Resolute Sets Target to Reduce GHG Emissions by 30%

Rhea-AI Summary

Resolute Forest Products (NYSE: RFP) announced a commitment to reduce absolute greenhouse gas (GHG) emissions by 30% from 2015 levels by the year 2025. This goal builds on an 83% reduction from year 2000 levels, amounting to nearly 700,000 metric tons of CO₂ equivalents per year. Recent initiatives include improving efficiency at facilities in Quebec, Alabama, and Ontario. Resolute aims to enhance sustainability practices, including reporting GHG emissions, and is recognized for its commitment to renewable energy, sourcing 75% of its energy from renewable sources.

Positive

• Targeting a 30% reduction in greenhouse gas emissions by 2025 from 2015 levels.
• Achieved an 83% decrease in GHG emissions since 2000.
• Plans to improve production efficiency and reduce fossil fuel use at multiple facilities.

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• None.

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MONTRÉAL, March 9, 2021 /PRNewswire/ - Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) today announced its commitment to reduce absolute greenhouse gas (GHG) emissions (scope 1 and 2) by 30% against 2015 levels by 2025. This new target builds on the company's 83% reduction in absolute GHG emissions from year-2000 levels, two-thirds of which reflect reductions in emission intensity. By achieving its target, the company will have reduced its emissions by nearly 700,000 metric tons of CO₂ equivalents per year compared to its 2015 level.

"Resolute was an early adopter of climate action as a cornerstone of our sustainability strategy," said Remi G. Lalonde, president and chief executive officer. "Setting this new target is among my first actions as CEO, demonstrating our continued focus around this important issue. Our commitment to renewable energy is good for the environment and it's good for the bottom line. Three-quarters of our total energy needs come from renewable sources such as hydroelectricity and carbon-neutral biomass, and more than 80% of our fuel energy comes from biomass. We've been scope 1 coal-free since 2014."

Some of the more recent projects on which the company is relying to achieve its commitment include:

• an efficiency enhancement at the Saint-Félicien (Quebec) pulp mill to improve production capacity and reduce fossil-fuel use by up to 20%;
• a modernization of the cogeneration turbine at the Coosa Pines (Alabama) pulp mill to reduce purchased electricity use by 6%; and
• the installation of a sophisticated heat recovery unit at the Thunder Bay (Ontario) pulp and paper mill to recover waste heat and, as a result, decrease the use of fossil fuels by over 20%.

The company also announced commitments to:

• include the previously excluded wood products facilities' GHG emissions in its GHG inventory by 2022;
• continue to report climate change data and management practices to CDP's climate change program, including scope 1, 2 and 3 emissions; and
• further integrate sustainability practices in its supply chain by working with suppliers and related stakeholders to develop scope 3 GHG emission reduction commitments.

Resolute's sustainability strategy is based on a balanced approach to environmental, social and economic performance, designed to enhance the company's competitive position. As an industry leader, the company is committed to maintaining effective sustainability oversight, governance and management practices, and has moved beyond already rigorous regulatory compliance and environmental incident management to commit to transparency and annual sustainability reporting.

Cautionary Statements Regarding Forward-Looking Information

Statements in this press release that are not reported financial results or other historical information of Resolute Forest Products Inc. ("Resolute" or "we") are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. They include, for example, statements relating to our expectations to meet greenhouse gas emission reduction targets and other targets and commitments relating to climate change, as well as strategies for achieving our goals generally. Forward-looking statements may be identified by the use of forward-looking terminology such as the words "should," "would," "could," "will," "may," "expect," "believe," "see," "anticipate," "continue," "attempt," "focus on," "improve," "challenge," "position," "maintain," "strive," "trend," "strategy," "seek," "vision," "commit," "develop," "project," "progress," "build," "pursue," "plan," "grow," "reduce," "move" and other terms with similar meaning indicating possible future events or potential impact on Resolute's business or its shareholders.

The reader is cautioned not to place undue reliance on these forward-looking statements, which are not guarantees of future performance. These statements are based on management's current assumptions, beliefs, and expectations, all of which involve a number of business risks and uncertainties that could cause actual performance to differ materially. The potential risks and uncertainties that could cause Resolute's actual future financial condition, results of operations, performance and targets to differ materially from those expressed or implied in this press release include, but are not limited to, the potential risks and uncertainties set forth under Part I, Item 1A, "Risk Factors," of Resolute's annual report on Form 10-K for the year ended December 31, 2020, filed with the U.S. Securities and Exchange Commission (or, the "SEC") on March 1, 2021 which have been heightened by the COVID-19 pandemic, including related governmental responses and economic impacts, market disruptions and resulting changes in consumer habits.

All forward-looking statements are expressly qualified by the cautionary statements contained or referred above and in Resolute's other filings with the SEC and the Canadian securities regulatory authorities. Resolute disclaims any obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

About Resolute Forest Products

Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products and papers, which are marketed in over 50 countries. The company owns or operates some 40 facilities, as well as power generation assets, in the United States and Canada. Resolute has third-party certified 100% of its managed woodlands to internationally recognized sustainable forest management standards. The shares of Resolute Forest Products trade under the stock symbol RFP on both the New York Stock Exchange and the Toronto Stock Exchange.

Resolute has received regional, North American and global recognition for its leadership in corporate social responsibility and sustainable development, as well as for its business practices. Visit www.resolutefp.com for more information.

To learn more about Resolute's climate initiatives, visit www.resolutefp.com/Sustainability. 

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SOURCE Resolute Forest Products Inc.

FAQ

What is Resolute Forest Products' new greenhouse gas emissions target?

Resolute Forest Products aims to reduce its absolute GHG emissions by 30% from 2015 levels by 2025.

By how much has Resolute reduced its GHG emissions since <b>2000</b>?

Resolute has reduced its GHG emissions by 83% since the year 2000.

What initiatives is Resolute implementing to meet its emissions target?

Resolute is enhancing efficiency at its pulp mills in Quebec, Alabama, and Ontario to reduce fossil fuel use.

What percentage of Resolute's energy needs comes from renewable sources?

Resolute sources 75% of its total energy needs from renewable sources.

What recognition has Resolute received for its sustainability efforts?

Resolute has received regional, North American, and global recognition for its leadership in corporate social responsibility and sustainable development.