Climate Change Data

Canfor Corporation (TSX:CFP) and Canfor Pulp Products Inc. (TSX:CFX)

Climate Impact & Sustainability Data (2007, 2008, 2015, 2020, 2020-07-01 to 2020-09-30, 2021, 2022, 2023)

Reporting Period: 2007

Environmental Metrics

ESG Focus Areas

  • Environmental Responsibility
  • Occupational Health & Safety
  • Community Engagement

Environmental Achievements

  • Shut down last Tier 1 beehive burner in Fort St. John.
  • Increased wood residue utilization from 73% in 2006 to 82% in 2007.
  • 96% of allowable annual cut under forest tenures independently certified to CSA standard for Sustainable Forest Management (CAN.CSA-Z809-02).

Social Achievements

  • Improved safety performance, reducing Medical Incident Reports (MIR).
  • All woodlands operations received ‘Safe Companies’ certification.
  • Continued corporate giving focusing on youth, education, community enhancement, forestry, environment, amateur sport, and health & wellness.

Governance Achievements

  • Maintained a transparent system for environmental reporting, including compliance reporting.
  • Took necessary actions to mitigate environmental consequences of non-compliance incidents.

Climate Goals & Targets

Long-term Goals:
  • Carbon neutrality by 2015 (industry target)
Medium-term Goals:
  • Work with industry and BC Ministry of Environment to develop phase-out program for Tier 2 beehive burners.
Short-term Goals:
  • Maintain Forest Management System.
  • Maintain existing CSA SFM certifications and complete certification of remaining operations.
  • Conduct SFM audits.

Environmental Challenges

  • 6 non-compliance incidents in forestry operations.
  • One minor spill in forestry operations.
  • Various non-compliance issues in manufacturing operations (air emissions, effluent, landfill, spills).
Mitigation Strategies
  • Took necessary actions to mitigate environmental consequences and correct conditions leading to incidents.
  • Promptly reported and cleaned up spills.
  • Implemented corrective actions for manufacturing non-compliance issues (e.g., phase-out plan for beehive burners).

Climate-Related Risks & Opportunities

Reporting Period: 2008

Environmental Metrics

Total Carbon Emissions:Decreased from 2007 (Specific figures not provided)
Total Energy Consumption:Decreased from 2007 (Specific figures not provided)

ESG Focus Areas

  • Environmental Responsibility
  • Occupational Health & Safety
  • Community Engagement

Environmental Achievements

  • Reduced GHG emissions in 2008 compared to 2007 due to reduced operational levels and increased wood residue usage (over 90% in 2008 from 53% in 2004).
  • 96% of allowable annual cut under forest tenures independently certified to the Canadian Standards Association (CSA) standard for Sustainable Forest Management (CAN.CSA-Z809-02).

Social Achievements

  • Improved safety performance, achieving a 2.72 Medical Incident Report (MIR) annual average (company-wide objective of 2.0).
  • Continued participation in United Way campaigns, exceeding previous year's donations in Northern BC despite economic challenges.
  • Partnership with University of Northern British Columbia in the construction of the Charles Jago Northern Sports Centre.

Governance Achievements

  • Maintained a transparent system for environmental reporting, including compliance reporting. Addressed non-compliance incidents promptly.

Climate Goals & Targets

Medium-term Goals:
  • Phase out remaining Tier 2 burners in BC.
Short-term Goals:
  • Maintain Forest Management System and CSA SFM certifications; conduct surveillance audits and re-certifications to ISO 14001 and CSA Z809-02 standards.

Environmental Challenges

  • Turbulent market conditions leading to reduced donations.
  • Non-compliance incidents related to air emissions, landfills, and spills at manufacturing operations.
  • Reduced operational levels impacting wood residue supply.
Mitigation Strategies
  • Implemented management plans to address compliance issues and prevent recurrence.
  • Took necessary actions to mitigate environmental consequences of non-compliance incidents.
  • Corrected mechanical problems and addressed weather-related issues contributing to non-compliance.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 14001, CSA Z809-02, PEFC

Certifications: CAN/CSA-ISO 14001:04, CAN.CSA-Z809-02, PEFC Chain of Custody

Reporting Period: 2015

Environmental Metrics

ESG Focus Areas

  • Sustainable Forest Management
  • Safety
  • Community Relations
  • Environmental Performance
  • Energy Efficiency

Environmental Achievements

  • Planted 78 million trees
  • Reduced greenhouse gas emissions significantly due to the sale of Taylor Pulp Mill
  • 98.5% of Canadian woodlands operations certified to third-party forest certification standards
  • All Canfor Pulp mills certified to FSC Chain of Custody standard
  • Reduced natural gas consumption at Northwood mill
  • Commissioned electrostatic precipitator on power boiler at Prince George Pulp and Paper, significantly lowering particulate emissions
  • Replaced atmospheric black liquor fibre filter at Intercontinental, eliminating the highest source of TRS from the mill
  • Improved energy efficiency by burning boiler ash with the highest heat value a second time, reducing ash to landfill by 60% to 70%
  • Implemented Valmet Process Quality Vision system at Intercontinental and Northwood pulp mills to improve quality control

Social Achievements

  • Achieved a company-wide medical incident rate (MIR) of 2.21 (Canfor's Canadian and US operations exceeded target with a MIR of 1.90; Canfor Pulp registered a MIR of 2.12)
  • Recognized as one of BC’s Top Employers for the fourth year in a row
  • Provided $79,689.80 through scholarship and bursary programs
  • Donated more than $580,000 for community activities
  • Expanded partnerships with First Nations
  • Hosted community events in all operating communities
  • Met with mayors of each operating community
  • Established high school scholarships for forestry and trades-related studies in all operating communities
  • Supported the 2015 Canada Winter Games

Governance Achievements

  • Canfor's Environment Policy and Sustainable Forest Management Commitments are developed and maintained by senior executives, approved by the President and CEO, and reviewed by the Board of Directors.
  • Canfor’s Corporate Environmental Management Committee provides high-level oversight and due diligence and advises the Board of Directors about manufacturing facility environmental and sustainable forest management performance.
  • The Board of Directors’ Joint Environmental, Health and Safety Committee reviews and makes recommendations to the board about environmental, health, and safety issues and relevant policies.

Climate Goals & Targets

Medium-term Goals:
  • Increase renewable energy generation to 1 million MWh
  • Achieve overall certified fibre supply level of 83%
Short-term Goals:
  • Reduce water consumption by 5% per unit of pulp produced at each mill
  • Identify specific opportunities to reduce solid waste
  • Identify thermal energy savings opportunities to achieve a 5% reduction at Northwood facility
  • Reduce natural gas consumption for boiler operations by 10% from 2015 levels
  • Implement Oxygen Delignification at Intercon mill to reduce AOX discharge
  • Implement new sludge press technology at Taylor mill to reduce moisture level in effluent solids

Environmental Challenges

  • Mountain pine beetle infestation
  • Increased number of incidents and road trespassers
  • Unbalanced conditions within local watersheds due to climate change
  • Illegal logging
Mitigation Strategies
  • Working with government to slow the spread of the beetle
  • Implementing strategies to mitigate potential mid-term loss of timber supply resulting from infestation
  • Working with researchers to understand how water flows may change due to climate change
  • Providing customers with information to meet international policies (EUTR, US Lacey Act, Australia’s Illegal Logging Prohibition Act)

Supply Chain Management

Supplier Audits: 82% of fibre comes from third-party certified sources

Responsible Procurement
  • Preference given to suppliers that offer third-party certified fibre

Climate-Related Risks & Opportunities

Physical Risks
  • Unbalanced conditions within local watersheds due to climate change
Opportunities
  • Reducing operating costs by using biomass instead of fossil fuels

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI)

Certifications: CSA, SFI, FSC

Sustainable Products & Innovation

  • Wood pellets

Awards & Recognition

  • Fortis BC’s Efficiency in Action Award
  • Canadian Industry for Energy Conservation (CIPEC) Leadership Award

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:76%
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Safety, Health and Wellness
  • Inclusion and Diversity
  • Indigenous Relations
  • Sustainable Forestry
  • Climate Change

Environmental Achievements

  • Planted 64 million seedlings
  • Maintained 100% SFI or FSC certification in Canadian woodland operations
  • Achieved 99% SFI Fibre Sourcing Standard in U.S.-sourced timber
  • Generated enough electricity to power over 78,000 homes for one year, of which 76% of the fuel consumed was from renewable sources

Social Achievements

  • Started building a Bio-Innovation team to develop new sustainable solutions

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • 30% under-represented groups in executive leadership positions by 2030
  • 30% under-represented groups in all other senior leadership positions by 2025
  • 33% under-represented groups for new hires annually by 2025
  • 50% under-represented groups for new hires annually by 2030
  • 100% of operating area covered by agreements with willing Indigenous Nations by 2030
  • Achieve 100% participation in Indigenous Cultural Awareness and Understanding training for all Canadian staff by 2021
  • Support U.S. land and woodlot owners to achieve 50% of SFI forest management or American Tree Farm System® certification by 2030
Short-term Goals:
  • 10% improvement year over year on Total Recordable Incident Frequency (TRIF)
  • Achieve 98% performance on Return-to-Work relative to medical Recovery Time Standards by 2023
  • 100% availability of gender specific Personal Protective Equipment (PPE) at all operations in North America by 2023
  • Achieve 100% completion of Inclusion and Diversity awareness training for all staff across North America by the end of 2021
  • Launch inclusive leadership training, tools and resources for supervisors and managers across North America by 2022
  • 5% of total spend with Indigenous vendors for Canfor’s Wood Products Canada business by 2025

Environmental Challenges

  • Not disclosed
Mitigation Strategies
  • Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: SFI, FSC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2020-07-01 to 2020-09-30

Environmental Metrics

ESG Focus Areas

  • Sustainability
  • ESG

Climate Goals & Targets

Environmental Challenges

  • Extensive fibre-related production downtime at Canfor Pulp due to COVID-19
  • Weak global pulp markets due to COVID-19
  • Need to replace lower furnace at Northwood pulp mill (RB5)
Mitigation Strategies
  • Four-week curtailment at Intercon and PG pulp mills
  • Scheduled maintenance downtime at Northwood and Taylor pulp mills
  • Replacement of lower furnace at Northwood pulp mill (RB5) at an estimated cost of $30 million

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:876,829 tonnes CO2e/year (non-biogenic scope 1 and 2)
Scope 1 Emissions:616,158 tonnes CO2e/year
Scope 2 Emissions:4,757 tonnes CO2e/year (location-based)
Scope 3 Emissions:Not disclosed
Renewable Energy Share:80%
Total Energy Consumption:56,171,300 GJ/year
Water Consumption:100,176 megalitres/year
Waste Generated:5,554,358 tonnes/year (wood products); 440,405 tonnes/year (pulp)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Safety, Health & Wellness
  • Inclusion & Diversity
  • Indigenous Relations
  • Human Rights
  • Community Engagement
  • Sustainable Forestry
  • Climate Change
  • Air Quality
  • Water Management
  • Waste Management
  • Residuals Management
  • Supply Chain Management
  • Energy Management

Environmental Achievements

  • Planted 54 million seedlings; more than one billion seedlings planted over the last 20 years
  • 100% of Canfor-managed forests are SFI or FSC Forest Management Standard certified; 100% of all sourced wood in the U.S. is certified to the SFI Fibre Sourcing Standard
  • 5.9 million tonnes of residuals diverted from landfills for use as hog fuel or processed into value-added products
  • 80% of energy consumption is from renewable sources

Social Achievements

  • 97% of Canadian salaried employees participated in the Indigenous Cultural Awareness and Understanding training
  • $1.8M in charitable giving to 310 organizations through Canfor's Good Things Come From Trees
  • 24% of our new hires were from under-represented groups
  • 94% of salaried employees across North America completed Inclusion & Diversity Awareness training

Governance Achievements

  • Disclosures aligned with the Task Force on Climate-related Financial Disclosures (TCFD) and the Sustainability Accounting Standards Board (SASB) standards, as well as continuing with the Global Reporting Initiative (GRI) standards

Climate Goals & Targets

Long-term Goals:
  • Become a net-zero carbon company by 2050
Medium-term Goals:
  • Achieve 50% under-represented groups for new hires annually by 2030
  • 30% under-represented groups in executive leadership positions by 2030
  • 30% under-represented groups in all other senior leadership positions by 2025
Short-term Goals:
  • Reduce absolute scope 1 and 2 carbon emissions by 42% by 2030 from a 2020 baseline year
  • Reduce water usage by 10% by 2030 (wood products)
  • Reduce water intensity of pulp and paper production by 10% by 2030 (pulp)

Environmental Challenges

  • Supply chain challenges
  • Tight labor market
  • Devastating wildfires
  • Climate change impacts on timber supply, transportation, and operations
  • Transition risks such as regulatory changes
  • Reputational risks
Mitigation Strategies
  • Incorporating sustainability into all aspects of the business
  • Developing operational plans to support achieving sustainability goals
  • Investing at least $250 million in carbon reduction projects by 2030
  • Developing alternative sourcing strategies
  • Implementing adaptation and mitigation strategies to manage climate-related risks
  • Continuously monitoring sustainability-related regulations

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Purchasing Policy
  • Environment Policy
  • Log Procurement Program Policy
  • Fibre Procurement Policy
  • Chain of Custody Policy

Climate-Related Risks & Opportunities

Physical Risks
  • Wildfires
  • Flooding
  • Extreme weather events
  • Insect infestations
Transition Risks
  • Changes in laws, regulations, and industry standards
Opportunities
  • Development of energy-efficient products
  • Shift to a circular, sustainable, low-carbon global economy

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: SFI, FSC, PEFC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 15 (Life on Land)
  • Goal 17 (Partnerships for the Goals)

Not disclosed

Sustainable Products & Innovation

  • Mass timber products
  • Biofuels (Arbios Biotech)

Awards & Recognition

  • Benefits Canada Magazine 'Best Financial Wellness Program of 2021'

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • climate change
  • sustainable forestry
  • energy management
  • inclusion and diversity
  • Indigenous relations

Environmental Achievements

  • Target to reduce scope 1 and 2 GHG emissions by 42% by 2030 compared to a 2020 baseline year
  • Commitment to investing at least $250 million in decarbonization projects

Social Achievements

  • New target to distribute $2 million annually to support community programs and initiatives through Canfor’s Good Things Come From Trees community giving program

Governance Achievements

  • Obtained limited assurance from an independent third party on scope 1 and 2 GHG emissions inventory for the 2020 baseline and 2022 performance year

Climate Goals & Targets

Medium-term Goals:
  • Reduce scope 1 and 2 GHG emissions by 42% by 2030

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Diversity and Inclusion
  • Forest Stewardship
  • Indigenous Partnerships

Environmental Achievements

  • Established a target to reduce scope 3 GHG emissions by 25% by 2030 from a 2022 baseline year. Previously established target to reduce scope 1 and 2 emissions by 42% by 2030 from a 2020 baseline year. Developed a Climate Change Strategy.

Social Achievements

  • 50% of North American new hires from under-represented groups; 98% of salaried employees in North America completed Inclusion and Diversity Awareness Training.
  • Advancing Indigenous partnerships, with almost half of our Canadian operating area covered by agreements with Nations.

Governance Achievements

  • Maintaining responsible forest stewardship practices with 100% of Canfor-managed forests certified to SFI® or FSC® Forest Management Standards, and 100% of all sourced wood in North American wood products operations certified to SFI Fibre Sourcing Standard.

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions by 2050
Medium-term Goals:
  • Reduce scope 3 GHG emissions by 25% by 2030 from a 2022 baseline year
  • Reduce scope 1 and 2 emissions by 42% by 2030 from a 2020 baseline year
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • 2023 was a challenging year for Canfor (details not specified in provided text).
Mitigation Strategies
  • Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi)

Certifications: SFI®, FSC® Forest Management Standards, SFI Fibre Sourcing Standard

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed