100% of our owned or managed forests to internationally recognized FM standards

Completed certification audits for FSC FM certificates in accordance with new standards
Rating: =
Maintain certification of 100% of Resolute-owned or managed woodlands to at least one internationally recognized FM standard
Report forests data and management practices to CDP Received "A-" (Leadership level) score, reflecting our environmental best practices, and the actions we have taken to manage harvest risk and implement monitoring programs
Rating: +
Report forests data and management practices to CDP
Record no more than five forest management incidents leading to regulatory infractions in Canada, excluding those of a strictly administrative nature, with a long-term goal of zero infractions No incidents in Ontario

No incidents in Quebec
Rating: ++
Record no more than five forest management incidents leading to regulatory infractions in Canada, excluding those of a strictly administrative nature, with a long-term goal of zero infractions
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Fiber Sourcing and Management
2020 Targets 2020 Performance 2021 Targets
Maintain chain of custody (CoC) certifications to internationally recognized standards at 100% of certified facilities  Maintained CoC certifications to internationally recognized standards at 100% of certified facilities

Completed certification audits for Canadian CoC certificates
Rating: =
Maintain CoC certifications to internationally recognized standards at 100% of certified facilities 
Finalize CoC certification to internationally recognized standards at Calhoun (Tennessee) tissue facility Completed multisite CoC certification for all tissue mills, including Calhoun's tissue operation
Rating: +
Complete integration of U.S. sawmills into Resolute's multisite CoC certification
Rating: N/A New target for 2021

Integrate Hagerstown (Maryland) into the Tissue group's multisite CoC certification
  Resolute discloses fiber losses on an annual basis; in 2019, we reported 42.61 kg of volatile total suspended solids per metric ton of production
Rating: N/A
New target for 2021

Record fiber losses of no more than 40 kg per metric ton of production
  Rating: N/A New target for 2021

Establish annual fiber loss targets for each of our pulp, paper and tissue mills
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Water Management
2020 Targets 2020 Performance 2021 Targets
Manage water efficiently by continuing to establish annual water reduction targets for each of our pulp, paper and tissue mills Established water reduction targets at all of our mills, and water consumption is regularly evaluated at our network of facilities

Company-wide water used and discharged is disclosed on corporate website
Rating: =
Continue to establish annual water reduction targets for each of our pulp, paper and tissue mills
Disclose water security management practices and data to CDP Received "B” (Management level) score, reflecting the actions we have taken to evaluate and manage our potential environmental risks relating to our use of water
Rating: +
Disclose water security management practices and data to CDP
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained

Governance and Economic Commitments


Sustainability Oversight and Management Practices
2020 Targets 2020 Performance 2021 Targets
Maintain effective sustainability oversight and risk management practices Maintained sustainability oversight via four corporate sustainability committee meetings as well as meetings of the board of directors' environment, health and safety committee
Rating: =
Maintain effective sustainability oversight and risk management practices via quarterly meetings of the corporate sustainability committee
  Adopted a board-level diversity policy requiring minimum of 25% representation of each gender (ie. male and female)

Adopted an executive leadership level diversity policy acknowledging diversity as a key factor in the company’s talent management strategy
Rating: N/A
New target for 2021

Improve governance disclosures in Resolute's Management Proxy Statement, including detailed disclosure of board member attendance
  Executive management is responsible for assessing and managing risk, subject to oversight by the board of directors; the board executes its oversight responsibility for risk assessment and risk management directly through its committees, including the audit committee, which met seven times in 2020
Rating: N/A
New target for 2021

Maintain enterprise risk management process to address risk factors identified by the corporate disclosure committee, executive management, as well as the board of directors' audit committee, as outlined in the company's 2020 Form 10-K
  Employees are expected to maintain the highest level of ethics and integrity in their dealings with customers, suppliers, fellow employees, shareholders and other stakeholders; the foundations of these expectations are defined in our Code of Business Conduct and Ethics Reporting Policy
Rating: N/A
New target for 2021

Conduct annual review of the company's Code of Business Conduct and Ethics Reporting Policy
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Sustainability Reporting and Transparency
2020 Targets 2020 Performance 2021 Targets
Maintain commitment to transparency and annual sustainability reporting, including completion of shared priorities assessment (i.e., materiality assessment) to inform our sustainability strategy and public commitments Completed consultative process of internal and external stakeholders in order to assess, review and update our shared priorities, which inform our sustainability strategy and public commitments

Completed 2019 annual reporting in accordance with the Global Reporting Initiative's (GRI) GRI Standards
Rating: =
Maintain commitment to transparency and annual sustainability reporting by integrating the United Nations' Sustainable Development Goals (SDG) into sustainability reporting prepared in accordance with GRI Standards
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Data Security and Privacy
2020 Targets 2020 Performance 2021 Targets
  Adopted three-year continuous improvement strategy, updated Information Technology Security Policy, and convened internal and external data security audit groups
Rating: N/A
New target for 2021

Review annually Resolute’s continuous improvement strategy for data security and privacy according to best practices, emerging trends and data security threats
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Customer Satisfaction
2020 Targets 2020 Performance 2021 Targets
Focus on customer satisfaction by measuring quality and service KPIs and monitoring established processes, and integrate Tissue into the process Continued to track KPIs on a monthly basis, as in previous years

Tissue joined initiative in August 2020
Rating: =
Focus on customer satisfaction by measuring quality and service KPIs and monitoring established processes for pulp, paper and tissue
Ensure 85% of root cause problem elimination (RCPE) cases are reviewed and closed Reviewed and closed 94% of RCPE cases
Rating: ++
Ensure 88% of RCPE cases are reviewed and closed
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Procurement
2020 Targets 2020 Performance 2021 Targets
Continue deployment of Regional Supplier Registry web portal across all operations to support development of local and regional business in our operating communities Ongoing deployment of Regional Supplier Registry web portal across operations: over 600 businesses have signed up in Quebec; portal to be rolled out in Ontario and the United States, including U.S. sawmills, as we define "local and regional markets" for each operation
Rating: >
Complete deployment of Regional Supplier Registry web portal across all operations to support development of local, regional and Indigenous business in our operating communities
Continue integration of sustainability practices in our procurement process, including tendering and contracts, in order to better track the sustainability of vendors’ supply chains Implemented guidelines relating to the review of procurement contracts as well as Guidelines for High-Risk Environmental Contracts; all new chemicals purchased are subject to approval of Resolute's corporate environmental and product stewardship director
Rating: >
Continue integration of sustainability practices by working with a representative sample of suppliers and related stakeholders to develop scope 3 GHG emission reduction commitments
Implement product compliance software system to better track conformity of our supply chain Environment and Legal selected requirements to be included in new '3E Connect' tracking system; contacted suppliers for data and regulatory documents to populate software
Rating: >
Complete implementation of '3E Connect' tracking system to support product stewardship and track conformity of our supply chain
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Indigenous Business Opportunities and Employment
2020 Targets 2020 Performance 2021 Targets
Provide equitable access to commercial opportunities and promote economic participation of Indigenous peoples and businesses in the forest products sector In addition to ongoing consultative relationships and business partnerships with close to 40 Indigenous communities and organizations:

Renewed agreement with Kitigan Zibi First Nation for access to approximately 151,900 m3 of wood fiber in the Outaouais region (Quebec)

Three-fold growth in Indigenous employment from Pekuakamiulnuatsh First Nation over three years to approximately 70 employees in the Lac-Saint-Jean region (Quebec)

Launched youth employment and training program in partnership with Wabigoon First Nation (Ontario), including a $24,978 contribution

Signed memorandum of agreement with Whitesand First Nation (Ontario)

Resolute nominees Autumn Quenville (Thunder Bay pulp and paper mill) and Chief Edward Wawia (Regional Deputy Grand Chief, Northern Superior Region, of the Leadership Council of the Anishnabek Nation) recognized with FPAC awards of excellence
Rating: =
Provide equitable access to commercial opportunities and promote economic participation of Indigenous peoples and businesses in the forest products sector
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Product Innovation
2020 Targets 2020 Performance 2021 Targets
Continue developing new ways to efficiently produce and commercialize innovative bio-products derived from wood C$27 million project to establish a commercial plant specializing in the production of cellulose filaments, a sustainable biomaterial derived from wood fiber, at our Kénogami (Quebec) paper mill

Additional C$11 million investment at Kénogami to enhance the paper mill’s short-term competitiveness by modernizing equipment in order to produce high-grade SCA+ supercalendered paper
Rating: >
Continue developing new ways to efficiently produce and commercialize innovative bio-products derived from wood
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained

Social Commitments


Health and Safety Incidents
2020 Targets 2020 Performance 2021 Targets
Achieve an Occupational Safety and Health Administration (OSHA) incident rate of 0.60 or less, with a long-term goal of zero injuries Achieved an OSHA incident rate of 0.62, including 2020-acquired U.S. sawmills (0.58 excluding the sawmills)
Rating: x
Achieve an OSHA incident rate of 0.60 or less, with a long-term goal of zero injuries
Achieve a severity rate of 17 or less Achieved a severity rate of 16.8, including 2020-acquired U.S. sawmills (17.4 excluding the sawmills)
Rating: +
Achieve a severity rate of 16 or less
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Health and Safety Procedures
2020 Targets 2020 Performance 2021 Targets
Ensure 100% of hourly employees submit at least two proactive near-miss reports 98% of hourly employees submitted at least two proactive near-miss reports*
Rating: x
Ensure more than 95% of hourly employees submit at least two proactive near-miss reports*
Review and resolve 75% of submitted proactive near-miss reports Reviewed and resolved 86% of proactive near-miss reports submitted*
Rating: ++
Review and resolve more than 75% of submitted proactive near-miss reports*
Ensure 95% of hourly employees create and review at least two job safety analyses (JSA), or safe operating procedure (SOP) reports 100% of hourly employees (maintenance and operations) created or reviewed at least two JSA or SOP reports
Rating: ++
Ensure more than 95% of all hourly employees create and review at least four JSA or SOP reports*
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Key Strategic Partnerships
2020 Targets 2020 Performance 2021 Targets
Ensure and sustain ongoing outreach with stakeholders, and develop key strategic partnerships across our operations Ongoing partnerships, including Two Sides and industry association initiatives, e.g. FPAC's The Greenest Workforce, AF&PA's Better Practices, Better Planet 2020, and the Paper & Packaging Board

Established land use agreements with local initiatives for access to Resolute property, including Salmotherm at Saint-Félicien (Quebec) pulp mill and Serres Urbaines Notre-Dame at Gatineau (Quebec) newsprint mill
Rating: =
Ensure and sustain ongoing outreach with stakeholders, and develop key strategic partnerships across our operations
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Renewal and Retention
2020 Targets 2020 Performance 2021 Targets
Continue developing our understanding of the attraction and retention challenges faced in each operating region, and implement new leadership and human resources practices to create an inclusive workplace that attracts, retains and engages a diverse workforce by:

- monitoring action plans developed by each operation
- executing development plans
- implementing Emerging Talent Program (ETP)
- assessing salaried employees’ effectiveness
- identifying candidates for accelerated development
- calibrating high-level development plan
Monitored action plans developed by each operation, helped execute development plans for all operations, and calibrated a high-level development plan for the company

With respect to assessing salaried employees’ effectiveness: effectiveness appraisal, talent review and succession planning were combined into one streamlined process, by function and/or by mill*

ETP delayed until 2022*
Rating: >
Continue developing our understanding of the attraction and retention challenges faced in each operating region, and implement new leadership and human resources practices to create an inclusive workplace that attracts, retains and engages a diverse workforce by:*

- monitoring action plans developed by each operation
- executing development plans
- assessing salaried employees’ effectiveness
- identifying candidates for accelerated development
- calibrating high-level development plan
Disclose annual hires, turnover rates and internal employee movements Hired 970 new and permanent hires, in addition to 580 student and seasonal workers, and recorded 52 internal promotions

Recorded 15.9% turnover rate, including a 12.2% voluntary turnover rate

214 internal employee movements
Rating: =
Disclose annual hires, turnover rates and internal employee movements
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Collective Agreements
2020 Targets 2020 Performance 2021 Targets
Renew nine expired or expiring collective agreements covering 700 employees at wood products operations in Canada In Canada, renewed six collective agreements covering 621 employees

Pending due to COVID-19 pandemic: Atikokan and Ignace (Ontario) sawmills, as well as Château-Richer, Resolute-LP Saint-Prime and the Côte-Nord and Senneterre woodlands in Quebec

In U.S., renewed collective agreements covering 689 unionized paper and tissue mill employees until 2023 and 2024
Rating: >
Renew six expired or expiring collective agreements covering 326 employees at wood products operations in Canada
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Employee Training
2020 Targets 2020 Performance 2021 Targets
Train 100% of new employees on the company’s Code of Business Conduct Trained 100% of new employees on the company’s Code of Business Conduct
Rating: +
Train 100% of new employees on the company’s Code of Business Conduct
Train 100% employees on workplace respect and civility All employees trained by December 31, 2020, with exception of Calhoun (Tennessee) management and a portion of U.S. hourly employees*
Rating: >
Train 100% of new employees on workplace respect and civility
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Community Outreach
2020 Targets 2020 Performance 2021 Targets
Ensure 100% of operations track community outreach activities consistently and transparently, while continuing to enhance local engagement with external stakeholders 100% of operations reported community outreach activities, with monthly average of 73%, a decrease from 2019*

U.S. sawmills joined program in August
Rating: +
Ensure 100% of operations report community outreach activities consistently and transparently, focusing on local engagement with external stakeholders
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Charitable Contributions with a Focus on
Environmental Stewardship, Health and Education
2020 Targets 2020 Performance 2021 Targets
Make annual community and charitable contributions of at least $1 million with emphasis on environmental stewardship, health and education programs in addition to supporting operations and employee fundraising initiatives $270,880 contributed to COVID-related support in addition to in-kind donations, such as facemasks, bath tissue and paper towels

An additional $327,000 in donations and sponsorships to community organizations in each of our operating communities (operations and corporate)

$250,550 granted through the Board of Directors' Safety Awards program to community organizations chosen by employees

$420,193 in grants and scholarships awarded to students, universities and colleges**

An estimated $215,000 in in-kind donations

$80,000 raised in lieu of Resolute golf tournament for the benefit of two health organizations in the Lac-Saint-Jean–Saguenay region (Quebec)

Total: $1.562 million
Rating: +
Make annual community and charitable contributions of at least $1 million with emphasis on environmental stewardship, health and education programs in addition to supporting operations and employee fundraising initiatives
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Public Policy
2020 Targets 2020 Performance 2021 Targets
Maintain best-in-class participation in the Resolute political action committee (PAC) at the U.S. operations level Actively communicated year-round with current base of PAC participants and conducted annual solicitation; contributed $61,500 to candidate campaigns
Rating: =
Maintain best-in-class participation in the Resolute PAC at the U.S. operations level and communicate regularly with PAC participants; special solicitation effort at our Arkansas, Florida and Tennessee operations
Ensure a Resolute voice in public policy discussions that impact company operations, employees, communities and partners Continued participation in Alliance boréale, Forestry Alliance, PAC, employee grassroots activities, etc.

President and CEO participated in annual meeting of Canadian Council of Forest Ministers

Resolute employees appointed members of two ministerial advisory councils in Ontario
Rating: =
Ensure a Resolute voice in public policy discussions that impact company operations, employees, communities and partners
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained

*Achievement of targets and commitments impacted by COVID-19 pandemic

**Includes $69,831 in awards from Resolute endowment funds