Performance Against 2015 Targets — Canfor

Forestry & Manufacturing

Objective Performance

Reduce by 10% the number of incidents of harvesting activity not consistent with plan per million cubic metres of total delivered volume.

The number of harvest and road trespasses increased in 2015.

Reduce by 10% the number of riparian management incidents per million cubic metres of total delivered volume.

Achieved. The number of incidents was down 54%, from 1.27 incidents per Mm3 to 0.68 incidents per Mm3.

Reduce by 10% the number of occurrences of sedimentation and/or disruption of water flow in fish bearing streams per million cubic metres of total delivered volume.

Achieved. The number of incidents was down 61%, from 0.33 incidents per Mm3 to 0.20 incidents per Mm3.

Reduce by 10% the number of incidents where herbicide is applied outside of a treatment per hectare treated.

Achieved. The number of incidents was down 61%, to 0.043 per hectare treated from 0.11 per hectare treated.

Reduce by 10% the number of forestry fuel management incidents per million cubic metres of total delivered volume.

The number of incident increased in 2015.

Continue efforts to establish sustainable solutions to historical and ongoing wood residue accumulations of woody debris at our sawmill sites.

Achieved. Established Wood Residue Task Force; used drone aerial photography to quantify mill woody debris accumulations at nine sites. Next steps are to characterize the accumulations, identify management options and prepare mill-specific management plans.

Test a higher capacity log yard debris and screening system at one sawmill to reduce landfill quantities. If successful, implement it at other sawmills.

Achieved. Processed 18,730 cubic metres of logyard debris at two sawmill sites, separating the debris into usable bark, rock and mineral matter and fines.

Energy Efficiency

Objective Performance

Continue implementing our energy use reduction plan for solid wood facilities, including a 10% reduction in electricity use per unit of sawmill production over 2015 and 2016.

Canfor reduced its energy use by 1.9% in 2015.

Safety

Objective Performance

Achieve a company-wide medical incident rate of 2.0 or lower.

Significant progress was made towards this goal in 2015 while integrating our newly acquired US South operations in to our safety reporting.

Introduce a safety monitor program to communicate safety updates and other important information, and test it in several facilities..

Achieved. Tested Canfor TV to run a continuous loop of safety tips and other information. Eight locations had monitors by the end of 2015.

Community & People

Objective Performance

Expand partnerships with First Nations through activities coordinated through a company-wide First Nations Working Group.

Achieved. Activities included three pulp mill tours for First Nations students, attendance at nine career fairs and 14 cultural awareness workshops; a business matchup session, and a range of sponsorships.

Host community events in all of our operating communities.

Community events held in Canadian operating communities, and employee events held in US operating communities.

Meet with mayor of each operating community.

Met with mayors in each of our Canadian locations and some of the US locations.

Establish high school scholarships for forestry and trades related studies in all of our operating communities.

Have scholarships in place at all Canadian locations, and establishing them at US locations.

Support the 2015 Canada Winter Games for our north central BC communities, including a program for high school students.

Achieved. Sponsored Games, welcomed visitors at Canfor House, hosted 500 students from north central communities.

Continue to enhance the new skills development and training program to facilitate effective and safe performance of tasks.

Achieved. Established a leadership development program as well as Canfor College, an internal skills development program, with more than 1,360 participants in the various courses offered in 2015.