Louisiana-Pacific Corporation. Sustainable Sourcing

Transcription

1 Louisiana-Pacific Corporation Sustainable Sourcing

2 A Leader in Our Markets Segment LTM Revenue 1 Summary OSB Leading producer of OSB in North America Positioned to compete in all geographic markets Competitive delivered cost 5.4 bsf of OSB capacity in North America Leading producer of value-added OSB Siding # 1 producer of treated engineered wood siding 7 Siding plants with 1.8 bsf of capacity Diversified end markets with stable pricing Strong national presence Competitive installed cost Engineered Wood Products # 3 producer in North America # 1 producer of solid sawn I-Joist A leading supplier to dealers and two-step distribution 2 LVL and 1 LSL plant with 16.4 mm cubic feet capacity 220 mmlf of I-Joist capacity South America 43% 34% 15% 7% Only producer of OSB and OSB Siding in South America 2 OSB plants in Chile with 290 mmsf of capacity 3 rd Chilean mill under construction 1 OSB plant in Brazil with 390 mmsf of capacity Growing demand for wood-based residential construction 1 Excludes $20.3 million (approximately 1% of revenue) of Other Products and Intersegment Sales.

3 Wood Fiber is LP s Single Largest Raw Material 2016, wood fiber accounted for 32% of input cost LP consumes 11 million tons of logs annually o o o 40% pine 50 % aspen 10% mixed hardwood Wrap around the earth 10X 11 millions tons is the equivalent of o 375,000 truckloads

4 LP through the Years : LP sold more than $875 million of land assets to provide financial flexibility : LP developed Sustainable Forestry Program and began certifying its forest management and fiber sourcing operations 2001: LP started OSB production in Chile to serve growing demand for panel products in South America By 2003: LP had sold all company lands, focused on OSB, Siding and EWP

5 LP s SFI Certifications SFI Forest Management & Fiber Sourcing Oct 27, 2000 US & Canada Gatewood & Stumpage Manage 12 million acres in Canada Source approx. 10 millions tons/year SFI & PEFC Chain of Custody Mar 6, 2009 US & Canada All EWP mills Some Siding & OSB mills

6 LP Label Use On/Off product Marketing materials Web sites and blogs Promotional materials & displays Vendors and dealers SFI Certified Sourcing SFI PEFC Certified PEFC/

7 Market Definitions The market is defining responsible sourcing to mean more than certified fiber in products Customer Procurement Policies driving definitions Customers want assurances that natural resources are sustainably managed across the entire landscape Not just certified forests Some are requesting producers to increase % content from certified forests

8 LP 2016 Volumes - US & Canada 94% Trained Loggers 67% from Private Lands 80% Private Wood from IWS 6% 33% 20% 94% Trained Loggers 67% Private 80% Private from Independent Wood Suppliers 94% from Trained Loggers, 6% from Non-Trained 33% Wood from Public Lands, 67% from Private Lands 80% Private from Independent Wood Suppliers, 20% Stumpage

9 SFI Fiber Sourcing Standard Includes requirements for: Use of written agreements for the purchase of raw materials from the forest Use of qualified trained loggers Use of State BMPs Outreach, research and risk assessments monitoring systems to help ensure compliance in the forest

10 LP Fiber Sourcing Program A system to ensure our entire wood supply is sourced from legal, non-controversial, well-managed forests To demonstrate commitments & to quantify our actions: Corporate commitments to certification, research, outreach, training, reporting, partnerships and continuous improvement A structured EMS, driven by company policies & procedures Contracts that drive the use of BMPs, trained suppliers & trained contractors Internal and 3 rd party audits Annual SFI Management Review meetings, US and Canada

11 Landowner Outreach State Forestry Associations Logger Training Youth Awareness Community Events Research Projects Conservation Projects Community Outreach, Landowner Awareness, Logger Training & Conservation Partnership

12 Logger Training

13 Internal & 3 rd Party Audits

14 Its More Than Just Forest Management & Fiber Sourcing! Outreach, Awareness, Training & Conservation LP sources wood from 8 9 states in the US 13 LP Foresters in the US serve on 8 state SFI Implementation Committees with 5 as Chair or Vice-Chair 10 serve on 6 American Forest Foundation American Tree Farm Committees as Members, Chairs, Officers and Inspectors

15 WHAT? Increase active forest management for the benefit of the nation s forests as well as for wildlife habitat. WHY? NWTF s professional biologists and their history of success will strengthens LP s efforts to promote wildlife habitat along with sustainable forest management. HOW? Increase reach and support for activities that promote wildlife habitat within active forest management. LP Conservation Partnership National Wild Turkey Federation Together, LP & NWTF can NWTF s Big 6 Focal Landscapes and LP s Facilities Support family forest owners and loggers with the information and resources they need to provide quality wild turkey habitat. Reach more landowners and develop more wildlife habitat than either of us could otherwise do on our own. Brad Southern, LP COO, Becky Humphries, NWTF CEO, Signing Memorandum of Understanding February 2017

16 Forest Roads and Wetlands Project Issue - Wetlands are prominent and highly connected in the boreal forest - making them vulnerable to road development Objective - build roads to maintain natural flow characteristics of different types of wetlands Collaboration - wetland experts and forestry professionals to understand wetland flow characteristics and enhance road building techniques in Manitoba and Saskatchewan

17 Sustainability Beyond Forest Management Our plants sustain rural communities and their economies Building products have long life cycles and sequester carbon Water quality Meet or exceed emissions standards requirements

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