Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Employees
• Safety
• Forest Values
• Infrastructure & Environmental Performance
• First Nations
• Communities

Environmental Achievements

• Reduced greenhouse gas emissions in several mills by using biomass instead of fossil fuels for lumber drying.
• Planted nearly 8.8 million seedlings (three for every tree harvested).
• Achieved a score of 4.5 out of 5 in environmental compliance audits.
• Supported research to improve environmental benefits and performance of forest products (e.g., cross-laminated timber).

Social Achievements

• Introduced a Millwright Apprenticeship Program in the US South (27 employees).
• Launched efforts to improve hourly workforce retention in the US South (new recruitment, selection, and onboarding programs).
• One-third of open positions filled by internal promotions.
• Created a world-class lumber trading floor in Burnaby, BC.
• Created three Peer Groups focused on Quality Control, Maintenance, and Log Quality.
• Launched the US Southern Operations Quality Control Support Group.
• Provided scholarships of $2,000 each for 25 students.
• Supported community-based organizations with $334,000 in in-kind and/or financial support.

Governance Achievements

• Independent Board of Directors with two women and eight independent members.
• Compliance with corporate governance guidelines for Canadian companies listed on the Toronto Stock Exchange.
• Whistleblower Policy and confidential hotline.

Climate Goals & Targets

Environmental Challenges

• 2017 wildfire season (worst in BC history)
• Shortage of skilled maintenance technicians
• Maintaining high safety standards across all operations

Mitigation Strategies

• Audits and meetings with staff to reduce fire risk and ensure proper fuel handling.
• Millwright Apprenticeship Program.
• Annual safety audits, safety committees, and safety training programs.
• Proactive approach to safety (coaching, training, improved processes).

Supply Chain Management

Responsible Procurement

• SFI Fiber Sourcing Standard
• FSC wood procurement policy (BC Coastal Woodlands)
• Wood Purchasing Guide

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires

Opportunities

• Use of wood products as a low-carbon alternative to other building materials

Reporting Standards

Frameworks Used: SFI 2015-2019 Forest Management Standard, SFI Fiber Sourcing Standard, SFI Chain-of-Custody Standard

Certifications: SFI

Sustainable Products & Innovation

• Cross-laminated timber

Awards & Recognition

• Environmental Sustainability Award at the 18th annual Burnaby Business Excellence Awards
• Industry of the Year in Monticello, AR

Environmental Metrics

ESG Focus Areas

• Governance & Accountability
• Employees
• Safety
• Forest Values
• Climate Change
• Infrastructure & Technology
• First Nations
• Communities

Environmental Achievements

• Achieved a 4.7 rating (out of 4.5 target) in mill environmental performance audits.
• Over 80% of kiln drying operations use residuals as a heat and power source.
• Planted approximately 9.8 million seedlings in BC (three for every tree harvested).
• Won FortisBC’s 2018 Efficiency in Action Award for energy efficiency improvements saving 2,328,299 kWh annually.
• Nearly one-quarter of residuals in the US South were used in renewable energy (268,000 tons/year to wood pellet industry and 226,000 tons/year for sawmills and local pulp mills).

Social Achievements

• Hourly employee turnover rate dropped by 23%.
• Number of open positions fell by more than a third.
• Launched LEAD-X, a company-wide leadership training program.
• Second intake into Millwright Apprenticeship Program with 27 employees enrolled.
• Launched BCIT Industrial Wood Processing Program.
• Hired a record number of 41 co-op students.
• 35% of permanent salaried openings filled by internal promotions.
• Provided $390,000 in in-kind and/or financial support to more than 170 community-based organizations.
• Provided 25 scholarships of $2,000 each.

Governance Achievements

• Nine of ten directors nominated for election in 2019 were independent.
• Adopted a Diversity Policy.
• Three of ten director nominees in 2019 were women.
• Code of Conduct & Ethics applies to all directors, officers, and employees.
• Company has a Whistleblower Policy and hotline.

Climate Goals & Targets

Environmental Challenges

• High hourly employee turnover rate (industry-wide issue).
• Shortage of skilled maintenance technicians.
• Maintaining environmental compliance and continuous improvement.
• Managing risks associated with steep slope harvesting.
• Addressing mid-term timber supply pressures.

Mitigation Strategies

• Implemented new recruitment and selection processes and Onboarding Passport.
• Launched Millwright Apprenticeship Program.
• Implemented standardized safety onboarding training program for Southern operations.
• Implemented continuous improvement through third-party SFI certification and EMS.
• Supported research into steep slope harvesting and safety improvements.
• Supported research into improved fiber utilization.

Supply Chain Management

Responsible Procurement

• State logger training or equivalent programs for procurement suppliers.
• Requirement that at least one supervisor at each logging site is a Qualified Logging Professional.
• Chain of Custody Policy Statement on Wood Fiber Procurement to avoid controversial sources.

Climate-Related Risks & Opportunities

Opportunities

• Promoting the environmental benefits of building with wood.

Reporting Standards

Frameworks Used: SFI

Certifications: SFI 2015-2019 Forest Management Standard, SFI Fiber Sourcing Standard, SFI Chain of Custody Standards, PEFC Chain of Custody Standards

Awards & Recognition

• FortisBC’s 2018 Efficiency in Action Award

Environmental Metrics

ESG Focus Areas

• Safety
• Diversity and Inclusion
• Employee Development
• Culture and Retention
• Climate Change
• Forest Values
• Environment
• Indigenous Relationships
• Communities
• Governance

Environmental Achievements

• 100% of Interfor-managed forests in Canada certified to internationally recognized sustainable forest management standards in 2022.
• 100% of lumber manufacturing operations certified to internationally recognized fiber-sourcing and chain-of-custody standards in 2022.
• Reduced water intensity (m3 water per MFBM of lumber produced) from 0.348 in 2021 to 0.284 in 2022.
• Increased recycled or repurposed wood residuals from 3,280,270 tonnes in 2021 to 4,400,036 tonnes in 2022.

Social Achievements

• Increased total number of employees from 2,801 in 2020 to 4,903 in 2022.
• Increased amount spent on learning and education from over $1.4 million in 2021 to over $2.1 million in 2022.
• Increased hours of learning completed by employees from over 22,000 in 2021 to over 28,000 in 2022.
• Increased co-op students hired for a term from 52 in 2021 to 104 in 2022.
• Total annual donations exceeded $1,200,000 in 2022.

Governance Achievements

• Maintained 91% independent directors on the board throughout the reporting period.
• Shareholder vote in favor of executive pay consistently above 97%.

Climate Goals & Targets

Environmental Challenges

• Safety incidents, including one fatality in 2022.
• GHG emissions.
• Maintaining a diverse and inclusive workforce.

Mitigation Strategies

• Implementation of proactive safety programs and initiatives.
• Ongoing efforts to reduce GHG emissions intensity.
• Initiatives to increase representation of women and under-represented groups in the workforce.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Safety
• People
• Climate Change
• Forest Values
• Environment
• Indigenous Peoples
• Communities
• Governance

Environmental Achievements

• Achieved a 4.8 rating (out of 5) in third-party compliance audits across operations.
• More than 70% of energy needs came from renewable, self-supplied biomass.
• Recycled or repurposed more than 99% of waste and residual materials.

Social Achievements

• 63% of hourly openings filled by internal promotions.
• 696 employees set Career Development goals in 2021.
• Over $1.4 million spent on learning and education.
• 38% of BC Woodlands contractors had Indigenous employees or were Indigenous-owned.

Governance Achievements

• 100% of each of the 4 Board committees is independent.
• All directors are elected annually.
• 98.84% shareholder vote in favor of executive pay at 2021 AGM.

Climate Goals & Targets

Environmental Challenges

• Wildfires impacting log supply and production.
• Extreme weather events causing operational disruptions.
• Increased GHG intensity due to acquisitions.
• Potential for reputational risks related to biodiversity and harvesting practices.

Mitigation Strategies

• Strong wildfire preparedness, prevention, and response programs.
• Comprehensive flood plans and preventative building improvements.
• Implementing a carbon accounting project to enhance GHG tracking and reporting.
• Sustainable forest management practices and stakeholder engagement to address biodiversity concerns.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• SFI Fiber Sourcing Standard
• Wood Purchase Information Package outlining sustainable harvesting practices
• Requirement for compliance with human rights and labor laws
• Vendor Code of Conduct (to be finalized in 2022)

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Extreme high temperatures
• Extreme precipitation
• Coastal and river flooding
• Water stress
• Pests
• Hurricanes

Transition Risks

• Shifting land use
• Reputational risks
• Carbon pricing to operations

Opportunities

• Wood as a climate-friendly building material
• Biomass as a renewable fuel source
• Increased productivity due to climate change

Reporting Standards

Frameworks Used: GRI, GHG Protocol, TCFD, SFI

Certifications: SFI Forest Management Standard, SFI Chain-of-Custody Standard, PEFC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

Appendix I details Interfor's alignment and contribution to each of the 17 UN Sustainable Development Goals.

Sustainable Products & Innovation

• Climate-friendly building products

Awards & Recognition

• 2021 Cornerstone RAVE award for Career Development Process

Environmental Metrics

ESG Focus Areas

• Safety
• People
• Climate & Environment
• Governance

Environmental Achievements

• Achieved a 6% reduction in average electricity consumption intensity in the US South region through capital investments and focus on energy use.
• 77% of energy consumed in 2023 was from renewable sources.
• Nine individual water and waste reduction targets set across several divisions.
• 478 tonnes of wood ash diverted from landfill at Adams Lake Division.
• Completed transfer of 181,036 cubic meters of annual harvest under replaceable forest tenure to the Klahoose First Nation.

Social Achievements

• Achieved best-ever safety performance with a record low medical incident rate (MIR).
• Employees completed more than 30,000 hours of learning.
• Completed a company-wide diversity audit and voluntary diversity survey.
• 47% of external hires were from under-represented groups.
• Launched a new Saw Filer Apprenticeship training program.

Governance Achievements

• Advanced Board of Directors diversity target by a year.
• 69 reports related to safety, environment, human resources and other matters received through whistleblower hotline and other reporting avenues. All reports were investigated.
• Maintained third-party internationally recognized sustainable forest management certification and chain-of-custody certification for 100% of woodlands and sawmills (excluding recent acquisitions).

Climate Goals & Targets

Environmental Challenges

• Wildfire activity threatened forests, mills, and communities.
• Increased frequency and intensity of extreme weather events.
• Drought stress reduced tree survival and resistance to disease and insects.
• Transition to a low-carbon economy with associated policy, legal, market, and technology changes.
• Reputational risks related to biodiversity and forest harvesting.

Mitigation Strategies

• Implemented strong wildfire preparedness, prevention, and response programs.
• Developed comprehensive flood plans for at-risk sites.
• Prioritized mixed species planting and diversity when planting new forests.
• Implemented energy dashboards at each operation to track GHG emissions and energy use.
• Engaged with peers and customers to improve consistency in accounting and reporting on climate-related metrics.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Forestry & Log Procurement Policy
• Supplier Code of Conduct
• SFI Fiber Sourcing Program
• Compliance with applicable human rights and labor laws.

Climate-Related Risks & Opportunities

Physical Risks

• Wildfire
• Extreme high temperatures
• Extreme precipitation
• Riverine flooding
• Coastal flooding
• Pests
• Water stress
• Hurricane risk

Transition Risks

• Shifting land use
• Reputational risks
• Carbon pricing to operations

Opportunities

• Wood as a building material
• Biomass as a fuel
• Production of biofuels from lumber manufacturing residuals
• Mass timber construction

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, Task Force on Climate-related Financial Disclosures (TCFD), Sustainable Forestry Initiative® (SFI)

Certifications: SFI Forest Management Standard, SFI Fiber Sourcing Standard, SFI Chain-of-Custody Standard, PEFC Chain-of-Custody Standard, FSC Chain-of-Custody Standard, ISO 14001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 14: Life Below Water
• Goal 15: Life On Land

Appendix I details Interfor's contributions to each SDG.

Sustainable Products & Innovation

• I-joists
• Mass timber components

Awards & Recognition

• Not disclosed