1
Introduction
Y.Q is a newly established company focussed on pulp and paper making for public consumption.
The company is in charge of acquiring raw resources of pulp and paper, as well as, gain pulp and
paper during complexly process. Y.Q is located in Quebec along the St. Lawrence River.
Resolute Forest Products that is the third largest pulp and paper company in North America also
located in Quebec.1 Because there are sufficient water resource for industrial manufacture and a
lot of forest resources in Quebec which are the original material for pulp and paper. According to
activities of pulp and paper making; impair water quality and damage habitat of animals are key
environmental issues. A large number of wastewater is discharged into rivers that produced in
processing of pulp and paper making. Pulp and paper effluent contains nutrients and dissolved
toxic matter; it would lead to aggravating eutrophication and toxicity of water. People who drink
contaminated water or use of fisheries resources are might result in illness or even death. At the
same time, it is influence habitat and survive of aquatic animals. When wastewater discharge into
rivers, would result in some endangered species are forced in more precarious status. Thus in
order to avoid losses net profit in the future; it is necessary to evaluate the potential
environmental liabilities related to investing in Y.Q.
Liability 1
Control of discharge wastewater into river and protection aquatic animals is under new Pulp and
Paper Effluent Regulations (PPER). The company that against this act may be undertaking the
relative fine or even be contributing to close the industry. During activities of pulp and paper
making, it would produce lots of harmful chemical matters and discharge those materials into the
river. Effluent of pulp and paper would destroy aquatic animals and its habitat. At the same time,
it also impact on people’s health who uses the contaminated water or eats the fisheries resources.
In 1980, Pulp and Paper Effluent Regulations (PPER) which control the management of
discharge were passed under Fishers Act. But it is less than 10% industries from Canada in
control. In 1992, a new Pulp and Paper Effluent Regulations were passed under Fisheries Act,
and it has stringent rule limits requirement of biological oxygen and total suspended solids. In
addition, new federal regulations were passed under the Canadian Environmental Protection Act
in the same year. Those regulations to control release of dioxins and furans. Due to the new
regulations contain all industries under demand for environmental effects monitoring (EEM).
There are efficient to measure the control regions of fish, its habitat, and human use fisheries
resources.2 Thus, discharge wastewater of pulp and paper is depended on new Pulp and Paper
Effluent Regulations and new federal regulations. Industry should follow these acts. Otherwise
the liability can force the company has to fine or shut down its operations.
Liability 2
Pulp and paper manufacturing is particularly water intensive, because the process produces an
important amount of wastewater. It is harmful to aquatic system if not sufficiently treated. In
Canada, it has stringent requirements for discharge wastewater. Violating relative regulations is a
liability that must be considered because not only obliged to pay a fine but also damage
reputation of the company. Canadian Business for Social Responsibility (CBSR) is a non-profit
origination for coordinating corporate social and environmental sustainability in Canada. It
provides one of the key risks for Canadian companies faces that due to reputation impaired
unable to achieve social license to operate. According to The Business Case for an integrated
Approach to Water Management, cause environmental destruction and company’s reputation
2
damage that usually occurs accidental discharges in pulp and paper industry. Wastewater is
contributing to a water body cannot be provisionally or permanently supply drinking water,
entertainment, aquatic system, and land system.3 In other words, pulp and paper industry
discharge wastewater into the river to decline water quality, at the same time, damage its
reputation and public image would cause lose consumers’s purchase direct influence profit.
Thus, damage reputation of a company is a liability that Y.Q must be focused.
Liability 3
Y.Q is located along the St. Lawrence River in Quebec. The select location of pulp and paper
industry along the river in order to obtain adequate water resources for industrial manufacture,
and the wastewater produced by activities of pulp and paper making easier to discharge. For
industrial company, 75% are located along the St. Lawrence River. In order to correctly
recognize the importance of protecting and reestablishing the St. Lawrence River, the
government of Québec and the government of Canada jointly develop and implement the St.
Lawrence Action Plan in 1989. Significant results of industrial shows when implement the first
three phases of St. Lawrence Action Plan.4 It means to develop and implement the St. Lawrence
Action Plan is necessary and effective. This assessment is dominated by the applicable law in
Quebec. In the assessment, it is specifically indicated its purpose, related principles, major issues
of the St. Lawrence, and how to governance the St. Lawrence River etc. By the way, the purpose
of this assessment is facilitate Parties commit and St. Lawrence Action Plan are better integrating
work. The one of the priority issues contains improve water quality. 5 Thus, St. Lawrence Action
Plan is under law of Quebec, and the company against this assessment might be litigation as well
as pay legal fees for lawsuits or pay a fine. It is damage credibility of the company and affect net
profit of the company.
Conclusion
A large amount of wastewater is produced by pulp and paper making operations, and it
discharged into the river. New Pulp and Paper Effluent Regulations (PPER) is limits harmful
chemical matters discharge into the river. Violation of PPER and relative regulations is a liability
that must be pay attention. It could influence net profits if the company has to pay a fine or even
shut down, at the same time, it damage reputation of the company. Y.Q is located along the St.
Lawrence River, the government of Quebec and the government of Canada worked together to
develop and implement the St. Lawrence Action Plan. The assessment point out approaches of
improving management and recovery of the St. Lawrence River; St. Lawrence Action Plan is
acted by the law of Quebec. Companies should follow this plan; otherwise the company could be
litigation and pay legal fees for lawsuits. In addition, it is also damage credibility of the
company. The company offend law of protection of a water body or against wastewater effluent
regulations is result in the company in trouble. It will bring issues of fine, force company closed,
and damage credibility and reputation of the company; lead company shut down its operations is
the most problematic.
3
Reference
1. “Resolute Forest Products,” http://www.resolutefp.com/en/?langtype=4105
2. McMaster, MarkE., L. Mark Hewitt, and JoanneL. Parrott. "A Decade of Research on the
Environmental Impacts of Pulp and Paper Mill Effluents in Canada: Field Studies and
Mechanistic Research." Journal of Toxicology and Environmental Health, Part B 9, no. 4 (2006):
319-39.3.
3. Wesley Gee, Meirav Even-Har, Millie Adam. “The Business Case for an integrated Approach
to Water Management.” Canadian Business for Social Responsibility.
http://www.mcgill.ca/files/water2010/Canadian_Business_for_Social_Responsibility.pdf
(accessed December, 2009).
4. Bibliothèque nationale du Québec. Quebec Water Policy. Quebec:Bibliothèque nationale du
Québec, 2002.
5. Environment Canada. Canada–Quebec Agreement on the St. Lawrence, 2011–2026 (St.
Lawrence Action Plan 2011-2026). Quebec: 1989-2009.