resolute false promises: the [un]sustainability report 2013

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ESOLUTE’S FALSE PROMISES: THE [ UN ] SUSTAINABILITY REPORT 2013

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As one of the largest logging companies in Canada’s Boreal Forest, Resolute markets itself as “sustainable” to meet strong customer demand for responsible forest products. However, behind these claims are unsustainable forest practices, regulatory infractions, failure to protect endangered species, disregard for Indigenous rights and communities, and “green” products that don’t warrant the name. Resolute’s sustainability claims cannot be trusted. Read more in “Resolute’s False Promises: the [un]sustainability report 2013.”

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Page 1: Resolute False Promises: the [un]sustainability report 2013

esolute’s False Promises:The [un]susTainabiliTy reporT 2013

Page 2: Resolute False Promises: the [un]sustainability report 2013

“there is no doubt that sustainable develoPment has a major inFluence on how resolute does business.”RichaRd GaRneau, President and CeO, resOlute FOrest PrOduCts1

Page 3: Resolute False Promises: the [un]sustainability report 2013

Resolute’s False PRomises: the [un]sustainability RePoRt 2013 3

one of the largest logging companies in Canada’s

boreal Forest, resolute Forest products (TSX/NYSE: RFP)

operates in Quebec and ontario, providing a range

of forest products to domestic and international markets.

in marketing itself around the world, resolute makes

a number of impressive “sustainability” claims to assure

existing and potential customers of its commitment

to preserving Canada’s forests, respecting indigenous

rights and supporting local communities.

buy our products, they say, and you will help

conserve forests.

With 2012 sales of $4.5 billion, 22 mills and around

9,000 employees,2 resolute is positioned to be a leader

in Canada’s forest industry. but while resolute talks

a good sustainability talk, scratch below the surface

and a different story emerges – a story that should

be of concern to customers looking for responsibly

sourced forest products that meet their environmental

procurement policies and practices.

unsustainable forestry, regulatory infractions, failure

to protect endangered species, ‘green’ products that

do not warrant the name, certification that comes up

short, disregard for indigenous rights and communities

struggling for their fair share. These are the issues on

public record that resolute does not talk about. in

this report, Greenpeace has compiled the necessary

information to help paint, for customers, a fuller picture

than the company would like to admit. after conducting

a literature review, media analysis and using the best

available science, we expose the false promises in

resolute’s sustainability claims.

We believe that resolute has the ability to one day back

up sustainability claims. but to achieve this, it must take,

in a timely fashion, tangible action to protect forests

and endangered species, respect indigenous rights,

and support communities and workers.

introduction

logging in the montagnes blanches “endangered Forest.” © gReenPeace/FRançois Pesant

the montagnes blanches “endangered Forest” has amongst the highest density of woodland caribou in all of Quebec. resolute’s alma mill is known to source from this pristine area. © gReenPeace/maRkus mauthe

Page 4: Resolute False Promises: the [un]sustainability report 2013

tainted “Green” Products

“taking steps to responsibly manage our environmental footprint and improve our product diversification, we have introduced our align™ family of eco-conscious, budget-friendly paper grades…”Resolute FoRest PRoducts 2012 AnnuAl RePoRt 6

in 2012, resolute launched its “eco-conscious” align7

range of paper products, advertised heavily as having

positive benefits for human health, climate change,

energy and ecosystem quality grounds.8 not advertised

is the forest where this paper originates, the percentage

of recycled content, nor the logging practices used to

harvest trees in these forests. The impact that the paper’s

production has on high Conservation Value Forest (HCVF)

areas and endangered species are also not revealed.

The alma mill, at which resolute’s align uncoated paper

products are manufactured9 is known to source from

clearcuts in the Montagnes blanches “endangered Forest.”

Many of these clearcuts are in the last remaining intact

areas of this region, overlapping with some of the most

valuable caribou habitat and carbon-dense forest left

in the province.

recycled Fibre as % oF total Fibre used by resolute “year” and “overall recycled Fibre usaGe” 3, 4, 5

12%

2011

PENDING

2010 2012

9%

intact forest areas, like those found in the montagnes blanches (pictured here), play a critical role in mitigating global climate change. © gReenPeace/maRkus mauthe

Page 5: Resolute False Promises: the [un]sustainability report 2013

Resolute’s False PRomises: the [un]sustainability RePoRt 2013 5

canada’s “endanGered Forest” landscaPe

in 2010, Greenpeace commissioned Global Forest

watch canada to produce an analysis of the last

large intact regions of canada’s boreal Forest that

are open to logging development. this analysis was

further refined in 2012 to encompass threats from

encroaching development and logging in particular.

the result was the identification of five key boreal

Forest areas with exceptional ecological value

yet under severe threat from logging and resultant

fragmentation and degradation: the “endangered

Forests.”10 without concrete conservation planning

in these areas, their very existence is at risk.

Boreal Gem

TrouT l ake-CariBou ForesT

oGoki- kenoGami ForesT

BroadBaCk Valley ForesT

monTaGnes Bl anChes

Five “endangered Forest” areas for priority conservation are identified in canada’s boreal Forest. resolute currently operates in three of these areas to produce its “sustainable” products.

endanGered ForesT areas

BrandT Boreal reGion

norThern limiT oF manaGed ForesTs

12 values deFininG “endanGered Forest” areas in canada’s boreal:

• presence of old-growth forest;

• woodland caribou habitat;

• presence of wetlands;

• proximity to protected areas;

• surface area of intact forest;

• diversity of mammals;

• diversity of bird species;

• diversity of reptiles and amphibians;

• diversity of tree species;

• concentration of carbon in the soil;

• net carbon;

• and the presence of lakes and rivers.

visit www.greenpeace.ca/endangeredforests

to learn more.

Page 6: Resolute False Promises: the [un]sustainability report 2013

“it is important that carbon storage, freshwater and other ecosystem services be added to conservation planning currently focused on biodiversity or individual species, because impending climate change and other human-caused stresses threaten their security…” d.W. schindleR And P.G. lee, JouRnAl oF BioloGicAl conseRvAtion 11

intact forest areas, like those found in the Montagnes

blanches, play a critical role in mitigating global climate

change with their immense carbon reservoirs12 and sinks

that capture carbon from the atmosphere for hundreds

of years.13 Despite growing pressure from industrial

exploitation, the boreal Forest’s freshwaters continue

to provide crucial ecosystem services.14 paper made

from logging in sensitive boreal Forest areas critical

to Canada’s carbon and freshwater stores does not

align with any legitimate definition of “eco-conscious.”

“the task Force has compared energy requirements and environmental releases from 100 per cent recycled fiber-based and 100 per cent virgin fiber-based systems… this analysis shows clear and substantial environmental advantages from recycling all of the grades of paper we examined.”PAPeR tAsk FoRce: duke univeRsity, enviRonmentAl deFense Fund, Johnson & Johnson, mcdonAld’s, the PRudentiAl insuRAnce comPAny oF AmeRicA And time inc.15

“is it better for the environment to use recovered fiber for magazines versus virgin fiber in isolation? ... yes”liFe cycle Assessment oF deinked And viRGin PulP – PRePARed FoR nAtionAl GeoGRAPhic16

nowhere does resolute indicate the amount, if any, of

recycled fibre in its align range of products.17 Customers

looking for environmentally friendly options would be

surprised to learn that resolute’s top “eco-conscious”

line contains no recycled content, despite its proven

superiority in meeting environmental objectives including

a smaller biodiversity18 and energy footprint.19

There is also a dearth of information relating to overall

recycled content in resolute’s other products. on May 23,

2013, resolute indicated that it intends to publish annual

recycled fibre numbers for 2012 in a future sustainability

report. at time of writing, numbers in its annual report

put the company’s recovered fibre use at little over 10 per

cent of total fibre. resolute is “managing [its] exposure

to volatile recycled fiber,” 20 representing a major setback

for customers seeking sustainable products.

it appears resolute’s promise for a line of “eco-conscious”

products neglects the environmental advantages of recycled

fibre and the negative impacts of clearcut logging in

“endangered Forests” and their ability to mitigate climate

change and support species at risk.

logging road deep within the broadback valley “endangered Forest.”© gReenPeace/goRdon WelteRs

Page 7: Resolute False Promises: the [un]sustainability report 2013

Resolute’s False PRomises: the [un]sustainability RePoRt 2013 7

clearcut logging, shown here, is destroying canada’s endangered boreal Forests. resolute promotes sustainable forestry, but is actively logging in Quebec’s montagnes blanches “endangered Forest.” © gReenPeace/maRkus mauthe

Page 8: Resolute False Promises: the [un]sustainability report 2013

unsustainable Forestry Practices

“… consumers want to know that the paper they are using comes from sustainable sources… this presents a tangible opportunity for resolute…” Resolute FoRest PRoducts, 2012 AnnuAl RePoRt 21

resolute claims its products come from sustainable

and legal forestry operations. in reality, much of its pulp,

paper and lumber is sourced from remote and ecologically

valuable “endangered Forest” areas of the boreal Forest.

While consumer demand for sustainable products

undoubtedly presents a marketing opportunity for resolute,

what is not marketed is the impact of resolute’s logging

operations on the ground.

resolute operates in three of canada’s “endangered

Forest” areas to source its “sustainable” products.

in the northwest of ontario, the carbon-rich trout lake-

caribou “endangered Forest” is prized for its intact

caribou habitat and contains huge tracts of habitat

crucial for the survival of the brightsand herd.22

Quebec’s montagnes blanches “endangered Forest,”

where amongst the highest densities of woodland caribou

in Quebec have been observed,23 is one of the most

impressive intact areas in Canada’s managed boreal Forest.

This last large intact forest of saguenay – lac st-Jean

region overlaps with Mistissini Cree and Mashteuiatsh

and pessamit innu First nations traditional lands.

in the heart of Cree traditional territory lies one of

the last remaining intact forests of northwest Quebec –

the broadback valley “endangered Forest.”

“the crees have been fortunate enough to receive wide support for their conservation efforts in the past. we hope that this support continues for our efforts to protect the broadback river for benefit, not only of the crees and the residents of james bay, but for all who appreciate the importance of retaining rare intact ecosystems.” GRAnd chieF mAttheW coon come, GRAnd council oF the cRees (eeyou itchee), APRil 2013 24

These forests, located at the northernmost portion

of the commercial forest, are amongst the last swaths

of land free from industrial exploitation and fragmentation,

where fragile ecosystems take centuries to recover from

such disturbances and where the Quebec Ministry of

natural resources, amongst others, have questioned

the sustainability of harvesting.25

“the company adheres to the laws and regulations of the jurisdictions where it does business…”Resolute FoRest PRoducts, 2011 sustAinABility RePoRt 26

resolute’s “sustainable” operations have also attracted

over $1 million in fines arising from its forestry practices

in Quebec alone over the past decade.27 The most fined

operator in the province,28 its track record of persistent

regulatory infringements raises serious questions over the

sustainability of its operations in Canada’s “endangered

Forests.”

resolute’s promise to manufacture sustainable products

contrasts starkly with its destructive operations in

“endangered Forests.” Without adequate safeguards,

forest products currently sourced from these areas

threaten their ecological integrity, woodland caribou and

intact landscapes. as a result, products from these pristine

areas cannot and will not comply with environmental

procurement policies, in particular those which refer to

endangered or high Conservation Value Forests (HCVF).

They certainly do not meet the standard of “sustainable.”

Page 9: Resolute False Promises: the [un]sustainability report 2013

Resolute’s False PRomises: the [un]sustainability RePoRt 2013 9

trout-lake caribou

size: 1,617,536 hectares inTaCT: 86.6% leGally proTeCTeD: 8% habiTaT For speCies aT risK?: yes

montaGnes blanches

size: 2,307,743 hectares inTaCT: 85.7% leGally proTeCTeD: 0.1% inTeriM proTeCTeD: 11.2% habiTaT For speCies aT risK?:

yes

broadback valley

size: 2,264,401 hectares inTaCT: 77.2% leGally proTeCTeD: 0% inTeriM proTeCTeD: 14%

habiTaT For speCies aT risK?:

yesÜ

Ü Ü

data compiled by Global Forest watch canada based on most recent publicly available data.

Page 10: Resolute False Promises: the [un]sustainability report 2013

threats to endanGered sPecies

“all of the woodlands owned or managed by resolute are located within or near areas that play a role in maintaining biodiversity.”Resolute FoRest PRoducts, 2011 sustAinABility RePoRt 29

“existing levels of disturbance are considered to be in excess of herds specific tolerance thresholds, and further landscape disturbance will likely perpetuate the downward spiral of these populations.”QueBec WoodlAnd cARiBou RecoveRy tAsk FoRce, scientiFic AdvisoRy GRouP 30

resolute talks up the “vital role” protecting habitat plays

in its operations while in fact the company is actively

logging the remaining habitat of caribou herds that

have been deemed to be not self-sustaining, meaning

the likelihood of their survival in the long term is low.31

Woodland caribou are an iconic Canadian species, listed

on provincial and federal species at risk registries as

endangered or threatened with extinction.32 With a low

tolerance for human activity, they require up to 9,000 km²

of undisturbed boreal Forest to survive.33 They are also

considered an “umbrella species”, meaning that maintaining

caribou across the landscape ensures the survival of

dozens of other species that share the same habitat.34

Despite claims by resolute that it is addressing the

needs of caribou, ongoing and planned operations35

by resolute in northern portions of Forest Management

units (FMU) 25-51, 24-51, 27-51 go directly against key

recommendations from caribou experts.36 scientific

recommendations for the Temiscamie herd that overlaps

the Montagnes blanches “endangered Forest,” and assinica

and nottaway herds that overlap with the broadback Valley

“endangered Forest,” stipulate that no more disturbances

(e.g. logging) can be tolerated by caribou in these areas

as a result of the already excessively disturbed state

of these herds’ ranges.37 These iconic herds now face

a “downward spiral” should logging continue apace.38

The Trout lake-Caribou “endangered Forest’s” brightsand

herd is not faring much better and is already struggling

to cope with a 42 per cent habitat disturbance,39 in excess

of the 35 per cent maximum disturbance level required

for even a 60 per cent probability of long term survival.40

“Providing protection for forest biodiversity and habitat plays a vital role in the creation of our 25-year management plans developed in association with government and the public.” Resolute FoRest PRoducts, 2012 AnnuAl RePoRt 41

[the endangered species act is] “the single biggest threat to forestry in ontario.” JAmie lim, PResident And ceo, oFiA42

at the same time that resolute touts its record on

considering wildlife and positively engaging on public

policy, the company’s ontario representative organization,

the ontario Forest industries association (OFIA) has been

one of the most vocal and strident critics of the province’s

endangered species act (ESA).43 The ESA is a model piece

of conservation legislation essential for ensuring the survival

of endangered species like the woodland caribou and also

the long term supply of controversy free wood products

from resolute and other companies’ operations in ontario.

While resolute communicates to its customers the

importance of protecting forest biodiversity and endangered

species, it continues to log in critical caribou habitat and

undermine policies that protect those same endangered

species.

Page 11: Resolute False Promises: the [un]sustainability report 2013

Resolute’s False PRomises: the [un]sustainability RePoRt 2013 11

caribou herds in resolute manaGed Forest tenures and/or oPerations

herd % oF ranGe status risk endanGered Forest disturbed

briGhTsanD 42% as liKely as noT selF-susTaininG MoDeraTe TrouT laKe-Caribou

TeMisCaMie 46% noT selF-susTaininG hiGh broaDbaCK Valley/MonTaGnes blanChes

Manouane 39% as liKely as noT selF-susTaininG MoDeraTe MonTaGnes blanChes

pipMuaCan 59% noT selF-susTaininG hiGh MonTaGnes blanChes

assiniCa 51% noT selF-susTaininG hiGh broaDbaCK Valley

44

a woodland caribou runs across a road in the broadback valley “endangered Forest.” the iconic species is facing an uphill battle for survival in resolute tenures. © gReenPeace/goRdon WelteRs

Page 12: Resolute False Promises: the [un]sustainability report 2013

choosinG certiFication, neGlectinG conservation

“our adherence to third-party verified forest certification standards … provides our customers with the assurance that our forests are responsibly managed…” Resolute FoRest PRoducts 2012 AnnuAl RePoRt 45

resolute seems to be prioritizing certification over

conservation. but while resolute promotes its “100 per

cent certification achievement,” the scientific community

is increasingly emphasizing the importance of protecting

large tracts of land from any industrial operations (even

if it is certified to a credible standard).46 in other words,

in order to retain ecological integrity, responsible forest

management practices [such as those enshrined in the

Forest stewardship Council (FSC) system] must be coupled

with the permanent protection of large areas of intact forest

free from any industrial disturbance. resolute has failed

to do so, further degrading the habitat of caribou whose

ranges overlap with resolute’s FSC-certified operations.

For some of these, the likelihood of survival beyond

50 years is low due to continuing habitat destruction.47

resolute also appears to be failing to adhere to the rigorous

standards required by the FSC in other ways. For example,

since 2010, when resolute was awarded its first certificate

in the Montagnes blanches,48 at least 25 Corrective action

requests (CARs) and non-Conformance reports (NCRs)

have been issued by the Certifying body rainforest alliance

smartwood, mandating numerous changes in the company’s

operations, including issues relating to protected areas,

endangered species and indigenous peoples rights.49

Page 13: Resolute False Promises: the [un]sustainability report 2013

Resolute’s False PRomises: the [un]sustainability RePoRt 2013 13

The Grand Council of the Cree (eeyou istchee), a

representative body for nine Cree First nations communities,

also asserts that resolute’s logging in the Montagnes

blanches “endangered Forest” region violates principle 3

of the national boreal standard. The Crees have challenged

resolute’s FSC certificate in order to have their rights,

including free, prior and informed consent, respected.

Four of resolute’s FSC certificates in ontario and

Quebec, according to our analysis, are furthermore out

of compliance with FSC standards and policies and have

been appealed under FSC procedures. These issues which

pertain to high Conservation Value Forests, indigenous

rights, environmental management and protected areas

remain unresolved.

FSC certification is an important part of ensuring

sustainable forest management, however these certificates

become an unfulfilled promise when resolute fails to

respect the standards required by the FSC and fails

to couple certification with the permanent and legislated

protection of large areas of intact forest free from any

industrial disturbance.

clearcuts continue to dot canada’s boreal Forest, threatening its ecological integrity, biological diversity and cultural values. © gReenPeace/FRançois Pesant

Page 14: Resolute False Promises: the [un]sustainability report 2013

“…they cannot give their free and informed consent to the forest management plan on the portion of their traditional territory covered by this certificate”AlexAndRe BouRsieR, ReGionAl diRectoR, RAinFoRest AlliAnce cAnAdA 54

again in 2013, resolute did not hesitate in joining the

province of ontario in rolling back a landmark legal victory

for the First nations community of Grassy narrows which

would have required consent for developments in their

traditional territories.55 For years, resolute had logged

Grassy narrows’ traditional territory in the Whiskey

Jack Forest, located in northwestern ontario, without

the community’s consent, resulting in one of the longest-

standing blockades in Canadian history.56 resolute

surrendered its license amid a storm of negative

publicity in 2008.57

“in waswanipi’s traditional territory, only the areas around lake evans and immediately north of the broadback river remain road-less, untouched by forestry development. once these areas are gone, there will be no place left in waswanipi to show our children what the forest was once truly like when our elders thrived there.”chieF PAul Gull, WAsWAniPi cRee FiRst nAtion 58

also not mentioned in the company’s sustainability

reporting, resolute for many years has logged on algonquin

First nations’ lands north of ottawa, sparking conflicts

with communities opposed to clearcut logging operations.

These forests have played a central role in the economic

and spiritual life of algonquin communities for countless

generations and contain historically, ecologically and

socially significant sites in abundance.59 resolute’s

approach has been to ignore their right to consent and

has gone so far as to take legal action against community

leaders.60

resolute talks about respecting First nations communities

but its policies and practices don’t recognize their rights

and the company continues to generate conflict through

unsustainable operations on culturally valuable forests.

“resolute Forest Products recognizes and respects the cultural and social significance of the land, water and forests of canada to its aboriginal peoples.”Resolute FoRest PRoducts ABoRiGinAl PeoPles Policy 50

“any policy commitment made in relation to human rights and indigenous peoples should include how the business enterprise will seek to obtain the free, prior and informed consent of indigenous peoples, and respect, protect and fulfill all the rights and obligations contained in the un declaration on the rights of indigenous Peoples.”united nAtions exPeRt mechAnism on the RiGhts oF indiGenous PeoPles, 2012 51

in 2012, resolute published a formal policy governing

its relations with First nations in Canada. To prepare this

policy, they claim to have surveyed the aboriginal relations

policies from unspecified resource companies operating

in Canada, the united states and australia.52 but nowhere

in the company’s policy is the united nations declaration

on the rights of indigenous Peoples mentioned, nor is the

right to free, prior and informed consent (FPIC) recognized.

This has consequences for resolute’s operations on

the ground. in 2013, the rainforest alliance (resolute’s

FSC Certifying body for its operations in the Montagnes

blanches “endangered Forest”) found that the Crees had

not given their consent to logging operations within their

traditional territories.53 as a result, the Cree filed a formal

complaint through the FSC dispute resolution system.

The issue remains unresolved.

inFrinGinG indiGenous riGhts

in 2010, Greenpeace and the cree nation of waswanipi protest against the construction of logging roads in the broadback valley “endangered Forest.” © gReenPeace/simon bujold

Page 15: Resolute False Promises: the [un]sustainability report 2013

Resolute’s False PRomises: the [un]sustainability RePoRt 2013 15

irresPonsible community Partner

“we know that our long-term profitability depends on… being a responsible partner in the communities where we live and work.”Resolute FoRest PRoducts: vision And vAlues 61

“building solid community relations in our operating locations, recognizing that economically viable and civically involved companies support long-term regional prosperity…” Resolute FoRest PRoducts 2011 sustAinABility RePoRt 62

resolute would “be paying less than intercity mall. ridiculous. industry has to pay their share and not burden … the residential taxpayer with it. and that’s what … will happen.”city oF thundeR BAy mAyoR keith hoBBs 63

in april of 2013, resolute appealed to the Municipal

assessment Corporation to lower its assessment of

the company’s Thunder bay mill complex by 60 per

cent, retroactive to 2009.64 This would leave the City

of Thunder bay, with a population of 109,000, and upon

which resolute depends for much of its labour, owing

as much as $7.5 million in retroactive tax payments and

missing out on $1.8 million annually going forward.65

resolute has been operating in Thunder bay for decades.

“the closure of the bowater mill was a devastating blow to families and businesses…”novA scotiA leGislAtive AssemBly memBeR vicki conRAd 66

Despite being in the community for decades and after

workers supported the company’s emergence from

bankruptcy protection by agreeing to reduced wages

and pension benefits,67 resolute announced in June 2012

that its bowater Mersey mill on nova scotia’s south shore

would be closed.68 The company left the government of

nova scotia with millions in unfunded pension liabilities.69

early estimates of clean-up costs at the mill, which

is now owned by the provincial government, come in

at $8.75 million.70

“we did enough. they went and bought Fibrek for a hundred-million bucks. they could have put that in the pension plan. so, if they’re gonna come back and ask for more from the workers, well, i don’t think it’s going to be too long of a conversation.”GARy BRAGnAlo, PResident oF communicAtions, eneRGy And PAPeRWoRkeRs union locAl 39, thundeR BAy, ontARio 71

according to the Communications, energy and

paperworkers union (CEP), resolute employees surrendered

16 per cent in combined pay and benefits to help the

company emerge from bankruptcy protection.72 Despite

this, and a directive that the company increase special

payments to balance worker’s pension funds, the company

is further pressuring workers to make further cuts.73 The

company has brought provincial pension regulators to court

after they attempted to seek payments to close shortfalls

in the company’s pension plans, which it was obligated to

do under emergence rules.74 These issues remain formally

unresolved.

resolute promotes itself as a responsible community

partner committed to regional prosperity. but under closer

scrutiny, a pattern emerges of underfunded workers’

pensions, unwillingness to pay a fair share of taxes

and abandoning local communities with devastating

environmental and economic impacts.

resolute’s thunder bay mill complex. the company is fighting to claw back tax payments from the city of 109,000, and for reduced taxes in the future.© gReenPeace/shane moFFatt

Page 16: Resolute False Promises: the [un]sustainability report 2013

conclusion

Forest product companies can do good.

We believe that many in Canada are working to legitimately

improve the sustainability of their operations, support the

communities in which they operate and respect indigenous

rights. unfortunately their efforts and the reputation of

the industry as a whole are undermined when companies

like resolute pretend to be sustainability leaders.

sustainability must be more than just a word used in

marketing materials. To be credible, it must permeate

and direct how operations throughout the company

are conducted. Currently, in resolute’s case, behind its

purposeful marketing are logging operations impacting

ecologically and culturally valuable boreal Forest,

endangered species facing a precipitous decline,

disregard for indigenous rights and disrespect for

workers and the communities in which they operate.

To become a company worthy of its sustainability claims,

resolute must take tangible action that demonstrates

change in the forest and communities. resolute should:

• suspend logging in “endangered Forests”,

• undertake urgent conservation planning

for these areas,

• Publically support large scale, legislated

protected areas,

• Fix shortcomings in their forestry certifications,

• ensure a fair share for local communities, and

• adopt free prior and informed consent

as the basis for engaging with First nations.

Customers have a choice – to take resolute at face value

or to dig a little deeper and examine what is behind their

claims to make fully informed decisions that comply with

their environmental procurement policies and social

expectations.

Just as customers have a choice, so too does resolute.

To invest in marketing campaigns or to take real action

to conserve Canada’s forests and give communities and

workers a fair shake. We believe resolute has the ability

to one day become a true leader in the forestry industry.

resolute now has the opportunity to decide whether it

will continue to make false promises or to keep real ones.

Page 17: Resolute False Promises: the [un]sustainability report 2013

Resolute’s False PRomises: the [un]sustainability RePoRt 2013 17

Page 18: Resolute False Promises: the [un]sustainability report 2013

1 resolute Forest products, 2011 sustainability report, “letter to stakeholders” p.6: http://www.resolutefp.com/uploadedFiles/Media/publications/resolute_sustainability_report_2011.pdf

2 http://www.resolutefp.com/Media/Fast_Facts/

3 resolute Forest products, 2011 sustainability report, p.40: http://www.resolutefp.com/uploadedFiles/Media/publications/resolute_sustainability_report_2011.pdf

4 ibid.

5 see generally resolute Forest products, 2012 annual report: http://www.resolutefp.com/uploadedFiles/investors/Financial_reports/resolute_Forest_products-2012_annual_report.pdf

6 resolute Forest products, 2012 annual report, p.22: http://www.resolutefp.com/uploadedFiles/investors/Financial_reports/resolute_Forest_products-2012_annual_report.pdf

7 see: www.alignpaper.com

8 resolute Forest products, 2012 annual report, preamble: http://www.resolutefp.com/uploadedFiles/investors/Financial_reports/resolute_Forest_products-2012_annual_report.pdf

9 see: http://www.alignpaper.com/en/papers

10 boreal alarm – a wake up call for action in Canada’s endangered Forests: http://www.greenpeace.org/canada/Global/canada/report/2013/01/hotspotreport.pdf

11 D.W. schindler and p.G. lee, Comprehensive conservation planning to protect biodiversity and ecosystem services in Canadian boreal regions under a warming climate and increasing exploitation, biological Conservation 143 (2010) pp. 1572–1573.

12 s. T. Gower, o. Krankina, r. J. olson, M. apps, s. linder, and C. Wang 2001. net primary production and Carbon allocation patterns of boreal Forest ecosystems, ecological applications 11: p.1395.

13 luyssaert, sebastiaan, schulze, e. Detlef, borner, annett, Knohl, alexander, hessenmoller, Dominik, law, beverly e., Ciais, philippe and Grace, John. old-growth forests as global carbon sinks. nature, 2008. 455(7210): p. 213-215.

14 D.W. schindler and p.G. lee, Comprehensive conservation planning to protect biodiversity and ecosystem services in Canadian boreal regions under a warming climate and increasing exploitation, biological Conservation 143 (2010) pp. 1571–1586.

15 paper Task Force recommendations for purchasing and using environmentally preferable paper: Duke university, environmental Defense Fund, Johnson & Johnson, McDonald’s, The prudential insurance Company of america and Time inc., pp. 78-80: http://epa.gov/epawaste/conserve/tools/warm/pdfs/environmentalDefenseFund.pdf

16 life Cycle assessment of Deinked and Virgin pulp – prepared for nationalGeographic Washington DC. prepared by: enViron international Corporation Denver, Co, november 2012. project number 3224568b http://www.greenamerica.org/pdf/natGeo-lCa-report-2013.pdf

17 http://www.alignpaper.com/en/papers

18 paper Task Force recommendations for purchasing and using environmentally preferable paper: Duke university, environmental Defense Fund, Johnson & Johnson, McDonald’s, The prudential insurance Company of america and Time inc., p.48 & 80: http://epa.gov/epawaste/conserve/tools/warm/pdfs/environmentalDefenseFund.pdf

19 life Cycle assessment of Deinked and Virgin pulp – prepared for national Geographic Washington DC. prepared by: en Viron international Corporation Denver, Co, november 2012. project number 3224568b http://www.greenamerica.org/pdf/natGeo-lCa-report-2013.pdf

20 resolute Forest products, 2012 annual report, p.30: http://www.resolutefp.com/uploadedFiles/investors/Financial_reports/resolute_Forest_products-2012_annual_report.pdf

21 resolute Forest products, 2012 annual report p.54: http://www.resolutefp.com/uploadedFiles/investors/Financial_reports/resolute_Forest_products-2012_annual_report.pdf

22 environment Canada. 2012. recovery strategy for the Woodland Caribou (rangifer tarandus caribou), boreal population, in Canada. species at risk act recovery strategy series. environment Canada, ottawa. xi p.124

23 environment Canada. scientific review for the identification of Critical habitat for Woodland Caribou (rangifer tarandus caribou), boreal population, in Canada 2008, p. 45. and rudolph, T. D., Drapeau, p., st laurent, M h. and imbeau, l. 2012. status of Woodland Caribou (rangifer tarandus caribou) in the James bay region of northern Quebec. scientific report presented to the Ministere des ressources naturelles et de la Faune du Quebec and the Grand Council of the Crees (eeyou istchee). Montreal, QC. 72 p. 15: http://chaireafd.uqat.ca/publication/ articlepDF/2012FinalreportstatusWoodlandCaribouJamesbay_ eeyouistchee.pdf

24 Crees launch Campaign to protect the broadback river, press release 2013-04-10: http://www.gcc.ca/newsarticle.php?id=304

25 Ministère des ressources naturelles du Québec. la limite nordique des forêts attribuables : rapport final. 2000. Québec. see p.41 ftp://ftp.mrnf.gouv.qc.ca/public/bibliointer/Mono/2012/02/0826096.pdf

26 resolute Forest products, 2011 sustainability report, p.57: http://www.resolutefp.com/uploadedFiles/Media/publications/resolute_sustainability_report_2011.pdf

27 http://www.greenpeace.org/canada/Global/canada/report/2013/05/infractions-a-la-loi-sur-les-forets.pdf

28 ibid.

29 resolute Forest products, 2011 sustainability report, p.23: http://www.resolutefp.com/uploadedFiles/Media/publications/resolute_sustainability_report_2011.pdf

30 rudolph, T. D., Drapeau, p., st- ‐laurent, M- ‐h. and imbeau, l. 2012. status of Woodland Caribou (rangifer tarandus caribou) in the James bay region of northern Quebec. scientific report presented to the Ministère des ressources naturelles et de la Faune du Québec and the Grand Council of the Crees (eeyou istchee). Montreal, QC. 72 p. 55: http://chaireafd.uqat.ca/publication/articlepDF/2012Finalreportstatus WoodlandCaribouJamesbay_eeyouistchee.pdf

31 environment Canada. scientific review for the identification of Critical habitat for Woodland Caribou (rangifer tarandus caribou), boreal population, in Canada 2008, p. 45.

32 see, e.g. http://www.sararegistry.gc.ca/species/speciesDetails_ e.cfm?sid=636; http://www.gov.mb.ca/conservation/wildlife/sar/sarlist.html and http://www.mnr.gov.on.ca/en/business/species/2Columnsubpage/276722.html

33 Courtois, réhaume, la conservation du caribou dans un contexte de perte d’habitat et de fragmentation du milieu. 2003, université du Québec à rimouski: rimouski. p. 350pp. schaefer, J. a., and Mahoney, s.p.. spatial and temporal scaling of population density and animal movement: a power law approach. ecoscience, 2003. 10(4): p. 496-501. rettie, W. J. and Messier, F. hierarchical habitat selection by woodland caribou: its relationship to limiting factors. ecography, 2000. 23(4): p. 466-478. smith, K. G., Ficht, e. J., hobson, D., sorensen, T. C. and hervieux, D. Winter distribution of woodland caribou in relation to clearcut logging in west-central alberta.Canadian Journal of zoology, 2000. 78(8): p. 1433-1440. environment Canada. scientific review for the identification of Critical habitat for Woodland Caribou (rangifer tarandus caribou), boreal population, in Canada. 2008. hins, Caroline, ouellet, Jean-pierre, Dussault, Claude and st-laurent, Martin-hugues. habitat selection by forest-dwelling caribou in managed boreal forest of eastern Canada: evidence of a landscape configuration effect. Forest ecology and Management, 2009. 257(2): p. 636-643.Weclaw, p. and hudson, r. J. simulation of conservation and management of woodland caribou. ecological Modelling, 2004. 177(1-2): p. 75-94.

34 hummel, M., and ray, J.C, Caribou and the north: a shared Future. 2008. Dundurn press

35 produits Forestiers résolu. plan general d’aménagement forestier 2008-2013, unité d’aménagement forestier 25-51. 2007. http://www.resolutefp.com/uploadedFiles/Menus/sustainability/abiboW_laC_pGaFdoc_b02G08_02551_approuverlacroix.pdf ; Ministère des ressources naturelles. plan d’aménagement forestier intégré tactique, unité 25-51. 2012. p.103 http://www.mrn.gouv.qc.ca/publications/forets/consultation/saguenay-lac-saint-jean/pafit-saguenay-lac-saint-jean-025-51.pdf and produits Forestiers résolu. plan d’aménagement forestier durable TFD lac st-Jean. 2012. http://www.resolutefp.com/uploadedFiles/sustainability/Forestry_and_Fiber_sourcing/Certification_by_operation/lac-saint-Jean_saint-F%C3%a9licien-plan_aFD.pdf

36 rudolph, T. D., Drapeau, p., st- laurent, M- h. and imbeau, l. 2012. status of Woodland Caribou (rangifer tarandus caribou) in the James bay region of northern Quebec. scientific report presented to the Ministère des ressources naturelles et de la Faune du Québec and the Grand Council of the Crees (eeyou istchee). Montreal, QC. 72 p. 47 and 55: http://chaireafd.uqat.ca/publication/articlepDF/2012FinalreportstatusWoodlandCaribou Jamesbay_eeyouistchee.pdf

37 rudolph, T. D., Drapeau, p., st. laurent, M h. and imbeau, l. 2012. status of Woodland Caribou (rangifer tarandus caribou) in the James bay region of northern Quebec. scientific report presented to the Ministere des ressources naturelles et de la Faune du Quebec and the Grand Council of the Crees (eeyou istchee). Montreal, QC. 72 p. 55: http://chaireafd.uqat.ca/publication/articlepDF/2012Finalreportstatus WoodlandCaribouJamesbay_eeyouistchee.pdf

38 ibid.

39 environment Canada. 2012. recovery strategy for the Woodland Caribou (rangifer tarandus caribou), boreal population, in Canada. species at risk act recovery strategy series. environment Canada, ottawa. xi p.124

40 environment Canada. 2012. recovery strategy for the Woodland Caribou (rangifer tarandus caribou), boreal population, in Canada. species at risk act recovery strategy series. environment Canada, ottawa. xi p.Vii

41 resolute Forest products, 2012 annual report, p.45: http://www.resolutefp.com/uploadedFiles/investors/Financial_reports/resolute_Forest_products-2012_annual_report.pdf

42 anger mounts over endangered species act, July 31, 2008, Working Forest staff: http://www.workingforest.com/anger-mounts-over-endangered-species-act/

43 “since 2007, the implementation of the esa has been an ongoing source of uncertainty for companies.” Jamie lim (president and Ceo, oFia) pre-budgetary consultations before the ontario legislative assembly’s standing Committee on Finance and economic affairs, March 2013: http://www.ontla.on.ca/web/committee-proceedings/committee_transcripts_details.do?locale=fr&billiD=&parlCommiD=8957&business=pre-budget%20consultations&Date=2013-03-12&DocumentiD=26709

44 risk to achieving stable or positive population growth, as per environment Canada, 2012 recovery strategy for the Woodland Caribou (rangifer tarandus caribou), boreal population, in Canada. species at risk act recovery strategy series. environment Canada, ottawa. xi p.66. For herd-

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specific data, see environment Canada, 2012 p. 69; and rudolph, T. D., Drapeau, p., st. laurent, M h. and imbeau, l. 2012. status of Woodland Caribou (rangifer tarandus caribou) in the James bay region of northern Quebec. scientific report presented to the Ministere des ressources naturelles et de la Faune du Quebec and the Grand Council of the Crees (eeyou istchee). Montreal, QC. 72 p. 39: http://chaireafd.uqat.ca/ publication/articlepDF/2012FinalreportstatusWoodlandCaribouJamesbay_eeyouistchee.pdf

45 resolute Forest products, 2012 annual report, p.41: http://www.resolutefp.com/uploadedFiles/investors/Financial_reports/resolute_Forest_products-2012_annual_report.pdf

46 hannah, lee. protected areas and Climate Change. annals of the new york academy of sciences, 2008. 1134 (The year in ecology and Conservation biology 2008): p. 201-212. sarakinos, h., nicholls, a. o., Tubert, a., aggarwal, a., Margules, C. r. and sarkar, s. area prioritization for biodiversity conservation in Quebec on the basis of species distributions: a preliminary analysis. biodiversity and Conservation, 2001. 10(9): p. 1419-1472. rodrigues, ana s. l. and Gaston, Kevin J. how large do reserve networks need to be? ecology letters, 2001. 4(6): p. 602-609. Wiersma, yolanda F., nudds, Thomas D. and rivard, Donald h. Models to distinguish effects of landscape patterns and human population pressures associated with species loss in Canadian national parks. landscape ecology, 2004. 19(7): p. 773-786. rivard, Donald h., poitevin, Jean, plasse, Daniel, Carleton, Michel and Currie, David J. Changing species richness and Composition in Canadian national parks. Conservation biology, 2000. 14(4): p. 1099-1109. Wiersma, yolanda F. and nudds, Thomas D. efficiency and effectiveness in representative reserve design in Canada: The contribution of existing protected areas. biological Conservation, 2009. 142(8): p. 1639-1646. Gurd, D. b., T. D. nudds, and D. h. rivard. Conservation of mammals in eastern north american wildlife reserves: how small is too small? Conservation biology, 2001. 15: p. 1355-1363. Gurd, D. brent and nudds, Thomas D. insular biogeography of mammals in Canadian parks: a re-analysis. Journal of biogeography, 1999. 26(5): p. 973-982. pressey, r. l., humphries, C. J., Margules, C. r., Vane-Wright, r. i. and Williams, p. h. beyond opportunism: Key principles for systematic reserve selection. Trends in ecology & evolution, 1993. 8(4): p. 124-128. pickett, s. T. a. and Thompson, John n. patch dynamics and the design of nature reserves. biological Conservation, 1978. 13(1): p. 27-37.

47 For example, the brightsand herd in northwestern ontario, whose range overlaps with resolute’s FsC certified operations in the Caribou Forest, is experiencing a 42% habitat disturbance, which is above the maximum disturbance level of 35% necessary to ensure a population is self sustaining as determined by environment Canada in its species at risk act recovery strategy series: environment Canada. 2012. recovery strategy for the Woodland Caribou (rangifer tarandus caribou), boreal population, in Canada. species at risk act recovery strategy series. environment Canada, ottawa. xi. p. 124. in this recovery strategy a 60% probability of self-sustainability is applied resulting in a maximum disturbance management threshold of 35% total disturbance (or 65% undisturbed habitat) – p.66. in turn, “self-sustaining” means a population that demonstrates an ability to persist beyond 50 years – p.47. in the case of the Temiscamiecaribou herd in resolute’s Montagnes blanches tenure, the population is described as “definitively” not self sustaining: rudolph, T. et al. “status of Woodland Caribou, (rangifer tarandus caribou), boreal ecotype, in northern Quebec” 2012. report presented to Mnr and the Grand Council of the Crees, p.31.

48 Certification status report Quebec - sFM - year-end 2012: http://www.certificationcanada.org/_documents/status_reports/QC% 20sFM%20status%20report%202012%20yearend_Jan25.pdf

49 XiV Forest Management Certification assessment report for abitibibowater inc. FMus 024-51 and 027-51 in Dolbeau-Mistassini, Québec, Canada, sW-FM/CoC-004525, rainforest alliance, november 26, 2009 (translated english version). Corrective action request Verification report, abitbibowater inc., FMus 024-51 and 027-51, sW-FM/CoC-004525, rainforest alliance, December 2, 2009 (translated english version). public summary report for Forest Management, 2010 annual audit report for abibow Canada inc., Mistassini-peribonka in st-Felicien, Quebec, sW-FM/CoC-004525, rainforest alliance, December, april 13, 2011 (translated english version). public summary report for Forest Management, 2011 annual audit report for abibow Canada inc., Mistassini-peribonka in st-Felicien, Quebec, sW-FM/CoC-004525, rainforest alliance, november 22, 2011 (translated english version). Corrective action Verification audit report, abibow Canada inc., sW-FM/CoC-004525, rainforest alliance, april 2, 2012 (translated english version). public summary report for Forest Management, 2012 annual audit report for pF résolu Canada inc., Mistassini-peribonka in Dolbeau-Mistassini, Quebec, sW-FM/CoC-004525, rainforest alliance, november 22, 2012 (translated english version).

50 resolute Forest products aboriginal peoples policy: http://www.resolutefp.com/uploadedFiles/sustainability/stakeholder_engagement/resolute-aboriginal_peoples_policy.pdf

51 Comment on the human rights Council’s Guiding principles on business and human rights as related to indigenous peoples and the right to participate in Decision-Making with a Focus on extractive industries, http://www.ohchr.org/Documents/issues/ipeoples/eMrip/session5/a-hrC-eMrip-2012-Crp1_en.pdf

52 resolute Forest products, 2012 annual report, p.62: http://www.resolutefp.com/uploadedFiles/investors/Financial_reports/resolute_Forest_products-2012_annual_report.pdf

Resolute’s False PRomises: the [un]sustainability RePoRt 2013 19

53 alexandre boursier, rainforest alliance rapport de vérification de non-Conformité Majeure, 5 avril 2013, pp.2-4.

54 alexandre boursier, rainforest alliance rapport de vérification de non-Conformité Majeure, 5 avril 2013, p.3 (translated from the original French)

55 http://www.lawyersweekly.ca/index.php?section=article&articleid=1816

56 http://www.nowtoronto.com/news/story.cfm?content=163639

57 ibid.

58 Crees launch Campaign to protect the broadback river, press release 2013-04-10: http://www.gcc.ca/newsarticle.php?id=304

59 http://mamwi.org/our-callout/

60 see: http://www.barrierelakesolidarity.org/2013/03/urgent-callout- for-donations-to.html; and http://www.counterpunch.org/2012/07/13/sustainable-colonialism-in-the-boreal-forest/.

61 http://www.resolutefp.com/vision-values/

62 resolute Forest products, 2011 sustainability report, p.5: http://www.resolutefp.com/uploadedFiles/Media/publications/ resolute_sustainability_report_2011.pdf

63 http://www.cbc.ca/news/canada/thunder-bay/story/2013/04/09/tby-thunder-bay-resolute-mill-request-tax-reduction.html

64 http://www.tbnewswatch.com/news/272749/preparing-to-fight

65 ibid.

66 http://www.gov.ns.ca/econ/news/nr_view.asp?id=20130410001

67 http://thechronicleherald.ca/novascotia/107146-time-runs-out-for- bowater-mill

68 http://www.theglobeandmail.com/report-on-business/bowater-mill- closing-indefinitely-in-nova-scotia/article4265759/

69 http://thechronicleherald.ca/novascotia/241480-paper-mill-pension-outcomes-very-different

70 http://www.gov.ns.ca/natr/land/bowater2012/pdf/nova%20scotia%20lands%20environmental%20summary.pdf

71 http://www.cbc.ca/news/canada/thunder-bay/story/2012/08/10/tby-resolute-forest-products.html

72 ibid.

73 http://www.cep.ca/en/news/media-releases/resolute-workers-stand- firm-refusing-pension-cuts

74 http://foresttalk.com/index.php/2012/08/10/resolute-forest-products-pension-plans-underfunded-by-1-9-billion/

75 original text prior to clarification from resolute was “There is also a dearth of information relating to overall recycled content in resolute’s other products. recycled fibre reporting is conspicuously absent from its 2012 annual report, a change from previous years. in resolute’s 2012 annual report, the company has even ceased reporting its overall recycled fibre supply, and is instead “managing [its] exposure to volatile recycled fiber,” 20 representing a major setback for customers seeking sustainable products.”

authors: richard brooks and shane moffattinternal revision: stephanie Goodwin, nicolas mainville, holly Postlethwaite and catherine vezinaphoto credits: © Greenpeace / simon bujold, markus mauthe, shane moffatt, François Pesant and Gordon welters

isbn 978-0-9877581-2-5 Published by Greenpeace canadamay 2013

Greenpeace is an independent, nonprofit, global campaigning organization that uses peaceful, creative confrontation to expose global environmental problems and their causes. We challenge government and industry to halt harmful practices. We negotiate solutions, conduct scientific research, introduce clean alternatives, and educate and engage the public.

33 Cecil street, Toronto, ontario M5T 1n1454 laurier east, 3rd floor, Montreal, Quebec h2J 1e71726 Commercial Drive, Vancouver, british Columbia V5n 4a38617-104 street West, edmonton, alberta T6e 4G61-800-320-7183www.greenpeace.ca

printed on 100 per cent post-consumer recycled, chlorine-free paper that is manufactured with wind-generated energy.

addendum: in recent court filing, post original publication of this report, the company committed to providing, in 2013, its formal annualized recycled fibre usage for the year 2012 in a future sustainability report. We have amended this report to reflect this new information and to avoid any confusion about the company’s recovered fibre information75. at the time of writing, the company asserts that recovered fibre represents slightly more than 10% of their overall supply, including ONP (old newspapers), SOP (sorted office paper) and OMG (old magazines) and including their Mokpo mill in south Korea.

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Greenpeace is an independent, campaigning organization which uses non-violent, creative confrontation to expose global environmental problems, and to force the solutions which are essential to a green and peaceful future.

33 Cecil street, Toronto, ontario M5T 1n1454 laurier east, 3rd floor, Montreal, Quebec h2J 1e71726 Commercial Drive, Vancouver, british Columbia V5n 4a38617-104 street West, edmonton, alberta T6e 4G61-800-320-7183

www.greenpeace.cawww.greenpeace.ca/resolute