THERE IS ONLY ENDURING ONE THING VALUES MORE …

CATALYST PAPER CORPORATE SOCIAL RESPONSIBILITY REPORT 2016

ENDURING VALUES

CONSTANT CHANGE

THERE IS ONLY ONE THING MORE CONSTANT THAN CHANGE: OUR VALUES.

SUSTAINABILITY HIGHLIGHTS

CUSTOMERS & PRODUCTS 1

Total Paper Manufactured (t) 1,755,795

Total Pulp Manufactured (for external sale) (t) 461,946

Total Electricity Sold (MWh) 149,861

Total Countries Shipped To 40

Total Customers Sold To 464

1 Includes Crofton & Rumford pulp.

PEOPLE & PLACES

Total Employees 2,573

# of Workplace Incidents Requiring Medical Attention 70

Taxes Paid to Governments $35 million

Total Direct Economic Impact $2 billion

FIBRE (1,000 TONNES)

Wood Chips Used 1,590

Pulp Logs Used 1,106

Purchased Pulp Used (virgin) 98

Purchased Pulp Used (recycled) 6

Third Party Audited % 47%

OUTPUTS

Solid Waste to Landfill (t) 146,246

Solid Waste Beneficial Reuse (t) 123,148

Total Suspended Solids Released (t) 4,120

Biochemical Oxygen Demand (t) 2,504

Total Particulates Released (t) 702

Total Reduced Sulphur Released (t) 97

Total Sulphur Dioxides Released (t) 5,110

Total Nitrogen Oxides Released (t) 4,456

ENERGY & CARBON

Renewable Energy (%) 75%

Electrical Energy Used (GWh) 3,094

Biomass Fuels Used (million GJ) 39.5

Fossil Fuels Used (million GJ) 15.3

Greenhouse Gases – Scope 1 – Direct Operations (thousand tonnes CO2e) 1,159

Greenhouse Gases – Scope 2 – Purchased Power (thousand tonnes CO2e) 310

Greenhouse Gases – Scope 3 – Supply Chain (thousand tonnes CO2e) 931

WATER

Process Water Used (million m3) 159

Cooling Water Used (million m3) 102

Catalyst is proud of our

green pedigree and our

recognition for our corporate

social responsibility efforts

(see page 20), but these

achievements are only

possible because of our

employees who treat the

company as their own.

Sustainability starts and

ends with people, and it

is our employees who live

and breathe the values

we believe in. You’ll meet

some of those people as we

highlight our achievements

in 2016.

FACTS & FIGURES

2014 2015 2016

PEOPLE & COMMUNITIES

Medical Incident Frequency (PER 200,000 HOURS WORKED) 1 2.51 2.67 2.69

Lost-Time Incident Frequency (PER 200,000 HOURS WORKED) 2 1.13 1.26 1.11

Employee Population

(ACTIVE EMPLOYEES AT YEAR END, EXCLUDING VACANCIES) 1,598 2,625 2,573

Payroll (INCLUSIVE OF BENEFITS AND EXCLUSIVE OF

RESTRUCTURING COSTS [SEVERANCE]) (MILLIONS) $186 $337 $356

Taxes Paid (MILLIONS) 3 $30 $35 $35

Spending with Suppliers & Business Partners (MILLIONS) $886 $1,613 $1,578

RESOURCE USE

Water (M3 – TREATED EFFLUENT DISCHARGES/PROCESS WATER) 110,246,970 150,284,263 158,845,561

Fuel Energy (GIGAJOULES (GJ) – INCLUDES FOSSIL FUELS AND RENEWABLES) 30,440,668 53,651,272 54,799,707

Electrical Energy (MEGAWATT-HOURS (MWh) – INCLUDES PURCHASED AND SELF-GENERATED ENERGY) 3,495,885 4,649,959 4,601,117

% Renewable Energy 90% 74% 75%

Wood Fibre (TONNES) 1,712,216 2,796,406 2,801,168

% Chain-of-Custody/Third Party Audited 54% 49% 47%

EMISSIONS & OUTPUTS (TONNES UNLESS OTHERWISE NOTED) 4

Greenhouse Gases (SCOPE 1) 5 226 1,204 1,159

Particulate Emissions 6 460 837 702

Nitrogen Oxides 1,917 5,598 4,456

Suphur Oxides 3,160 8,404 5,110

Biochemical Oxygen Demand 1,261 1,982 2,504

Total Suspended Solids 2,787 4,753 4,120

Solid Waste to Landfill 76,063 142,232 146,246

1 Medical Incident: Injury requiring medical treatment other than first aid.

2 Lost-Time Incident: Injury resulting in a full work day lost, past initial treatment.

3 Includes property taxes, U.S. operations’ sales taxes, carbon taxes and PST incurred.

4 Includes emissions attributable to both paper manufacturing and production of power for sale.

5 The 2015 value has been updated to correct for a calculation error.

6 Based on actual test results; NPRI data may differ due to use of emission factors and inclusion of other sources. See page 59.

NOTE: The acquisition of the Biron and Rumford mills, at the beginning of 2015, resulted in significant increases across numerous metrics.

CATALYST AT A GLANCECatalyst Paper is a leading North American manufacturer of

diverse printing and writing papers, and of a growing line of

specialty paper products for applications such as labels, food

liners, pressure-sensitive products and specialty packaging.

We also produce market pulp.

We draw from sustainably managed and largely third-party certified forests, and

collaborate with special interest groups to contribute to the conservation of ecosystems

such as the Great Bear Rainforest and boreal forest. We use extensive amounts of

renewable, waste-based and low-carbon energy sources, in the most efficient and

cleanest ways feasible.

We operate five mills in North America with a network of well positioned distribution

facilities. This enables us to effectively serve markets throughout the continent and

the world, with freight logical options for customers. Our leading sustainability

performance and disclosure means we provide leading brands with the confidence

they need in the paper and packaging products that they buy.

ABOUT THIS REPORTThis is Catalyst Paper’s 14th Corporate

Social Responsibility Report, covering

performance from January 1 to December

31, 2016, and encompassing all of our

operations and our worldwide sales.

We became a private company in early

2017 and have chosen to maintain broad

and voluntary disclosure of our sustain-

ability-related performance through this

report, which covers our environmental,

social and other impacts.

We self-declare this report to be in accordance

with the core disclosure requirements of

the Global Reporting Initiative’s G4

Guidelines. All dollar figures are reported

in Canadian currency. Feedback on this

report is welcome and can be provided to:

[email protected]

In late 2016 we interviewed representatives

of a cross-section of customers, operating

communities and environmental groups,

seeking their feedback on the scope,

content and balance of our 2015 report.

Based on their feedback, we have continued

to focus on procurement practices, materials,

energy, water, emissions, effluents and

waste, compliance, transport, employment,

occupational health and safety, and local

communities, while also incorporating

more target disclosure and industry

benchmarks.

1 CATALYST PAPER

CAT·A·LYST 'kad( )l st / noun

A SUBSTANCE THAT INCREASES THE RATE OF A REACTION WHILE REMAINING UNCHANGED ITSELF.

Our values are the most constant thing in most of our lives,

embedded in what’s most important to each of us: The places

we cherish; the people we care most about; our basic health

and safety. That’s why Catalyst’s values endure – they reflect

the people who work here.

But change is just as constant, and calls us to do more than

keep up, but also to imagine. To ask, “how can we be better,

and what do we need to do to get there?” To dream of tech-

nology and possibility that changes the very nature of work.

And to innovate in order to never be obsolete.

The stories in this year’s Corporate Social Responsibility

Report have something in common: They are all about

tapping in to enduring values in times of ever-more-constant

change. These stories, and the full disclosure of data behind

them, are about us, and – by extension – about you.

We are Catalyst: A force for change, which stays the same.This year, we changed the title of our publication from “Sustainability Report” to “Corporate Social Responsibility Report” to reflect the broad disclosure we make on sustainability issues, and our social and economic impacts and results.

ENDURING VALUES. CONSTANT CHANGE.

CORPORATE SOCIAL RESPONSIBILITY REPORT 2016 32 CATALYST PAPER

AT CATALYST, WE…

LISTENLISTENING TO EACH OTHER:

In Powell River, community

partners are investing in each other. 08

INNOVATE

LEARN

INNOVATION IS SUSTAINABLE:

In Rumford, customers are involved in

product development trials up close.

LEARNING WHAT’S CHANGED:

Two sustainability leaders discuss

the need to keep current on facts

in a rapidly changing industry.

10

06

COLLABORATECOLLABORATING on a successful

mill-wide project opened up a new

market for the Port Alberni mill. 12

STAY SAFE 14

GET THINGS DONEGETTING THINGS DONE is an

attitude and a practice at Biron

that came to life with an emission-

reducing project completed ahead

of schedule.16

CONTENTSCatalyst in Context 18

Customers & Products 22

People 24

Fibre 32

Energy & Carbon 36

Water 40

Outputs 42

The Results: Environmental Data 47

Our Products 64

STAYING SAFE is a choice for each

of us. Catalyst has been working hard

to ensure it’s the choice workers make,

every time.


GreenBlue is an environmental non-profit dedicated to the sustainable use of materials in society that brings together a diversity of stakeholders and real-world and often disruptive solutions to encourage innovation and best practices to promote the creation of a more sustainable materials economy. GreenBlue manages several projects including the Sustainable Packaging Coalition, How2Recycle®, Forest Products Working Group, Environmental Paper Assessment Tool and CleanGredients.

See www.greenblue.org for more.

Catalyst’s reputation as a socially responsible paper company has been built

primarily upon the partnerships it has sought and nurtured, and one of the longest

lasting has been with GreenBlue, an environmental non-profit dedicated to the

sustainable use of materials in society. Nina Goodrich is executive director of the

organization, and her connection to Catalyst’s Graham Kissack goes back many

years. These days, their work together on the Forest Products Working Group and

the Sustainable Packaging Coalition (SPC, a GreenBlue project) embodies the

challenges and opportunities facing a changing industry. In a recent conversation,

the two revealed their shared values and a passion for educating paper buyers to

make informed and balanced choices.

ON CORPORATE SOCIAL RESPONSIBILITY

Nina (NG): “Many of the first sets of sustainability

goals set by companies in the 1990s were met in 2015.

Among our more than 200 member organizations, we

are seeing new sets of goals that are even more

aggressive. Companies like Pepsi, Walmart, Unilever –

all set amazingly bold goals for 2025. They know that

companies with a sustainability plan create more value

for shareholders.”

Graham (GK): “My counterparts in other companies

are talking that way, too. They understand that it’s

in their best interest to lessen their energy footprint.

Catalyst bought into this approach in the late 1980s

when we started swapping out fossil fuels. We’ve

benefited and have been able to compete because

our fuel costs are lower than our competitors.”

ON TRANSPARENCY AS A BUSINESS PRACTICE

GK: “We published our first corporate social responsibility

report in the mid-1990s. Bringing the numbers to life

with stories really challenged us, but took us to a new

level in terms of being transparent. We own our

mistakes, learn from them and try to make sure they

don’t happen again. Fundamentally, this nurtures our

customers’ trust in our company, and the products they

buy from Catalyst.

NG: “You’re right, Graham. I’ve been impressed with

Catalyst’s level of disclosure, and transparency is a

business advantage now, not a disadvantage. For a

sustainability strategy to succeed, it has to be embedded,

not tacked on. The more transparent a company is, the

easier it is to believe and trust them.”

ON THE POWER OF THE “RECYCLED” LOGO

GK: “Thirty years ago, the green movement taught us

that more recycled content was better, but it’s become

more complex than that. The availability of recovered

fibre to include as recycled content in our paper, for

example, has dropped 75 per cent in the past 15 years;

in part because most of this recovered fibre in North

America is being shipped to China. So if a customer

asks for recycled paper, it’s up to us to make sure they

understand and make choices about what they are

asking for.

NG: “The answer is to help improve the level of waste

paper collection in North America, which has topped out

at 70 per cent. Greater participation in programs like this

is the answer to increasing the supply of recovered fibre,

which is a huge source of revenue for municipalities.

Many consumers don’t know that cartons can be

recycled, for example, so education is key here.“

A conversation with Graham Kissack, Vice President, Corporate Social Responsibility, Catalyst Paper

and Nina Goodrich, Executive Director, GreenBlue

“We are a risk-taking company, willing to give things a try, learn something along the way and continuously strive to improve. Over the past two decades, this process has resulted in an enviable green pedigree that has become a powerful advantage for us.”

Graham Kissack, Vice President, Corporate Social Responsibility

LEARNING WHAT’S CHANGED


LISTENING TO EACH OTHERKEEPING THE CORNERSTONE OF A SMALL-TOWN MILL STRONG

“We just want the right people to be part of the heartbeat

of this mill.” Fred Chinn is speaking from the heart, both

as someone who has chosen Powell River as his home, and

as general manager of the best place to work in this town

of 13,000.

That it is accessible only by air and ferry makes his commitment to this community

even more resolute; the isolation means a more pronounced reliance on each other.

From Fred’s perspective, an essential part of this community is the Tla’amin Nation,

one of several Coast Salish nations whose traditional territory includes a large swath

of the B.C. coast that is based just north of Powell River. He has developed a strong

working relationship with the head of its newly self-governing nation, Hegus (chief)

Clint Williams. Fred has come to value their government’s input on joint efforts such

as the recent proposal to create an artificial reef using several of the decommis-

sioned concrete ships that are no longer required as the mill’s breakwater.

Given Powell River’s setting and culture, it has also become crucial to build a strong

employment base for the mill. “There is hope for the younger generations now,”

says Clint. “We are always going to be here. I feel there’s an unwritten reconciliation

in our work together.” Fred goes on to point out that the benefits of listening in

both directions affect many aspects of the community; from growing business

opportunities that either might not have seen without the other, to investing in a

pool of up-and-coming potential Catalyst workers.

With many new hires to counter retirements in 2016, and in the years ahead, that’s

exactly what these two community leaders are helping make happen.

In front of the welcome totems

at the government offices of the

Tla’amin Nation in Powell River,

mill manager Fred Chinn (right)

and Hegus (the Tla’amin word

for “chief”) Clint Williams are

glad for a moment to catch up

on shared business.

8 CATALYST PAPER CORPORATE SOCIAL RESPONSIBILITY REPORT 2016 9

INNOVATION IS A SUSTAINABLE RESOURCE

Like some of the great duos in business, Dave Rosenthal

and Matt Hickey’s partnership is built on a shared focus

on ideas: One excels at bringing them to life, the other at

engaging others with the ideas. In this case, both are

exceptional at what they do because of one common

driving passion: Asking the customer.

“It’s pretty simple,” says Dave, who directs product development for Catalyst.

“Who are our customers? What do they buy? What can we supply them with?”

As a second-generation paper guy and a senior director of specialty paper, Matt is

often the one answering these questions, and from there, Dave puts on his figurative

lab coat and breathes fibre and paper technology into solutions that fit with Catalyst’s

mills. In 2016, that work resulted in the launch of Glide™, a release liner base paper

(left behind when you peel off badges or decals) that was developed for commercial

applications. Launched at last fall’s Labelexpo Americas conference in Chicago, a

modest booth and mighty sales team generated as many leads as bigger competitors,

marking Catalyst’s entry in this growing market.

“It’s critically important to diversify,” says Brian Boland, the vice president who

oversees specialty papers and product development. Noting that printing and writing

grades are declining six per cent a year, and specialty papers are growing two per

cent each year, he sees new paths as essential to the company’s future.

“There are a lot of long days that go in to making something different; learning

something different,” Dave says. “But when a customer comes in to see a trial run of

a product we might be developing just for them, and smiles… that feels pretty good.”

NEW PRODUCT DEVELOPMENT PLANTED AND GROWING

After a quick check in with

colleagues Michael Brenner

(back left) and Carol MacBride,

product development guru

Dave Rosenthal checks quality

on a run of pressure sensitive

label paper.


There’s no keeping an energy bar or even a piece of candy

in your pocket since the Port Alberni mill went through the

rigorous process of becoming food-grade compliant. No

munching is allowed outside of the designated lunchroom

after the team spent months of hard work to achieve U.S.

Food and Drug Administration (FDA) compliance so the mill

can produce paper used in food packaging for the U.S. market.

“It wasn’t about just cleaning up the mill; we had to change workplace practices and

processes,” says Jason Seabrook, who led the effort. “And whether a machine is

running food-grade paper or not, the entire facility has to be spotless and food-free.”

Jason, the mill’s manager of engineering & technical services, describes the incredibly

detailed inventory of work that needed to be completed: Everything from removing

bushes and plants around the mill and adding screens on all the windows to aid pest

control, a separate, FDA-designated sink for handwashing just before heading to the

floor, and yes – a contained lunchroom, the only place food can be eaten.

“There can be no chance the employee who had the peanut butter sandwich for lunch

takes contaminated hands out on to the floor,” Jason says, noting the commitment of

every single worker at Port Alberni to achieve their goal. “As soon as our employees

realized we were doing this to successfully compete in new, growing markets, they

became personally invested in even the smallest detail.” He is justifiably proud they

got there, and so quickly, which added to the company’s food-grade production at

two other facilities, as well as kosher certification at the Powell River mill.

COLLABORATING FOR NEW OPPORTUNITIESPORT ALBERNI ACHIEVES FDA COMPLIANCE

Trained as an environmental

control chemist, Ashley Popovich

(right) is part of Jason Seabrook’s

team at the Port Alberni mill.

In 2016, the mill went through

an exhaustive process and

was rewarded with approval

by the U.S. Food and Drug

Administration to produce

food-grade papers.


STAYING SAFE IS IN ALL OUR HANDS

Safety is a priority at Catalyst, so when hand injuries were

trending up, a task force was formed to look at how to

address the challenge. Safety managers from each site

rolled up their sleeves and determined that requiring

employees to wear gloves as part of their personal protective

equipment would reduce the risk of injury. That led to the

introduction of a company-wide glove policy, which was

fully implemented in 2016.

“It sounds like a simple solution,” says Jason McConnell, one of the task force

members and Crofton’s safety manager. “But developing and implementing the

glove policy was a complex, thoughtful process.” With input from employees, the

task force determined which gloves made sense for each role. Consideration was

given to fit, agility and coating to ensure the right glove was worn for the right job.

“Wearing the wrong glove could actually create a hazard by impairing a worker’s

mobility or by not providing the protection they need against sharp objects,” says

Jason. “Our primary concern was to ensure the right pair of gloves for the task at hand.”

Catalyst’s new policy fits like a glove. Hand injuries are on a downward trend, and

that means safer and more productive mills for the benefit of our employees and

our customers.

SAFETY PERFORMANCE IMPROVES AFTER GLOVE POLICY IMPLEMENTED

Jason McConnell, at left, is

wearing a pair of gloves

custom-designed for Catalyst

as part of a new glove policy

initiative, while protection

officer Richard Johnson sports

a pair of leather Roper gloves.


He grew up 64 kilometres from the mill in Biron, and now

his two young boys are doing the same. For Chris Guldan,

raising a family in a community that balances business with

sustainable choices is a priority. Still, if you thought Chris

might wax on about the challenges of coal power, you’d be

in for a surprise.

With most of his career in the energy sector, Chris is a passionate advocate for the

use of diverse sources, including coal under the right conditions.

That said, when the Biron team responsible for energy production saw an opportunity

to accelerate the required conversion of the coal-fired boiler to natural gas, they

liked the idea. As environmental, health & safety manager, Chris supported the team

by doing the permitting and paperwork needed to complete the conversion.

During the process of reviewing and reducing the mill’s steam and energy needs, the

team was able to improve operating efficiency to the point where they could shut off

the coal power in May, seven months ahead of the January 2017 compliance date.

This saved the company almost $1 million, significantly reduced particulate and

greenhouse gas emissions that much sooner, and left the community feeling reassured

about Catalyst’s investment in its future.

And, new practices such as Tim Kaczmarek’s idea to do conversion walks to spot

steam leaks, are helping improve energy efficiency and keep the skies along the

Wisconsin River as clean as they can be for generations to come.

GETTING THINGS DONE IS PART OF OUR CULTUREBIRON TEAM SAYS “IT TAKES A VILLAGE” TO CONVERT

For Chris Guldan, fishing along

the Wisconsin River represents

the best of growing up in

these parts. It’s an experience

he wants for his sons Brayden,

4, and Mason, 2, and – as

environmental, health and

safety manager for the Biron

mill – he has a part in making

that happen.


STAKEHOLDERS

STAYING TRUE TO…

Employees, Retirees and Communities

We employed 2,573 people and were an

important part of local economies extending

from New England to Vancouver Island. We strive

to be a welcome member of the communities

where we operate (see pages 28-31).

Investors

In January 2017, Catalyst completed a

recapitalization plan to refinance the company’s

debt, improve its financial position and enable

continued pursuit of its business objectives.

Catalyst is now owned primarily by three

private equity groups.

Non-Governmental Organizations

We collaborated with environmental groups

and other organizations – a hallmark of the

way we do business. The following page

features their logos.

Suppliers and Business Partners

We sought suppliers who are as corporately

responsible as we are. We began working

on a new procurement policy to guide our

particularly important relationships with

wood fibre providers (see page 32).

Indigenous Peoples

We forged stronger and more multi-faceted

relationships with Indigenous Peoples in

British Columbia.

Governments

We worked closely with governments to

ensure regulatory compliance, to foster a

competitive business environment and to

contribute to policy development. We

supported the specific advocacy efforts

described on page 21.

Customers

We continued to market environmentally

preferred products to our increasingly

diverse and valued customer base while

extending the range of our product

offerings (see pages 22-23).

At the heart of corporate social responsibility is the recognition that our success as a company is

inextricably tied to the success and well-being of our communities and our broader society. With that

in mind, we adhere to high standards for corporate governance and ethics. We actively engage with

and take account of the interests of diverse stakeholders, while building more formal partnerships

with some. In 2016, we supported specific advocacy efforts relating to climate change, and we were

honoured to receive several prominent awards for our contributions and achievements.

CATALYST IN CONTEXT

GOVERNANCE

During 2016, the chair and all other members of the Catalyst Board of

Directors (with the single exception of the President & Chief Executive

Officer) were independent. There were six male directors and one female

director. The Board had the responsibility to approve our strategic plan

and budgets, identify and monitor principal risks, and oversee the

appointment and performance of the President and

Chief Executive Officer.

Procedures were in place to enable employees to bring potential

violations of our Code of Corporate Ethics and Behaviour, and other

concerns, directly and anonymously to the Board’s attention. Steps

were taken to heighten awareness of this whistleblower hotline.

No reports were made in 2016.

In early 2017 Catalyst announced its successful recapitalization, which

was necessary to refinance debt, improve our financial position and

enable continued pursuit of a transformational change agenda. The

company also privatized and is now owned primarily by three private

equity groups.

VANCOUVER, BC

BIRON, WI

SAUK VILLAGE, ILDAYTON, OH

ATLANTA, GA

RUMFORD, ME

TIGHE, MA

MILLS

CORPORATE OFFICES

DISTRIBUTION CENTRES

TYRONE, PA

LAKELAND, FL

RICHMOND, BCPOWELL RIVER, BC

SURREY, BCPORT ALBERNI, BCCROFTON, BC


KEY PARTNERSHIPS

We worked with each of these groups to advance various initiatives described in this report.

CATALYST IN CONTEXT CONTINUED

TAKING A STAND ON CLIMATE CHANGE

Catalyst actively supports various efforts to

encourage governments to move forward

with carbon pricing and other measures to

address climate change. Catalyst believes a

carbon price is one of the most efficient and

transparent ways of reducing emissions and

encouraging low-carbon investment. Catalyst

continues to lead climate change discussions

as a member of WWF’s Climate Savers Initiative.

In 2016 Catalyst was a co-signer to some

of the largest collective corporate efforts in

North America to achieve a low-carbon

economy. This included initiatives of the

Carbon Pricing Leadership Coalition, Low

Carbon USA, the Council for Clean Capitalism

and Smart Prosperity.

Catalyst already pays a carbon tax in

British Columbia and in 2016 we provided

substantial input on the province’s future

climate action plans.

Climate change impacts were also as much

practical reality as policy preoccupation,

as multi-year drought conditions continued

in the Cowichan Valley (see page 40).

Catalyst worked with Indigenous and local

government representatives to encourage

senior government cooperation in finding

a long-term solution to this daunting

climate-related challenge.

MEASURING WHAT MATTERS AND DEFINING SUCCESS

Catalyst carefully tracks and discloses its performance on environmental and other important

measures. To help make sure we’re continuously improving, we also set ambitious annual

targets. On measures such as safety and sales, targets are company-wide. Others are mill specific,

and selected to help make sure we capture the most significant improvement opportunities at

each operation. We have highlighted a cross section of these targets, and our performance

against them, in relevant sections throughout this report (look for the icon at left). These targets

are a key element of our corporate social responsibility strategy, which was updated in 2016.

RECOGNITION FOR OUR EFFORTS

Canada’s Best 50 Corporate Citizens –

2016 marked 10 consecutive years of

Catalyst’s inclusion on Corporate Knights’

annual list of Canada’s most socially responsible

corporations, based on key performance

outcomes and transparency assessments –

one of only nine companies included for

a full decade.

EarthCare Award – This prestigious Sierra

Club U.S. award was shared in 2016 with

industry, environmental, government and

Indigenous partners in the creation of the

Great Bear Rainforest Land Use Agreement in

B.C., a unique contribution to international

environmental protection and conservation.

Canadian Industry Program for Energy

Conservation Leadership Award (Energy

Performance Management category) – for

the installation of new green generating

capacity at Powell River in 2015.

Energy Management Insight Award

(Clean Energy Ministerial) – for the

implementation of the ISO 50001 energy

management system at Crofton in 2015.

MEASURING WHAT MATTERS


STAYING TRUE TO OUR VALUES, WE:nn Continued to enhance customer service

processes and practices.

nn Diversified our product offering.

nn Improved transparency with attributes

like certified fibre, renewable energy

and carbon-neutral processes.

nn Leveraged our unique geographic

position as North America’s only

manufacturer with facilities across the

entire continent from east to west.

2016 OUTCOMES AND INITIATIVESnn Implemented production trials and customer

qualification processes across new product

segments including expanded label and

liner products.

nn Our Glide Graphics™ line is used as

backing for large peel-off graphics for fleet

vehicle and signage applications, and is

manufactured to highly precise specifications

at our Rumford mill. Its launch solidified the

Catalyst brand in this new market.

nn Powell River, Port Alberni and the Surrey

Distribution Centre joined our Biron mill in

completing rigorous third-party assurance

to comply with U.S. Food and Drug

Administration (FDA) standards for food

contact applications. Powell River also

achieved kosher certification.

nn Production optimization included the launch

of Rumford Offset, an uncoated free sheet

product that increased the breadth of our

product offering for customers, restarted

an idled paper machine at the Rumford mill

and increased internal pulp consumption.

LOOKING AHEADnn Product development and FDA compliance led to the early 2017 launch of two food grades:

Leap™ for flexible packaging such as bags and packets, and Bistro™ for food-services

applications such as lightweight wraps. Breakwater™, our new Away-from-Home (AfH)

towel grade, was scheduled for launch following a machine conversion at Powell River..

nn In early April, 2017 the U.S. Department of Commerce (DOC) issued Final Results of its

expedited review of Catalyst and found the company received a negligible (de minimis)

amount of subsidies during the application review period. The Final Results confirm the

DOC’s preliminary finding that Catalyst did not receive any material subsidies from the

provincial or federal governments. Catalyst expects the return of substantial deposits required

to be paid since the countervailing duty on exports of supercalendered paper to the U.S. was

imposed in 2015.

PRODUCT TRANSPORTATION EFFICIENCY BY MODE

2012 2013 2014 2015 2016

Rail (tonnes/car) 74.4 75.7 74.2 75.4 75.0

Truck (tonnes/truck) 26.1 25.6 25.4 23.0 23.0

Intermodal (tonnes/unit) 22.1 21.6 21.1 19.1 19.6

Container (% utilized) 98.2 98.1 98.4 97.4 97.7

Watching the Product Take ShapeCustomers on a mill tour at Rumford are seen here observing Catalyst operators perform

the delicate procedure of threading a new sheet in the paper machine. Customer mill visits

and sustainability audits became an increasingly common activity as Catalyst aggressively

moved into specialty paper production. Rumford hosted nearly a dozen visits in 2016, many

involving product end-users with highly prominent brands. Customers are encouraged to

interact with employees and typically come away with a strong sense of the pride, expertise

and commitment to quality of the individual employees.

Low-Impact Product ShippingIn an effort to lower carbon

emissions across our supply chain,

we continued to participate in the

U.S. Environmental Protection

Agency’s SmartWay program.

At our Canadian mills, 88 per cent

of shipments were made with

SmartWay partners – who meet

specific fuel efficiency and other

emissions-related criteria. Our U.S.

mills also became SmartWay

registered and 90 per cent of

shipments were with SmartWay

partners.

CUSTOMERS & PRODUCTSCUSTOMERS

nn Our SAGE™ designated papers, which are

chain-of-custody certified and produced

carbon neutral, comprised four per cent of

our 2016 paper sales. One dollar from every

tonne sold is used to support the work of

our stakeholder partners.

nn We deepened customer relationships and

improved low-volume shipment efficiency

through “dedicated stock” arrangements

with specialty paper customers, providing

inventory on an as-needed basis in exchange

for a commitment to larger volume purchases.

nn Our supply chain functions in Canada and

the United States were integrated into a

single Customer Solutions group, enabling

improved processes and customer service.

2016 TARGET $2.39

2016 ACTUAL $0.96


Most mills had a reduction in customer claims as a 2016 target. Port Alberni, for example,

targeted and achieved the following performance. See page 21 for more context on targets.

CUSTOMER CLAIMS($ PAID/TONNE OF PRODUCTION)

0 0.5 1.0 1.5 2.0 2.5

CUSTOMER CLAIMS

2012 2013 2014 2015 2016

1500

1000

500

0

CLAIMS PER MILLION TONNES OF PRODUCTION (GROSS U.S. AND CANADA)


PEOPLEWORKFORCE PROFILE

Catalyst employs a diverse and highly skilled workforce of about

2,600 people, the large majority of whom work at one of its five

mills and two primary offices. About 75 per cent of the workforce

is unionized. The age curve skews toward workers older than 45,

particularly among hourly employees.

EMPLOYEE COMPENSATIONnn Canadian salaried employees are covered by

a defined-contribution pension plan, with

some having defined-benefit entitlements

earned earlier in their employment.

Unionized employees are covered by a

multi-employer defined-benefit plan.

WORKFORCE TURNOVER

Hourly 2012 2013 2014 2015 2016

Retirement 4.9% 3.7% 5.3% 6.1% 6.5%

Voluntary Departure 4.7% 2.6% 4.0% 2.5% 3.1%

Total 9.6% 6.3% 9.3% 8.7% 9.6%

Salaried

Retirement 1.4% 2.2% 2.8% 1.8% 2.9%

Voluntary Departure 12.8% 6.8% 6.7% 6.2% 6.7%

Total 14.2% 9.0% 9.4% 8.0% 9.6%

Overall 10.9% 7.0% 9.3% 8.5% 9.6%

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

UNIONS AND MEMBERSHIP (NUMBER OF EMPLOYEES)

Canadian Operations

MoveUP 2

Unifor 716

Public and Private

Workers of Canada 384

U.S. Operations

Office and Professional

Employees International Union 9

International Brotherhood

of Electrical Workers 70

United Steelworkers of America 699

United Association of Journeymen

and Apprentices of the Plumbing

and Pipefitting Industry 13

International Association of Machinists and Aerospace Workers 27

EMPLOYEES AND PAYROLL

YEAR WORKFORCEPAYROLL

($ MILLIONS)

2012 1,592 $ 206

2013 1,611 $ 183

2014 1,598 $ 186

2015 2,625 $ 337

2016 2,573 $ 356

Workforce figures are for active employees at year-end and exclude vacancies.

Payroll figures are inclusive of benefits and exclusive of restructuring costs (severance).

WHO WE ARE

nn U.S. salaried employees are also covered by

a defined-contribution or 401(k) pension

plan. All U.S. unionized employees also

participate in a 401(k) plan, and some also

participate in a defined benefit plan that is

now closed to new members.

nn All employees are eligible for additional

performance-based compensation, however,

no incentive payments were triggered for

2016 as the relevant corporate financial

target was not met.

WORKFORCE DEVELOPMENT & RECRUITMENTnn New online training resources were

provided for and extensively used by

salaried employees, and piloted with

interested hourly employees.

nn Many supervisors completed the first of

three training modules designed to enhance

supervisory knowledge and capabilities.

nn A new performance management approach

and system were implemented for all

salaried employees to align their efforts

with business priorities, and create a

framework for development planning and

performance coaching.

nn Catalyst’s recruitment efforts were supported

by a targeted LinkedIn campaign – augmented

by other social media platforms – and current

employees were encouraged to use their

networks to help identify and attract

candidates, resulting in 241 vacancies filled

across the company (78 more than in 2015).AGE CURVE OF EMPLOYEES

20-45 46-50 51-55 56-60 60+ YEARS OLD YEARS OLD YEARS OLD YEARS OLD YEARS OLD

50%

25%

0%

SALARIED EMPLOYEESPERCENTAGE OF SALARIED EMPLOYEES BY AGE

HOURLY EMPLOYEESPERCENTAGE OF HOURLY EMPLOYEES BY AGE

Catalyst activities also

supported additional

employment (indirect and

induced) estimated at

4,660 jobs in British

Columbia and 5,315 in

the United States.


2016 OUTCOMESnn In January, an employee was fatally injured

at the Crofton mill. This tragic incident

reaffirmed our commitment to improving

our safety performance.

nn With a focus on continuous improvement,

we reduced the frequency of incidents

resulting in lost time from work, as well as

measures relating to injury severity. The

frequency of total medical incidents rose.

nn There were significant reductions in total

medical incident frequency at Biron,

Crofton, Powell River and the Surrey

Distribution Centre. Medical incidents

occurred more frequently at Port Alberni

and Rumford.

EMPLOYEE INJURIES2016 INITIATIVESnn A two-part, company-wide safety strategy

was implemented, with all mills analyzing

their safety statistics to identify and prioritize

injury types and causes. Operational audits

were also carried out to close gaps between

current and world-class workplace safety

performance.

nn Specific initiatives included ongoing imple-

mentation of a corporate-wide glove policy

to reduce the risk of a common injury type.

How Many

How Severe

How Often

HEALTH & SAFETYHOW WE LOOK AFTER OURSELVES AND EACH OTHER

PEOPLE

LOOKING AHEADnn Mill-specific statistical analysis and follow-up

on mill audit findings will continue. A safety

conference – involving general managers,

safety managers and union safety represen-

tatives from all mills – is also expected to be

held on an annual basis.

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.


80

60

40

20

0

100

75

50

25

0

4

3

2

1

0 2012 2013 2014 2015 2016

2012 2013 2014 2015 2016

2012 2013 2014 2015 2016

NUMBER OF INCIDENTS REQUIRING MEDICAL ATTENTION (MIs)

INJURY SEVERITY RATE (# WORK DAYS LOST / 200,000 HOURS WORKED)

MIs PER 200,000 HOURS WORKED

NUMBER OF INCIDENTS RESULTING IN LOST TIME FROM WORK (LTIs)

AVERAGE # OF WORK DAYS LOST DUE TO INJURY

LTIs PER 200,000 HOURS WORKED

2016 TARGET

2016 TARGET

2016 TARGET

2016 TARGET

WORLD-CLASS PERFORMANCE

2016 TARGET

2016 TARGET

WORLD-CLASS PERFORMANCE

Glove Policy Supports SafetyIn 2016 Catalyst introduced a glove

policy across the company. The policy

development process began in 2015

with consultations at each mill on glove

selection within the context of safety as

a company priority. Employee feedback

was incorporated into the glove selection

process, with the resulting policy reflecting

the unique needs of each location while

making employee safety the priority. To

the right are some of the cut-resistant

gloves used at our Powell River mill.

Severity Rate ReductionWe’re working hard to improve our safety

results, and our severity rate has shown

consistent improvement since 2012.

2016 TARGET 2.03

2016 ACTUAL 2.69

Safety is a company-wide priority and target. As indicated above, we targeted but did not

achieve the following reduction in our medical incident rate (per 200,000 worked):

0 0.5 1.0 1.5 2.0 2.5 3.0


CROFTON

Jobs 583

Wages & Benefits $ 68

Local Property Taxes $ 4.7

Spending with Local Vendors $ 4.3

PORT ALBERNI

Jobs 326




POWELL RIVER

Jobs 357




BIRON/WISCONSIN RAPIDS

Jobs 350



RUMFORD

Jobs 631




SURREY

Jobs 74



RICHMOND/U.S. SALES OFFICES

Jobs 193



DAYTON

Jobs 32



NANAIMO

Jobs 27



Workforce figures are for active employees at year-end and exclude vacancies. Payroll figures are inclusive of benefits and exclusive of restructuring costs (severance). Local spending includes vendors with addresses in the local municipality.

PEOPLE

A STRONGER DIGITAL PRESENCE

In 2016, we became a more active

participant and visible presence on many

digital platforms, providing another touchpoint

with our stakeholders.

2015 2016

Klout Score* 38 47

Twitter Profile Visits 2,245 5,362

LinkedIn New Followers 866 1,963

Website Unique Page Views 368,570 466,744

Sustainability Report Downloads 526 716

* A measure of overall social media presence, on a scale of 0-100, where 100 is the maximum social presence.

OUR OPERATING COMMUNITIESWHERE WE LIVE

COMMUNITY BENEFITS ($ MILLIONS)

Community Dialogue and SupportCommunity Advisory Forums at Crofton

and Powell River were held during 2016,

and other operations provided updates to

their respective operating communities.

Community stakeholders were kept

informed on key developments relating

to debt refinancing and the restructuring

of corporate ownership during the year.

Catalyst provided financial donations in

support of diverse community-level

initiatives near its mills – sports teams,

community festivals, support for the

disadvantaged, and others – and a

company- and employee-supported

United Way campaign raised a total of

$92,000.

In-kind and employee-volunteer support

examples include an employee initiative

at the Biron mill where used company cell

phones were collected and donated to

a charity that helps deployed soldiers to

keep in touch with families.

Catalyst further supports its communities

through access to infrastructure and

expertise, such as the Port Alberni mill’s

involvement in an earthquake and

tsunami readiness training exercise for

a Vancouver-based Heavy Urban Search

and Rescue team.

Remembering an Exodus and a New BeginningNearly 60 years ago, more than 200 faculty

and students of the Sopron School of

Forestry made their first Canadian home in

accommodations at the Powell River mill,

after escaping the repressive regime in their

native Hungary. With community members

stepping up to help them learn English and

begin to find their footing in Canada, these

young students continued their studies at

what became the Sopron Division of the

Faculty of Forestry at the University of British

Columbia. Many of them went on to make

important contributions to the province’s

forest sector and became industry leaders.

In September 2016, a large group of Sopron

alumni returned to Powell River for a mill

tour and commemorative event. Among

them was Joe Nemeth Sr. – father of

Catalyst’s current President & Chief

Executive Officer, Joe Nemeth.

The Nanaimo office was closed on December 31, 2016.


REST OF MAINE 165.3 (22.0%)

ECONOMIC IMPACTnn Catalyst spending on employee payroll and

benefits, suppliers and government taxes

resulted in a direct economic impact of

approximately $1 billion in Canada and

$914 million in the United States.

nn Catalyst’s activities across the regions

where we operate resulted in total indirect

and induced economic impacts of some

$957 million in Canada and $746 million

in the U.S. This also supported additional

employment totalling about 4,660 jobs

in Canada and 5,315 in the U.S. (beyond

direct employment at our mills and offices).

nn Catalyst’s combined economic impact

totalled $3.7 billion ($2.0 billion in Canada

and $1.7 billion in the U.S.) and 12,600 jobs

(6,200 in Canada and 6,400 in the U.S.).

nn Jobs, wages, property taxes and local

spending provided by Catalyst are crucial to

the economic well-being of our communities,

and have a significant impact on smaller

communities where our mills are located.

These numbers are based on current data available from B.C. Statistics and U.S. Dept. of Commerce Bureau of Economic Analysis.

Direct economic impact: Measures what the company spends.

Indirect economic impact: Measures the economic impact of Catalyst contractors, vendors and suppliers.

Induced economic impact: Measures the downstream economic impact of Catalyst’s operations; for example, what a dog-walker hired by a company contractor spends in a community.

OUR OPERATING COMMUNITIESPEOPLE

WHERE WE LIVE

11+10+48+31+ATOTAL SPENDING WITH CANADIAN VENDORS ($ MILLIONS)

TOTAL SPENDING WITH U.S. VENDORS ($ MILLIONS)

GREATER VANCOUVER, B.C. 426.3 (48.3%)

RUMFORD, ME 7.6 (1.0%)

BIRON/WISCONSIN RAPIDS, WI 88.4 (11.8%)

VANCOUVER ISLAND 85.6 (9.7%)

REST OF CANADA 270.9 (30.7%)

REST OF WISCONSIN 48.9 (6.5%)

REST OF OHIO 33.7 (4.5%)

REST OF U.S. 407.3 (54.2%)

DAYTON, OHIO 0.1 (<1%)

ECONOMIC IMPACT ($ MILLIONS)

EMPLOYEES (WAGES, SALARIES, BENEFITS)CANADA: $192 U.S.: $165TOTAL: $357

FIBRE & OTHER RAW MATERIALSCANADA: $304 U.S.: $378TOTAL: $682

GOVERNMENTS (TAXES)CANADA: $31 U.S.: $4TOTAL: $35

ENERGYCANADA: $174 U.S.: $84TOTAL: $258

CAPITAL PROJECTSCANADA: $18 U.S.: $10TOTAL: $28

OTHER EXPENDITURESCANADA: $217 U.S.: $179TOTAL: $396

SOCIETY (DONATIONS)CANADA: $0.06 U.S.: $0.01TOTAL: $0.07

DIRECT ECONOMIC IMPACT CANADA: $1,056 U.S.: $914TOTAL: $1,970

INDIRECT & INDUCED ECONOMIC IMPACTCANADA: $957 U.S.: $746TOTAL: $1,703

EMPLOYEES & SOCIETY

SUPPLIERS & BUSINESS PARTNERS

GOVERNMENTS

TOTAL ECONOMIC IMPACT: $3.7 BILLION

CANADA: $2.0 BILLION U.S.: $1.7 BILLION

1+22+12+7+5+53+AREST OF BRITISH COLUMBIA 99.2 (11.2%)

CHEMICALS, OPERATING & FINISHING SUPPLIESCANADA: $119 U.S.: $95TOTAL: $214


STAYING TRUE TO OUR VALUES, WE:nn Ensure all our fibre meets basic requirements: Legal harvesting, compliance with

International Labour Organization Core Conventions, no genetic modification, not

from plantations and not associated with traditional/civil rights violations.

nn When possible, choose fibre that exceeds these basic requirements through certification

to one of the leading third-party systems that has demanding conservation and

sustainability standards.

nn Actively collaborate with fibre suppliers, environmental groups and other stakeholders

on forest management issues arising within specific supply areas.

IF YOU CARE ABOUT RECYCLED PAPER, YOU SHOULD THINK ABOUT HELPING PAPER RECOVERYToday, only 53 per cent of Americans have access to recycling

programs and half of the recyclables are captured in those homes

with curbside recycling; so it’s not surprising that about 30 per cent

of waste paper ends up as garbage in our landfills. We want to help

change that.

Paper is one of the world’s truly sustainable products that comes from renewable forests and is

fully recyclable. That’s why Catalyst is taking a leadership role in supporting recycling to ensure

the recovery of our products at their end of life. That means less paper is lost to landfills and

more is available for re-manufacture into new products. Improving levels of paper recovery

isn’t driven by using more recycled paper, it occurs by improving collection with consumers.

Catalyst is a proud member of Recycling Works in Publishing, which is a member of The Recycling

Partnership, a national recycling non-profit organization focused on improving residential

recycling programs. Here are some of the little known truths around waste paper and recovery.

2016 OUTCOMES AND INITIATIVESnn We continued to work on revising our fibre

procurement policy so that it better reflects

our philosophy of protecting unique forest

ecosystems and driving collaborative

solutions with all forest stakeholders. We

hope to complete our new policy in 2017.

nn We implemented a single company-wide

balance sheet for SFI- and PEFC-certified

fibre supply, allowing greater flexibility to

assign credit for purchased certified fibre

to the mills where customer demand for

certified product is greatest.

nn We leased surplus lands on the Crofton mill

site to a Vancouver Island forestry company

for use in log handling operations, providing

an additional source of high-quality renewable

fuel to Catalyst in the form of waste bark.

Certification: The Leading SystemsCatalyst buys, tracks and sells wood fibre certified to three leading systems:

Forest Stewardship Council – FSC is a

long-standing international certification

program, which enjoys particularly strong

support from ENGOs, Indigenous Peoples

and customers, and widespread market

recognition and acceptance of its brand.

Programme for the Endorsement of Forest

Certification – PEFC is a worldwide program

that validates national or regional forest

management standards (including SFI)

against its own benchmarks, providing a

designation that accommodates the diversity

of global forests.

Sustainable Forestry Initiative – SFI is a North

American-based certification program. It is

overseen by an independent non-profit

organization with a multi-stakeholder board.

FIBRE & FOREST MANAGEMENTFIBRE

GEOGRAPHIC ORIGIN OF FIBRE

MAINE23%

BC COAST36%

23+23+36+9+4+2+2+1+A30+70

53+47

50+50

100BC INTERIOR23%

NEW HAMPSHIRE9%

WISCONSIN4%

MICHIGAN2%

VERMONT2%

OTHER1%

400,000

1

530%

53% 50%

100%

NUMBER OF HOUSEHOLD RECYCLING CARTS DEPLOYED

BY THE RECYCLING PARTNERSHIP SINCE 2014:C

ATA

LYST’S PAPER THAT CAN BE R

ECY

CLE

D

NO

RTH

AM

ERICAN PAPER SENT TO

LA

ND

FILL

U.S. PO

PULATION THAT HAS CURBSID

E REC

YC

LIN

G

REC

YCLED PAPER EXPORTED TO CH

INA

AM

OUNT OF NORTH AMERICAN

The single most important question on recycled paper: How are you helping to recover your waste paper products and reduce demand on North American forests?

Average number of times a

paper fibre can be recycled.


Nearly half of the total weight of raw materials used by Catalyst in

2016 was sourced from waste or byproducts.

SOURCE OF RAW MATERIALS

51+2+18+29+A29%

18%

51%TOTAL WEIGHT OF

RAW MATERIALS USED (EXC. WATER):

5.5 MILLION TONNES

FIBRE & FOREST MANAGEMENTFIBRE

1 Including American Tree Farm System certification.

LOOKING AHEADnn Stakeholder debate is ongoing regarding

the potential need for additional protection

and revised management practices in intact

old growth areas on Vancouver Island.

Catalyst continues to be part of multilateral

collaboration on this issue following the

joint-solutions model that resulted in the Great

Bear Rainforest Agreement that Catalyst

worked toward for nearly two decades.

nn Catalyst is supporting development (with

long-term partner GreenBlue and the

American Forest Foundation) of a new online

tool combining data on the landscape-level

sustainability of U.S. forests. This tool will

provide assurance with respect to many small

family owned plots, where certification to

major standards is often not feasible.

2016 TARGET 50

2016 ACTUAL 65


The amount of wood fibre lost into mill sewer systems is a measure of how efficiently

this important raw material is used. Rumford targeted but did not achieve the following

performance. (See page 21 for more context on targets.)

POUNDS FIBRE IN SEWER PER GROSS TON PRODUCTION

0 25 50 75 100

BIOFUEL (WOOD WASTE)

OTHER MATERIALS (N

ON-WASTE)

WOO

D CH

IPS

2% TIRE-DERIVED FUEL

<1% OLD RAILWAY TIES

TOTALFIBRE

NON-AUDITED

WOOD CHIPS

PULP LOGS

PURCHASED RECYCLED PULP (RECOVERED PAPER)

FSC CERTIFIED

FIBRE USE BY TYPE

CHAIN-OF-CUSTODY/AUDITED FIBRE

2012 2013 2014 2015 2016

2012 2013 2014 2015 2016

2,800

2,100

1,400

700

0

2,800

2,100

1,400

700

0

(THOUSAND TONNES)

(THOUSAND TONNES)

PURCHASED VIRGIN PULP

PEFC/SFI CERTIFIED1

MASTER LOGGER

Helping eliminate problematic solid wastesCatalyst is one of North America’s largest

consumers of tire-derived fuel, burning

the equivalent of 10.8 million passenger

car tires. Old vehicular tires are a breeding

ground for mosquitoes that spread West

Nile virus and are a source of tire pile fires.

Railway companies produce millions of

waste railway ties each year, and these

are a good source of biomass fuel to

improve our boiler operations.

All of our fibre is low-risk under the FSC risk assessment process and

also meets the SFI-certified sourcing standard.

2016 FIBRE

5+31+11+53+A

47%

FSC CERTIFIED 11%

PEFC/SFI CERTIFIED 31%

MASTER LOGGER 5%

COC/AUDITED FIBRE

53%NON-AUDITED

100%LOW-RISK,

LEGAL AND RESPONSIBLE


2016 TARGET 316,548 2016 TARGET 79.1

2016 ACTUAL 317,651 2016 ACTUAL 75.0

STAYING TRUE TO OUR VALUES, WE:nn Generate 33 per cent of the electricity

we need ourselves, using renewable

and waste-derived fuels as fully as

possible, and selling the surplus at

some mills.

nn Reduce our demand on the electricity

grid during periods of peak demand

and higher cost.

nn Rigorously account for and fully

disclose our carbon emissions.

nn Have industry-leading low-carbon

footprints in our B.C. mills – with an 81

per cent reduction in carbon emissions

since 1990 – and use between 90 and

93 per cent renewable energy. Our U.S.

mills are more fossil fuel reliant but

utilize diverse fuel mixes, including

extensive waste-derived fuels at

Rumford (old railway ties and tires).

ENDING HIGH-SULPHUR COAL USEnn Biron complied with Maximum Achievable

Control Technology air-emission limits

months ahead of a regulatory deadline. A

steam-generating boiler was shut down at

the beginning of May – eliminating the use

of high-sulphur coal and significantly

reducing emissions.

nn Particulate fell by 68 per cent, sulphur

dioxide by 56 per cent, nitrous oxide by

44 per cent and other greenhouse gases

were reduced by 23 per cent.

nn Energy management improvements reduced

steam demand making the boiler shutdown

possible and delivering a drop in gross

thermal energy use of 21 per cent.

nn The boiler will be converted to natural gas

in spring 2017 and used as a backup only.

nn After its first full year of operation, this

initiative is expected to generate even

greater reductions than seen in 2016.

See page 42 for more information.

OTHER 2016 OUTCOMES AND INITIATIVESnn Our already industry-leading low-carbon

performance improved further, with a

four per cent decline in corporate-wide

greenhouse gas emissions on both an

absolute and intensity basis. This was driven

by the large emissions improvement at Biron.

nn Our Canadian operations saw bump-ups in

both absolute and per-tonne GHG emissions

– see causes noted in the mill-specific data

tables on pages 51-52 – while at Rumford

there was a small absolute increase and a

small intensity decrease.

nn Powell River’s new G13 turbine provided

additional green energy generation from a

previously unharnessed low-pressure steam

source. The project team was also able to

operate the new turbine even while the

main turbine to which it is connected was

idle, increasing energy output. Careful

biomass fuel quality management further

contributed to efficient energy generation.

TOTAL FUEL ENERGY USE

TOTAL ELECTRICITY USE

2012 2013 2014 2015 2016

2012 2013 2014 2015 2016

60

45

30

15

0

4.5

3.0

1.5

0

(MILLION GJ/YEAR)

(MILLION MWh/YEAR)

(GJ/ADT)

(MWh/ADT)

ENERGY & CARBON

GJ – GIGAJOULESMWh – MEGAWATT-HOURSADT – AIR-DRIED TONNES OF PRODUCT

ECOLOGO® Certification Achieved at Powell RiverPowell River achieved ECOLOGO®

certification (2010 CCD-003

standard), verifying that the mill

generates and uses renewable

and low-impact power. Rumford’s

ability to provide renewable energy

certificates was expanded to cover

nearly half of the fuels it uses for

power generation.

Freeing up Potential Energy SavingsUntil recently, “freeness” was the

only continuously available pulp

quality measurement at Crofton,

and was used to adjust energy

use. But through a cost-effective

instrumentation improvement

(supported by BC Hydro), fibre

length can now also be monitored,

which has allowed the mill to

optimize and reduce the energy

applied across the mill’s refiners.

This resulted in multiple energy-

saving changes and annual energy

savings of 50.6 gigawatt-hours,

contributing to a seven per cent

mill-wide energy use reduction.

FOSSIL FUELS(MILLION GJ/YR)

PURCHASED ELECTRICITY(MILLION MWh/YR)

RENEWABLES(MILLION GJ/YR)

SELF-GENERATED ELECTRICITY(MILLION MWh/YR)

INTENSITY(GJ/ADT)

INTENSITY(MWh/ADT)

ENERGY USE & CARBON MANAGEMENT


Optimizing self-generation of electricity is an important objective at all operations, especially where power is sold externally. Powell River targeted and achieved the following performance.

Maximizing use of renewable fuels, such as hog fuel or wood waste, is also an important objective. Crofton targeted but did not achieve the following performance. (See page 21 for more context on targets.)

POWER GENERATIONMWh

HOG GENERATIONMWh (% OF POWER BOILER 4 AND 5 GENERATION FROM HOG)

0 100 200 300 400 0 25 50 75 100

4.5

3.0

1.5

0

60

45

30

15

0


OPERATIONS

M

ANUFACTURING

UPSTREAM

Inbound raw fibre 276,772

Inbound materials 131,362

Employee commuting 10,007

Business travel 4,021

Waste disposal 1,753

DOWNSTREAM

Outbound product 286,603

End-of-life paper 151,701

Printing on paper 66,522

Leased facilities 2,023

INDIRECT GHG EMISSIONS (SCOPE 3)(TONNES)

Indirect GHG emissions are based in part on annually revised BC Hydro estimates.

In 2012, Catalyst began selling some electricity externally at Powell River, and in 2015 it began doing so more extensively with the acquisition of the Rumford mill. The GHG emissions above are those attributable to paper production (figures for 2012-2014 have been adjusted). See page 49 for a quantification of the much smaller amount of GHGs and other air emissions attributable specifically to the production of power for sale.

1 Rumford Scope 2 GHGs were under-reported for 2015, and this has been corrected.

Breakdowns are based on net energy use and account for the use of some fuel energy to self-generate electricity.

From its acquisition in April 2008 to its closure in September 2012, Catalyst operated a recycled newsprint mill at Snowflake, Arizona. For better year-to-year comparability, the operation of this mill is not factored into most environmental performance metrics included in this report. It is, however, included in the figures in the graph above, given the particularly significant impact that the operation of this coal-fueled mill had on energy-related metrics.

GJ – GIGAJOULESADT – AIR-DRIED TONNES OF PRODUCT

CO2e – CARBON DIOXIDE EQUIVALENT

These estimates of upstream and downstream Scope 3 GHG emissions are based on per

tonne estimates undertaken by the company as part of its WWF Climate Savers membership,

applied to 2016 production tonnage. In combination with known Scope 1 (direct) and Scope 2

(purchased energy) emissions, they result in a total carbon footprint of 1,081 kg of CO2e/tonne

of Catalyst product. This compares to industry benchmarks in the range of 2,842-2,931 kg of

CO2e/tonne. Environmental impact estimates were made using the Environmental Paper

Network Paper Calculator Version 3.2.1. For more information visit www.papercalculator.org.

Greenhouse gas (GHG) emissions (Scopes 1 and 2) are reported based on measurement and calculation methodologies consistent with the Western Climate Initiative and mandatory reporting required by the Province of British Columbia.

Scope 1 emissions are those coming directly from our mills and other sources that we own or control. Scope 2 emissions are those associated with the generation of the electricity that we buy. Scope 3 emissions are all indirect emissions (other than Scope 2) that occur along our value chain – either upstream in relation to the inputs we buy, or downstream as our products get shipped and used.

DIRECT GHG EMISSIONS (SCOPE 1) INDIRECT GHG EMISSIONS (SCOPE 2) ENERGY MIX RENEWABLE ENERGY & INTENSITY OF ENERGY USE

1200

800

400

0

300

200

100

0

65

52

39

26

13

0

35

28

21

14

7

0

100

80

60

40

20

0 2012 2013 2014 2015 2016 2012 2013 2014 20151 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

(THOUSAND TONNES CO2e/YR) (THOUSAND TONNES CO2e/YR) (MILLION GJ) (GJ/ADT)(%)(KG CO2e/ADT) (KG CO2e/ADT)

1200

800

400

0

300

200

100

0

LOOKING AHEADnn Catalyst’s competitive position will be supported by the provincial

government’s decision to eliminate PST on electricity purchases over

two years.

nn A key challenge for energy managers will be to determine appropriate

energy efficiency baselines and targets as mills more frequently shift

production between increasingly diverse product lines.

ENERGY & CARBON

ENERGY USE & CARBON MANAGEMENT

ABSOLUTE(THOUSAND TONNES CO2e/YR)

ABSOLUTE(THOUSAND TONNES CO2e/YR)

ABSOLUTE ENERGY USE(GJ MILLIONS)

INTENSITY(KG CO2e/ADT)

INTENSITY(KG CO2e/ADT)

FOSSIL FUELS

BIOMASS FUELS

ALTERNATIVE FUELS

ELECTRICAL ENERGY

% RENEWABLE INTENSITY OF TOTAL ENERGY USE (KG CO2e/ADT)

61+5+17+17+ABIOMASS FUELS (WASTE WOOD BARK) 61%

ALTERNATIVE FUELS (OTHER WASTE MATERIALS) 5%

ELECTRICAL ENERGY 17%

FOSSIL FUEL 17%

ENERGY SOURCES

TOTAL GHG EMISSIONS (SCOPE 1, 2 & 3) (TONNES)

Scope 1 1,159,429

Scope 2 309,562

Scope 3 930,764

Total 2,399,755

75%OF ENERGY CONSUMED BY CATALYST COMES FROM RENEWABLE SOURCES


STAYING TRUE TO OUR VALUES, WE:nn Work to improve the quality of our

wastewater while refining environmental

monitoring.

nn Maximize treatment of all waste

streams before release back into the

receiving environment.

nn Collaborate with stakeholders and

proactively manage for the impacts

of climate change on our community

water basins.

nn Participate in the Carbon Disclosure

Project’s water disclosure report.

OTHER 2016 OUTCOMES AND INITIATIVESnn Water use increased at most of our operations

and corporate-wide reflecting a shift to

lighter papers and more specialized grades.

Total use of cooling water, was down, with

the shutdown of a boiler at Biron being a

contributing factor (see page 37).

nn Powell River maintained excellent effluent-

treatment performance. Producing more

high-bright paper grades requires a larger

mass of the microbes used in effluent

treatment, demanding careful monitoring

to prevent overloading. This fine balance

was maintained even during long high-

bright runs.

nn Crofton experienced stability challenges

with its effluent-treatment facility in

October and November, resulting in two

related permit non-compliances and a spill

of storm water runoff (see page 61).

Mill production was curtailed for a week

as the operation was returned to normal.

This was the main contributor to higher

corporate-wide Biochemical Oxygen

Demand (BOD) levels in effluent.

LOOKING AHEADnn Rumford will continue to pursue site-specific

limits for metals in its effluent, consistent

with the findings of a recent assessment

of the Androscoggin River’s capacity to

assimilate them. State regulators support

the limits proposed and work continued at

year-end to secure agreement of the federal

Environmental Protection Agency, which

helped develop the work plan for the

assessment.

WATER USE & QUALITYWATER

SUSTAINING THE COWICHAN RIVERnn A third consecutive year of drought resulted

in significant water-management challenges

impacting the Cowichan River. This is the

source of water for the community and the

Crofton mill, and its summertime flows are

regulated by a weir which Catalyst is

licensed to operate.

nn As water supplies ran close to depletion in

September, Catalyst installed and tested a

set of 20 high-volume pumps to move

water from the lake to the river. October

rains arrived in time, although $1 million

was spent on the pumping and other water

management efforts.

A River RevivedToday’s Androscoggin River – near the Rumford mill – provides

fishing, wildlife habitat and recreational opportunities. But

it was once one of the most polluted in the United States.

The Androscoggin River Watershed Council – which includes

Catalyst representation – organizes an annual canoe and

kayak trip from its source on the Maine-New Hampshire

border to the Atlantic. Participants here paddle down the river.

PROCESS WATER DISCHARGES

2012 2013 2014 2015 2016

160

120

80

40

0

80

60

40

20

0

(MILLION M3/YEAR) (M3/ADT)

ABSOLUTE(MILLION M3/YEAR)

INTENSITY(M3/ADT)

Consistent with standard industry practice, we track our water use based on treated effluent discharges, consisting of water use in manufacturing processes.

In 2016, an additional 102 million m3 of water was used for cooling purposes, but did not come into direct contact with manufacturing processes.

ADT – AIR-DRIED TONNE OF PRODUCT

TOTAL BOD – BIOCHEMICAL OXYGEN DEMAND

2012 2013 2014 2015 2016

3

2

1

0

0.9

0.6

0.3

0

(THOUSAND TONNES/YEAR) (KG/ADT)

ABSOLUTE(THOUSAND TONNES/YEAR)

INTENSITY(KG/ADT)

TOTAL TSS – TOTAL SUSPENDED SOLIDS

2012 2013 2014 2015 2016

6

4

2

0

2.4

1.6

0.8

0

(THOUSAND TONNES/YEAR) (KG/ADT)

ABSOLUTE (THOUSAND TONNES/YEAR)

INTENSITY(KG/ADT)

ABSOLUTE (TONNES/YEAR)

TOTAL AOX – ADSORBABLE ORGANIC HALIDES

240

160

80

0

0.6

0.4

0.2

0 2012 2013 2014 2015 2016

(TONNES/YEAR) (KG/ADT)

INTENSITY(KG/ADT)


STAYING TRUE TO OUR VALUES, WE:nn Reduce our energy use and transition

to lower-emission fuels and production

processes.

nn Consistently use state-of-the-art pollution

control equipment, combined with

air-quality monitoring where requested

by regulators.

nn Reduce solid waste generation, and

find opportunities to beneficially re-use

such wastes rather than sending them

to a landfill.

ADT – AIR-DRIED TONNES OF PRODUCT

1 In 2012, Catalyst began selling some electricity externally at Powell River, and in 2015 it began doing so more extensively with the acquisition of the Rumford mill. The emissions above and at right are those attributable to paper production (figures for 2012-2014 have been adjusted). See page 49 for a quantification of the much smaller amount of GHGs and other air emissions attributable specifically to the production of power for sale.

2 Based on actual test results; NPRI data may differ due to the use of emission factors and the inclusion of other sources. See page 59.

SOLID WASTE & AIR EMISSIONSOUTPUTS

nn The shutdown of a boiler at Biron in May

ended the use of high-sulphur coal, and

resulted in a step-change improvement in

the mill’s air-emissions performance. The

outcome of this work also drove material

reductions in corporate-wide emissions.

nn 2017 promises to deliver greater reductions

for the entire year.

BIRON EMISSIONS PERFORMANCE

REDUCTION 2016 FROM 2015 (ABSOLUTE)

Particulate 68%

Sulphur dioxide 56%

Nitrous oxide 44%

Greenhouse gases 23%

nn See page 37 for more details.

AIR EMISSIONS IMPROVEMENT AT BIRON

TOTAL AIR PARTICULATE 1, 2

2012 2013 2014 2015 2016

900

600

300

0

0.9

0.6

0.3

0


ABSOLUTE (TONNES/YEAR)



INTENSITYKG/ADT

INTENSITYKG/ADT

INTENSITYKG/ADT

INTENSITYKG/ADT

TOTAL NITROGEN OXIDES1 TOTAL SULPHUR DIOXIDES1,2

6.0

4.0

2.0

0

9.0

6.0

3.0

0

3.0

2.0

1.0

0

3.9

2.6

1.3

0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

(THOUSAND TONNES/YEAR) (THOUSAND TONNES/YEAR)(KG/ADT) (KG/ADT)

1 In 2012, Catalyst began selling some electricity externally at Powell River, and in 2015 it began doing so more extensively with the acquisition of the Rumford mill. The total emissions above are those attributable to paper production. See page 49 for a quantification of the much smaller amount of GHGs and other air emissions attributable specifically to the production of power for sale.

2 All figures based on actual test results; NPRI data (see page 59) may differ because it uses emission factors and includes other sources.

ABSOLUTE(TONNES/YEAR)

TOTAL TRS – TOTAL REDUCED SULPHUR 1, 2

240

160

80

0

0.3

0.2

0.1

0 2012 2013 2014 2015 2016


3 Release of dioxin and furan into air, effluent and landfill. Results are heavily influenced by factors such as operating conditions and fuel characteristics and are often highly variable. All operation-specific emissions in 2016 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.


TEQ – DIOXIN TOXICITY EQUIVALENCE

ABSOLUTE(GRAMS/YEAR)

INTENSITY(MG/ADT)

TOTAL DIOXIN & FURAN RELEASES 3

90

60

30

0

.03

.02

.01

0 2012 2013 2014 2015 2016

(GRAMS/YEAR) (MG/ADT)


2016 TARGET 181

2016 ACTUAL 177

54+31+15+ASOLID WASTE & AIR EMISSIONSOUTPUTS

SOLID WASTES (TONNES)

TOTAL:264,853 Cleanup Follows

Crofton IncidentOn August 13, the Crofton mill

experienced an equipment malfunc-

tion which resulted in the ejection

of some spent cooking liquid into

the air.

Composed of organic residues that

are a byproduct of wood processing,

these materials are harmless and are

normally collected and combusted.

Impacts were primarily contained to

a residential area immediately south

of the mill. Catalyst dispatched

teams of employees to clean

houses, vehicles and other items.


SOLID WASTE TO LANDFILL

2012 2013 2014 2015 2016

150

100

50

0

90

60

30

0

(THOUSAND TONNES) (KG/ADT)

ABSOLUTE (THOUSAND TONNES)

TO LANDFILL:141,705 (54%)

INCINERATED FOR ENERGY GENERATION:82,253 (31%)

OTHER BENEFICIAL RE-USE:40,895 (15%)

INTENSITY(KG/ADT)


Cutting process steam consumption was vital to enabling the shutdown of the high-sulphur

coal boiler at Biron, which in turn significantly improved air emissions. To help make this

possible, Biron targeted and achieved the following performance. (See page 21 for more

context on targets.)

PROCESS STEAM CONSUMPTION(KLBS/HR) AVERAGE

0 50 100 150 200

2016 OUTCOMES AND INITIATIVES: SOLID WASTEnn Innovative arrangements continued for

the beneficial re-use of waste products

from Catalyst mills. This included the use

of 26,357 tonnes of fly ash from Rumford

as a stabilizing material at a Quebec landfill,

and of 7,250 tonnes of sludge (mostly

residual wood fibre) from Biron as an

agricultural fertilizer.

nn Port Alberni disposed of 17,000 m3 of

sludge dredged from a waste treatment

lagoon, consistent with the terms of the

lagoon’s sale by Catalyst to the City of

Port Alberni in 2013.

nn Rumford decreased the amount of sludge

going to landfills from 12,221 tonnes/year

in 2015 to 6,293 tonnes/year in 2016.

OTHER 2016 OUTCOMES AND INITIATIVES: AIR EMISSIONSnn After improvement in 2015, Crofton

experienced visible particulate emissions

from its biomass boiler, which was shut

down for several days for cleaning and

inspection. While the resolution of a

specific mechanical failure improved

performance, investigation continued

to year end. This issue contributed to

the substantial increase in complaints

received at the mill.

In total, 46 per cent of all waste generated at Catalyst operating

facilities was either burned to generate electricity or put to some

beneficial re-use.


THE RESULTS: ENVIRONMENTAL DATA


EMISSIONS ATTRIBUTABLE TO POWER SALES

In 2012, Catalyst began selling some electricity externally at Powell River, and in 2015 it began doing so more extensively with the acquisition

of the Rumford mill. Most GHG and other air emissions reported elsewhere in this report are those attributable to paper production. The figures

below represent the much smaller amount of air emissions attributable specifically to the production of power for sale.

2012 2013 2014 2015 2016

Historical Power Sales (MWh) 119,400 97,270 89,293 114,297 139,851

Direct GHG Emissions (Scope 1)

Absolute (THOUSAND TONNES CO2e/YEAR) 41.2 11.9 11.6 1.9 2.0

Intensity (KG CO2e/MWh) 345 123 130 18 15

Total Air Particulate

Absolute (TONNES/YEAR) 21.2 6.0 5.8 1.3 1.0

Intensity (KG/MWh) 0.18 0.06 0.07 0.01 0.01

Total Sulphur Dioxides

Absolute (TONNES/YEAR) 70 31 41 8 7

Intensity (KG/MWh) 0.58 0.32 0.45 0.07 0.05

Total Nitrogen Oxides

Absolute (TONNES/YEAR) 307 148 157 28 24

Intensity (KG/MWh) 2.57 1.52 1.76 0.27 0.17

COMMUNITY COMPLAINTS POWER SALE EMISSIONSENVIRONMENTAL DATA

TOTAL COMPLAINTS BY SITE

We track and investigate all complaints received from our operating communities, and use this information to improve our operations and

moderate our impacts. An issue with particulates at Crofton (see page 44) was the cause of a spike in complaints during 2016.

2016 ODOUR NOISE PARTICULATE OTHER* TOTAL

Port Alberni 0 0 0 1 1

Biron 0 0 0 0 0

Crofton 10 0 84 5 99

Powell River 2 11 0 0 13

Rumford 1 0 0 0 1

Total 13 11 84 6 114

Total 2015 17 5 6 8 36

Change 4 6 78 2 78

* Includes complaints proven not to be associated with mill operations.


BENCH MARK 2012 2013 2014 2015 2016

BIRON1

Total GHGs as kg CO2e/year (SCOPE 1/DIRECT) 494,488,000 446,986,000 460,202,000 491,576,000 379,712,000

Total GHGs as kg CO2e/adt (SCOPE 1/DIRECT) 1,460 1,331 1,394 1,521 1,189

Total GHGs as kg CO2e/year (SCOPE 2/INDIRECT) 310,846,000 305,510,000 264,255,000 220,060,000 241,451,000

Total GHGs as kg CO2e/adt (SCOPE 2/INDIRECT) 918 910 801 681 756

Particulate matter kg/day 773 816 1,076 840 272

Particulate matter kg/adt 2.720 0.833 0.887 1.190 0.948 0.311

Sulphur Dioxides kg/day 15,749 14,735 16,305 15,915 6,939

Sulphur Dioxides kg/adt 14.51 16.97 16.01 18.03 17.97 7.93

NOx kg/day 6,549 5,743 6,078 6,076 3,421

NOx kg/adt 4.99 7.06 6.24 6.72 6.86 3.91

Power Boiler Dioxin ng/m3 TEQ 0.00 0.00 0.00 0.00 0.00

CROFTONTotal GHGs as kg CO2e/year (SCOPE 1/DIRECT) 2 162,266,000 135,050,000 147,052,000 140,403,000 170,413,000

Total GHGs as kg CO2e/adt (SCOPE 1/DIRECT) 2 236 196 206 201 256



Particulate matter kg/day 3 1,120 1,180 1,142 985 1,115

Particulate matter kg/adt 3 3.00 0.56 0.61 0.56 0.49 0.61



NOx kg/day 2,503 2,648 2,482 2,393 2,302

NOx kg/adt 5.00 1.27 1.34 1.22 1.20 1.27

TRS kg/day 214 212 170 253 225

TRS kg/adt 0.200 0.210 0.162 0.234 0.124

Power Boiler adt ng/m3 TEQ 0.01 0.02 0.03 0.03 0.03

Ambient TRS % compliance A level 24 hour average 80.0 84.9 91.7 93.1 87.0

Ambient PM 2.5 average, ug/m3 4 7.5 4.2 6.9 7.5 4.8

BENCH MARK 2012 2013 2014 2015 2016

PORT ALBERNITotal GHGs as kg CO2e/year (SCOPE 1/DIRECT) 5 28,850,000 28,727,000 29,981,000 30,314,000 38,087,000




Particulate matter kg/day 23 21 50 15 19


Sulphur Dioxides kg/day 427 512 542 542 555


NOx kg/day 695 856 975 890 644

NOx kg/adt 4.99 0.77 0.99 1.07 1.03 0.71



POWELL RIVER 6

Total GHGs as kg CO2e/year (SCOPE 1/DIRECT) 7 56,288,000 39,453,000 36,860,000 42,997,000 56,279,000




Particulate matter kg/day 79.5 54.0 50.7 79.6 73.0


Sulphur Dioxides kg/day 261 280 352 484 518

Sulphur Dioxides kg/adt 14.51 .213 .218 .306 .500 .555

NOx kg/day 1,148 1,338 1,365 1,771 1819

NOx kg/adt 4.99 0.94 1.04 1.19 1.83 1.95


Ambient TRS % compliance A level 24 hour average 97.8% 95.1% 91.8% 98.1% 95.9


RUMFORD 6

Total GHGs as kg CO2e/year (SCOPE 1/DIRECT) 429,265,000 459,161,000 461,749,000 497,157,000 512,900,000

Total GHGs as kg CO2e/adt (SCOPE 1/DIRECT) 702 768 816 928 905

Total GHGs as kg CO2e/year (SCOPE 2/INDIRECT) 8 14,682,000 18,178,000 18,108,000 37,604,000 42,531,000

Total GHGs as kg CO2e/adt (SCOPE 2/INDIRECT) 8 24 30 32 70 75

Particulate matter kg/day 507 404 394 370 441




NOx kg/day 4,104 4,027 4,136 4,130 3,956

NOx kg/adt 4.61 2.45 2.46 2.67 2.81 2.55

TRS kg/day 57 43 40 41 41

TRS kg/adt 0.450 0.046 0.036 0.034 0.040 0.030

AIR EMISSIONS

INDUSTRY BENCHMARKS: Estimates made using the Environmental Paper Network Paper Calculator Version 3.2.1 – www.papercalculator.org

1 Biron’s air emission performance was substantially improved by the shutdown of a boiler using high-sulphur coal. See discussion page 37.

2 Increased scope 1 GHGs resulted from a nearly one-third increase in fossil fuel use, which was driven by several factors. Generation from wood waste and other renewable sources was down, due to fuel quality and various operational issues. Colder-than-usual winter weather, combined with operational issues impacting the mill’s evaporator (where waste material is concentrated for use as fuel) also increased steam and fossil fuel consumption. 2015 values have been adjusted to correct for a calculation error.

3 Increased particulates originated with the mill’s biomass boiler, see discussion on page 44.

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

5 Increased scope 1 GHGs resulted from increased production of heavier grades requiring more steam to dry, in addition to various mechanical and operational issues with a boiler. A two-day maintenance shut took place in early 2017 to address the latter.

6 In 2012, Catalyst began selling some electricity externally at Powell River, and in 2015 it began doing so more extensively with the acquisition of the Rumford mill. The GHG and other emissions reported here are those attributable to paper production (past years’ figures have been adjusted). See page 49 for a quantification of the much smaller amount of GHGs and other air emissions attributable specifically to power production for sale.

7 Increased scope 1GHGs resulted from challenges with the quality of available waste bark fuel, due to weather conditions in supply areas, which necessitated greater use of natural gas.

8 Rumford Scope 2 GHGs were significantly under- reported for 2015, and this has been corrected.

ADT – AIR-DRIED TONNES OF PRODUCTNG – NANOGRAMPM – PARTICULATE MATTERTEQ – DIOXIN TOXICITY EQUIVALENCEUG – MICROGRAM

ENVIRONMENTAL DATA


BENCH MARK 2012 2013 2014 2015 2016

BIRONTSS kg/day 756 735 704 981 798

TSS kg/adt 6.8 0.8 0.8 0.8 1.1 0.9

BOD kg/day 372 476 350 696 758

BOD kg/adt 4.08 0.40 0.52 0.39 0.79 0.87

Trout toxicity % compliance 100 100 100 100 100

CROFTONTSS kg/day 3,045 3,541 4,995 6,652 5,471

TSS kg/adt 8.6 1.7 1.9 2.6 3.4 3.0

BOD kg/day 1 1,464 1,850 2,105 2,269 3,488

BOD kg/adt 5.10 0.78 0.98 1.07 1.17 1.92

AOX kg/day 396 446 499 353 333

AOX kg/adt pulp 0.32 0.41 0.48 0.34 0.35

2378TCDD ppq ND ND ND ND ND

2378TCDF ppq ND ND ND ND ND


PORT ALBERNITSS kg/day 693 905 840 1,310 1,009

TSS kg/adt 6.8 0.8 1.1 0.9 1.5 1.1

BOD kg/day 410 410 400 490 490

BOD kg/adt 4.08 0.46 0.48 0.44 0.56 0.54


POWELL RIVERTSS kg/day 2 1,822 1,909 1,801 1,693 2,100

TSS kg/adt 6.8 1.5 1.6 1.6 1.1 1.4

BOD kg/day 786 956 949 908 910

BOD kg/adt 4.08 0.63 0.79 0.83 0.61 0.60

Trout toxicity % compliance 98 98 93 100 100%

RUMFORDTSS kg/day 1,963 2,370 2,782 2,387 1,911

TSS kg/adt 8.1 1.2 1.5 1.8 1.6 1.3

BOD kg/day 923 1,085 1,707 1,069 1,213

BOD kg/adt 4.37 0.55 0.66 1.10 0.72 0.79

AOX kg/day 431 368 383 259 274

AOX kg/adt pulp 0.26 0.22 0.25 0.22 0.22

SOLID WASTE TO LANDFILL (TONNES)

2012 2013 2014 2015 2016

Biron 16,426 17,769 20,031 23,116 18,813

Crofton 16,305 16,991 15,673 21,850 20,486

Port Alberni 1 14,145 13,968 17,797 19,180 25,994

Powell River 27,137 28,557 29,494 26,087 28,645

Rumford 32,032 30,551 49,579 51,998 47,768

WASTEWATER SOLID WASTEENVIRONMENTAL DATA

TOTAL WASTE GENERATION

TONNES GENERATED TONNES LANDFILLED

TONNES INCINERATED FOR

ENERGY GENERATIONTONNES FOR OTHER

BENEFICIAL REUSE

Fly ash 98,678 72,321 26,357

Effluent treatment sludges 96,739 7,236 82,253 7,250

Grate ash & sand 42,023 42,023

Dregs & grits 12,597 12,597

Other 13,071 7,529 5,542

Scrap metal 1,745 1,745

Total 264,853 141,706 82,253 40,895

In total, 46 per cent of the solid waste generated at Catalyst operating facilities in 2016 was either incinerated for energy generation or recycled

for beneficial reuse.

ADT – AIR-DRIED TONNES OF PRODUCTND – NON-DETECTABLE (TEST RESULT BELOW TWO PARTS PER QUADRILLION)2378TCDD, 2378TCDF – SPECIFIC DIOXIN AND FURAN CONGENERS IN WASTE WATER


1 Increased BOD resulted from periods in January and in October/November when the mill was experiencing poor effluent-treatment performance. See pages 40 and 61.

2 The more intensive primary effluent treatment requirements associated with high-bright paper grade production resulted in higher levels of solids. While solids are settled out at the secondary effluent treatment stage, levels in released effluent also increased.

1 The City of Port Alberni purchased a former mill lagoon and disposed of a large volume of sludge dredged from it. See discussion page 44.


BENCH MARK 2012 2013 2014 2015 2016

BIRON*

Process water use m3/adt 82 27 26 30 28 25

Fuel energy usage GJ 5,541,153 5,295,434 5,188,244 5,831,543 4,583,887

Fuel energy intensity GJ/adt 16.36 15.77 15.72 18.04 14.35

Electricity usage MWh 753,179 736,672 718,143 736,872 720,826

Electricity intensity MWh/adt 2.22 2.19 2.18 2.28 2.26

Total energy usage excluding self-generated electricity GJ 7,304,476 7,062,602 6,796,263 7,505,136 6,445,771

Total energy intensity excluding self-generated electricity GJ/adt 37.00 21.57 21.03 20.59 23.21 20.18

Renewable energy (%) 11 8 11 7 12 19

CROFTONProcess water use m3/adt 97 76 74 74 62 69



Electricity usage MWh 1,341,168 1,349,254 1,333,768 1,302,701 1,209,171





PORT ALBERNIProcess water use m3/adt 82 66 76 76 84 94








BENCH MARK 2012 2013 2014 2015 2016

POWELL RIVERProcess water use m3/adt 82 72 73 77 86 91



Electricity usage MWh 1,371,250 1,378,152 1,359,564 1,162,405 1,175,151





RUMFORDProcess water use m3/adt 89 68 69 75 77 77








WATER & ENERGY USE

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

Total energy metrics reflect the production of forest products and electricity sold to the grid.

ADT – AIR-DRIED TONNES OF PRODUCTGJ – GIGAJOULESMWh – MEGAWATT-HOURS

ENVIRONMENTAL DATA

* Biron’s gross thermal energy use dropped due to the shutdown of a boiler using high-sulphur coal, and other related conservation initiatives. See discussion page 37.



2012 2013 2014 2015 2016

BIRONFibre use by type – tonnes

Wood chips 1,879 1,177 183 583 1,127

Pulp logs 195,470 188,204 182,919 186,420 178,454

Purchased virgin pulp 83,067 81,432 83,468 76,008 87,345

Purchased recycled pulp (recovered paper) 22,278 12,491 13,100 3,795 2,523

Chain of custody fibre certification / Audited fibre

FSC certified % 23 23 23 36 25

PEFC/SFI certified (incl. ATF) % 4 8 7 8 8

Master Logger 5 7 6 12 5

Total fibre (t) 303,000 283,000 280,000 267,000 269,000

Fibre from private lands % 85 86 88 92 89

CROFTON PAPERFibre use by type – tonnes

Wood chips 280,000 298,000 286,000 273,000 248,000

Pulp logs 11,000 13,000 19,000 23,000 29,000


FSC certified % 0.00 0.03 0.00 0.00 0

PEFC/SFI certified % 47 36 43 36 38

Total fibre (t) 291,000 311,000 305,000 296,000 277,000


CROFTON PULPFibre use by type – tonnes

Wood chips 770,000 725,000 765,000 791,000 797,000

Pulp logs 91,000 69,000 70,000 56,000 29,000


FSC certified % 0.79 0.25 0.00 0.00 0


Total fibre (t) 861,000 794,000 835,000 847,000 826,000


2012 2013 2014 2015 2016

PORT ALBERNIFibre use by type – tonnes

Wood chips 97,000 115,000 127,000 108,000 117,000

Pulp logs 118,000 88,000 85,000 90,000 93,000

Purchased virgin pulp 9,207 13,294 13,216 14,711 10,149



PEFC/SFI certified % 70 59 64 71 63

Total fibre (t) 224,000 216,000 225,000 213,000 220,000


POWELL RIVERFibre use by type – tonnes

Wood chips 362,000 364,000 347,000 302,000 302,000


FSC certified % 2.18 0.00 0.00 0.00 0.00


Total fibre (t) 362,000 364,000 347,000 302,000 302,000


RUMFORDFibre use by type – tonnes

Wood chips 183,123 209,067 246,286 154,229 125,361

Pulp logs 759,453 724,645 652,245 707,752 776,813

Purchased virgin pulp 344 649 355 6,512 639

Purchased recycled pulp (recovered paper) 4,080 3,618 3,996 3,396 3,757




Master Logger 5 15 18 16 15

Total fibre (t) 947,000 938,000 903,000 872,000 907,000

Fibre from private lands % 100.0 99.8 99.6 99.3 95.7

FIBRE USE BY MILLENVIRONMENTAL DATA

“Fibre from private lands” for Canadian operations are estimates, and improved metrics are being explored.


TOTAL KEY MATERIALS USED AS TONNES

2012 2013 2014 2015 2016

Water 159,570,826 142,826,856 153,194,662 271,367,951 260,513,080

Wood chips and pulp logs 1,673,561 1,663,248 1,701,108 3,156,934 3,149,342

Biofuel (“waste bark”) 748,813 744,787 741,249 938,322 984,032

Fossil fuels 309,339 61,307 64,833 460,374 446,159

Calcium Carbonate (GCC & PCC) 117,457 109,927 110,589 266,436 290,039

Clay 75,289 63,341 61,442 188,327 194,105

Purchased pulps 9,207 13,294 13,759 104,958 121,106

Oxygen 55,919 57,704 57,143 59,491 54,699

Limestone/Quicklime 5,963 4,857 2,544 46,657 41,593

Sodium Hydroxide 30,126 27,784 27,769 39,808 40,669

Sodium Chlorate 17,552 17,843 19,657 37,377 39,529

Sulphuric Acid 1 15,611 13,490 13,791 27,449 28,676

Starch 10,993 8,998 9,152 27,593 26,505

Hydrogen Peroxide 17,927 14,577 15,997 18,383 18,581

Latex 4,306 4,367 3,790 12,452 11,890

Silicate 10,533 6,757 7,349 8,206 8,813

Sulphur Dioxide 8,691 8,464 8,510 7,744 7,298

Urea 6,256 5,972 6,301 5,933 5,347

Legislation in both Canada and the U.S. 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 by the U.S. Environmental Protection Agency in the Toxics Release Inventory (TRI), 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 TRI for all of Catalyst’s operations.

Since releases are reported in the spring for the previous calendar year, 2016 data were not yet available when this report was prepared.

Speciated PAHs, while reported individually to Environment Canada, are reflected in the table above as part of the “Sum of PAHs.”

2015 data includes the Biron and Rumford facilities.

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

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 used to calculate water use intensity) includes only treated effluent.

Fossil fuels are also reported as gigajoules of heating value on page 36.

SALEABLE PRODUCTION BY MILL AS TONNES

2012 2013 2014 2015 2016

Biron 338,716 335,845 330,108 323,294 319,404

Crofton 688,722 688,774 715,542 697,243 665,169

Port Alberni 324,231 312,594 333,040 314,608 328,285

Powell River 446,732 443,466 415,032 339,771 341,979

Rumford 611,520 597,830 565,868 537,013 562,905

2015 REPORTED NPRI AND TRI EMISSIONS (NOT INCLUDING SPECIATED PAHS AND PART 5 VOCS)

2011 2012 2013 2014 2015

Tonnes

Carbon Monoxide 2,846 3,133 2,399 2,756 3,054

Nitrogen Oxides (NOx) 1,764 1,875 1,849 1,908 1,960

Sulphur Dioxide (SO2) 2,337 2,199 2,986 3,173 1,854

Hydrochloric Acid 894 866 926 906 1,021

Zinc 60 58 41 49 919

Volatile Organic Compounds (VOCs) 977 737 732 751 703

Nitrate Ion 375 661 666 623 691

Manganese 217 210 238 309 673

Methanol 536 376 374 387 520

Phosphorus, Total 363 325 360 290 383

Total Particulate Matter 401 475 457 467 373

PM 10 337 409 393 396 317

Ammonia 119 131 121 153 243

PM 2.5 238 293 278 283 222

Total Reduced Sulphur 188 146 192 174 218

Chlorine Dioxide 86 79 89 94 101

Hydrogen Sulphide 76 76 82 79 94

Sulfuric Acid 37 14 14 14 81

Barium Compounds 50

Acetaldehyde 29 17 17 18 29

Phenol 29 29 29 21 28

Copper 21

Selenium 20

Carbonyl Sulphide 10 10 10 11 11

Formaldehyde 4

Formic Acid 2

Chlorine 0.4

Cobalt 0.2

Kilograms

Lead 3,028 2,236 1,764 1,752 8,240

Arsenic 864 2,221 1,486 1,259 1,490

Sum of PAHs / PACs 864 307 242 256 474

Hexavalent Chromium Compounds 501 318 284 277 212

Cadmium 213 149 179 206 185

Mercury 129 13 13 16 42

Grams

HCB 31 512 288 300 407

Dioxins & Furans (TEQ) 40 22 21 15 16

KEY MATERIALS & PRODUCTION EMISSIONSENVIRONMENTAL DATA

1 Reported value for sulphuric acid in 2015 has been corrected.


ENVIRONMENTAL MANAGEMENT SYSTEMS

Environmental management systems are in

place at all our manufacturing facilities. In

late 2016, Biron began the process of

preparing its EMS for registration to the

ISO 14001 standard and expects to achieve

that in early 2018. Catalyst’s three B.C.

manufacturing facilities are all ISO 14001

registered.

Consistent with ISO requirements, surveillance

audits are done annually, and independent

re-registration audits every three years at all

registered operations. Separate independent

audits are conducted every three years

relating to regulatory compliance and

due diligence, and Catalyst continued its

follow-up on priority actions identified

during 2015 audits.

ENVIRONMENTAL COMPLIANCE

A total of 33 regulatory events occurred at

Catalyst mills in 2016 – down significantly

from a total of 52 in 2015. None were

classified as being of high significance.

These events involved either exceeding a

permit limit, reporting accidental releases or

disclosing procedural or other administrative

errors with which no known permit issues or

spills are associated. All such incidents are

promptly reported and their causes thoroughly

assessed.

Biron (Three events)

On two occasions, a single, six-minute

opacity spike (visible air emissions) from a

boiler resulted in a permit non-compliance.

Both resulted from a disruption in the mix and

distribution of fuel, following an interruption

in the feeding of biomass fuel (wood waste)

into the boiler.

1 Low significance: Poses no threat to people or environment. Medium significance: Poses a limited threat to people or environment. High significance: Poses material threat to people or environment.

2016 EVENTS

IMPACT SIGNIFICANCE 1

TOTAL WATER AIR LAND LOW MED HIGH

Permit Non-Compliances 20 3 16 1 7 13 0

Reportable Releases 5 2 2 1 4 1 0

Administrative Errors 8 2 3 3 5 3 0

EVENTS BY OPERATION

TOTAL 2 ALBERNI BIRON CROFTON ELK FALLS POWELL RUMFORD SNOWFLAKE

2016 33 1 3 14 na 3 12 na

2015 52 4 4 20 na 8 16 na

2014 30 3 2 10 na 17 26 na

2013 28 6 0 12 na 10 16 na

2012 65 1 4 19 11 26 8 8

REGULATORY COMPLIANCE

BOD levels in treated effluent were above

permit once in January, as a result of a spill

of pulping liquor into the mill’s sewer

system. BOD levels exceeded permit again

in October, which in turn led to an additional

non-compliance in November in relation to

an effluent toxicity test. At year end (see

page 40), effluent treatment performance

had returned to permit levels, and a root-

cause analysis relating to the two Q4

non-compliances was underway.

OTHER ISSUES

Reportable Releases: 43 kg of ozone depleting

(R22) refrigerant; an airborne release of an

unknown quantity of organic condensate

and process residues from mill operations

over a 42-minute period (see page 45); and a

release of an unknown quantity of untreated

storm water to the ocean. The stormwater

release resulted from a pumping deficiency,

discovered during efforts to improve surface

runoff capture and treatment in response to

the BOD and toxicity issues described above.

Administrative Errors: Continuous chlorine

dioxide emissions monitoring at the bleach

plant temporarily failed; and on two occasions

emissions stack testing was conducted at

below the required minimum production rates.

Port Alberni (One event)

A small amount of diesel fuel (estimated <25 l)

was released into the ocean when a small

contractor-owned boat – used to manoeuvre

floating logs – sank. Absorbents were

deployed and the vessel re-floated.

ENVIRONMENTAL DATA

An administrative error resulted from late

submission of an Industry Byproducts Annual

Certification form, relating to mill sludge that is

beneficially re-used as an agricultural fertilizer.

Crofton (14 events)

PERMIT NON-COMPLIANCES

There was one permit non-compliance for

each quarter relating to chlorine dioxide

levels in bleach plant emissions. Discussions

with regulators on a potential change in the

permit limit continue, as consistent compliance

has not been possible. Air monitoring near

the mill indicated essentially undetectable

levels of chlorine dioxide.

A single elevated test for particulate emissions

from the lime kiln occurred immediately

before a maintenance shutdown, after

which re-testing found emissions within

permit limits.

Powell River (Three events)

A single reportable release involved leachate

at the mill’s landfill (estimated <2,000 l).

A pipe used to transport collected leachate

to the wastewater treatment plant became

constricted, resulting in the release from an

air vent.

Administrative Errors: Failure to obtain a daily

effluent sample, resulting from mechanical

failure of an automated sampler (the

parameters tested for in the relevant samples

are not subject to any permit limits); and

failure to monitor a clean-water discharge

during a period when the main power boiler

and associated surface condenser were

offline for emergency maintenance.

REGULATORY COMPLIANCE EVENTS

2012 2013 2014 2015 2016

80

60

40

20

0

WATER AIR LAND

2 Totals include only Catalyst-owned facilities in the year in question (excluding Biron and Rumford prior to 2015).


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Sustainability Highlights INSIDE COVER • • •Facts & Figures INSIDE COVER • • •Catalyst-at-a-Glance 1 • • •About This Report 1 • • •Learning What’s Changed 2 • • •Case Studies 8 • • • • • • •Catalyst in Context 18 • • • • •Measuring What Matters 21 • • • •Customers & Products 22 • • •Workforce Profile 24 • • •Health & Safety 26 • •Our Operating Communities 28 • • • •Fibre & Forest Management 32 • • • • •Energy Use & Carbon Management 36 • • • •Water Use & Quality 40 • •Solid Wastes & Air Emissions 42 • • • •Environmental Data 46 •Regulatory Compliance 60 •Products 64 • • •

We self-declare our disclosure to be in accordance with GR4 core guidelines.

GLOBAL REPORTING INITIATIVE (GRI) INDEX

Rumford (12 events)

PERMIT NON-COMPLIANCES

Sulphur dioxide permit limits were exceeded

following solidification of a large amount of

ash, which required troubleshooting, shut-

down and cleaning of the boiler.

An interruption in turbine operation forced

two boilers offline; this resulted in two

non-compliances consisting of a six-minute

opacity spike (visible emissions) and a 43-

minute venting of non-condensable gas

(the latter due to an interruption in the

supply of steam used to capture the gas).

Separate additional six-minute opacity

incidents (with fuel, equipment and

procedure-related causes) constituted four

further non-compliances later in the year.

REGULATORY COMPLIANCE CONTINUED ADVANCING TRANSPARENCY & COMMUNICATING PROGRESSENVIRONMENTAL DATA

Catalyst had a corporate-wide target of total non-compliances and releases (excluding any releases of non-ODS substances) of 37 for 2016, compared to a 2015 baseline of 43. The actual total was 33 – which was substantially better than the targeted improvement. See page 21 for more context on targets.

A shutdown in the softwood bleach

plant, occurring as a result of a failure in

computerized control, resulted in scrubbing

liquids falling below the level required by

permit. A separate additional non-compli-

ance also occurred at the bleach plant,

relating to the allowable range for oxidation

reduction potential on its scrubber, and

occurring when the flow of scrubbing liquid

was obstructed.

Various deficiencies identified during a

compliance inspection, relating to stormwater

management at the mill’s landfill, resulted in

a warning letter from regulators and also

constituted a non-compliance. The deficiencies

were primarily administrative in nature and

were all subsequently addressed.

OTHER ISSUES

Two administrative errors related to missed

sampling of creosote treated wood fuel and

missed temperature monitoring of stored

tire-derived fuel.


Catalyst did not incur any significant fines or

non-monetary sanctions for non-compliance

with laws or regulations in 2016, environmental

or otherwise.


ENVIRONMENTAL PAPER ASSESSMENT TOOL Developed by GreenBlue, EPAT assesses specific paper products against seven “desired outcomes of environmentally preferred paper.”

ENVIRONMENTAL PAPER COMPANY INDEX Similar to EPAT, the EPCI was developed by the World Wildlife Fund and places particular emphasis on recycled and FSC-certified paper.

CDP (FORMERLY CARBON DISCLOSURE PROJECT) The investor-driven CDP provides a global framework for disclosure of emissions and carbon- related performance. Catalyst also participates in parallel CDP disclosure projects relating to forests and water.

Product Brand End Use

COATED FREESHEET Orion High-end magazines, upscale catalogues, direct mail, commercial print

COATED GROUNDWOOD Vision, Escanaba, Dependoweb, Capri, Consoweb (+HB)

Catalogues, commercial print applications, magazines, retail inserts, direct mail

UNCOATED FREESHEET Rumford OffsetNewsletters, catalogues, pamphlets, brochures, flyers, marketing materials, direct mail

SUPERCALENDERED Electraprime, Electracal Catalogues, magazines, retail inserts and flyers, newspapers

MACHINE FINISHED UNCOATEDElectrastar, Electrabrite, Electrabite Book

Retail inserts, books, workbooks and tablets, brochures, comics, newspapers

DIRECTORY Catalyst Telephone books, catalogues

NEWSPRINT Marathon, Marathon Lite Newspapers, retail inserts and flyers, supplements, directories

PRINTING & WRITING PAPERSCatalyst produces a full range of coated and uncoated printing

and writing papers for a variety of end uses. Our printing papers

offer the broadest product portfolio in North America, including

coated freesheet, coated groundwood, supercalendered, uncoated,

directory and newsprint.

Want to know more about product environmental footprints? Catalyst participates in these third-party disclosure projects:


KRAFT PULP: CROFTON Crofton NBSK

Printing and writing papers, office papers, photocopy papers, converting papers

Tissue, towel, hygienic grades

A wide range of specialty paper and non-paper products

KRAFT PULP: RUMFORD

Rumford NBHK

Specialty papers, magazines and a wide range of publication papers

Office papers, photocopy papers, converting papers

Household and commercial tissue, towel and hygienic grades, other consumer products

Rumford NBSK

Medium and heavy weight coated publication and specialty papers

Printing and writing papers, office papers, photocopy papers, converting papers

Household and commercial tissue, towel and hygienic grades, other consumer products

MARKET PULPCatalyst pulp is a key ingredient in making every day products

such as facial tissue, paper towel and print ing papers. We are an

established producer of Northern Bleached Softwood Kraft (NBSK)

and Northern Bleached Hardwood Kraft (NBHK) pulps for a variety

of end use applications.

PLEASE SEE WWW.CATALYSTPAPER.COM/PRODUCTS FOR MORE INFORMATION ABOUT OUR PRODUCTS.

OUR PRODUCTS


LABEL & LINER

Oxford High Bright C1S Oxford Litho C1S

Pressure sensitive face papers, glue-applied labels, box lamination, specialty envelopes, gift wrap

Glide Graphics Release liner base for commercial graphics, traffic signs, large format displays, fleet and vehicle graphics

FOOD

Leap Prime Leap Prime Matte Leap Prime Litho Leap Pinnacle Leap Premier Plus Leap Premier

Spiral cans, stand up pouches, small flat or pinch bottom bags, poly and adhesive laminated products, ice cream treats, sugar packets, wrappers

Bistro Wax Bistro Foil Bistro Bag

Food wrappers, basket liners, sub wrap, deli paper, bakery tissue, sandwich wraps, pinch/flat bottom bags

TISSUE & TOWELBreakwater AfH towel Commercial and industrial settings

SPECIALTY PAPERSOur focus during the year was developing and commercializing new

products for growing specialty markets. We launched Glide™ Graphics

release liner base paper (and promoted our Oxford line), establishing

our brand presence in the Specialty label and liner market. In Q1 2017,

we commercialized Leap™, our family of lightweight flexible packaging

paper, Bistro™ our food service paper and are committed to launch

Breakwater™, our new Away-from-Home (AfH) towel.

Catalyst Paper manufactures diverse specialty and printing papers, newsprint and pulp for converters,

retailers, publishers and commercial printers.

With mills strategically located to serve North American and global markets and ongoing social

and environmental performance and transparency, Catalyst is well regarded as a competitive major

industry player and a customer-focused operator.

64 CATALYST PAPER

PRODUCED BY JOHN CORRY, EDUARDA HODGINS AND GRAHAM KISSACK WITH FORWORDS COMMUNICATION INC.

GRI CONTENT: KEVIN HANSON

STORIES: FORWORDS COMMUNICATION INC.

CREATIVE: ION BRAND DESIGN

PHOTOGRAPHY: ALBERT NORMANDIN, BRIAN FITZPATRICK, MIKE ROEMER AND ZANE EWTON

Paper Facts Unprinted report (226 g)

Inputs

Raw fibre (g) 303

% certified sources 100

Filler (g) 84

Water (L) 19

Work (person secs) 2.4

Energy (Cal) 1,824

% renewable 58

Emissions

Greenhouse gas (g) 227*

Air particulate (mg) 70

Effluent BOD (mg) 198

Solid waste (cm3) 18

*Offset to zero

PRODUCTION NOTES

Catalyst’s Paper Facts label assures transparency by identifying key

inputs and emissions associated with all of our paper, calculated on

a per report or per tonne basis.

The outside cover is printed on Catalyst’s 80# (216 gsm) Orion Gloss

Sage™ Cover, with its brightness, superior opacity and excellent

printability making it ideal for report, catalogue, high-end insert,

commercial and direct mail print applications. The inside pages of this

report are printed on Catalyst’s 80# (118 gsm) Orion Satin Sage™ Text,

which has acid-free properties that demonstrate outstanding archival

quality, making it well suited for a wide range of print possibilities.

Both papers are produced with pride at our mill in Rumford, Maine.

Catalyst’s coated products are available under our SAGE™ program,

meaning they are either FSC, PEFC, or SFI certified as containing 100

per cent fibre from sustainably, well managed North American forests;

that there were no net carbon emissions during their manufacture;

and that detailed mill-level environmental performance data are

available. We also contribute $1 for every tonne of SAGE™ product

sold to support our partner initiatives.

CONTACTING CATALYST

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

LESLIE T. LEDERERChairman & Interim Chief Executive Officer

EDWARD (NED) DWYERChief Operating Officer

OM BHATIAExecutive Vice President & Chief Financial Officer

MATTHEW (MATT) G. STAPLETONInterim Senior Vice President, Sales & Marketing

LEN POSYNIAKSenior Vice President, Human Resources & Corporate Services

STEW GIBSON Vice President, Sourcing & Technical Services

GRAHAM KISSACKVice President, Corporate Social Responsibility 250 929 0123

MILL LEADERSHIP, COMMUNITY & ENVIRONMENTAL LIAISONS

BIRONLucas McLeod, Vice President & General Manager Chris Guldan, Environmental, Health & Safety Manager 715 425 2205

CROFTONHarold Norlund, Vice President & General Manager Brian Houle, Manager, Environment 250 246 6100

PORT ALBERNIWalter Tarnowsky, Vice President & General Manager Larry Cross, Manager, Environment 250 724 7889

POWELL RIVERFred Chinn, Vice President & General Manager Phil Lum, Manager, Environment 604 483 2912

RUMFORDRandy Chicoine, Vice President & General Manager Scott Reed, Manager, Environment 207 369 2203

SAFETY LEADAndreas Kovacs, Manager, Health & Safety 604 483 2773

We welcome reader feedback and invite you to share your thoughts

with us at [email protected].

If you’re excited about what we’re doing and want to explore a career

opportunity with Catalyst, contact us at [email protected].

Contact information is current as of September 2017.

THERE IS ONLY ENDURING ONE THING VALUES MORE …

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