West Fraser Timber Co. Ltd.

Transcription

1 West Fraser Timber Co. Ltd. E N V I R O N M E N T A L R e p ort 2

2 Report to Shareholders 2

3 West Fraser Environmental Policy West Fraser recognizes that environmental excellence is an integral aspect of long-term business success. Our Company and its employees are committed to the following: West Fraser is committed to responsible stewardship of the environment. A philosophy of continual improvement of our forest practices and manufacturing procedures has been adopted to optimize the use of resources and minimize or eliminate the impact of our operations on the environment. Complying with all applicable environmental laws and regulations, and with other requirements to which the organization subscribes. Preventing pollution and continuing to improve our environmental performance by setting and reviewing environmental objectives and targets. Conducting periodic environmental audits. Providing training for employees and contractors to ensure environmentally responsible work practices. Communicating our environmental performance to employees, customers, shareholders, local communities and other stakeholders. Reviewing, on a regular basis, this policy to ensure that it reflects the Company s ongoing commitment to environmental stewardship. 3

4 Report to Shareholders Environmental Certification West Fraser maintains various certifications related to the Company s woodlands, fibre supply chain and manufacturing operations. West Fraser s woodlands operations in British Columbia and Alberta are certified through the Sustainable Forestry Initiative ( SFI ). SFI is an internationally recognized system which certifies that forest management practices are carried out to a standard that integrates the sustainable growing and harvesting of trees with the protection of wildlife, plants, water and soil quality, and with a wide range of other conservation goals. 4 West Fraser also subscribes to the Programme for Endorsement of Forest Certification ( PEFC ) standard for its Canadian-produced forest products. PEFC chain of custody allows the Company to demonstrate to customers that the fibre in its supply chain comes from sources that comply with applicable laws, regulations and sustainable resource standards. In addition to the PEFC certification, the Company s four pulp and two MDF mills are registered to the Forest Stewardship Council s ( FSC ) Standard for Chain of Custody Certification and the Standard for Company Evaluation of FSC Controlled Wood. This allows verification that the Company s pulp and MDF products are not derived from controversial sources. The Company also maintains ISO certification of the Environment Management System ( EMS ) at its Canadian woodlands operations. This provides independent verification that the Company considers and takes measures to minimize or eliminate the environmental impact of its activities while striving for performance improvements. With respect to manufacturing activities, each of the Cariboo ( CPP ), Hinton ( HP ) and Quesnel River ( QRP ) pulp mills maintains an EMS ISO certification, while each of the Alberta mill and the Slave Lake pulp mill maintains certification of its EMS and safety programs under the Alberta Forest Products Association ForestCare program. Each of the Company s two MDF operations maintains Green Cross Certification, which verifies that its products are manufactured from % recycled material. For more information on certification, refer to the West Fraser Sustainability Report at

5 Permits and Approvals In the U.S., the Environmental Protection Agency issued the final version of the Boiler MACT Rule (Maximum Achievable Control Technology) in December. This rule is likely to affect various industrial sites in the U.S. including several of West Fraser s U.S. operations. Effluent Quality, Air Quality and Greenhouse Gases In West Fraser operated five pulp and paper facilities in B.C. and Alberta. All of these operations have taken measures aimed at sustainability, including reduced energy consumption, and greenhouse gas ( GHG ) emissions and improved effluent and air quality. For more information on effluent and air quality and GHG, refer to the West Fraser Sustainability Report at Climate Change Regulation Alberta is presently the only jurisdiction in which West Fraser has operations that has a mandatory GHG emission reduction system in place. The Alberta legislation mandated a 12% reduction in GHG emission intensity for each applicable facility by the end of 7. HP is the only West Fraser operation in Alberta subject to the reduction. In total, West Fraser s Alberta operations have generated over 67, GHG credits and offsets from fuel switching and energy reduction projects. In, the B.C. government continued to take part in the Western Climate Initiative s ( WCI ) development of a regional GHG cap and trade system, however, the government will not implement the program in 12 as originally planned. The WCI is a collaboration of certain western U.S. states and the Canadian provinces of B.C., Manitoba, Ontario and Quebec, with the goal to develop regional strategies to address climate change. The group issued the detailed design for a regional cap and trade system in 1 and the target date for implementation was to be 12. However, several of the jurisdictions participating in the WCI have stated that they will not be implementing the system by then and only California and Quebec continue to target the 12 date. At this time, the B.C. government is assessing the economic impact of proposed GHG reduction programs. 5 As well, during the Company continued to work with government agencies, industry and public interest groups related to wildlife habitat protection and multiple use of the woodlands under its management. For more on these conservation initiatives refer to the West Fraser Sustainability Report at Conservation In May 1 West Fraser and other forest companies who are members of the Forest Products Association of Canada signed the Canadian Boreal Forest Agreement ( CBFA ). The CBFA is an agreement between these companies and nine environmental organizations which applies to 72 million hectares of public forests that are licensed to the companies. When fully implemented, the CBFA is expected to conserve significant areas of Canada s boreal forest, protect threatened woodland caribou and provide a competitive market edge for participating companies. For further information and materials on the CBFA, visit:

6 Environmental Certification (continued) Report to Shareholders Under B.C. s GHG legislation, two of West Fraser s pulp mills (QRP and CPP) reported their 1 third-party verified GHG emissions in the spring of. Their emissions will also be reported. During the Canadian government did not take any steps or announce any initiatives to regulate GHG emissions from forest products. Canada continues to monitor regulatory developments in the U.S. and the government has stated that any regulatory approach it develops would be similar to approaches developed by the U.S. At this time, it is not possible to predict in what form or when 6 Canada may implement a GHG reduction scheme that would affect the forest products industry. B.C. implemented a carbon tax on purchased hydrocarbon fuels in July 8. The tax increased on July 1, from $ to $25 per tonne of carbon dioxide equivalent emissions and will increase by an additional $5 on July 1, 12. This has affected all West Fraser s B.C. divisions. The 12 increase is the last increase under the existing legislation. The B.C. government has not announced any more increases in the tax but is assessing the possibility. Non-compliances, Charges, Spills The B.C. Ministry of Environment (the MoE ) issued a pollution prevention order relating to the Fraser Lake sawmill s stormwater runoff. In response, West Fraser developed and implemented a plan to treat the stormwater runoff. A stormwater treatment system was constructed and the MoE issued a permit for its operation. The Company also received two violation tickets imposing fines of $575 each for an incident prior to the completion of the stormwater treatment system, when some discharged stormwater was found to be toxic. West Fraser and the B.C. Ministry of Natural Resource Operations (formerly the Ministry of Agriculture and Lands) are working together to develop a remediation plan for a coal-washing waste pile on Vancouver Island. The Crown lease for the waste pile was owned for many years by Weldwood of Canada Limited which was acquired by the Company in 4. The waste pile was formed in the late 19th and early th century when coal mining was a significant industry on Vancouver Island.

7 COMPLIANCE WITH TOX I C I T Y R E G U L ATI O N S TOX I C I T Y R E G U COMPLIANCE WITH L ATI O N S Cariboo & Paper Hinton Cariboo & Paper Hinton TOTAL SU S PE N D E D S O LI D S SU S PE N D ED TOTAL permit level S O LI D S 5 permit level Cariboo & Paper 5 Hinton 4868 permit level 15 TOTAL SU S PE N D E D S O LI D S 3 5 permit level Cariboo & Paper 5 Hinton 4868 permit level (kilograms per day) permit level 3 5 permit level permit level 15 5 BI OC HEM I C A L OX YG E N D E M A N D 3 Hinton Cariboo &Paper OC HEM I C A L OX YG E N D E M A N D 35 BI789 permit level 33 permit level 388 permit level &Paper Hinton Cariboo permit level BI OC HEM I C A L OX YG E N D E M A N D 789 permit level Cariboo & Paper permit level permit level 3 Hinton permit level permit level 388 permit level Alberta Company Slave Lake Quesnel River Slave Lake Quesnel River Alberta Company permit level 3 73 permit level Alberta 25 Company permit level 15 3 permit level 3 Alberta Company 25 Slave 7 8 Lake permit level Slave Lake 3 15 permit level 25 Slave Lake Quesnel 7 8 9River 1 (milligrams per litre) 938 permit level Quesnel River (milligrams perlevel litre) 655 permit 616 permit level 938 permit level Quesnel River (milligrams perlevel litre) 655 permit 616 permit level 938 permit level permit level Company permit level Slave 7 8Lake Company 175 permit level Slave 7 8Lake Quesnel 7 8 9River 1 3 (milligrams per litre) 2 permit level 5 35 permit level permit 9 1 level Alberta permit level level Alberta permit Alberta permit level Company permit level permit level Quesnel River Alberta Company Hinton Cariboo &Paper COMPLIANCE WITH L ATI O N S TOX I C I T Y R E G U Slave Lake Lake permit level Slave 616 permit level Quesnel River (milligrams per litre) 364 permit level 364 permit level Quesnel River (milligrams per litre) permit 9 1level permit level Alberta Company 7 Hinton Cariboo & Paper

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