GRI Standards Index

This is West Fraser’s first report prepared with the GRI Standards. GRI is a global standard for reporting on a range of economic, environmental and social impacts.

Data in this report is from both 2016 and 2017 calendar years. Please see our website www.westfraser.com to access reports related to this publication such as our Annual Report, Information Circular, Financial Statements and Governance documents. Please contact shareholder@westfraser.com for more information about topics covered in this report.

West Fraser ESG GRI Content Navigation Table

102 - Organizational Profile

102-1

Name of the organization

West Fraser Timber Co. Ltd. (“West Fraser”)

 

102-2

Activities, brands, products, and services

West Fraser is a diversified wood products company producing lumber, LVL, MDF, plywood, pulp, newsprint, wood chips and energy with facilities in Western Canada and the Southern United States.

2016 Annual Report, pages 6-14

 

2017 Annual Report, pages 8-22

 

 

 

102-3

Location of headquarters

Locations

2016 Annual Report, page 72

 

2017 Annual Report, pages 110-111

102-4

Location of operations

Locations

 

102-5

Ownership and legal form

West Fraser is a publicly traded company with shares listed on the Toronto Stock Exchange under the symbol: “WFT”.

 

West Fraser’s Certificate of Incorporation was filed with the Government of the Province of British Columbia April 29, 1954 and was most recently amended, restated and filed May 1, 2014.

2016 Annual Report, pages 6-8

2017 Annual Report, pages 10-12

102-6

Markets served

Organizational Profile

Annual Report: Markets

2016 Annual Report, pages 11-13, and 69

2017 Annual Report, pages 17-21, and 105

102-7

Scale of the organization

Organizational Profile

Annual Report

2016 Annual Report, page 38, page 2-3, and 7

2017 Annual Report, page 59, pages 3-4 and 9

102-8

Information on employees and other workers

Organizational Profile

Annual Report: Human Resources

2016 Annual Report, page 11

2017 Annual Report, page 17

102-9

Supply chain

Organizational Profile

Annual Report: Business Overview

Contractors are subject to our Environmental Policy and Safety Policy

2016 Annual Report, pages 7-14

2017 Annual Report, pages 8-22.

102-10

Significant changes to the organization and its supply chain

Annual Report: MD&A

The most significant change to operations was the acquisition of six sawmills and a finger-joint mill from the Howard Gilman Foundation in August 2017

2016 Annual Report, pages 22-43

2017 Annual Report, pages 34-68

102-11

Precautionary Principle or approach

Organizational Profile

Environmental PolicyEnvironment and  Product Certifications

 

 

102-12

External initiatives

Organizational Profile

 

102-13

Membership of associations

Organizational Profile

 

102-14

 

Statement from senior decision-maker

Report to Shareholders

2016 Annual Report, pages 4-5,

2017 Annual Report, pages 5-7

102-15

 

Key impacts, risks, and opportunities

Annual Report: External Factors Affecting West Fraser’s Business  and MD&A

2016 Annual Report, pages 13-14, MD&A pages 23-42

2017 Annual Report, pages 12-16, MD&A pages 34-68

102-16

 

Values, principles, standards, and norms of behavior

Corporate Governance Policy and Code of Conduct

 

102-17

 

Mechanisms for advice and concerns about ethics

Code of Conduct

Corporate Governance Policy Code of Conduct

Shareholder feedback

 

102 - Governance

102-18

 

Governance structure

Corporate Governance Policy

2016 Annual Report, pages 16 -19

2017 Annual Report, pages 25-29

102-19

 

Delegating authority

Corporate Governance Policy

 

102-20

 

Executive-level responsibility for economic, environmental, and social topics

West Fraser’s executive team has responsibility for one or more sustainability areas, including environmental responsibility at manufacturing sites, safety, employee development, forest management activities, governance, financial performance and stakeholder engagement.

 

The Safety & Environment Board Committee is ultimately responsible for monitoring our safety and environmental performance.

 

102-21

Consulting stakeholders on economic, environmental, and social topics

Governance

Shareholders may communicate directly with our Board and Directors as outlined in the Information Circular: Shareholder Feedback and Concerns

2017 Information Circular, pages 30

2018 Information Circular, pages 30-31

102-22

Composition of the highest governance body and its committees

Corporate Governance Policy

Information Circular: Composition of the Board

2017 Information Circular, pages 29-35 and

2018 Information Circular, pages 31-35

102-23

Chair of the highest governance body

Chairman of the Board: Hank Ketcham

2017 Information Circular, page 25-26

2018 Information Circular, page 26

102-24

Nominating and selecting the highest governance body

Information Circular: Board Renewal and Governance & Nominating

2017 Information Circular, pages 18-20, page 35

2018 Information Circular, pages 17-20, page 35

102-25

Conflicts of interest

Code of Conduct

Information Circular: Serving on Other Boards

2017 Information Circular, page 32

2018 Information Circular, page 33

102-26

Role of highest governance body in setting purpose, values, and strategy

Mandate of the Board of Directors

Information Circular: Mandate of the Board

2017 Information Circular, page 28-29

2018 Information Circular, page 29

 

 

102-27

Collective knowledge of highest governance body

Information Circular: Orientation Program and Continuing Education

2017 Information Circular, pages 35-36

2018 Information Circular, pages 35-37

102-28

Evaluating the highest governance body’s performance

Information Circular: Expectations of Management page 30 and Performance Reviews

2017 Information Circular, page 30, 18

2018 Information Circular, page 31 and 19

102-29

Identifying and managing economic, environmental, and social impacts

Governance

Safety & Environment Committee

 

102-30

Effectiveness of risk management processes

Governance

Audit Committee

Safety & Environment Committee

 

102-31

Review of economic, environmental, and social topics

Governance

Audit Committee

Safety & Environment Committee

 

102-32

Highest governance body’s role in sustainability reporting

The Board’s Safety & Environment Committee is responsible for monitoring the Company’s environmental performance and environmental systems. Our executive management team reviews and approves our Sustainability Report.

 

102-33

Communicating critical concerns

Code of Conduct sections 15. Compliance & Reporting and section 16. Whistleblower Protection

 

102-35

Remuneration policies

Information Circular: Executive Compensation

2017 Information Circular, pages 37-53

2018 Information Circular, pages 38-57

102-36

Process for determining remuneration

Information Circular: Advisory Resolution on the Company’s Approach to Executive Compensation (Say On Pay) and Executive Compensation

2017 Information Circular, pages 24-25, pages 37-53

2018 Information Circular, page 25, pages 38-57

102-37

Stakeholders’ involvement in remuneration

Information Circular: Advisory Resolution on the Company’s Approach to Executive Compensation (Say On Pay)

2017 Information Circular, pages 24-25

2018 Information Circular, page 25

102 - Stakeholders

Working effectively with our stakeholders is key to our success and embedded in our operating approach.  Since the early days of our Company, a foundational goal of West Fraser has been to develop and maintain responsibility in the communities in which we work.

102-40

List of stakeholder groups

Stakeholders

 

102-41

Collective bargaining agreements

In 2016, approximately 33% of our employees were covered by collective agreements.

 

In 2017, approximately 34% of our employees were covered by collective agreements.

 

102-42

Identifying and selecting stakeholders

Stakeholders

 

102-43

Approach to stakeholder engagement

Stakeholders

Code of Conduct

Engaging Indigenous Peoples

 

102-44

Key topics and concerns raised

Stakeholders

Stories of Responsibility

Public Involvement

 

102-45

Entities included in the consolidated financial statements

Annual Report: Notes to Consolidated Financial Statements, Basis of Consolidation

2016 Annual Report, page 50

2017 Annual Report, page 75

 

102-46

Defining report content and topic Boundaries

Stakeholders

 

102-47

List of material topics

Stakeholders

 

Operations & Value Chain

See the Operations & Value Chain page for more information.

102-48

Restatements of information

None to report.

 

102-49

Changes in reporting

None to report.

 

102-50

Reporting period

January 1, 2016 – December 31, 2017

 

102-51

Date of most recent report

March 14, 2016

 

102-52

Reporting cycle

Annual going forward

 

102-53

Contact point for questions regarding the report

Please contact: shareholder@westfraser.com

 

102-54

Claims of reporting in accordance with the GRI Standards

This report has been prepared in accordance with the GRI Standards: Core option

 

102-55

GRI content index

This page

 

102-56

External assurance

We have not sought external assurance for this report

 

103 Management Approach

See the Management Approach page for more information.

103-1

Explanation of the material topics and its Boundary

Management Approach

 

201 - Economic Performance

See the Economic Performance page for more information.

201-1

Direct economic value generated and distributed

Annual Report: Annual Information Form and MD&A

2016 Annual Report, pages 8-42

2017 Annual Report, pages 8-68

201-2

Financial implications and other risks and opportunities due to climate change

Economic Performance

Annual Information Form and MD&A, “Risks and Uncertainties”

2016 Annual Report, pages 38 – 42 and the

2017 Annual Report, pages 59 – 68

 

201-3

Defined benefit plan obligations and other retirement plans

Annual Report: Notes to Consolidated Financial Statements

2016 Annual Report, pages 57-60

2017 Annual Report, pages 86-91

201-4

Financial assistance received from government

Annual Report: Notes to Consolidated Financial Statements, Government Assistance

2016 Annual Report, page 65

2017 Annual Report, page 99

202 - Market Presence

See the Discover West Fraser pages within the Careers section on our website to learn more about our approach to recruitment and employment opportunity.

202-1

Ratios of standard entry level wage by gender compared to local minimum wage

Economic Performance

 

202-2

Proportion of senior management hired from the local community

Economic Performance

 

 

203 - Indirect Economic Impacts

See the Indirect Economic Impacts page for more information.

203-1

Infrastructure investments and services supported

Indirect Economic Impacts

Annual Report: Report to Shareholders

2016 Annual Report, pages 4-5

2017 Annual Report, pages 5-7

203-2

Significant indirect economic impacts

Indirect Economic Impacts

 

204 - Procurement Practices

Our facilities are primarily located in rural communities in the United States and Canada, where our business relies on many local contractors, partners and suppliers to provide goods and services to our mills, most materially, the log supply for our manufacturing operations.

Conflicts of interest in procurement are covered under our Code of Conduct Section 6. Conflicts of Interest and Corporate Opportunity.

204-1

Proportion of spending on local suppliers

Business Ethics

 

205 - Anti-Corruption

West Fraser obeys the anti-corruption laws in Canada and the United States, where we do business. See also our Code of Conduct Section 8. Offering or Accepting Gifts and Gratuities / Anti-Corruption

205-1

Operations assessed for risks related to corruption

West Fraser obeys the anti-corruption laws in Canada and the United States, where we do business. We conduct Bill 198 internal auditing and risk assessments regularly throughout our operations. Any material risks are disclosed in our regulatory filings.

 

205-2

Communication and training about anti-corruption policies and procedures

All Directors, members of management and substantially all salaried employees periodically confirm compliance with the Code of Conduct. Instances of non-compliance are expected to be reported to our Board.

 

205-3

Confirmed incidents of corruption and actions taken

None to report. We disclose all material litigations and legal proceedings in our regulatory filings.

 

206 - Anti-Competitive Behavior

Our Code of Conduct Section 10. Competition and Fair Dealing affirms West Fraser’s long-standing policy that its directors, officers and employees conform to the highest legal, ethical and moral standards in conducting the respective businesses of West Fraser and its subsidiaries including adhering to the laws and regulations in Canada and the United States concerning unlawful activity. All individuals subject to the Code have a responsibility to respect these laws and behave accordingly by complying with our guidelines for behaviour.

We disclose all material litigation and legal proceedings in our regulatory filings.

206-1

Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

Annual Report: Softwood Lumber Dispute

2016 Annual Report, pages 13 – 14, 32, 38 – 39, and 69

2017 Annual Report, page 35, pages 54 – 55, and 105 -106

301 - Materials

See the Fibre Utilization & Recovery page for more information.

301-1

Materials used by weight or volume

The most significant material input to our company is wood fibre.

 

Annual Report: Fibre and Log Supply information

2016 Annual Report, pages 9 - 11

2017 Annual Report, pages 12 - 16

301-2

Recycled input materials used

Fibre Utilization & Recovery

 

301-3

Reclaimed products and their packaging materials

We manufacture renewable, sustainable products that may be reused, recycled or consumed for energy generation.

 

302 - Energy

See the Energy page for more information.

302-1

Energy consumption within the organization

Energy

 

302-2

Energy consumption outside of the organization

We do not currently track this energy consumption.

 

302-3

Energy intensity

Energy

 

302-4

Reduction of energy consumption

Energy

 

302-5

Reduction of energy requirements of products and services

Energy

 

303 - Water

See the Water Use & Effluents page for more information.

303-1

Water withdrawal by source

Water Use & Effluents

 

303-2

Water sources significantly affected by withdrawal of water

Water Use & Effluents

 

303-3

Water recycled and reused

Water Use & Effluents

 

304 – Biodiversity

See the Wildlife, Habitat Management & Biodiversity page for more information.

304-1

Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

Wildlife, Habitat Management & Biodiversity

 

304-2

Significant impacts of activities, products, and services on biodiversity

 

Wildlife, Habitat Management & Biodiversity

 

304-3

Habitats protected or restored

Wildlife, Habitat Management & Biodiversity

 

304-4

IUCN Red List species and national conservation list species with habitats in areas affected by operations

Wildlife, Habitat Management & Biodiversity

 

305 - Emissions

See the Air Emissions page for more information.

305-1

Direct (Scope 1) GHG emissions

Air Emissions

 

305-2

Energy indirect (Scope 2) GHG emissions

Air Emissions

 

305-3

Other indirect (Scope 3) GHG emissions

We do not currently track other indirect (Scope 3) GHG emissions.

 

305-4

GHG emissions intensity

Air Emissions

 

305-5

Reduction of GHG emissions

Air Emissions

 

305-6

Emissions of ozone-depleting substances (ODS)

These are not material to our operations.

 

305-7

Nitrogen oxides (NOX), sulphur oxides (SOX), and other significant air emissions

Air Emissions

 

306 - Effluents and Waste

See the Waste Management page for more information.

306-1

Water discharge by quality and destination

Waste Management

 

306-2

Waste by type and disposal method

Waste Management

 

 

306-3

Significant spills

No significant spills occurred in 2016 or 2017.

 

All the jurisdictions where we operate have spill reporting legislation and our facilities comply with these regulations.

 

306-4

Transport of hazardous waste

We use authorized service providers to dispose of our hazardous waste. All of our facilities are required to appropriately manifest and track all hazardous waste in accordance with governing federal, state and provincial legislation before it is transported from our operating sites.

 

306-5

Water bodies affected by water discharges and/or runoff

No water bodies were significantly affected by water discharges or runoff from our operations in 2016 or 2017.

 

307 - Environmental Compliance

See the Environmental Performance page for more information. Also see our Environmental Policy and Certification Programs.

307-1

Non-compliance with environmental laws and regulations

Environmental  Performance

 

308 - Supplier Environmental Assessment

See the Environmental Performance page for more information

308-1

New suppliers that were screened using environmental criteria

Environmental Performance

 

401 - Employment

See the Employee Engagement page for more information.

401-1

New employee hires and employee turnover

Employee Engagement

 

401-2

Benefits provided to full-time employees that are not provided to temporary or part-time employees

Employee benefits vary from country to country, depending on national legislation. Only a small percentage of our employees are part-time (less than 5%). We therefore do not believe this measure is material for reporting purposes. 

 

401-3

Parental leave

Employee Engagement

 

402 - Labor/Management Relations

402-1

Minimum notice periods regarding operational change

We follow the labour market standards on advance notice requirements in the jurisdictions where we operate, including employment standards regulations and collective agreements.  If the Company needs to make operational changes sooner than expected, we pay employees for the notice period.

 

403 - Occupational Health and Safety

See the Worker Safety page for more information. Also see our Health and Safety Policy.

403-1

Workers representation in formal joint management–worker health and safety committees

All of our Canadian facilities have safety committees to represent their employees, and we are working towards establishing these committees in all of U.S. mills. Each individual site is responsible for arranging and maintaining such committees.

 

403-2

Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities

Worker Safety

 

403-3

Workers with high incidence or high risk of diseases related to their occupation

This is not a significant risk within our company operations.

 

403-4

Health and safety topics covered in formal agreements with trade unions

In our unionized facilities, union representatives participate in joint union-management safety committees.

 

404 - Training and Education

It is core to our company values to promote from within to build our leadership team. The overwhelming majority of our management and senior leadership teams are drawn from employees who have developed their talents and grown their career within West Fraser.

Read more about our approach to training in the Careers section of our website.

404-1

Average hours of training per year per employee

We support the learning and career development of our employees through internal training courses and externally developed training programs. We do not currently maintain a central database of employee training hours.

 

404-2

Programs for upgrading employee skills and transition assistance programs

 Training and Education

 

404-3

Percentage of employees receiving regular performance and career development reviews

 Training and Education

 

405 - Diversity and Equal Opportunity

In keeping with our commitment to human rights, our aim is to afford all individuals who have the necessary qualifications an equal opportunity to compete for employment and advancement.  We are committed to the philosophy and principle of equal employment opportunity for all present and prospective employees. 

Code of Conduct, section 5. Human Rights, Discrimination and Harassment.

405-1

Diversity of governance bodies and employees

Employee Development & Equal Opportunity

 

405-2

Ratio of basic salary and remuneration of women to men

Employee Development & Equal Opportunity

 

406 - Non-Discrimination

See the Employee Development & Equal Opportunity page for more information. Also see our Code of Conduct, section 5. Human Rights, Discrimination and Harassment.

406-1

Incidents of discrimination and corrective actions taken

Discrimination complaints are investigated by local management. At this time we do not centrally track discrimination complaints at the corporate level.

 

407 - Freedom of Association and Collective Bargaining

407-1

Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

Not material to our operations, West Fraser requires all suppliers and contractors to adhere to the human rights laws of the United States and Canada.

 

408 - Child Labor

408-1

Operations and suppliers at significant risk for incidents of child labor

Not material to our operations, West Fraser requires all suppliers and contractors to adhere to the human rights laws of the United States and Canada.

 

409 - Forced or Compulsory Labor

409-1

Operations and suppliers at significant risk for incidents of forced or compulsory labor

Not material to our operations, West Fraser requires all suppliers and contractors to adhere to the human rights laws of the United States and Canada.

 

410 - Security Practices

410-1

Security personnel trained in human rights policies or procedure

Not material to our operations.

 

411 - Rights of Indigenous Peoples

See the Rights of Indigenous Peoples page for more information.

First Nations

Annual Report: Aboriginal Matters

2016 Annual Report, pages 10 and 41

2017 Annual Report, pages 15-16 and 65-66

411-1

Incidents of violations involving rights of indigenous peoples

 

We disclose all material litigations and legal proceedings in our regulatory filings.

 

First Nations

 

Annual Report: Aboriginal Matters

2016 Annual Report, pages 10 and 41

2017 Annual Report, pages 15-16 and 65-66

412 - Human Rights Assessment

See the Human Rights Assessment page for more information. Also see Code of Conduct, section 5. Human Rights, Discrimination and Harassment.

412-1

Operations that have been subject to human rights reviews or impact assessments

Human Rights Assessment

 

 

412-2

Employee training on human rights policies or procedures

Our Code of Conduct, signed by our employees, outlines our commitment to human rights (defined by the laws of Canada and the United States).

 

All of our foresters receive training to meet the requirements of the Company’s forest management and sourcing certifications, which include human rights provisions.

 

412-3

Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening

Human Rights Assessment

 

413 - Local Communities

See the Local Communities page for more information.

413-1

Operations with local community engagement, impact assessments, and development programs

Local Communities

Responsibility

Forest Management

Social Responsibility

 

414 - Supplier Social Assessment

See the Supplier Social Assessment page for more information.

414-1

New suppliers that were screened using social criteria

Supplier Social Assessment

 

415 - Public Policy

See the Public Policy page for more information.

415-1

Political contributions

Public Policy

 

416 - Customer Health and Safety

See the Customer Health and Safety page for more information.

416-1

Assessment of the health and safety impacts of product and service categories

Customer Health and Safety

Certifications organized by product

 

Cradle-to-grave life cycle analysis is available for our Canadian-produced products LVL, MDF, plywood and softwood lumber

 

Environmental Product Declarations (EPDs): North American softwood lumber, softwood plywood and Laminated Veneer Lumber (LVL)

 

416-2

Incidents of non-compliance concerning the health and safety impacts of products and services

We are not aware of any health and safety incidents of noncompliance concerning our products.

 

417 - Marketing and Labeling

We manufacture sustainable, renewable and recyclable wood products that can be used in a wide variety of applications, often as a more environmental alternative to other construction and fossil-fuel based materials. We comply with, and regularly monitor, developments in the United States and Canada to ensure our product labeling meets and reflects regulatory requirements, where needed.

417-1

Requirements for product and service information and labeling

Products

Information is available on our website about the source, certification and safe handling for all of our products, organized by product.

 

417-2

Incidents of non-compliance concerning product and service information and labeling

We are not aware of any product labeling incidents of non-compliance concerning our products in 2016 or 2017.

 

417-3

Incidents of non-compliance concerning marketing communications

We are not aware of any noncompliance concerning the concerning marketing communications of our products in 2016 or 2017.

 

418 - Customer Privacy

We respect and uphold individual rights to privacy and the protection of personal information. West Fraser has two privacy officers identified as a point of contact to address privacy concerns.

418-1

Substantiated complaints concerning breaches of customer privacy and losses of customer data

No material privacy complaints were received by privacy officer(s) during 2016 or 2017.

 

419 - Socioeconomic Compliance

419-1

Non-compliance with laws and regulations in the social and economic area

No significant, material incident of non-compliance occurred during 2016 or 2017.