2016-2017 West Fraser Responsibility Report GRI Standards Index

1 West Fraser Sustainability Report

West Fraser Sustainability Report 2016 & 2017

Contents

102 - Organizational Profile ............................. 2

102 - Governance ............................................ 7

102 - Stakeholders ......................................... 12

201 - Economic Performance ......................... 18

202 - Market Presence ................................... 19

203 - Indirect Economic Impacts .................... 20

204 - Procurement Practices.......................... 22

205 - Anti-Corruption ..................................... 22

206 - Anti-Competitive Behavior .................... 23

301 - Materials ............................................... 23

302 - Energy .................................................. 25

303 - Water .................................................... 27

304 – Biodiversity .......................................... 29

305 - Emissions ............................................. 32

306 - Effluents and Waste .............................. 35

307 - Environmental Compliance ................... 37

308 - Supplier Environmental Assessment ..... 38

401 - Employment .......................................... 38

402 - Labor/Management Relations .............. 39

403 - Occupational Health and Safety ........... 40

404 - Training and Education ........................ 41

403 - Diversity and Equal Opportunity ........... 42

406 - Non-Discrimination ............................... 43

407 - Freedom of Association and Collective

Bargaining ............................................ 43

408 - Child Labor ........................................... 43

409 - Forced or Compulsory Labor ................ 43

410 - Security Practices ................................ 43

411 - Rights of Indigenous Peoples ............... 44

412 - Human Rights Assessment .................. 45

413 - Local Communities ............................... 46

414 - Supplier Social Assessment ................. 47

415 - Public Policy ......................................... 48

416 - Customer Health and Safety ................ 49

417 - Marketing and Labeling ........................ 50

418 - Customer Privacy ................................. 50

419 - Socioeconomic Compliance ................. 50

About This Publication 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.

2 West Fraser Sustainability 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. See more detail in:

• 2016 Annual Report, pages 6-14, and

• 2017 Annual Report, pages 8-22

102-3 Location of headquarters

• 2016 Annual Report, page 72

• 2017 Annual Report, pages 110-111

102-4 Location of operations See website: 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

See Markets:

• 2016 Annual Report, pages 11-13, and 69

• 2017 Annual Report, pages 17-21, and 105

102-7 Scale of the organization

We have 8,600 employees in more than 50 locations including operating facilities and office locations. In the United States, we operate 21 lumber mills including the acquisition of six sawmills and a finger joint mill from the Gilman Companies in 2017.

In Canada, we have 13 lumber mills, 7 engineered wood and panel facilities and 5 pulp and paper mills (two of which are 50% partnerships.) We hold harvesting licenses representing approximately 7 million hectares of certified sustainably managed forests in Canada (70,000 square kilometres).

In 2016, sales of our products were $4.5 billion. Total capital was $2.6 billion, including $417 million in long-term debt and $2.2 billion in total shareholder equity see the 2016 Annual Report,

3 West Fraser Sustainability Report

page 38. For detailed 2016 sales, capacity, production, shipments of our products see the 2016 Annual Report, page 2-3, and 7.

In 2017, sales of our products were $5.1 billion. Total capital was $3.1 billion, including $641 million in long-term debt and $2.7 billion in total shareholder equity see the 2017 Annual Report, page 59. For detailed sales, capacity, production, shipments of our products see the 2017 Annual Report, pages 3-4 and 9.

102-8 Information on employees and other workers

West Fraser’s Workforce 2016

• Human Resources, 2016 Annual Report, page 11

• 71% of our employees are in Canada, and 29% in the United

States

Employees 7,800* Lumber 5,300 Panels 1,320 Pulp, Paper & Energy 850 Corporate 330 % of women 17% Part-time employees 4.4%

West Fraser’s Workforce 2017

• Human Resources, 2017 Annual Report, page 17

• 63% of our employees are in Canada, and 37% in the United

States

Employees 8,600* Lumber 6,100 Panels 1,320 Pulp, Paper & Energy 850 Corporate 330 % of women 14% Part-time employees 4% *includes share of employees in 50%-owned operations

102-9 Supply chain

We work with thousands of local suppliers and partners in every company location. We purchase logs to supply our mills in the U.S. (100%) and Canada (approximately 20%). The majority of our fibre needs in Canada are obtained from tenures where we have government-granted licence to harvest trees. Our employees in our woodlands divisions plan and gain requisite government approvals for timber harvesting and reforestation (these plans

4 West Fraser Sustainability Report

include management of consultation activities and integration of important values such as wildlife, water, environment, culture, recreation, forest health and conservation). Contractors are employed to conduct services such as timber harvesting, tree planting, road construction and trucking related to our forestry activities. Our contractors, partners and suppliers are frequently located geographically close to our mill operations in North America. The wood products we manufacture are produced in our mill operations primarily by full-time employees who work directly for our company. Some temporary labour and staffing are used in our operational activities and for supporting administrative work. Contracted labour and suppliers in our manufacturing facilities typically provide maintenance, repair and specialized field services for capital projects, ongoing operation of our facilities and transportation of our products to market. Employees and contractors working at our operating sites are required to meet safety training standards related to their work, have the appropriate personal protective equipment and adhere to site-specific requirements, including environmental standards and regulations. Our most significant and material supply requirement is wood fibre. We also buy chemicals, fuel, electricity, manufactured parts and services, as well as logistic services such as transportation and shipping for domestic and international markets. Contractors are subject to our Environmental Policy and Safety Policy. See also the Business Overview in the 2016 Annual Report, pages 7-14 and 2017 Annual Report, pages 8-22.

102-10 Significant changes to the organization and its supply chain

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.

See Management’s Discussion & Analysis 2016 Annual Report, pages 22-43, 2017 Annual Report, pages 34-68.

102-11 Precautionary Principle or approach

We believe our business can meet the needs of the present without compromising the ability of future generations to meet their own needs. The versatile wood products we manufacture are long-lasting, renewable and recyclable. Environmental, social, and governance considerations are built into how we make decisions every day. Our leadership team and our Board of Directors regularly employ a risk assessment process to identify risks to our business and ensure the implementation of

5 West Fraser Sustainability Report

appropriate systems to manage these risks to steward safe, modern and efficient operations. Where we manage forest lands, we practice sustainable forestry. By sustainable, we mean a forest stewardship approach that aims to mimic natural disturbances on the landscape, and which integrates reforestation and the managing, growing, nurturing and harvesting of natural forest cover that incorporates the conservation of soil, air and water quality, carbon, biological diversity, wildlife and aquatic habitats, recreation and aesthetics. We are an independently-audited and certified participant in the Sustainable Forestry Initiative (SFI©), among other voluntary environmental certifications. See also our website Environmental Policy, Environment and Product Certifications pages.

102-12 External initiatives

• We are committed to the Forest Products Association of

Canada (FPAC)’s “30 by 30” Climate Change Challenge”

• Our operations in the U.S. and Canada are certified to the

Sustainable Forestry Initiative (SFI®) (*except the Gilman

mills acquired in 2017, for which we are pursuing SFI Fiber

Sourcing certification in 2018)

• West Fraser subscribes to the chain-of-custody certification

Programme for Endorsement of Forest Certification

(“PEFC”) standard for our Canadian-produced forest

products.

• Our pulp and MDF mills are registered to the Forest

Stewardship Council’s (“FSC”) Standard for Chain of

Custody Certification and the Standard for Company

Evaluation of FSC Controlled Wood.

• Three pulp mills are certified to the ISO 14001

Environmental Management System Standard

• Forest Management Wetland Stewardship Initiative (FMWSI)

with Ducks Unlimited Canada and other forest industry

peers

• The Klinse-Za Caribou Maternity Pen in Chetwynd, BC, with

the First Nations communities of West Moberly and

Saulteau, other industry partners and Government of B.C.

6 West Fraser Sustainability Report

102-13 Membership of associations

West Fraser actively participates in numerous forestry sector and local associations. We belong to many local business organizations, such as the chambers of commerce, across our operating communities. Our Corporate association memberships include:

• Sustainable Forestry Initiative, an independent, nonprofit organization dedicated to promoting sustainable forest management

• The Softwood Lumber Board, established to promote the benefits and uses of softwood lumber products in outdoor, residential and non-residential construction

• National Council for Air & Stream Improvement (NCASI), a non-profit research institute that focuses on environmental topics of interest to the forest products industry

• Canadian Wood Council, represents Canada’s wood products manufacturing industry

• American Wood Council, represents America’s wood products manufacturing industry

• Federal Forest Resource Coalition, a national non-profit trade association dedicated to improving the management of Federal Forests

• Forest Products Association of Canada (FPAC), Canada’s national forest sector association

• FPInnovations, a non-profit member organization which carries out scientific research and technology transfer for the Canadian forest industry.

• fRI Research, a non-profit research organization providing innovative science to support decisions and policy development for land and resource management

• Southern Forest Products Association, focused on the Southern Pine lumber industry and promoting SYP products in domestic and international markets

• Structural Building Components Association, a trade association representing manufacturers of structural building components.

• Treated Wood Council, a trade association for companies producing pressure-treated wood products

Regional Forestry Association Memberships include:

• Council of Forest Industries (COFI)

• Alberta Forest Products Association (AFPA)

• Arkansas Forestry Association

• Louisiana Forestry Association

• Texas Forestry Association

102-14

Statement from senior decision-maker

See Report to Shareholders:

• 2016 Annual Report, pages 4-5, and

• 2017 Annual Report, pages 5-7

7 West Fraser Sustainability Report

102-15

Key impacts, risks, and opportunities

External Factors Affecting West Fraser’s Business

• 2016 Annual Report, pages 13-14, and Management’s Discussion & Analysis pages 23-42

• 2017 Annual Report, pages 12-16, and Management’s Discussion & Analysis pages 34-68

102-16

Values, principles, standards, and norms of behavior

For more than 60 years, the key values instilled in the Company by our founders have driven West Fraser’s growth, and remain central to the way we operate. Our values: integrity, humility, teamwork, frugality, innovation, competitiveness and respect for fellow employees define West Fraser’s organizational culture and, quite simply, the way we do business every day. This culture has set us apart from our competition since the earliest days at Two Mile Planing Mills, will continue to drive our success and performance. Our Corporate Governance Policy and Code of Conduct affirm our long-standing policy that our directors, officers and employees conform to the highest legal, ethical and moral standards in conducting the respective businesses of West Fraser and its subsidiaries. The Code of Conduct is intended to provide general guidelines that will:

• Ensure compliance with laws and regulations which govern

West Fraser’s business activities;

• Foster a standard of conduct which reflects positively on

West Fraser and its employees;

• Protect West Fraser from financial loss; and

• Preserve a corporate climate in which the integrity and dignity

of each individual is not compromised.

Responsibility for adherence to this Code rests with each individual. Oversight of adherence to this Code ultimately rests with the Company’s Board of Directors.

102-17

Mechanisms for advice and concerns about ethics

All persons subject to West Fraser’s Code of Conduct are encouraged to discuss any questions of interpretation or application of the Code to a particular circumstance with an appropriate management representative. See West Fraser’s Corporate Governance Policy and Code of Conduct, particularly sections 15. Compliance and Reporting and 16. Whistleblower Protection. See also Shareholder feedback on our website.

102 - Governance

Our Board of Directors has overall responsibility for the stewardship of the Company, including responsibility for:

8 West Fraser Sustainability Report

• The adoption of a strategic planning process and approval of a strategic plan,

• The identification of the principal risks of the Company’s business and ensuring the

implementation of appropriate systems to manage these risks,

• The succession planning, including appointing and monitoring senior management,

• The implementation of a communication policy for the Company regarding disclosure of

corporate information, and

• The integrity of the Company’s internal control and management information systems

including accounting systems.

It also has the responsibility to identify, with the advice of management, the principal risks of West Fraser’s business and must, with management, establish systems and procedures to ensure that these risks are monitored. These systems and procedures must include the effective management of the Company’s assets and financial resources and must ensure compliance with all regulatory obligations.

102-18

Governance structure

See the Corporate Governance Policy section on our website

• 2016 Annual Report, pages 16 -19

• 2017 Annual Report, pages 25-29

102-19

Delegating authority See the Corporate Governance Policy section on our website

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

We embed stakeholder engagement and consultation in our activities; indeed, it is a crucial part of our success as a business. Communities, customers, government bodies and non-governmental organizations regularly provide feedback through informal and formal channels. Beyond our voluntary activities, Canadian law requires the identification of and consultation with stakeholders. We are independently audited to meet the standards and provincial regulations governing the permitting and approval of harvesting and forest management planning on Canadian public lands by independent bodies such as British Columbia’s Forest Practices Board. Our leadership team is frequently engaged in consultation activities and are responsible for the operational management of sustainability within their purview. Consultation topics related to forestry activities frequently include responsible management of timber, soils, wildlife, water and fish resources, recreational

9 West Fraser Sustainability Report

access, scenic views, the preservation of biodiversity and the protection of cultural values. Other topics also include responding to forest health issues, carbon policy, achieving the fullest possible economic utilization of the forest resources and employment in local communities. Public consultation activities are carried out within our forest management planning in Canada and through operations’ community engagement activities. Consultation is required by legislation and within our forest management and fibre sourcing certifications, which are independently audited. Our manufacturing facilities are regularly inspected by federal, provincial and state environmental regulators. Shareholders may communicate directly with our Board and Directors as outlined in the 2017 Information Circular, Shareholder Feedback and Concerns, pages 30 and the 2018 Information Circular, pages 30-31.

102-22

Composition of the highest governance body and its committees

See Corporate Governance Policy section on our website , also outlined in the:

• 2017 Information Circular, Composition of the Board, pages 29-35 and

• 2018 Information Circular, Composition of the Board, pages 31-35

102-23 Chair of the highest governance body

Chairman of the Board: Hank Ketcham

• 2017 Information Circular, Executive Chairman of the Board,

page 25-26

• 2018 Information Circular, Executive Chairman of the Board,

page 26

102-24 Nominating and selecting the highest governance body

• 2017 Information Circular, see Board Renewal pages 18-20,

and Governance & Nominating Committee page 35

• 2018 Information Circular, see Board Renewal pages 17-20,

and Governance & Nominating Committee page 35

102-25 Conflicts of interest

West Fraser website: Code of Conduct, and

• 2017 Information Circular, Serving on Other Boards page 32

• 2018 Information Circular, Serving on Other Boards page 33

102-26

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

West Fraser website: Mandate of the Board of Directors

• 2017 Information Circular, Mandate of the Board page 28-29

• 2018 Information Circular, Mandate of the Board page 29

10 West Fraser Sustainability Report

102-27 Collective knowledge of highest governance body

• 2017 Information Circular, Orientation Program and Continuing Education pages 35-36

• 2018 Information Circular, Orientation Program and Continuing Education pages 35-37

102-28 Evaluating the highest governance body’s performance

• 2017 Information Circular, Expectations of Management page 30 and Performance Reviews pages 18

• 2018 Information Circular, Expectations of Management page 31 and Performance Reviews page 19

102-29

Identifying and managing economic, environmental, and social impacts

The Board of Directors has overall responsibility for the

stewardship of the Company, including responsibility for

• Adoption of a strategic planning process and approval of

a strategic plan,

• Identification of the principal risks of the Company’s

business and ensuring the implementation of appropriate

systems to manage these risks,

• Succession planning, including appointing and monitoring

senior management,

• Implementation of a communication policy for the

Company regarding disclosure of corporate information,

and

• The integrity of the Company’s internal control and

management information systems including accounting

systems. The Board’s Safety & Environment Committee is responsible for monitoring our safety and environmental performance. The Committee conducts an ongoing review of our safety and environment-related policies and performance, including compliance with applicable laws and regulations in the United States and Canada.

102-30 Effectiveness of risk management processes

The Board has the responsibility to identify, with the advice of management, the principal risks of the Company’s business and must, with management, establish systems and procedures to ensure that these risks are monitored. These systems and procedures must include the effective management of the Company’s assets and financial resources, and must ensure compliance with all regulatory obligations.

The Audit Committee assists the Board in fulfilling its responsibility to oversee the Company’s financial reporting and audit processes, its system of internal controls and its process for monitoring compliance with applicable financial reporting and disclosure laws and its own policies.

11 West Fraser Sustainability Report

The Board’s Safety & Environment Committee is responsible for reviewing the suitability and effectiveness of safety and environment management systems and sustainability certification programs to which we subscribe.

102-31 Review of economic, environmental, and social topics

Our Board has overall responsibility for sustainability issues and for ensuring all aspects of sustainability are addressed on an ongoing basis. The senior management of the Company develops long-term strategies with respect to the Company’s operations to be considered and, if deemed appropriate, adopted by the board of directors. The strategies are to be reviewed and updated as required.

Included in the development of these long-term strategies will be annual strategic, operating and capital plans. The strategic plan is to take into account, among other things, the opportunities and risks of the Company’s business.

Our Board and senior executive team meet regularly during the year, with the assistance of the Audit Committee and Safety & Environment Committee, reviews financial, governance and sustainability impacts, risks and opportunities to West Fraser.

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

West Fraser’s Code of Conduct sections 15. Compliance & Reporting and section 16. Whistleblower Protection

102-35 Remuneration policies

• 2017 Information Circular, Executive Compensation, pages

37-53

• 2018 Information Circular, Executive Compensation, pages

38-57

102-36 Process for determining remuneration

• 2017 Information Circular, Advisory Resolution on the

Company’s Approach to Executive Compensation (Say On

Pay), pages 24-25, Executive Compensation, pages 37-53

• 2018 Information Circular, Advisory Resolution on the

Company’s Approach to Executive Compensation (Say On

Pay), page 25, Executive Compensation, pages 38-57

12 West Fraser Sustainability Report

102-37 Stakeholders’ involvement in remuneration

• 2017 Information Circular, Advisory Resolution on the

Company’s Approach to Executive Compensation (Say On

Pay), pages 24-25

• 2018 Information Circular, Advisory Resolution on the

Company’s Approach to Executive Compensation (Say On

Pay), 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 of our company include:

• Our employees and their unions

• Local communities

• Indigenous Peoples

• Governments

• Recreational groups

• Overlapping tenure holders (trappers, ranchers, other

resource extractors such as mining)

• Forest landowners, Contractors, Partners and Suppliers

• Customers

• Investors and Shareholders

• Non-Governmental Organizations (NGOs & ENGOs, such as

research institutions and environmental organizations)

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

We consider our stakeholders to be people and groups who are directly affected by our business, including those that are geographically close to, or directly involved in our operational activities; and those people or groups that can have an influence on or are a consideration in the business decisions made by West Fraser. Stakeholder engagement and consultation is embedded in our forest management planning process through our sustainable forest management and fibre sourcing certifications. Identification and consultation with stakeholders is also required by Canadian law to meet the standards and provincial regulations governing the permitting and approval of harvesting and forest management planning on public lands.

13 West Fraser Sustainability Report

102-43 Approach to stakeholder engagement

Our stakeholder relations activity takes place through formal and informal feedback opportunities throughout the year. It may be associated with critical business activities, such as permit approval processes, or through community or business events and presentations. Every year we actively consult our stakeholders through meetings, conferences, fairs, community events, public hearings and open house events. We also seek or receive feedback through industry association surveys and inquiries from members of our stakeholder communities. In Western Canada where we manage forest lands under government licences, we also coordinate public and community consultation within the regulated process for forest management approvals. We are guided in these consultations by the requirements of provincial regulations, as well as our Company Code of Conduct and our approach to engaging Indigenous Peoples. Our forestry planning documents are made publicly available for review so individuals or groups can provide feedback directly to our forestry planning teams.

102-44 Key topics and concerns raised

Public and stakeholder consultation and accommodation where we manage forest lands is related to important forest values. Consultation topic areas include special measures to protect biodiversity, wildlife and fish habitat, conservation objectives, recreation activity, visual expectations, roads and transportation, cultural and traditional use, economic opportunity, reforestation, soils, water and community watersheds. Consultations and stakeholder input are conducted during the development, approval and implementation of our forest management plans. Beyond government approvals, our forestry plans incorporate additional criteria and stakeholder engagement requirements in our third-party sustainable forest management standards and as well as community-specific agreements that may have been developed to address specific stakeholder groups and organizations objectives where our forest management activities take place. We also participate in local and regional multi-stakeholder air quality management processes in many communities where our manufacturing facilities are located. Examples of how we approach, incorporate and engage stakeholders interests and address their concerns about our activities are shared on our website, see our Stories of Responsibility and our Public Involvement pages.

102-45 Entities included in the consolidated financial statements

• See 2016 Annual Report Notes to Consolidated Financial Statements, Basis of Consolidation page 50

• See 2017 Annual Report Notes to Consolidated Financial Statements, Basis of Consolidation page 75

14 West Fraser Sustainability Report

102-46 Defining report content and topic Boundaries

This is West Fraser’s first report following the Global Reporting Initiative Standards framework. In preparing this report, we considered the economic, environmental, social and governance matters of interest to our stakeholders as determined through our stakeholder interactions (formal and informal) and those that our senior leadership team considers important to the continued success of the Company. Considering our business and how we create value, we bound our report by our value chain. Starting from the sustainable forest management planning and responsible sourcing of our fibre and reforestation, through manufacturing our products in safe working environments to the transportation of our products to market to fulfill our customers’ needs.

102-47 List of material topics

Forests

• Sustainable Forestry & Responsible Fibre Sourcing

• Forest Renewal & Climate Change

• Wildlife, Habitat Management & Biodiversity

• Working forest management Employees

• Worker Safety

• Employee Engagement

• Employee Development & Equal Opportunity Business

• Economic Performance

• Business Ethics Environmental

• Water Use & Effluents

• Air Emissions

• Environmental Performance Manufacturing

• Quality Management

• Reinvestment in the Business

• Fibre Utilization & Recovery

• Waste Management

• Product Quality

Operations & Value Chain

Value Chain Phase Material Impacts

Sourcing: Forest management Sustainable Forestry & Responsible Fibre Sourcing, Forest Renewal & Climate Change, Wildlife, Habitat Management & Biodiversity, Working Forest

15 West Fraser Sustainability Report

Management, Worker Safety, Employee Engagement, Employee Development & Equal Opportunity, Business Ethics, Environmental Performance, Economic Performance, Fibre Utilization & Recovery, Waste Management

Sourcing: Log supplies Sustainable Forestry & Responsible Fibre Sourcing, Worker Safety, Employee Engagement, Business Ethics

Manufacturing Worker Safety, Employee Engagement, Employee Development & Equal Opportunity, Economic Performance, Business Ethics, Water Use & Effluents, Air Emissions, Environmental Performance, Quality Management, Reinvestment in the Business, Fibre Utilization & Recovery, Waste Management, Product Quality

Transport Worker Safety, Employee Engagement, Employee Development & Equal Opportunity, Economic Performance, Business Ethics, Air Emissions, Environmental Performance, Quality Management

Customers Economic Performance, Business Ethics, Environmental Performance, Quality Management, Product Quality

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 document.

102-56 External assurance We have not sought external assurance for this report.

103 Management Approach

103-1 Explanation of the material topics and its Boundary

What we achieve is important. How we achieve these results is just as critical to sustain and build on our Company culture and our values, and how our people define our success. West Fraser’s goals are to maintain: excellence in performance and people, leadership in our field, challenge and satisfaction, responsibility in the communities in which we work, profitability and growth.

16 West Fraser Sustainability Report

Our Board, particularly the Environmental & Safety Committee,

together with our Executive and our Senior Leadership Team, set the policy and manage the practice of our environmental, social and governance activity within our business.

Material issues

Fo

res

ts

Sustainable Forestry & Responsible Fibre Sourcing

Sustainably and responsibly manage forests entrusted to our forest management planning, including responsibly sourcing our fibre supply

Forest Renewal & Climate Change

How we contribute to renewing healthy, resilient forests through regeneration, reforestation and carbon sequestration

Wildlife, Habitat Management & Biodiversity

How we can accommodate plants, soils, and animals thriving in forest ecosystems

Working forest management

Working collaboratively with stakeholders to sustain important social values in the forest (cultural, recreational, economic, ecologicall)

Em

plo

ye

es

Worker Safety Providing a safe workplace for employees, contractors and people at our operating sites

Employee Engagement

Employees engaged and passionate about our business and how they can contribute to performance improvement

Employee Development & Equal Opportunity

Be a workplace that provides equal opportunities for advancement and develops employees to their potential

Bu

sin

es

s Economic

Performance

Prudent balance sheet and attention to cost management throughout our business cycle

Business Ethics

Ensure we engage in effective corporate practices, stewardship, ethical conduct, good governance and fair dealing

En

vir

on

me

n

tal

Water Use & Effluents

Manage water resources responsibly

Air Emissions Manage air emissions and reduce pollutants emitted from our operations

17 West Fraser Sustainability Report

Environmental Performance

Reduce and, where possible, eliminate waste or harmful effects our operations may have on the environment

Ma

nu

factu

rin

g

Quality Management

Emphasis on continual process improvements to improve the quality and efficiency of our products and our process

Reinvestment in the Business

Maintain our facilities and performance through capital reinvestment and in employee training

Fibre Utilization & Recovery

Explore opportunities to fully utilize manufacturing residuals and recover energy from our operations

Waste Management

Reduce waste in our operations

Product Quality Maintain high standards for product safety and quality

Economic and business data has been provided according to West Fraser’s accounting standards and policies, as detailed in the Annual Report. Policies & Commitments

West Fraser’s Code of Conduct sets the expected standard of conduct and approach to business practices required of our employees and officers to responsibly execute their work for the company. Other policies important to our operating approach include:

• Environmental Policy

• Safety Policy

• Corporate Governance Policies

• Sustainable Forest Management and Fibre Sourcing Monitoring and evaluation Our Board, assisted by its Committees, is responsible for the company’s internal control and risk management systems. Our internal audit activities, management systems and compliance requirements for financial, fibre procurement, environmental, manufacturing and safety policy and procedure ensure appropriate control measures have been planned and are in place. Best practice information is also shared between operating sites. These practices and audited activities assist the Board of Directors and Senior Management to conduct the appropriate monitoring of company activity. Many aspects of our

18 West Fraser Sustainability Report

operating responsibilities are further monitored, inspected and audited by third-party organizations and government bodies.

201 - Economic Performance

As a business, our objective is to find the best commercial value for the trees in order to generate sufficient profits over an economic cycle. We do this while incorporating several important social and environmental values associated with forestry. From the early days of our founding, West Fraser has never wavered from three foundational economic principles:

• First, we promote a low-cost culture throughout the Company in good times and bad.

• Second, we reinvest our cash flow into our business to ensure we have the lowest cost and most highly efficient mills in the industry.

• Third, we strive to maintain a prudent balance sheet throughout the business cycle.

Our objective is to be the low-cost, high margin producer in each of our product lines across geographic regions. We are working towards this by investing in growing the footprint of our operations, modernizing our mills and upgrading technology, improving safety and supporting employee development. Reinvestment in our operations is crucial to ensure we operate efficient, modern mill facilities. Within a comprehensive capital program, we invested $1.6 billion between 2013 and 2017 across our operations. This included the reconstruction of 11 sawmills, 13 planer upgrades, 6 energy and bioproducts projects and the addition of 33 continuous kilns. Find out more about how we see the Opportunity of our business on our website.

201-1 Direct economic value generated and distributed

• 2016 Annual Report, Annual Information Form and MD&A, pages 8-42

• 2017 Annual Report, Annual Information Form and MD&A, pages 8-68

201-2

Financial implications and other risks and opportunities due to climate change

Climate change risks and opportunities cross many aspects of our business, from fibre supply, forest health and forest management to the environmental opportunity our wood products represent in green building. Changes in climate, for example, may facilitate the spread of forest pests such as the mountain pine beetle and of other health stressing diseases that can affect trees. Fibre supply disruption to our operations can be caused by increased drought, forest fire activity or storms and flooding that leads to temporary cessation of operations due to physical damage to road and rail infrastructure and disruption of supply chains. A market opportunity may be increased demand for our wood products as building approaches and consumer preferences shift to require less carbon intensive, greener, sustainable, climate friendly construction materials, such as wood products and wood building systems. Climate change issues are integrated in the discussion of business issues detailed in our annual reporting because these risks and opportunities considerations are integrated within the company's wider risk management approach, consideration of

19 West Fraser Sustainability Report

government regulations and policies, evaluation of capital projects and sustainable forestry management activities. Read more in the 2016 Annual Report, Annual Information Form and MD&A, “Risks and Uncertainties” pages 38 – 42 and the 2017 Annual Report, Annual Information Form and MD&A, pages “Risks and Uncertainties” pages 59 – 68. As an SFI-certified forest manager (Canada), we further have requirements within SFI Standards’ performance measures to incorporate the potential impacts of climate change on the land base. We monitor information generated from regional climate models and consider how the forests we manage contribute to resilient ecosystems as an adaptation to a changing climate.

201-3 Defined benefit plan obligations and other retirement plans

• 2016 Annual Report, Notes to Consolidated Financial Statements pages 57-60

• 2017 Annual Report, Notes to Consolidated Financial Statements pages 86-91

201-4 Financial assistance received from government

• 2016 Annual Report, Notes to Consolidated Financial Statements, Government Assistance, page 65

• 2017 Annual Report, Notes to Consolidated Financial Statements, Government Assistance, 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

All hourly employees are paid a wage consistent with local markets and are set to reflect the job performed. Hourly wage rates either meet or exceed the local minimum wage rates in the jurisdictions where we operate (Canada and the United States).

• 2016: 76% of employees are paid on an hourly basis

• 2017: 79% of employees are paid on an hourly basis.

202-2

Proportion of senior management hired from the local community

In many regions where we operate, our manufacturing facilities are a major employer in the community, and we primarily recruit new employees in the areas where our facilities are located. We draw our employees from the local region, Indigenous communities, educational institutions, cities and towns close to our operations. Our senior management team are drawn from the United States and Canada. We believe in promoting from within and our senior management team reflects this. Our leadership teams at the local and corporate levels are comprised of employees who have developed their skills with us and moved up within the Company into senior leadership roles. 95% of our management and senior management team are drawn from internal promotions.

20 West Fraser Sustainability Report

203 - Indirect Economic Impacts

The ripple effect of our mills’ economic impact in our communities is much greater than the direct employees of our Company and the local taxes we remit. Our business depends on local third-party providers for services such as log purchases, logging, road building, reforestation and silviculture, supply support, trucking and transportation. For every dollar the Canadian forestry sector produces, the Canadian economy gets an additional $0.95 of indirect production, the highest of all natural resource industries. Our business model is based on integrating contractors, small and local businesses and services to our mills, and this induces more jobs in the areas where our facilities are located. For more than 60 years, West Fraser’s business strategy has been straight-forward and consistently focused on three key drivers. They are: to be the low-cost, high-margin producer in each of our product lines and geographic regions; reinvesting in our business assets, and maintaining a conservative balance sheet to manage for the inherent cyclicality of our industry. This strategy is important to the indirect economic benefit that West Fraser provides in the communities where we operate. Maintaining a financially conservative, high-performing business in a cyclical sector means that we are more likely to be able to provide more stable employment for direct employees and for the local contractors and suppliers we depend on for crucial services such as harvesting, trucking in the communities where we operate. By reinvesting in our business to maintain modern, efficient facilities, our mill operations are more likely to remain competitive, economic and operating through all phases of a commodity price cycle. This operating philosophy is a critical factor in the communities where a West Fraser mill may be one of if not the major employer for the town. By operating and conducting our business responsibly: socially, environmentally and economically, we can continue to consistently provide direct, indirect and induced jobs through low or thriving market demand. From a donations perspective, our primary areas of charitable giving are to enhance community life, health and wellness and education. We designate a portion of our pre-tax profits each year towards charitable and community giving in the communities where our employees live and work. We define an annual donation budget for every division so that our operations can maintain our charitable funding in these rural communities even in tough financial years given we are a commodity business that experiences up-and-down business cycles. Larger donations and gifts beyond annual divisional spending are recommended to senior management by our communities for corporate donations.

203-1 Infrastructure investments and services supported

• 2016 Annual Report Report to Shareholders, pages 4-5

• 2017 Annual Report, Report to Shareholders, pages 5-7

We build and maintain hundreds of kilometres of roads as a part of our forest management activities in Canada. We often collaborate with other industrial users to develop integrated land management strategies for roads to address the collective industrial footprint on the landscape. Forestry roads are used by many other individuals and groups to access forest areas and other destinations. Recreationalists and the public often use forestry roads to access activities such as camping, boating, hunting, and a wide range of outdoor sports. Read an example of how we work to find a balance for industrial use, public access, and habitat management in working forests.

21 West Fraser Sustainability Report

Since 2015, West Fraser has donated $3.2 million to hundreds of organizations in the United States and Canada. The majority of West Fraser’s donations are decided by local mill managers directly in the communities where we operate. In the United Sates, our operations have been active contributors to programs supporting veterans and hospital charities, such as The Wounded Warrior Project, helping veterans recover and transition to civilians life and Log-A-Load for Kids, an annual campaign in which loggers and others in the forest products community donate the value of a load of logs to raise funds to improve children's health through treatment, education and research at local children's hospitals. Recently we have made a number of major contributions to long-term community amenities in areas where we operate. We contributed $1 million to the new ice arena at the West Fraser Centre in Quesnel, B.C. We are already working with the City to improve this new facility, with plans to support the addition of a new walking track around the top of the arena to provide new weather-protected and temperature-controlled exercise space for residents. We provided $500,000 for the redevelopment of the Sam Ketcham Pool and expansion of the West Fraser Aquatics Centre in Williams Lake, B.C. In Alberta, our Hinton operations were pleased to provide $300,000 to the development of the West Fraser Guild, home to the Performing Arts Theatre of Hinton, Alberta. The theatre also includes our wood products in the entrance, an artful decoration using our dimensional lumber products that highlight the connection of our activities to the quality of life in that community. We have also provided building materials to several community projects including the West Fraser Outdoor Discovery Centre near Sundre Alberta, and the Habitat for Humanity's Carter Work Project in Edmonton, Alberta.

203-2 Significant indirect economic impacts

We are a strong supporter of the communities in which we operate. Our facilities are largely located in rural communities where we are a major employer, tax-payer and purchaser of local business goods and services. The communities where we operate must be able to thrive economically, socially, and environmentally for our business to be sustainable and competitive. Where we manage forest lands, we invest millions of dollars with local contractors and independent businesses in the rural communities where we operate who provide critical contract services including harvesting, road construction, silviculture and trucking. Not infrequently, we have built these relationships over years, even decades of working together. Read an example of a

22 West Fraser Sustainability Report

collaboration with the Fox Creek Development Association, which provides services to our public campsites and trails in Alberta. In the U.S. and Canada, the successful operation of our business requires local third-party providers of goods and services such as log purchases (in the US, this represents 100% of our fibre supply, in Canada, approximately 30%), supply support, trucking and transportation. These needs represent a major portion of our operational costs. As we purchase these goods and services where our mills are located, this procurement activity supports regional businesses and contractors, becoming an important local economic driver in the smaller and rural communities where we predominately operate.

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

In Canada, we rely on third-party independent contractors to harvest timber in areas over which we hold timber tenures. We additionally purchase over 30% of our Canadian log supply from third parties holding short or long-term timber harvesting rights, including independent logging contractors, Indigenous Peoples, communities and woodlot owners located geographically near our operations in Canada. Approximately 96% of our U.S. log supply is purchased from timber real estate investment trusts, timberland investment management organizations and private landowners from the forests geographically near our U.S. operations.

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.

23 West Fraser Sustainability Report

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

The Canada – U.S. Softwood Lumber Agreement (“SLA”) expired in October 2015 and on the expiry of that agreement a one-year moratorium on trade sanctions by the U.S. came into place. During that time, the Government of Canada and the U.S. Trade Representative were unable to reach agreement on a new managed trade agreement. West Fraser, together with other Canadian forest product companies and the Canadian federal and provincial governments (the “Canadian Interests”) categorically deny the allegations by the coalition of U.S. lumber producers and disagree with the countervailing and antidumping determinations by the United States Department of Commerce and the United States International Trade Commission. The Canadian Interests continue to aggressively defend the Canadian industry in this trade dispute and have appealed the decisions to North America Free Trade Agreement panels and the World Trade Organization. Please see discussion of the 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

We manufacture renewable, sustainable products that may be reused, recycled or consumed for energy generation. Read about our approach to operating environmentally and socially responsibly in the Responsibility section of our website. More detail about our commitment to the full utilization of the fibre we harvest is also shared in Manufacturing.

24 West Fraser Sustainability Report

301-1 Materials used by weight or volume

The most significant material input to our company is wood fibre. Fibre and Log Supply information are reported as follows:

• 2016 Annual Report, page 9 - 11

• 2017 Annual Report, page 12 - 16

301-2 Recycled input materials used

We operate two medium density fibreboard (MDF) mills. MDF is made from recycled spruce and pine sawdust and shavings from our Canadian mill facilities. We hold SCS Recycled Content certification affirming that our board contains more than 85% pre-consumer recycled spruce and pine sawdust and shavings. We are a primary manufacturer and therefore do not use post-consumer recycled materials in our products. We do extensively reuse the byproducts (residuals) of our primary manufacturing to make other wood and energy products.

• The majority of the wood chip fibre necessary for our pulp

operations is recycled from lumber processing;

• We produce carbon-neutral biomass energy from bark and

other by-products of wood processing;

• Agricultural products for local sale such as bark mulch,

animal bedding, soil enhancer (fertilizer), and

• Lignin, a bioproduct recovered from our pulping process.

301-3 Reclaimed products and their packaging materials

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

25 West Fraser Sustainability Report

302 - Energy

We are a large electricity consumer and our pulp, paper and MDF operations use substantially more than our lumber and plywood operations. Our energy reduction objectives are:

• To further increase energy efficiency throughout our operations by investing capital; and

• To continue to research and develop alternate ways to generate or procure renewable

energy.

We have invested a significant amount in several projects to increase our energy efficiency and to generate electricity from our manufacturing by-products such as wood waste and pulp mill effluent. From 2000 to 2017, our energy initiatives have resulted in a decrease in the intensity of purchased energy of approximately 41% for our sawmill and panel operations and approximately 19% for our pulp and newsprint operations. To put it in scale, bioenergy represents about 5% of Canada’s total primary energy resources. After hydro-electricity, biomass is the second most important renewable energy source in Canada, with the forest industry’s use accounting for the largest share. West Fraser currently generates two-thirds (over 60%) of our energy needs with renewable, carbon-neutral biomass fuel sources co-located with our mills. Our biomass fuel sources include lower value woody materials such as bark, shavings and sawdust that are a by-product of our manufacturing processes. This biomass is used to fuel steam or electricity cogeneration facilities at our solid wood and pulp operations, particularly in equipment like

our lumber drying kilns. We have increased our use of all of the wood fibre that enters our facilities to produce renewable, carbon-neutral energy as an alternative to fossil fuels. Today, 89% of our mills generate some form of renewable energy from residual biomass. Our approach to energy is on our website under the Bioenergy section and within the Air & GHG’s page in the Responsibility section. For all of our energy data, facilities not wholly owned by West Fraser are calculated based on equity share of the energy inputs to the facility. To date, all partnerships are 50%.

26 West Fraser Sustainability Report

302-1 Energy consumption within the organization

Our electricity use increased slightly in 2017 due to increased production.

2016 2017

Bioenergy consumed (wood processing residuals and pulping liquors)

37,760,977 38,393,366

Purchased energy 18,382,826 19,209,881

Total Energy Consumed (GJ) 56,143,803 57,603,247

As part of our objective to fully utilize every log in our operations, we use the woody by-products (residuals) of our lumber manufacturing to produce energy. Over the last several years we have greatly increased our consumption of this carbon-neutral fuel source. For example, in our solid wood operations our biomass energy consumption has grown by two and a half times since 2000:

302-2 Energy consumption outside of the organization

We do not currently track this energy consumption.

27 West Fraser Sustainability Report

302-3 Energy intensity

Our energy intensity is measured per unit of production as a percentage of improvement compared to our baseline year, 2000. We do not publicly report energy efficiency per production unit.

2016 2017

Solid wood operations (lumber, panels) (GJ per m3)

45% 41%

Pulp operations (GJ per air dried metric tonne)

20% 19%

302-4 Reduction of energy consumption

Since 2012, we have installed 33 continuous kilns in our operations. These lumber kilns capture and use heat more efficiently from the drying process. Where they are operating, continuous kilns fueled by biomass make a 25% improvement in our energy efficiency at our sawmills. We have invested in Low-Consistency Refining technology in our BCTMP pulp operations. By applying a continued focus on optimizing refining energy, for example, Slave Lake Pulp has been able to reduce electrical intensity by over 14% per ADMT (air-dried metric tonne) in the last two years (2016-2017).

302-5 Reduction of energy requirements of products and services

We operate two BCTMP pulp mills, which manufacture pulp in a highly electrically-intensive mechanical pulping process within a trade-exposed market. Electrical costs can make up as much as 35% of the manufacturing expenses for BCTMP pulp. We set annual targets for reducing the electrical intensity of the BCTMP pulp we manufacture.

MWh/ADMT 2016 2017

Target % of Change

2.5% 1.1%

% Actual Change achieved

4.9% 3.8%

303 - Water

We use water in both our solid wood and pulp facilities. Solid wood mills largely use water for heating, misters for dust control and to cool equipment. At three sawmill sites, we also employ water in a closed-loop system for the cooling needs of our three biomass ORC bioenergy systems. Our solid wood mills use little process water compared to the water used in the pulping process at our pulp facilities. Pulp mills use a significant amount of water to wash and process pulp, transport it through the mill as well as for heat and power generation. Water consumption is closely tracked at our pulp and jointly-owned pulp and newsprint operations in Canada, as the pulping process requires significant volumes

28 West Fraser Sustainability Report

of water which is sourced from rivers near the facilities. Water will be re-used several times in the process before it is treated to meet rigorous regulatory and environmental standards. We produce two types of pulp, Bleached Chemical Thermo-Mechanical Pulp (BCTMP) via a mechanical process, and Northern Bleached Softwood Kraft pulp (NBSK) in a chemical pulp process. How we manufacture these two types of pulp has a substantial effect on the water we require. The mechanical process of producing BCTMP pulp applies heat, chemicals and a refining process to create BCTMP in a non-chlorine environment. Softwood BCTMP is used for manufacturing products such as coated board grades, printing and writing paper and paper towel/napkin grades. It uses significantly less water per tonne of pulp produced than NBSK, averaging 17 m3 of water per tonne of production. NBSK pulp is a chemical pulp. It is produced by combining woodchips and chemicals into what is called a digester. The chemical process in the digester breaks down the lignin in the fibre, lignin being the glue that holds fibres together. NBSK pulp in its finished form is made up of long slender fibres that provide excellent bonding and tensile properties. NBSK pulp is used for manufacturing a variety of paper products including printing and writing paper, specialty grades and a range of tissue products. NBSK’s manufacturing process requires larger volumes of water relative to BCTMP pulp, averaging 109 m3 of water per tonne of production. The water disclosures below are provided for our BCTP pulp mills Quesnel River Pulp and Slave Lake Pulp, and NBSK pulp mills Hinton Pulp and joint venture Cariboo Pulp & Paper, which West Fraser manages. West Fraser is a partner in, but not the managing partner of, the Alberta Newsprint company. This facility’s water metrics are not included in the below figures. See Water on the West Fraser website.

303-1 Water withdrawal by source

The river sources for our surface water use are the Fraser River in B.C., and the Lesser Slave River and the Athabasca River in Alberta. Water drawn for our pulp process is returned to these river systems.

2016 2017

Total Withdrawal, by source (m3)

Groundwater 6.8 million 6.7 million

Surface water 75.9 million 74.6 million

303-2

Water sources significantly affected by withdrawal of water

Overall, little water is lost in our pulp production process. After water has been through our filtration, treatment, and cooling processes, it is tested before it is returned to a water body. 96% of the water we withdraw for our pulping process will be returned to the local environment. Water is extensively reused within our operations, treated, tested to meet environmental standards (such as biological oxygen demand (BOD) and total suspended solids (TSS)), before it is released back into the environment.

29 West Fraser Sustainability Report

303-3 Water recycled and reused

2016 2017

Total (m3/year)

Water Use Process

82.7 million 81.2 million

Water Use Cooling

10.2 million 11.2 million

304 – Biodiversity

Our company has a long and proud history of environmental conservation, preservation and responsibility. To date, we have deferred or relinquished harvesting rights on over half a million hectares (1.24 million acres). That’s an area almost 100 times the size of Manhattan. West Fraser does not own or manage any forestland in the Southern U.S. where the fibre for our mills is secured from third party sources.

Where we manage forestland in Western Canada, our operations are subject to regulation by federal, provincial, and local environmental authorities, including industry-specific environmental regulations relating to reforestation, reclamation, and the protection of endangered species and critical habitat. West Fraser’s foresters and biologists work closely together to manage for many other attributes of a healthy forest. We actively participate in biodiversity conservation and protection. One way we do this is to maintain forest habitat within the natural variation produced by mother nature. It means we aim to regrow forest cover that supplies natural forest habitats in amounts and patterns similar to what would result from a natural disturbance on the landscape, such as forest fires.

A second major approach is to take additional steps to recover species at risk. We fund and actively support innovative research to continually improve our forestry practices, including conservation of wildlife habitat. Read more about some examples of how we address the protection of caribou and grizzlies around our operating areas.

For more information see our independently audited forest certifications and view the most current controlled wood risk assessment posted on our website.

304-1

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

Where we manage forest lands in Western Canada, West Fraser’s operations have been assessed as low risk to eco-regionally significant high conservation value (“HCV”) areas at the ecoregion level threatened by forest management activities. For full details see our FSC Controlled Wood Risk Assessment. One HCV area near our operations, the Muskwa-Slave Lake Forests, is identified as a WWF Global 200 ecoregion but has a current status of ‘relatively stable/ intact’ and is considered not threatened by forest management activities at the ecoregion level in accordance with the guidance set out in the Global Forest Registry.

30 West Fraser Sustainability Report

304-2

Significant impacts of activities, products, and services on biodiversity

We practice sustainable forest management in Western Canada, where our activities are 100% independently certified. We planted 63 million trees in 2016, and 64 million in 2017; approximately two seedlings for every tree we harvest. Our seedlings are grown from the seeds of native tree species. Read more about where we get the seeds for our reforestation activities. West Fraser does not convert natural forest to non-native plantations. We reforest what we harvest using locally occurring native tree species to regenerate healthy forests, within an approach called ‘natural range of variation’. It means we aim to regrow forest cover that supplies natural forest habitats in amounts and patterns similar to what would result from a natural disturbance on the landscape, such as forest fires. West Fraser manages many different types of forestry licences in Canada, including area-based tenures. We invest in forest management and silviculture practices to renew and support sustainable, responsible, working forest operations that provide important benefits to the communities we are a part of. One example is our Tree Farm License 52 that we see as an excellent model for sustainable forest management. Read "More than 60 Years Growing Strong in Quesnel's Tree Farm" to learn more about the first TFL we harvested in the 1950's and how it is ready for second harvest, over 60 years later. Click here for more details about how we approach sustainable forest management planning, including environmental protection, biodiversity conservation, road and infrastructure de-activation, reforestation, wildlife habitats, recreation and public involvement. Read an example of how we work with other industrial sectors to collaboratively address land management strategies to tackle the collective industrial footprint on the landscape. West Fraser also partners with other industrial operators, communities and Indigenous Peoples working to improve the survival of the Klinse-Za Caribou herd in B.C.

31 West Fraser Sustainability Report

304-3 Habitats protected or restored

Canada’s forest management regime is based on the renewal of natural forests. One way we do this is to maintain forest habitat within the natural variation produced by mother nature. That means supplying all the natural forest habitats in amounts and patterns on the landscape similar to what would result from a natural disturbance, such as forest fires. Our harvest operation plans incorporate a whole range of what we call "forest values:" wildlife habitat, fish and riparian environments, water, visual qualities (like scenery and special places in the forest), cultural and traditional use, wilderness recreation, hunting or trapping and the effects of other industrial uses – just to name a few. In Canada, we collaborate with other partners to manage forestland in the areas where we operate. In special cases, we help sustainably manage community forests, like the Little Prairie community forest in B.C., which was badly affected by a mountain pine beetle attack. Read this story about how we approached renewing a community forest affected by the mountain pine beetle. Read more about wildlife and habitat management and our forest practices where we operate. Read an example of how we use innovative approaches to restore and protect places like fish habitats near forestry roads and how we collaborate to reclaim sites affected by other industrial activities in our operating areas.

304-4

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

West Fraser’s forest management team incorporates planning for a large number of species within our forest management planning activities. Our operational plans include approaches to address many habitats including those related to rare plants and species of special concern in certain areas that are not represented in the IUCN Red List. The list below includes mammals, birds, fish, molluscs and plants with habitats in Western Canada that may be near our forest management operations:

IUCN Status # of mammals, birds, fish, molluscs and plants

Critically endangered 1

Endangered 3

Vulnerable 13

Near threatened 6

Caribou: A portion of certain operating areas overlaps some caribou range. We have been actively researching, responding and proactively tackling the proactive management of caribou

32 West Fraser Sustainability Report

habitat in the areas where we operate for more than 30 years. We incorporate independent research, multi-industry approaches on the landbase and employ tactics such as modifications and deferments of our harvesting activity in caribou range. We continue to engage cooperatively with federal and provincial governments, environmental and research organizations and other interested parties to work towards stabilizing or recovering caribou populations. Our primary goal is to operate in a way that supports the continued health of herds that are stable or growing and to halt or reverse the declines other herds are experiencing. Read more about our approach and action on our website under Caribou. We participate in independent forestry-specific research, including special projects that take steps to observe species at risk and improve healthy forest ecosystems. One example of the kind of projects we participate in is the Harlequin Duck Migration and Connectivity Project.

305 - Emissions

The use of carbon-based fossil fuels is one of the largest contributing factors to greenhouse gas (“GHG”) emissions. Concerns over climate change have led to changes in governmental GHG emission standards, measurement and taxation. Carbon pricing has been introduced in both Canadian provinces where we operate, including regulation such as Alberta's Specified Gas Emitters Regulation and B.C.'s GHG Reduction Act require reductions in GHG emissions. Young, growing trees absorb carbon dioxide from the atmosphere as they grow, and in this way carbon is captured in wood. In addition to wood being an excellent building material because of its carbon-retaining properties, regrowing the forests we harvest plays a beneficial role in recapturing carbon from the atmosphere and helps to rebalance the carbon cycle. We are addressing emission reductions through the investment of capital to upgrade technology in our operations to reduce GHG emissions, such as using more carbon-neutral biomass energy (for example residuals from our manufacturing processes) to displace coal power and our waste-to-energy facility that creates power from mill waste water. Our U.S. sawmill operations primarily use biomass energy to generate steam for the lumber kiln drying process. As a result, our U.S. mills are relatively low emitters of GHGs. Our Alberta-based manufacturing facilities participate in their regional air shed management organizations. These are multi-stakeholder groups that provide public information on and monitor air quality, as well as develop recommendations regarding air quality monitoring and management. Our B.C.-based facilities in Smithers, Fraser Lake, Quesnel and Williams Lake B.C., also participate in local air shed management groups. In May 2016 we further committed to the Canadian forest products industry’s pledge to remove 30 megatonnes (MT) of CO2 per year by 2030 — more than 13% of the Canadian government’s emissions target. We continue to invest in bioenergy systems that more effectively capture the heat and steam generated during the production of wood products and other future relevant technology as it continues to improve.

33 West Fraser Sustainability Report

Learn more about our biomass energy projects and our approach to air emissions in the environment in the Responsibility section of our website. Emission intensities are based on the native production units (MFBM for lumber, Msf (3/8”) for plywood, Msf (3/4”) for MDF, Mcf for LVL and ADMT for pulp and paper production). For all of our GHG data, facilities not wholly owned by West Fraser are calculated based on equity share of the energy inputs to the facility. To date, all partnerships are 50%. Gasses included in GHG calculations: CO2, CH4, and NO2.

305-1 Direct (Scope 1) GHG emissions

GHG Emissions Metric tons of CO2 equivalents

2016 2017

Direct emissions from our operations (Direct - Scope 1)

519,036 553,572

Emissions related to purchased energy consumed in our operations (Indirect - Scope 2)

1,050,449 1,050,889

Total Direct and Indirect 1,569,485 1,604,471

% change (total) - 4.2% + 2.2%+

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

2016 2017

Intensity (Scope 1 & 2)

1.172 1.229

% change from previous year

-7.4% +4.8%

34 West Fraser Sustainability Report

305-5 Reduction of GHG emissions

We have made major investments to reduce our GHG emissions, starting in 2000. We have significantly reduced our greenhouse gas emissions (GHG) by more than 181,000 tonnes annually – that is roughly equivalent to annual GHG emissions of 138,000 passenger vehicles. Many of our solid wood operations we have displaced natural gas furnaces in favour of biomass burning, using the wood processing by-products from lumber operations to heat the site’s lumber kilns. Depending on the site, switching to carbon-neutral biomass has reduced the operation’s annual carbon emissions by 10,000 – 15,000 tonnes of CO2 equivalent. Our achievements are a result of focused efforts to upgrade to more energy efficient technologies, and better utilization of resources like heat, steam and other energy created during the manufacturing process. This energy is re-routed for use in other areas of the production process, and greatly reduces the overall energy consumption of our operations. We have also substantially increased the use of wood residuals such as sawdust, bark and other by-products of production (called "biomass") to produce energy, and we are building a significant portfolio of these bioenergy projects.

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 (metric tonnes)

2016 2017

Nitrogen oxides (NOX) 3,773 4,398

Sulphur oxides (SOX) 1,648 2,204

Volatile organic compounds (VOC)

7,035 7,608

Particulate Matter (PM) 3,994 3,865

Increases in air emissions data in 2017 are related to the increased number of West Fraser facilities as a result of the Gilman mills acquisition that year.

35 West Fraser Sustainability Report

306 - Effluents and Waste

West Fraser facilities operate recycling programs to track, re-use and recycle consumable products to reduce landfill waste. We aim to utilize recycling and return programs and services available in the regions where we operate. These programs include the re-use materials, leverage supplier take back programs and incorporate training and orientation of new employees so that all employees understand and can participate in facility recycling programs. These programs include standard items such as office paper and cardboard but also a variety of materials used in our offices, machine shops and moving equipment such as oily rags, fluorescent light bulbs, computer equipment, batteries and anti-freeze. At the five pulp mills in Canada, effluent treatment is highly regulated at both provincial and federal governmental levels. A number of the regulations relate to testing the efficacy of our water treatment such as how well our operations remove processing chemicals, measuring levels of suspended solids or particles and measuring oxygen levels in the water to ensure sufficient oxygen for organisms to thrive when the water is returned to the river. Our Canadian pulp and paper mill performance is publicly reported and available on the Environment Canada National Pollutant Release Inventory (NPRI) . See our Environmental Policy about our approach and commitment to operating responsibly.

306-1 Water discharge by quality and destination

Water diverted and returned is reported below for our NBSK and BCTMP pulp operations.

2016 2017

Total (m3/year)

Total Water Diverted

86 million 85.8 million

Total Water Returned

81.8 million 83.7 million

We report our deposits of effluent into water in accordance with Environment Canada’s Pulp and Paper Effluent Regulations, which set regulations for maximum quantities of biochemical oxygen demand matter (which consumes oxygen dissolved in water) and suspended solids that can be deposited from pulp and paper mills under prescribed conditions. The Regulations do not allow the deposit of any effluent that is acutely lethal to fish.

Biochemical Oxygen Demand (BOD)

36 West Fraser Sustainability Report

Total Suspended Solids (TSS)

306-2 Waste by type and disposal method

Data below represents all U.S. and Canadian operations, except landfill data, which includes Canadian operations only.

Total (m3/year) (m3/year)

2016 2017 %

change

Recovered Residuals used for energy (hog fuel, black liquor, turpenes); used onsite or sold as hog fuel

Recovered (beneficial) residuals

2,696,441 2,672,039 -0.9%

Reuse

Reused tall oil in NBSK kraft Pulp mills

6,149 6,149 0%

Land application program, road base, agriculture, oil field absorbent

99,625 90,790 -8.9%

Landfill* Residuals sent to onsite or offsite landfills

Ash 14,170.5 15,472 +9.2%

Wood 24,428 21,906 -10.3%

Pulp mill 55,063.5 53,099 -3.6%

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.

37 West Fraser Sustainability Report

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

Our operations are subject to environmental protection laws and regulations in the United States and Canada. We have developed and apply internal programs (such as our environmental monitoring systems) and policies to help ensure that our operations are in compliance with applicable laws and standards and to address any instances of non-compliance. We are committed to responsible stewardship of the environment and to the continual improvement of our forest practices and manufacturing procedures so we can optimize the use of resources and minimize the impact of our operations on the environment. Our environmental management systems (“EMS”) are based on the ISO 14001 framework. Our EMS provides a systematic approach to meeting our Environmental Policy commitments, complying with environmental legislation, reducing the potential impact of our activities on the environment and striving for continual improvement. The core elements of the EMS are common to all divisions, while each mill or woodlands division customizes the operational elements. One of the most effective methods to achieve continual improvement is to investigate environmental incidents, including near misses. The West Fraser EMS requires the identification of the root cause(s) of an incident and development of an action plan that includes corrective measures, preventative measures to reduce the likelihood of a reoccurrence, and follow-up at a later date to evaluate effectiveness of the action plan. Within our EMS framework, West Fraser expects our operations to:

- Maintain a list of key environmental aspects as part of the facility profile

- Have at least one person with overall responsibility for maintenance and implementation of

the EMS who is provided with the training required to understand the associated regulatory

requirements

- Develop and maintain a ‘Maintaining Environmental Compliance’ calendar accessible to all

personnel with assigned responsibilities in the calendar

- To establish and maintain procedures to control environmental audit reports, action plans and

updates and that they are periodically reviewed, revised and transitioned if there is a key

personnel change.

Our Woodlands EMS (relevant to our forestry management activities that take place in Canada) forms the foundation of our approach to achieve the Sustainable Forestry Initiative (SFI) third-party certification, PEFC Chain of Custody (CoC) requirements and for certain facilities, the FSC Controlled Wood Chain of Custody Certification. Our Woodlands EMS is audited internally and our forestry management and fibre sourcing is audited by independent auditors (audited certifications are published online, accessed through the Certification Programs page). Our Woodlands EMS incorporates similar elements to our manufacturing framework, such as environmental compliance

38 West Fraser Sustainability Report

calendar, training, and identified individual coordinating the facility environmental program, hazard and risk identification, goal and metric tracking, documentation, evaluation, and records keeping. See our Environmental Policy about our approach and commitment to operating responsibly.

307-1 Non-compliance with environmental laws and regulations

We deploy our environmental management program and an audit process to identify and address potential areas of non-conformance with our EMS requirements. We did not pay a significant fine for non-compliance with environmental laws or regulations in 2016. In 2017, West Fraser paid a fine related to an incident when a chemical was delivered to an incorrect storage tank. As part of an agreement with the regulator, the fine was directed to a science museum for the development of an air quality educational program.

308 - Supplier Environmental Assessment

Beyond meeting federal, provincial and state regulations, we maintain rigorous external certifications from a number of accredited standard-setting certification bodies which offer independent verification of the measures that we take to mitigate the effects of our activities on the environment. These certification standards include assessments of our fibre supply chain. In 2016, all of West Fraser operations were SFI certified for Fiber Sourcing. In 2017, we acquired the Gilman mills, which were not certified through SFI for Fiber Sourcing at the time of purchase. We will be pursuing Fiber Sourcing certification for these operations. Fiber Sourcing certification provides assurance that the logs we purchase through suppliers come from sources that comply with applicable laws, regulations and sustainable resource standards, including avoidance of sourcing fibre from controversial sources.

308-1 New suppliers that were screened using environmental criteria

In 2016, 100% of our new fibre suppliers were assessed through our SFI Fiber Sourcing Standard which sets mandatory practice requirements for the responsible procurement of all fibre, including fibre sourced from non-certified land. In 2017, all new log suppliers of our facilities except the recently acquired Gilman mills were assessed through our SFI Fiber Sourcing Standard.

401 - Employment

We respect the same core beliefs that were central to our Company when it was founded in 1955: count all your cents, treat people fairly, laugh out loud and work harder than anyone else in the business to be the best. Our company culture is grounded in a clear set of values: safety, integrity, humility, teamwork, frugality, innovation, competitiveness, and respect for each other. These values underpin how we work with each other, every day. We uphold our values by living by them. It is up to each and every one of us to maintain a respectful workplace, a safe work environment, and to be aware of and appreciate each employee’s contribution to making West Fraser a successful company. We believe all individuals who have the necessary qualifications should have an equal opportunity to compete for employment and advancement and we are committed to the philosophy and principle of

39 West Fraser Sustainability Report

equal employment opportunity for all present and prospective employees. We promote from within, supporting employee skill development through formal and on-the-job training into specialized and leadership roles. As a result, many of our employees have built their careers with us over decades. Promoting from within is a core value we take seriously at every level of the organization. 95% of our management and senior management team are drawn from internal promotions. We believe highly engaged employees are a critical part of how we achieve performance excellence, growth and fiscal strength. Our company culture aims to foster a working environment where every person and position is valued and every person is challenged and can contribute to our shared success. One of our recruitment objectives is to hire a diverse workforce, including improving the workforce participation of Indigenous Peoples, women and visible minorities in our operations. As demographic change shifts a significant portion of our long-serving workforce towards retirement, we are working to attract talented people to consider a career in the forest industry. Our recruitment program supports our efforts to challenge old perceptions of the forest industry and to assist diverse candidates to become aware of the wide range of challenge and growth opportunities afforded by a career in one of our facilities. Underpinning our recruitment effort, we have been recognized as a top employer multiple times, as one of Canada's Ten Most Admired Corporate Cultures (twice, in 2014 and 2017), one of Canada’s Top 100 Employers multiple times, including Top Employer of Young People and Best Employer for Recent Graduates in 2016 and in 2017. These awards are important to our recruiting efforts to demonstrate the long-term career opportunities and the working environment we offer as an employer. 401-1 New employee hires

and employee turnover

• New hires in 2016 (salaried and hourly): 1,209

• New hires in 2017 (salaried and hourly): 1,238*

* Note that the USA New Hires total for 2017 does not include the approximately 900 people that became West Fraser employees as a result of the Gilman acquisition. We do not disclose new hires or turnovers by gender or age group.

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

Our employees are entitled to parental leave in the U.S. as per the federal Family and Medical Leave Act (FMLA). In Canada, all our employees are entitled to parental leave under Canadian employment standards. Employees in Canada may be eligible for additional maternity leave-related benefits in excess of Canadian Employment Insurance benefits. We do not track return to work and retention rates after parental leave.

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

40 West Fraser Sustainability Report

the Company needs to make operational changes sooner than expected, we pay employees for the notice period.

403 - Occupational Health and Safety

West Fraser’s safety goal is to eliminate serious incidents and injuries. We believe safety is a Core Value and Business Priority, that all accidents are preventable, all employees must have ownership of safety and that safety is performance-based and must be managed. We will provide safety leadership, measure and evaluate leading indicators, proactively manage safety and continually improve, have effective Safety Management Systems for employees and contractors and meet or exceed compliance with health and safety regulatory requirements. For us, safety excellence is also operational excellence. Our Health and Safety Policy in conjunction with our Safety Goal, sets out the overall objectives and principles for occupational, health and safety management. While we track common safety statistics such as lost time accidents, we focus our attention on the leading indicators of safety performance, like near-miss incident recording and field level hazard & risk assessment activities that have a demonstrated correlation with safety improvement. In 2015, West Fraser implemented a long-term Safety Improvement Plan (SIP) that focused on leading indicators as measure of safety performance, a broad range of risk reduction strategies and prevention by design for the implementation of best practices across the Company. Safety education, training, hazard awareness and risk control planning form the foundations of our safety programs for management, supervisors, employees and contractors. All new employees are provided a safety orientation before they begin work at our facilities. Every division is responsible for developing a Division-specific Health & Safety plan, and for establishing clear position-specific responsibilities for every supplemental safety system or program that is in effect. Divisional plans are reviewed on a regular basis. Health & Safety near-miss reporting is collected at all sites and shared between our divisions to facilitate development, sharing and implementation of lessons learned and preventive measures. Recordable incidents and near-miss serious incident reports are also distributed to senior management for further review and action. On a quarterly basis, a core safety group that includes our Chief Executive Officer. Chief Operating Officer and our operational Vice-Presidents meet to evaluate the progress of our safety initiatives and to review safety results. Further reports are made to our safety committee (Safety and Environment Committee), comprised of at least three members of our Board of Directors, which meets regularly.

- Our operations in B.C. are certified SAFE Companies by the BC Forest Safety Council as part

of the WorkSafeBC Certificate of Recognition (COR) Program

- Our operations in Alberta are certified to the Partners in Injury Reduction (PIR) Program

through Alberta’s Workers’ Compensation Board and administered by the Alberta Forest

Safety Association

We have developed our own safety audit protocol, which incorporates 26 elements and approximately 275 questions about safety equipment, planning, preparedness, risk assessment and hazard prevention. All of our operations in the U.S. and Canada are audited to this protocol by independent third-party auditor in both provinces, with audits completed every three years. Internal action plans or audits are completed in the interim years.

41 West Fraser Sustainability Report

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

We achieved a 12% reduction in serious injuries in 2017, on top of a 25% reduction between 2015 and 2016.

Health & Safety 2016 2017

Serious Injuries 40 35

Medical Incident Rate 3.24 2.75

Serious injuries are defined as an incident resulting in a fatality or hospitalization of an employee, contractor, or visitor. Serious injuries include, but are not restricted to, amputation, fractures, crush injuries and second or third-degree burns. Our Medical Incident Rate is calculated as the number of recorded medical treatments, restricted work and lost time cases per 100 full-time equivalent employees per year. It is calculated by multiplying the number of cases by 200,000 and then dividing by the exposure hours worked by all employees. The number 200,000 is equivalent to 100 employees working 40 hours per week for 50 weeks.

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.

42 West Fraser Sustainability Report

404-2

Programs for upgrading employee skills and transition assistance programs

We provide internal training through custom educational programs to support hourly and salaried employees to build technical, managerial and leadership skills as they progress in their career with the Company. We also fund external education for employees where appropriate. Upgrading employee skills is critical to our Company because we look first to promote from within our employee workforce into supervisory, trade and management positions. The overwhelming majority of our management and senior management team are drawn from internal promotions. Where redundancies are unavoidable, we do our best to help affected employees transfer internally to new roles, or to help them transition and find other employment whenever possible.

404-3

Percentage of employees receiving regular performance and career development reviews

We believe that developing people is a lot more than a once-a-year performance review, it includes regular feedback as part of employee’s ongoing work to support employees to achieve the necessary skills to develop professionally, whether in an hourly or salaried position. Career development discussions and individual development plans are also part of the development activities for our salaried and hourly personnel. We do not disclose performance and career development review activity by gender or employee category.

403 - 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. See our Code of Conduct, section 5. Human Rights, Discrimination and Harassment.

405-1 Diversity of governance bodies and employees

Women make up 20% (2 individuals) of our Board of Directors Employees by gender (2017)

Salaried Hourly

Female 23% 9%

Male 77% 91%

Employees by age band (2017)

Under 29 30-39 40-49 50+

Female 17% 14% 14% 12%

Male 83% 86% 86% 88%

With the exception of gender, we do not maintain comprehensive records for other diversity indicators of our employees.

43 West Fraser Sustainability Report

405-2 Ratio of basic salary and remuneration of women to men

Wage and salary scales are set based on the duties of the job and to be competitive within local labour market rates. Any person performing the job receives the wage rate for that position regardless of gender.

406 - Non-Discrimination

Our objective is to provide every employee with a work environment that is free of discrimination and harassment based on gender, race, colour, national origin, age, religion, marital status, disability or sexual orientation. We train managers so they can maintain a harassment, discrimination and violence-free workplace. We expect our managers to promptly address concerns raised through complaints in a timely and effective manner. Our Bullying and Harassment policy applies to all employees as well as contractors, consultants, and visitors on West Fraser premises, or which are connected to the workplace and during any employment-related duties or activities, including conferences, training sessions, travel and social functions. 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

Not material to our operations.

44 West Fraser Sustainability Report

rights policies or procedure

411 - Rights of Indigenous Peoples

Our mills and forest operations often work in partnership with Indigenous Peoples in the regions where the Company operates. Through our Aboriginal Community Engagement Framework, we seek to build respectful, long-term, mutually beneficial working relationships with the Indigenous communities located near the areas in which we operate. Within our engagement framework, we focus on developing a solid understanding of the histories, cultures, values and development priorities of the communities, identifying opportunities for the alignment of community economic development initiatives with our business needs and supporting community development in the areas of infrastructure, education, and employment and training. We also engage Indigenous communities to understand potential impacts to treaty and Aboriginal rights, and traditional uses, that may arise from our planned forest management operations. As part of this practice, we seek to align our engagement efforts with community relationship building processes, including working with communities to conduct traditional cultural site visits. In Canada within our forest planning, engagement and consultation processes as well as separate outreach, we work with more than 100 Indigenous communities and organizations in the regions where we harvest timber and manage public forest land under government licences. Read an example of how we work in partnership with Indigenous communities where we operate: Restoring Healthy Forests, Supporting Communities - Chetwynd’s Community Forest. Our voluntary forest certification standards include respect for Indigenous Peoples’ property, tenure and use rights. This is specifically addressed in SFI 2015-2019 Standards and Rules, which recognizes the principles outlined in the United Nations Declaration for the Rights of Indigenous Peoples. SFI Program Participants, including West Fraser, communicate and collaborate with local Indigenous Peoples and communities in order to better understand their traditional practices with respect to forest management. See more information about our approach on the First Nations page and Responsibility section of our website, the 2016 Annual Report, pages 10 and 41 and the 2017 Annual Report, pages 15-16 and 65-66.

411-1 Incidents of violations involving rights of indigenous peoples

See more information about our approach on the First Nations page and Responsibility section of our website, and our 2016 Annual Report, pages 10 and 41. 2017 Annual Report, pages 15 – 16, and 65 – 66. We disclose all material litigations and legal proceedings in our regulatory filings.

45 West Fraser Sustainability Report

412 - Human Rights Assessment

As per our Code of Conduct, we are committed to continual improvement of our human rights standards and practices. We believe every employee and potential employee, as well as every customer, supplier, contractor or other person in a business relationship with West Fraser must be treated with dignity and respect, and that our employees are also responsible for treating others with dignity and respect. We are committed to working with Indigenous Peoples in a manner that promotes mutual respect and understanding of each other's interests, values and goals. We do not condone, tolerate or ignore any harassment or discrimination on any ground protected by applicable law, and will not condone, tolerate or ignore violence or threats of violence. Training is provided to our managers so they can maintain a harassment, discrimination and violence-free workplace, and promptly address concerns raised with, or observed, by them. We review and assess the effectiveness of and our compliance with these commitments. All of our operations adhere to the human rights laws of the United States and Canada, which includes protection of our employees’ rights of free association and collective bargaining. See our Code of Conduct, section 5. Human Rights, Discrimination and Harassment.

412-1

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

We maintain multiple voluntary forest certification standards that require the review of human rights issues within our harvesting and fibre purchasing activities. In Western Canada our wood sourcing policy for our pulp and MDF operations is further certified and independently audited to PEFC Chain-of-Custody and FSC’s Controlled Wood certifications. These certifications incorporate requirements that no wood is harvested in violation of traditional and civil rights or any of the ILO Core Conventions, as defined in the ILO Declaration on Fundamental Principles and Rights at Work, 1998.

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.

46 West Fraser Sustainability Report

412-3

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

We are certified to SFI for Fiber Sourcing for procured timber. The Gilman mills acquired in mid-2017 will be pursuing SFI Fiber Sourcing certification in 2018. Beyond SFI, we maintain a number of forestry certifications which include requirements that we have avoided controversial sources, including fibre harvested in violation of traditional and civil rights or in violation of any of the ILO Core Conventions, as defined in the ILO Declaration on Fundamental Principles and Rights at Work, 1998.

413 - Local Communities

We are always balancing environmental, social and economic values in the regions where we operate. Our business only survives – and thrives – by developing, building and maintaining strong relationships and a track record of responsible operation in the regions where we operate. Between 2016 – 2017 we planted more than 126 million seedlings as part of our reforestation programs, a portion of the 1.7 billion trees we have planted since the Company was founded. The majority of our operations in Canada and the U.S. are in rural communities and in many of these places, we are the largest employer. In these areas, our operations provide important tax revenue streams to local municipalities and counties through property and business taxes to help fund essential services and infrastructure projects. Our dedicated employees are also drawn from these communities. Our facilities donate to more than 500 local community organizations every year. We take our dedication to sustainable forest operations, our efforts in maintaining safe working environments and efficient, performance-based manufacturing processes very seriously. We also understand that operations of our size and scope come with significant responsibilities. The ripple effect of our mills’ economic impact in our communities is much greater than the direct employees of our Company and the local taxes we remit. Our business depends on local third-party providers for services such as log purchases, logging, road building, reforestation, trucking and transportation. In Canada, the economic multiplier for the forest sector is the highest amongst natural resource industries; 1.35. Our business model is based on integrating contractors, small and local businesses and services to our mills, and this induces more jobs in the areas where our facilities are located. See the Responsibility section on our website for more in-depth information.

413-1

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

In the U.S. and Canada, we contract hundreds of small and local business suppliers and contractors where we operate. Frequently, these relationships are long-term business partnerships built up over many seasons – and not infrequently decades – of working together. In the forest sector, on average every worker directly employed by West Fraser represents as many as two to three indirect and induced jobs in the wider community.

47 West Fraser Sustainability Report

In Canada where we hold forest management licences, we participate in extensive public and stakeholder consultation about our forest planning, wildlife and habitat concerns, harvesting, reforestation and reclamation activities. Our actions are independently audited by the provincial governments in Alberta and British Columbia and through our forest management certifications. More information about our public and stakeholder consultation activities and forest planning is available in the Forest Management and Social Responsibility areas of our website Responsibility section. Our forest management activities also open up access for recreation in the forest, via the forestry roads we maintain and the campgrounds and trails we manage via collaborations like the Foothills Recreation Management Association in Hinton, Alberta. Beyond meeting directly with key stakeholders, in many of our communities where we manage forests, our forestry plans are publicly available and we coordinate community open houses and public advisory groups where we operate to engage with the public with regard to our forest management planning and operations. In community open houses and through these public advisory groups we present and accept feedback about our sustainable forest management planning. This includes approaches to managing for forest values such as scenic views, recreation access, wildlife and habitat management, roads, conservation zones, fish and water as well as cultural heritage and historical sites, harvesting plans and reforestation operations. Our donation program focuses on enhancing the quality of life in the communities where we operate, forest education, health & wellness and the pursuit of formal education. From 2015 – 2017, West Fraser has donated $3.2 million dollars in the U.S. and Canada. Because our employees live where they work, as a result they are frequently active participants as volunteers in their community organizations such as sports teams, social service organizations and as volunteer fire fighters. We offer a number of scholarships and bursaries, including the Pete Ketcham Memorial Scholarship, for students in the communities and regions where we operate, and at educational institutions near our operations. Many of the scholarships available are listed in the Training & Scholarships page in the Careers section of our website.

414 - Supplier Social Assessment

Our operations are dependent on the consistent supply of substantial quantities of wood fibre. We maintain a number of independent, third-party audited certifications related to fibre procurement that incorporate supplier screening criteria. Our fibre sourcing requirements under our SFI Fiber Sourcing certification include measures to broaden the practice of biodiversity, use forestry best management

48 West Fraser Sustainability Report

practices to protect water quality, providing outreach to landowners and to encourage the use of forest management and harvesting professionals. Wood fibre procured in our supply chain must also be shown to come from legal and responsible sources, whether the forests are certified or not. Read more about our Certifications on our website.

414-1 New suppliers that were screened using social criteria

In 2016, all of our operations were SFI certified for Fiber Sourcing. When procuring wood fibre, SFI Fiber Sourcing requires that West Fraser has information from sellers to show that the fibre comes from legal and responsible sources in the United States and Canada, whether the forests are certified or not. We intend to pursue certification for the Gilman mills acquired in mid-2017. In Canada, our wood and wood fibre supplies are also audited under PEFC Chain-of-Custody and FSC Controlled Wood certifications. These certifications demonstrate that the fibre procured in our supply chain comes from sources that comply with applicable laws, regulations and sustainable resource standards, including avoiding sourcing fibre from controversial sources, harvested in violation of traditional and civil rights or in violation of any of the ILO Core Conventions, as defined in the ILO Declaration on Fundamental Principles and Rights at Work, 1998.

415 - Public Policy

Public policy and legislation can have a significant impact on our business. Many public policy issues, including forest management and environmental regulations, carbon policy and climate change, taxation, and trade policy are discussed in our 2016 Annual Report, pages 9-14, & 38-42 and the 2017 Annual Report, pages 12-22 & 59–68. Beyond government policymakers and public officials, we engage with a broad cross-sector of stakeholders including trade, forestry and business associations, customers, suppliers, employees, Indigenous Peoples, local communities and non-governmental organizations on public policy issues related to our business and the forestry sector through our fibre procurement and forest management planning activities. We comply with all Canadian and U.S. laws relating to political donations in the jurisdictions where we do business.

49 West Fraser Sustainability Report

415-1 Political contributions

We comply with all Canadian and U.S. laws relating to political donations in the jurisdictions where we do business. We did not make political contributions in Alberta or the United States in 2016 or 2017. We did make contributions to the BC Liberal Party, a major political party in British Columbia, in 2016 and 2017.

Political Contributions 2016 2017

Canada $76,800 $112,650

United States $0 $0

416 - Customer Health and Safety

Wood is a 100% renewable building product. When considered over a building’s lifetime – from harvest of raw materials through manufacturing, transportation, installation, use, maintenance and disposal or recycling – it performs better than concrete and steel in terms of embodied energy, air and water pollution, carbon footprint and global warming potential. Further, it is a natural insulator and can contribute to better air quality by minimizing the accumulation of dust and microbes. More information is available on our website Build With Wood page.

416-1

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

Product information, Safety Data Sheets (SDS) and certifications organized by product are available on our website all of our products to help people handle and use our products appropriately. Life cycle assessment (LCA) is a performance-based approach to assessing the impacts building material choices have on the environment. Cradle-to-grave life cycle analysis is available for our Canadian-produced products LVL, MDF, plywood and softwood lumber through the Athena Sustainable Materials Institute (supported by FPInnovations, of which West Fraser is a member). Environmental Product Declarations (EPDs) are concise, standardized, independently verified reports on environmental performance. The American Wood Council (AWC) and the Canadian Wood Council (CWC) have developed EPDs in compliance with ISO 14025 and ISO 21930, verified under UL Environment’s EPD program. Three EPDs cover West Fraser’s products: 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.

50 West Fraser Sustainability Report

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

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

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.