Azwood carbon future. We are committed to actively helping

Azwood Energy’s environmental goal is to “help
New Zealand organisations transition to a low carbon future”. This goal is
informed by our Environmental Operation
Statement:

“We will use our technical knowledge and
experience to help ensure all wood fuel projects are successful, whether we are
the preferred supplier or not.

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Azwood Energy believe every successful wood
energy project helps New Zealand transition to a lower carbon future. We are
committed to actively helping businesses, organisations and New Zealand achieve
their environmental targets.”

Environmental sustainability is vital to our
business model, our business strategy, our brand and a key part of our
decision-making framework and corporate strategy. We believe that acting
sustainably is the right thing to do for our environment, our society and to
support Azwood Energy’s long-term economic success.

Sustainability in a broad sense requires that
our business decisions incorporate all aspects of economic, social and
environmental objectives. Our decisions are informed by our organisation’s
vision and values of CARE. They are also informed by our Why Statement, the statement that drives our operation and informs
the reasons why we are in business; 

“We believe in being resourceful and making the
most of what we have been given.”

Making the most of what we have been given
relates to every area of our business. From the development of people and
organisations within our circular economy, to the natural resources with which we
work.

We care for what we have been given, we add
value and develop intelligently, whether it be in relationships, or the
sustainability practices that are core to our business.

At Azwood Energy we focus on the areas where we
believe we can make the biggest difference to our people, customers,
stakeholders and the environment.

This starts with our core business of wood
energy fuels – our strongest commitment to renewable energy – which founds the
basis of the sustainable practices permeating the entire organisation.  

SCOPE

This policy applies to the Parent Company
Azwood Limited. Subsidiary companies are expected to follow the intent of this
policy 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 ENERGY

As the sustainability of the biomass wood
supply we use is a fundamental driver for our business, we make every effort to
ensure all our supplies comply with the following principles:

·       Significantly reduces greenhouse gas emissions
compared to fossil fuel-fired generation

·       Does not endanger food supply or communities
where the use of biomass is essential for subsistence (for example heat,
medicines and building materials)

·       Does not adversely affect protected or
vulnerable biodiversity and, where possible, gives preference to biomass
production that strengthens biodiversity

·       Deploys good practices to protect and/or
improve soil, water, (both ground and surface), and air quality

·       Contributes to local prosperity in the area of
supply chain management and biomass production

·       Contributes to the social wellbeing of employees
and the local population in the biomass-producing areas

REDUCING EMISSIONS

The energy created by wood fuel is considered
carbon 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 previously
absorbed.

Fossil fuels are a form of stored carbon, when
burned they produce billions of tonnes of additional carbon dioxide into the
atmosphere.

Azwood Energy will endeavour to reduce
emissions by helping organisations transition from fossil fuels to wood fuel to
attain the following outcomes:

·       Replacing the use of fossil fuels, thereby reducing
the high amount of particulates emitted when fossil fuels are burned

·       Sourcing of raw material for wood fuel from
residue streams that would otherwise rot and release wasteful and unnecessary
stored carbon, which the wood absorbed through its lifetime

·       Use residue streams for wood energy from timber
building product manufacturing to assist the carbon cycle, with trees becoming
carbon negative and actively removing carbon from the atmosphere

ENVIRONMENTAL CLEAN UP

Azwood Energy will continue unique practices
that help to manage waste streams to produce carbon neutral, renewable energy.
We will do this by:

·       Clearing forestry skid sites. Azwood Energy
work in partnership with forestry to clean up skid sites after mature,
sustainably managed trees have been harvested

·       Assisting with replanting. Clearing sites means
that planting and tree growth is greatly increased, allowing the sustainable
management and replenishing of habitats

·       Reducing fire risk. Azwood remove the leftover
timber and branches from the skid- processing site, essentially removing fuel
for forest ?res that can be ignited through external sources or spontaneous
combustion

·       Reducing erosion. Build-ups form natural dams
created by forest residues have the potential to cause slips and erosion during
extreme weather events. The removal of excess slash reduces the risk and
potential impact of erosion

·       Helping to achieve cleaner waterways. During
periods of heavy rain forest residues can be washed into local waterways. We
remove hard debris that can wash into and erode riverbanks and habitats

·       Reducing landfill waste. Azwood Energy takes
waste 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, carbon
neutral wood fuel that can be burned as an alternative to fossil fuels like
coal, gas and diesel, thereby reducing emissions.

 

ENSURING SUSTAINABLE SOURCING

We have an environmental, social and economic
responsibility to ensure we constantly drive improvements along our supply
chain, from forestry practices in the locations where raw materials for wood
fuels are sourced, to the point they are processed, blended and enter boiler or
heating units or are sold as a renewable heat fuel. A critical part of this is
building close relationships with our suppliers so we can openly discuss issues
with them and support efforts to improve their working practices.

We will endeavour to bring suppliers into our
sustainably focused Resource Fuel® programme which is an overall operating system
for the sustainable disposal of waste streams.

WORKING SUSTAINABLY

We will work to incorporate sustainability in
our culture, policies, processes and systems. We will engage our people on
sustainability issues, and support them to make business decisions with a
long-term view of sustainable practices.

Where possible, all aspects of our
environmental policy will be considered when making choices around our
suppliers and operations.

·       Ensure sustainability is integrated into our
long-term strategy, our governance processes, and our business planning and
performance management cycles

·       Continue to encourage sustainable practices and
behaviour in our suppliers through our sustainable procurement practices

·       Ensure Azwood  Energy employees enjoy a safe, diverse, and
engaging place to work with opportunities for development and growth

·       Reduce the adverse environmental impacts of
operating our business

ENGAGING COMMUNITIES

From the winder industrial community, to
education facilities and the wider public, Azwood Energy will educate and
celebrate carbon neutral, renewable wood energy. We will endeavour to grow the
market, which will in turn further educate and lessen the demand for fossil
fuel heat and process energy.

·      
Use
our technical knowledge to ensure successful wood energy projects

·      
Make
it easy for customers to understand the benefits of wood energy in comparison
to fossil fuels

·      
Deliver
an exceptional customer experience every time we are involved in a wood energy
project

·      
Build
good quality relationships based on open communication and trust with key
stakeholder groups and local communities, to ensure our relationships are
valued and valuable

·      
Contribute
to local communities and to the broader community through values of CARE and charity

·      
Achieve
best practice in the delivery of fuel supply for customers

·      
Deliver
educational programmes to schools and organisations

·      
Promote
and market success stories to all stakeholders

Success Fuel® will be the
primary vehicle for the promotion of wood energy and to celebrate an
organisation’s commitment to sustainable energy.

Success Fuel® will be
continually improved as an operating system, a framework for how like-minded
organisations view energy. It will be promoted as an overarching marketing strategy
and an alignment of vision and values.

Success Fuel® will also
remain exclusive to those organisations that have made a series of decisions
that have resulted in a positive commitment to their community.

IMPLEMENTATION

The Azwood Energy Executive
team will:

·      
Demonstrate
leadership by identifying sustainability priorities and endorsing actions that
align with Azwood Energy’s commitment to sustainability

·      
Obtain
and consider advice about emerging sustainability issues, risks and
opportunities and incorporate this knowledge in business planning

·      
Encourage
the use of sustainability principles in company practices and processes

·      
Share
experiences of what they anENVIRONMENTAL SUSTAINABILITY POLICY STATEMENT

Azwood Energy’s environmental goal is to “help
New Zealand organisations transition to a low carbon future”. This goal is
informed by our Environmental Operation
Statement:

“We will use our technical knowledge and
experience to help ensure all wood fuel projects are successful, whether we are
the preferred supplier or not.

Azwood Energy believe every successful wood
energy project helps New Zealand transition to a lower carbon future. We are
committed to actively helping businesses, organisations and New Zealand achieve
their environmental targets.”

Environmental sustainability is vital to our
business model, our business strategy, our brand and a key part of our
decision-making framework and corporate strategy. We believe that acting
sustainably is the right thing to do for our environment, our society and to
support Azwood Energy’s long-term economic success.

Sustainability in a broad sense requires that
our business decisions incorporate all aspects of economic, social and
environmental objectives. Our decisions are informed by our organisation’s
vision and values of CARE. They are also informed by our Why Statement, the statement that drives our operation and informs
the reasons why we are in business; 

“We believe in being resourceful and making the
most of what we have been given.”

Making the most of what we have been given
relates to every area of our business. From the development of people and
organisations within our circular economy, to the natural resources with which we
work.

We care for what we have been given, we add
value and develop intelligently, whether it be in relationships, or the
sustainability practices that are core to our business.

At Azwood Energy we focus on the areas where we
believe we can make the biggest difference to our people, customers,
stakeholders and the environment.

This starts with our core business of wood
energy fuels – our strongest commitment to renewable energy – which founds the
basis of the sustainable practices permeating the entire organisation.  

SCOPE

This policy applies to the Parent Company
Azwood Limited. Subsidiary companies are expected to follow the intent of this
policy 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 ENERGY

As the sustainability of the biomass wood
supply we use is a fundamental driver for our business, we make every effort to
ensure all our supplies comply with the following principles:

·       Significantly reduces greenhouse gas emissions
compared to fossil fuel-fired generation

·       Does not endanger food supply or communities
where the use of biomass is essential for subsistence (for example heat,
medicines and building materials)

·       Does not adversely affect protected or
vulnerable biodiversity and, where possible, gives preference to biomass
production that strengthens biodiversity

·       Deploys good practices to protect and/or
improve soil, water, (both ground and surface), and air quality

·       Contributes to local prosperity in the area of
supply chain management and biomass production

·       Contributes to the social wellbeing of employees
and the local population in the biomass-producing areas

REDUCING EMISSIONS

The energy created by wood fuel is considered
carbon 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 previously
absorbed.

Fossil fuels are a form of stored carbon, when
burned they produce billions of tonnes of additional carbon dioxide into the
atmosphere.

Azwood Energy will endeavour to reduce
emissions by helping organisations transition from fossil fuels to wood fuel to
attain the following outcomes:

·       Replacing the use of fossil fuels, thereby reducing
the high amount of particulates emitted when fossil fuels are burned

·       Sourcing of raw material for wood fuel from
residue streams that would otherwise rot and release wasteful and unnecessary
stored carbon, which the wood absorbed through its lifetime

·       Use residue streams for wood energy from timber
building product manufacturing to assist the carbon cycle, with trees becoming
carbon negative and actively removing carbon from the atmosphere

ENVIRONMENTAL CLEAN UP

Azwood Energy will continue unique practices
that help to manage waste streams to produce carbon neutral, renewable energy.
We will do this by:

·       Clearing forestry skid sites. Azwood Energy
work in partnership with forestry to clean up skid sites after mature,
sustainably managed trees have been harvested

·       Assisting with replanting. Clearing sites means
that planting and tree growth is greatly increased, allowing the sustainable
management and replenishing of habitats

·       Reducing fire risk. Azwood remove the leftover
timber and branches from the skid- processing site, essentially removing fuel
for forest ?res that can be ignited through external sources or spontaneous
combustion

·       Reducing erosion. Build-ups form natural dams
created by forest residues have the potential to cause slips and erosion during
extreme weather events. The removal of excess slash reduces the risk and
potential impact of erosion

·       Helping to achieve cleaner waterways. During
periods of heavy rain forest residues can be washed into local waterways. We
remove hard debris that can wash into and erode riverbanks and habitats

·       Reducing landfill waste. Azwood Energy takes
waste 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, carbon
neutral wood fuel that can be burned as an alternative to fossil fuels like
coal, gas and diesel, thereby reducing emissions.

 

ENSURING SUSTAINABLE SOURCING

We have an environmental, social and economic
responsibility to ensure we constantly drive improvements along our supply
chain, from forestry practices in the locations where raw materials for wood
fuels are sourced, to the point they are processed, blended and enter boiler or
heating units or are sold as a renewable heat fuel. A critical part of this is
building close relationships with our suppliers so we can openly discuss issues
with them and support efforts to improve their working practices.

We will endeavour to bring suppliers into our
sustainably focused Resource Fuel® programme which is an overall operating system
for the sustainable disposal of waste streams.

WORKING SUSTAINABLY

We will work to incorporate sustainability in
our culture, policies, processes and systems. We will engage our people on
sustainability issues, and support them to make business decisions with a
long-term view of sustainable practices.

Where possible, all aspects of our
environmental policy will be considered when making choices around our
suppliers and operations.

·       Ensure sustainability is integrated into our
long-term strategy, our governance processes, and our business planning and
performance management cycles

·       Continue to encourage sustainable practices and
behaviour in our suppliers through our sustainable procurement practices

·       Ensure Azwood  Energy employees enjoy a safe, diverse, and
engaging place to work with opportunities for development and growth

·       Reduce the adverse environmental impacts of
operating our business

ENGAGING COMMUNITIES

From the winder industrial community, to
education facilities and the wider public, Azwood Energy will educate and
celebrate carbon neutral, renewable wood energy. We will endeavour to grow the
market, which will in turn further educate and lessen the demand for fossil
fuel heat and process energy.

·      
Use
our technical knowledge to ensure successful wood energy projects

·      
Make
it easy for customers to understand the benefits of wood energy in comparison
to fossil fuels

·      
Deliver
an exceptional customer experience every time we are involved in a wood energy
project

·      
Build
good quality relationships based on open communication and trust with key
stakeholder groups and local communities, to ensure our relationships are
valued and valuable

·      
Contribute
to local communities and to the broader community through values of CARE and charity

·      
Achieve
best practice in the delivery of fuel supply for customers

·      
Deliver
educational programmes to schools and organisations

·      
Promote
and market success stories to all stakeholders

Success Fuel® will be the
primary vehicle for the promotion of wood energy and to celebrate an
organisation’s commitment to sustainable energy.

Success Fuel® will be
continually improved as an operating system, a framework for how like-minded
organisations view energy. It will be promoted as an overarching marketing strategy
and an alignment of vision and values.

Success Fuel® will also
remain exclusive to those organisations that have made a series of decisions
that have resulted in a positive commitment to their community.

IMPLEMENTATION

The Azwood Energy Executive
team will:

·      
Demonstrate
leadership by identifying sustainability priorities and endorsing actions that
align with Azwood Energy’s commitment to sustainability

·      
Obtain
and consider advice about emerging sustainability issues, risks and
opportunities and incorporate this knowledge in business planning

·      
Encourage
the use of sustainability principles in company practices and processes

·      
Share
experiences of what they and their teams have done, recognising and celebrating
success, as well as sharing lessons learned

REPORTING

Azwood Energy will regularly
and transparently communicate our sustainability performance to interested
stakeholders.

 d their teams have done, recognising and celebrating
success, as well as sharing lessons learned

REPORTING

Azwood Energy will regularly
and transparently communicate our sustainability performance to interested
stakeholders.