1. FILE 1 CANADIAN FOREST PRODUCTS LTD. Sustainable Forest Management & Canfor’s Forest Management System 2016

2. FILE 2 CANADIAN FOREST PRODUCTS LTD. Outline  Certification Standards  Overview of Canfor’s Sustainable Forest Management Program - What is Sustainable Forest Management (SFM) –Why is SFM important to Canfor? –How will Canfor deliver SFM?  Sustainable Forest Management Plans (SFMP)  FMS Overview, Structure, Elements  Take Away Messages

3. FILE 3 CANADIAN FOREST PRODUCTS LTD. Certification Standards CAN/CSA Sustainable Forest Management Standard  CAN/CSA Z809 standard is based on a Canadian definition of sustainability developed by the Canadian Council of Forest Ministers (CCFM). Registers a performance standard rather than a product or systems standard.  Components of CAN/CSA: –Public Participation –Management System –Continual Improvement –Sustainable Forest Management Plan

4. FILE 4 CANADIAN FOREST PRODUCTS LTD. Certification Standards Canadian Standards Association’s (CSA) 6 Criteria: 1. Conservation of biological diversity 2. Maintenance & enhancement forest ecosystem condition & productivity 3. Conservation of Soil & Water resources 4. Forest ecosystem contributions to global ecological cycles 5. Multiple benefits to society 6. Accepting society’s responsibility for sustainable development

5. FILE 5 CANADIAN FOREST PRODUCTS LTD. Certification Standards ISO 14001 Standard An internationally recognized Standard for Environmental Management Systems (EMS) Published by the International Organization for Standardization (ISO) Can be applied to all types and sizes of organizations

6. FILE 6 CANADIAN FOREST PRODUCTS LTD. Certification Standards Sustainable Forestry Initiative (SFI) An area of Canfor’s operations located in the Alberta Forest Management Area held by Daishowa-Marubeni International (DMI) are certified to the SFI, along with most of Canfor’s Southern Pine areas. SFI is a fully-independent program for sustainable forest management that certifies forest operations across North America

7. FILE 7 CANADIAN FOREST PRODUCTS LTD. Certification Standards Forest Stewardship Council (FSC) FSC is an international certification and labeling system dedicated to promoting responsible management of the world's forests Only applies to Canfor’s Kootenay Region Principles (10) & Criteria describe the essential elements or rules of environmentally appropriate, socially beneficial and economically viable forest management.

8. FILE 8 CANADIAN FOREST PRODUCTS LTD. What is Sustainable Forest Management (SFM)?  A process to deliver forest values in a way that does not compromise those values for future generations. Goal: “Maintain & enhance the long-term health of our forest ecosystems, for the benefit of all living things both nationally & globally, while providing environmental, economic, social & cultural opportunities for the benefit of present & future generations.” (1998 Canada Forest Accord / National Forest Strategy)

9. FILE 9 CANADIAN FOREST PRODUCTS LTD. What is Sustainable Forest Management (SFM)? Socially Acceptable Options Economically Viable Options Sustainable Forest Management Options Ecologically Appropriate Options

10. FILE 10 CANADIAN FOREST PRODUCTS LTD. Why is SFM Important to Canfor?  Customers are demanding products from sustainable forests  A proactive rather than reactive system to manage change  A commitment made by the Forest Products Association of Canada.

11. FILE 11 CANADIAN FOREST PRODUCTS LTD. How Will Canfor Deliver SFM?

12. FILE 12 CANADIAN FOREST PRODUCTS LTD. How Does Canfor Deliver SFM? Engaging the public in discussions about forest values & priorities through Public Advisory Groups (PAGs) Creating Sustainable Forest Management Plans (SFMPs) Maintaining Certification for those plans Implementing the SFMPs through a Forest Management System (FMS) that also guides field forest practices using an Environmental Management System approach.

13. FILE 13 CANADIAN FOREST PRODUCTS LTD. Canfor’s Forest Management System - 2016 Sustainable Forest Management Plans

14. FILE 14 CANADIAN FOREST PRODUCTS LTD. Sustainable Forest Management Plans Covers a specific area - Defined Forest Area (DFA). Translates the strategic goals of Sustainable Forest Management to operational reality on the ground using locally developed Criteria & Indicators, Considers a range of social, ecological and economic values for the DFA, Considers current legislation and government policy, Designed to meet the requirements of the CSA Z809 Certification Standard.

15. FILE 15 CANADIAN FOREST PRODUCTS LTD. Sustainable Forest Management Plans SFM Plan Canfor - Policies - Plans Research & Monitoring Public Values: Communities LRMP’s/Public/PAGs/First Nations Government Legislation, Policies Implementation Certification CSA Standards Forest Management System (FMS)

16. FILE 16 CANADIAN FOREST PRODUCTS LTD. FMG SFM Plans Canfor is involved with 11 SFM Plans (and DFA’s) Grande PrairieFort Nelson Fort St John PilotChetwynd TFL 48 MackenziePG (Includes TFL 30) Fort St James Vanderhoof Morice (Houston) Kamloops TSA (Vavenby) Radium All are Certified under CAN / CSA Z809

17. FILE 17 CANADIAN FOREST PRODUCTS LTD. FMG SFM Plans Public Advisory Groups (PAGs)  Contribute to the identification of local values  Information sharing, discussing common concerns  Provide feedback through review of performance via Annual Reports Annual Reporting  An annual report showing performance of the SFM Plan indicators is produced every year Regular Auditing Canfor conducts regular third party audits of our SFMPs Internal ( Consultant) External ( Registrar) – KPMG

18. FILE 18 CANADIAN FOREST PRODUCTS LTD. Canfor’s Forest Management System - 2016 Review of Canfor’s Forest Management System

19. FILE 19 CANADIAN FOREST PRODUCTS LTD. Canfor’s Forest Management System - Overview A System combining the elements of an Environmental Management System (ISO) and a Sustainable Forest Management Program (CSA). Includes all activities within Canfor's Woodlands on Canfor tenures, whether performed by Canfor's or a contractor's employees.

20. FILE 20 CANADIAN FOREST PRODUCTS LTD. Canfor’s Forest Management System - Overview  Canfor’s Forest Management System identifies, addresses and manages environmental impacts and sustainable forest management commitments within all of Canfor’s Woodlands Operations  The system is based on the Plan-Do-Check-Act Continual Improvement Cycle

21. FILE 21 CANADIAN FOREST PRODUCTS LTD. Canfor’s FMS Structure – Strategic Level Environmental Policy FMS Elements & Manual Environmental Aspects Environmental Program

22. FILE 22 CANADIAN FOREST PRODUCTS LTD. Canfor’s FMS Structure - Operational Level Checking, Reviews, Improvement SWP’s, Standards, Management Systems Pre works, Inspections, Reports

23. FILE 23 CANADIAN FOREST PRODUCTS LTD. FMS Also Describes 1.Roles & Responsibility; 2.Training; 3.Documentation; 4.Operational Controls; 5.Emergency Preparedness and Response; 6.Monitoring and Measurement; 7.Incidents, and Corrective and Preventative Action; 8.Records; 9.Management System Audit; 10.Management Review

24. FILE 24 CANADIAN FOREST PRODUCTS LTD. Canfor’s Forest Management System Environmental Aspects: –Defined as: “An element of an organization’s activities that can interact with the environment” –Every activity that we do (falling trees, site prepping, road building, tree planting, driving ATV’s, etc.) has the potential to cause an impact (good or bad) on the environment. –Canfor currently manages for a list of 18 Environmental Aspects. 9 of these are reviewed at each Pre-work/Inspection: FireTerrain Stability Soil ProductivityDrainage Patterns Fish HabitatRiparian Areas Forest HealthGeneration of CO2 etc. Petroleum/Chemical Handling

25. FILE 25 CANADIAN FOREST PRODUCTS LTD. Canfor’s Forest Management System Environmental Aspects: Canfor reviews the Environmental Aspects annually to determine their applicability and whether new aspects need to be managed –Aspects are also ranked according to significance annually –Significance refers to the probability and consequence of an activity adversely affecting the environment

26. FILE 26 CANADIAN FOREST PRODUCTS LTD. Canfor’s Forest Management System Environmental Program: –The top significant aspects and associated activities are chosen annually –Objectives, targets, and action plans are developed to reduce the potential environmental impact Link to: Environmental_Program_2016

27. FILE 27 CANADIAN FOREST PRODUCTS LTD. Canfor’s Forest Management System Operational Controls -Standard Work Procedures -Emergency Preparedness Plans -Management Systems & procedures -Standards - Fuel Standards, Ribbon & Paint Standards -Pre Work Meetings -Monitoring & Inspections -Corrective Action Plans

28. FILE 28 CANADIAN FOREST PRODUCTS LTD. Canfor’s Forest Management System FMG Emergency Preparedness and Response Plan

29. FILE 29 CANADIAN FOREST PRODUCTS LTD. Canfor’s Forest Management System  The Emergency Preparedness and Response Plan (EPRP) describes the emergency responsibilities, response organization, and provides associated information and procedures in preparing for and responding to emergency situations.  Emergency situations identified in the Canfor EPRP are: –First Aid- Major Vehicle Incident –Forest Fire –Spill –Natural Catastrophe

30. FILE 30 CANADIAN FOREST PRODUCTS LTD. Canfor’s Forest Management System  The EPRP is applicable to all Canfor employees  In BC operations the environmental related sections (Forest Fire, Spill, and Natural Catastrophe) of the EPRP are also applicable to contractors employees and subcontractors.  The safety related section (First Aid) only applies to Canfor staff.  All Canfor staff and Contractors (BC only) are required to have a copy of the EPRP and be familiar with all applicable parts of the document.  The EPRP booklet must be available when activities are being conducted on Canfor tenured operations.

31. FILE 31 CANADIAN FOREST PRODUCTS LTD. Canfor’s Forest Management System  The EPRP Contains –Emergency Response Concepts –Canfor Environmental Policy –Contract Worker and Contract Supervisor SWP’s –First Aid Evacuation Procedures –Forest Fire Preparedness and Response Procedures –Spill Preparedness and Response Procedures –Natural Catastrophe Response Procedures –Contact Information for FMG staff, Key Contractors and Emergency Numbers –Medivac Information, Spill Report, and Initial Fire Report forms

32. FILE 32 CANADIAN FOREST PRODUCTS LTD. Contract Worker and Contract Supervisor SWP’s  To meet the goals of the Environmental Policy, these SWP’s address specific activities that can impact the environment and describe procedures for carrying out those activities in a controlled manner.  Canfor Supervisors are responsible for ensuring their employees and contractors are aware of AND are trained in the use of operational controls which apply to their work.  Both are critical in making sure what we plan on the ground will work, and plans are followed.  Both are located in the EPRP, and also in Sharepoint –fmg_contract_supervisor_swp.xlsfmg_contract_supervisor_swp.xls –fmg_contract_worker_swp.xlsfmg_contract_worker_swp.xls

33. FILE 33 CANADIAN FOREST PRODUCTS LTD. Take Away Messages The Environment and Sustainability are important to Canfor and our customers. Canfor is Committed to Sustainable Forest Management and to continually improving our environmental results Canfor’s Environmental and Sustainable Forest Management commitments are delivered through our Sustainable Forest Management Plans & our Forest Management System. Canfor’s FMS is ISO 14001 registered and FMG has 11 SFMPs registered under CAN / CSA Z809 Our Certifications include: CAN/CSA Z809, ISO14001, FSC, and SFI

34. FILE 34 CANADIAN FOREST PRODUCTS LTD. Take Away Messages Your Responsibility: Through your training, understand & carry out those SFM & FMS responsibilities as they apply to your position.

35. FILE 35 CANADIAN FOREST PRODUCTS LTD. Accessing information: Link to Sharepoint: https://info.canfor.ca/fmg/FM G_Main/Forms/Certification_F F_PA.aspx#  Canfor.com  Current Legislation: Quickscribe  FMS documentation: forms, procedures…on FMG Sharepoint

36. FILE 36 CANADIAN FOREST PRODUCTS LTD. Canfor’s Forest Management System QUESTIONS?