Azwood carbon future. We are committed to actively helping

Azwood Energy’s environmental goal is to “helpNew Zealand organisations transition to a low carbon future”.

This goal isinformed by our Environmental OperationStatement: “We will use our technical knowledge andexperience to help ensure all wood fuel projects are successful, whether we arethe preferred supplier or not.Azwood Energy believe every successful woodenergy project helps New Zealand transition to a lower carbon future. We arecommitted to actively helping businesses, organisations and New Zealand achievetheir environmental targets.”Environmental sustainability is vital to ourbusiness model, our business strategy, our brand and a key part of ourdecision-making framework and corporate strategy. We believe that actingsustainably is the right thing to do for our environment, our society and tosupport Azwood Energy’s long-term economic success.

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Sustainability in a broad sense requires thatour business decisions incorporate all aspects of economic, social andenvironmental objectives. Our decisions are informed by our organisation’svision and values of CARE. They are also informed by our Why Statement, the statement that drives our operation and informsthe reasons why we are in business;  “We believe in being resourceful and making themost of what we have been given.”Making the most of what we have been givenrelates to every area of our business. From the development of people andorganisations within our circular economy, to the natural resources with which wework.

We care for what we have been given, we addvalue and develop intelligently, whether it be in relationships, or thesustainability practices that are core to our business.At Azwood Energy we focus on the areas where webelieve we can make the biggest difference to our people, customers,stakeholders and the environment. This starts with our core business of woodenergy fuels – our strongest commitment to renewable energy – which founds thebasis of the sustainable practices permeating the entire organisation.  SCOPE This policy applies to the Parent CompanyAzwood Limited. Subsidiary companies are expected to follow the intent of thispolicy and develop sustainability policies relevant to their operations.

FOCUS The key areas we focus on are:·       Renewable Wood Energy·       Reducing Emissions·       Environmental Clean-Up·       Ensuring Sustainable Sourcing·       Working Sustainably·       Engaging Communities RENEWABLE WOOD ENERGYAs the sustainability of the biomass woodsupply we use is a fundamental driver for our business, we make every effort toensure all our supplies comply with the following principles:·       Significantly reduces greenhouse gas emissionscompared to fossil fuel-fired generation·       Does not endanger food supply or communitieswhere the use of biomass is essential for subsistence (for example heat,medicines and building materials)·       Does not adversely affect protected orvulnerable biodiversity and, where possible, gives preference to biomassproduction that strengthens biodiversity·       Deploys good practices to protect and/orimprove soil, water, (both ground and surface), and air quality·       Contributes to local prosperity in the area ofsupply chain management and biomass production·       Contributes to the social wellbeing of employeesand the local population in the biomass-producing areasREDUCING EMISSIONSThe energy created by wood fuel is consideredcarbon neutral. As a tree grows it removes carbon dioxide from the atmosphere,and when it is burned it releases the same amount of carbon dioxide it had previouslyabsorbed. Fossil fuels are a form of stored carbon, whenburned they produce billions of tonnes of additional carbon dioxide into theatmosphere. Azwood Energy will endeavour to reduceemissions by helping organisations transition from fossil fuels to wood fuel toattain the following outcomes:·       Replacing the use of fossil fuels, thereby reducingthe high amount of particulates emitted when fossil fuels are burned·       Sourcing of raw material for wood fuel fromresidue streams that would otherwise rot and release wasteful and unnecessarystored carbon, which the wood absorbed through its lifetime ·       Use residue streams for wood energy from timberbuilding product manufacturing to assist the carbon cycle, with trees becomingcarbon negative and actively removing carbon from the atmosphereENVIRONMENTAL CLEAN UPAzwood Energy will continue unique practicesthat help to manage waste streams to produce carbon neutral, renewable energy.We will do this by: ·       Clearing forestry skid sites. Azwood Energywork in partnership with forestry to clean up skid sites after mature,sustainably managed trees have been harvested·       Assisting with replanting. Clearing sites meansthat planting and tree growth is greatly increased, allowing the sustainablemanagement and replenishing of habitats·       Reducing fire risk. Azwood remove the leftovertimber and branches from the skid- processing site, essentially removing fuelfor forest ?res that can be ignited through external sources or spontaneouscombustion·       Reducing erosion.

Build-ups form natural damscreated by forest residues have the potential to cause slips and erosion duringextreme weather events. The removal of excess slash reduces the risk andpotential impact of erosion·       Helping to achieve cleaner waterways. Duringperiods of heavy rain forest residues can be washed into local waterways. Weremove hard debris that can wash into and erode riverbanks and habitats·       Reducing landfill waste. Azwood Energy takeswaste and residues from manufacturing that would normally go to landfill,adding value and using it to improve the land or in energy production·       Creating a viable alternative to fossil fuels.Azwood Energy processes wood residues into standardised, accredited, carbonneutral wood fuel that can be burned as an alternative to fossil fuels likecoal, gas and diesel, thereby reducing emissions.  ENSURING SUSTAINABLE SOURCINGWe have an environmental, social and economicresponsibility to ensure we constantly drive improvements along our supplychain, from forestry practices in the locations where raw materials for woodfuels are sourced, to the point they are processed, blended and enter boiler orheating units or are sold as a renewable heat fuel.

A critical part of this isbuilding close relationships with our suppliers so we can openly discuss issueswith them and support efforts to improve their working practices.We will endeavour to bring suppliers into oursustainably focused Resource Fuel® programme which is an overall operating systemfor the sustainable disposal of waste streams.WORKING SUSTAINABLYWe will work to incorporate sustainability inour culture, policies, processes and systems. We will engage our people onsustainability issues, and support them to make business decisions with along-term view of sustainable practices.Where possible, all aspects of ourenvironmental policy will be considered when making choices around oursuppliers and operations.

·       Ensure sustainability is integrated into ourlong-term strategy, our governance processes, and our business planning andperformance management cycles ·       Continue to encourage sustainable practices andbehaviour in our suppliers through our sustainable procurement practices ·       Ensure Azwood  Energy employees enjoy a safe, diverse, andengaging place to work with opportunities for development and growth ·       Reduce the adverse environmental impacts ofoperating our businessENGAGING COMMUNITIESFrom the winder industrial community, toeducation facilities and the wider public, Azwood Energy will educate andcelebrate carbon neutral, renewable wood energy. We will endeavour to grow themarket, which will in turn further educate and lessen the demand for fossilfuel heat and process energy. ·      Useour technical knowledge to ensure successful wood energy projects·      Makeit easy for customers to understand the benefits of wood energy in comparisonto fossil fuels·      Deliveran exceptional customer experience every time we are involved in a wood energyproject·      Buildgood quality relationships based on open communication and trust with keystakeholder groups and local communities, to ensure our relationships arevalued and valuable ·      Contributeto local communities and to the broader community through values of CARE and charity·      Achievebest practice in the delivery of fuel supply for customers·      Delivereducational programmes to schools and organisations·      Promoteand market success stories to all stakeholdersSuccess Fuel® will be theprimary vehicle for the promotion of wood energy and to celebrate anorganisation’s commitment to sustainable energy.

Success Fuel® will becontinually improved as an operating system, a framework for how like-mindedorganisations view energy. It will be promoted as an overarching marketing strategyand an alignment of vision and values.Success Fuel® will alsoremain exclusive to those organisations that have made a series of decisionsthat have resulted in a positive commitment to their community.IMPLEMENTATIONThe Azwood Energy Executiveteam will:·      Demonstrateleadership by identifying sustainability priorities and endorsing actions thatalign with Azwood Energy’s commitment to sustainability ·      Obtainand consider advice about emerging sustainability issues, risks andopportunities and incorporate this knowledge in business planning ·      Encouragethe use of sustainability principles in company practices and processes ·      Shareexperiences of what they anENVIRONMENTAL SUSTAINABILITY POLICY STATEMENTAzwood Energy’s environmental goal is to “helpNew Zealand organisations transition to a low carbon future”. This goal isinformed by our Environmental OperationStatement: “We will use our technical knowledge andexperience to help ensure all wood fuel projects are successful, whether we arethe preferred supplier or not.

Azwood Energy believe every successful woodenergy project helps New Zealand transition to a lower carbon future. We arecommitted to actively helping businesses, organisations and New Zealand achievetheir environmental targets.”Environmental sustainability is vital to ourbusiness model, our business strategy, our brand and a key part of ourdecision-making framework and corporate strategy. We believe that actingsustainably is the right thing to do for our environment, our society and tosupport Azwood Energy’s long-term economic success.Sustainability in a broad sense requires thatour business decisions incorporate all aspects of economic, social andenvironmental objectives. Our decisions are informed by our organisation’svision and values of CARE.

They are also informed by our Why Statement, the statement that drives our operation and informsthe reasons why we are in business;  “We believe in being resourceful and making themost of what we have been given.”Making the most of what we have been givenrelates to every area of our business. From the development of people andorganisations within our circular economy, to the natural resources with which wework.

We care for what we have been given, we addvalue and develop intelligently, whether it be in relationships, or thesustainability practices that are core to our business.At Azwood Energy we focus on the areas where webelieve we can make the biggest difference to our people, customers,stakeholders and the environment. This starts with our core business of woodenergy fuels – our strongest commitment to renewable energy – which founds thebasis of the sustainable practices permeating the entire organisation.  SCOPE This policy applies to the Parent CompanyAzwood Limited. Subsidiary companies are expected to follow the intent of thispolicy and develop sustainability policies relevant to their operations.FOCUS The key areas we focus on are:·       Renewable Wood Energy·       Reducing Emissions·       Environmental Clean-Up·       Ensuring Sustainable Sourcing·       Working Sustainably·       Engaging Communities RENEWABLE WOOD ENERGYAs the sustainability of the biomass woodsupply we use is a fundamental driver for our business, we make every effort toensure all our supplies comply with the following principles:·       Significantly reduces greenhouse gas emissionscompared to fossil fuel-fired generation·       Does not endanger food supply or communitieswhere the use of biomass is essential for subsistence (for example heat,medicines and building materials)·       Does not adversely affect protected orvulnerable biodiversity and, where possible, gives preference to biomassproduction that strengthens biodiversity·       Deploys good practices to protect and/orimprove soil, water, (both ground and surface), and air quality·       Contributes to local prosperity in the area ofsupply chain management and biomass production·       Contributes to the social wellbeing of employeesand the local population in the biomass-producing areasREDUCING EMISSIONSThe energy created by wood fuel is consideredcarbon neutral. As a tree grows it removes carbon dioxide from the atmosphere,and when it is burned it releases the same amount of carbon dioxide it had previouslyabsorbed.

Fossil fuels are a form of stored carbon, whenburned they produce billions of tonnes of additional carbon dioxide into theatmosphere. Azwood Energy will endeavour to reduceemissions by helping organisations transition from fossil fuels to wood fuel toattain the following outcomes:·       Replacing the use of fossil fuels, thereby reducingthe high amount of particulates emitted when fossil fuels are burned·       Sourcing of raw material for wood fuel fromresidue streams that would otherwise rot and release wasteful and unnecessarystored carbon, which the wood absorbed through its lifetime ·       Use residue streams for wood energy from timberbuilding product manufacturing to assist the carbon cycle, with trees becomingcarbon negative and actively removing carbon from the atmosphereENVIRONMENTAL CLEAN UPAzwood Energy will continue unique practicesthat help to manage waste streams to produce carbon neutral, renewable energy.We will do this by: ·       Clearing forestry skid sites. Azwood Energywork in partnership with forestry to clean up skid sites after mature,sustainably managed trees have been harvested·       Assisting with replanting. Clearing sites meansthat planting and tree growth is greatly increased, allowing the sustainablemanagement and replenishing of habitats·       Reducing fire risk. Azwood remove the leftovertimber and branches from the skid- processing site, essentially removing fuelfor forest ?res that can be ignited through external sources or spontaneouscombustion·       Reducing erosion. Build-ups form natural damscreated by forest residues have the potential to cause slips and erosion duringextreme weather events. The removal of excess slash reduces the risk andpotential impact of erosion·       Helping to achieve cleaner waterways.

Duringperiods of heavy rain forest residues can be washed into local waterways. Weremove hard debris that can wash into and erode riverbanks and habitats·       Reducing landfill waste. Azwood Energy takeswaste and residues from manufacturing that would normally go to landfill,adding value and using it to improve the land or in energy production·       Creating a viable alternative to fossil fuels.Azwood Energy processes wood residues into standardised, accredited, carbonneutral wood fuel that can be burned as an alternative to fossil fuels likecoal, gas and diesel, thereby reducing emissions.  ENSURING SUSTAINABLE SOURCINGWe have an environmental, social and economicresponsibility to ensure we constantly drive improvements along our supplychain, from forestry practices in the locations where raw materials for woodfuels are sourced, to the point they are processed, blended and enter boiler orheating units or are sold as a renewable heat fuel.

A critical part of this isbuilding close relationships with our suppliers so we can openly discuss issueswith them and support efforts to improve their working practices.We will endeavour to bring suppliers into oursustainably focused Resource Fuel® programme which is an overall operating systemfor the sustainable disposal of waste streams.WORKING SUSTAINABLYWe will work to incorporate sustainability inour culture, policies, processes and systems. We will engage our people onsustainability issues, and support them to make business decisions with along-term view of sustainable practices.Where possible, all aspects of ourenvironmental policy will be considered when making choices around oursuppliers and operations. ·       Ensure sustainability is integrated into ourlong-term strategy, our governance processes, and our business planning andperformance management cycles ·       Continue to encourage sustainable practices andbehaviour in our suppliers through our sustainable procurement practices ·       Ensure Azwood  Energy employees enjoy a safe, diverse, andengaging place to work with opportunities for development and growth ·       Reduce the adverse environmental impacts ofoperating our businessENGAGING COMMUNITIESFrom the winder industrial community, toeducation facilities and the wider public, Azwood Energy will educate andcelebrate carbon neutral, renewable wood energy. We will endeavour to grow themarket, which will in turn further educate and lessen the demand for fossilfuel heat and process energy.

·      Useour technical knowledge to ensure successful wood energy projects·      Makeit easy for customers to understand the benefits of wood energy in comparisonto fossil fuels·      Deliveran exceptional customer experience every time we are involved in a wood energyproject·      Buildgood quality relationships based on open communication and trust with keystakeholder groups and local communities, to ensure our relationships arevalued and valuable ·      Contributeto local communities and to the broader community through values of CARE and charity·      Achievebest practice in the delivery of fuel supply for customers·      Delivereducational programmes to schools and organisations·      Promoteand market success stories to all stakeholdersSuccess Fuel® will be theprimary vehicle for the promotion of wood energy and to celebrate anorganisation’s commitment to sustainable energy. Success Fuel® will becontinually improved as an operating system, a framework for how like-mindedorganisations view energy. It will be promoted as an overarching marketing strategyand an alignment of vision and values.Success Fuel® will alsoremain exclusive to those organisations that have made a series of decisionsthat have resulted in a positive commitment to their community.IMPLEMENTATIONThe Azwood Energy Executiveteam will:·      Demonstrateleadership by identifying sustainability priorities and endorsing actions thatalign with Azwood Energy’s commitment to sustainability ·      Obtainand consider advice about emerging sustainability issues, risks andopportunities and incorporate this knowledge in business planning ·      Encouragethe use of sustainability principles in company practices and processes ·      Shareexperiences of what they and their teams have done, recognising and celebratingsuccess, as well as sharing lessons learnedREPORTINGAzwood Energy will regularlyand transparently communicate our sustainability performance to interestedstakeholders. d their teams have done, recognising and celebratingsuccess, as well as sharing lessons learnedREPORTINGAzwood Energy will regularlyand transparently communicate our sustainability performance to interestedstakeholders.