CORPORATE RESPONSIBILITY

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1 CORPORATE RESPONSIBILITY

2 OVER 100 YEARS OF DEVELOPMENT

3 CONTENTS Timber 4 The Metsäliitto Group 6 Finnforest UK Ltd 7 Corporate Policies 8 Contacts IBC Social and environmental responsibilities are central to our thinking and we take corporate responsibility seriously - through the timber we supply, the people we employ and the communities and countries we operate in. 3

4 TIMBER A RENEWABLE RESOURCE Wood has obvious advantages over other materials: it has the potential to regenerate, therefore it is renewable; wood is recyclable, waste efficient, biodegradable and non-toxic. Timber provides a material which is strong, light, durable and attractive, but additionally provides important benefits to the environment. Preliminary results of Life Cycle Assessment (cradle to grave) research carried out in Europe, North America and Australia indicate that timber is highly competitive on this basis. Plastic, steel, aluminium, concrete materials are all non-renewable, finite and rapidly being consumed. Global warming, caused by the build up of greenhouse gases such as carbon dioxide, is widely recognised as one of the most serious environmental threats. Timber can help to combat the threat of global warming: Trees absorb carbon dioxide and release oxygen into the atmosphere though the natural process of photosynthesis. A young tree growing in a properly managed forest is a more effective vehicle for carbon dioxide absorption and production of oxygen than a mature forest. Converting timber into a usable building material takes far less energy, and therefore generates far less carbon dioxide, than virtually any other alternative including plastic, aluminium, steel and concrete. Once installed, wood is an extremely effective insulating material with a very high energy efficiency. Well designed timber framed houses are recognised as top performers in energy efficiency. Wood s impact on the environment is broadly neutral, even taking into account harvesting, transportation and handling, whereas man-made materials not only require high energy inputs for their manufacture, but also produce pollution and disposal problems. Material energy requirements for beams of equivalent structural performance*. 550 x 135 softwood glulam 400 x 250 reinforced concrete 303 x 165 steel I beam 1 energy unit 5 energy units 6 energy units *(source: TRADA). 4

5 MINIMAL WASTE Timber waste is minimal with a subsequent low impact on the environment, particularly landfill sites. No part of a log is left unused, wood is utilised into many products and by-products; pulp and paper, solid timber products, panel products and sheet materials. The sawdust and wood chips are used in the construction of panel board products such as chipboard and MDF. Wood chips are also used in paper pulp manufacture. Sawdust and bark are used in other industries such as farming, horticulture and silviculture. Any remaining wood residues may be used as fuel. At Finnforest UK there is very little wood waste, the majority is recycled or re-used and MDF dust is cleanly burnt to produce heat for the mills. At the end of a product s useful life, various options are open for recycling. Solid wood waste may be chipped and re-used to make panel products. Clean sound solid wood components can be re-used, providing their strength has not been compromised. Wood residues contaminated with stones, bark and other horticultural/silvicultural residues are best used as horticultural/composting medium or as a fuel source. THE ADVANTAGES IN CONSTRUCTION Strength for strength, a glued laminated timber beam used, for example, in the construction of sports halls, schools and churches, requires only a fifth as much energy to manufacture as a concrete beam and even less - just 17% - as much as one made of steel. When used as a construction material, wood is a better insulator than the alternatives, such as concrete and steel. Insulating materials incorporated within a timber frame building have their insulating properties helped by the timber, since the wood never gets cold or dissipates heat. Timber buildings, therefore, enjoy a high thermal efficiency, maintaining warmth and using less energy to acquire this warmth. As described above, the less energy used, the less damage to the environment and the smaller your gas and electricity bills are. Wood is stable and predictable in fires, unlike other materials it doesn t buckle or crack. Although it burns, this occurs at a predictable speed known as the charring rate. The thermal insulation properties of timber are such that the timber just a few millimetres inside the burning zone is only warm. This is in contrast to a high thermal conductivity material such as steel, which heats up more uniformly giving rise to problems of expansion and loss of strength over the whole section. 5

6 METSÄLIITTO GROUP The Finnforest Corporation is a core business activity of the Metsäliitto Group, producing and marketing sawn timber, plywood and highly processed special wood products. Our customers include industrial end-users, DIY stores, timber merchants and building supplies companies. The Metsäliitto Group s parent company is Metsäliitto Osuuskunta, a co-operative of over 131,000 family forest owners. The members own about 46% of Finland s commercial forests, which equates to approximately 33% of the total forested area. In 1999 Metsäliitto decided to amalgamate all its mechanical wood processing and sawmilling units to form the Finnforest Corporation. The Metsäliitto Group is now a rapidly growing international company and has activities in over 20 countries, with a total of over 29,000 employees. Finnforest UK is one of the largest units in Europe and the majority of the timber procured is from within the Metsäliitto Group giving us the benefit of knowing the origin of our wood, economies of scale and greater supply chain control than can normally be expected. Metsäliitto recognise the importance of Corporate Responsibility and sign up to the voluntary commitment advocated by the UN Global Compact. These ten universal principles are focused on the key areas of concern such as human rights, labour, the environment and anti-corruption. For further information about the Global Compact visit 6

7 FINNFOREST UK LTD FROM FOREST TO FACTORY TO YOU Finnforest will be Europe s number one provider of solutions and services associated with the use of timber products. The Finnforest business in the UK has come a long way from its initial origins over a hundred years ago when Mr. J. T. Stanton first started his timber company back in Even back then, the business flourished with a commitment to quality and innovation that has become part of the accepted culture of the developing business over the years. The experience and understanding within the company have been earned over years of trading through some of the industry s most highly recognised and respected names like Mallinson Denny, Hunter, Stanton s, Bligh Boards and many more. During this time we ve also been part of groups as wide ranging as Wickes and Brooke Bond but the core personnel have always been there to carry the traditional skills and knowledge through to the next generation. Since 1999 that new generation has been unified as a single company not just in the UK but throughout the world. In Finnforest, we have a company and brand that continues to develop J. T. Stanton s simple ethics of hard work, innovation and service excellence across all of its international operations. We have a history to be proud of in the UK, but our focus will always remain on our customers needs and our social and environmental responsibilities both now and in the future. In the last four years we have invested over 22 million in the UK operations alone in an effort to improve efficiency and meet customer demand. Included in our policies are those that we feel are of most relevance to the company; timber procurement, environmental issues, quality management and the development of our staff. All policies statements will be reviewed annually to cover recommendations from external organisations and regulatory bodies. Roderick Allan Managing Director Finnforest UK Ltd May

8 CORPORATE RESPONSIBILITY Finnforest UK recognises and acknowledges that social and environmental responsibilities are important to corporate productivity and profitability, and are part of a sound business strategy. We appreciate that as a part of a large corporation we have both local and global impacts on the environment and communities, as well as a commitment to meeting customer demands, improving performance and maintaining a highly motivated and trained workforce. INVESTMENT IN PEOPLE We recognise that every business depends on people. The custom built Timber Training Academy is used for training both our customers staff and Finnforest employees. We deliver accredited training courses to our employees and customers as part of this process and to promote best practice. COMMUNITY SUPPORT As an industry leader we are committed to building close links with the local communities in which we operate and believe in contributing to the well-being of the communities where business is conducted. We currently support and sponsor a range of initiatives from local community groups, school football teams, local individuals and members of staff through to high profile national teams and national events. INFORMATION SHARING Finnforest UK is determined to ensure their customers are kept fully up to date and properly informed on all the key issues affecting the trade. Our information service includes well trained staff and a range of regularly updated fact sheets covering topics such as forest certification, legislation, product standards and product-specific health and safety issues. 8

9 TIMBER PROCUREMENT Undoubtedly the most important issue to face Finnforest is the sourcing of our raw material; timber. Timber is one of the few building and construction materials that can claim to be a truly renewable resource, if well managed. Finnforest as a core business activity of Metsäliitto supports forest certification as a valuable instrument for demonstrating that the wood products have originated from sustainable sources. Finnforest are fully committed to encouraging and promoting sustainable forestry practices. Our Timber Procurement Policy recognises the influence we can have through our purchasing in preserving this renewable natural resource. Forest Certification and Chain of Custody give customers the confidence that the timber they purchase is from well-managed forests. BM TRADA externally audits Finnforest UK for Chain of Custody and traceability for all our certified timber. We work closely with our customers to help them meet their requirements such as timber source or social responsibility reporting. RESPONSIBLE TIMBER PROCUREMENT POLICY Finnforest UK Ltd assesses all timber and timber product suppliers so we can clearly identify where all our timber has been sourced and employ risk analysis when making buying decisions. Independent credible evidence of sourcing and good forest management will be sought from all our suppliers of wood and wood products to ensure that, as a minimum, the timber originates from legal and preferably well-managed sources. As a minimum we monitor all our suppliers to avoid: Wood harvested from forests that are threatened or valuable in terms of their habitat and biodiversity, unless they are certified Wood harvested from areas where levels of illegal logging are high unless the supplier is undergoing an independently verified improvement programme Wood harvested from forest areas where traditional or civil rights are violated Wood harvested from natural forests that have been converted to plantations Wood harvested from genetically-modified trees We believe that active engagement is the way forward to work with suppliers to meet our requirements. We recognise the importance of government and non-governmental organisations when assessing or working with our suppliers. Sometimes, we alone cannot achieve our objectives and in which case we will enlist the support of independent third party organisations to ensure that suppliers work to improve their forestry or sourcing practices. As part of our policy commitment we will set progressive targets to achieve our aim of being the UK s largest leading supplier of certified timber. This information is verifiable and frequently monitored as part of our externally audited PEFC and FSC Chain of Custody processes. Finnforest UK supports the work, and is a signatory of the Timber Trade Federation (Forests Forever) Responsible Timber Purchasing Policy and Code of Conduct. Roderick Allan Managing Director Finnforest UK Ltd August 2006 All policy statements and company information within this brochure are correct at the time of going to press. For the most up to date version of our policies, please download our CR Brochure from 9

10 OPERATIONS PERFORMANCE Finally we recognise that performance management through a fully integrated management system for Quality, Environment and Health & Safety is required to ensure we continually improve our services and operations and reduce our risks and impacts. Monitoring our performance is now developing to include social, operational and environmental issues in line with the Global Reporting Initiative to ensure we are able to benchmark, not just within the industry but with the world s leading companies. RESPONSIBLE OPERATIONS POLICY Finnforest UK is a customer focused timber manufacturer and distributor which acknowledges the Quality, Environmental and Health & Safety aspects of every operation it performs. Finnforest UK provides a well trained and motivated work force in recognition that every employee has an impact on our performance and product quality, the safety of our work environment and the company s environmental impacts. We deliver accredited training courses to our employees and customers as part of this process and to promote best practice. This policy statement sets out specific requirements for Quality, Environmental and Health & Safety Management: Quality The Management Board ensures that all operations are conducted on the basis of right first time, every time. We recognise that understanding our customers and determining their requirements is essential for ensuring productivity and profitability. Where possible we will actively introduce and maintain quality marks on products, which meet criteria set by such standards as the Q Mark and ETA specifications. Environment The Company will identify and minimise the environmental impacts of current and new products, operations and services. Within all activities the Company will set objectives to prevent and reduce pollution, minimize or recover waste as well as reducing the consumption of non-renewables. Health & Safety The Company places a high regard for the Health and Safety of its employees and others who may be affected by our activities. We recognise our responsibilities for Health and Safety and acknowledge that the provision of a healthy and safe place to work, safe and well-maintained equipment, safe working methods and procedures, together with good welfare facilities, go hand in hand with good business. Details of our organisation and arrangements for the identification of hazards, control of risks, consultation between management and employees and the management of Health and Safety are set out in our Management System documentation. The Company will ensure that all relevant legislation and other requirements for Quality, Environmental and Health & Safety are met and where best practice is available, exceeded. Finnforest UK Ltd is committed to continually improving across all areas of the business to provide a safer working environment and improved efficiency. Performance is driven through objectives and targets set annually by the Board and Site Management. Annual Management Reviews ensure the continuing effectiveness and appropriateness of our systems, policies and processes whilst monitoring progress on objectives and targets. This policy statement will also be communicated to employees, customers, suppliers and contractors. Our Integrated Manual and Business procedures define and set our standards and work operations. The Company will ensure its Integrated Management System (IMS) is well documented and certified to the relevant internationally recognised standards - ISO 9001:2000 (Quality), ISO (Environment) and OHSAS (Health & Safety). The Board is responsible for ensuring that all resources necessary for implementing this statement are provided. Their roles and responsibilities for the management of Quality, Environment and Health & Safety are outlined in the company s IMS Manual. Roderick Allan Managing Director Finnforest UK Ltd May 2006 All policy statements and company information within this brochure are correct at the time of going to press. For the most up to date version of our policies, please download our CR Brochure from 10

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12 For more information please visit Wood is the only building material that is truly renewable, if well managed. Forest certification schemes give assurance that the timber is legal and from sustainable sources. Finnforest UK sources certified timber over uncertified and is an approved Chain of Custody supplier. FF2088 August The photographs in this brochure are for illustration purposes only. Finnforest reserves the right to change the range without notice.