Climate Change Data

Woodbois Limited

Climate Impact & Sustainability Data (2019-01 to 2019-06, 2023)

Reporting Period: 2019-01 to 2019-06

Environmental Metrics

ESG Focus Areas

  • Sustainable forestry management
  • Transparency
  • Environmental, Social, and Governance (ESG) best practice

Environmental Achievements

  • Placed 7th out of 97 companies on the SPOTT timber producers table for transparency in sustainability practices.
  • Released 2018 Sustainability Report.
  • Civil works for kilns completed and operational in Q3 2019, adding $700,000 to the bottom line annually.
  • New sawmill equipment ordered, expected to improve margins by at least 10%.

Social Achievements

  • Strong showing in SPOTT report, demonstrating commitment to ESG best practices.
  • Added two traders to the Mauritius business during Q3 2019.
  • Actively seeking relationships with reliable suppliers of high-quality sawn timber and veneers across the Congo basin.

Climate Goals & Targets

Medium-term Goals:
  • Maintain high levels of revenue growth.
  • Operate production facilities with enhanced efficiency and at full capacity.
  • Scale the trading business while optimizing the deployment of all available trade finance.
Short-term Goals:
  • Operations to become cash-flow positive while maintaining focus on delivering high-quality products and services.

Environmental Challenges

  • Disruption at the port in Libreville led to a backlog of shipments.
  • Envision (buyer of Tanzanian agricultural assets) has not yet paid the initial proceeds as per the payment schedule, leading to legal action.
  • Issues with cutting and export licenses in Mozambique in previous years.
Mitigation Strategies
  • Backlog of shipments started to clear as operations at the port normalized.
  • Legal action commenced against Envision to recover outstanding payments.
  • Mozambique operations are now leaner and more flexible, focusing on the domestic market.

Supply Chain Management

Responsible Procurement
  • Seeking relationships with reliable suppliers of high-quality sawn timber and veneers across the Congo basin.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SPOTT

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Sustainable forestry
  • Health and safety
  • Carbon sequestration
  • Community engagement
  • Corporate governance

Environmental Achievements

  • Remained one of the top companies in the ZSL SPOTT transparency assessment, ranking 8th out of 100 timber and pulp firms.
  • Continued work on the Afforestation/Carbon Sequestration project awarded by the Government of Gabon, aiming to regenerate natural forests and create at least 1,000 permanent jobs.
  • Significant progress towards achieving full forest certification.

Social Achievements

  • Improved workplace safety and health initiatives, including specialized screenings and educational sessions for employees.
  • Allocated over 60,000,000 FCFA for community-selected projects, including electrification initiatives, healthcare, and educational infrastructure upgrades.

Governance Achievements

  • Improved corporate governance, risk management, and stakeholder communication efforts.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050 (Gabon's pledge)
Medium-term Goals:
  • Expanding the value of forest resources
  • Consolidating M&A activity
  • First carbon credits anticipated by 2028
Short-term Goals:
  • Maximising production
  • Streamlining operations
  • Becoming cash-flow positive

Environmental Challenges

  • Withdrawal of a critical $6m credit line in April 2023 leading to a temporary liquidity crisis.
  • Squeezed margins due to subdued trading activity.
  • Production impacted by shutdowns aimed at optimizing workflows and addressing inefficiencies.
  • Significant impact from the Gabon military coup in August 2023, causing instability, border closures, curfews, and disruptions to supply chains and regulatory processes.
  • Considerable changes to the executive team in 2023.
Mitigation Strategies
  • Overcame liquidity crisis through new equity raises.
  • Reviewed trading strategy and implemented a more selective approach.
  • Implemented a comprehensive overhaul of Gabon operations, replacing the complete management team and introducing new real-time procedures and controls.
  • Secured a Trade Finance credit line up to USD 5m with a strategic partner in the Middle East.
  • Completed the disposal of non-core assets in Mozambique.
  • Restructuring and centralizing international administration.
  • Plans to open an office in Dubai.
  • Actively pursuing new strategic partnerships.
  • Focusing on maximising production, streamlining operations, becoming cash-flow positive and expanding the value of forest resources.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Adverse weather conditions impacting transport routes
Opportunities
  • Carbon credits and sustainable forestry activities

UN Sustainable Development Goals

  • SDG 15 (Life on Land)

Sustainable forestry practices and ethical sourcing.