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. The following tables provide a summary Resolute’s sustainability performance for all the operations we owned or operated as at December 31, 2018.

Environment Commitments and Performance


Greenhouse Gas (GHG) Emissions
Commitments 2018 Performance 2019 Targets
Operate within established GHG reduction frameworks, e.g. AF&PA industry goal of surpassing a 20% reduction of GHG emissions by 2020 based on 2005 levels, and FPAC's ''30 by 30'' Climate Change Challenge Achieved an 81% reduction in absolute GHG emissions (scope 1 and 2) compared to 2000 levels

Implemented a C$29 M project at Thunder Bay (Ontario) pulp and paper mill, including C$14.7 M to reduce the mill’s annual GHG emissions by over 20%, or approximately 43,000 metric tons of CO2 equivalents per year

Completed the first phase of a C$61 M strategic investment plan at our Saint-Félicien (Quebec) pulp mill, including C$21.5 M to reduce GHG emissions by 20%, or approximately 35,000 metric tons of CO2 equivalents per year
Rating: >
Operate within established GHG reduction frameworks, e.g. AF&PA industry goal of surpassing a 20% reduction of GHG emissions by 2020 based on 2005 levels, and FPAC's ''30 by 30'' Climate Change Challenge
Continue to report climate data to CDP Increased our climate change disclosure score to a "B” (Management level), indicating that we have taken steps to assess potential environmental risk to our business operations, and implemented actions to manage them
Rating: +
Report climate change data and management practices to CDP, including scope 1, 2 and 3 emissions
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Environmental Incidents
Commitments 2018 Performance 2019 Targets
Report 32 or fewer environmental incidents Recorded 17 environmental incidents, a 10.5% improvement compared to 2017

Completed the third year of the second three-year cycle of environmental risk audits at all of our pulp, paper and tissue mills
Rating: ++
Report 20 or fewer environmental incidents, with a long-term goal of 0 incidents
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Forest Management (FM)
Commitments 2018 Performance 2019 Targets
Maintain certification of 100% of the forests we manage to at least one of two internationally recognized FM standards 100% of our managed forests remain certified to internationally-recognized standards

Participated in review of FSC® Controlled Wood and FM standards
Rating: =
Maintain certification of 100% of Resolute-owned or managed woodlands to at least one internationally recognized FM standard
Continue to report forests data to CDP Received a “A-” (Leadership level) for our forests disclosures, as well as for the actions we have taken to manage environmental risk and implement monitoring programs
Rating: +
Report forests data and management practices to CDP
Report no more than 3 regulatory infractions in each province Reported 1 regulatory infraction in Ontario - fine of $5,000

Reported 5 regulatory infractions in Quebec dating back to 2013 and 2014 - total fines of $7,295
Rating: x
Report no more than 6 forest management incidents leading to a regulatory infraction in Canada, excluding those of a strictly administrative nature
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Chain of Custody (CoC) Certification
Commitments 2018 Performance 2019 Targets
Maintain 100% of CoC certifications to internationally recognized standards, except the Hialeah tissue mill, which sources 100% of its recycled fiber from our U.S. pulp network 100% of operations chain of custody certified to internationally recognized standards, with the exception of the tissue operation at our Calhoun pulp, paper and tissue mill, to be certified in 2019
Rating: =
Maintain CoC certifications at 100% of certified facilities to internationally recognized standards

Complete CoC certification to internationally recognized standards at Calhoun tissue facility
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Environmental Management Systems (EMS)
Commitments 2018 Performance 2019 Targets
Complete ISO 14001 EMS certification at all operations, except at Hialeah and Sanford (Florida) tissue mills, to be certified in 2019 ISO 14001 audit of Menominee (Michigan) completed - certificate to be issued in 2019

Hialeah and Sanford to complete certification in 2019
Rating: >
Complete ISO 14001 EMS certification at all operations, including tissue mills
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Water Management
Commitments 2018 Performance 2019 Targets
Manage water efficiently and regularly evaluate water consumption at our facilities All of our mills have water reduction targets, and water consumption is regularly evaluated at our network of facilities
Rating: >
Manage water efficiently by continuing to establish annual water reduction targets for each of our pulp, paper and tissue mills
Continue to report water disclosures to CDP Awarded a “B-” (Management level) for our water security disclosures, reflecting the actions we have taken to evaluate and manage our potential environmental risks despite a decrease in our score compared to 2017
Rating: >
Disclose water security management practices and data to CDP
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained

Social Commitments and Performance


Community Outreach
Commitments 2018 Performance 2019 Targets
Enhance structure and ensure consistent reporting of the community outreach tracking initiative throughout the company Implemented monthly executive summaries of community engagement activities to enhance tracking initiative's structure, increasing our operations' average reporting rate by 20% (from 51% in 2017 to 71% in 2018)
Rating: >
Ensure 100% of operations track community outreach activities consistently and transparently, while continuing to enhance internal and external reporting of community engagement activities
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Customer Satisfaction
Commitments 2018 Performance 2019 Targets
Compare year-over-year KPIs, with focus on improving on-time delivery and reducing transit damage

Fully implement the root cause problem elimination (RCPE) process

Share best practices company-wide
Reduced paper claims by 21%, with transit damage down 2%; on-time delivery decreased by 2%

Reduced pulp claims by 75%; on-time delivery decreased by 3%

RCPE implemented at all pulp, paper and tissue mills
Rating: >
Focus on customer satisfaction by measuring quality and service KPIs and monitoring established processes

Ensure 80% of the RCPE cases are reviewed and closed
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Health and Safety - Incidents
Commitments 2018 Performance 2019 Targets
Achieve an OSHA incident rate of 0.75 or less Achieved an OSHA incident rate of 0.46, surpassing our best-ever performance attained in 2015 and 2017
Rating: ++
Achieve an OSHA incident rate of 0.65 or less, with a long-term goal of zero injuries
Achieve a severity rate of 19 or less Achieved a severity rate of 15.7, well below the target and industry averages
Rating: ++
Achieve a severity rate of 17 or less
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Health and Safety - Near-Misses
Commitments 2018 Performance 2019 Targets
Ensure all hourly employees submit 3 proactive near-miss reports 98% of hourly employees submitted at least 3 proactive near-miss reports, with a company-wide average of 7 reports per employee
Rating: x
Ensure 98% of hourly employees submit 3 proactive near-miss reports
New commitment 40,718 near-miss & proactive near-miss incidents reported and 88% have been reviewed and closed (vs internal target that was set at 70%)
Rating: N/A
Review and close 75% of submitted near-miss reports
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Aboriginal Business Opportunities and Employment
Commitments 2018 Performance 2019 Targets
Provide equitable access to commercial opportunities and promote economic participation of Aboriginal peoples and businesses in the forest products sector Aboriginal employment at Ontario sawmill operations: Ignace (31%), Thunder Bay (17%) and Atikokan (9%)

Signed on as Aboriginal Procurement Champions with Canadian Council for Aboriginal Business (CCAB)

5-year agreement signed with Pekuakamiulnuatsh Takuhikan First Nation in Mashteuiatsh (Quebec) for access to approximately 250,000 m3 of wood fiber per year

Agreed in principle to memorandum of agreement with the Metis Nation of Ontario

Continued development of Mechanical Engineering Technician (MET) millwright program through Confederation College in Thunder Bay
Rating: =
Provide equitable access to commercial opportunities and promote economic participation of Aboriginal peoples and businesses in the forest products sector, building on our membership with CCAB as an Aboriginal Procurement Champion
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Procurement
Commitments 2018 Performance 2019 Targets
Review our environmentally responsible procurement and supplier engagement practices in order to track and report on supply chain sustainability in key procurement sectors Rolled out regional procurement committees in Ontario and Quebec for Aboriginal procurement

Developed regional procurement guidelines for local procurement, to be initially rolled out in Canada

Introduced sustainability as a component of Procurement's RFQ process in order to track and report on supply chain sustainability
Rating: >
Implement regional procurement web portal

Further integrate sustainability practices in our procurement process, including tendering and contracts, in order to better track the sustainability of vendors’ supply chains
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Key Strategic Partnerships
Commitments 2018 Performance 2019 Targets
Ensure and sustain ongoing outreach with stakeholders and develop key strategic partnerships across our operations Led broad coalition of customers, business and trade associations, and others to defeat countervailing and anti-dumping duties on uncoated groundwood papers - ultimately rejected by U.S. International Trade Commission

Helped revitalize Alliance forêt boréale in Quebec as well as the Forestry Alliance in Ontario

Established consortium of forest sector companies with Confederation College in Thunder Bay to address workforce shortages and needs in Northwestern Ontario

Hosted Members of Congress and/or their staff at 8 facilities to enhance their understanding of our operations and the impact of pending legislation and regulations
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
Sustainability Oversight and Management Practices
Commitments 2018 Performance 2019 Targets
Maintain effective sustainability oversight and management practices Maintained oversight via 4 sustainability committee meetings, in addition to considering significance and relevance of introducing additional reporting frameworks

Appointment of Suzanne Blanchet to serve on the board of directors (January 31, 2019), increasing presence of women and sustainability experience on the board
Rating: =
Maintain effective sustainability oversight and management practices
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Sustainability Reporting and Transparency
Commitments 2018 Performance 2019 Targets
Committed to transparency and annual sustainability reporting: by year-end 2018, transition to the recently released GRI Standards for sustainability reporting developed by the Global Sustainability Standards Board Launched Facebook and Instagram social media properties aimed at younger demographic; optimized LinkedIn platform; produced several videos to support recruitment efforts

Ongoing transition to the recently released GRI Standards for sustainability reporting developed by the Global Sustainability Standards Board
Rating: =
Maintain commitment to transparency and annual sustainability reporting, including reporting environmental, social and governance disclosures to the Global Reporting Initiative using the new GRI Standards for sustainability reporting
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Renewal and Retention
Commitments 2018 Performance 2019 Targets
Implement new human resources practices to support workforce renewal and retention, and engage employees in company’s sustainability-focused vision and values Focused on creating an inclusive workplace to attract, retain and engage a diverse workforce, including: hiring 42 new Canadians and refugees; hiring 18 French international students; promoting recruitment initiatives to attract women
Rating: =
Further develop 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
New commitment Hired 1,330 new permanent and temporary employees
Rating: N/A  
Disclose annual hires and turnover rates
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Collective Agreements
Commitments 2018 Performance 2019 Targets
Renew 19 expiring collective agreements covering 1,291 employees at pulp, paper and wood products operations in Canada Renewed 12 of 19 collective agreements covering approximately 780 employees; 7 collective agreements covering approximately 300 employees in Canada are under negotiation
Rating: >
Renew 16 expiring collective agreements covering 1,400 employees at wood products and pulp and paper operations in Canada and the United States
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Employee Training
Commitments 2018 Performance 2019 Targets
Train 100% of employees on company’s new Code of Business Conduct, including training on anti-bribery, corruption and whistleblower programs Trained all new employees on the company’s Code of Business Conduct
Rating: =
Maintain training for 100% of new employees on the company’s Code of Business Conduct
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Product Innovation
Commitments 2018 Performance 2019 Targets
New commitment Launched pilot project at Thunder Bay pulp and paper mill, partnering with FPInnovations to produce biochemicals derived from wood
Rating: N/A
Develop new ways to efficiently produce and commercialize innovative bio-products derived from wood
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Charitable Contributions with a Focus on
Environmental Stewardship, Health and Education
Commitments 2018 Performance 2019 Targets
Make yearly charitable contributions with emphasis on environmental stewardship, and health & education programs Donated $300,160 through the Board of Directors' Safety Award

Donated $381,265 through operations donations

Donated $243,000 through corporate donations

Provided $469,489 in grants and scholarships to universities and colleges

Raised C$200,000 at the Resolute golf tournament in Lac-Saint-Jean for local organizations

Announced C$150,000 to Confederation College's TEC Hub (5 years each at C$30,000) in addition to providing C$160,000 in in-kind contributions

Total: $1.71 M
Donations and sponsorships: $1.12 M
Rating: =
Make annual charitable contributions of at least $1 M 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
Commitments 2018 Performance 2019 Targets
New commitment N/A
Rating: N/A
Ensure a Resolute voice in public policy discussions that impact company operations, employees, communities and partners

Maintain best-in-class participation in the Resolute PAC at the U.S. operations level
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained