2. SONAE INDÚSTRIA Environmental Policy sets the following principles for the eco-efficient management of its own business: › Sustainable Forest Management; › Sustainable use of natural resources, by saving, reusing and recycling whenever technically and economically feasible; › Energy recovery from non-reusable and non-recyclable materials; › Minimisation of the environmental influence of the industrial units. These principles are implemented throughout the wood and wood- based products life cycle. THE ENVIRONMENTAL MANAGEMENT AT SONAE INDÚSTRIA THE COMMITMENT

3. WOOD AND WOOD-BASED PRODUCTS LIFE CYCLE THE ENVIRONMENTAL MANAGEMENT AT SONAE INDÚSTRIA

4. Sustainable Forest Management Wood is a natural and renewable material. However, it is absolutely necessary to have both responsible forestry and responsible use of forest resources to guarantee the sustainable use of wood. THE ENVIRONMENTAL MANAGEMENT AT SONAE INDÚSTRIA WOOD AND WOOD-BASED PRODUCTS LIFE CYCLE

5. Sustainable Forest Management WHAT WE DO: › We promote sustainable forestry management in the regions where we operate; › We actively participate in sustainable forest management standardisation and certification initiatives both at national and international levels. THE ENVIRONMENTAL MANAGEMENT AT SONAE INDÚSTRIA WOOD AND WOOD-BASED PRODUCTS LIFE CYCLE

6. THE ENVIRONMENTAL MANAGEMENT AT SONAE INDÚSTRIA WOOD AND WOOD-BASED PRODUCTS LIFE CYCLE

7. Sawmills WHAT WE DO: › By using the best available technology, we optimise the sawing operation, in order to take the maximum volume of sawn wood from logs; › We invest in operations to add value to sawn wood e.g. drying and pallets production; › We use all the sawmill co-products (wood dust, chips, slabs) as raw material for the wood-based panels industrial plants; › We optimise energy use at our plants, by locally producing energy, using non-reusable and non-recyclable materials as fuel. THE ENVIRONMENTAL MANAGEMENT AT SONAE INDÚSTRIA WOOD AND WOOD-BASED PRODUCTS LIFE CYCLE

8. THE ENVIRONMENTAL MANAGEMENT AT SONAE INDÚSTRIA WOOD AND WOOD-BASED PRODUCTS LIFE CYCLE

9. Wood-Based Panels WHAT WE DO: › We produce a wide range of wood-based panels with great flexibility and perfect substitutes of solid wood, whenever wood’s special characteristics are not needed; › We invest in operations to add value to panels e.g. cut-to-size, melamine or veneer surfacing and production of furniture components; › We optimise energy use at our plants, by locally producing energy, using non-reusable and non-recyclable materials as fuel. › We minimise emissions, having always as reference the process eco-efficiency improvement. THE ENVIRONMENTAL MANAGEMENT AT SONAE INDÚSTRIA WOOD AND WOOD-BASED PRODUCTS LIFE CYCLE

10. THE ENVIRONMENTAL MANAGEMENT AT SONAE INDÚSTRIA WOOD AND WOOD-BASED PRODUCTS LIFE CYCLE

11. Recycling WHAT WE DO: › In the Iberian Peninsula, we established a network of waste collection and primary processing centres; › We use the various raw materials (virgin wood, pre- and post-consumer wood) in the process, according to its characteristics and quality; › We optimise transport and logistics of wood procurement, by regionally managing procurement; › We, thus, minimise costs and emissions associated to truck transport. THE ENVIRONMENTAL MANAGEMENT AT SONAE INDÚSTRIA WOOD AND WOOD-BASED PRODUCTS LIFE CYCLE

12. THE ENVIRONMENTAL MANAGEMENT AT SONAE INDÚSTRIA WOOD AND WOOD-BASED PRODUCTS LIFE CYCLE

13. Energy Recovery WHAT WE DO: › The non-reusable and non-recyclable materials are used for energy production. Thus: › We produce energy (heat and power) locally, supplying the production process’ needs; › We use materials that, otherwise, would become wastes. THE ENVIRONMENTAL MANAGEMENT AT SONAE INDÚSTRIA WOOD AND WOOD-BASED PRODUCTS LIFE CYCLE

14. THE ENVIRONMENTAL MANAGEMENT AT SONAE INDÚSTRIA WOOD AND WOOD-BASED PRODUCTS LIFE CYCLE

15. The Cycle Closure › Our products retain carbon during their service time, being an excellent carbon sink; › Thus, using wood and wood-based products contributes to the global goal of greenhouse gases emission reduction; › When wood and wood-based products end their service life, they are used as fuel for energy production, and the final balance between CO 2 emission during combustion and CO 2 sequestration during trees growing is neutral! THE ENVIRONMENTAL MANAGEMENT AT SONAE INDÚSTRIA WOOD AND WOOD-BASED PRODUCTS LIFE CYCLE