Jan 2010

Hikurangi's successful recertification by FSC

May 2010

Hikurangi Wins Outstanding Environmental Management Award

Hikurangi Forest Farms Ltd (HFF) won the coveted Outstanding Environmental Management Award at the inaugural Eastland Wood Council Forestry Awards held in May 2010. This award was presented to the company who best demonstrate their excellence and commitment to environmental ma4nagement within the forestry industry by going above and beyond general compliance. HFF was nominated by an external auditor for FSC in recognition of outstanding results during our annual FSC audits. Over 220 people witness the presentation, which was attended the ceremony including the Minister of Education and the Gisborne District Council Mayor and CEO. The ceremony also saw three of HFF's nominated contractors winning impressive awards such as FITEC Trainee of the Year Award, Forestry Excellence Award, and Distribution Excellence Award. [Adapted from HFF's Stakeholder Newsletter, Edition 9 (August 2010)] About Hikurangi Forest Farms Limited Hikurangi Forest Farms Limited (HFF) is a forestry company based in Gisborne, located in the Eastland province of New Zealand's North Island. The HFF estate consists primarily of intensively managed Radiata Pine plantations. The HFF tree plantations cover a total estate area of approximately 35,000 hectares, out of which approximately 26,000 hectares is the net plantable area and total planted area, and approximately 91% is freehold. The Company's maturing Radiata Pine resource has the potential to yield a sustainable woodflow of approximately 800,000m3 annually. The Radiata Pine trees grown in our New Zealand plantation can be readily converted into veneer, sawn timber, fibreboard, and pulp and paper. HFF recognises the value and importance of environmental responsibilities and is committed to maintaining the Forest Stewardship Council's (FSC) forest management certification for all of HFF's owned or managed lands. HFF is a wholly owned subsidiary of Lingui Developments Berhad, a company listed on the Malaysia stock exchange. Lingui Developments Berhad is a subsidiary of Samling (www.samling.com), a forest resource and wood products company company listed on the Hong Kong Stock Exchange.

SELA'AN-LINAU FOREST MANAGEMENT UNIT

SUSTAINABLE FOREST MANAGEMENT MISSION STATEMENT

OUR MISSION

To develop and implement Sustainable Forest Management (SFM) practices in our forest operations to attain Socially Compatible, Ecologically Sound and Economically Viable aspects thus meeting the requirements of forest certification for well-managed forests.

DEVELOPMENT

In co-operation with government agencies, non-governmental organisations, forestry institutions, communities and other stakeholders, we have developed:

• A medium-term Forest Management Plan
• Standard Operating Procedures and Working Instructions
• A Wildlife Management Plan
• Programs for reforestation, rehabilitation and silviculture
• Community based agro-forestry and corporate social responsibility (CSR) development projects

IMPLEMENTATION

We are implementing:

• Sustainable Forest Management and reduced impact logging (RIL) to enable the natural recovery capacity of the forest to maintain or enhance the multiple forest functions to meet different usage and needs of the stakeholders concerned.
• Detailed Harvesting Plans aimed at production of high-quality timber at optimum efficiency, reduced impacts and to minimise wastage of the resources.
• Multi-stakeholders consultations with the Forestry Department Sarawak, local authorities, the communities in and around the FMU areas to address issues of common interests, deliveries of CSR projects and to monitor the operational activities.
• Continuous improvements to forest management through certification, research, collaborative partnerships, updating methodologies and standards

PARTNERS / STAKEHOLDERS

We are in co-operation with:

• Forestry Department of Sarawak
• Wildlife Conservation Society, New York
• Local authorities and communities
• Local and international non-governmental organisations.

SELA'AN-LINAU FOREST MANAGEMENT UNIT

SUSTAINABLE FOREST MANAGEMENT ENVIRONMENTAL POLICY

In pursuit of our Mission Statement, we shall: Be in compliance with all relevant environmental legislations, rules and regulations, guidelines, MTCS principles and criteria for SFM, to maintain and enhance the environmental values and functions of the forests. Uphold international conventions and treaties on biodiversity, climate change and labour practices such as CITES, IUCN, ILO and others, to which Malaysia is a party. Cooperate fully with all relevant authorities, agencies, institutions and stakeholders through dialogues and consultations. Collaborate with local and international expert organisations to carry out research, development and monitoring programmes for conservation and protection. Periodic reviews of our operational standards, plans and programmes to bring continuous improvements to our environmental practices. Continue to pursue PEFC endorsed MTCS Certification. The Malaysian Timber Certification Council (MTCC) Certificate for Forest Management for our Sela'an-Linau Forest Management Unit assessed to the MC&I(2001)* standards has expired on 17 October 2009. The MC&I (2001) has been replaced by the MC&I (2002) under the recently re-structured Malaysian Timber Certification Scheme (MTCS) endorsed by the Program for Endorsement of Forest Certification (PEFC) as the new standard for forest management certification. In line with this change-over to the use of the new assessment standard, we are now actively pursuing the recertification of our Sela'an-Linau FMU under MC& I(2002). The First Stage Audit was completed on 21 June 2010 and we are now preparing for the final audit. While there continues to be a varied approach to evaluating well-managed forests with multiple certification bodies, of which above all, is voluntary, the Sela'an Linau FMU, managed by Samling Plywood (Baramas) Sdn. Bhd., was one of the first private companies to pursue forest certification under the MTCC in Malaysia. Samling remains committed to sustainable forest management and will continue to comply within the laws, regulations and good practices that guide our forest operations while undergoing the recertification of its FMU.

Sela'an Linau FMU Forest Management Plan Public Summary

As part of MTCC requirement, Samling Plywood (Baramas) Sdn Bhd produces a public summary of its Sela'an-Linau FMU Forest Management Plan. Click on link to download our Forest Management Plan summary.

The Malaysian Timber Certification Council (MTCC) Certificate for Forest Management for our Sela'an-Linau Forest Management Unit assessed to the MC&I(2001)* standards has expired on 17 October 2009.

The MC&I (2001) has been replaced by the MC&I (2002) under the recently re-structured Malaysian Timber Certification Scheme (MTCS) endorsed by the Program for Endorsement of Forest Certification (PEFC) as the new standard for forest management certification.

In line with this change-over to the use of the new assessment standard, we are now actively pursuing the recertification of our Sela'an-Linau FMU under MC& I(2002). The First Stage Audit was completed on 21 June 2010 and we are now preparing for the final audit.

While there continues to be a varied approach to evaluating well-managed forests with multiple certification bodies, of which above all, is voluntary, the Sela'an Linau FMU, managed by Samling Plywood (Baramas) Sdn. Bhd., was one of the first private companies to pursue forest certification under the MTCC in Malaysia.

Samling remains committed to sustainable forest management and will continue to comply within the laws, regulations and good practices that guide our forest operations while undergoing the recertification of its FMU.

Barama Company Limited's FSC Certification in Guyana

The Company's Forest Stewardship Council's (FSC) certification has been suspended by SGS South Africa (Pty) Ltd (SGS), an independent assessor accredited by FSC following their recent surveillance audit in November 2006. We received the suspension notification from SGS on 9 January 2007. There are some corrective measures that we need to address before the suspension can be lifted. These corrective action requests (CARs) were primarily related to worker amenities, staff health and safety practices , monitoring of non-timber activities (such as mining activities conducted by third parties) within operational areas, maintenance of buildings and equipment, fire safety and signage as well as issues relating to road building (such as road maintenance, restoration of degraded sites and improvement to road planning by performing road profiling) and maintenance of a website to publish a summary of the forest management plan and monitoring results.

Barama Company Limited (Barama) regrets the decision of the independent assessor to suspend the company's FSC certification in Guyana. We take the independent assessor's decision seriously and are currently working to identify and resolve the CARs. In Barama, we adhere strictly to the Guyana Code of Practices for Timber Harvesting and in addition we have taken the further step over and above their requirements to obtain FSC forest certification.

The FSC forest certification is voluntary and Barama is the first and only company in Guyana to voluntarily undergo the very rigorous FSC-certification process. In this same regard, we are saddened that some issues inadvertently arose during the SGS surveillance causing this same certification to be suspended despite efforts to be compliant.

In the meantime, we will continue operating, producing and selling logs from our forest concession in Guyana, but such logs will not carry the FSC identification.

As a responsible and responsive company, we have assigned the resources to take the necessary actions to lift the suspension. These include: conducting the necessary tests, conducting refreshment training on first aid treatment, installing the necessary facilities at the camp sites within our concession, and procuring and upgrading the necessary equipment recommended by the independent assessor.

We welcome the kind assistance from World Wide Fund for Nature (WWF), Guyana Forestry Commission and the local forestry experts to address the CARs raised. We have and will continue to follow a transparent, time-bound action plan consistent with FSC certification.

Barama is committed to sustainable forest management and practices on the forest resource entrusted to the company to ensure that the resources shall continue to provide multiple functions for economic, environmental and social benefits for Guyana.

• Can Barama continue selling products after suspension?

  Forest certification is voluntary. Our sustainable forest management practices and the legality of the source of our logs are independent from the forest management certification of our forest concessions. We are eligible to sell our products, but the products will not carry the FSC certification during the suspension period. In the meantime, we will continue operating, producing and selling logs from our forest concession in Guyana.

• What shall customers who have bought the logs before FSC suspension do?

  We have informed customers to ensure that no incorrect claims about the certification status of the timber are made or appear on their products until further notice. Customers should contact us immediately if they have any questions with regards to this process.

• How long will the suspension last?

  As a responsible and responsive company, we are currently working with relevant parties, including the FSC, SGS, WWF, and the Guyana Forestry Commission to address the areas of concern, and have already taken steps to rectify the corrective action requests (CARs) identified by SGS.

  Upon close-out date (the proposed date for corrective action to be completed), SGS will assess the actions taken to rectify the CARs. If the visit or the document review shows that adequate action has been taken, then the CARs will be recorded as being completed and signed off, and suspension will be lifted when we receive an official notice from the assessor. We will inform our customers when such notice is received.

• When did Barama get the certificate?

  This needs to be put in perspective. We started our forest operation in Guyana in 1991, substantially before the FSC started certification in the country and we have always been required to adhere to the Guyana Forestry Commission Code of Practice for Timber Harvesting. Our forest concession, which we harvest from are continuously monitored by the Guyana Forestry Commission. Furthermore, we have voluntarily partnered with many organizations, including the Edinburgh Centre for Tropical Forests in Guyana from 1992 to 1999, to assist in the development of our sustainable forest management model. For more than a decade, we have been the benchmark in sustainable forest management in Guyana and the region. In 2006, we received the voluntary certification from FSC.

• Will there be any withdrawal of certificate?

  Forest certification is voluntary. We remain committed to sustainable forest management and practices on the forest resource entrusted to the company to ensure that the resources shall continue to provide multiple functions for economic, social and environmental benefits in the forests in which we operate.

• What are the reasons for suspension?

  The Certification Body may suspend a Certificate for a limited period if five major CARs are raised during a single surveillance visit.

• What is a CAR? How frequent is the surveillance audit?

  Periodic surveillance audits are carried out by independent assessors accredited by the FSC to ensure on-going compliance. Such surveillance audits are usually carried out on bi-annual basis, depending on the requirements of the relevant independent assessor. During the course of their reviews, areas of non-compliance with the strict guidelines may be identified and corrective action requests (CARs) are issued. The FSC will usually require the CARs to be addressed and complied with within a specified time frame, failing which it may lead to a temporary suspension or withdrawal of the certification. The length of time for correction or rectification of CARs will depend on both the nature of the shortcomings and the practicalities of addressing the problem. An extension of time may sometimes be granted for such correction. During the suspension period, logs may continue to be produced from the relevant forests but such logs will not carry the FSC identification.

FAQ

• Who issues the CARs?

  The corrective action requests (CARs) are issued by an independent assessor accredited by the FSC.

• What benefits are there in having an FSC certificate?

  Holders of an FSC forest management certificate are authorised to tag their products with the FSC trademark.

• Who is the FSC? What is an FSC certificate?

  The Forest Stewardship Council (FSC) is an international organization that brings people together to find solutions which promote responsible stewardship of the world's forests. Over the past 12 years, over 84 million hectares of different types of forest area in more than 82 countries have been certified according to FSC standards while several thousand products are produced using FSC certified wood and carrying the FSC trademark.

  Forest certification is the process of evaluating forests or woodlands to determine if they are being managed according to an agreed set of standards. FSC certification is carried out by FSC accredited certification bodies. FSC itself does not certify forest operations or manufacturers.

• Which other forests have FSC certified?

  The FSC certification scheme has been recognized as one of the international benchmarks that provide a system for different stakeholders interested in forest issues to work towards responsible forest management.

  As at December 2006, the FSC has issued forest management certificates covering approximately 84 million hectares of forest area worldwide. Recipients of FSC forest management certification include public governmental organizations as well as privately managed companies worldwide, and in respect of natural forests, tree plantations or semi-natural and mixed forests operated by such organizations.

  It is estimated that as of December 2006, there are approximately 8.2 million hectares of tropical natural and/or mixed forest area, or approximately 10% of the total forest area is certified by the FSC, through its forest management certification programme. The remaining 90% of the FSC-certified forest areas are made up of plantation, sub-tropical and temperate forests.

• What is the uniqueness of Barama FSC forest management certification?

  Barama is the first and only company in Guyana to have received FSC certification. It is a pioneer in obtaining FSC certificate on tropical forests that are worked on commercially. Barama was able to receive the certification as it complies with the very stringent FSC standards for extracting timber for commercial purposes in a sustainable way.

• Which of Barama's product are FSC certified?

  Log products produced from Barama's forest concession in Guyana which has received FSC forest management certification are FSC certified. However, before the FSC suspension is lifted, logs produced from the relevant forests will not carry the FSC identification.

• What is the total forest area of Barama certified by FSC?

  The total forest area of Barama certified by FSC was 570,000 hectares

July 2014

Segan forest plantation achieves PEFC-endorsed MTCS certification

In July 2014, Samling's Segan industrial tree plantation in Bintulu, Sarawak successfully obtained forest management certification under the Malaysian Timber Council's Malaysian Timber Certification Scheme (MTCS) and attained the distinction of being the first ITP in Malaysia that is sustainably harvesting its planted trees to be certified under the scheme.

The MTCS certification is endorsed by the Programme for the Endorsement of Forest Certification (PEFC). In order to be certified, an audit was conducted to ensure compliance with the Malaysian Criteria and Indicators for Forest Management (Forest Plantation), or MC&I. The 10,800-hectare Segan ITP was audited by SIRIM QAS International.

Having achieved certification of the Segan plantation, Samling is already preparing its other forest plantations for SIRIM audits under MTCS. Their target is for each plantation to be certified before harvesting starts.

Samling firmly believes in the value of forest plantation management certification, which helps penetration of new markets and helps to maintain existing markets. It also generates a feel-good factor and gives customers the assurance that when it comes to Samling's plantation grown timber, be it BORNEOTEAK® and their other species grown in Sarawak or radiata pine from their ITP in New Zealand, their buyers can have the confidence to promote products made from these trees as 'eco-friendly'.

Samling acknowledges that a large part of its future in the timber industry lies with its sustainably managed ITPs that produce the certified logs from which eco-products are made.

November 2012

Barama Receives Verified Legal Origin (VLO) Certification for the World's Largest Single Block of Tropical Forest

Barama Company Limited successfully received the Verified Legal Origin (VLO) certificate on 7 November 2012, after completing a comprehensive audit in July 2012. The area covered by the VLO certificate represents the largest single block of tropical forest in the world to be certified under a VLO type of scheme.

As a responsible and compliant timber company, Barama embarked on an internationally recognised forest certification path, believing that this represents a true expression of its policy towards the maintenance of SFM standards.

Under the VLO certification, the company's upstream (logging) and downstream (manufacturing and marketing) operations were placed under a single certification policy. Rainforest Alliance of the United States of America was contracted to develop a national certification standard suitable for Guyana based on the International generic standards; followed by an audit of those standards against our forest surveying, harvesting, tree marking, log tracking, log hauling, log storage, veneer processing, plywood manufacturing, sawmill conversion, wood storage and marketing systems.

The company's drive towards certification goes beyond responding to international market requirements; it is based on the conviction that we are operating at an internationally acceptable level worthy of sharing with our valued stakeholders and that the best way of doing this is to subject ourselves to the rigid scrutiny of an independent auditor against an internationally accepted scheme.