Supporting Statement: Limiting global warming to 1.5? C will require reaching net-zero emissions worldwide by 2050.[1] Every sector of the economy must participate and invest in reductions to prevent the most catastrophic impacts of climate change. Approximately 12% of global emissions (5-10 gigatons of CO2 annually) comes from deforestation and forest degradation[2]. A key component of achieving global net-zero by 2050 is the decarbonization of the forestry industry and engineered wood products.

In 2021, scientists estimated that the emissions from Canada?s forestry sector were 73 megatons of CO2, nearly equal to the emissions caused by the entire province of Quebec.[3] To thrive in a carbon constrained economy, forestry and wood products companies must align their operations with net-zero by 2050 ? and implementation needs to begin now. Otherwise, they face increasing costs associated with carbon emissions, additional regulatory hurdles, and diminishing social license.[4]

In addition to climate transition risks, the physical risks posed by climate change threaten to disrupt West Fraser?s operations. Climate change is having severe impacts on the global forestry sector in the form of increased fires, floods, infestations, and fiber availability. West Fraser and its customers will be directly impacted by these events, and have been already[5]; therefore, it is in the company?s interest to demonstrate strong risk management and ensure the company is working proactively to capture opportunities.

West Fraser has taken important steps to mitigate emissions, including the company?s commitment to the Science Based Targets initiative (SBTi), the company?s current target of a Scope 1 and 2 emissions reduction target of 46.2% and a Scope 3 reduction target of 25% by 2030. Additionally, the company?s efforts to advance land-based emission calculations are noteworthy. The company has also begun its scenario analysis assessment identifying its most material physical risks and transition risks. These efforts, and numerous others, would only be bolstered by a public commitment to reach net-zero by 2050 and a robust analysis of operational risk resulting and opportunities resulting from climate change.

Companies need to have credible net-zero targets to thrive in a carbon constrained world. West Fraser would benefit from establishing a net zero target and conducting a thorough analysis of pathways to net-zero. Companies that lag their peers are more likely to face scrutiny from investors and media. If West Fraser wants to remain a global leader, the company urgently needs to adopt a net-zero target and publish a credible plan for achieving it.