SUCCEED
TOGETHER
2012 Ann UAl REpORT
The inside pages of this report are printed on ResoluteMax 84 Gloss 60 lb
(89 g/m2) paper, part of Resolute’s Align™ portfolio of environmentally-
conscious papers. This paper was manufactured at our Catawba (South
Carolina) mill. With its smaller environmental footprint, ResoluteMax
84 Gloss is the perfect alternative to more costly coated freesheet paper
selections which are made with chemical pulp.
Among its environmental benefits, ResoluteMax 84 Gloss:
• uses 12% less wood fiber than the average coated freesheet
in North America;
• uses 25% less energy to produce than the average coated freesheet
in North America;
• has a carbon footprint that is 35% smaller over its life cycle than the
average coated freesheet in North America; and
• is available with SFI®, PEFC or FSC® CW chain of custody certifications.
Resolute completed a life cycle assessment (LCA) comparing the Align
paper grades with competitive papers across four categories of environ-
mental impact: climate change, human health, energy and ecosystem qual-
ity. The results of the LCA indicated that our Align grades had significantly
less environmental impact than competitive freesheet papers.
Visit alignpaper.com for more information.
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RESOlUTE AT
A GlAnCE
FinAn CiAl AnD
SUSTAinAbiliTy
HiGHliGHTS
lETTER TO
SHAREHOlDERS
ExECUTiVE
TEAM
ViSiOn AnD
VAlUES
OUR OpERATiOnS
pRODUCT OVERViEW
OUR STRATEGy
SUSTAinAbiliT y
pERFORMAnCE
About Resolute
FoRest PRoducts
Resolute Forest Products is a global leader in the forest
products industry with a diverse range of products, including
newsprint, commercial printing papers, market pulp and wood
products. The Company owns or operates over 40 pulp and
paper mills and wood products facilities in the United States,
Canada and South Korea, and power generation assets in
Canada. Marketing its products in close to 90 countries,
Resolute has third-party certified 100% of its managed
woodlands to at least one of three internationally recognized
sustainable forest management standards, including 65%
certified to the Forest Stewardship Council® (FSC®) standards.
The shares of Resolute Forest Products trade under the stock
symbol RFP on both the New York Stock Exchange and the
Toronto Stock Exchange.
Resolute and other member companies of the Forest Products
Association of Canada, as well as a number of environmental
organizations, are partners in the Canadian Boreal Forest
Agreement. The group works to identify solutions to conservation
issues that meet the goal of balancing equally the three pillars
of sustainability linked to human activities: environmental,
social and economic. Resolute is also a member of the World
Wildlife Fund’s Climate Savers program, in which businesses
establish ambitious targets to voluntarily reduce greenhouse
gas emissions and work aggressively toward achieving them.
WOOD PRODUCTS
DISTRIBUTION OF SALES
61% CANADA
39% UNITED STATES
NEWSPRINT
DISTRIBUTION OF SALES
48% UNITED STATES
24% LATIN AMERICA
11% ASIA
11% CANADA
5% EUROPE
1% OTHER COUNTRIES
COMMERCIAL PRINTING PAPERS
DISTRIBUTION OF SALES
84% UNITED STATES
8% CANADA
4% LATIN AMERICA
2% ASIA
1% EUROPE
1% OTHER COUNTRIES
MARKET PULP
DISTRIBUTION OF SALES
56% UNITED STATES
20% EUROPE
9% ASIA
8% CANADA
6% LATIN AMERICA
1% OTHER COUNTRIES
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
1
Resolute At
A glAnce
ToTAl SAlES
$4,503M
rENEwABlE ENErgy
ovEr ToTAl ENErgy
(including purchased
electricity)
ADJUSTED EBITDA
$386M
NET cASh
provIDED By
opErATINg AcTIvITIES
$ 266M
cErTIFIcATIoN
68% MANAgED ForEST
100%
11% wood products
18% market pulp
DISTrIBUTIoN
oF SAlES By %
oF rEvENUE
(December 31, 2012)
36% newsprint
25% specialty papers
10% coated papers
proDUcTIoN cApAcITy1
as of December 31, 2012
NewspriNt
coated papers
UNcoated papers
market pUlp
wood prodUcts
[ 1 ] Includes capacity of Ponderay Newsprint company.
3.1 millioN metric toNs
0.6 millioN metric toNs
1.3 millioN metric toNs
1.7 millioN metric toNs
2.8 billioN board feet
FIG.
2.2 B
FUEL
USE
42.9% Black liquor solids
31.8% Bark and biosolids
17.4% Natural gas
3.9% Coal
1.3% Steam
PULP AND
PAPER MILLS 2012
0.9% Bunker C oil
0.7% Landfill gas
0.6% Tire derived fuel
0.4% Plastics
0.1% Light fuel oil
ELECTRICITY
FIG.
2.2 C
USE
PULP AND
PAPER MILLS 2012
42.4% Purchased–hydro
18.3% Purchased–nuclear
16.3% Purchased–coal
8.4% Self–generated cogeneration power
7.4% Self-generated hydro power
7.3% Purchased–other
FIG.
2.2 E
CARBON
FOOTPRINT
PULP AND
PAPER MILLS 2012
31% Scope 1: direct emissions from production
69% Scope 2: indirect emissions related
to purchased electricity and steam
Graph does not add up to 100% due to rounding
Graph does not add up to 100% due to rounding
FinAnciAl
HigHligHts
Financial highlights
selected annual financial Information
(in millions of dollars, except per share amounts and where otherwise stated)
successor
successor
Predecessor
Years ended December 31,
2012
2011
2010
sales
operating income (loss) per segment
Newsprint
coated papers
specialty papers
market pulp
wood products
corporate/other
total
Net (loss) income
Net (loss) income per common share
basic
diluted
cash and cash equivalents
total assets
adjusted ebitda2
adjusted ebitda margin2
roe, adjusted for special items3
$ 4,503
$ 4,503
$ 4,756
$ 4,756
$ 4,746
97
9
76
(50)
26
(188)
(30)
(2)
$ (0.02)
$
(0.02)
$
$ 263
6,324
$ 386
$
8.6%
2.4%
89
57
62
85
(25)
(70)
198
41
$ 0.42
$
0.42
$
$ 369
6,298
$ 481
$
(171)
31
(44)
137
9
(122)
(160)
2,614
$ 45.30
27.63
$ 319
7,135
$ 306
10.1%
4.7%
6.4%
n/m
[ 2 ] earnings before interest expense, income taxes and depreciation, or “ebITDa,” adjusted ebITDa and
adjusted ebITDa margin are not financial measures recognized under generally accepted accounting
principles, or “GaaP.” ebITDa is calculated as net (loss) income including noncontrolling interests from
the consolidated statements of operations, adjusted for interest expense, income taxes and depreciation,
amortization and cost of timber harvested. adjusted ebITDa means ebITDa excluding special items such
as foreign exchange translation gains and losses, employee termination costs, closure costs, impairment
and other related charges, inventory write-downs related to closures, start-up costs of idled mills, gains and
losses on dispositions of assets, post-emergence costs, transaction costs and other charges or credits that
are excluded from our segments’ performance from GaaP operating income (loss). adjusted ebITDa
margin is adjusted ebITDa expressed as a percentage of sales. We believe that using measures such as
ebITDa, adjusted ebITDa and adjusted ebITDa margin is useful because they are consistent with the
indicators management uses internally to measure the company’s performance, and it allows the reader
to more easily compare our ongoing operations and financial performance from period to period.
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
3
FinAnciAl
HigHligHts
(in millions of dollars)
Years ended December 31,
2012
2011
2010
successor
successor
Predecessor
Net (loss) income including noncontrolling interests
$
(36)
$ 39
$ 2,775
interest expense
income tax (benefit) provision
depreciation, amortization and cost of timber harvested
ebitda
foreign exchange translation (gain) loss
employee termination costs (credits)
closure costs, impairment and other related charges
inventory write-downs related to closures
start-up costs of idled mills
Net gain on disposition of assets
post-emergence costs
transaction costs
other income, net
reorganization items, net
adjusted ebitda
66
(38)
233
$ 225
(17)
5
180
12
13
(35)
11
8
(16)
—
$ 386
95
16
220
$ 370
21
12
46
3
—
(3)
47
5
(20)
—
483
(1,606)
493
$ 2,145
94
(8)
11
—
—
(30)
—
—
(5)
(1,901)
$ 481
$ 306
[ 3 ] return on equity, or “roe,” is a non-GaaP financial measure, calculated by dividing net (loss) income, excluding
the special items identified on page 4, by adjusted shareholders’ equity. roe is a measure of profitability
that shows how much profit the company generated as a percentage of shareholder money invested. The
calculation of roe as of December 31, 2010, has been omitted because, in management’s view, it does not
provide a true representation of roe given that net income, excluding special items, and shareholders’
equity are adjusted for fresh start accounting and the application of the plans of reorganization on and as
of December 31, 2010, and as a result net income does not reflect the performance during the entire year.
During the creditor protection and until the application of fresh start accounting, the predecessor company’s
shareholders’ equity was negative.
FinAnciAl
HigHligHts
as of December 31, 2012
Net (loss)
income
Shareholders’
equity
roE (%)
$ (2)
$ 3,093
(0.1)%
$ (23)
4
112
7
10
(22)
9
8
(11)
(13)
—
$ 79
$
(23)
4
112
7
10
(22)
9
8
(11)
(13)
125
$ 3,299
2.4%
as of December 31, 2011
Net
income
Shareholders’
equity
roE (%)
$ 41
$ 3,417
1.2%
$ 23
8
32
2
(2)
34
4
(14)
38
$166
$ 23
8
32
2
(2)
34
4
(14)
38
$ 3,542
4.7%
Financial highlights (continued)
(in millions of dollars, except roe)
Gaap as reported
adjustments for special items:
foreign exchange translation gain
employee termination costs
closure costs, impairment and other related charges
inventory write-downs related to closures
start-up costs of idled mills
Net gain on disposition of assets
post-emergence costs
transaction costs
other income, net
reorganization-related and other tax adjustments
cumulative past-year adjustments
Gaap as adjusted for special items
(in millions of dollars, except roe)
Gaap as reported
adjustments for special items:
foreign exchange translation loss
employee termination costs
closure costs, impairment and other related charges
inventory write-downs related to closures
Net gain on disposition of assets
post-emergence costs
transaction costs
other income, net
reorganization-related and other tax adjustments
Gaap as adjusted for special items
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
5
sustAinAbility
HigHligHts
resolute’s focus on continuous improvement starts with a serious commitment to operating sustainably by
carefully balancing the three pillars of sustainability: environmental, social and economic. This approach is a
critical foundation to being a competitive organization.
Environmental highlights4
class 1 environmental incidents
fuel energy used, GJ
electricity used:
purchased, Gwh
self-generated or owned, Gwh
renewable energy, % of total energy (including purchased electricity)
Greenhouse gas (GHG) emissions,6 mt co2e
water used,7 m3
biochemical oxygen demand (bod5), mt
total suspended solids (tss), mt
fiber loss, mt7
managed forest certification,8 %
chain of custody certification,9 %
Social highlights
employees
occupational safety and Health administration (osHa) incidents, rate per 100 employees
employee turnover, %
employee wages and benefits, $ millions
philanthropy, $ millions
Economic highlights
sales of cogenerated electricity, mwh/year
eco-label sales, % of total of North american paper sales10
align™ sales, % of total commercial printing paper sales
2012
2
81,684
11,648
2,187
68
3,975
385,546
7,901
11,396
287,863
100
100
2012
9,255
1.13
12.5
775
1.2
2012
148,277
15
5.3
2011
3
94,665
12,636
2,3945
70
4,445
385,169
7,871
11,967
267,383
100
100
2011
10,572
1.43
9.9
901
0.5
2011
8,329
13
4.6
2010
3
97,754
12,904
2,684
69
4,707
406,565
8,656
11,691
291,316
100
100
2010
10,470
1.51
8.1
895
0.6
2010
41,168
6
4.7
[ 4 ] environmental data is for pulp and paper mills only, except for environmental incidents, which are shown for all operations. The data presented in these
tables excludes the acquisition of fibrek.
[ 5 ] The difference in self-generated electricity usage between 2010 and 2011 is due to the sale of our interest in acH Limited Partnership in may 2011.
[ 6 ] The GHG emissions exclude emissions from mill landfills.
[ 7 ] resolute returns more than 90% of the water it withdraws. The balance remains within the product or is converted to steam in the manufacturing process.
The difference in water consumption between 2011 and 2012 is due to machine closures and production downtime which altered water and fiber loss circuits
at some of our mills. This resulted in greater water consumption as well as an increase in fiber loss on a per ton production basis.
[ 8 ] all of resolute’s forests are managed using at least one of three internationally recognized sustainable forest management (sfm) certification standards:
forest stewardship council® (fsc®), sustainable forestry Initiative® (sfI®), and canadian standards association (csa).
[ 9 ] resolute instituted fiber-tracking systems at all of our facilities, and all tracking systems are third-party certified according to one or more of three
internationally recognized chain of custody (coc) standards: fsc, sfI and Programme for the endorsement of forest certification (Pefc). excludes
Dolbeau (Quebec), which is set to become coc certified in 2013.
[ 10 ] Includes commercial printing papers and newsprint. eco-label refers to grades that are third-party certified according to fsc, sfI and/or Pefc standards.
“ oN beHaLf of resoLuTe foresT ProDucTs aND THe boarD of DIrecTors, I WouLD
LIke To THaNk rIcHarD b. evaNs for HIs Years of servIce aND exTraorDINarY
coNTrIbuTIoN To THe orGaNIzaTIoN’s PasT, PreseNT aND fuTure. DIck Is sTePPING
DoWN from THe boarD foLLoWING THIs Year’s aNNuaL meeTING, aND We WIsH HIm
THe verY besT.” rIchArD gArNEAU
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
7
letteR to
sHAReHoldeRs
Richard B. Evans—Chairman of the Board
Richard Garneau—President and Chief Executive Officer
In this second year since our emergence, we made
difficult decisions in order to respond to the challenges
facing the forest products industry. We significantly
improved our competitiveness by optimizing our
mill network, reducing costs wherever possible and
improving our financial position. We added three
pulp mills to our assets, committed to growth projects
in lumber, invested in power cogeneration plants,
reinforced our environmental credentials and further
optimized our paper assets, steps that will position us
well for the future. at the same time, we returned
$67 million to our shareholders in share buybacks, reduced
balance sheet working capital by a further $81 million
from the end of 2011 and redeemed an additional
$85 million of debt. our achievements are the product of
teamwork and our employees’ concerted efforts to
take charge of our future in what continues to be a
time of change in the forest products industry.
our overall corporate strategy remains the same: a
gradual retreat from certain paper grades, and using
our strong financial position to act on opportunities
to grow and diversify. and so does the underlying
principle: run for profit, not for tons. We do that by
managing production and inventory levels, selling only
profitable tons, and maintaining world-class opera-
tional standards.
opTIMIzINg oUr ASSET BASE AND INvESTINg
IN oUr FUTUrE
Highlights of our efforts in 2012:
• We grew our pulp segment with the acquisition of
fibrek Inc., adding three mills, one northern bleached
softwood kraft (Nbsk) and two recycled bleached
kraft (rbk), representing 752,000 tons of additional
capacity. This positions us well as an important long-
term North american pulp producer.
• We announced a number of projects to grow our
wood products business: capacity enhancements
at a number of existing sawmills, the restart of the
Ignace, ontario, facility (announced in January 2013),
and the construction of a new facility in atikokan,
ontario. When all these projects are completed by
mid-2014, they will add approximately 400 million
board feet of annual production capacity.
• We invested in a number of power cogeneration
assets. starting in December 2012, we added addi-
tional capacity at saint-félicien and Dolbeau, both
in Quebec, and began external sales of the power
produced to the Hydro-Québec network. We
recently completed the closing stages of installing
our Thunder bay, ontario, facility which is expected
to begin producing late in the first quarter of 2013.
• We made significant progress toward optimizing
our paper and pulp mill network. While preserving
our ability to generate cash flow, these steps pro-
vide for a leaner and more efficient mill network,
including:
• We idled and subsequently sold our Mersey,
Nova scotia, newsprint mill, as part of our efforts
to manage exposure to export markets where the
relative strength of the u.s. dollar negatively
impacted our competitiveness.
• We restarted a supercalendered paper
machine in Dolbeau. The machine was newly
built in 1999, and we believe that together with
the power cogeneration unit, the mill will be a
highly com petitive operation.
• We rationalized higher cost capacity by closing a
supercalendered paper machine in Laurentide
(Quebec) and indefinitely idling the pulp mill and
specialized paper machine in fort frances (ontario).
• We indefinitely idled a coated paper machine in
catawba (south carolina) to improve overall effi-
ciency and reduce labor costs.
• In order to drive better efficiency and lower overall
labor costs, we implemented or announced more
efficient manning structures at a number of sites.
In light of the impact to affected workers and the com-
munities in which they operate, we take mill idling and
closure decisions with great seriousness. They are,
however, a difficult reality to which we need to respond
quickly to ensure our long-term viability.
STrENgThENINg oUr FINANcIAl poSITIoN
maintaining and improving our financial position is key
to executing our strategy and delivering value to share-
holders. We returned $67 million to our shareholders
in the year by buying 5.6 million shares of our com-
mon stock, more than offsetting the 3.3 million shares
we issued to acquire fibrek. We also redeemed
$85 million of our 10.25% senior secured notes due in
2018, spent $63 million to acquire fibrek and repaid
and canceled its term loan and credit facility, for a
total of $112 million. We reduced working capital on
the balance sheet (which we calculate as current
assets minus current liabilities, excluding cash and
cash equivalents and debt) by 9% from the end of
2011, and we made capital expenditures of $169 million,
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
9
letteR to
sHAReHoldeRs
crEATINg “JoBS whErE yoU grow”
In addition to a strong financial position and a com-
petitive asset base, our long-term success depends
on our ability to recruit and retain employees with the
right skills. because we anticipate significant work-
force renewal over the coming years, we launched
in 2012 an employer brand centered on employee
development: “Jobs Where You Grow”. This, along
with improved human resources tools, is designed
to improve our recruitment and retention efforts.
safety is one of the most important components
of our company’s culture. In 2012, our combined
occupational safety and Health administration
(osHa) incident rate was 1.13, compared to 1.43 in
2011. This shows important progress on one of our
key commitments given that a rate of 1 is considered
world-class. Thanks to the collective effort and dedi-
cation of our employees, we achieved an impressive
8 out of 12 months with a world-class osHa incident
rate of less than 1, and successfully implemented a
near-miss reporting system. We also introduced a
more stringent policy on the use of personal protec-
tive equipment in the potential presence of hazard-
ous chemicals at our pulp and paper mills.
including compliance and maintenance of business
activities and value-creating projects. With $263
million of cash, we started 2013 with $782 million
of available liquidity and $271 million in net debt.
In the fourth quarter, standard & Poor’s ratings
services affirmed its long-term corporate credit rat-
ing (bb-, stable) and upgraded the issue-level rating
on the senior secured notes to bb from bb-. also in
the fourth quarter, moody’s Investors service upgraded
the corporate family rating and the senior secured
notes rating to ba3 from b1.
Today, we continue to work with other plan stake-
holders, including employees, retirees, unions, the
provincial governments of Quebec and ontario and
the related pension regulators to address issues
related to the solvency deficits in our material
canadian registered pension plans. With interest
rates currently near historic lows, we will work to
develop a plan that balances the need to meet our
undertakings to retirees, but also provides us the
funding predictability we need to manage our busi-
ness. for more information on the funding relief
measures and our agreements with the provinces of
Quebec and ontario, please refer to our annual
report on form 10-k.11
[ 11 ] Please see the discussion under Item 7, “management’s Discussion and analysis—Liquidity and capital resources—employee benefit Plans—canadian
Pension funding”, in our annual report on form 10-k, page 63.
SolIDIFyINg oUr ENvIroNMENTAl, SocIAl
AND EcoNoMIc FoUNDATIoNS
resolute’s role in its operating communities extends
beyond simply being a responsible employer. We
are deeply committed to operating sustainably. This
approach is a critical foundation to being a competitive
organization, focused on continuous improvement.
2012 marked the release of our second annual sustain-
ability report using Global reporting Initiative guide-
lines, endorsed by the united Nations Global compact.
The report provides a framework for improving our
accountability, transparency and performance across
environmental, social and economic sustainability.
Throughout last year, we made significant strides
toward strengthening our sustainability performance:
• We have been a member of WWF Climate Savers
since 2011, a program through which we have com-
mitted to reduce absolute greenhouse gas (GHG)
emissions by 65% by 2015, compared to 2000 levels
(scope 1 and 2).12 achieving this reduction will have
an equivalent impact to removing more than 1.4 mil-
lion automobiles from the roads. In 2012, we made
further progress toward our goal, decreasing our
emissions beyond the 62% reduction achieved in 2011.
• We are also at the forefront of fiber certification,
with 100% of the woodlands we manage certified
to internationally recognized sustainable forest
management standards. at press time, we had
reached 65% forest stewardship council® (fsc®)
certification, and we are continuing to progress in
line with our commitment to reach 80% by 2015.
In 2012, resolute achieved the distinction of being
the largest manager of fsc-certified forests in the
world. Taken all together, our fsc-certified forests
cover an area larger than Greece.
• We launched Align™, an eco-efficient, budget-friendly
line of mechanical papers that use 25% to 63% less
total energy to produce than the average freesheet
grade produced with chemical pulp. These grades
have a carbon footprint that is 35% to 85% lower
than that of the average freesheet. In 2013, we will
continue to seek growth of our align grades as an
important aspect of our commercial printing paper
sales strategy.
• We fell short of our commitment to reduce environ-
mental incidents by 20% in 2012 compared to 2011,
recording a 6% increase in the total number of inci-
dents year-over-year. corrective measures have
been put in place to address gaps and enhance
performance.
[ 12 ]
scope 1 GHG emissions are greenhouse gas emissions that come from sources owned or controlled by the company, such as the combustion of fuel at mills
to generate heat to dry paper or generate electricity. scope 2 GHG emissions are greenhouse gas emissions that are the result of company activities
occurring at sources owned or controlled by third parties, associated with the production of purchased electricity or steam. scope 2 emissions physically
occur at the facility where electricity or steam is generated.
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
11
• We worked in concert with various stakeholders,
including environmental non-government organiza-
tions (or eNGos) and governments, to expand our
network of protected areas where needed and to
identify and manage habitat for woodland caribou
populations and other species. being a member
of the canadian boreal forest agreement (cbfa)
remains an important part of our stakeholder
outreach initiative. We remain committed to the
cbfa process.
MovINg ForwArD
We’ve made significant progress this year despite
challenging conditions and markets: our assets are
more competitive, our costs are lower and our financial
position is stronger. We must continue to respond
swiftly to challenges, staying true to our cost-focused
and asset optimization strategies, if we are to continue
to be successful in the future.
letteR to
sHAReHoldeRs
We are truly proud and grateful that our employees
worked so hard to continue to make us a leader in
challenging times. They are critical to our success. on
behalf of our fellow board members, we would like to
thank our employees for their ongoing commitment
and dedication. Let us keep up the good work in 2013;
we have more to do on our path to success.
sincerely,
richard B. Evans
Non-Executive Chairman of the Board
richard garneau
President and Chief Executive Officer
ouR executive
teAm
Jo-Ann longworth
Senior Vice President and Chief Financial Officer
ms. Longworth previously served as special advisor to the President
and chief executive officer, focusing on special mandates, from
July 4, 2011, to august 31, 2011. she served as senior vice President
and chief accounting officer with World color Inc. (formerly
Quebecor World Inc.) from 2008 to 2010, as chief financial
officer with skyservice Inc. from 2007 to 2008, as vice President
and controller with Novelis, Inc. from 2005 to 2006, and held a
number of financial and operational roles over a 16-year career
with alcan Inc.
Jacques p. vachon
Senior Vice President, Corporate Affairs and Chief Legal Officer
mr. vachon previously served as senior vice President and chief
Legal officer from January 2011 to february 2012, as senior vice
President, corporate affairs and chief Legal officer, from october
2007 to January 2011, and as senior vice President, corporate affairs
and secretary, of abitibi-consolidated Inc. from 1997 to october 2007.
yves laflamme
Senior Vice President, Wood Products, Procurement and
Information Technology
mr. Laflamme previously served as senior vice President, Wood
Products, from october 2007 to January 2011, as senior vice
President, Woodlands and sawmills, of abitibi-consolidated Inc.
from 2006 to october 2007, and as vice President, sales,
marketing and value-added Wood Products operations, of
abitibi-consolidated Inc. from 2004 to 2005.
Alain Boivin
Senior Vice President, Pulp and Paper Operations
mr. boivin previously served as vice President of mill operations
at smurfit-stone container corporation and as a vice President
at smurfit-stone since 2000. He was senior vice President,
containerboard operations, for st. Laurent Paperboard Inc. from
1999 to 2000 and was mill manager at a number of operations for
Donohue Inc. and avenor Inc.
John lafave
Senior Vice President, Pulp and Paper Sales and Marketing
mr. Lafave previously served as vice President, sales, National
accounts—Paper sales, vice President, sales, National accounts—
Newsprint and vice President, sales, commercial Printers of
abitibi-consolidated Inc. from 2004 to 2009. He previously held
progressive positions in sales with uPm-kymmene and repap
enterprises.
richard garneau
President and Chief Executive Officer
mr. Garneau joined the board of Directors in June 2010. Previously,
mr. Garneau served as President and chief executive officer of
catalyst Paper corporation from march 2007 to may 2010. Prior
to his tenure at catalyst, mr. Garneau served as executive vice
President, operations, at Domtar corporation. He also held a vari-
ety of roles at Norampac Inc. (a joint-venture of Domtar Inc. and
cascades Inc.), copernic Inc., future electronics Inc., st. Laurent
Paperboard Inc., finlay forest Industries Inc. and Donohue Inc.
mr. Garneau is a member of the canadian Institute of chartered
accountants.
pierre laberge
Senior Vice President, Human Resources
mr. Laberge previously served as senior vice President, Human
resources and Public affairs, from June 2011 to february 2012 and
as vice President, Human resources, for our canadian operations
from January 2011 to may 2011. He joined Donohue Inc. in 1988.
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
13
ouR
vision And vAlues
Our vision and values capture the philosophy of Resolute Forest Products
and our shared sense of purpose. They guide our decisions, actions and
behaviors, and drive us to build a culture based on performance, growth
and sustainability.
oUr vISIoN
at resolute forest Products, we are one team with one vision where profitability and sustainability
drive our future.
oUr vAlUES
work SAFEly
We always put the
safety of our people
first. creating an
injury-free workplace
is everyone’s business.
We maintain world-
class standards and
continuously measure
and improve our safety
efforts and results.
BE AccoUNTABlE
We are accountable for
our performance. The
future of our company
is in our hands. by
empowering people,
acting with integrity,
setting goals and mea-
suring progress, we
deliver first-class prod-
ucts and services to
customers and create
value for shareholders.
ENSUrE
SUSTAINABIlITy
We make decisions with
tomorrow in mind. We
know that our long-term
profitability depends on
preserving the natural
resources in our care
and being a responsible
partner in the commu-
nities where we live
and work.
SUccEED TogEThEr
We win together.
Teamwork starts with
a winning attitude and
a true desire to support
each other. We welcome
ideas, communicate fre-
quently and share best
practices.
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
15
living tHe compAny vAlues:
succeed togetHeR
Jason Tallon, Process Engineer, E.I.T.
Iroquois Falls (Ontario) paper mill
When I think about our “succeed Together” company
value, I think of repair days at the Iroquois falls mill
when the machines are being repaired and everyone is
working on maintenance. on those days, management
team members don’t stay in their offices. They’re out
on the floor in the thick of it, helping and coordinat-
ing activities. That sends the message that we are all
working toward the same thing: We’re all trying to
get paper made.
as a member of the process engineering team, my
job is to learn everything from how the wood chips
come into the mill to how they are turned into pulp,
made into paper and shipped out the door. and then
I help figure out how to improve that process and
how to fix things quickly when problems arise.
I grew up in a mill town, and my father always said the
best way to learn how a mill works is to talk to the
operators. When I started here two years ago, I had
a lot of questions and I was never afraid to ask them.
everyone always took the time to explain what they
were doing or what some acronym stood for. Working
with people who have hands-on knowledge is also
incredibly educational. and that kind of learning is
invaluable for problem-solving.
When something does happen and my team gets
called, we may work together or divide up the prob-
lem to get it solved, but we always use our combined
knowledge to develop the best way forward.
succeeding together is also about our relationships
with our partners: our customers and suppliers, and
the communities in which we live and operate. The
mill supports the community and the community sup-
ports the mill. That’s why, when we reach an important
safety milestone we don’t just celebrate it at work.
We celebrate it in town with a barbecue or a picnic.
It’s a win for everyone.
of course, Iroquois falls has a special relationship
with the mill; it was established around it. our past
and future are very closely tied together, and it’s only
natural that resolute partnered with the town in cel-
ebration of its 100th anniversary in 2012.
pUlp AND pApEr
cANADA
QUEBEC
Alma / Amos / Baie-Comeau / Clermont / Dolbeau /
Kénogami / Laurentide / Saint-Félicien
ONTARIO
Fort Frances / Iroquois Falls / Thorold / Thunder Bay
UNITED STATES
Augusta, GA / Calhoun, TN / Catawba, SC /
Coosa Pines, AL / Fairmont, WV / Grenada, MS /
Menominee, MI / Ponderay, WA
SoUTh korEA
Mokpo
wooD proDUcTS
QUEBEC
Abitibi LP (Larouche and Saint-Prime) / Château-
Richer / Comtois / Girardville-Normandin / La Doré
(2 facilities) / Maniwaki / Mistassini / Opitciwan /
Outardes / Produits Forestiers Mauricie / Produits
Forestiers Petit-Paris / Roberval / Saint-Félicien /
Saint-Fulgence / Saint-Hilarion / Saint-Thomas /
Senneterre
ONTARIO
Thunder Bay
hyDroElEcTrIc AND
cogENErATIoN FAcIlITIES
cANADA
QUEBEC
Dolbeau / Gatineau13 / Hydro-Saguenay /
Saint-Félicien
ONTARIO
Fort Frances / Thunder Bay
UNITED STATES
Calhoun, TN / Catawba, SC / Coosa Pines, AL
ouR
opeRAtions
Paper/Pulp
Wood Products
E
R
Energy
Recycling
Corporate Office
Customer Service
South
Korea
For the full list of our Company locations,
visit resolutefp.com.
Mokpo
[ 13 ] operations to resume in 2013.
Ponderay, WA
Fort Frances, ON
Laurentide
Gatineau
Canada
Thunder Bay, ON
Iroquois Falls, ON
Buffalo, NY
RR
R
Thorold, ON
Boston, MA
United States
Calhoun, TN
Catawba, SC
Coosa Pines, AL
Quebec
Produits Forestiers Petit-Paris
Mistassini
Dolbeau
Saint-Thomas
Girardville
Normandin
La Doré
Comtois
Amos
Senneterre
Baie-Comeau
Alma
Kénogami
Outardes
Saint-Fulgence
É
Hydro-
Saguenay
Clermont
Saint-Hilarion
Opitciwan
Saint-Prime
Larouche
Saint-Félicien
Roberval
Montréal, QC
Maniwaki
Château-Richer
Produits Forestiers Mauricie
Menominee, MI
Pittsburgh, PA
R
Detroit, MI
Cleveland, OH
Chicago, IL
R
Philadelphia, PA
R
Fairmont, WV
R
R
R
R
Indianapolis, IN
R
R
Columbus, OH
Baltimore, MD
Kansas City, KS
R
Cincinnati, OH
R
St. Louis, MO
Tulsa/Oklahoma City, OK
Grenada, MS
Dallas/Fort Worth, TX
Augusta, GA
Coosa Pines, AL
Calhoun, TN
Catawba, SC
R
R
San Antonio/Austin, TX
R
R
Houston, TX
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
17
Canada
Montréal, QC
Maniwaki
Château-Richer
Produits Forestiers Mauricie
Ponderay, WA
Fort Frances, ON
Thunder Bay, ON
Iroquois Falls, ON
Buffalo, NY
RR
R
Thorold, ON
Boston, MA
United States
Calhoun, TN
Catawba, SC
Coosa Pines, AL
Quebec
Mistassini
Dolbeau
Comtois
Saint-Thomas
Girardville
Normandin
La Doré
Amos
Senneterre
Opitciwan
Saint-Prime
Roberval
Produits Forestiers Petit-Paris
Alma
Kénogami
Baie-Comeau
Outardes
Saint-Fulgence
É
Hydro-
Saguenay
Larouche
Saint-Félicien
Clermont
Saint-Hilarion
Laurentide
Gatineau
Menominee, MI
Detroit, MI
R
Cleveland, OH
Chicago, IL
R
Pittsburgh, PA
Philadelphia, PA
R
Fairmont, WV
R
R
R
R
Indianapolis, IN
R
R
Cincinnati, OH
Columbus, OH
Baltimore, MD
Kansas City, KS
R
R
St. Louis, MO
R
Tulsa/Oklahoma City, OK
Grenada, MS
Dallas/Fort Worth, TX
R
San Antonio/Austin, TX
R
R
Houston, TX
Calhoun, TN
Catawba, SC
Augusta, GA
Coosa Pines, AL
South
Korea
Mokpo
pRoduct oveRview
pApEr
commercial printing papers
coaTeD mecHaNIcaL
uNcoaTeD mecHaNIcaL
supercalendered (sca+, sca, scb, sNc)
super-brite
(uncoated freesheet alternatives)
Hi-brite
book
Directory
specialty
Newsprint
END USES
magazines, catalogs, coupons, retail flyers, annual reports
flyers, inserts, catalogs, magazines, coupons
flyers and inserts, direct mail, instruction manuals, financial printing,
statements, forms, maps, brochures, directories, general commercial
printing, digital printing
Paperback books, hard cover books, educational workbooks, children’s
books, coloring books, comics
Telephone books, directories
construction and other papers
Newspapers, inserts, flyers, telephone books, directories, commercial guides
Includes Align™ grades. Discover our Align family of papers at alignpaper.com.
MArkET pUlp
Northern bleached softwood kraft
Northern bleached softwood kraft—flash
southern bleached softwood kraft
Northern bleached hardwood kraft
southern bleached hardwood kraft
recycled bleached kraft
Fluff
wooD proDUcTS
Framing lumber
studs and random lengths
Nominal sizes (inches): 1 x 2 to 2 x 10
Length: 6 feet to 16 feet
Specialty products
Premium and select grades
machine-stress rated (msr) lumber
finger-jointed lumber
furring strips
bed-frame components
I-joists
Printing and writing papers, tissue and paper towels, specialty papers
Disposable diapers, feminine hygiene and other absorbent products
Light-frame construction, including walls, roofs and floors
Do-it-yourself (DIY) projects, roof trusses, structural and industrial
components, high-performance flooring
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
19
MANUFAcTUrINg opErATIoNS AND
chAIN oF cUSToDy cErTIFIcATIoNS
commercial printing papers
caNaDa
alma (Qc)—fsc, Pefc / Dolbeau (Qc)—fsc / fort frances (oN)—
fsc, Pefc, sfI / Iroquois falls (oN)*—fsc, Pefc, sfI / kénogami
(Qc)—fsc, Pefc / Laurentide (Qc)—fsc, Pefc
*only paper machine #1 at Iroquois falls makes construction paper
uNITeD sTaTes
calhoun (TN)—fsc cW, Pefc, sfI / catawba (sc)—fsc cW, Pefc, sfI
Newsprint
caNaDa
amos (Qc)—fsc, Pefc / baie-comeau (Qc)—fsc, Pefc / clermont
(Qc)—fsc, Pefc / Iroquois falls (oN)—fsc, Pefc, sfI / Thorold
(oN)—fsc / Thunder bay (oN)—fsc, Pefc, sfI
uNITeD sTaTes
augusta (Ga)—fsc cW, Pefc, sfI / calhoun (TN)*—fsc cW, Pefc,
sfI / Grenada (ms)—fsc cW, Pefc, sfI / Ponderay (Wa)**—fsc,
Pefc, sfI
*calhoun in 2012 mainly produced commercial printing paper
**resolute joint-venture interest (40%)
souTH korea
mokpo
Market pulp
caNaDa
fort frances (oN)—fsc, Pefc / saint-félicien (Qc)—fsc, Pefc /
Thunder bay (oN)—fsc, Pefc, sfI
uNITeD sTaTes
calhoun (TN)—fsc cW, Pefc, sfI / catawba (sc)—fsc cW, Pefc,
sfI / coosa Pines (aL)—fsc cW, Pefc, sfI / fairmont (Wv)—fsc /
menominee (mI)—fsc
lumber
caNaDa
comtois (Qc)—fsc, Pefc / Girardville-Normandin (Qc)—fsc, Pefc /
La Doré (Qc)—fsc, Pefc / maniwaki (Qc)—fsc, Pefc / mistassini
(Qc)—fsc, Pefc / opitciwan (Qc)* / outardes (Qc)—fsc, Pefc /
Produits forestiers mauricie (Qc)—fsc, Pefc, sfI / Produits forestiers
Petit-Paris (Qc)—fsc, Pefc, sfI / roberval (Qc)—fsc, Pefc /
saint-félicien (Qc)—fsc, Pefc / saint-fulgence (Qc)—fsc, Pefc /
saint-Hilarion (Qc)—fsc, Pefc / saint-Thomas (Qc)—fsc, Pefc /
senneterre (Qc)—fsc, Pefc / Thunder bay (Qc)—fsc, Pefc, sfI
remanufactured wood
château-richer (Qc)—fsc, Pefc / La Doré (Qc)—fsc, Pefc
Engineered wood
abitibi-LP (Larouche and saint-Prime) (Qc)—fsc, Pefc, sfI
*resolute joint-venture interest (45%)
fsc®:
forest stewardship council®
Pefc:
fsc cW:
forest stewardship council
controlled Wood
Programme for the endorsement
of forest certification
sfI®:
sustainable forestry Initiative®
newspRint
newspRint
MAkINg hEADlINES
MAkINg hEADlINES
AroUND ThE worlD
AroUND ThE worlD
Resolute is a leading global producer of top-quality newsprint. With
Resolute is a leading global producer of top-quality newsprint. With
mills strategically located to serve major markets throughout North
mills strategically located to serve major markets throughout North
America and abroad, we supply customers in some 80 countries.
America and abroad, we supply customers in some 80 countries.
INDUSTRY TRENDS
INDUSTRY TRENDS
7.7
7.7
1.4%
1.4%
5.8
5.8
5.4
5.4
5.0
5.0
5.0
5.0
(3.0%)
(3.0%)
(1.2%)
(1.2%)
(2.8%)
(2.8%)
(4.9%)
(4.9%)
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
World Western
World Western
Europe
Europe
Latin
Latin
America
America
Eastern
Eastern
Europe
Europe
North
North
America
America
Asia
Asia
(10.5%)
(10.5%)
44% 12.4 Asia
44% 12.4 Asia
2 4% 6.9 Western Europe
2 4% 6.9 Western Europe
17% 5.0 North America
17% 5.0 North America
6% 1.7 Latin America
6% 1.7 Latin America
5% 1.4 Eastern Europe
5% 1.4 Eastern Europe
4% 1.2 Other
4% 1.2 Other
Total N.A. newsprint demand
Total N.A. newsprint demand
(millions of metric tons)
(millions of metric tons)
2012 world newsprint change in demand by
2012 world newsprint change in demand by
geographic market (% change 2012 over 2011)
geographic market (% change 2012 over 2011)
2012 newsprint demand distribution
2012 newsprint demand distribution
(millions of metric tons)
(millions of metric tons)
SOURCE: PULP AND PAPER PRODUCTS COUNCIL (PPPC)
SOURCE: PULP AND PAPER PRODUCTS COUNCIL (PPPC)
SOURCE: PPPC
SOURCE: PPPC
INDUSTRY TRENDS
INDUSTRY TRENDS
5.5
5.5
4.4
4.4
4.5
4.5
4.1
4.1
4.0
4.0
906
906
719
719
507
507
438
438
491
491
94% 3,487 North America
94% 3,487 North America
4% 130 Latin America
4% 130 Latin America
1% 39 Eastern Europe
1% 39 Eastern Europe
1% 44 Other
1% 44 Other
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
Total N.A. coated mechanical
Total N.A. coated mechanical
paper demand (millions of short tons)
paper demand (millions of short tons)
N.A. coated mechanical paper imports
N.A. coated mechanical paper imports
(thousands of short tons)
(thousands of short tons)
2012 N.A. producers coated
2012 N.A. producers coated
mechanical paper shipment distribution
mechanical paper shipment distribution
(thousands of short tons)
(thousands of short tons)
7
7
8
8
our 3.1 million metric tons (mt) of newsprint capacity
our 3.1 million metric tons (mt) of newsprint capacity
represents approximately 9% of worldwide capacity
represents approximately 9% of worldwide capacity
and 39% of North american capacity. In 2012, inter-
and 39% of North american capacity. In 2012, inter-
national sales represented 41% of our total news-
national sales represented 41% of our total news-
4
4
print sales.
print sales.
3
3
2
2
-4
-4
-6
-6
-2
-2
0
0
6
6
2
2
5
5
-8
-8
1
1
0
0
our newsprint routinely makes the front pages
our newsprint routinely makes the front pages
of some of the world’s most widely circulated
of some of the world’s most widely circulated
-12
-12
-10
-10
newspapers, including The Washington Post, The
newspapers, including The Washington Post, The
New York Times, and O Globo. and when it is not
New York Times and O Globo. and when it is not
carrying the day’s headlines, resolute newsprint is
carrying the day’s headlines, resolute newsprint is
used in a variety of ways to help wholesalers and
used in a variety of ways to help wholesalers and
retailers connect with consumers through advertis-
retailers connect with consumers through advertis-
ing inserts, flyers, brochures, circulars, telephone
ing inserts, flyers, brochures, circulars, telephone
books, business directories and commercial guides.
books, business directories and commercial guides.
INDUSTRY TRENDS
INDUSTRY TRENDS
2.4%
2.4%
(1.0%)
(1.0%)
(0.8%)
(0.8%)
(7.6%)
(7.6%)
(14.5%)
(14.5%)
7.1% 7.9%
7.1% 7.9%
4.0%
4.0%
2.6%
2.6%
World Oceania
World Oceania
Japan Western
Japan Western
Europe
Europe
North
North
America
America
Latin
Latin
America
America
Eastern
Eastern
Europe
Europe
China
China
Other
Other
Asia
Asia
32% 18 Eucalyptus
32% 18 Eucalyptus
2 6% 14 NBSK
2 6% 14 NBSK
17% 9 Other
17% 9 Other
12% 6 SBSK
12% 6 SBSK
9% 5 NBHK
9% 5 NBHK
4% 2 SBHK
4% 2 SBHK
2 9% 16 Western Europe
2 9% 16 Western Europe
26% 15 China
26% 15 China
16% 8 Other Asia/Africa
16% 8 Other Asia/Africa
14% 7 North America
14% 7 North America
6% 3 Latin America
6% 3 Latin America
4% 2 Japan
4% 2 Japan
4% 2 Eastern Europe
4% 2 Eastern Europe
1% 0 Oceania
1% 0 Oceania
2012 world chemical pulp demand
2012 world chemical pulp demand
(% change)
(% change)
2012 world chemical demand distribution,
2012 world chemical demand distribution,
by grade (millions of metric tons)
by grade (millions of metric tons)
2012 world chemical demand distribution,
2012 world chemical demand distribution,
by region (millions of metric tons)
by region (millions of metric tons)
SOURCE: PPPC
SOURCE: PPPC
SOURCE: PPPC
SOURCE: PPPC
EN2PR_ Resolute_2012AR_28361.indd 20
13-03-21 2:31 PM
INDUSTRY TRENDS
INDUSTRY TRENDS
6.6
6.6
5.5
5.5
5.6
5.6
5.1
5.1
4.3
4.3
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
Total N.A. uncoated
Total N.A. uncoated
mechanical demand (millions of short tons)
mechanical demand (millions of short tons)
(9.9%)
(9.9%)
(15.7%)
(15.7%)
(20.5%) (20.2%)
(20.5%) (20.2%)
(18.4%)
(18.4%)
Total SC-A/A+ SC-B/
Total SC-A/A+ SC-B/
STD
STD
LW
LW
SNC+
SNC+
2012 total change in N.A.
2012 total change in N.A.
uncoated mechanical demand, by grade
uncoated mechanical demand, by grade
(% change 2012 over 2011)
(% change 2012 over 2011)
45% 1,958 STD
45% 1,958 STD
28% 1,190 SC-A/A+
28% 1,190 SC-A/A+
16% 683 SC-B/SNC+
16% 683 SC-B/SNC+
11% 472 LW
11% 472 LW
2012 N.A. uncoated mechanical
2012 N.A. uncoated mechanical
demand distribution, by grade
demand distribution, by grade
(thousands of short tons)
(thousands of short tons)
9
9
6
6
3
3
0
0
-3
-3
-6
-6
-9
-9
-12
-12
-15
-15
6
6
5
5
4
4
3
3
2
2
1
1
0
0
8
8
7
7
6
6
5
5
4
4
3
3
2
2
1
1
0
0
1000
1000
800
800
600
600
400
400
200
200
0
0
0
0
-5
-5
-10
-10
-15
-15
-20
-20
-25
-25
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
21
WOOD PRODUCTS
DISTRIBUTION OF SALES
61% CANADA
39% UNITED STATES
NEWSPRINT
DISTRIBUTION OF SALES
48% UNITED STATES
24% LATIN AMERICA
11% ASIA
11% CANADA
5% EUROPE
1% OTHER COUNTRIES
COMMERCIAL PRINTING PAPERS
DISTRIBUTION OF SALES
84% UNITED STATES
8% CANADA
4% LATIN AMERICA
2% ASIA
1% EUROPE
1% OTHER COUNTRIES
MARKET PULP
DISTRIBUTION OF SALES
56% UNITED STATES
20% EUROPE
9% ASIA
8% CANADA
6% LATIN AMERICA
1% OTHER COUNTRIES
Total North american newsprint demand declined
1.2% in 2012, reflecting a 20% increase in demand
from other uses, mainly commercial printers, and a
6% decline in demand from newspapers. accordingly,
the average operating rate, on shipment to capacity
basis, remained elevated in 2012, at 92%. Global
demand for newsprint was down 3% in 2012, including
an 11% decline in Western europe, 9% in India and
5% in Latin america. North american exports were
down to Western europe (30%), asia (32%) and
Latin america (6%), mainly because the strong u.s.
dollar has created difficult conditions for North
american producers on export markets.
FIG.
2.2 B
FUEL
USE
42.9% Black liquor solids
31.8% Bark and biosolids
17.4% Natural gas
3.9% Coal
1.3% Steam
PULP AND
PAPER MILLS 2012
0.9% Bunker C oil
0.7% Landfill gas
0.6% Tire derived fuel
0.4% Plastics
0.1% Light fuel oil
ELECTRICITY
FIG.
2.2 C
USE
PULP AND
PAPER MILLS 2012
42.4% Purchased–hydro
18.3% Purchased–nuclear
16.3% Purchased–coal
8.4% Self–generated cogeneration power
7.4% Self-generated hydro power
7.3% Purchased–other
FIG.
2.2 E
CARBON
FOOTPRINT
PULP AND
PAPER MILLS 2012
31% Scope 1: direct emissions from production
69% Scope 2: indirect emissions related
to purchased electricity and steam
Graph does not add up to 100% due to rounding
Graph does not add up to 100% due to rounding
INDUSTRY TRENDS
7.7
1.4%
5.8
5.4
5.0
5.0
(3.0%)
(1.2%)
(2.8%)
(4.9%)
2008
2009
2010
2011
2012
World Western
Europe
Latin
America
Eastern
Europe
North
America
Asia
(10.5%)
44% 12.4 Asia
2 4% 6.9 Western Europe
17% 5.0 North America
6% 1.7 Latin America
5% 1.4 Eastern Europe
4% 1.2 Other
Total N.A. newsprint demand
(millions of metric tons)
2012 world newsprint change in demand by
geographic market (% change 2012 over 2011)
2012 newsprint demand distribution
(millions of metric tons)
SOURCE: PULP & PAPER PRODUCTS COUNCIL (PPPC)
commeRciAl
commeRciAl
pRinting pApeRs
pRinting pApeRs
SOURCE: PPPC
INDUSTRY TRENDS
5.5
4.4
4.5
4.1
4.0
906
719
507
438
491
94% 3,487 North America
4% 130 Latin America
1% 39 Eastern Europe
1% 44 Other
2008
2009
2010
2011
2012
2008
2009
2010
2011
2012
Total N.A. coated mechanical
paper demand (millions of short tons)
N.A. coated mechanical paper imports
(thousands of short tons)
2012 N.A. producers coated
mechanical paper shipment distribution
(thousands of short tons)
8
7
6
5
4
3
2
1
0
2
0
-2
INNovATIvE SolUTIoNS
INNovATIvE SolUTIoNS
For EvEry rUN
For EvEry rUN
Resolute Forest Products produces a wide spectrum of coated and
Resolute Forest Products produces a wide spectrum of coated and
uncoated mechanical papers that offer an attractive solution for
uncoated mechanical papers that offer an attractive solution for
practically any commercial printing application.
practically any commercial printing application.
-10
-12
-4
-8
-6
INDUSTRY TRENDS
INDUSTRY TRENDS
INDUSTRY TRENDS
INDUSTRY TRENDS
(14.5%)
World Oceania
Japan Western
Europe
2008
2008
2009
2009
North
America
2010
2010
Latin
America
2011
2011
Eastern
Europe
2012
2012
China
Other
Asia
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
7.1% 7.9%
4.0%
2.6%
4.4
4.4
(1.0%)
(0.8%)
4.5
4.5
4.1
4.1
4.0
4.0
2.4%
5.5
5.5
(7.6%)
906
906
719
719
507
507
32% 18 Eucalyptus
2 6% 14 NBSK
17% 9 Other
438
438
12% 6 SBSK
9% 5 NBHK
4% 2 SBHK
491
491
2 9% 16 Western Europe
26% 15 China
94% 3,487 North America
94% 3,487 North America
16% 8 Other Asia/Africa
4% 130 Latin America
4% 130 Latin America
14% 7 North America
1% 39 Eastern Europe
1% 39 Eastern Europe
6% 3 Latin America
1% 44 Other
1% 44 Other
4% 2 Japan
4% 2 Eastern Europe
1% 0 Oceania
INDUSTRY TRENDS
INDUSTRY TRENDS
7.7
7.7
1.4%
1.4%
5.8
5.8
5.4
5.4
5.0
5.0
5.0
5.0
(3.0%)
(3.0%)
(1.2%)
(1.2%)
(2.8%)
(2.8%)
(4.9%)
(4.9%)
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
World Western
World Western
Latin
Latin
Europe
Europe
America
America
Eastern
Eastern
Europe
Europe
North
North
America
America
Asia
Asia
(10.5%)
(10.5%)
44% 12.4 Asia
44% 12.4 Asia
2 4% 6.9 Western Europe
2 4% 6.9 Western Europe
17% 5.0 North America
17% 5.0 North America
6% 1.7 Latin America
6% 1.7 Latin America
5% 1.4 Eastern Europe
5% 1.4 Eastern Europe
4% 1.2 Other
4% 1.2 Other
2
2
0
0
-2
-2
-4
-4
-6
-6
-8
-8
-10
-10
-12
-12
INDUSTRY TRENDS
INDUSTRY TRENDS
7.1% 7.9%
7.1% 7.9%
4.0%
4.0%
2.6%
2.6%
(1.0%)
(1.0%)
(0.8%)
(0.8%)
(7.6%)
(7.6%)
(14.5%)
(14.5%)
World Oceania
World Oceania
Japan Western
Japan Western
North
North
Latin
Latin
Europe
Europe
America
America
America
America
Eastern
Eastern
Europe
Europe
China
China
Other
Other
Asia
Asia
8
8
7
7
6
6
5
5
4
4
3
3
2
2
1
1
0
0
2.4%
2.4%
9
9
6
6
3
3
0
0
-3
-3
-6
-6
-9
-9
-12
-12
-15
-15
32% 18 Eucalyptus
32% 18 Eucalyptus
2 6% 14 NBSK
2 6% 14 NBSK
17% 9 Other
17% 9 Other
12% 6 SBSK
12% 6 SBSK
9% 5 NBHK
9% 5 NBHK
4% 2 SBHK
4% 2 SBHK
2 9% 16 Western Europe
2 9% 16 Western Europe
26% 15 China
26% 15 China
16% 8 Other Asia/Africa
16% 8 Other Asia/Africa
14% 7 North America
14% 7 North America
6% 3 Latin America
6% 3 Latin America
4% 2 Japan
4% 2 Japan
4% 2 Eastern Europe
4% 2 Eastern Europe
1% 0 Oceania
1% 0 Oceania
Total N.A. newsprint demand
Total N.A. newsprint demand
(millions of metric tons)
(millions of metric tons)
2012 world newsprint change in demand by
2012 world newsprint change in demand by
geographic market (% change 2012 over 2011)
geographic market (% change 2012 over 2011)
2012 newsprint demand distribution
2012 newsprint demand distribution
(millions of metric tons)
(millions of metric tons)
2012 world chemical pulp demand
(% change)
Total N.A. coated mechanical
Total N.A. coated mechanical
paper demand (millions of short tons)
paper demand (millions of short tons)
2012 world chemical demand distribution,
N.A. coated mechanical paper imports
N.A. coated mechanical paper imports
by grade (millions of metric tons)
(thousands of short tons)
(thousands of short tons)
2012 N.A. producers coated
2012 N.A. producers coated
2012 world chemical demand distribution,
mechanical paper shipment distribution
mechanical paper shipment distribution
by region (millions of metric tons)
(thousands of short tons)
(thousands of short tons)
SOURCE: PULP AND PAPER PRODUCTS COUNCIL (PPPC)
SOURCE: PULP & PAPER PRODUCTS COUNCIL (PPPC)
SOURCE: PPPC
SOURCE: PPPC
SOURCE: PPPC
9
800
800
1000
1000
6
6
6
3
5
5
0
-3
4
4
-6
3
3
-9
2
2
-12
approximately one-third of our production of uncoated
approximately one-third of our production of uncoated
mechanical papers is supercalendered paper, mainly
mechanical papers is supercalendered paper, mainly
used for coupons, retail inserts and newspaper sup-
used for coupons, retail inserts and newspaper sup-
plements. We produce another third of high-bright
plements. We produce another third of high-bright
papers for general commercial printing, educational
papers for general commercial printing, educational
textbooks, digital printing and tradebooks. The last
textbooks, digital printing and tradebooks. The last
third includes papers for directories, paperback
third includes papers for directories, paperback
books and other commercial applications. In total,
books and other commercial applications. In total,
our 1.3 million metric tons of uncoated mechanical
our 1.3 million metric tons of uncoated mechanical
paper capacity makes us the largest producer in
paper capacity makes us the largest producer in
North america, and the third largest in the world.
North america, and the third largest in the world.
We sell uncoated mechanical papers almost exclu-
We sell uncoated mechanical papers almost exclu-
sively in North america.
sively in North america.
INDUSTRY TRENDS
INDUSTRY TRENDS
400
400
600
600
200
200
-15
1
1
0
0
0
0
With 645,000 metric tons of capacity, we are North
With 645,000 metric tons of capacity, we are North
america’s third largest producer of coated mechani-
america’s third largest producer of coated mechani-
cal papers, grades used for magazines, catalogs and
cal papers, grades used for magazines, catalogs and
advertising inserts. Demand for these products is
advertising inserts. Demand for these products is
largely tied to consumer spending and advertising.
largely tied to consumer spending and advertising.
5.1
5.1
We sell to major commercial printers, publishers,
We sell to major commercial printers, publishers,
catalogers and retailers in North america.
catalogers and retailers in North america.
(15.7%)
(15.7%)
4.3
4.3
6.6
6.6
5.6
5.6
5.5
5.5
North american demand for coated mechanical
North american demand for coated mechanical
paper was down 2.3% in 2012. There was a 4%
paper was down 2.3% in 2012. There was a 4%
2011
2011
2009
2009
2008
2008
2010
2010
2012
2012
Total SC-A/A+ SC-B/
Total SC-A/A+ SC-B/
SNC+
SNC+
(20.5%) (20.2%)
(20.5%) (20.2%)
reduction in shipments within North america and a
reduction in shipments within North america and a
12% increase in imports. The shipment-to-capacity
12% increase in imports. The shipment-to-capacity
ratio average was elevated, at 94% in all of 2012, in
ratio average was elevated, at 94% in all of 2012, in
part as a result of machine closures in the industry.
part as a result of machine closures in the industry.
Total North american demand for uncoated
Total North american demand for uncoated
mechanical paper declined 16% in 2012, including
mechanical paper declined 16% in 2012, including
a 20% drop in supercalendered grades (sc-a+,
a 20% drop in supercalendered grades (sc-a+,
sc-a, sc-b), 18% in lightweight and 10% in standard
sc-a, sc-b), 18% in lightweight and 10% in standard
grades, including high-brights. The shipment to
grades, including high-brights. The shipment-to-
capacity ratio averaged 92% in the year, but it
capacity ratio averaged 92% in the year, but it
fell to 83% in December as a result of significant
fell to 83% in December as a result of significant
capacity additions late in the year.
capacity additions late in the year.
pApErS AlIgNED wITh ToDAy’S
pApErS AlIgNED wITh ToDAy’S
ENvIroNMENTAl NEEDS
ENvIroNMENTAl NEEDS
Taking steps to responsibly manage our environmen-
Taking steps to responsibly manage our environmen-
tal footprint and improve our product diversification,
tal footprint and improve our product diversification,
we have introduced our Align™ family of eco-conscious,
we have introduced our Align™ family of eco-conscious,
45% 1,958 STD
45% 1,958 STD
28% 1,190 SC-A/A+
28% 1,190 SC-A/A+
budget-friendly paper grades, produced with mechan-
budget-friendly paper grades, produced with mechan-
16% 683 SC-B/SNC+
16% 683 SC-B/SNC+
ical pulp. These provide an excellent alternative to
ical pulp. These provide an excellent alternative to
11% 472 LW
11% 472 LW
over-engineered, archival grade freesheet, pro-
over-engineered, archival grade freesheet pro-
duced with chemical pulp—without reducing quality.
duced with chemical pulp—without reducing quality.
In fact, as part of its sales and marketing strategy,
In fact, as part of its sales and marketing strategy,
(18.4%)
(18.4%)
(9.9%)
(9.9%)
STD
STD
LW
LW
2012 total change in N.A.
2012 total change in N.A.
uncoated mechanical demand, by grade
uncoated mechanical demand, by grade
(% change 2012 over 2011)
(% change 2012 over 2011)
2012 N.A. uncoated mechanical
2012 N.A. uncoated mechanical
demand distribution, by grade
demand distribution, by grade
(thousands of short tons)
(thousands of short tons)
2012 world chemical pulp demand
2012 world chemical pulp demand
(% change)
(% change)
2012 world chemical demand distribution,
2012 world chemical demand distribution,
by grade (millions of metric tons)
by grade (millions of metric tons)
2012 world chemical demand distribution,
2012 world chemical demand distribution,
by region (millions of metric tons)
by region (millions of metric tons)
Total N.A. uncoated
Total N.A. uncoated
mechanical demand (millions of short tons)
mechanical demand (millions of short tons)
SOURCE: PPPC
SOURCE: PPPC
SOURCE: PPPC
SOURCE: PPPC
EN2PR_ Resolute_2012AR_28361.indd 22
13-03-21 2:32 PM
8
8
7
7
6
6
5
5
4
4
3
3
2
2
1
1
0
0
0
0
-5
-5
-10
-10
-15
-15
-20
-20
-25
-25
6
5
4
3
2
1
0
8
7
6
5
4
3
2
1
0
1000
800
600
400
200
0
0
-5
-10
-15
-20
-25
6.6
5.5
5.6
5.1
4.3
2008
2009
2010
2011
2012
Total N.A. uncoated
mechanical demand (millions of short tons)
SOURCE: PPPC
(9.9%)
(15.7%)
(20.5%) (20.2%)
(18.4%)
Total SC-A/A+ SC-B/
STD
LW
SNC+
2012 total change in N.A.
uncoated mechanical demand, by grade
(% change 2012 over 2011)
45% 1,958 STD
28% 1,190 SC-A/A+
16% 683 SC-B/SNC+
11% 472 LW
2012 N.A. uncoated mechanical
demand distribution, by grade
(thousands of short tons)
INDUSTRY TRENDS
INDUSTRY TRENDS
5.5
5.5
4.4
4.4
4.5
4.5
4.1
4.1
4.0
4.0
906
906
719
719
507
507
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
438
438
491
491
94% 3,487 North America
94% 3,487 North America
4% 130 Latin America
4% 130 Latin America
1% 39 Eastern Europe
1% 39 Eastern Europe
1% 44 Other
1% 44 Other
23
23
Total N.A. newsprint demand
Total N.A. newsprint demand
(millions of metric tons)
(millions of metric tons)
2012 world newsprint change in demand by
2012 world newsprint change in demand by
geographic market (% change 2012 over 2011)
geographic market (% change 2012 over 2011)
2012 newsprint demand distribution
2012 newsprint demand distribution
(millions of metric tons)
(millions of metric tons)
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
Total N.A. coated mechanical
Total N.A. coated mechanical
paper demand (millions of short tons)
paper demand (millions of short tons)
N.A. coated mechanical paper imports
N.A. coated mechanical paper imports
(thousands of short tons)
(thousands of short tons)
2012 N.A. producers coated
2012 N.A. producers coated
mechanical paper shipment distribution
mechanical paper shipment distribution
(thousands of short tons)
(thousands of short tons)
SOURCE: PULP AND PAPER PRODUCTS COUNCIL (PPPC)
SOURCE: PULP & PAPER PRODUCTS COUNCIL (PPPC)
SOURCE: PPPC
SOURCE: PPPC
2
2
0
0
-2
-2
-4
-4
-6
-6
-8
-8
-10
-10
-12
-12
WOOD PRODUCTS
WOOD PRODUCTS
DISTRIBUTION OF SALES
DISTRIBUTION OF SALES
61% CANADA
61% CANADA
39% UNITED STATES
39% UNITED STATES
6
6
5
5
4
4
3
3
2
2
1
1
0
0
1000
1000
800
800
600
600
400
400
200
200
0
0
COMMERCIAL PRINTING PAPERS
COMMERCIAL PRINTING PAPERS
DISTRIBUTION OF SALES
DISTRIBUTION OF SALES
84% UNITED STATES
84% UNITED STATES
8% CANADA
8% CANADA
4% LATIN AMERICA
4% LATIN AMERICA
2% ASIA
2% ASIA
1% EUROPE
1% EUROPE
1% OTHER COUNTRIES
1% OTHER COUNTRIES
INDUSTRY TRENDS
INDUSTRY TRENDS
7.1% 7.9%
7.1% 7.9%
4.0%
4.0%
2.6%
2.6%
(1.0%)
(1.0%)
(0.8%)
(0.8%)
(7.6%)
(7.6%)
(14.5%)
(14.5%)
World Oceania
World Oceania
Japan Western
Japan Western
North
North
Latin
Latin
Europe
Europe
America
America
America
America
Eastern
Eastern
Europe
Europe
China
China
Other
Other
Asia
Asia
32% 18 Eucalyptus
32% 18 Eucalyptus
2 6% 14 NBSK
2 6% 14 NBSK
17% 9 Other
17% 9 Other
12% 6 SBSK
12% 6 SBSK
9% 5 NBHK
9% 5 NBHK
4% 2 SBHK
4% 2 SBHK
2012 world chemical pulp demand
2012 world chemical pulp demand
(% change)
(% change)
2012 world chemical demand distribution,
2012 world chemical demand distribution,
by grade (millions of metric tons)
by grade (millions of metric tons)
2012 world chemical demand distribution,
2012 world chemical demand distribution,
by region (millions of metric tons)
by region (millions of metric tons)
INDUSTRY TRENDS
INDUSTRY TRENDS
6.6
6.6
5.5
5.5
5.6
5.6
5.1
5.1
4.3
4.3
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
Total N.A. uncoated
Total N.A. uncoated
mechanical demand (millions of short tons)
mechanical demand (millions of short tons)
2 9% 16 Western Europe
2 9% 16 Western Europe
26% 15 China
26% 15 China
16% 8 Other Asia/Africa
16% 8 Other Asia/Africa
NEWSPRINT
NEWSPRINT
14% 7 North America
14% 7 North America
6% 3 Latin America
6% 3 Latin America
4% 2 Japan
4% 2 Japan
4% 2 Eastern Europe
4% 2 Eastern Europe
1% 0 Oceania
1% 0 Oceania
DISTRIBUTION OF SALES
DISTRIBUTION OF SALES
48% UNITED STATES
48% UNITED STATES
24% LATIN AMERICA
24% LATIN AMERICA
11% ASIA
11% ASIA
11% CANADA
11% CANADA
5% EUROPE
5% EUROPE
1% OTHER COUNTRIES
1% OTHER COUNTRIES
SOURCE: PPPC
SOURCE: PPPC
SOURCE: PPPC
SOURCE: PPPC
(9.9%)
(9.9%)
(15.7%)
(15.7%)
(20.5%) (20.2%)
(20.5%) (20.2%)
Total SC-A/A+ SC-B/
Total SC-A/A+ SC-B/
SNC+
SNC+
STD
STD
MARKET PULP
MARKET PULP
DISTRIBUTION OF SALES
DISTRIBUTION OF SALES
(18.4%)
(18.4%)
LW
LW
56% UNITED STATES
56% UNITED STATES
20% EUROPE
20% EUROPE
9% ASIA
9% ASIA
8% CANADA
8% CANADA
6% LATIN AMERICA
6% LATIN AMERICA
1% OTHER COUNTRIES
1% OTHER COUNTRIES
2012 total change in N.A.
2012 total change in N.A.
uncoated mechanical demand, by grade
uncoated mechanical demand, by grade
(% change 2012 over 2011)
(% change 2012 over 2011)
2012 N.A. uncoated mechanical
2012 N.A. uncoated mechanical
demand distribution, by grade
demand distribution, by grade
(thousands of short tons)
(thousands of short tons)
45% 1,958 STD
45% 1,958 STD
28% 1,190 SC-A/A+
28% 1,190 SC-A/A+
16% 683 SC-B/SNC+
16% 683 SC-B/SNC+
11% 472 LW
11% 472 LW
INDUSTRY TRENDS
INDUSTRY TRENDS
7.7
7.7
1.4%
1.4%
5.8
5.8
5.4
5.4
5.0
5.0
5.0
5.0
(3.0%)
(3.0%)
(1.2%)
(1.2%)
(2.8%)
(2.8%)
(4.9%)
(4.9%)
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
World Western
World Western
Latin
Latin
Europe
Europe
America
America
Eastern
Eastern
Europe
Europe
North
North
America
America
Asia
Asia
(10.5%)
(10.5%)
44% 12.4 Asia
44% 12.4 Asia
2 4% 6.9 Western Europe
2 4% 6.9 Western Europe
17% 5.0 North America
17% 5.0 North America
6% 1.7 Latin America
6% 1.7 Latin America
5% 1.4 Eastern Europe
5% 1.4 Eastern Europe
4% 1.2 Other
4% 1.2 Other
8
8
7
7
6
6
5
5
4
4
3
3
2
2
1
1
0
0
2.4%
2.4%
9
9
6
6
3
3
0
0
-3
-3
-6
-6
-9
-9
-12
-12
-15
-15
FIG.
FIG.
2.2 B
2.2 B
FUEL
FUEL
USE
USE
42.9% Black liquor solids
42.9% Black liquor solids
31.8% Bark and biosolids
31.8% Bark and biosolids
17.4% Natural gas
17.4% Natural gas
3.9% Coal
3.9% Coal
1.3% Steam
1.3% Steam
1
1
7
7
5
5
3
3
2
2
6
6
8
8
4
4
0
0
-5
-5
resolute will focus on aggressively promoting its
resolute will focus on aggressively promoting its
cost-competitive align grades to consolidate its
cost-competitive align grades to consolidate its
position in current large-scale markets as well as
position in current large-scale markets as well as
expand into new niche markets. align papers are
expand into new niche markets. align papers are
made with up to 50% less wood fiber and have a
made with up to 50% less wood fiber and have a
smaller environmental footprint than traditional
smaller environmental footprint than traditional
offset papers, including some made with recycled
offset papers, including some made with recycled
content. by delivering higher opacity and bulk at a
content. by delivering higher opacity and bulk at a
lower basis weight than freesheet made with chemi-
lower basis weight than freesheet made with chemi-
cal pulp, align also helps reduce paper, postage and
cal pulp, align also helps reduce paper, postage and
transportation costs. a recent life cycle assessment
transportation costs. a recent life cycle assessment
found that our align grades have a carbon footprint
found that our align grades have a carbon footprint
that is from 35% to 85% smaller than that of the aver-
that is from 35% to 85% smaller than that of the aver-
age freesheet grade. ecopaque, equal offset and
age freesheet grade. ecopaque, equal offset and
resolutemax are included under the align umbrella.
resolutemax are included under the align umbrella.
FIG.
FIG.
for more information, visit alignpaper.com.
for more information, visit alignpaper.com.
2.2 C
2.2 C
-20
-20
-25
-25
-10
-10
-15
-15
0
0
south carolina, produces an impressive line of
south carolina, produces an impressive line of
coated mechanical papers available in a variety of
coated mechanical papers available in a variety of
brightnesses and finishes for catalogs, magazines,
brightnesses and finishes for catalogs, magazines,
coupons and retail inserts. our resoluteGloss,
coupons and retail inserts. our resoluteGloss,
resolutebrite and resolutemax grades offer supe-
resolutebrite and resolutemax grades offer supe-
rior printability and runnability. complementing
rior printability and runnability. complementing
these grades is a wide spectrum of supercalendered
these grades is a wide spectrum of supercalendered
papers such as sca+, sca, scb and sNc which are
papers such as sca+, sca, scb and sNc which are
produced at either our Dolbeau, kénogami and/or
produced at either our Dolbeau, kénogami and/or
Laurentide mills, in Quebec.
Laurentide mills, in Quebec.
ELECTRICITY
ELECTRICITY
USE
USE
BEST-SEllINg Book pApErS
BEST-SEllINg Book pApErS
resolute offers the widest range of book papers of
resolute offers the widest range of book papers of
any North american manufacturer. With many differ-
any North american manufacturer. With many differ-
PULP AND
PULP AND
ent calipers, shades, basis weights and brightness
ent calipers, shades, basis weights and brightness
PAPER MILLS 2012
PAPER MILLS 2012
combinations, our book papers offer us a competi-
combinations, our book papers offer us a competi-
tive advantage in the marketplace. from coloring
tive advantage in the marketplace. from coloring
books, puzzle books, mass market paperbacks and
books, puzzle books, mass market paperbacks and
tradebooks to educational workbooks and hardcover
tradebooks to educational workbooks and hardcover
books, we have a paper to fit just about any book
books, we have a paper to fit just about any book
publishing need.
publishing need.
42.4% Purchased–hydro
42.4% Purchased–hydro
18.3% Purchased–nuclear
18.3% Purchased–nuclear
16.3% Purchased–coal
16.3% Purchased–coal
8.4% Self–generated cogeneration power
8.4% Self–generated cogeneration power
7.4% Self-generated hydro power
7.4% Self-generated hydro power
7.3% Purchased–other
7.3% Purchased–other
0.9% Bunker C oil
0.9% Bunker C oil
0.7% Landfill gas
0.7% Landfill gas
0.6% Tire derived fuel
0.6% Tire derived fuel
0.4% Plastics
0.4% Plastics
0.1% Light fuel oil
0.1% Light fuel oil
hIgh-IMpAcT gloSSy grADES
hIgh-IMpAcT gloSSy grADES
many of North america’s top retailers rely on
many of North america’s top retailers rely on
resolute’s coated and supercalendered papers to
resolute’s coated and supercalendered papers to
help ensure that their flyers, inserts and catalogs
help ensure that their flyers, inserts and catalogs
make a great impression. our catawba mill, in
make a great impression. our catawba mill, in
PULP AND
PULP AND
PAPER MILLS 2012
PAPER MILLS 2012
EN2PR_ Resolute_2012AR_28361.indd 23
13-03-21 2:32 PM
Graph does not add up to 100% due to rounding
Graph does not add up to 100% due to rounding
Graph does not add up to 100% due to rounding
Graph does not add up to 100% due to rounding
FIG.
FIG.
2.2 E
2.2 E
CARBON
CARBON
FOOTPRINT
FOOTPRINT
PULP AND
PULP AND
PAPER MILLS 2012
PAPER MILLS 2012
31% Scope 1: direct emissions from production
31% Scope 1: direct emissions from production
69% Scope 2: indirect emissions related
69% Scope 2: indirect emissions related
to purchased electricity and steam
to purchased electricity and steam
INDUSTRY TRENDS
INDUSTRY TRENDS
7.7
7.7
1.4%
1.4%
5.8
5.8
5.4
5.4
5.0
5.0
5.0
5.0
(3.0%)
(3.0%)
(1.2%)
(1.2%)
(2.8%)
(2.8%)
(4.9%)
(4.9%)
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
World Western
World Western
Europe
Europe
Latin
Latin
America
America
Eastern
Eastern
Europe
Europe
North
North
America
America
Asia
Asia
(10.5%)
(10.5%)
44% 12.4 Asia
44% 12.4 Asia
2 4% 6.9 Western Europe
2 4% 6.9 Western Europe
17% 5.0 North America
17% 5.0 North America
6% 1.7 Latin America
6% 1.7 Latin America
5% 1.4 Eastern Europe
5% 1.4 Eastern Europe
4% 1.2 Other
4% 1.2 Other
Total N.A. newsprint demand
Total N.A. newsprint demand
(millions of metric tons)
(millions of metric tons)
2012 world newsprint change in demand by
2012 world newsprint change in demand by
geographic market (% change 2012 over 2011)
geographic market (% change 2012 over 2011)
2012 newsprint demand distribution
2012 newsprint demand distribution
(millions of metric tons)
(millions of metric tons)
SOURCE: PULP & PAPER PRODUCTS COUNCIL (PPPC)
SOURCE: PULP AND PAPER PRODUCTS COUNCIL (PPPC)
mARket pulp
mARket pulp
SOURCE: PPPC
SOURCE: PPPC
INDUSTRY TRENDS
INDUSTRY TRENDS
5.5
5.5
4.4
4.4
4.5
4.5
4.1
4.1
4.0
4.0
906
906
719
719
507
507
438
438
491
491
94% 3,487 North America
94% 3,487 North America
4% 130 Latin America
4% 130 Latin America
1% 39 Eastern Europe
1% 39 Eastern Europe
1% 44 Other
1% 44 Other
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
Total N.A. coated mechanical
Total N.A. coated mechanical
paper demand (millions of short tons)
paper demand (millions of short tons)
N.A. coated mechanical paper imports
N.A. coated mechanical paper imports
(thousands of short tons)
(thousands of short tons)
2012 N.A. producers coated
2012 N.A. producers coated
mechanical paper shipment distribution
mechanical paper shipment distribution
(thousands of short tons)
(thousands of short tons)
6
6
5
5
4
4
3
3
2
2
1
1
0
0
8
8
7
7
6
6
5
5
4
4
3
3
2
2
1
1
0
0
1000
1000
800
800
600
600
400
400
200
200
0
0
0
0
-5
-5
-10
-10
-15
-15
-20
-20
-25
-25
7
7
5
5
3
3
2
2
6
6
8
8
4
4
0
0
ThE FIBEr oF
ThE FIBEr oF
EvEryDAy lIFE
EvEryDAy lIFE
Our hardwood, softwood, recycled and fluff pulps are a renewable
Our hardwood, softwood, recycled and fluff pulps are a renewable
and biodegradable resource. They can be transformed into a host
and biodegradable resource. They can be transformed into a host
of everyday products that make life better—from soft tissues and fine
of everyday products that make life better—from soft tissues and fine
stationery, to the filter paper used to brew that perfect cup of coffee
stationery, to the filter paper used to brew that perfect cup of coffee
and absorbent products.
and absorbent products.
-10
-10
-12
-12
-4
-4
-8
-8
-6
-6
-2
-2
0
0
2
2
1
1
INDUSTRY TRENDS
INDUSTRY TRENDS
2.4%
2.4%
(1.0%)
(1.0%)
(0.8%)
(0.8%)
(7.6%)
(7.6%)
(14.5%)
(14.5%)
7.1% 7.9%
7.1% 7.9%
4.0%
4.0%
2.6%
2.6%
World Oceania
World Oceania
Japan Western
Japan Western
Europe
Europe
North
North
America
America
Latin
Latin
America
America
Eastern
Eastern
Europe
Europe
China
China
Other
Other
Asia
Asia
32% 18 Eucalyptus
32% 18 Eucalyptus
2 6% 14 NBSK
2 6% 14 NBSK
17% 9 Other
17% 9 Other
12% 6 SBSK
12% 6 SBSK
9% 5 NBHK
9% 5 NBHK
4% 2 SBHK
4% 2 SBHK
2 9% 16 Western Europe
2 9% 16 Western Europe
26% 15 China
26% 15 China
16% 8 Other Asia/Africa
16% 8 Other Asia/Africa
14% 7 North America
14% 7 North America
6% 3 Latin America
6% 3 Latin America
4% 2 Japan
4% 2 Japan
4% 2 Eastern Europe
4% 2 Eastern Europe
1% 0 Oceania
1% 0 Oceania
2012 world chemical pulp demand
2012 world chemical pulp demand
(% change)
(% change)
2012 world chemical demand distribution,
2012 world chemical demand distribution,
by grade (millions of metric tons)
by grade (millions of metric tons)
2012 world chemical demand distribution,
2012 world chemical demand distribution,
by region (millions of metric tons)
by region (millions of metric tons)
SOURCE: PPPC
SOURCE: PPPC
SOURCE: PPPC
SOURCE: PPPC
INDUSTRY TRENDS
INDUSTRY TRENDS
6.6
6.6
5.5
5.5
5.6
5.6
5.1
5.1
4.3
4.3
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
Total N.A. uncoated
Total N.A. uncoated
mechanical demand (millions of short tons)
mechanical demand (millions of short tons)
(9.9%)
(9.9%)
(15.7%)
(15.7%)
(20.5%) (20.2%)
(20.5%) (20.2%)
(18.4%)
(18.4%)
Total SC-A/A+ SC-B/
Total SC-A/A+ SC-B/
STD
STD
LW
LW
SNC+
SNC+
2012 total change in N.A.
2012 total change in N.A.
uncoated mechanical demand, by grade
uncoated mechanical demand, by grade
(% change 2012 over 2011)
(% change 2012 over 2011)
45% 1,958 STD
45% 1,958 STD
28% 1,190 SC-A/A+
28% 1,190 SC-A/A+
16% 683 SC-B/SNC+
16% 683 SC-B/SNC+
11% 472 LW
11% 472 LW
2012 N.A. uncoated mechanical
2012 N.A. uncoated mechanical
demand distribution, by grade
demand distribution, by grade
(thousands of short tons)
(thousands of short tons)
3
3
9
9
6
6
0
0
-3
-3
-9
-9
-6
-6
-15
-15
-12
-12
We operate eight pulp mills, five in the united states
We operate eight pulp mills, five in the united states
and three in canada, with a total capacity of 1.7 mil-
and three in canada, with a total capacity of 1.7 mil-
lion metric tons, making us the fourth largest pulp
lion metric tons, making us the fourth largest pulp
producer in North america. approximately 80% of
producer in North america. approximately 80% of
our virgin pulp capacity is softwood-based: northern
our virgin pulp capacity is softwood-based: northern
bleached softwood kraft pulp (or “Nbsk”), southern
bleached softwood kraft pulp (Nbsk), southern
bleached softwood kraft pulp (sbsk) and fluff pulp.
bleached softwood kraft pulp (or “sbsk”) and fluff
We are also a competitive producer of northern
pulp. We are also a competitive producer of northern
bleached hardwood kraft pulp (NbHk) and southern
bleached hardwood kraft pulp (or “NbHk”) and
southern bleached hardwood kraft pulp (or “sbHk”),
bleached hardwood kraft pulp (sbHk), and, with the
acquisition of fibrek in 2012, a leading producer of
and, with the acquisition of fibrek in 2012, a leading
recycled bleached kraft pulp (rbk). our market
producer of recycled bleached kraft pulp (or “rbk”).
pulp—the pulp we produce but do not consume
our market pulp—the pulp we produce but do not
consume internally—is used to make a range of
internally—is used to make a range of consumer
products, like tissue, packaging, specialty paper
consumer products, like tissue, packaging, specialty
paper products and other absorbent products.
products and other absorbent products.
approximately 39% of our 2012 market pulp shipments
approximately 39% of our 2012 market pulp shipments
were exported outside North america, including
were exported outside North america, including
significant exports to europe (21%) and asia (11%).
significant exports to europe (21%) and asia (11%).
overall chemical market pulp demand rose 2.4% in
overall chemical market pulp demand rose 2.4% in
2012, driven by a 7% increase in chinese demand.
2012, driven by a 7% increase in chinese demand.
Demand in North america and Western europe
Demand in North america and Western europe
improved in the fourth quarter, resulting in declines
improved in the fourth quarter, resulting in declines
for the year of only 0.8% and 1%, respectively. Global
for the year of only 0.8% and 1%, respectively. Global
demand for softwood pulp was up 2.4% in 2012, also
demand for softwood pulp was up 2.4% in 2012, also
as a result of stronger demand in the fourth quarter.
as a result of stronger demand in the fourth quarter.
Non-eucalyptus hardwood pulp was also higher in
Non-eucalyptus hardwood pulp was also higher in
2012, by 2%.
2012, by 2%.
EN2PR_ Resolute_2012AR_28361.indd 24
13-03-21 2:32 PM
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
25
WOOD PRODUCTS
DISTRIBUTION OF SALES
61% CANADA
39% UNITED STATES
NEWSPRINT
DISTRIBUTION OF SALES
48% UNITED STATES
24% LATIN AMERICA
11% ASIA
11% CANADA
5% EUROPE
1% OTHER COUNTRIES
A porTFolIo To MEET A vArIETy oF NEEDS
our diversified portfolio includes Northern and
southern softwood and hardwood pulps, recycled
bleached kraft pulp, as well as fluff pulp, which is
often used to make the absorbent core of personal
care products.
Softwood pulp: With their long fibers, softwood pulp
features structural properties that provide excep-
tional strength. as well, minimal energy is needed
to refine softwood pulp, which is favored for use
in manufacturing tissue and paper towels, as well
as printing, writing and specialty grade papers.
FIG.
2.2 C
FIG.
2.2 B
FUEL
USE
42.9% Black liquor solids
31.8% Bark and biosolids
17.4% Natural gas
3.9% Coal
1.3% Steam
PULP AND
PAPER MILLS 2012
0.9% Bunker C oil
0.7% Landfill gas
0.6% Tire derived fuel
0.4% Plastics
0.1% Light fuel oil
COMMERCIAL PRINTING PAPERS
DISTRIBUTION OF SALES
84% UNITED STATES
8% CANADA
4% LATIN AMERICA
2% ASIA
1% EUROPE
1% OTHER COUNTRIES
MARKET PULP
DISTRIBUTION OF SALES
56% UNITED STATES
20% EUROPE
9% ASIA
8% CANADA
6% LATIN AMERICA
1% OTHER COUNTRIES
hardwood pulp: key features of hardwood pulp
include excellent cleanliness, formation and surface
properties, complemented by good bulk and opacity.
Fluff pulp: fluff pulp, produced in alabama in the
southern united states from loblolly pine, provides
the superior integrity, absorbency and wicking fea-
tures required for high-quality absorbent and spe-
cialty products.
ELECTRICITY
USE
recycled Bleached kraft: our fully dried recycled
PULP AND
bleached kraft (rbk) can be manufactured to
PAPER MILLS 2012
several different brightness levels and is used in
the tissue and towel as well as in the printing and
42.4% Purchased–hydro
18.3% Purchased–nuclear
writing industries.
16.3% Purchased–coal
8.4% Self–generated cogeneration power
7.4% Self-generated hydro power
7.3% Purchased–other
Graph does not add up to 100% due to rounding
Graph does not add up to 100% due to rounding
FIG.
2.2 E
CARBON
FOOTPRINT
PULP AND
PAPER MILLS 2012
31% Scope 1: direct emissions from production
69% Scope 2: indirect emissions related
to purchased electricity and steam
wood pRoducts
BUIlDINg ThE FUTUrE
Resolute Forest Products is a major producer of lumber and other
wood products for the residential construction, non-residential and
home renovation markets. We also produce products for specialized
structural and industrial applications.
INDUSTRY TRENDS
1.6
1.6
1.8
1.7
2.1
2.0
1.8
1.4
0.9
0.6
0.6
0.6
0.8
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
New privately owned housing units started (millions of units)
Actual U.S. housing starts in 2012 were 780,000, 28% higher than in 2011.
SOURCE: U.S. CENSUS BUREAU
Actual U.S. housing starts in 2012 were 780,000, 28% higher than in 2011.
our sawmills produce construction-grade lumber
that we sell in North america, mostly on the east
coast, and provide wood chips to our pulp and paper
mills in canada. We also produce I-joists for the
construction industry and bed frame components,
finger joints and furring strips.
2.0
MANAgINg ForESTS wITh ToMorrow IN MIND
resolute is committed to fostering the long-term
regeneration of the forests we manage for the bene-
fit of future generations through sustainable forest
management (sfm) and continuous improvement of
our forestry practices. as responsible managers, we
1.5
1.0
0.5
0.0
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
27
WOOD PRODUCTS
DISTRIBUTION OF SALES
61% CANADA
39% UNITED STATES
seek to balance the cycles of growing and harvest-
ing trees with the protection of wildlife, plants, soil
and water, as well as aesthetic, cultural and recre-
ational values.
resolute is among the largest sfm certificate holders
in the world, with 100% of the woodlands we own
or manage third-party certified to internationally
recognized sfm standards. We are expanding our
certification commitment by adding forest
stewardship council® (fsc®) certification to 80%
of our managed forests by 2015, and have reached
65% certification at press time for this report.
NEWSPRINT
DISTRIBUTION OF SALES
48% UNITED STATES
24% LATIN AMERICA
11% ASIA
11% CANADA
5% EUROPE
1% OTHER COUNTRIES
our strict adherence to internationally recognized
sfm and chain of custody standards provides cus-
tomers with the assurance that the wood fiber we
use originates from responsibly managed forests.
COMMERCIAL PRINTING PAPERS
DISTRIBUTION OF SALES
84% UNITED STATES
8% CANADA
4% LATIN AMERICA
2% ASIA
1% EUROPE
1% OTHER COUNTRIES
MARKET PULP
DISTRIBUTION OF SALES
56% UNITED STATES
20% EUROPE
9% ASIA
8% CANADA
6% LATIN AMERICA
1% OTHER COUNTRIES
FIG.
2.2 B
FUEL
USE
42.9% Black liquor solids
31.8% Bark and biosolids
17.4% Natural gas
3.9% Coal
1.3% Steam
PULP AND
PAPER MILLS 2012
0.9% Bunker C oil
0.7% Landfill gas
0.6% Tire derived fuel
0.4% Plastics
0.1% Light fuel oil
ELECTRICITY
FIG.
2.2 C
USE
PULP AND
PAPER MILLS 2012
42.4% Purchased–hydro
18.3% Purchased–nuclear
16.3% Purchased–coal
8.4% Self–generated cogeneration power
7.4% Self-generated hydro power
7.3% Purchased–other
FIG.
2.2 E
CARBON
FOOTPRINT
PULP AND
PAPER MILLS 2012
31% Scope 1: direct emissions from production
69% Scope 2: indirect emissions related
to purchased electricity and steam
Graph does not add up to 100% due to rounding
Graph does not add up to 100% due to rounding
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
29
LIVING THE COMPANy VALUES:
be AccountAble
Mariem Elsayed—Director, Investor Relations
Montréal (Quebec) Head Office
In the year since I’ve been part of the resolute team,
I’ve been struck by how everyone I work with has a
strong sense of ownership; employees embrace our
company value of being accountable for their per-
formance. There is a strong dynamic that exists to
support each other so that together, we can help
the company succeed.
I’ve never had a dull moment working in Investor
relations. There’s always a new challenge around
the corner, and that’s what I was looking for when I
joined. We seek to build and foster relationships with
our shareholders daily. We’re accountable to them,
and we aim to continuously and proactively respond
to their needs.
Part of what I do is help track our stock price and try
and determine why it’s moving up or down. I also
track our competitors’ activities—while doing so, I’m
learning as well as gathering important information
that provides valuable insight to management. as I
go about my responsibilities and report on develop-
ments, I see that there is clearly an open-door
policy: senior management is easily accessible,
which is refreshing.
When I was considering joining resolute, I had ques-
tions about the company’s past financial difficulties.
When I looked more closely, I saw that the company’s
executive Team was focused and frugal, aggressively
paying down debt and reducing costs. They set goals,
measure progress and deliver results. I’m confident
about the company’s direction and the management
Team’s sense of accountability.
In terms of the long-term viability of the print sector,
I’m often reminded of an experience I had visiting
family in egypt. There I saw how ancient egyptians
crafted papyrus some 4,000 years ago as a way to
share ideas and communicate. We’re still putting our
ideas on paper today, and that tells me resolute has
a very long future.
STRATEGIC
STATEMENT
LEVERAGE ENVIRONMENTAL, SOCIAL AND ECONOMIC PERFORMANCE
TO MAINTAIN AND ENHANCE COMPETITIVE POSITION
oUr BUSINESS STrATEgy
our corporate strategy includes, on the one hand, a
gradual retreat from certain paper grades, and on the
other, the use of our strong financial position to act
on opportunities to diversify and grow. That strategy
focuses on three core themes: operational excellence,
disciplined use of capital and strategic initiatives.
SUSTAINABILITY STRATEGY
AREAS OF
PRIMARY FOCUS
operational Excellence
We aim to improve our performance and margins by:
(1) leveraging our lower-cost position; (2) maintaining
a stringent focus on reducing costs and optimizing
our diversified asset base; (3) maximizing the benefits
of our access to virgin fiber and managing our exposure
to volatile recycled fiber; (4) pursuing our strategy of
managing production and inventory levels, and focus-
ing production on our most competitive facilities and
machines; and (5) capitalizing on our economical
access to international markets to compensate for the
secular decline in North american newsprint demand.
REINFORCE
ENVIRONMENTAL
CREDENTIALS
KEY
PERFORMANCE
AREAS
> SUSTAINABLE FIBER
SOURCING
> CLIMATE CHANGE
> WATER USE
> PRODUCT AND
PROCESS INNOVATION
Disciplined Use of capital
We make capital management a priority. building on
our focus to reduce manufacturing costs, we will con-
tinue our efforts to decrease overhead and spend our
capital in a disciplined, strategic and focused manner,
concentrated on our most successful sites.
ouR stRAtegy
reducing debt and associated interest charges is one
of our primary financial goals. We believe this improves
our financial flexibility and supports the implementa-
tion of our strategic objectives. since December 31,
2010, we redeemed $349 million of principal amount
of our 2018 senior secured notes and a $90 million
promissory note issued in connection with an acquisi-
tion in 2011. In 2012, we also repaid and canceled
fibrek’s term loan and credit facility, for a total of
$112 million.
POSITION RESOLUTE
AS A COMPETITIVE
EMPLOYER
Not only have we focused on reducing our debt and
the associated interest burden, we also have in place
BUILD SOLID
COMMUNITY
a $100 million share repurchase program, under which
RELATIONS
we have repurchased 5.6 million shares at a cost of
$67 million through December 31, 2012.
> HEALTH AND SAFETY
> EMPLOYEE ENGAGEMENT
IN COMPANY CULTURE
> PROFESSIONAL DEVELOPMENT
AND CAREER PROGRESSION
> LABOR RELATIONS
Strategic Initiatives
> COMMUNITY
We believe in taking an opportunistic approach to
INVOLVEMENT
> COLLABORATION
strategic initiatives, pursuing only those that reduce
WITH FIRST NATIONS
> PARTICIPATION IN
our cost position, improve our product diversification,
PUBLIC POLICY
provide synergies or allow us to expand into future
growth markets.
STRATEGIC COMMITMENTS AND INITIATIVES
by acquiring fibrek, we grew our market pulp segment,
increasing our presence in a market that we believe
will grow over the long term. We believe that we can
generate more value from fibrek’s assets, including
BUSINESS STRATEGY
STRATEGIC
STATEMENT
OUR CORPORATE STRATEGY INCLUDES A GRADUAL RETREAT FROM THE PRODUCTION
OF CERTAIN PAPER GRADES AND THE LEVERAGING OF OUR STRONG FINANCIAL
POSITION TO ACT ON OPPORTUNITIES TO DIVERSIFY AND GROW
AREAS OF
PRIMARY FOCUS
KEY
PERFORMANCE
AREAS
OPERATIONAL
EXCELLENCE
DISCIPLINED
USE OF CAPITAL
STRATEGIC
INITIATIVES
> MANUFACTURING COST
REDUCTIONS AND ASSET
DIVERSIFICATION
> BENEFICIAL ACCESS TO VIRGIN
FIBER AND MANAGEMENT OF
EXPOSURE TO VOLATILE
RECYCLED FIBER
> PRODUCTION AND INVENTORY
MANAGEMENT
> ECONOMICAL ACCESS TO
INTERNATIONAL MARKETS
> OVERHEAD REDUCTION
> DEBT REDUCTION
> FOCUSED AND STRATEGIC
USE OF CAPITAL AT MOST
SUCCESSFUL OPERATIONS
> $100 MILLION SHARE
REPURCHASE PROGRAM
> PURSUIT OF OPPORTUNISTIC
INITIATIVES THAT REDUCE
COSTS, IMPROVE PRODUCT
DIVERSIFICATION, PROVIDE
SYNERGIES OR ALLOW EXPANSION
INTO FUTURE GROWTH MARKETS
COMPETITIVE ADVANTAGES
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
31
the Nbsk mill and the two rbk mills, than they could
on a standalone basis because of integration and the
application of our business principles.
• Reinforce our environmental credentials, taking
appropriate steps to responsibly manage our envi-
ronmental footprint;
oUr SUSTAINABIlITy STrATEgy
In our 2010 sustainability report, resolute committed
to developing a sustainability strategy to align our
efforts in environmental stewardship and social respon-
sibility with our business objectives. In 2011, resolute
established a sustainability committee composed of
senior managers and issue experts tasked with devel-
oping this strategy, among other efforts. This sustain-
ability strategy has been approved by resolute’s
executive Team and is summarized below.
resolute forest Products is committed to operating
in accordance with the three pillars of sustainable
development—environmental, social and economic.
This commitment to sustainability is underscored in
our company’s vision, our corporate values and, most
importantly, the way we do business every day.
our sustainability strategy leverages our environ-
mental, social and economic performance in order to
maintain and enhance our competitive position. The
company’s sustainability strategy has three areas of
primary focus:
SUSTAINABILITY STRATEGY
• Position Resolute as a competitive employer, attract-
ing and retaining employees based on opportunities
to quickly learn and grow within a dynamic organi-
zation; and
• Build solid community relations, recognizing that
economically viable and civically involved compa-
nies support long-term regional prosperity.
These three areas of primary focus are supported by
commitments made in a number of key performance
areas which are outlined in more detail in our 2011
sustainability report.
success in our sustainability efforts will be measured
by the ability of our organization to meet commitments
made to support the company’s three areas of primary
focus and the corresponding key performance areas.
We believe that in delivering on our sustainability
objectives, we will create value for our shareholders
and other company stakeholders. Progress will be
achieved through the implementation of policies,
management systems, programs and targets, and by
further embedding sustainability within resolute’s
corporate culture.
STRATEGIC
STATEMENT
LEVERAGE ENVIRONMENTAL, SOCIAL AND ECONOMIC PERFORMANCE
TO MAINTAIN AND ENHANCE COMPETITIVE POSITION
REINFORCE
ENVIRONMENTAL
CREDENTIALS
POSITION RESOLUTE
AS A COMPETITIVE
EMPLOYER
BUILD SOLID
COMMUNITY
RELATIONS
> SUSTAINABLE FIBER
SOURCING
> CLIMATE CHANGE
> WATER USE
> PRODUCT AND
PROCESS INNOVATION
> HEALTH AND SAFETY
> EMPLOYEE ENGAGEMENT
IN COMPANY CULTURE
> PROFESSIONAL DEVELOPMENT
AND CAREER PROGRESSION
> LABOR RELATIONS
> COMMUNITY
INVOLVEMENT
> COLLABORATION
WITH FIRST NATIONS
> PARTICIPATION IN
PUBLIC POLICY
STRATEGIC COMMITMENTS AND INITIATIVES
AREAS OF
PRIMARY FOCUS
KEY
PERFORMANCE
AREAS
BUSINESS STRATEGY
AREAS OF
PRIMARY FOCUS
KEY
AREAS
PERFORMANCE
STRATEGIC
STATEMENT
OUR CORPORATE STRATEGY INCLUDES A GRADUAL RETREAT FROM THE PRODUCTION
OF CERTAIN PAPER GRADES AND THE LEVERAGING OF OUR STRONG FINANCIAL
POSITION TO ACT ON OPPORTUNITIES TO DIVERSIFY AND GROW
OPERATIONAL
EXCELLENCE
DISCIPLINED
USE OF CAPITAL
STRATEGIC
INITIATIVES
> MANUFACTURING COST
REDUCTIONS AND ASSET
DIVERSIFICATION
> BENEFICIAL ACCESS TO VIRGIN
FIBER AND MANAGEMENT OF
EXPOSURE TO VOLATILE
RECYCLED FIBER
> PRODUCTION AND INVENTORY
MANAGEMENT
> ECONOMICAL ACCESS TO
INTERNATIONAL MARKETS
> OVERHEAD REDUCTION
> DEBT REDUCTION
> FOCUSED AND STRATEGIC
USE OF CAPITAL AT MOST
SUCCESSFUL OPERATIONS
> $100 MILLION SHARE
REPURCHASE PROGRAM
> PURSUIT OF OPPORTUNISTIC
INITIATIVES THAT REDUCE
COSTS, IMPROVE PRODUCT
DIVERSIFICATION, PROVIDE
SYNERGIES OR ALLOW EXPANSION
INTO FUTURE GROWTH MARKETS
COMPETITIVE ADVANTAGES
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
33
LIVING THE COMPANy VALUES:
ensuRe
sustAinAbility
Michèle Anctil, F. Eng.—Coordinator, Sustainable Forest Management
Mauricie (Quebec) Woodlands Operations
resolute’s commitment to sustainability is long-
standing. I can attest to that. I followed my father
Léopold’s footsteps as a forester and just like him,
I joined the company after I graduated. It was my
father who first taught me about the importance of
the forest. Today, when we talk about sustainability,
it is about responsible forest management aimed at
meeting the needs of present and future generations.
one generation later, I am still with the company
and through my work, I make my own contribution
to sustainable forest management.
I now hold a position that is both extremely interesting
and timely. as coordinator, sustainable forest man-
age ment, I work in cooperation with my colleagues
but also with all stakeholders on crown lands in the
mauricie region such as zecs,* outfitting operations,
trappers, various associations, aboriginal communities,
environmental groups, other forest products compa-
nies, forest workers and the relevant governments.
These are all competent and motivated people who are
committed to striking a balance between the three pil-
lars of sustainability—environmental, social and economic.
setting environmental, economic and social objectives
with all these partners and establishing targets and
indicators are key to ensuring a management
approach that is both responsible and sustainable.
*controlled Wildlife management zones in Quebec.
I remember that at the beginning of my career, I was
working in the forest and I had to organize several vis-
its and meetings in the forest to describe and explain
what we were doing to make sure that all stakeholders
understood and that they could make an informed
assessment of the acceptability of our practices.
sustainable forest management certification is a vol-
untary process that allows us to demonstrate that we
manage the forest and that we use forest resources
in accordance with strict principles and standards in
the areas of sustainable forest management and envi-
ronmental management. external independent orga-
nizations make sure that we meet all the requirements
of these internationally recognized standards.
I have been with resolute forest Products since 1983
and I am proud to work for a company that shares my
values, that knows how important it is to ensure sus-
tainability and that is responsible for the long-term
viability of the forests in its care. I am proud to help
achieve our goals in the areas of sustainability and
certification, to make people aware of the importance
of the forest, but also to tell them that resolute forest
Products is managing this renewable resource respon-
sibly in the interest of present and future generations.
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
35
sustAinAbility
peRFoRmAnce
A SUSTAINABlE FUTUrE
Our operations have a material impact on the environment, the economy
and on the communities in which we live and work. Equally balancing
these three pillars of sustainability must be part of our business approach.
We believe that sustainability directly contributes to building and enhanc-
ing our competitiveness and long-term profitability.
That is why we are working hard to ensure sustainability is at the core of all
our business decisions. It is also why we opted for a more comprehensive
annual report in 2012—one that includes not just financial information,
but also information on our sustainability performance. This combined
report aligns with our vision that sustainability and profitability drive
our future.
1.
About tHis section
BoUNDArIES AND ScopE
This report covers our financial year from January 1,
2012, to December 31, 2012. In regards to the sustain-
ability information presented in this section, we have
adopted the following approach to setting the scope
and boundaries:
• We report sustainability performance results for all
operations where we have a controlling interest.14
a complete list of operations is included on
pages 16–17.
• We report sustainability performance on issues
considered highly material, based on a detailed
materiality analysis completed in 2011 in preparation
of our 2010 sustainability report. additional report-
ing on less material sustainability issues will be posted
on our website in the coming months. for more
information on our materiality analysis process, see
the maTerIaLITY aNaLYsIs aND resuLTs sec-
tion on page 37 or refer to our 2011 sustainability
report at resolutefp.com/sustainability.
• All sustainability disclosures included in this report
and on our website are prepared using the Global
reporting Initiative (GrI) Guidelines.
coMpArABIlITy oF DATA
This is our first combined report, and our fourth year
of publishing sustainability-related data. We feel our
ability to collect and present quality performance
data has improved over time. No data reported in
our 2011 sustainability report has been restated.
However, performance data for 2012 is subject to
data availability and change. We will report more
comprehensively later this year on all material aspects
of our sustainability performance according to GrI
reporting guidelines.
It should be noted that some sustainability information
in this report deviates from stated boundaries, but
these deviations are clearly identified. also, data
related to greenhouse gas (GHG) performance has
been prepared in accordance with the GHG Protocol
and, where appropriate, we report performance
normalized to metric tons of production.
[ 14 ] subject to exceptions clearly indicated, data will include the three fibrek Inc. mills acquired and the restart of operations at the Dolbeau (Quebec) paper mill
during the course of 2012. Data related to these specific mills will cover the period stretching from august 1, 2012, to December 31, 2012. Data excludes our
opitciwan and Produits forestiers Petit-Paris joint ventures. Data also excludes mersey paper mill and oakhill sawmill (Nova scotia), which were sold in
December 2012.
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
37
1.
About tHis section
MATErIAlITy ANAlySIS AND rESUlTS
In 2011, we completed a comprehensive materiality
analysis in preparation for the publication of our 2010
sustainability report. as part of the process, we
commissioned interviews with members of the
research community, industry, government, custom-
ers, eNGos, organized labor associations and inves-
tors. Through these interviews, we gained a better
understanding of the sustainability issues of material
importance to us and how stakeholders perceive our
management of these issues.
We consider material issues to be first, of high concern
to internal and external stakeholders, and second,
to have a potential financial impact on our business.
Identifying an issue as having a lower level of materi-
ality does not mean it is unimportant or that we do
not monitor company performance in that area.
rather, it indicates the topic is of less immediate con-
cern to our operations or stakeholders compared to
other issues. our key materiality issues are outlined
in figure 1.0 b on page 38.
FIG.
1.0 A
MATErIAlITy
grID
Higher
STAkEholDEr
coNc Er N
Lower
poTENTIAl
IMpAcT
IMpAcT
Higher
Through this 2011 materiality analysis, we identified the issues that warranted the most attention and that would
therefore meet stakeholder expectations of sustainability performance. our environmental, social and eco-
nomic footprint has remained comparable between 2011 and 2012.
low impact/ high concernlow impact/ medium concernlow impact/ low concernmedium impact/ high concernmedium impact/ medium concernmedium impact/ low concernhigh impact/ high concernhigh impact/ medium concernhigh impact/ low concern 1.
About tHis section
FIG.
1.0 B
MATErIAlITy
ISSUES
HigH impact/
HigH impact/
medium impact/
HigH impact/
medium impact/
low impact/
medium impact/
low impact/
low impact/
medium concern
HigH concern
HigH concern
low concern
medium concern
HigH concern
low concern
low concern
medium concern
SocIAl
• Child labor, forced
or compulsory labor
• Philanthropy
• Customer health and safety
• Customer privacy
• Responsible marketing
EcoNoMIc AND
govErNANcE
• Anti-competitive behavior
• Compliance with laws and regula-
tions (non-environmental)
ENvIroNMENTAl
• Green, responsible procurement/
investment policies
• Non-GHG emissions, effluent
and waste
• Renewable energy (biofuels)
• Environmental impacts
of transportation
SocIAl
• Economic contribution through
wages, taxes, etc.
• Employee benefits and programs
• Non-discrimination and diversity
• First Nations relations
• Grievance mechanisms
• Workforce training and education
EcoNoMIc AND
govErNANcE
• Economic risks associated
with climate change
• Involvement in public policy
• Policies on bribery and corruption
ENvIroNMENTAl
• Environmental regulatory
compliance
• Energy consumption
• Environmental incidents
• Lower environmental impact
products
• Biodiversity
• Raw material supply chain
(especially fiber)
• GHG emissions
• Water consumption and
protection of water resources
• Sustainable forest management
(to third-party certification
standards)
SocIAl
• Community and stakeholder
engagement
• Employee health and safety
• Labor relations
• Impact of entering or exiting
operating communities
• Pension obligations
• Workforce turnover
and recruitment needs
EcoNoMIc AND
govErNANcE
• Corporate economic viability
• Code of conduct and business
ethics
HigHly Material issuesModerately Material issuesLess MateriaL or iMMateriaL issues rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
39
1.
About tHis RepoRt
SUSTAINABIlITy govErNANcE
The overall responsibility for our sustainability perfor-
mance resides with our President and chief executive
officer, but resolute relies on its sustainability
committee, established in 2011, to ensure we deliver
on our key commitments and implement our strategies
in this area. The committee is a cross-functional group
comprised of senior managers from sales and human
resources to purchasing, engineering and environment,
among others. It is accountable to the executive
Team and chaired by the vice President, corporate
communications, sustainability and Government
affairs. In 2012, the committee began its first series
of meetings, and accomplished the following:
• Developed a formal sustainability strategy.
• Created a system to identify commitment risks,
identified key risks related to current commitments
and worked to establish contingency plans.
• Expanded sustainability reporting disclosure under
the GrI framework.
• Tracked progress on current commitments, and
identified potential future commitments for human
resources, environment and community issues that
are currently under review.
FIG.
1.0 C
oUr
cUrrENT coMMITMENTS
ISSUE
coMMITMENT
FIBEr SoUrcINg
wATEr
Increase forest stewardship council® (fsc®) forest certification of
managed forests from 18% in 2010 to 80% by 2015.
Improve our understanding of our water footprint and voluntarily report
to the carbon Disclosure Project’s Water Disclosure program.15
ENvIroNMENTAl coMplIANcE
reduce environmental incidents by 10% in 2013 compared to the 2012
baseline, with a long-term goal of zero incidents.
cArBoN MANAgEMENT
STAkEholDEr ENgAgEMENT
hUMAN rESoUrcES
hEAlTh AND SAFETy
achieve a 65% absolute reduction of scope 1 and 2 GHG emissions by 2015
over the 2000 base year.
Implement standard scope 316 accounting and begin full scope 3 reporting
by 2015.
by the end of 2013, establish information-sharing community Groups at
company operations to further enhance community relations efforts.
Through 2015, implement new human resource practices to support work-
force renewal and retention and engage employees in company’s
sustainability-focused vision and values.
achieve an occupational safety and Health administration (osHa) inci-
dent rate of 1.0 or below in 2013, with a long-term goal of zero incidents,
zero injuries.
[ 15 ] We have changed our 2012 deadline to complete this commitment and are evaluating a new time frame to report to the carbon Disclosure Project on water.
The company continues to have a strong interest in advancing the understanding of our water footprint.
[ 16 ] scope 3 GHG emissions are all indirect greenhouse gas emissions not covered in scope 2, such as emissions from the production of purchased materials, or
transportation activities in vehicles not owned or controlled by the company.
1.
About tHis RepoRt
FIG.
1.0 D
coMMITMENTS coM plETED
IN 2011–2012
Throughout 2012, we achieved a number of the commitments we made in our 2011 sustainability report. These
include the following:
ISSUE
coMMITMENT
FIBEr SoUrcINg
proDUcT STEwArDShIp
SUSTAINABIlITy govErNANcE
hUMAN rESoUrcES
obtained chain of custody certification, either to fsc®, Programme for
the endorsement of forest certification (Pefc) or sustainable forestry
Initiative® (sfI®), by 2012 at all North american pulp and paper mills17 and
wood products facilities under company management.
Launched a marketing strategy in 2012 to promote Align™ eco-efficient
papers that provide more value with less environmental impact.
offered products that help our customers reduce their carbon emissions.
Developed a formal mandate and short- and long-term objectives for the
sustainability committee in 2012.
refined our list of key sustainability metrics and established smarT
targets for material issues.
Developed a long-term strategy in 2012 to ensure workforce renewal as
well as train and develop company leadership.
FIrST NATIoNS
Published a formal company policy on first Nations relations in 2012.
hEAlTh AND SAFETy
achieved an osHa incident rate of 1.13 in line with our goal to be at 1.2
or below in 2012.
FIG.
1.0 E
UNrEAlIzED
coMMITMENT IN 2012
one commitment made in our 2011 sustainability report was unrealized in 2012. following the examination of
our performance, corrective measures have been put in place in order to close future performance gaps.
ISSUE
coMMITMENT
progrESS To DATE
ENvIroNMENTAl coMplIANcE
reduce environmental incidents
by 20% in 2012 compared to 2010
baseline, with a long-term view
of zero incidents.
recorded a 6% increase in 2012 in
comparison to 2011, missing our 20%
reduction target (see page 52).
[ 17 ] excluding Dolbeau (Quebec) paper mill, which resumed operations in august 2012. chain of custody implementation at this mill is currently in progress,
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
41
ReinFoRce ouR
enviRonmentAl
cRedentiAls
FIBEr AND ForESTry
SUSTAINABlE ForEST MANAgEMENT
our adherence to third-party verified forest certifica-
tion standards gives us an important competitive
edge. It provides our customers with the assurance
that our forests are responsibly managed according
to rigorous standards developed specifically for local
forest conditions.
at the end of 2012, resolute owned or managed
over 14.7 million hectares (36.3 million acres) of
forestland in canada and the united states18, and
100% of those forests are managed using at least
one of three internationally recognized sfm certifi-
cation standards: forest stewardship council®
(fsc®), sustainable forestry Initiative® (sfI®), and
canadian standards association (csa). a portion of
our externally sourced fiber is also certified to one of
these aforementioned standards, or to the american
Tree farm system (aTfs) standard. In all, we are one
of the largest sfm certificate holders in the world.
We continue to focus on growing our fsc certification.
In 2011, we made a commitment to increase fsc cer-
tification of our managed forests from 18% to 80% by
2015. Throughout 2012, we made substantial progress
on this goal, and at press time for this report, 65% of
the woodlands we own or manage are fsc-certified.
for more details on forest certification, visit our web-
site at resolutefp.com/certificates.
2.
2.1
MANAgINg oUr ForESTS For
FUTUrE gENErATIoNS
In august 2012, we celebrated the planting of our one
billionth tree in northern ontario. This milestone was
the result of collective efforts made by the company,
our employees, our contractors and suppliers, and
the government over the past 30 years. Working
together, we are committed to protecting the forest
for future generations by responsibly managing the
woodlands entrusted to our care, by carefully track-
ing the sources of our fiber supply, and by efficiently
using the virgin and recycled fiber necessary to make
our products.
accomplishments resulting from our responsible
forest management include the following:
• 100% of Resolute-owned or managed woodlands
are certified to sustainable forest management
(sfm) standards.
• 100% of wood and virgin fiber inputs originate
from North american operations.
• 100% of North American manufacturing facilities
have certified chain of custody tracking systems.17
• 92% of wood for sawmills and 44% of virgin fiber
inputs for pulp and paper mills are sfm-certified.
• 33% of total fiber inputs for pulp and paper mills
are sourced from sawmill chips.
• 10.2% of total fiber inputs for pulp and paper mills
are sourced from recovered paper.
[ 18 ] 99% of the forestlands resolute owns or manages are in canada.
2.1
FIBEr AND ForESTry
rESpoNSIBlE SoUrcINg
our sawmills source 100% of their wood from forests
in canada—mostly from resolute-owned or managed
forests, and some from external suppliers. all of the
fiber consumed by our operations originates from
canada or the u.s. in the form of sawmill chips (33%),
recovered fiber (10%)19 or roundwood (57%). our
commitment to responsible sourcing is detailed in
our Wood and fiber Procurement Policy, available
for download at resolutefp.com/sustainability/
forestry_and_fiber_sourcing.
FIBEr20
In 2012, we used 7,246,731 oven-dry metric tons (odmt)
of virgin and recovered fiber. for the same year, 44%
of the total virgin fiber we used was certified to one
or more sfm standards, primarily originating from
the forests we manage directly in canada. most of
the remaining fiber came from external suppliers,
primarily in the u.s., most of which are small, private
landowners. for both internal and external sourcing,
100% of our fiber is procured through the fsc
controlled Wood standard21 or the sfI fiber
sourcing requirements.
FIG.
2.1 A
2012 coNSUMpTIoN AND SoUrcINg oF vIrgIN FIBEr
(pUlp AND pApEr MIllS)
ToTal consumed
(odmT)
ToTal consumed
fiber wiTh sfm
cerTificaTion, %
ToTal exTernally
sourced (odmT)
ToTal exTernally
sourced wiTh sfm
cerTificaTion, %
caNaDa
3,084,342
uNITeD sTaTes
3,424,505
ToTAl
6,508,847
77%
16%
44%
1,068,131
3,335,657
4,403,788
42%
14%
21%
fiber Procured
Through fsc/sfi
conTrolled
sourcing, %
100%
100%
100%
[ 19 ] Includes oNP (old newspapers), soP (sorted office paper) and omG (old magazines). Includes our mokpo mill in south korea.
[ 20 ] Includes menominee (michigan), fairmont (West virginia) and saint-félicien (Quebec) mills as at august 1, 2012, to December 31, 2012. excludes mersey
(Nova scotia) mill, sold in December 2012.
[ 21 ] fsc controlled Wood: virgin wood or wood fiber which has been verified as having a low probability of including wood from any of the following categories:
a) illegally harvested wood; b) wood harvested in violation of traditional and civil rights; c) wood harvested in forests in which high conservation values are
threatened by management activities; d) wood harvested in forests being converted from natural and semi-natural forests to plantations or non-forest use;
e) wood from forests in which genetically modified trees are planted.
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
43
2.1
FIBEr AND ForESTry
most of the virgin fiber consumed in canada is sourced
from resolute’s owned or managed forests. for our
operations in the united states, the majority of the
fiber is sourced externally, through a supplier net-
work, from numerous small, non-industrial private for-
est (NIPf) landowners, most of whom have chosen
not to pursue third-party certification for their typi-
cally small-size parcel holdings due to the applicable
costs and administrative requirements involved.
Nonetheless, we are continually at work, through
our suppliers and our industry trade associations, to
encourage these small landowners to work to certify
their properties to sfm standards that are designed
specifically for them (including the american Tree farm
system and the fsc family forest). our own certifi-
cations require us to deal only with suppliers who are
trained in the use of best management Practices (bmPs)
for timber harvesting, and who then commit to being
accountable for implementing them. This helps ensure
that environmental concerns, such as protection
of water quality, soil and endangered species, are
addressed within the areas from which we source
our timber, even though the non-industrial private
forest landowners may not themselves be certified.
wooD
In 2012, our operations consumed 7,482,078 cubic
meters (m3) of wood to manufacture lumber and
value-added wood products. 100% of this wood
originated from forests in canada. approximately
FIG.
2.1 B
2012 coNSUMpTIoN
oF wooD (SAwMIllS)
12% of our wood is purchased from external suppli-
ers. In total, approximately 92% of our wood is
certified.
ToTal consumed (m3)
% sourced exTernally
% of ToTal consumed
fiber cerTified
% non-cerTified fiber
consumed from
conTrolled sources
cANADA
7,482,078
12.3%22
92.1%
7.9%
[ 22 ] excludes oakhill (Nova scotia) sawmill sold in December 2012.
2.1
FIBEr AND ForESTry
chAIN oF cUSToDy
We have instituted fiber-tracking systems at all of
our facilities,23 all of which are third-party certified
according to one or more of three internationally
recognized chain of custody (coc) standards,
namely fsc, sfI and Pefc. This helps to ensure
that all of our wood and fiber inputs meet either
the fsc controlled Wood standard or the sfI
fiber sourcing requirements and in some cases,
both. further details on the specific coc certifica-
tions in place at each facility can be found at
resolutefp.com/certificates.
QUEBEc’S NEw ForESTry rEgIME
Tenure regulatory changes in Quebec will result in
about 30% of our timber supply being removed from
current company allocations and sold through pub-
lic auction. as of april 2013, responsibility for forest
management planning, silviculture and certification
will also be taken over by the provincial government.
Quebec has committed to maintaining all forest cer-
tifications in place on forestlands on the date of
transfer. The new system is expected to increase the
cost of harvesting timber and reduce supply.
In light of this change, resolute will continue to closely
monitor and assess the effects of forest-related reg-
ulatory developments in Quebec. We will work to
competitively position the company in the timber
auction market and take advantage of any opportu-
nity which could flow from these regulatory shifts.
cANADIAN BorEAl ForEST AgrEEMENT
as one of the founding partners in the canadian
boreal forest agreement (cbfa), we are committed
to implementing world-leading practices for sustain-
able forest management and conservation that will
ensure the future of the boreal forest, its diverse
ecosystems and biodiversity. The cbfa represents
a unique and significant commitment by all of its
signatories to support conservation efforts and
forest management.
[ 23 ] excluding Dolbeau (Quebec) paper mill, which resumed operations in august 2012.
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
45
2.1
FIBEr AND ForESTry
unfortunately, as was reported in December 2012,
Greenpeace announced its intention to leave the
cbfa, making allegations regarding resolute’s man-
agement of the boreal forest that have since been
proven to be inaccurate and unfounded. We remain
fully committed to the cbfa and all of its environ-
mental, social and contractual obligations and will
continue working with the other signatories to imple-
ment the agreement’s principles and objectives.
BIoDIvErSITy
Providing protection for forest biodiversity and habi-
tat plays a vital role in the creation of our 25-year
management plans developed in association with
government and the public. In fact, in 2006, resolute
gifted two parcels of land we owned in the mauricie
(Quebec) region to the Nature conservancy of
canada. In 2012, the two parcels were recognized as
a nature reserve by the Quebec Government, making
the area the biggest peatland nature reserve in
Quebec—a crucial habitat for many rare plants such
as the white-fringed orchid.
2.2
ENErgy SoUrcES AND coNSUMpTIoN
Pulp and paper production is an energy-intensive
process. The cost and reliable supply of energy are
key considerations for us due to their impact on our
margins. energy costs currently account for 21% of
our manufacturing costs. We see rising energy costs
and power supply disruptions as risks that must be
managed. That is why we are focusing on improving
the energy efficiency of our mills and maximizing
cogeneration of heat and power from renewable
sources. In 2012, 68% of our total energy needs came
from renewable sources.
We purchase fuel, electricity and steam from exter-
nal suppliers and generate electricity at our hydro-
electric facilities and through cogeneration. While
hydro is a primary source, we own seven sites that
operate cogeneration facilities to produce clean
energy from carbon-neutral biomass, thereby reduc-
ing our energy costs while diverting the release of
greenhouse gases into the atmosphere.
FUEl ENErgy
In 2012, we consumed 83 million gigajoules (GJ) of
fuel energy at our pulp and paper mill operations,
75% of which came from biomass. as well, 1.6% of
our fuel energy was sourced from other alternative
eneRgy And climAte
cHAnge
energy fuels, including used tires, waste plastics and
landfill gas. using old tires and waste plastics diverts
these materials from landfills and recovers their
energy value.
ElEcTrIcITy AND cogENErATIoN
In 2012, we consumed 14 million megawatt hours
(mWh) of electricity (purchased and self-generated)
at our pulp and paper mills, most of which was pur-
chased from electric utilities, with the remainder com-
ing from our own production. GHG emissions from
electricity depend on the energy mix of local utilities,
which varies significantly from region to region.
many of our mills generate power that is sold to third-
party customers. To further diversify our interests in
biofuel, we announced, in 2012, the construction of
an industrial wood pellet plant. This new plant, adja-
cent to our sawmill in Thunder bay, ontario, will con-
vert a currently underutilized residual material into a
reliable source of renewable energy. construction of
the plant is scheduled for completion in 2014, and we
have a ten-year agreement to supply ontario Power
Generation’s atikokan station with 45,000 metric tons
of pellets annually. This will be the largest power plant
in North america fueled entirely by biomass and will
contribute significantly to reducing GHG emissions.
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
47
2.2
We produce electricity at seven cogeneration facili-
ties and seven hydroelectric dams. The output is con-
sumed internally, sold at contracted fixed prices and/
or sold on the spot market. This allows us to reduce
our costs by generating energy internally at a lower
cost compared to open market purchases, and by
producing revenue from sales of some of the power.
FIG.
2.2 A
cUrrENT AND FUTUrE
cogENErATIoN SAlES
ENErgy AND clIMATE
chANgE
The table below shows the facilities where we cur-
rently produce, or will produce in 2013, energy and
sell it externally as power produced from renewable
sources. We buy back a portion of the energy pro-
duced for use in our operations.
SAlES
TypE
CapaCity (MW)
annualized sales (MWh/year)
ENErgy
Current
Dolbeau, Qc
fort frances, oN
saint-félicien, Qc
new in 2013
Gatineau, Qc
Thunder bay, oN
cogeneration
cogeneration
cogeneration
cogeneration
cogeneration
28
45
43
15
65
163,000
3,700
305,400
96,000
370,000
WOOD PRODUCTS
DISTRIBUTION OF SALES
61% CANADA
39% UNITED STATES
COMMERCIAL PRINTING PAPERS
DISTRIBUTION OF SALES
84% UNITED STATES
8% CANADA
4% LATIN AMERICA
2% ASIA
1% EUROPE
1% OTHER COUNTRIES
NEWSPRINT
DISTRIBUTION OF SALES
48% UNITED STATES
24% LATIN AMERICA
11% ASIA
11% CANADA
5% EUROPE
1% OTHER COUNTRIES
WOOD PRODUCTS
DISTRIBUTION OF SALES
61% CANADA
39% UNITED STATES
MARKET PULP
DISTRIBUTION OF SALES
56% UNITED STATES
20% EUROPE
9% ASIA
8% CANADA
6% LATIN AMERICA
1% OTHER COUNTRIES
COMMERCIAL PRINTING PAPERS
DISTRIBUTION OF SALES
84% UNITED STATES
8% CANADA
4% LATIN AMERICA
2% ASIA
1% EUROPE
1% OTHER COUNTRIES
2.2
NEWSPRINT
DISTRIBUTION OF SALES
48% UNITED STATES
24% LATIN AMERICA
11% ASIA
11% CANADA
5% EUROPE
1% OTHER COUNTRIES
only two of these facilities produced power for sale
PULP AND
PAPER MILLS 2012
for the duration of 2012—fort frances and saint-
félicien. In December 2012, our Dolbeau facility
0.9% Bunker C oil
began operations following the restart of the paper
0.7% Landfill gas
0.6% Tire derived fuel
mill, and we completed the installation of a new turbine
0.4% Plastics
at saint-félicien, adding an additional 9.5 mW of
0.1% Light fuel oil
capacity. our Thunder bay facility is expected to
begin production by the end of the first quarter of
2013, and the Gatineau facility is expected to begin
selling power in the second quarter.
We are also improving our energy efficiency through
the Northern Industrial electricity rate (NIer) Program
FIG.
2.2 B
FUEL
USE
42.9% Black liquor solids
31.8% Bark and biosolids
17.4% Natural gas
3.9% Coal
1.3% Steam
PULP AND
PAPER MILLS 2012
0.9% Bunker C oil
0.7% Landfill gas
0.6% Tire derived fuel
0.4% Plastics
0.1% Light fuel oil
FIG.
2.2 B
FUEL
USE
42.9% Black liquor solids
31.8% Bark and biosolids
17.4% Natural gas
3.9% Coal
1.3% Steam
Graph does not add up to 100% due to rounding
Graph does not add up to 100% due to rounding
to earn rebates on electricity purchased and con-
sumed by our paper mills, provided we comply with
the conditions of the program. our energy costs
were favorably impacted by approximately
c$19 million from the NIer’s retroactive rebate
recorded in 2012.
MARKET PULP
DISTRIBUTION OF SALES
56% UNITED STATES
20% EUROPE
9% ASIA
8% CANADA
6% LATIN AMERICA
1% OTHER COUNTRIES
ENErgy AND clIMATE
chANgE
FIG.
2.2 C
ELECTRICITY
USE
PULP AND
PAPER MILLS 2012
42.4% Purchased–hydro
18.3% Purchased–nuclear
16.3% Purchased–coal
8.4% Self–generated cogeneration power
7.4% Self-generated hydro power
7.3% Purchased–other
FIG.
2.2 C
ELECTRICITY
USE
PULP AND
PAPER MILLS 2012
42.4% Purchased–hydro
18.3% Purchased–nuclear
16.3% Purchased–coal
8.4% Self–generated cogeneration power
7.4% Self-generated hydro power
7.3% Purchased–other
Graph does not add up to 100% due to rounding
clIMATE chANgE AND grEENhoUSE
gAS EMISSIoNS
The environmental elements of our sustainability
commitments extend to include accepting our share
of responsibility for global warming and committing
to optimizing the role of the forest in mitigating cli-
mate change. as part of our membership in the
WWf’s climate savers program, we committed to
achieving a reduction in absolute GHG emissions
(scope 1 and 2) of 65% below 2000 levels by 2015.
This is an industry-leading GHG reduction target,
and is the equivalent of taking 1.45 million cars off
the road.24
at the end of 2012, our total GHG emissions were
reduced by 65.8% since 2000, and in 2012, our total
GHG emissions amounted to 3,974,743 metric tons
of carbon dioxide equivalents (co2e), a decrease of
10.7% from 2011. These numbers do not include emis-
sions from the recent acquisition of the fairmont,
menominee and saint-félicien pulp mills, which will
Graph does not add up to 100% due to rounding
[ 24 ] based on an estimated reduction of 7,545,935 metric tons of co2 (11,608,256 in 2000 minus 4,062,321 in 2015).
visit epa.gov/cleanenergy/energy-resources/calculator.html.
FIG.
2.2 E
CARBON
FOOTPRINT
PULP AND
PAPER MILLS 2012
31% Scope 1: direct emissions from production
69% Scope 2: indirect emissions related
to purchased electricity and steam
FIG.
2.2 E
CARBON
FOOTPRINT
PULP AND
PAPER MILLS 2012
31% Scope 1: direct emissions from production
69% Scope 2: indirect emissions related
to purchased electricity and steam
WOOD PRODUCTS
DISTRIBUTION OF SALES
61% CANADA
39% UNITED STATES
NEWSPRINT
DISTRIBUTION OF SALES
48% UNITED STATES
24% LATIN AMERICA
11% ASIA
11% CANADA
5% EUROPE
1% OTHER COUNTRIES
FIG.
2.2 B
FUEL
USE
42.9% Black liquor solids
31.8% Bark and biosolids
17.4% Natural gas
3.9% Coal
1.3% Steam
PULP AND
PAPER MILLS 2012
0.9% Bunker C oil
0.7% Landfill gas
0.6% Tire derived fuel
0.4% Plastics
0.1% Light fuel oil
COMMERCIAL PRINTING PAPERS
DISTRIBUTION OF SALES
84% UNITED STATES
8% CANADA
4% LATIN AMERICA
2% ASIA
1% EUROPE
1% OTHER COUNTRIES
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
2.2
MARKET PULP
DISTRIBUTION OF SALES
56% UNITED STATES
20% EUROPE
9% ASIA
8% CANADA
6% LATIN AMERICA
1% OTHER COUNTRIES
12000
10000
8000
6000
be reflected in 2013 reporting. also, as stated in our
2011 sustainability report, we are currently evaluating
the impact of our landfill sites on our global emissions.
We will be publishing an update on our progress
later in 2013.
4000
2000
0
cArBoN FooTprINT
resolute has been tracking and monitoring GHG
emissions from our pulp and paper mills since before
2000. our GHG accounting is based on the GHG
Protocol (ghgprotocol.org). In 2012, scope 2 emissions
accounted for 69% of our carbon footprint, compared
to 31% for scope 1 emissions.
PULP AND
PAPER MILLS 2012
We are progressing toward our commitment of
improving the knowledge of our scope 3 emissions,
more specifically around GHG emissions from trans-
portation and from our chemical suppliers. a com-
plete inventory is planned by 2015. as part of our
WWf climate savers commitment, we have been
working intensively to close the minor gaps in scope
12
1 and 2 emissions identified in our inventory, includ-
10
ing the tracking of sawmill emissions, emissions from
8
landfills we own, and the treatment of emissions from
owned cogeneration facilities according to contrac-
6
tual agreements. These gaps are expected to be
filled and included in the 2012 inventory later during
the year. ensuring a robust emission inventory is
essential to identifying opportunities to reduce our
carbon footprint.
14
0
4
2
ELECTRICITY
FIG.
2.2 C
USE
42.4% Purchased–hydro
18.3% Purchased–nuclear
16.3% Purchased–coal
8.4% Self–generated cogeneration power
7.4% Self-generated hydro power
7.3% Purchased–other
49
ENErgy AND clIMATE
chANgE
FIG.
2.2 D
GREENHOUSE GAS
EMISSIONS
PULP AND
PAPER MILLS 2000-2012
Total absolute (direct)
Total absolute (indirect)
Total intensity (direct and indirect)
12
10
8
6
4
2
0
2000
Million mt CO2e
2010
2011
2012
1000
900
800
700
600
500
400
300
200
100
0
kg CO2e/mt
1000
900
800
700
600
500
400
300
200
100
0
FIG.
2.2 E
CARBON
FOOTPRINT
PULP AND
PAPER MILLS 2012
FIG.
2.3 A
TOTAL SUSPENDED SOLIDS
(TSS), BIOCHEMICAL OXYGEN
DEMAND (BOD5)
31% Scope 1: direct emissions from production
69% Scope 2: indirect emissions related
to purchased electricity and steam
PULP AND
PAPER MILLS 2010-2012
Absolute
Intensity
BOD5
TSS
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
kg/mt
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
2010
Thousands of mt
2011
2012
2010
2011
2012
FIG.
2.3 B
WATER
USED
Absolute
Intensity
PULP AND
PAPER MILLS 2010-2012
420
350
280
210
140
70
0
70
60
50
40
30
20
10
0
70
60
50
40
30
20
10
0
2010
2011
2012
Millions of m3
m3 /mt
420
350
280
210
140
70
0
Graph does not add up to 100% due to rounding
Graph does not add up to 100% due to rounding
GREENHOUSE GAS
PULP AND
FIG.
2.2 D
EMISSIONS
PAPER MILLS 2000-2012
Total absolute (direct)
Total absolute (indirect)
Total intensity (direct and indirect)
12000
10000
8000
6000
4000
2000
12
10
8
6
4
2
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
0
0
2000
Million mt CO2e
2010
2011
2012
FIG.
2.2 D
GREENHOUSE GAS
EMISSIONS
PULP AND
PAPER MILLS 2000-2012
1000
900
800
700
600
500
400
300
200
100
0
kg CO2e/mt
1000
900
800
700
600
500
400
300
200
100
0
51
2.3
Total absolute (direct)
Total absolute (indirect)
Total intensity (direct and indirect)
12
mill enviRonmentAl
peRFoRmAnce
PULP AND
PAPER MILLS 2010-2012
FIG.
2.3 A
1000
TOTAL SUSPENDED SOLIDS
(TSS), BIOCHEMICAL OXYGEN
DEMAND (BOD5)
1000
6
4
8
12
14
10
900
Absolute
800
ENvIroNMENTAl MANAgEMENT
Intensity
700
all of our operations have environmental manage-
600
ment systems (ems) in place. by the end of 2012, 18
500
out of 21 paper mills and 15 out of 21 wood products
400
facilities had implemented an ems that was certified
300
to Iso 14001 environmental management standards.
200
In 2012, each facility identified two key performance
100
indicators (kPIs) for which reduction targets were
set. This approach was chosen to best reflect the dif-
kg CO2e/mt
4
ferent geographic and technological contexts of each
operation. kPIs are monitored at both the mill and
corporate levels. at the mill level, water, environmen-
2010
tal incidents, air emissions as well as material use and
Thousands of mt
waste generation are the most material areas of focus.
2000
Million mt CO2e
2010
2012
2011
10
0
0
0
8
6
2
2
FIG.
2.3 A
TOTAL SUSPENDED SOLIDS
(TSS), BIOCHEMICAL OXYGEN
DEMAND (BOD5)
PULP AND
PAPER MILLS 2010-2012
900
300
200
100
500
400
800
600
700
1.6
1.8
2
water Management
While a significant amount of water is required to make
TSS
BOD5
paper, our operations return more than 90% of the
water withdrawn to the environment. The balance
remains within the product or is converted to steam
in the manufacturing process. In 2012, our papermak-
ing processes returned to the receiving environment
385,545,827 cubic meters (m3) of water, compared to
385,161,896 m3 in 2011.25 all the water we use in paper-
making and pulp processes passes through primary
and secondary effluent treatment systems. Non-contact
cooling water that does not mix with the process efflu-
2011
2011
ent may be returned without treatment, but it is moni-
tored, sampled and reported to regulatory authorities.
2010
2012
2012
kg/mt
0
0.4
0.8
0.6
0.2
1.4
1
1.2
0
FIG.
2.3 B
WATER
USED
Absolute
Intensity
PULP AND
PAPER MILLS 2010-2012
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
Absolute
Intensity
BOD5
14
12
10
8
6
4
2
0
2010
Thousands of mt
2011
2012
420
350
280
210
140
70
0
TSS
2010
2011
2012
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
420
350
280
210
140
70
0
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
2012
70
60
50
40
30
20
10
0
2010
2011
kg/mt
Millions of m3
m3 /mt
70
60
50
40
30
20
10
0
FIG.
2.3 B
WATER
USED
PULP AND
PAPER MILLS 2010-2012
[ 25 ] resolute estimates water intake from effluent discharge using a method developed by the National council for air and stream Improvement (NcasI).
Absolute
Intensity
420
350
280
70
60
50
70
60
50
It is a legal requirement to report an accurate discharge flow to state/provincial authorities.
40
210
140
70
0
30
20
10
0
2010
2011
2012
Millions of m3
m3 /mt
40
30
20
10
0
12000
10000
8000
6000
4000
2000
0
420
350
280
210
140
70
0
2.3
We are committed to improving our understanding of
our water footprint and to voluntarily reporting to the
carbon Disclosure Project’s (cDP) Water Disclosure
program. We are currently evaluating a new timeframe
to report to the cDP on water.
350
Environmental Incidents
300
regardless of their level, incidents are tracked at all
paper mills, sawmills and woodlands operations, as
250
well as at our hydroelectric power facilities in Quebec.
200
We classify environmental incidents as having either
150
significant risk (class 1) or moderate risk (class 2). In
100
2012, we fell short of our 20% reduction target over
2011. We experienced 2 class 1 incidents and 36 class
50
2 incidents, representing a 6% increase in the total
number of incidents from 2011. In response, we have
further enhanced our reporting and performance
parameters, and set rigorous operational objectives
for 2013.
0
MIll ENvIroNMENTAl
pErForMANcE
FIG.
2.3 C
FIBER
LOSS
Total fiber loss
Intensity
PULP AND
PAPER MILLS 2010-2012
350
300
250
200
150
100
50
0
2010
2011
2012
60
50
40
30
20
10
0
60
50
40
30
20
10
0
Thousands of mt
kg/mt
for 2013, we have set a new target to reduce envi-
ronmental incidents by 10% over 2012. for a summary
of class 1 incidents that occurred during the course
of 2011 and the corrective measures we have taken,
please refer to figure 2.3 e in our 2011 sustainability
report, available at resolutefp.com/sustainability.
FIG.
3.2 A
OSHA RATE 2010-2012 PER 100 EMPLOYEES
1.83
1.51
1.72
1.43
1.02
0.66
0.85
0.89
1.31
1.13
0.93
Total
Company
Pulp and
paper
operations
Wood products
and woodlands
operations
Other sites
Total
Company
Pulp and
paper
operations
Wood products
and woodlands
operations
Other sites
Total
Company
Pulp and
paper
operations
Wood products
and woodlands
operations
2010
2011
2012
2.0
1.5
1.0
0.5
0
2.0
1.5
1.0
0.5
0.0
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
53
2.3
MIll ENvIroNMENTAl
pErForMANcE
FIG.
2.3 D
pUlpINg/BlEAchINg
chEMIcAlS USED—201226
sulfuric acid (thousand mT)
sodium chlorate (thousand mT)
sodium bisulfite (thousand mT)
sodium hydroxide (thousand DmT)27
sodium hydrosulfite (thousand DmT)
sulfur (thousand mT)
borol (thousand mT)
sulfur dioxide (thousand mT)
urea (thousand mT)28
Air Emissions
atmospheric emissions from pulp and paper mills
result mainly from the combustion of fossil fuels.
These emissions include air contaminants such as sul-
fur dioxide (so2), nitrogen oxides (Nox) and total
particulate matter (TPm). We manage our air emis-
sions as part of the environmental management
system at each mill, and we continue to invest in pol-
lution control technologies to maintain regulatory
compliance and to improve odor control.
Material and waste generation
our greatest opportunity to reduce waste lies in
using resources efficiently. fiber, for example, repre-
sents a high input cost. reducing the amount of fiber
70.0
82.3
20.0
118.0
9.4
5.0
2.5
1.1
9.7
we lose through effluent treatment means that more
fiber is available for production, minimizing the cost
of effluent treatment as well as the amount of waste
sent to landfill.
at press time for this report, 2012 performance data
for air emissions and landfilled waste were not avail-
able. We will report on these indicators further in the
year. mill-specific environmental performance data
for each of the foregoing key performance indicators
can be found in our 2011 sustainability report.
[ 26 ] materials used for pulp and paper production only, except for logs (supplied to sawmills).
[ 27 ] Dried metric tons (DmT).
[ 28 ] excludes Dolbeau (Quebec).
2.4
pRoducts
Wood and fiber are the basis of products we use every
day. from the lumber to frame houses and build beds
to the fiber in tissues and diapers, our operations
generate the materials for products that are a part of
everyone’s daily experience. Paper is a part of that
experience as it continues to be an effective medium
for advertising, education and literature.
The role of paper in the digital world is shifting, and
consumers want to know that the paper they are
using comes from sustainable sources. In the context
of global sustainability, we see an upward trend in the
demand for environmentally conscious and value-
added forest-based products. This presents a tangible
opportunity for resolute to remain aligned with—and
even ahead of—customer expectations when it comes
to developing sustainable and innovative products.
SUSTAINABlE proDUcTS
Part of reducing our GHG emissions means reducing
the carbon footprint of our products. This has led us
to invest in, and commit to grow market share for,
innovative products like our low-impact environmental
line of mechanical papers unified under the Align™
brand. These high-brightness papers are made with
up to 50% less fiber and require fewer chemicals
than the average uncoated freesheet (ufs) made
from chemical pulp.
a life cycle assessment (Lca) showed that the
uncoated grades in the align portfolio (ecopaque
offset, ecopaque Laser, ecopaque Jet, equal offset
and equal book) have a carbon footprint that is 85%
lower than that of the average ufs over its life cycle.
That means that using 100 metric tons of align
uncoated instead of ufs can eliminate the same
amount of greenhouse gas emissions as produced
annually by 22 passenger cars. align uncoated
grades are also produced using 63% less energy
compared to the average ufs. on coated grades,
the Lca found that align’s resolutemax paper has
a carbon footprint that is 35% lower than that of
the average coated freesheet over its life cycle and
uses 25% less energy to produce.
ultimately, align helps us reduce our carbon foot-
print, and gives our customers access to a quality
supply of environmentally conscious paper without
paying a premium.
In 2012, we developed a website and implemented a
launch and marketing strategy to promote the align
grades. our align products also support our commit-
ment made through our membership in the WWf
climate savers program to develop and offer prod-
ucts that help our customers reduce their carbon
footprint (see illustration 2.4 a). visit alignpaper.com
for more information.
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
55
2.4
proDUcTS
FIG.
2.4 A
LCA RELATIVE FOOTPRINT
OF ALIGN COMPARED TO FREESHEET
LIFE CYCLE IMPACT RESULTS
LIFE CYCLE
IMPACT
CATEGORIES
Global warming
Carbon storage
Carcinogens
Non-carcinogens
Respiratory inorganics
Ionizing radiation
Ozone layer depletion
Respiratory organics
Aquatic ecotoxicity
Terrestrial ecotoxicity
Terrestrial acid/nutri
Land occupation
Aquatic acidification
Aquatic eutrophication
Non-renewable energy
Mineral extration
Align
Uncoated
Competitor
Uncoated
Freesheet
Align
ResoluteMax
Competitor
Coated
Freesheet
Climate Change
14%
IMPACT
100%
IMPACT
65%
IMPACT
100%
IMPACT
Human Health
13%
IMPACT
100%
IMPACT
36%
IMPACT
100%
IMPACT
Ecosystem Quality
3%
IMPACT
100%
IMPACT
27%
IMPACT
100%
IMPACT
Resources
36%
IMPACT
100%
IMPACT
103%
IMPACT
100%
IMPACT
3.0
3.1
our long-term competitiveness is tied to our ability
to recruit, develop and retain top-quality employees
with the right skills. We are working hard to build our
company around natural leaders who are results-
and action-oriented, and who have strong business
acumen and an aptitude for problem-solving and
thinking strategically.
workForcE AND TUrNovEr
at the end of 2012, resolute had 9,255 employees in
canada, the u.s. and south korea, along with a small
number of employees working in other countries. We
experienced a turnover rate of 12.5%, primarily as a
result of retirement, but also from voluntary resigna-
tions for various reasons, including competition for
workers from other industries.
rENEwAl AND rETENTIoN STrATEgy
We believe that resolute’s employees are its strongest
asset, and that our organization is made stronger
through investing in the recruitment of new talent
and developing the strengths of current employees.
position Resolute
As A competitive
employeR
hUMAN rESoUrcES
over the next few years, many of our longstanding
workers will be taking their well-deserved retirement,
and we will need to attract candidates who are
competent, motivated and eager to learn. To rise to
this challenge, we have built a workplace where our
employees can learn, grow and contribute.
our recently launched long-term recruitment strat-
egy includes revitalizing our recruitment processes,
leveraging social media, creating new communica-
tions tools, and promoting our employer brand:
“resolute. Jobs where you grow.” another key aspect
of our recruitment strategy is strengthening the
close relationships we have with the communities in
which we operate. our human resources teams fre-
quently participate in employment fairs, open house
events at academic institutions and other community
activities. In November 2012, resolute partnered
with cégep de saint-félicien (Quebec) to offer a
certificate Program in pulp and paper manufacturing.
The program includes two internships of 120 hours
each at one of our mills. Partnerships such as this
one will be instrumental in helping us build tomor-
row’s workforce.
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
57
3.1
hUMAN rESoUrcES
While recruitment is important, we are equally com-
mitted to ensuring that our current employees are
consistently motivated and engaged. our human
resources teams work hard to promote individual
professional development goals, support sharing
of knowledge and resources across the company,
and create opportunities for growth and learning
wherever possible.
FIG.
3.1 A
EMPLOYEES
BY DIVISION
2012
37% PULP AND PAPER ( CANADA)
29% WOOD PRODUCTS
25% PULP AND PAPER (U.S.)
6% CORPORATE
2% OTHER
EMployEE rEprESENTATIoN AND lABor
orgANIzATIoN
constructive labor and management relations are at
the foundation of good human resource management
and are very important to resolute’s business. regular
dialogue with union leaders, local union representa-
tives and employees at all our operations ensures
that these key stakeholders are kept informed of our
business realities.
In 2012, 77.9% of our workforce was unionized, and
the majority of our collective agreements will be up
for negotiation in 2014. There were no work stoppages
at our operations in 2012.
We are committed to the collective bargaining pro-
cess and believe that considering the views of our
valued employees and protecting their right to free-
dom of association are fundamental to our way of
doing business.
Graph does not add up to 100% due to rounding
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
59
LIVING THE COMPANy VALUES:
woRk sAFely
Curtis Swindell, Jr.—Health and Safety Manager—United States
Calhoun (Tennessee) pulp and paper mill
my commitment to safety came as a result of a very
personal experience. early in my career, one of my
employees was injured on the job. I rode in the ambu-
lance with him and when we arrived at the hospital, I
met with his family. The worry and fear for the life of
their loved one was on each of their faces. I decided
that day I would work to ensure none of my people
would be hurt on the job again.
at resolute, working safely is fundamental to the way
we do business. It is not a separate process—it’s part
of every aspect of the work we do. Having practices
and procedures alone does not create a safe work
environment. management must play an active role
as “coaches” with members of their teams. We support
our employees and make sure they have the proper
skills and tools to get the job done safely. employees
must choose to perform their jobs safely every day
without compromise. and that’s the type of account-
ability that makes our safety culture successful.
I’ve seen significant changes in the company’s safety
performance in my ten years with resolute. In the
past, it was not uncommon to have over 500 inci-
dents in one year. Today, this rate has been reduced
by approximately 80%. I believe our company will
not be satisfied until we reach our ultimate goal of
zero incidents, zero injuries. To get there, we are
working proactively to ensure that everyone takes
responsibility for their personal safety and the safety
of others—from the executive offices to the mill floor.
We are educating our peers to use an active thought
process in every step of what they do, recognizing
and communicating every possible hazard, no matter
how routine the task.
our executive Team has a clear direction of how we
should operate as a world-class producer. I feel we
are moving in the right direction in our business and
in our commitment to workplace safety. my personal
motto is that safety is a “way of LIfe,” LIfe standing
for Leading Injury-free employees. It’s what I work
toward passionately each day.
3.2
HeAltH And sAFety
SAFETy MANAgEMENT SySTEM
We have had a safety management system (sms) in
place for several years, which provides for training
and awareness, audits and monitoring, and employee
engagement through the use of joint health and
safety committees at all the operations we manage.
for more information on our sms, please visit
resolutefp.com/sustainability/stakeholder_
engagement/safety_and_Health.
We work hard to be what we call a “Total safety
organization.” It is a goal that inspires us to be a
company where safety is embedded in our day-to-
day culture, where all employees put safety first in
making decisions, and where structures and manage-
ment systems are in place to support and ensure the
complete safety of everyone at our sites.
building a world-class health and safety program is a
top priority, and we strive for zero incidents and zero
injuries in all our operations. our health and safety
focus is driven by our company values as well as
our Health and safety Policy statement, which was
updated in march 2012 and is available on our web-
site at resolutefp.com/sustainability/stakeholder_
engagement/safety_and_Health. our Health and
safety Policy applies to all employees and contrac-
tors worldwide.
FIG.
2.3 C
FIBER
LOSS
Total fiber loss
Intensity
350
300
250
200
150
350
300
250
200
150
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
100
100
PULP AND
PAPER MILLS 2010-2012
60
50
40
30
20
10
0
60
50
40
30
20
10
0
61
50
0
3.2
50
0
2010
2011
2012
Thousands of mt
kg/mt
hEAlTh AND SAFETy
FIG.
3.2 A
OSHA RATE 2010-2012 PER 100 EMPLOYEES
2.0
1.5
1.0
0.5
0
1.83
1.51
1.72
1.43
1.02
0.66
0.85
0.89
1.31
1.13
0.93
Total
Company
Pulp and
paper
operations
Wood products
and woodlands
operations
Other sites
Total
Company
Pulp and
paper
operations
Wood products
and woodlands
operations
Other sites
Total
Company
Pulp and
paper
operations
Wood products
and woodlands
operations
2010
2011
2012
SAFETy pErForMANcE
During the course of 2012, no employee or contrac-
tor fatalities occurred. While our ultimate safety per-
formance objective continues to be zero incidents,
zero injuries, we did achieve a 26% reduction in total
recordable injuries29 (107 employees were injured, 38
fewer compared to 2011) and recorded 17% fewer lost-
time days over 2011 results. We achieved an osHa
incident rate of 1.13, compared to 1.43 in 2011. This
result demonstrates important progress on a key safety
commitment for resolute. for 8 out of those 12 months,
2.0
1.5
1.0
we logged a world-class osHa incident rate of less
than 1. The year 2012 also saw the successful imple-
mentation of a near-miss reporting system.
In 2011, we instituted a company-wide injury severity
rate, calculated by the number of workdays lost plus
number of restricted workdays due to injury per
200,000 hours worked divided by total amount of
hours worked. This severity rate allows us to measure
the actual impact from injuries on the health of our
employees.30 our 2012 severity rate result was 34.01.
0.5
0.0
[ 29 ] recordable injuries do not include minor, first-aid level incidents.
[ 30 ] Lost days are calculated based on calendar days and begin the day after the incident occurs.
4.0
4.1
build solid
community
RelAtions
coMMUNITy
In 2012, our operations were concentrated in ontario,
Quebec, Nova scotia and the southeastern united
states as well as in south korea. as much as an oper-
ation may anchor the local economy, it also relies on
that same community to ensure its sustainability. our
operations and employees support and participate
in local community life, and we work with community
leaders to better understand local issues and concerns.
STAkEholDEr ENgAgEMENT progrAM
Increasing support and involvement in our operating
communities is a priority for us. In 2011, we conducted
external polling in our key operating regions on sus-
tainability issues, and in early 2012, we launched an
official stakeholder engagement Program at operat-
ing sites in the u.s. and canada.
We are training mill representatives in outreach
communications and creating information-sharing
community groups where we have operations. Local
managers have been provided with tools to manage
this outreach at each site. once fully in place, these
community groups will help provide a consistent
basis for community engagement. We also anticipate
they will enhance the dialogue between local stake-
holders and our company on a range of issues.
beyond this, our operations have always had their
own form of ongoing stakeholder outreach efforts,
where the local general managers, human resource
managers or other staff meet formally and informally
with local governments, business partners, chambers
of commerce, eNGos and others. our goal is to ensure
that local stakeholder outreach is conducted regularly
and extensively across all of our operations.
phIlANThropy
In 2012, we made charitable contributions of approximately
$1.2 million with specific emphasis on environmental
stewardship, and health and education programs.
at the corporate level, we have established a formal
mechanism to review all funding requests exceeding
$10,000. at the operations level, each facility is pro-
vided with a level of discretion in managing their
respective contributions budgets, provided that
50% of the funded activities fall within our strategic
funding areas. Humanitarian needs are supported
through participation in regional centraide/united
Way campaigns, and the company encourages
employee-led regional or site-specific workplace
campaigns.
FIrST NATIoNS rElATIoNS
In 2012, we published a formal policy regarding our
relations with first Nations in canada. To prepare
this policy, we surveyed and analyzed the formal
aboriginal relations policies of a number of natural
resource companies operating in canada, the united
states and australia, as well as documented existing on-
the-ground practices. This policy is available on
our website at resolutefp.com/sustainability/
stakeholder_engagement.
In some of our operating communities in canada,
first Nations peoples make up a large portion of the
population. as stated in our policy, resolute is com-
mitted to supporting and maintaining constructive
and solid relationships with first Nations in our oper-
ating regions in canada. a key aspect of this commit-
ment involves exploring employment and business
development opportunities of mutual benefit.
In Thunder bay (ontario), for example, resolute has
a financial partnership with the fort William first
Nation to operate a sawmill employing approximately
170 people. since 1998, resolute and the council of
atikamekw opitciwan in Quebec have operated the
opitciwan sawmill on the territory of the obedjiwan
reserve where the forestry operations and sawmill
employ 135 people.
rESolUTE ForEST proDUcTS 2012 ANNUAl rEporT
63
NoTES
NoTES
PrINTeD IN caNaDa
RESOlUTE FOREST pRODUCTS 2012 AnnUAl REpORT
bOARD OF DiRECTORS
Richard b. Evans
Chairman of the Board
Richard D. Falconer 1, 2, 3
Corporate Director
Richard Garneau
President and
Chief Executive Officer
Jeffrey A. Hearn 2, 4
Corporate Director
Alain Rhéaume 1, 3
Managing Partner,
Trio Capital Inc.
bradley p. Martin 2, 3
Vice President, Strategic
Investments, Fairfax
Financial Holdings Limited
Michael S. Rousseau 1, 4
Executive Vice President
and Chief Financial Officer,
Air Canada
CORpORATE OFFiCERS
Richard Garneau
President and
Chief Executive Officer
pierre laberge
Senior Vice President,
Human Resources
Alain boivin
Senior Vice President,
Pulp and Paper Operations
John lafave
Senior Vice President,
Pulp and Paper Sales
and Marketing
yves laflamme
Senior Vice President,
Wood Products,
Procurement and
Information Technology
Ambassador
David H. Wilkins 2, 4
Partner, Nelson Mullins
Riley & Scarborough LLP;
Former U.S. Ambassador
to Canada
1 Audit Committee
2 Environment, Health and Safety
Committee
3 Finance Committee
4 Human Resources, Compensation
and Nominating and Governance
Committee
Jo-Ann longworth
Senior Vice President and
Chief Financial Officer
Jacques p. Vachon
Senior Vice President,
Corporate Affairs and
Chief Legal Officer
SHAREHOlDER inFORMATiOn
Annual General Meeting
Our annual meeting of stockholders will be held on
Thursday, May 16, 2013, at 10:00 a.m. (Eastern), at the
Valhalla Inn, Scandia meeting room, 1 Valhalla Inn Road,
Thunder Bay, Ontario, Canada.
Media
Seth Kursman
Vice President, Corporate Communications,
Sustainability and Government Affairs
514 394-2398
seth.kursman@resolutefp.com
Transfer Agent for Common Stock
Computershare Trust Company, N.A.
P.O. Box 43078, Providence, RI, 02940-3078, United States
866 820-6919 (toll-free within the United States and Canada)
781 575-3100
computershare.com/investor
Co-Transfer Agent (Canada)
Computershare Investor Services Inc.
100 University Avenue, 9th Floor
Toronto, Ontario, M5J 2Y1, Canada
800 564-6253 (toll-free within the United States and
Canada)
computershare.com/investor
independent Registered public Accounting Firm
PricewaterhouseCoopers LLP
1250 René-Lévesque Boulevard West, Suite 2800
Montréal, Quebec, H3B 2G4, Canada
investor Relations
Rémi G. Lalonde
Vice President, Investor Relations
514 394-2345
remi.lalonde@resolutefp.com
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investor information and Financial Reporting
Investor inquiries should be directed to Resolute’s
Investor Relations department at ir@resolutefp.com.
Vous trouverez la version française de ce rapport sur
pfresolu.com.
10-K Report
Resolute Forest Products Inc. files an Annual Report on
form 10-K with the U.S. Securities and Exchange Commission,
a copy of which is included with this Annual Report to
Shareholders. An additional free copy (without exhibits)
is available upon request to Resolute’s Investor Relations
department. In addition, the Company’s SEC filings,
Annual Report to Shareholders, news releases and
other investor information can be accessed at reso-
lutefp.com/investors.
Stock listings
The shares of Resolute Forest Products Inc. trade under
the stock symbol “RFP” on both the New York Stock
Exchange and the Toronto Stock Exchange.
Resolute Forest Products
111 Duke Street, Suite 5000
Montréal, Quebec, H3C 2M1, Canada
514 875-2160 or 1 800 361-2888
For a full list of contacts, visit resolutefp.com/contact.
Want to find out how switching to Resolute’s
AlignTM grades can help your company reduce
its own environmental footprint? Visit
alignpaper.com for more information and
contact us at alignpaper@resolutefp.com.