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, 2019.

Resolute is currently assessing the integration of the three U.S. sawmills acquired on February 1, 2020, into our sustainability reporting.

Environmental Commitments


Greenhouse Gas (GHG) Emissions
2019 Targets 2019 Performance 2020 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 Reduced absolute GHG emissions (scope 1 and 2) by 83% over 2000 levels

- Alma (Quebec) and Kénogami (Quebec): Optimization of electrical power boilers for an absolute direct (scope 1) emissions reduction of 6,000 metric tons of CO2 equivalents per year

- Baie-Comeau (Quebec): Increased control of combustion on boiler for a 50% reduction in oil usage, or approximately 4,000 metric tons of CO2 equivalents per year

- Coosa Pines (Alabama): Modernization of the cogeneration turbine in 2017-2018 has now resulted in a 65% reduction in purchased electricity (scope 2), or approximately 100,000 metric tons of CO2 equivalents per year

- Saint-Félicien (Quebec): Increase in operational stability and improvements to the power boiler for a reduction of 10,700 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
Report climate change data and management practices to CDP, including scope 1, 2 and 3 emissions Received a "B" (Management level) score, indicating that we are taking coordinated action on climate change and that we have taken steps to assess 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
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Environmental Incidents
2019 Targets 2019 Performance 2020 Targets
Report 20 or fewer environmental incidents, with a long-term goal of zero incidents Recorded 18 environmental incidents
Rating: ++
Report 18 or fewer environmental incidents, with a long-term goal of zero incidents
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Forest Management (FM)
2019 Targets 2019 Performance 2020 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
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 "B" (Management level) score, indicating that we are taking coordinated action on forests issues and have implemented monitoring programs
Rating: +
Report forests data and management practices to CDP
Report no more than six regulatory infractions in Canada, with a long-term goal of zero infractions Recorded one incident related to water crossing installation in Côte-Nord (Quebec) woodlands - fine of $6,000

Recorded one incident due to passage of machinery within 20-meter buffer zone of a water course in Lac-Saint-Jean (Quebec) Woodlands - fine of $1,125

Recorded two incidents related to trespasses of 2.7 and 6.0 hectares, respectively, in Ontario Woodlands (Sapawe Forest) - total fines of $6,915
Rating: ++
Report no more than five forest management incidents leading to a regulatory infraction 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
Chain of Custody (CoC) Certification
2019 Targets 2019 Performance 2020 Targets
Maintain CoC certifications at 100% of certified facilities to internationally recognized standards Maintained chain of custody certifications to internationally recognized standards at 100% of certified facilities
Rating: =
Maintain CoC certifications at 100% of certified facilities to internationally recognized standards
Complete CoC certification to internationally recognized standards at Calhoun (Tennessee) tissue facility Calhoun tissue facility's certification to be finalized in 2020
Rating: >
Finalize 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)
2019 Targets 2019 Performance 2020 Targets
Complete ISO 14001 EMS certification at all operations, including tissue mills Menominee (Michigan) pulp mill and Florida tissue mills' certification to be finalized in 2020
Rating: >
Maintain ISO 14001 EMS certification at 100% of certified operations
   
Rating: N/A
Finalize ISO 14001 EMS certification at Menominee mill and Florida tissue mills
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Water Management
2019 Targets 2019 Performance 2020 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: +
Manage water efficiently by continuing to establish annual water reduction targets for each of our pulp, paper and tissue mills
Disclose water security management practices and data to CDP Increased our water security disclosure score to a "B" (Management level), reflecting the actions we have taken to evaluate and manage our 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

Social, Governance and Economic Commitments


Community Outreach
2019 Targets 2019 Performance 2020 Targets
Ensure 100% of operations track community outreach activities consistently and transparently, while continuing to enhance internal and external reporting of community engagement activities 100% of operations tracked and reported community engagement activities

Increased average monthly reporting rate to 89% from 71% in 2018
Rating: +
Ensure 100% of operations track community outreach activities consistently and transparently, while continuing to enhance local engagement with external stakeholders
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Customer Satisfaction
2019 Targets 2019 Performance 2020 Targets
Focus on customer satisfaction by measuring quality and service key performance indicators (KPI) and monitoring established processes Continued to track all customer satisfaction KPIs: claims increased as we have seen historically with softening market conditions
Rating: >
Focus on customer satisfaction by measuring quality and service KPIs and monitoring established processes, and integrate Tissue into that process
Ensure 80% of the root cause problem elimination (RCPE) cases are reviewed and closed 89% of RCPE cases were reviewed and closed
Rating: ++
Ensure 85% of RCPE cases are reviewed and closed
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Health and Safety - Incidents
2019 Targets 2019 Performance 2020 Targets
Achieve an Occupational Safety and Health Administration (OSHA) incident rate of 0.65 or less, with a long-term goal of zero injuries Achieved an OSHA incident rate of 0.49
Rating: ++
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 22.3
Rating: x
Achieve a severity rate of 17 or less
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Health and Safety - Near-Misses
2019 Targets 2019 Performance 2020 Targets
Ensure 98% of hourly employees submit three proactive near-miss reports 98% of hourly employees submitted three proactive near-miss reports
Rating: +
Ensure 100% of hourly employees submit at least two proactive near-miss reports
Review and close 75% of submitted near-miss reports 87% of submitted proactive near-miss reports reviewed and resolved; 36,080 proactive near-miss incident reports submitted across all operations
Rating: ++
Review and resolve 75% of submitted proactive near-miss reports
   
Rating: N/A
Ensure 95% of hourly employees create and review at least two job safety analyses ("JSA"), or safe operating procedure ("SOP") reports
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Aboriginal Business Opportunities and Employment
2019 Targets 2019 Performance 2020 Targets
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 the Canadian Council of Aboriginal Business (CCAB) as an Aboriginal Procurement Champion Signed a memorandum of agreement with the Métis Nation of Ontario

Contributed $25,000 for the creation of the Nikanik Nit Ici Matcan Foundation, benefiting children from Quebec's three Atikamekw First Nations communities

Continued to build relationships with First Nations with a focus on Aboriginal recruitment, including the Mechanical Engineering Technician millwright program at Confederation College in Thunder Bay (Ontario)

Maintained partnerships and business ventures at multiple operations, including:

- the Opitciwan (Quebec) joint-venture sawmill, in which the Atikamekw Council of Obedjiwan has a 55% controlling interest in the facility, while Resolute owns 45%
- our Thunder Bay sawmill, located on Fort William First Nation land, that employs approximately 200 employees, 18% of whom are from this First Nation community
- a five-year agreement with the Pekuakamiulnuatsh First Nation, located in Mashteuiatsh (Quebec), for access to approximately 250,000 m3 of wood fiber
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
2019 Targets 2019 Performance 2020 Targets
Implement regional procurement web portal Launched Regional Supplier Registry web portal in French for Quebec operations, beginning with Baie-Comeau paper mill, with the goal of scaling the initiative across our operations in order to support development of local and regional business in our operating communities
Rating: >
Continue deployment of Regional Supplier Registry web portal across our operations to support development of local and regional business in our operating communities
Further integrate sustainability practices in our procurement process, including tendering and contracts, in order to better track the sustainability of vendors' supply chains Added principles of product stewardship to chemical contracts, including commitment to data reporting, information-sharing, chain of custody and environmental tracking, and put into place contract extensions covering principles of product stewardship for suppliers who signed on prior to introduction of new Master Supply Agreement
Rating: >
Continue integration of sustainability practices in our procurement process, including tendering and contracts, in order to better track the sustainability of vendors' supply chains
   
Rating: N/A
Implement product compliance software system to better track regulatory conformity of our supply chain
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Key Strategic Partnerships
2019 Targets 2019 Performance 2020 Targets
Ensure and sustain ongoing outreach with stakeholders and develop key strategic partnerships across our operations Helped mobilize the support of the Union des municipalités du Quebec's forest committee members to promote the sustainability and circularity (ie. circular economy) of forest products

Supported stakeholders' campaign to save Publisac

Maintained ongoing recruitment partnerships with Confederation College and Cégep de St-Félicien, including new partnership with Formabois
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
2019 Targets 2019 Performance 2020 Targets
Maintain effective sustainability oversight and management practices Appointment of Suzanne Blanchet as a member of our board of directors and chair of the Environmental, Health and Safety Committee, providing additional sustainability leadership at the board level

Maintained sustainability oversight via four Corporate Sustainability Committee meetings
Rating: =
Maintain effective sustainability oversight and management practices
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Sustainability Reporting and Transparency
2019 Targets 2019 Performance 2020 Targets
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 Completed 2018 annual reporting in accordance with GRI Standards

Completed verification audit of our sustainability reporting's compliance with GRI Standards and implemented corrective actions

Launched consultative process of internal and external stakeholders in order to review and update our Shared Priorities, which inform our sustainability strategy and public commitments
Rating: =
Maintain commitment to transparency and annual sustainability reporting, including completion of Shared Priorities assessment (ie. materiality assessment) to inform our sustainability strategy and public commitments
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Renewal and Retention
2019 Targets 2019 Performance 2020 Targets
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 Using a planning, attraction and recruitment diagnostic tool, established action plans for each operation

Assessed 100% of salaried employees' effectiveness through the Demonstrated Effectiveness Appraisal process, which is focused on enhancing organizational capability through managerial accountability and people development
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, retrains and engages a diverse workforce by:

- monitoring action plans developed by each operation
- executing development plans
- implementing Emerging Talent Program
- assessing salaried employees' effectiveness
- identifying candidates for accelerated development
- calibrating high level development plan
Disclose annual hires and turnover rates Hired 1,046 new permanent and temporary employees, including 33 international hires

Recorded 13.2% voluntary turnover rate - the number of retirements in 2019 decreased 29% compared to 2018
Rating: +
Disclose annual hires, turnover rates and internal employee movements
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Collective Agreements
2019 Targets 2019 Performance 2020 Targets
Renew 16 expiring collective agreements covering 1,400 employees at wood products and pulp and paper operations in Canada and the United States Renewed 12 of 16 collective agreements covering 1,149 employees at wood products and pulp and paper operations in Canada and the United States

Signed an additional 10 collective agreements covering 515 employees that will take effect in 2020
Rating: >
Renew 9 expired or expiring collective agreements covering 700 employees at wood products operations in Canada
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Employee Training
2019 Targets 2019 Performance 2020 Targets
Maintain training for 100% of new employees on the company's Code of Business Conduct Trained 99% of new employees on the company's Code of Business Conduct
Rating: x
Train 100% of new employees on the company's Code of Business Conduct
   
Rating: N/A
Train all employees on workplace respect and civility
++ Surpassed commitment + Achieved commitment = Maintained achievement
> Ongoing progress x Commitment unattained
Product Innovation
2019 Targets 2019 Performance 2020 Targets
Develop new ways to efficiently produce and commercialize innovative bio-products derived from wood Inaugurated TMP-bio plant at the Thunder Bay pulp and paper mill on May 27, 2019

Announced a 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 paper mill (January 15, 2020)
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
Charitable Contributions with a Focus on
Environmental Stewardship, Health and Education
2019 Targets 2019 Performance 2020 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 Total: $1.76 million
Donations and sponsorships only: $1.36 million

Contribution highlights include:

$223,000 through the Board of Directors' Safety Awards

$338,000 through operations-based donations

$281,000 through corporate donations

C$255,000 raised at the Resolute golf tournament in Lac-Saint-Jean for five health organizations in the Saguenay–Lac-Saint-Jean region of Quebec

$402,000 in grants and scholarships to universities and colleges
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
2019 Targets 2019 Performance 2020 Targets
Ensure a Resolute voice in public policy discussions that impact company operations, employees, communities and partners Supported Alliance forêt boréale in Quebec as well as the Forestry Alliance in Ontario with respect to public policy issues

Worked in close collaboration with industry associations and other stakeholder groups on a diverse range of public policy matters
Rating: =
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 Completed PAC employee solicitation campaign with a small increase in participation rate despite a decrease in the base of eligible employees and PAC participants following sale of Fairmont (Virginia) and Catawba (South Carolina) operations
Rating: =
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