2019 GRI Content Index
This report has been prepared in accordance with the GRI Standards: Core option. For the first time, our report is further indexed to the Sustainable Accounting Board Standards (SASB) (see the 2019 SASB Index). West Fraser is primarily classified by SASB in SICS Consumer Goods Sector “Building Products & Furnishings.” Information relevant to Canadian operations under SICS General Issue Categories for Forest Management and Pulp and Paper Products, are also identified in the SASB standards index for this report.
The 2019 Responsibility Report covers sustainability data for the fiscal year ending December 31, 2019 for all of West Fraser’s managed operations (as detailed in the 2019 Annual Report, page 7). Please contact [email protected] for more information about topics covered in this report.
2019 GRI Content INDEX | |||||
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 North American, diversified wood products company which produces lumber (spruce, pine and fir — “SPF”) and southern yellow pine (“SYP”). The company also produces panels (plywood, MDF), engineered wood products (LVL), pulp & paper (NBSK and BCTMP), newsprint, wood chips, other residuals and energy. Our operations in western Canada manufacture all of the company’s products, except southern yellow pine lumber, while our mills in the southern United States produce SYP lumber and wood chips. | |||
102-3 | Location of headquarters | ||||
102-4 | Location of operations | ||||
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. | |||
102-6 | Markets served | 2019 Annual Report: Markets | |||
102-7 | Scale of the organization | ||||
102-8 | Information on employees and other workers | 2019 Annual Report: Human Resources | |||
102-9 | Supply chain | 2019 Annual Report: Business Overview Contractors are subject to our Environmental Policy, Safety Policy and Fiber Sourcing requirements. When working on behalf of West Fraser, contractors, consultants, agents and anyone else are also required to comply with our Code of Conduct when acting on West Fraser’s or its subsidiaries’ behalf. | |||
102-10 | Significant changes to the organization and its supply chain | 2019 Annual Report: MD&A | |||
102-11 | Precautionary Principle or approach | Organizational Profile, climate change Environmental Policy, Environment and Product Certifications | |||
102-12 | External initiatives | ||||
102-13 | Membership of associations | ||||
102-14
| Statement from senior decision-maker | ||||
102-15
| Key impacts, risks, and opportunities | 2019 Annual Report: External Factors Affecting West Fraser’s Business and MD&A | |||
102-16
| Values, principles, standards, and norms of behavior | ||||
102-17
| Mechanisms for advice and concerns about ethics | ||||
102 - Governance | |||||
102-18
| Governance structure | 2019 Annual Report: Governance | |||
102-19
| Delegating authority | ||||
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. See also climate change reporting for specirfic details on that topic. Our Board, particularly the Health, Safety & Environmental committee, together with our executive and our senior leadership teams, set the policy and practice of our environmental, social and governance activities within our business and are responsible for monitoring our safety and environmental performance. | |||
102-21 | Consulting stakeholders on economic, environmental, and social topics | Shareholders may communicate directly with our Board and Directors as outlined in the 2020 Information Circular: Shareholder Feedback and Concerns Community consultations where we manage forests are detailed in thie report in Local Communities and on our website Public Involvement page. | |||
102-22 | Composition of the highest governance body and its committees | 2020 Information Circular: Composition of the Board | |||
102-23 | Chair of the highest governance body | Chairman of the Board: Hank Ketcham | |||
102-24 | Nominating and selecting the highest governance body | 2020 Information Circular: Board Renewal and Governance & Nominating | |||
102-25 | Conflicts of interest | 2020 Information Circular: Serving on Other Boards | |||
102-26 | Role of highest governance body in setting purpose, values, and strategy | Corporate Governance Policy: Mandate of the Board of Directors 2020 Information Circular: Mandate of the Board | |||
102-27 | Collective knowledge of highest governance body | 2020 Information Circular: Orientation Program and Continuing Education | |||
102-28 | Evaluating the highest governance body’s performance | 2020 Information Circular: Expectations of Management and Performance Reviews | |||
102-29 | Identifying and managing economic, environmental, and social impacts | Governance, Health, Safety & Environmental committee and in Timber and Forests | |||
102-30 | Effectiveness of risk management processes | Governance, Audit Committee, Health, Safety & Environmental committee | |||
102-31 | Review of economic, environmental, and social topics | Governance, Audit Committee, Health, Safety & Environmental committee | |||
102-32 | Highest governance body’s role in sustainability reporting | The Board’s Health, Safety & Environmental committee is responsible for monitoring the Company’s environmental performance and environmental systems. Our executive management team reviews and approves the annual Responsibility Report. | |||
102-33 | Communicating critical concerns | Code of Conduct sections 15. Compliance & Reporting and section 16. Whistleblower Protection | |||
102-35 | Remuneration policies | 2020 Information Circular: Executive Compensation | |||
102-36 | Process for determining remuneration | 2020 Information Circular: Advisory Resolution on the Company’s Approach to Executive Compensation (Say On Pay) and Executive Compensation | |||
102-37 | Stakeholders’ involvement in remuneration | 2020 Information Circular: Advisory Resolution on the Company’s Approach to Executive Compensation (Say On Pay) | |||
102 - StakeholdersWorking 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 | ||||
102-41 | Collective bargaining agreements | In 2019, approximately 34% of our employees were covered by collective agreements. | |||
102-42 | Identifying and selecting stakeholders | ||||
102-43 | Approach to stakeholder engagement | Stakeholders, Code of Conduct, Engaging Indigenous Peoples Community consultations where we manage forests are detailed in thie report throughout Forests & Timber, Local Communities and on our website Public Involvement page. | |||
102-44 | Key topics and concerns raised | ||||
102-45 | Entities included in the consolidated financial statements | 2019 Annual Report: Notes to Consolidated Financial Statements, Basis of Consolidation | |||
102-46 | Defining report content and topic Boundaries | ||||
102-47 | List of material topics | ||||
Operations & Value ChainSee the Operations & Value Chain page for more information. | |||||
102-48 | Restatements of information | Where data has been restated, it is identified as such where it is presented. West Fraser has not sought external assurance for all of the data presented in this report. | |||
102-49 | Changes in reporting | Where data has been restated, it is identified as such where it is presented. West Fraser has not sought external assurance for all of the data presented in this report. | |||
102-50 | Reporting period | Fiscal year: January – December | |||
102-51 | Date of most recent report | September 2019 | |||
102-52 | Reporting cycle | Annual | |||
102-53 | Contact point for questions regarding the report | Please contact: [email protected] | |||
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 all discllosures in this report, but some data and information in this report has been subject to external auditing and verification. | |||
103 Management Approach | |||||
103-1 | Explanation of the material topics and its Boundary | ||||
201 - Economic Performance | |||||
201-1 | Direct economic value generated and distributed | 2019 Annual Report: Annual Information Form and MD&A | |||
201-2 | Financial implications and other risks and opportunities due to climate change | See: climate change, also 2020 Information Circular, and 2019 Annual Report: MD&A, “Risks and Uncertainties” | |||
201-3 | Defined benefit plan obligations and other retirement plans | 2019 Annual Report: Notes to Consolidated Financial Statements | |||
201-4 | Financial assistance received from government | 2019 Annual Report: Notes to Consolidated Financial Statements, Government Assistance | |||
202 - Market PresenceSee 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 | ||||
202-2 | Proportion of senior management hired from the local community | ||||
203 - Indirect Economic ImpactsSee Community & Economic Impact for more information. | |||||
203-1 | Infrastructure investments and services supported | 2019 Annual Report: Report to Shareholders | |||
203-2 | Significant indirect economic impacts | Economic Impact | |||
204 - Procurement PracticesOur 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 significantly, 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 | ||||
205 - Anti-CorruptionWest 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 relevant 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 BehaviorOur 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 | 2019 Annual Report: Softwood Lumber Dispute | |||
301 - MaterialsWe utilize 99% of every log, and 95% of materials are purposefully reused | |||||
301-1 | Materials used by weight or volume | The most significant material input to our company is wood fibre. Operating at the capacities described in our most recent annual report (2019):
More detail: Waste and Material Efficiency, also 2019 Annual Report: Fibre and Log Supply information | |||
301-2 | Recycled input materials used | ||||
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 | |||||
302-1 | Energy consumption within the organization | ||||
302-2 | Energy consumption outside of the organization | We do not currently track this energy consumption. | |||
302-3 | Energy intensity | ||||
302-4 | Reduction of energy consumption | ||||
302-5 | Reduction of energy requirements of products and services | ||||
303 - Water Use95% of the water we use in our pulp operations is returned to the environment. | |||||
303-1 | Interactions with water as a shared resource | ||||
303-2 | Management of water discharge-related impacts | ||||
303-3 | Water withdrawl | 97.6 million m3, more: Water Use | |||
303-4 | Water discharge | 93.0 million m3, more: Water Use | |||
303-5 | Water consumption | Process: 86.4 million m3, Cooling: 11.2 million m3. More: Water Use | |||
304 – Biodiversity | |||||
304-1 | Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas | ||||
304-2 | Significant impacts of activities, products, and services on biodiversity |
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304-3 | Habitats protected or restored | ||||
304-4 | IUCN Red List species and national conservation list species with habitats in areas affected by operations | ||||
305 - Emissions | |||||
305-1 | Direct (Scope 1) GHG emissions | ||||
305-2 | Energy indirect (Scope 2) GHG 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 | ||||
305-5 | Reduction of GHG 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 | ||||
306 - Waste95% of waste materials are recovered to make products or for other beneficial purposes, and 99% of every log is utilized. | |||||
306-1 | Waste generation and significant waste-related impacts | ||||
306-2 | Management of significant waste-related impacts | ||||
306-3 | Waste generated | 11.3 million metric tonnes, more: Waste and Material Efficiency | |||
306-4 | Waste diverted from disposal | 10.8 million metric tonnes, 95% of material generated. More: Waste and Material Efficiency | |||
306-5 | Waste directed to disposal | Less than 5% of waste is directed to final disposal. More: Waste and Material Efficiency 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. | |||
307 - Environmental ComplianceSee the Environmental Performance page for more information. Also see our Environmental Policy and Certification Programs. | |||||
307-1 | Non-compliance with environmental laws and regulations | ||||
308 - Supplier Environmental AssessmentSee the Environmental Performance page for more information | |||||
308-1 | New suppliers that were screened using environmental criteria | ||||
401 - Employment | |||||
401-1 | New employee hires and employee turnover | ||||
401-2 | Benefits provided to full-time employees that are not provided to temporary or part-time employees | ||||
401-3 | Parental leave | ||||
402 - Labor/Management Relations | |||||
402-1 | Minimum notice periods regarding operational change | ||||
403 - Occupational Health and SafetyOur safety goal is to eliminate serious incidents and injuries. We have achieved a 30% lower medical incident rate (vs. 2016), and have set a target in 2020 to reduce the highest frequency serious injuries (hands and finger incidents) by 50%. Also see our Health and Safety Policy. | |||||
403-1 | Occupational health and safety management system | ||||
403-2 | Hazard identification, risk assessment, and incident investigation | ||||
403-3 | Occupational Health Services | ||||
404-4 | Worker participation, consultation, and communication on occupational health and safety | Safety | |||
404-5 | Worker training on occupational health and safety | Safety | |||
403-6 | Promotion of worker health | Safety | |||
403-8 | Workers covered by an occupational health and safety management system | The occupational health and safety statistics provided cover workers who are employees and contract workers who are not employees but whose work and/or workplace is controlled by West Fraser. More: Safety | |||
403-9 | Work-related injuries | 30% reduction in injuries (MIR) since 2016. More reporting: Safety | |||
403-10 | Work-related ill health | Safety | |||
404 - Training and EducationIt 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. | |||||
404-1 | Average hours of training per year per employee | ||||
404-2 | Programs for upgrading employee skills and transition assistance programs | ||||
404-3 | Percentage of employees receiving regular performance and career development reviews | ||||
405 - Diversity and Equal OpportunityWe believe all individuals who have the necessary qualifications should have an equal opportunity to compete for employment and advancement. West Fraser set out a workforce diversity statement in 2019. Going forward, the Company plans to actively track and report on women’s development in workforce, in leadership (supervisory) roles, and in senior leadership roles. See also Code of Conduct, section 5. Human Rights, Discrimination and Harassment. | |||||
405-1 | Diversity of governance bodies and employees | ||||
405-2 | Ratio of basic salary and remuneration of women to men | ||||
406 - Non-DiscriminationSee 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. | |||
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 | West Fraser operates manufacturing facilities and contracts work with suppliers and contractors that are both union and non-union. We respect the rights of workers to exercise freedom of association and collective bargaining. West Fraser requires all suppliers and contractors to adhere to the human rights laws of the United States and Canada. Approximately 34% of our employees are covered by collective agreements. More: Equal Opportunity | |||
408 - Child Labor | |||||
408-1 | Operations and suppliers at significant risk for incidents of child labor | Not relevant to our operations, West Fraser requires all suppliers and contractors to adhere to the human rights laws of the United States and Canada. More: Equal Opportunity | |||
409 - Forced or Compulsory Labor | |||||
409-1 | Operations and suppliers at significant risk for incidents of forced or compulsory labor | Not relevant to our operations, West Fraser requires all suppliers and contractors to adhere to the human rights laws of the United States and Canada. More: Equal Opportunity | |||
410 - Security Practices | |||||
410-1 | Security personnel trained in human rights policies or procedure | Not relevant to our operations. | |||
411 - Rights of Indigenous PeoplesWe work with more than 100 Indigenous communities and organizations in Canada | |||||
411-1 | Incidents of violations involving rights of indigenous peoples | Rights of Indigenous Peoples (included UNDRIP), Human Rights We disclose all material litigations and legal proceedings in our regulatory filings. | |||
412 - Human Rights AssessmentWe recognize our responsibility to respect human rights throughout our organization. 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 | ||||
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 | ||||
413 - Local Communities | |||||
413-1 | Operations with local community engagement, impact assessments, and development programs | Local Communities, see Forest Management Planning & Consultation in Ecosystem-Based Sustainable Forestry, Rights of Indigenous Peoples and Social Responsibility | |||
415 - Public Policy | |||||
415-1 | Political contributions | No contributions in 2019, see Public Policy section in Business Ethics. | |||
416 - Customer Health and Safety | |||||
416-1 | Assessment of the health and safety impacts of product and service categories | Product Quality & Life Cycle, which includes cradle-to-grave life cycle analysis (LCA) and Environmental Product Declarations (EPDs). | |||
416-2 | Incidents of non-compliance concerning the health and safety impacts of products and services | We are not aware of relevant health and safety incidents of noncompliance concerning our products. | |||
417 - Marketing and LabelingWe 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 | Data safety and certification information on our website about the source, certifications and safe handling is available 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 significant product labeling incidents of non-compliance concerning our products. | |||
418 - Customer PrivacyWe 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 significant privacy complaints received. See: Product Quality & Life Cycle |