Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Increased share of certified, third-party verified, or controlled wood from 84% in 2012 to 89% in 2014
• Publication of an Environmental Product Declaration for Danzer hardwood veneer
• Zero unlawful discharges of water or oil in 2014

Social Achievements

• Continued development of community infrastructure in the Congo Basin
• Publication of a manual, “Conflict Sensitivity Due Diligence for Timber Companies in the Congo Basin”
• Increased auditing of suppliers
• Training of all employees on the revised Danzer Code of Conduct

Governance Achievements

• Formalization of its policy against bribery and corruption
• Danzer’s Code of Conduct was translated into five operating languages and integrated into employee training
• Re-association with the Forest Stewardship Council

Climate Goals & Targets

Environmental Challenges

• Complexity of Danzer’s supply chain poses significant sustainability challenges regarding the legality and sustainability of raw material sources
• High risk for corruption in some operating regions
• Challenges in measuring the success of resource efficiency improvements due to the diversity of products
• Illegal logging and the need to ensure lawful sourcing of raw materials

Mitigation Strategies

• Strict procurement policy implemented, resulting in termination of some supplier relationships
• Formalized Anti-Bribery and Corruption Policy and engagement with the Basel Institute on Governance for Collective Action
• Development of a matrix to measure progress on resource efficiency
• Formalized Procurement Policy with third-party audits, risk assessments, due diligence, and increased audit frequency

Supply Chain Management

Supplier Audits: Increased audit frequency (approximately 50% increase)

Responsible Procurement

• Formalized Procurement Policy based on risk assessment, due diligence, and audits

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI) Core

Certifications: ISO 14001:2004, ISO 9001, FSC® Forest Management, FSC and PEFC™ Chain of Custody, NEPCon Legal Source™, Chain of Custody for TLTV Legality Verified Timber

Sustainable Products & Innovation

• Vinterio (formaldehyde-free wooden surface)
• Linea (formaldehyde-free reconstituted hardwood veneer)

Environmental Metrics

ESG Focus Areas

• Resource efficiency
• Sustainable product portfolio
• Climate action
• Occupational health and safety
• Biodiversity
• Responsible forestry
• Economic growth
• Equality
• Anti-corruption

Environmental Achievements

• Saved over 1000 truckloads of logs from becoming sawdust by 2016 through a program producing deck layers for engineered flooring.
• Curve-saw project at Bradford resulted in a 39% decrease in per-unit electricity consumption.
• New boiler with greater efficiency, better control of exhaust, and explosion detection/prevention installed in Souvans, FR.

Social Achievements

• Implemented pre-employment, post-accident, and random drug testing programs in North America.
• Increased total hours of training and education at Danzer locations significantly from 2014 to 2017.
• Implemented a three-step grievance mechanism for addressing employee concerns.

Governance Achievements

• Danzer Veneer North America became the first company to be audited and certified to the ANS LTDD 1.0 2015 standard in 2016.
• Implemented a more focused management structure with two brands, Danzer and Interholco.

Climate Goals & Targets

Environmental Challenges

• Worldwide decline in demand for standard veneer, leading to replacement by unsustainable substitutes.
• Lack of possibilities for transporting logs by rail in Europe to reduce carbon emissions.
• Difficulties in obtaining necessary proofs to ensure minimum-risk for non-compliance along the supply chain from some suppliers.
• Ongoing damage from a spill of fracking residuals on a neighboring property.
• Emerald Ash Borer infestation impacting Ash trees on Danzer Forestland properties.

Mitigation Strategies

• Investing in intelligent resource-saving technologies to improve yield recovery and use of wood resources.
• Developing new processes and products to substitute environmentally demanding materials with wood-based alternatives.
• Implementing strict due diligence procedures for procurement, including discontinuing relationships with non-compliant suppliers.
• Developing Ash salvage plan to recover value from trees impacted by Emerald Ash Borer.
• Investigating alternative biodegradable packaging to reduce reliance on plastic wrap.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Strict due diligence procedures
• Chain-of-custody programs for FSC, PEFC, and controlled wood

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Carbon sequestration through growing trees and hardwood products

Reporting Standards

Frameworks Used: GRI G4: Core

Certifications: ANS LTDD 1.0 2015 (Danzer Veneer North America)

Third-party Assurance: None

UN Sustainable Development Goals

• SDG 3
• SDG 6
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 15
• SDG 16

Danzer's activities contribute to these goals through various initiatives related to resource efficiency, sustainable product portfolio, climate action, occupational health and safety, biodiversity, responsible forestry, economic growth, equality, and anti-corruption.

Sustainable Products & Innovation

• Deck layers for engineered flooring
• Danzer 3D-Veneer for chairs

Awards & Recognition

• 2014 Danzer Sustainability Report shortlisted for Best 1st Time Report in the CRReporting Awards '17 competition.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Land Resource Stewardship
• Air Resource Stewardship
• Biodiversity

Environmental Achievements

• Reduced Scope 1 Greenhouse Gas emissions from 382,266 tons in 2019 to 315,499 tons in 2020. Reduced Scope 2 Greenhouse Gas emissions from 23,623 tons in 2019 to 22,089 tons in 2020. Reduced biogenic CO2 emissions from 50,038 tons in 2019 to 46,319 tons in 2020.
• 75% of Danzer’s purchased logs were FSC Controlled Wood, 20% were FSC Mix Credit and 5% were FSC 100% in 2020.

Social Achievements

• Procured around 43% of wood processed from local communities in Europe and more than 95% in North America in 2020.
• Sold Danzer Forestland assets (20,000 hectares) to Jamestown Timberland Funds, ensuring long-term sustainable forest management.

Governance Achievements

• Maintained FSC® Chain of Custody and Controlled Wood certificates. Due diligence compliant with US Lacey Act and European Timber Regulation. North American procurement activities certified compliant with ANSI LTDD 1.0 2015 Standard.

Climate Goals & Targets

Environmental Challenges

• Pandemic situation slowed production in 2020, impacting emissions data.

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable and legal logs only; compliance with US Lacey Act and European Timber Regulation.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: FSC® Chain of Custody, FSC Controlled Wood, ANSI LTDD 1.0 2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 15

Protecting, restoring, and promoting sustainable use of terrestrial ecosystems; sustainably managing forests; combating desertification; halting and reversing land degradation and biodiversity loss.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Action
• Biodiversity
• Responsible Consumption & Production
• Clean Energy
• Industry Innovation
• Occupational Health and Safety
• Decent Work & Economic Growth
• Gender Equality
• Anti-Corruption
• Water Conservation
• Plastic Reduction

Environmental Achievements

• All Danzer production facilities (except Kesselsdorf) use biogenic fuel (wood residue) for process heat.
• Danzer Veneer Europe improved log rail transport from 250 to 850 wagons between log seasons 2020/21 and 2021/22.
• 129.944 tons of carbon stored in production from Melnik, Edinburgh, and Williamsport facilities, while all facilities emitted 24.333 tons (excluding transportation).
• Introduced biodegradable oxi-plastic packaging (mixed results).

Social Achievements

• Implemented state-of-the-art IT security systems and employee training to protect data.
• Expanded Danzer Sustainability and Compliance Team from five to include representatives from every location.
• Launched Danzer Wellness Program in Darlington, Pennsylvania.
• Implemented programs recognizing employee milestones, providing career ladders, and holding appreciation luncheons.

Governance Achievements

• Implemented a robust Anti-Bribery and Corruption (ABC) Policy with biennial audits and training.
• Successfully resisted attempted bribery or corruption incidents.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacted employment numbers, production time, and value chains.
• High demand for oak created severe stress on the supply chain and forests.
• Climate change impacts on log supply (invasive pests, migrating growth regions, fire).
• Worldwide labor shortage and unwillingness to perform manual labor or shift work.
• Potential for water and energy overuse and solid and hazardous waste from production.
• Potential for corruption in the global supply chain.
• Risks to breaches of personal employee, customer, and supplier data and intellectual property.

Mitigation Strategies

• Implemented emergency action planning, biofuel for heat energy, and energy conservation.
• Investigating clean energy providers and energy innovation.
• Conducting complete Life Cycle Assessments (LCA) for all products to provide EPDs.
• Improving energy saving programs and investigating solar power and co-generation.
• Robust responsible procurement policy with third-party certifications and verification.
• Annual risk assessments and audits of the supply chain.
• Corrective action system for forced labor risks.
• Training for procurement staff and management on identified risks.
• State-of-the-art IT security systems and employee training.
• Multi-layered protection from firewalls to user training to prevent future cyberattacks.
• Third-party cyber awareness training for all computer users.

Supply Chain Management

Responsible Procurement

• Sustainable forest management, third-party certifications, traceability and legality of wood products, due diligence, corrective actions for risks, training for procurement staff.

Climate-Related Risks & Opportunities

Physical Risks

• Heat stress at manufacturing operations, damage/interruption of operations from extreme weather events, longer transportation routes.

Opportunities

• Energy efficiency improvements, development of energy-efficient products.

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: A qualified external party in Switzerland advised on completeness; external assurance for 2022 report planned.

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 14
• SDG 15
• SDG 16
• SDG 17

Report details Danzer's alignment with various SDGs through its policies, initiatives, and impact assessments.

Sustainable Products & Innovation

• Danzer Line Scanner (DLS) for increased yield from forest to living room; 3mm flooring decklayer program.

Awards & Recognition

• Danzer’s 2016 Sustainability Report placed in the Top 10 in two categories of the 11th annual CR Reporting Awards 2018.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Conservation
• Waste Reduction (Plastic)
• Occupational Safety
• Employee Training

Environmental Achievements

• Reduced water discharge by >60% in one year
• Reduced wood fuel consumption by 48% at Edinburgh facility
• Reduced product packaging by >24%
• Reduced disposable water bottle consumption by approximately 66%

Social Achievements

• Reduced injury rates at 3 locations
• Standardized recordkeeping for training in progress

Governance Achievements

• Became a participant in the United Nations Global Compact (UNGC)

Climate Goals & Targets

Environmental Challenges

• OSHA inspection at Williamsport facility revealed deficiencies
• Uncertainties surrounding climate change impacts
• Inconsistencies in wood fuel usage across facilities

Mitigation Strategies

• Initiated RAMP (Risk Assessment Mitigation Preparation) program
• Implemented corrective actions based on OSHA findings
• Modified Edinburgh fuel feed system to reduce wood fuel consumption
• Developed alternative sourcing strategies

Supply Chain Management

Responsible Procurement

• Sustainable Forest Management (SFM) certification; Due Diligence measures; Danzer Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Heat, drought/flooding, pest/disease infestation

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Increased demand for sustainable materials; financial incentives for renewable energy investments

Reporting Standards

Frameworks Used: ESRS, GRI

Certifications: ISO 14001

Awards & Recognition

• EcoVadis Sustainability Bronze Medal