KEY FACTS AND FIGURES MESSAGE FROM THE PRESIDENT + … · 2014. 4. 28. · carbon emission from shipping ﬁnished product High quality handling ... the Global Reporting Initiative’s

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LIGHTER IS BETTER

KEY FACTS AND FIGURES 01

MESSAGE FROM THE PRESIDENT + CEO 04

PEOPLE 16

PAPER 28

PERFORMANCE 32

THE RESULTS: ENVIRONMENTAL DATA 41

REGULATORY COMPLIANCE 48

GRI INDEX 50

Headquartered in Richmond, British Columbia (B.C.), Catalyst Paper employs 1,611 people and operates three mills and a distribution facility on Canada’s Pacific coast. Our combined annual production capacity of 1.5 million tonnes meets the needs of customers, including retailers, publishers, commercial printers, and manufacturers who use our pulp, in North America, Latin America, the Pacific Rim and Europe.

We have earned a reputation for environmental stewardship based on our commitment to certified fibre sourcing, manufacturing efficiency, verified chain of custody and environmentally responsible paper operations. A public company, Catalyst’s shares trade on the Toronto Stock Exchange (TSX) under the symbol CYT.

PAPER FACTSinside pages of report (120.3 g)

INPUTS

Raw Fibre (g) 113

% certified sources 100

Filler (g) 45

Water (L) 9.1

Work (person secs) 1.3

Energy (Cal) 664

% renewable 91

EMISSIONS

Greenhouse Gas (g) 11 *

Air Particulate (mg) 2.9

Effluent BOD (mg) 58

Solid Waste (cm3) 10

* Offset to zero

Production Notes

The inside pages of this report are printed on Ascent Gloss Sage, Catalyst’s new coated three grade, produced at the Port Alberni mill. Ascent is our highest quality coated paper grade. Its brightness, superior opacity and excellent printability make it ideal for magazine, catalogue, high-end insert, commercial and direct mail print applications printed on heatset offset presses.

Catalyst’s coated products are available under our Sage program, meaning they are certified (Programme for the Endorsement of Forest Certification) as containing 100% fibre from sustainably managed forests, that there were no net carbon emissions during their manufacture, and that detailed mill-level environmental performance data are available via GreenBlue’s Environmental Paper Assessment Tool (EPAT). We also contribute $1 for every tonne of Sage product sold to support our partner initiatives.

The Paper Facts label identifies the inputs and emissions associated with this specific grade of paper calculated on a per-report basis. Catalyst customers can use the online Paper Calculator at http://catalystpaper.com/calculator to identify inputs and emissions associated with their own purchases and to compare them to typical North American paper products.

This report was printed with inks that are formulated to contain plant-derived materials, and that comply with North American toxics-in-packaging legislation for heavy metal content.

Catalyst Paper Corporation2nd Floor, 3600 Lysander Lane

Richmond, B.C. V7B 1C3604-247-4400

www.catalystpaper.com

READ MORE ONLINE ABOUT OUR COMPANY

catalystpaper.com/about/our-facilities

Our manufacturing facilities have long histories and are economic

drivers in the coastal communities where they are located.

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PEOPLE 16

PAPER 28

PERFORMANCE 32



GRI INDEX 50




INPUTS

Raw Fibre (g) 113


Filler (g) 45

Water (L) 9.1


Energy (Cal) 664

% renewable 91

EMISSIONS





* Offset to zero

Production Notes






Richmond, B.C. V7B 1C3604-247-4400






1

CATALYST PAPER 2013 SUSTAINABILITY REPORT

1 Incidents per 200,000 hours worked.

2 Active employees at year-end, excluding vacancies.

3 Inclusive of benefits, exclusive of restructuring costs (severance).

4 Includes property taxes, B.C. carbon tax, and sales, use, income and logging taxes.

5 Losses from discontinued operations, net of tax, are shown separately from continuing operations in the consolidated statements of earnings (loss) in our annual consolidated financial statements for the years ended December 31, 2013, 2012 and 2011.

6 2013, 2012 and 2011 results were impacted by one-time non-cash accounting adjustments.

7 2012 value based on opening share value as of relisting on the TSX on January 7, 2013. 2013 value based on opening share value on December 31, 2013.

8 Includes Snowflake.

9 Gigajoules (GJ) – includes fossil fuels and renewables.

10 Megawatt-hours (MWh) – includes purchased and self-generated energy.

11 Closure of Snowflake in Sept 2012 resulted in substantial GHG reductions.

12 Based on actual test results; National Pollutant Release Inventory (NPRI) data may differ due to use of emission factors and inclusion of other sources, see page 47.

13 2013 BOD discharges from Crofton were elevated compared to past years. The mill is actively investigating the cause.

KEY FACTS + FIGURES

2013 2012 2011

SOCIAL

Medical incident frequency 1 3.8 4.0 4.2Lost-time incident frequency 1 1.4 1.7 1.7Employee population 2 1,611 1,592 1,877Payroll ($ millions) 3 183 206 250Charitable donations ($ thousands) 136 139 90

ECONOMIC ($ millions, unless otherwise noted)

Total taxes paid 4 27.0 20.0 23.0Total sales 5 1,051.4 1,058.2 1,079.7Net earnings (loss) attributable to company 5, 6 (127.6) 583.2 (974.0)Market capitalization 7 20.0 29.0 13.0Adjusted EBITDA (before restructuring costs) 5 47.3 60.7 68.7Adjusted EBITDA (before restructuring costs)

as % of sales 5 4.5 5.7 6.4

INPUTS 8 (usage)

Water (m3) 106,877,705 119,534,178 127,361,988Fuel energy 9 30,071,303 35,905,617 36,823,417Electrical energy 10 3,527,604 3,839,724 3,932,563Wood chips, pulp logs, old newspapers (tonnes) 1,663,248 1,918,165 1,986,642

OUTPUTS 8 (tonnes, unless otherwise noted)

GHG emissions (carbon dioxide equivalency – C02e) 11

215,122 877,865 1,071,680

Total reduced sulphur (TRS) emissions 12 77 78 91Particulate emissions 12

(see page 39)464 584 506

Biochemical oxygen demand (BOD) 1,17413 971 990Total suspended solids (TSS) 2,320 3,952 3,347Solid waste to landfill (m3)

(see page 39)85,847 282,642 161,102

2013 BOARD OF DIRECTORS AT A GLANCE

COMMITMENTTo continually review and improve governance procedures to keep pace with emerging regulated and voluntary practices

MEMBERS7 total6 independent

GENDER6 male1 female

COMMITTEESAudit

Environment, Health and Safety

Governance, Human Resources and Compensation

ADDITIONAL INFORMATION Copies of committee terms of reference, codes of conduct and standards of governance are available at www.catalystpaper.com/about/governance

INPUTS85% of our purchased raw inputs are waste products

Certified chain of custody to Forest Stewardship Council (FSC) and Programme for the Endorsement of Forest Certification (PEFC)

90% renewable energy in our product manufacturing

All of our fibre is from sustainably well-managed forests

MANUFACTURINGYield focused – use less, waste less

High-opacity paper offering bulk with less weight

Paper with one of the lowest carbon footprints in North America

TRANSPORTATIONMulti-modal efficient logistics to reduce material miles and carbon emission from shipping finished product

High quality handling delivers orders on time, damage free

PAPER LIFE CYCLEPartnerships to gain sustainability insight with organizations like World Wildlife Fund (WWF), GreenBlue, Greenpeace, Sierra Club BC, Forest Ethics and Corporate Knights

TRANSPARENCYAlong the supply chain

On product labels highlighting pedigree and footprint

Carbon, forest footprint, water disclosure as well as reporting to GreenBlue’s Environmental Paper Assessment Tool (EPAT)

First environmental report published in 1993

PERFORMANCE:PROGRESS ON 5 FRONTS

1 2 3 4 5

THE BIG PICTURE:

www.catalystpaper.com/about/stance

A five-point operating philosophy guides our efforts to continually meet the high expectations of our customers,

investors, employees, communities and other stakeholders.

PEOPLE PAPER PERFORMANCE

WHAT IS THIS REPORT ABOUT?This report focuses on the wholly owned operations and worldwide sales of Catalyst Paper from January 1 to December 31, 2013.

In this, our 11th sustainability report, we follow the Global Reporting Initiative’s (GRI) G4 guidelines and self declare in accordance with core disclosure. As in past years, the report covers those aspects of performance that are of most interest to our stakeholders. Our scope is largely unchanged

from last year when our report earned the Chartered Professional Accountants award for corporate reporting.

Our business circumstances in 2013 prevented us from contributing financially to the UN Global Compact and the Global Compact Canadian Network. Although we have withdrawn from the initiative, we remain committed to – and take guidance from – the principles of the UN Global Compact.

We did not seek formal external assurance on the report, although we share the views of stakeholders on some of our key issues and initiatives. And we welcome reader feedback on this report, as well as ideas for future editions.

Please share your thoughts with us by emailing [email protected]

MANUFACTURING PROCESS

RESOURCE USE

EMPLOYEES + UNIONS P24

CORPORATE + DISTRIBUTIONENERGY P38

WOOD FIBRE P37

WATER P37

OTHER KEY MATERIALS P46

MAGAZINES

CATALOGUES

RETAIL INSERTS

BOOKS

BROCHURES

NEWSLETTERS

NEWSPAPERS

FLYERS

DIRECTORIES

DIRECT MAIL

REPORTS, MANUALS, COMICS, GRAPHIC NOVELS

CUSTOMERS + COMPETITIVENESS P29-32, 36

SAFETY P25

EFFICIENCY P45

TRANSPARENCY + DISCLOSURE P50

OUR PRODUCTS

ATE ONE DISTR

CROFTONProduces enough paper every year for 100 million phone books + 150 million daily newspapers including The Globe and Mail, The Wall Street Journal and The New York Times

NANAIMO

PORT ALBERNIProduces paper for

directories, catalogues, brochures, inserts, flyers and magazines such as Baron’s, Men’s Journal,

In Touch, US Weekly and Rolling Stone

POWELL RIVERProduces paper for catalogues, magazines, newsletters, high volume magazines and books, including Fifty Shades of Grey, the fastest-selling paperback of all time

RICHMOND

SURREY DISTRIBUTION CENTRE

WATER QUALITY P37

CLIMATE CHANGE + GHGS P40

AIR QUALITY P39

SOLID WASTE P39

REGULATORY COMPLIANCE P48

INVESTORS

CREDITORS

GOVERNMENTS P19

COMMUNITIES P26-27, 35-36

FIRST NATIONS P19

NON-GOVERNMENTAL GROUPS P20-21

ENVIRONMENTECONOMIC SOCIAL

IMPACTS + BENEFITS

LOW-IMPACT PRODUCTIONFINANCING PARTNERSHIPS + STAKEHOLDERS

RENEWAL + RETENTION P22-24

2013LESS IS MORE

CATALYST PAPER CORPORATION2nd Floor, 3600 Lysander Lane Richmond, B.C. V7B 1C3 604-247-4400

Visit us online at www.catalystpaper.com

JOE NEMETHPresident and Chief Executive Officer

BRIAN BAARDAVice-President, Finance and Chief Financial Officer

STEVE BONIFERROSenior Vice-President, Human Resources

GRAHAM KISSACKSustainability Specialist

GENERAL MANAGERS + COMMUNITY LIAISON

CROFTON

Robert Belanger, General Manager P.O. Box 70 Crofton, B.C. V0R 1R0 250-246-6100

PORT ALBERNI

Fred Chinn, General Manager 4000 Stamp Avenue Port Alberni, B.C. V9Y 5J7 250-724-7525

POWELL RIVER

Brian Johnston, General Manager 5775 Ash Avenue Powell River, B.C. V8A 4R3 604-483-3722

ENVIRONMENTAL LIAISON

CROFTON

Brian Houle, Manager, Environment P.O. Box 70 Crofton, B.C. V0R 1R0 250-246-6236

PORT ALBERNI

Larry Cross, Manager, Environment 4000 Stamp Avenue Port Alberni, B.C. V9Y 5J7 250-724-7889

POWELL RIVER

Sarah Barkowski, Manager, Environment 5775 Ash Avenue Powell River, B.C. V8A 4R3 604-483-2850

Designed and produced by smith + associateswww.smithandassoc.comPlease recycle

This report contains forward-looking statements. Forward-looking statements are statements, other than statements of historical fact, that address or discuss activities, events or developments that Catalyst Paper expects or anticipates may occur in the future. These forward-looking statements can be identified by the use of words such as “anticipate”, “could”, “expect”, “seek”, “may”, “likely”, “intend”, “will”, “believe” and similar expressions or the negative thereof. These forward-looking statements reflect management’s current views and are based on certain assumptions and factors management believes are appropriate in the circumstances, including assumptions that there will be no material change to the regulatory environment in which the company operates, capital budgeted for certain goals will be available, and existing relationships with stakeholders will be maintained. Such forward-looking statements are subject to risks and uncertainties and no assurance can be given that any of the events anticipated by such statements will occur nor, if they do occur, what benefit Catalyst will derive from them. No forward-looking statement is a guarantee of future results. A number of factors could cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements, including technological and regulatory changes, cost constraints, Catalyst’s ability to successfully obtain operational and environmental performance improvements, and other factors beyond its control. Catalyst disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

CONTACTINGCATALYST

READ MORE ONLINE Our annual financial report and sustainability summary foldout wrap for 2013 are available in the Investor Relations section of our website.
















1 2 3 4 5

THE BIG PICTURE:












RESOURCE USE



WOOD FIBRE P37

WATER P37


MAGAZINES

CATALOGUES

RETAIL INSERTS

BOOKS

BROCHURES

NEWSLETTERS

NEWSPAPERS

FLYERS

DIRECTORIES

DIRECT MAIL



SAFETY P25

EFFICIENCY P45


OUR PRODUCTS

ATE ONE DISTR


NANAIMO





RICHMOND


WATER QUALITY P37


AIR QUALITY P39

SOLID WASTE P39


INVESTORS

CREDITORS

GOVERNMENTS P19


FIRST NATIONS P19



IMPACTS + BENEFITS



2013LESS IS MORE








CROFTON


PORT ALBERNI


POWELL RIVER



CROFTON


PORT ALBERNI


POWELL RIVER




CONTACTINGCATALYST


2


LOOKING BACK:2013 HIGHLIGHTS

Catalyst’s new class ofCatalyst’s new class of common shares begancommon shares began

trading on the TSX undertrading on the TSX under the symbol CYTthe symbol CYT

For seventh straight year,For seventh straight year,Catalyst named by CorporateCatalyst named by Corporate

Knights as one of the 2013 BestKnights as one of the 2013 Best Corporate Citizens in CanadaCorporate Citizens in Canada

Our 2013 average greenhouse gasOur 2013 average greenhouse gasemissions of 149 kg COemissions of 149 kg CO2e per tonnee per tonne

of paper is among the lowestof paper is among the lowest in all of North Americain all of North America

Completion of recommendations toCompletion of recommendations togovernment for Ecosystem Basedgovernment for Ecosystem Based

Management in the Great Bear RainforestManagement in the Great Bear Rainforest

Certified Professional Accountants (CPA)Certified Professional Accountants (CPA)Small Cap Venture Award of ExcellenceSmall Cap Venture Award of Excellence

2013 Corporate Reporting Awards2013 Corporate Reporting Awards

Globe and Mail publisherGlobe and Mail publisher endorses Catalyst asendorses Catalyst asbenchmark supplierbenchmark supplier

Port Alberni mill marked 10 yearsPort Alberni mill marked 10 yearsas the supplier of coated mechanicalas the supplier of coated mechanical

paper for Rolling Stone Magazinepaper for Rolling Stone Magazine

3


EXECUTEoperational excellence in:

Employee safety

Cost efficiency

Productivity

Regulatory compliance

PRODUCEthe best paper products for current and new, niche markets and continue great product and market development

EXPLOREtransformative investments such as green energy and biofuel

GAINconfidence of financial markets and secure new capital for investment

CONTINUEcollaboration to advance sustainability

LOOKING AHEAD:2014 VISION + GOALS

1 2 3 4 5

4


OPPORTUNITYCONFIDENCEACTIONMESSAGE FROM THE PRESIDENT + CEO

5


We take waste materials from renewable forests and, using green energy in our modernized facilities, make some of British Columbia’s highest value-add forest products. We continue to lead in environmental and social performance, two of the core attributes of sustainability. And we have a clear line of sight on the importance of economic performance.

OUR PEOPLE DRIVE OUR SUCCESS As we strive to build upon the improved financial performance we achieved in the second half of 2013, and to sustain a cash positive position in 2014, there will be a number of groups monitoring our performance. As the new CEO, one of the critical audiences for me is employees – because our people drive our success. The Catalyst workforce has been through a tumultuous time and one of my most important jobs is to instil CONFIDENCE. A confident workforce BELIEVES in the future and takes ACTIONto secure that future. We have delivered the message to our employees that their

thoughts are both welcome and needed as we strive to improve cost competitiveness. By the end of 2013, we had received more than 200 ideas to optimize performance from across the company. These range from small gestures that will accrue long-term savings, to larger initiatives such as those achieved by reclaiming residual fibre from water destined for sewage discharge. We want to leverage employee innovation and skill to develop new products and explore transformative business options such as green energy or biofuel. And we want to run an operation that has world-class safety performance. Our objective is to create an upward spiral built upon success, which we look forward to sharing with you in next year’s report.

SUSTAINABILITY AS BUSINESS STRATEGY Catalyst’s impressive record on sustainability was a significant factor in my decision to join the company. Looking at our industry, I know that none of our peers’ sustainability programs are as

strong. From our partnerships with non-governmental organizations to our decades-long reporting record, from our emissions reduction to our safety initiatives, Catalyst is the leader. To retain that position, we will continue to embed social responsibility into business strategy, keeping it as the central tenet of our business proposition: LIGHTER IS BETTER, LESS IS MORE. This will require addressing a number of challenges.

Retaining our existing employees is a priority, especially in an increasingly competitive labour market. Given the demographics of our workforce, we also know we need to attract new workers. Current projections tell us that we will see 10 per cent of our workforce retiring every year for the next 10 years. This creates an opportunity for more than 150 new people to join Catalyst each year between now and 2024. We know our sustainability record makes us attractive. Where this might once have been an interesting sidebar to our story, today we see it as essential for attracting new talent.

When I came to Catalyst in late 2013, there were those who questioned why I would join an organization in a sector, considered by some, to be a sunset industry. To me, the answer was straight forward: I see a real opportunity for the company and its people.

I believe in the company and the people at Catalyst

+150Opportunity for more than 150 new

people to join Catalyst each year between now and 2024.

6


CHALLENGE + OPPORTUNITY A sustainable employee base is the most fundamental priority, yet we must also address other challenges. A number of global issues directly affect our business. We sell 100 per cent of our pulp and more than 20 per cent of the paper we produce offshore. This makes the global economy important, especially the economies of China and Latin America. In addition, we sell a large percentage of our printing and writing paper into the United States (U.S.), where we are seeing a continuing trend towards electronic substitution. As many of our sales are recorded in U.S. dollars, the American economy and exchange rates have a definite impact on our bottom line. And, excess paper production capacity in North America means it is essential that we be cost competitive and constantly pursuing better margin opportunities.

In British Columbia, where all of our operations are now located, we must grapple with rising BC Hydro rates, fibre supply constraints, and evolving compliance requirements. Operating in British Columbia means we pay carbon taxes above other jurisdictions. This tax – $30 per tonne of CO2 – adds over $5 per tonne of paper to our cost structure. Also of note, in the spring of 2014, British Columbia will introduce a water sustainability act, a regulation to the allocation of water rights that will, for the first time, impose fees for the use of groundwater and allow government to restrict water use in times of scarcity.

We recognize that in an increasingly competitive world, we need to continue to focus on those aspects of the business that have been working and continue efforts to address industry challenges. A year ago, our chances of success did not look promising. But after spending

five months in the company, I have a different view today. I believe in our people and the future of Catalyst Paper. This report details the accomplishments of 2013, the effort we have made to maintain our social licence to operate, to leverage that social licence for our competitive advantage, and to continue our record of environmental performance. At Catalyst, each of these initiatives contributes to operational efficiency and proves that WE CAN DO MORE WITH LESS.

The views of our stakeholders shape the issues on which we focus. Your comments, suggestions and questions are always welcome.


100%We sell 100 per cent of our pulp and more than 20 per cent of the paper we produce offshore.

7


20 YEARS OF SUSTAINABILITY

LEADERSHIP

8


OUR HISTORY:1993 TO 2013


1993

2012Catalyst joins forward-looking companies to establish the Council for Clean Capitalism, a group advocating policy change to ensure what is good for business is good for the environment and society

56%Fifty six per cent of fibre supply is certified from sustainably managed forests under Forest Stewardship Council (FSC) and Programme for the Endorsement of Forest Certification (PEFC)

Reduced reliance on fossil fuels and embraced use of renewable energy

More than $1 billion spent improving environmental control infrastructure at mills to achieve top quartile to top decile performance

$1billion

2013 absolute GHG emissions reduced 84 per cent from 1990 levels

Maintain active partnerships with WWF, ForestEthics, Greenpeace Canada, Sierra Club BC, GreenBlue, Canadian Business for Social Responsibility and Corporate Knights to help improve performance and tackle material global issues

Named for seven consecutive years by Corporate Knight as one of the Best 50 Corporate Citizens in Canada

Offer forest certified, carbon neutral paper products under the Sage brand

HERE’S TO THE NEXT 20 YEARS...

7years

90%renewables

HERE’S TO THE LAST 20 YEARS...

84%

9


Recommendations to achieve ecosystem-based management in the Great Bear

Rainforest were reached by the members of the Joint Solutions Project. Catalyst is a

founding member of this group. This work with Greenpeace, Sierra Club BC,

ForestEthics and other stakeholders to protect B.C.’s Great Bear Rainforest has

created a groundbreaking forest management template admired around the world.

JANUARY 2014 MILESTONE

}

10


56%of the fibre delivered to our Canadian mills was independently certified to one of the three main recognized third-party groups.

11


TODAY’S PAPER IS MADE RESPONSIBLY

For the same amount of printing surface, our lighter basis weight papers use less fibre to produce. That means less impact on resources, a smaller carbon footprint to transport and all the same benefits of printability, opacity, brightness and feel.

DENIS FORTIERManager, Product Development

12


One of my accountabilities is to ensure the reinvestment into our

facilities and employees creates a competitive advantage for Catalyst

in the global marketplace. This helps sustain our business while

strengthening the economies of local communities.

STEW GIBSONManager, Manufacturing

and Technical Services

13


LIGHTER IS BETTER, LESS IS MORE

22 daysWe agreed to hold back the water in Lake Cowichan and Cowichan

River by 22 days to conserve water and natural fish habitat.

14


90%of the energy used in our manufacturing processes comes from renewable hydroelectric power and biomass waste bark boiler fuel.

15


WASTE LESS

Getting our products to customers damage-free results in savings in time, resources, and in the manufacturing process, as well as reducing our transportation carbon footprint. It all adds up to less waste.

AVRIL LOFTGeneral ManagerSurrey Distribution Centre

16


PEOPLEOur workplace fosters problem solving

and forward thinking strategies that lead to positive results that both

improve business processes and environmental sustainability.

JOANNE BOUTILIERDistribution Supervisor

17


People and partnerships drive our success

With over 100 years of papermaking history, we are passionate about

our paper products and people. We recognize people are looking for

more than a job; they are looking for a career. We employ a range of

individuals with diverse personal and professional backgrounds that

help us manufacture 1.5 million tonnes of specialty printing papers,

newsprint and pulp for our customers around the globe.

CERTIFICATION RECOGNITION COLLABORATION

CouncilCLEANCAPITALISM

for

18


In British Columbia, where all of our operations are located, Catalyst injects $2 billion annually into the economy and supports 7,000 jobs 1. We operatein coastal communities, adjacent to First Nation lands, and in metropolitan centres. Government agencies regulate our environmental and safety performance. Stakeholders monitor our financial performance. Our supply chain reaches into communities in British Columbia, in Canada and abroad.

$2 billion1

Catalyst injects $2 billion annually into the economy.

1 Estimated using British Columbia Provincial Economic Multipliers (BC Stats) to include both direct and indirect benefits and jobs.

STAKEHOLDERENGAGEMENT

CORPORATE

EMPLOYEES

RETIREES

BOARD OF DIRECTORS

UNIONS

BANKS

BONDHOLDERSSHAREHOLDERS

COMMUNITY ORGANIZATIONS

MEDIA

ENVIRONMENTAL GROUPS

NON-PROFIT ORGANIZATIONS

INVESTORS

CIVIL SOCIETY

CROFTON

NANAIMO

PORT ALBERNI

POWELL RIVER

RICHMOND


19


5 continents

Our customers can be found on five continents, and our products pass through

the hands of people around the world.

7,0001

Catalyst supports 7,000 jobs.

GOVERNMENT

COMMERCIAL PRINTERS

PRINT ADVERTISERS(retail)

PUBLISHERSBooks (academic)Magazines (retail)News

TSESHAHT

SLIAMMON

COWICHAN TRIBES

PENELAKUT

HUPACASATH

HALALT

FEDERAL MPS

REGULATORSBC Ministry of EnvironmentSecurities CommissionBC Pension Corporation

MUNICIPALMayorsCouncils

PROVINCIALPremierBC Cabinet MinistersBC MLAs

ABORIGINAL

CUSTOMERS

FIBRE SUPPLIERS

INSURERS

BC HYDRO

SUPPLIERS + BUSINESS PARTNERS

20


Following controversy in the B.C. forest sector in the mid-1990s, Catalyst joined forces with other forest products companies and leading environmental groups to work collaboratively to devise a protection plan for the Great Bear Rainforest, one of the largest tracts of intact temperate rainforests in the world and an area renowned for its biodiversity.

The Joint Solutions Project (JSP) was formed in 2000 to collaborate on land use planning and technical analysis. It delivered key input for the 2006 and 2009 Great Bear Rainforest Agreements, subsequently endorsed by the B.C. government and the region’s First Nations. In January 2014, the JSP made a series of recommendations to the provincial government and First Nations for final implementation of the Agreements to ensure low ecological risk to the rainforest while supporting a viable economy for regional communities. Decisions as to whether the recommendations will be accepted rest with the provincial and First Nations governments.

NEW RULES FOR LOGGINGKey components of the conservation plan include designating one third of the region as protected areas

(2.1 million hectares) and implementing a new forest practice called Ecosystem Based Management (EBM). EBM is a science-informed, world-leading forest management regime that ensures the co-existence of healthy ecosystems and human communities. By definition, EBM is an adaptive process that evolves to reflect new understanding and knowledge. The forest products companies within JSP are also FSC-certified for part of their operations in the Great Bear Rainforest.

CONSERVATION TARGETSThe recommendations of the JSP, building on the conservation achieved to date, address the scope of future logging along B.C.’s central and north coasts, and increase the level of conservation by approximately 500,000 hectares to support

ecological “low risk”. The recommendations are part of a five-year implementation review of EBM and will now be evaluated by the Province, Nanwakolas Council and the Coastal First Nations – Great Bear Initiative, as well as 12 other First Nations who have traditional territories in the Great Bear Rainforest.

It is the hope of the Joint Solutions Project that the recommendations will be accepted (or equivalent provisions enacted) by decision-makers in the coming months in order to bring this long-running, solutions-oriented project to a successful conclusion all parties can be proud of.

PRESERVING THE GREAT BEAR RAINFOREST

For more information, please visit the Coast Forest Conservation Initiative at www.coastforestconservationinitiative.com

1/31/3 of the region in protected areas = 2.1 million hectares

Area the size of West Virginia

Some of the world’s richest ecosystems and home to the unique Spirit Bear

The 64,000 square kilometre Great Bear Rainforest is the traditional territory of 27 First

Nations and home to the Kermode, or Spirit Bear. 21


“Once fully implemented, the Great Bear Rainforest will be one of the most protected forest regions in the world. We are confident that we will be able to finalize outstanding steps to achieve our long-term goals of full ecosystem health and thriving local communities in the very near future.” JENS WIETING, SIERRA CLUB BC

“A vision born from environmental and economic necessity is becoming a reality on Canada’s west coast. It’s a conservation model that other parts of the world can look to and build on, a model that shows how protection of ecological values and enhancement of human well-being based on progressive social values can be advanced without undermining each other.” EDUARDO SOUSA, GREENPEACE

“If everyone remains committed to the goals and follows through, this astoundingly rich coastal ecosystem will continue to support iconic species like the Spirit Bear, the conservation of massive carbon storehouses in thousand-year-old trees and a bright future for the First Nations communities.” VALERIE LANGER, FORESTETHICS SOLUTIONS

22


As we reported last year, the challenge facing Catalyst is that about three-quarters of our workforce will retire in the next 10 years, a period of time when competition for skilled labour will remain high. In 2013, we launched initiatives focussed on succession planning and talent management, and retained external consultants to audit our recruitment process. In 2014, we will implement Opportunities for Improvement (OFI), giving employees an opportunity to provide their ideas for optimizing performance and reducing costs.

Three ways in which we will continue to attract talent

OUR RECORD OF SUSTAINABILITY PERFORMANCE:

Seven consecutive years on Corporate Knight’s Best 50 Corporate Citizens of Canada.

CREATING OPPORTUNITY AND CHALLENGE:

At Catalyst, employees can change careers while staying at the same company.

PROMOTING THE WEST COAST LIFESTYLE:

Whether you work in one of the coastal communities that host our mills or in Greater Vancouver at our head office or Surrey Distribution Centre, we live and work where most people want to vacation.

ENGAGING EMPLOYEES

Successful companies recognize that people are the cornerstone of success. At Catalyst, we strive to retain our existing employees and attract the best and brightest when making new hires. We had good success in 2013: hiring 178 new employees and improving on, or maintaining, employee engagement for four recognized indicators measured in our annual employee survey.

1 2 3

HOW CAN WE ATTRACT PEOPLE?enge facing Catalyst is that about three-quarters of our workforce will d of time when competition for skilled labour will remain high. In 2013,

hat cess. existingd

ing g on,

ment sured

EOPLE?

* Agree and strongly agree

51% 58% 49% 59%

49% 52%

Recommend Catalyst to a friend seeking employment

Tell others great things about working here

I rarely think of leaving to work elsewhere

STAY STRIVEAim to do my best

work every day

SAY

96% 96%

Catalyst Score 2013*Catalyst Score 2012

23


I pledge to always put safety before production and make sure that I look out for my colleagues.

TANNER MCQUARRIELabour Printing Papers

178Of 178 positions filled in 2013, 21 successful placements resulted from our employee referral program.

AGE CURVE OF EMPLOYEES

33

22

11

0

20-44Ages 45-49 50-54 55-59 60-69

Percentage of Salary Employees by Age 33 12 25 18 12

SALARY EMPLOYEES

Percentage of Hourly Employees by Age 26 12 24 28 10

SALARY EMPLOYEES

HOURLY EMPLOYEES AGE 40 + YOUNGER

91 :END OF 2011163 :END OF 2012 240 :END OF 2013

24


UNIONS + MEMBERSHIP(number of employees)

Canadian OperationsCanadian Office and Professional Employees Union 2

Unifor 807Pulp, Paper and Woodworkers of Canada 383Includes active employees at year-end.

TOTAL WORKFORCE:1,611 EMPLOYEESTOTAL PAYROLL:$183 MILLION

6.8% :201110.9% :20127.0% :2013

OVERALL TURNOVER

Turnover rate is the number of employees either retiring or voluntarily leaving employment during the year, as a percentage of the total Canadian workforce at the end of 2013.

TOTAL EMPLOYEES + PAYROLL

PayrollYear Workforce ($ millions)

2013 1,611 $ 1832012 1,592 $ 2062011 1,877 $ 2502010 1,803 $ 2462009 1,851 $ 247

Workforce figures are for active employees at year-end and exclude vacancies; payroll figures are inclusive of benefits and exclusive of restructuring costs (severance).

2011 2012

Retirement 3.5% 4.9% 3.7%

Voluntary Departure 1.9% 4.7% 2.6%

Total 5.4% 9.6% 6.3%

Retirement 5.2% 1.4% 2.2%

Voluntary Departure 5.2% 12.8% 6.8%

Total 10.4% 14.2% 9.0%

TURNOVER SUMMARY, CANADIAN WORKFORCE

HOURLY

SALARY

2011 2012 2013

2011 2012 2013

HUMAN RESOURCES DATA TABLES

U.S. SALES OFFICES 13 employees and $4 million

EMPLOYEES BY LOCATION(year-end 2013)

PAYROLL BY LOCATION(full year 2013)

74% OF CATALYST EMPLOYEES ARE REPRESENTED BY UNIONS

RCE:ES

CROFTON578 employees

$67 million 55 new employees

NANAIMO36 employees

$4 million 1 new employee

PORT ALBERNI324 employees

$36 million 43 new employees

POWELL RIVER441 employees $46 million 60 new employees

RICHMOND133 employees $19 million 8 new employees

SURREY DISTRIBUTION CENTRE86 employees $7 million 11 new employees

25


SAFETY BEST PRACTICEIn our 2013 survey, 95 per cent of employees confirmed their belief that working safely is a personal responsibility, and, while injury severity rates decreased in 2013, incidents requiring medical attention and lost time injuries remained too high. This tells us we need to continue to focus on fundamental safety values: preventing injuries and ensuring a safe workplace.

One facility where the safety performance has fully met expectations is the Surrey Distribution Centre (SDC). With 75 material handlers on lift trucks moving loads of up to four metric tonnes, there is potential for serious injury; yet, the SDC

team has had no lost time injuries for over 14 months. In 2013, the SDC team introduced an annual safety and best practices workshop attended by every hourly worker. Each session had a maximum of eight participants, and these small groups allowed each employee’s comments to be heard. The workshops covered Occupational Health and Safety (OHS) regulations, safety values and policies, injury identification and trends, as well as an analysis of current work practices and opportunities for improvement. The workshops were well received and yielded many suggestions that have been implemented.

INJURIES

2011: 2.412012: 2.532013: 2.38

PULP + PAPER INDUSTRY AVERAGE MI RATES

HOW OFTEN

6

4

2

0

09 10 11 12 13

MIs per 200,000 Hours Worked 4.28 5.09 4.15 4.04 3.842013 Target: 2.18

LTIs per 200,000 Hours Worked 2.11 2.71 1.73 1.71 1.392013 Target: 1.12

HOW MANY

140

100

60

20

09 10 11 12 13

Number of Incidents Requiring Medical Attention(MIs) 81 90 72 73 612013 Target: 33

Number of Incidents Resulting in Lost Time From Work(LTIs) 40 48 30 31 222013 Target: 17

HOW SEVERE

180

140

100

60

09 10 11 12 13

Average Number of Work Days Lost Due to Injuries 157.5 112.9 171.0 94.9 83.42013 Target: 51.0

Prior-year figures have been updated to reflect post year-end adjustments, including injuries that resulted in missed work on a delayed basis due to longer term injury progression or surgical wait times.

At the SDC, flashing blue and red lights serve as communication between tuggers

and pickers to signify occupation of a high traffic aisle, eliminating the risk

for injury caused by collision.

26


At Catalyst, we collaborate with the regions that host our operations, investing in people and contributing to healthy and sustainable communities. In 2013, our operations injected (directly and indirectly) $2 billion to the provincial economy and supported 7,000 jobs.

All operations actively pursue opportunities to create local shared value through initiatives such as cooperation and capacity building protocols with the Tla’amin First Nation, and the sale of non-core assets. In 2013, we sold our wastewater treatment facility to the City of Port Alberni for $5.8 million. The sale included the 13.4-hectare wastewater treatment facility and a 3.9-hectare parcel of land for an industrial truck route along the waterfront.

Our employees live in the communities where they work. From donations to in-kind contributions and volunteer service, we are proud of the efforts they make to weave Catalyst into the fibre of the community. In 2013, Catalyst and its employees raised or donated $136,000 to a variety programs, including youth organizations and community groups. We also provide scholarships for study at the University of British Columbia and the British Columbia Institute of Technology, and support the co-op work program at California Polytechnic State University and the University of Victoria.

CREATING COMMUNITY VALUE

TO SUPPORT CONTINUOUS IMPROVEMENT, WE TRACK COMPLAINTS FROM OUR NEIGHBOURS We track complaints, by source, location and time of year, to help optimize our operations and understand any impacts we might have on our neighbours.

TOTAL COMPLAINTS BY SITE

2013 Odour Noise Particulate Other* Total

Port Alberni 2 5 0 0 7

Crofton 7 1 5 3 16

Powell River 12 7 0 19 38

TOTAL 21 13 5 22 61

*Includes concerns that proved not to be associated with mill operations.

404.5

80.7

80.0

TOTAL SPENDING WITH B.C. VENDORS($ million)

LOWER MAINLAND

VANCOUVER ISLAND

REST OF B.C.

TOTAL $565.2

27


In Port Alberni, scrap metal from the Catalyst mill will find new life in local sculptor Kevin Wright’s uptown industrial art project. Wright, who owns the SteamPunk Café and Coffee House, described the donation as “priceless” (photo courtesy of Julie Bertrand, Alberni Valley Times).

To conserve natural habitat for wildlife and recreation, Catalyst employees from all three mills, the Surrey Distribution Centre, and Richmond head office participated in the 2013 Great Canadian Shoreline Cleanup events in their community. The efforts support a conservation initiative of the Vancouver Aquarium and the World Wildlife Fund of Canada.

Congratulations to the Powell River Peak. The newspaper’s special section “100 Years of Papermaking” finished second in the Canadian Community Newspaper Association Better Newspapers Awards.

ipated in the 2013 Great Canadian line Cleanup events in their

munity. The efforts support a rvation initiative of the Vancouver rium and the World Wildlifeof Canada.

Newspaper Association Better Newspapers Awards.

28


PAPER

29


Catalyst is the largest producer of mechanical printing papers in western North America

OUR BUSINESS IS COMPRISED OF THREE SEGMENTS

Specialty printing papers, including coated mechanical, uncoated mechanical and directory paper

Newsprint

NBSK pulp, marketed primarily in Asia

OUR FOCUSExpanding geographic reach of Catalyst Paper into emerging world markets of Latin America and Asia.

Gaining market share and expanding sales in new markets with new products.

Increasing our product range and solidifying our position as the most flexible and diverse producer and marketer of paper in the West.

OUR HIGHLIGHTS Increased market share in both coated and newsprint and maintained market share in uncoated paper.

Pulp sales maintained focus on freight logical Asian markets.

Matched orders and production to keep paper machines running at capacity.

Successfully launched Ascent, coated three grade paper.

Increased sales of Marathon Lite 40 gsm newsprint, offering cost savings and environmental advantages while maintaining the performance of a heavier sheet.

Increased sales to strategic Latin American customers.

1

2

3

coastaltrees

lumber for typical family home

10 tonnes of paper

enough derivedelectricity to power the same family home for six months

45 = + +

30


SAGENoun: someone venerated for the possession of wisdom, judgment, and experience. Adjective: wise, judicious, or prudent.

When we launched Sage, the greenest of our specialty papers and one that embodies our decades-long commitment to environmental sustainability practices, our objective was to create a product that would set the industry standard for environmentally responsible paper manufacturing. To accomplish this goal, we knew Sage paper would have to offer the highest quality, reliability and

excellent press performance. We also wanted to ensure it offered a verifiable environmental pedigree and chain-of-custody system.

In 2013, three years after introduction, sales of Sage were almost 70,000 tonnes. Our top five Sage customers, which includes Rolling Stone Magazine, represent 77 per cent of total Sage sales; Sage sales are 11 per cent of all specialty

paper sales and six per cent of total paper sales, proving the paper delivers on its promise and that there is room for continued growth.

We are proud to produce a product that embodies our holistic sustainability philosophy: doing well by managing resource consumption, emissions footprint, and social impacts while generating and distributing economic value.

BEING SAGE ABOUT SUSTAINABILITY

31


THE SAGE WAY:INFORMED CHOICES, HAPPIER STAKEHOLDERS, HEALTHIER PLANET

100 per cent fibre from sustainably well managed forests in the Pacific North West

SFI*, PEFC or FSC chain of custody labeling

Manufactured carbon neutral using standards set by the International Organization for Standardization (ISO) and a diverse basket of certified carbon offsets

90 per cent of the energy used to make Sage papers is renewable – such as hydroelectric power and waste bark energy sources – limiting greenhouse gases

Produced in some of North America’s cleanest, low impact paper mills with state-of-the-art air and wastewater treatment systems

Transparency provided through GreenBlue’s Environmental Paper Assessment Tool (EPAT)

Light weight paper grades with excellent printability and run-ability saves our customers time and money

$1 per Sage tonne sold goes to support our partners’ sustainability initiatives

* Sustainable Forestry Initiative, www.sfiprogram.org

32


PERFORMANCEDID YOU KNOWWe have been able to reduce the weight of our paper by 10-15 per cent

without losing opacity? The resulting weight-to-cost savings in postage

and distribution efficiencies help reduce our customers’ carbon footprint.

33


The views of stakeholders inform our sustainability approach. We use a variety of methods and mediums to hear – and learn – from stakeholders. From employee surveys to quarterly investor

calls, from one-to-one meetings with elected officials and regulators to community advisory panels, from media tracking and analysis to participation in industry events and committees, and

from environmental audits and a detailed risk register to Board of Director reports and electronic feedback mechanisms, a list of interests common to stakeholders and Catalyst’s business strategy evolved.

MATERIALITY ISSUES + INTERESTS

CONSUMPTION + CONSERVATION

PUBLIC POLICY

RENEWABLES /RECYCLABLES

MARKET SHARE + PRODUCT

FINANCIAL PERFORMANCE

COLLABORATION

EMISSIONSINNOVATION

CARBON FOOTPRINT/ ENERGY

HEALTH + SAFETY

COMPLIANCE

ECONOMIC VALUE GENERATED + DISTRIBUTED (EVG+D)

COMPLIANCE

ENVIRONMENTAL

ECONOMIC

SOCIAL

34


At each of our mills, performance improvements addressed local interests and issues identified by annual performance audits and our ISO 14000 systems.

POWELL RIVER• In 2012, elevated GHG emissions were

one of the byproducts from the startup of the G12 project that increased power generation at the site. The mill identified the higher-than-expected natural gas usage and undertook performance improvements in the operating strategy of the mill’s hog fuel fired power boiler, changes that saw GHG emissions return to more normal levels in 2013 from the year previously.

• To improve the robustness of the wastewater collection system, the mill installed a series of standby diesel power generators at strategic lift stations around the mill’s effluent handling system to further improve the backup power supply to these pumps.

• The mill operates under the most stringent BOD limits set by the provincial Ministry of Environment, which are significantly lower than any other pulp or paper mill in the province. The tight discharge limits are just within the capability of the mill’s effluent treatment system, so the company is exploring a number of options to provide a wider operating window for current and future operations.

• In October, the new fully engineered landfill at Powell River began receiving waste sand and flyash from the mill’s power boiler and other miscellaneous material from the mill.

CROFTON• Crofton has the province’s most

stringent chlorine dioxide emission limits since an amendment limiting its A and B bleach plant stack emissions to 10 parts per million (ppm) was implemented. In 2013, to improve the mill’s performance, an innovative new process was started that combines odorous pulping gases and bleach plant emissions, causing the elimination of both streams. The system is scheduled for completion and startup in Q2 2014.

• The mill achieved a 17 per cent reduction in absolute GHG emissions from 2012 levels.

• Routine monitoring of landfill groundwater detected levels of salt water (sodium chloride) which our independent engineering experts attributed to seawater infiltration. Based on their suggestions, we undertook testing of groundwater from seven residential wells in the area in August 2013, which showed no detectable salt levels. By the end of Q2 2014, the mill will install an additional test well in the area to confirm seawater infiltration as the source.

• Dry weather dust generation on the active wood ash landfill can be problematic. In 2013, we implemented a new operation strategy for dust suppression, which includes modifying waste hauling methods to prevent dust from becoming airborne during dry summer months.

PORT ALBERNI• In 2013, the mill was 100 per cent

permit compliant.

• The air system for the #4 power boiler, which burns hog fuel/biomass with low natural gas use, was upgraded to improve combustion control and boiler efficiency. Annual power boiler dioxin test results showed 0.05 ng/m3 (low) versus Canada Wide Standard 0.5 (or 0.1 for new boilers).

• Continued high production in our chemithermomechanical pulping (CTMP) plant required increased use of cold water to control the effluent temperature going to the biological treatment system. This increased overall mill water use in 2013.

OUR MILL HIGHLIGHTS

APER 2013 SUSTAINABILITY REPORT

35


VALUE DISTRIBUTED ($ millions)

“Taxes” include property taxes, B.C. carbon tax.“Benefits” include employer contributions to pension and other benefit plans.

GOVERNMENTS, CREDITORS,

SHAREHOLDERS

SUPPLIERS + BUSINESS PARTNERS

EMPLOYEES + SOCIETY

GOVERNMENTS (TAXES)Total: $27

EMPLOYEES (WAGES + BENEFITS)Canada: $179 U.S.: $4

Total: $183

SOCIETY (DONATIONS)

Total: $0.13

FIBRE + OTHER RAW MATERIALSTotal: $289

CAPITAL PROJECTSTotal: $23

ENERGYTotal: $185

OTHER PURCHASESCanada: $355 U.S.: $1Total: $356

CREDITORS (INTEREST PAYMENTS)Total: $37

SHAREHOLDERS

TOTAL DIRECT VALUE

DISTRIBUTED$1,100

36

RAIL (tonnes/car)

TRUCK (tonnes/truck)

CONTAINER (% utilized)


RESPONSIBLE OPERATIONS MEASURE PERFORMANCE

DISTRIBUTION YIELD BY MODE

The reduction in truck yield was a function of destination mix and road limits.

09 10 11 12 13

Customer Complaints Received 1,111 992 1,642 1,576 1,323

Claims Paid ($ millions) 1.35 1.42 2.12 1.50 1.15

CUSTOMERS(complaints received)

1800

1200

600

0

2.4

1.6

0.8

0

(claims paid, $ millions)

1 Active at December 31, 2013.2 Includes provincial levies.3 Includes only vendors with addresses in the local municipality

(restricted to Crofton/Chemainus in the case of Crofton).

(excludes closed operations and U.S. sales offices)

CROFTONJobs1 578Wages + Benefits ($ millions) $67Local Property Taxes2 ($ millions) $4Spending with Local Vendors3 ($ millions) $12

PORT ALBERNIJobs1 324Wages + Benefits ($ millions) $36Local Property Taxes2 ($ millions) $4Spending with Local Vendors3 ($ millions) $10

POWELL RIVERJobs1 441Wages + Benefits ($ millions) $46Local Property Taxes2 ($ millions) $3Spending with Local Vendors3 ($ millions) $8

NANAIMOJobs1 36Wages + Benefits ($ millions) $4Spending with Local Vendors3 ($ millions) $45

RICHMONDJobs1 133Wages + Benefits ($ millions) $19Spending with Local Vendors3 ($ millions) $26

SURREYJobs1 86Wages + Benefits ($ millions) $7Spending with Local Vendors3 ($ millions) $46

MOVING PRODUCT TO MARKET

100%Port Alberni: 100 per cent

permit compliance

2013 2012 2011 2010 2009

75.7 74.4 74.0 73.4 73.6

25.6 26.1 26.3 26.7 26.3

98.1 98.2 97.4 96.8 97.0

COMMUNITY BENEFITS

37Highlights• 56 percent of fibre deliveries to mills

FSC and PEFC certified

• Continued to voluntarily report to the Forest Footprint Disclosure Project (www.forestdisclosure.com) on fibre use

• In 2013, we joined the Sustainable Forestry Initiative (SFI). The SFI program’s unique fibre sourcing requirements promote responsible forest management on all suppliers’ lands


Highlights• Water use was virtually identical to

2012. This is attributable to reductions at Crofton which were offset by small increases at Powell River and Port Alberni. Port Alberni saw high production in its CTMP plant which required increased use of cold waterto control the temperature of effluent going to biological treatment.

Consistent with standard industry practice, we track our water use based on treated effluent discharges.

adt – Air-dried tonnes of product

1 Certified fibre breakdowns are based on percentages of certified raw fibre delivered during the year, applied to mill usages. Does not include certified purchased pulps.

TOTAL WATER DISCHARGES(million m3/year)

130

100

70

40

90

80

70

60

(m3/adt)

09 10 11 12 13

Absolute (million m3/year) 93 106 109 106 106

Intensity (m3/adt) 67 77 76 73 74

88

12

FIBRE USAGE BY TYPE(% 2013)

SAWMILL WOOD CHIPS

PULP LOGS

FIBRE CERTIFICATION 1

(% 2013)

PEFC CERTIFIED VIRGIN FIBRE

UNCERTIFIED FIBRE

FSC VIRGIN FIBRE

1

55

44

58

38

4

FIBRE ORIGIN (CHIPS + LOGS)(% 2013)

B.C. COAST

B.C. INTERIOR

U.S. PACIFIC NORTHWEST

WOOD FIBRE WATER

38

Electricity Sales (Powell River)

97,270 MWh

FOSSIL FUELS

ELECTRICAL ENERGY

BIOMASS FUELS

66100% Renewable

2692% Renewable

8

Corporate WideTotal Energy Use: 40.7 Million GJ

Intensity (28.2 GJ/adt){90% TOTAL RENEWABLE

ENERGY MIX + RENEWABILITYBreakdowns based on net energy use and accounting for use of some fuel energy to self-generate electricity.

(% 2013)

The shaded portion above represents renewable fuels (biomass); the rest is fossil fuels.


The shaded portion above represents self-generated electricity; the rest is purchased.

Highlights• Port Alberni recorded the highest

renewable energy content in the mill’s history with 91 per cent of energy consumed coming from renewables

• Powell River returns renewable content to 93 per cent following a poor result in 2012, attributable to startup of the power generator project

45

30

15

0

45

30

15

0

Absolute (million GJ/year) 19.6 26.4 29.3 31.8 30.1

Intensity (GJ/adt) 19 19 20 22 21

TOTAL FUEL ENERGY USE(millions of GJ/year) (GJ/adt)

09 10 11 12 13

TOTAL ELECTRICITY USE(millions of MWh/year)

4.5

3.0

1.5

0

4.5

3.0

1.5

0

(MWh/adt)

Absolute (million MWh/year) 3.5 3.5 3.6 3.6 3.5

Intensity (MWh/adt) 2.5 2.6 2.5 2.4 2.4

09 10 11 12 13

ENERGY


39


Highlights• First use of the expanded fully

engineered landfill at Powell River

• Crofton was successful in controlling landfill dust by modifying their ash hauling process

TOTAL PARTICULATE(tonnes/year)

600

400

200

0

0.9

0.6

0.3

0

(kg/adt)

09 10 11 12 13

Absolute (tonnes/year) 243 480 408 467 464

Intensity (kg/adt) 0.17 0.35 0.28 0.32 0.32

TOTAL WASTE GENERATIONDisposition

Weight (t) % Landfilled % Recycled or other

Flyash 41,902 100% 0%Grate ash, sand 1 14,102 100% 0%Dregs & grits 14,808 100% 0%Scrap metal 626 0% 100%Waste oil 197 0% 100%Effluent treatment sludges 74,864 0.6% 99.4% 2

Paper residuals 469 0% 100%Other/miscellaneous 2,777 100% 0%

Total 149,745 50% 50%

1 Powell River set up an internal reuse process for sand (used in power boilers) in late 2011. It had previously been sent offsite to a waste management company and a portion was recycled and a portion returned to the mill for reuse. The remaining waste material is sent to the landfill.

2 Incineration (energy recovery).

Includes all waste generated at Catalyst’s operating production facilities.

SOLID WASTE TO LANDFILL(thousands of m3/year)

150

100

50

0

.09

.06

.03

0

(m3/adt)

Absolute (thousands of m3/year) 85.8 72.3 83.4 84.3 85.8

Intensity (m3/adt) 0.06 0.05 0.06 0.06 0.06

09 10 11 12 13


All figures based on actual test results; NPRI data (see page 47) may differ because it uses emission factors and can include other sources.


AIR PARTICULATE SOLID WASTE

40


2013 GHGS BY SCOPE (Tonnes CO2e)

GHG emissions (Scopes 1 and 2) are reported based on measurement and calculation methodologies consistent with the ISO 14064-1 standard and with the World Resources Institute / World Business Council for Sustainable Development Greenhouse Gas Protocol. While these are among the most widely applied methodologies globally, they differ from those specified for the purposes of separate reporting to the British Columbia provincial government. Scope 3 emissions are estimated with reference to supply-chain research conducted in cooperation with the University of British Columbia and World Wildlife Fund of Canada.

RAW MATERIALS(chips, logs, biomass fuel)

GHGs associated with the production and transportation to us of key raw materials (scope 3, estimated)

MANUFACTURINGGHGs produced directly by our operations (scope 1) and associated with purchased electricity (scope 2)

CATALYST PRODUCTSGHGs associated with transportation of our products to customers (scope 3, estimated)

360

240

120

0

360

240

120

0

Absolute (thousand tonnes CO2e/year) 213 204 217 289 215

Intensity (kg CO2e/adt) 153 148 151 169 149

DIRECT GHG EMISSIONS (SCOPE 1)Canadian operations only.

(thousand tonnes CO2e/year)(paper only)

(kg CO2e/adt)

09 10 11 12 13

1990 Baseline = 5741990 Baseline = 1,383

INDIRECT GHG EMISSIONS (SCOPE 2)Canadian operations only.

(thousand tonnes CO2e/year)

150

100

50

0

60

40

20

0

(kg CO2e/adt)

09 10 11* 12* 13

Absolute (thousand tonnes CO2e/year)78 69 29 27 27

Intensity (kg CO2e/adt) 56 50 20 18 18

Highlights• Port Alberni’s GHG emissions

of 92 kg CO2e per tonne of paper is one of the lowest in North America’s paper sector

• Powell River saw a 47 per cent reduction in absolute GHGs from 2012

• Our 2013 average GHG emissions of 149 kg CO2e per tonne of paper is amongst the lowest in all of North America in the paper sector

• The closure of our Snowflake facility in 2012 resulted in an elimination of 589,000 tonnes per year in carbon emissions

* Revised BC Hydro estimates of 9 kg CO 2e/MWh

CARBON FOOTPRINT

144,483 tonnesSCOPE 3Harvesting & Sawmilling

35,832 tonnesSCOPE 3

Transport to Catalyst


70,074 tonnesSCOPE 3Transport to Customers


41


THE RESULTS:ENVIRONMENTAL DATAHistorical figures represent Canadian operations only.

42


QUALITY PERFORMANCE

WATER

AIR

Environmental metrics are shown in both absolute (amount per year) and intensity (amount per day or per tonne of production) terms.

TOTAL SULPHUR OXIDES 3

(thousands of tonnes/year)

7.5

5.0

2.5

0

3.6

2.4

1.2

0

(kg/adt)

Absolute (thousands of tonnes/year)1.1 2.2 2.5 2.3 3.1

Intensity (kg/adt) 0.8 1.6 1.7 1.6 2.1

09 10 11 12 13

TOTAL TSS – TOTAL SUSPENDED SOLIDS(thousands of tonnes/year)

6

4

2

0

2.4

1.6

0.8

0

(kg/adt)

Absolute (thousands of tonnes/year)1.6 1.9 1.9 2.0 2.3

Intensity (kg/adt) 1.2 1.4 1.3 1.4 1.6

09 10 11 12 13

TOTAL AOX 1 – ADSORBABLE ORGANIC HALIDES(tonnes/year)

360

240

120

0

0.9

0.6

0.3

0

(kg/adt)


Intensity (kg/adt) 0.46 0.39 0.40 0.39 0.44

09 10 11 12 13

adt – Air-dried tonnes of product1 Relevant at Crofton only

2 2013 BOD discharges from Crofton were elevated compared to past years. The mill is actively investigating the cause.

TOTAL BOD 2 – BIOCHEMICAL OXYGEN DEMAND(thousands of tonnes/year)

3

2

1

0

0.9

0.6

0.3

0

(kg/adt)

Absolute (thousands of tonnes/year) 0.6 0.6 1.0 1.0 1.2

Intensity (kg/adt) 0.35 0.39 0.57 0.58 0.81

09 10 11 12 13

TOTAL DIOXIN AND FURAN RELEASES 3

(grams/year)

90

60

30

0

0.03

0.02

0.01

0

(mg/adt)

Absolute (grams/year)20.0 26.3 41.2 27.8 20.2

Intensity (mg/adt) 0.019 0.029 0.019 0.019 0.014

09 10 11 12 13

Results are heavily influenced by factors such as operating conditions and fuel characteristics and are often highly variable. All operation-specific emissions in 2013 were below a 0.1 ng/m3 TEQ Canadian federal standard applicable to power boilers installed since 2001 (even though all Catalyst boilers predate 2001).

3 All figures based on actual test results; NPRI data (see page 47) may differ because it uses emission factors and includes other sources.

adt – Air-dried tonnes of product TEQ – Dioxin equivalent units

Relevant at Crofton only.

TOTAL TRS 3 – TOTAL REDUCED SULPHUR(tonnes/year)

240

160

80

0

0.3

0.2

0.1

0

(kg/adt)


Intensity (kg/adt) 0.16 0.20 0.23 0.20 0.21

09 10 11 12 13

See discussion of operation-specific results on page 43.

43


AIR EMISSIONS (BY MILL)

1 Crofton’s SO2 emissions were up compared to past year. The mill is currently investigating the recovery boilers as a cause.

2 There are multiple sources of particulates and ambient levels do not necessarily correlate closely.

3 Powell River’s carbon footprint is substantially lower than 2012 due to reduced natural gas firing in PB19 in 2013.

adt – Air-dried tonnes of product ng – Nanogram PM – Particulate matter TEQ – Dioxin equivalent units ug – Microgram

A complete glossary of terms and definitions is available at www.catalystpaper.com/ products/glossary.

2013 2012 2011 2010 2009

CroftonTotal GHGs as kg CO2e/year (scope 1/direct) 135,050,000 162,266,000 139,466,000 140,582,000 112,063,000Total GHGs as kg CO2e/adt (scope 1/direct) 196 236 205 236 242Total GHGs as kg CO2e/year (scope 2/indirect) 9,419,000 9,456,000 10,159,000 29,845,000 29,382,000 Total GHGs as kg CO2e/adt (scope 2/indirect) 14 14 15 50 63Particulate matter kg/day 1,180 1,120 1,085 1,280 565Particulate matter kg/adt 0.61 0.56 0.54 0.78 0.43Sulphur Oxides kg/day 1 6,882 5,436 5,935 5,331 2,329Sulphur Oxides kg/adt 3.65 2.76 3.00 3.24 1.79TRS kg/day 212 214 249 166 115TRS kg/adt 0.210 0.200 0.230 0.197 0.164Power Boiler dioxin ng/m3 TEQ 0.02 0.01 0.03 0.03 0.02Ambient TRS % compliance A level 24 hr average 84.9 80.0 84.5 95.3 97.3Ambient PM 2.5 average, ug/m3 2 4.2 7.5 4.5 4.8 4.8

Port AlberniTotal GHGs as kg CO2e/year (scope 1/direct) 28,693,000 28,771,000 35,490,000 39,699,000 37,988,000Total GHGs as kg CO2e/adt (scope 1/direct) 92 89 114 126 130Total GHGs as kg CO2e/year (scope 2/indirect) 6,499,000 6,844,000 6,770,000 22,037,000 19,554,000 Total GHGs as kg CO2e/adt (scope 2/indirect) 21 21 22 70 67Particulate matter kg/day 21 23 20 28 32Particulate matter kg/adt 0.024 0.025 0.021 0.030 0.036Sulphur Oxides kg/day 512 427 554 526 484Sulphur Oxides kg/adt 0.59 0.46 0.60 0.56 0.54Power Boiler dioxin ng/m3 TEQ 0.05 0.03 0.03 0.07 0.09Ambient PM 2.5 average, ug/m3 2 8.1 6.3 7.9 – –

Powell River Total GHGs as kg CO2e/year (scope 1/direct) 3 51,379,000 97,470,000 42,166,000 23,694,000 42,116,000Total GHGs as kg CO2e/adt manufactured

paper (scope 1/direct) 3

97 126 95 51 92

Total GHGs as kg CO2e/MWh sold electricity(scope 1/direct)

100 351 N/A N/A N/A

Total GHGs as kg CO2e/year (scope 2/indirect) 10,765,000 10,497,000 11,239,000 17,312,000 23,505,000Total GHGs as kg CO2e/adt (scope 2/indirect) 24 23 25 37 51Particulate matter kg/day 69.5 138 13.1 7.3 54Particulate matter kg/adt 0.05 0.4 0.01 0.01 0.04Sulphur Oxides kg/day 365 452 302 134 313Sulphur Oxides kg/adt 0.268 0.347 0.233 0.103 0.242Power Boiler dioxin ng/m3 TEQ 0.18 0.02 0.05 0.02 0.07Ambient TRS % compliance A level 24 hr average 95.1 97.8 98.9 93.4 94.2Ambient PM 2.5 average, ug/m3 2 1.8 1.5 1.5 1.9 2.5

44


EFFLUENT (BY MILL)

2013 2012 2011 2010 2009

CroftonTSS kg/day 3,541 3,045 2,889 2,259 1,373TSS kg/adt 1.9 1.7 1.6 1.4 0.9BOD kg/day 1 1,850 1,464 1,726 831 530BOD kg/adt 0.98 0.78 0.92 0.51 0.44AOX kg/day 446 396 403 321 322AOX kg/adt pulp 0.41 0.32 0.33 0.32 0.462378TCDD ppq n/d n/d n/d n/d n/d2378TCDF ppq n/d n/d n/d n/d n/dTrout toxicity % compliance 95 96 94 100 100

Port AlberniTSS kg/day 2 905 693 412 414 380TSS kg/adt 1.1 0.8 0.5 0.5 0.5BOD kg/day 2 410 410 280 270 190BOD kg/adt 0.48 0.46 0.33 0.31 0.23Trout toxicity % compliance 100 100 100 100 100

Powell RiverTSS kg/day 1,909 1,822 1,885 1,718 1,483TSS kg/adt 1.6 1.5 1.5 1.4 1.0BOD kg/day 3 956 786 705 661 652BOD kg/adt 0.79 0.63 0.57 0.52 0.44Trout toxicity % compliance 98 98 94 98 98

1 Crofton’s daily BOD loading has increased compared to past years and the mill is actively investigating the cause.2 Total suspended solids (TSS) at Port Alberni increased to 905 kg/day from 693 kg/day in 2012. Following the sale of the mill’s water treatment lagoon

to the City of Port Alberni, the mill is using a smaller plant. While this resulted in increased TSS numbers, sale of the lagoon will result in significant improvement to municipal wastewater treatment and a reduction in TSS and BOD discharges into the environment, an offset to the TSS increase. The mill remains in full compliance with its permits.

3 Powell River continues to work on improving the performance of the wastewater treatment facility.

adt – Air-dried tonnes of product n/d – Non-detectable (test result below two parts per quadrillion) 2378TCDD, 2378TCDF – Specific dioxin and furan congeners in waste water

A complete glossary of terms and definitions is available at www.catalystpaper.com/products/glossary.

SOLID WASTE TO LANDFILL (BY MILL)

(cubic metres per air-dried tonne) 2013 2012 2011 2010 2009

Crofton 0.058 0.056 0.054 0.060 0.059Port Alberni 0.084 0.083 0.100 0.072 0.074Powell River 0.044 0.042 0.035 0.025 0.028

EFFLUENT + SOLID WASTE

45


2013 2012 2011 2010 2009

CroftonWater use m3/adt 74 76 79 85 71Fuel energy usage GJ 17,526,544 18,216,179 17,904,394 15,593,050 8,395,893Fuel energy intensity GJ/adt 25.45 26.45 26.19 26.13 18.10Electricity usage MWh 1,349,254 1,341,168 1,349,631 1,248,957 1,135,131Electricity intensity MWh/adt 1.96 1.95 1.98 1.77 2.26Total energy usage excluding self-generated

electricity GJ 21,294,113 21,998,426 21,967,887 19,389,570 12,173,632

Total energy intensity excluding self-generated electricity GJ/adt

30.92 31.94 32.22 32.49 26.25

Port AlberniWater use m3/adt 1 76 66 69 72 78Fuel energy usage GJ 4,625,290 4,654,171 4,796,691 4,629,396 4,475,620Fuel energy intensity GJ/adt 14.80 14.35 15.34 14.66 15.34Electricity usage MWh 800,198 837,768 823,184 843,236 742,641Electricity intensity MWh/adt 2.56 2.58 2.63 2.67 2.55Total energy usage excluding self-generated

electricity GJ 7,224,886 7,391,672 7,504,517 7,462,787 6,989,651


23.11 22.80 24.00 23.64 23.96

Powell RiverWater use m3/adt 73 72 75 71 73Fuel energy usage GJ 7,720,566 8,968,754 6,642,139 6,187,485 5,947,653Fuel energy intensity GJ/adt 2 17.41 20.08 14.99 13.37 12.96Electricity usage MWh 1,378,152 1,371,250 1,386,901 1,421,458 1,414,846Electricity intensity MWh/adt 3.11 3.07 3.13 3.07 3.08Total energy usage excluding self-generated

electricity GJ 12,026,436 13,167,571 11,137,715 10,904,853 10,646,636


27.12 29.48 25.13 23.57 23.19

1 Water use increased in 2013 over 2012. This was attributable to continued high production in the CTMP plant at Port Alberni, which required increased use of cold water to control the temperature of effluent going to biological treatment.

2 Powell River’s fuel energy intensity is substantially lower due to reduced natural gas firing in PB19 in 2013.

adt – Air-dried tonnes of product GJ – Gigajoules MWh – Megawatt-hours

Fuel energy measures include all purchased fuels and self-generated biomass (black liquor); electricity measures include all purchased and self-generated electricity.


WATER + ENERGY USE (BY MILL)

46


TOTAL KEY MATERIALS USED AS TONNES (CORPORATE WIDE) 1

2013 2012 2011 2010 2009

Water 2 142,826,856 159,570,826 142,416,387 141,164,553 132,107,490Wood chips and pulping logs 1,663,248 1,673,561 1,652,199 1,558,187 1,094,795Hog fuel 744,787 748,813 680,023 682,279 606,871Precipitated Calcium Carbonate 109,927 117,457 123,651 122,468 119,825Clay 63,341 75,289 75,307 64,692 60,129Fossil fuels 3 61,307 309,339 407,176 407,749 337,250Oxygen 57,704 55,919 57,832 62,432 46,282Sodium Hydroxide 27,784 30,126 30,803 30,764 23,084Sodium Chlorate 17,843 17,552 18,425 16,208 5,730Hydrogen Peroxide 14,577 17,927 17,911 18,143 21,928Sulphuric Acid 13,490 15,611 15,593 13,605 7,387Starch 8,998 10,933 10,566 9,826 10,137Sulphur Dioxide 8,464 8,691 8,589 9,079 10,460Silicate 6,757 10,533 11,217 11,599 16,562

1 Includes Snowflake.2 Water use figures in this table include treated effluent, as well as discharges of cooling and storm water; consistent with standard

industry practice, water use as shown in the key facts and figures (and as used to calculate water-use intensity) includes only treated effluent.

3 Fossil fuels are also reported as gigajoules of heating value on page 38.


PRODUCTION (BY MILL)

(tonnes of product) 2013 2012 2011 2010 2009

Crofton 688,774 688,722 681,910 596,752 463,782Elk Falls (closed operation) – – – – 53,048Paper Recycling (closed operation) – – – 3,774 125,266Port Alberni 312,594 324,231 312,675 315,689 291,757Powell River 443,466 446,732 443,242 462,669 459,089Snowflake (closed September 30, 2012) – 220,118 288,566 292,256 232,106

These figures quantify the operating-platform and production-level changes that impact environmental performance, particularly as measured in terms of absolute emissions.

WOOD CHIPS AND PULPING LOGS

HOG FUEL

OTHER MATERIALS

85% TOTAL SOURCED FROM WASTE

MATERIALS SOURCED FROM WASTE(% 2013)

5926

15

Total excludes water consumption.

KEY MATERIALS + PRODUCTION

47


Not including speciated PAHs and Part 5 VOCs (tonnes) 2012 2011 2010 2009 2008

Carbon Monoxide 3,133 2,846 2,490 1,755 2,924Sulphur Dioxide 2,199 2,337 1,941 1,109 4,242Nitrogen Oxides 1,875 1,764 1,652 1,409 2,399Hydrochloric Acid* 866 894 917 551 841Volatile Organic Compounds (VOCs) – total 737 977 876 621 1,273Nitrate Ion 661 375 283 272 201Total Particulate Matter 475 401 499 245 801PM 10 409 337 429 210 666Methanol* 376 536 488 308 729Phosphorus, Total 325 363 257 285 449PM 2.5 293 238 305 150 471Manganese* 210 217 176 185 383Total Reduced Sulphur 146 188 173 70 202Ammonia 131 119 98 68 261Chlorine Dioxide 79 86 108 41 115Hydrogen Sulphide 76 76 77 36 74Zinc 58 60 43 51 56Phenol 29 29 18 – –Acetaldehyde 17 29 15 – –Sulphuric Acid* 14 37 38 34 41Carbonyl Sulphide 10 10 – – 10

(kilograms)

Lead* 2,236 3,028 2,819 3,126 4,021Arsenic 2,221 864 707 960 925Hexavalent Chromium Compounds 318 213 234 320 592Sum of PAHs (17) 307 501 245 134 541Cadmium 149 129 104 131 219Mercury* 13 31 23 34 28

(grams)

Hexachlorobenzene (HCB) 512 694 204 175 414Dioxins and Furans* 22 40 28 31 25

* 2008 figures include full-year releases from Snowflake.

Legislation in Canada requires facilities such as Catalyst’s to annually report releases of any of a large number of substances if they exceed defined thresholds, including releases to air, water and land, and volumes sent for disposal or recycling. Reported volumes are based on actual measurement or estimates arrived at using defensible methodologies.

This information is compiled by Environment Canada in the National Pollutant Release Inventory (NPRI) and is available via www.ec.gc.ca/inrp-npri and www.epa.gov/tri.

The table above shows the combined total of all releases reported to the NPRI and Toxics Release Inventory (TRI) for all of Catalyst’s operations. Full-year releases from Snowflake are included for 2008 to 2011 only (see measures marked with an asterisk*). 2012 Snowflake TRI data is not available. Since releases are reported in the

spring for the previous calendar year, 2013 data were not yet available when this report was prepared.

Data are not included [ – ] in instances where reporting was not required by the regulator. Speciated PAHs, while reported individually to Environment Canada, are reflected in the table above as part of the “Sum of PAHs”.

A complete glossary of terms and definitions is available at www.catalystpaper.com/ products/glossary.

REPORTED NPRI EMISSIONS (CORPORATE WIDE)

48


REGULATORYCOMPLIANCE

A total of 28 events in the following three categories occurred at our operations in 2013:

• Permit non-compliances – exceedances of specific limits or operating parameters defined in a regulatory permit

• Reportable releases – accidental releases which are required to be reported to regulatory authorities due to the source or the nature of the material involved

• Administrative errors – involving such matters as mechanical or procedural errors resulting in missed testing samples, but with which no known permit exceedance or release is associated

All such instances are promptly reported to regulatory authorities, and the root causes are then analyzed in an effort to prevent recurrence. Using a methodology derived from our ISO environmental management systems, we have classified all such events in 2013 by significance1, based on the level of risk to humans and the environment, and the potential for legal sanctions. More details are provided on the facing page relating to all of the events in 2013.

EVENTS BY OPERATION 2

Crofton Elk Falls Port Alberni Powell River Snowflake Total

2013 12 0 6 10 n/a 28

2012 19 11 1 26 8 462011 28 2 0 12 13 402010 21 3 3 5 39 292009 8 2 4 12 0 24

EVENTS BY IMPACTED ENVIRONMENT(corporate wide)

63

42

21

0

Water 15 10 17 35 10

Air 13 63 38 26 17

Land 0 2 0 4 1

09 10 11 12 13

2013 EVENTS (28 TOTAL) IMPACTED ENVIRONMENT SIGNIFICANCE 1

Water Air Land Low Medium High

Permit Non-Compliance 10 4 6 0 4 6 0

Reportable Release 15 3 11 1 15 0 0

Administrative Error 3 3 0 0 3 0 0

1 Low significance: poses no threat to people or environment.Medium significance: poses some threat to people or environment.High significance: poses material threat to people or environment.

2 Snowflake was closed in 2012 and Elk Falls was sold in 2013.

49


CROFTON (12 EVENTS) There were four compliance episodes where the mill failed to meet its bleach plant ClO2

concentration maximums of 10 ppm. A new process that combines odorous pulping gases and bleach plant emissions to eliminate both streams to be completed by Q2 2014 will correct this issue.

Three of 10 fish died during LC20 leachate testing of the old closed landfill at Swallowfield. The site has been inactive for over two decades and no cause could be found. Compromised fish or a contaminated sample container is suspected as the cause.

There were two events where non-ozone depleting refrigerant was released in small quantities just above the 10 kg report threshold.

There was one event where ozone depleting refrigerant was released in a small quantity just above the 10 kg report threshold.

There was one episode of elevated particulate from kiln stack. The cause of the problem was excessive buildup

of solids on the inside of the lime kiln, which resulted in blow through of suspended particles.

220 litres of hydraulic fluid from a ruptured hose on a loader was released onto a deep chip pile. The contaminated chips were collected and subsequently reused as fuel in the power boiler.

A small release of three kilograms of ground calcium carbonate was discharged through a storm drain into Stuart Channel during the transfer from rail to truck. Corrective actions have been taken to prevent spillage during trans-loading, and review of area storm water drains is underway.

The mill’s third quarter miscellaneous TRS measured as total releases per tonne pulp was above the permit limit due to elevated releases from the A Brown Stock Wash vent due to a failed instrument.

PORT ALBERNI (6 EVENTS)There were six events where ozone depleting refrigerant was released in small quantities just above the 10 kg report threshold.

POWELL RIVER (10 EVENTS)There were three minor administrative errors related to missing samples over the year.

There were two events where ozone depleting refrigerant was released in small quantities just above the 10 kg report threshold.

There was a 400 m3 release of wastewater to Malaspina Strait following a brief power interruption.

There was a 57 m3 release of wastewater to Malaspina Strait from manhole #3, combined with cooling water caused by a reset problem with the pump’s controls.

There was an indeterminate discharge of elevated pH water caused by a level transmitter failure.

There were two episodes where cooling water discharges were above the temperature limit, both of which lasted two minutes.

2013 TOTALMILL EVENTS

CROFTON PORT ALBERNI POWELL RIVER

50


REPORT SECTION PAGES

Introductory Materials / Key Facts + Figures • • • • • • • •The Big Picture • • • • •2013 Highlights 2 •2014 Goals 3 •Message from the President 4-6 • •Sustainability Leadership 7-15 • •People 16-17 •Stakeholder Engagement 18-19 • • •Great Bear Rainforest 20-21 •Workforce 22-25 • • •Communities 26-27 • • •Paper 28-32 • •Being Sage 30-31 • •Materiality 33 •Mill Highlights 34 •EVG+D 35 •Responsible Operations 36-40 • • •Environmental Data 41 • •Regulatory Compliance 48 •Detailed GRI Index Online • • • • • • • • • •

A detailed index encompassing Catalyst’s full disclosure process and

citing specific GRI indicators is available at: www.catalystpaper.com/

investors/sustainability-reports. We self declare our disclosure to

be in accordance with GR4 Core guidelines.

We welcome feedback on this report. Please email us at [email protected].

ADVANCING TRANSPARENCY + COMMUNICATING PROGRESSGLOBAL REPORTING INITIATIVE INDEX

STRA

TEGY

+ A

NALY

SIS

G4-1

ORG

PROF

ILE

G4 –

3 to

G4-

16

IDEN

TIFI

ED M

ATER

IAL

ASPE

CTS

+ BO

UNDA

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G4

-17

to G

4-23

STAK

EHOL

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ENGA

GEM

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G4-2

4 to

G4-

27

REPO

RT P

ROFI

LEG4

-28

to G

4033

GOVE

RNAN

CEG4

-34

ETHI

CS +

INTE

GRIT

Y G4

-56

ECON

OMIC

ENVI

RONM

ENTA

L

SOCI

AL

A full overview of our stakeholder landscape – including the groups to whom we believe this report to be of interest – is available in

the GRI Index found on our website.
















1 2 3 4 5

THE BIG PICTURE:












RESOURCE USE



WOOD FIBRE P37

WATER P37


MAGAZINES

CATALOGUES

RETAIL INSERTS

BOOKS

BROCHURES

NEWSLETTERS

NEWSPAPERS

FLYERS

DIRECTORIES

DIRECT MAIL



SAFETY P25

EFFICIENCY P45


OUR PRODUCTS

ATE ONE DISTR


NANAIMO





RICHMOND


WATER QUALITY P37


AIR QUALITY P39

SOLID WASTE P39


INVESTORS

CREDITORS

GOVERNMENTS P19


FIRST NATIONS P19



IMPACTS + BENEFITS



2013LESS IS MORE








CROFTON


PORT ALBERNI


POWELL RIVER



CROFTON


PORT ALBERNI


POWELL RIVER




CONTACTINGCATALYST


CAT

ALY

ST P

AP

ER

201

3 S

US

TAIN

AB

ILIT

Y R

EP

OR

T

LIGHTER IS BETTER



PEOPLE 16

PAPER 28

PERFORMANCE 32



GRI INDEX 50




INPUTS

Raw Fibre (g) 113


Filler (g) 45

Water (L) 9.1


Energy (Cal) 664

% renewable 91

EMISSIONS





* Offset to zero

Production Notes






Richmond, B.C. V7B 1C3604-247-4400






Documents

KEY FACTS AND FIGURES MESSAGE FROM THE PRESIDENT + … · 2014. 4. 28. · carbon emission from shipping ﬁnished product High quality handling ... the Global Reporting Initiative’s