Sustainability Report - Flakeboard

Transcription

Sustainability Report - Flakeboard
Sustainability Report
2012
Table of Contents
A Message From Flakeboard President
3
Who We Are
4
Milestones5
The Environment
24
Resin Reduction and Materials Optimization 27
Energy Reductions 28
Case Study: Sault Ste. Marie, Ontario
29
Reducing GHG Emissions 30
Markets Served
5
Canadian Operations
6
United States Operations
6
Our Commitments
7
Commitment to Local Procurement
Assessing Materiality
8
Reducing Transportation through Local Purchasing 34
2010–2012 Awards and Recognition
10
Governance Structure
11
Commitment to Community Engagement
and Charitable Contribution
34
Government Assistance
12
Community Investment and Donation
36
Report Boundaries
12
Community Development Programs
36
Stakeholder Engagement and Feedback
12
Flakeboard Community Events and Investments
37
Our Products
13
Eco-Certified Composite (ECC™)
13
California Air Resources Board (CARB) 14
Ultra-Low Emitting Formaldehyde (ULEF)
Particleboard and MDF 14
No Added Urea-Formaldehyde (NAUF)
14
Leadership in Energy and Environmental
Design (LEED)
15
Our Employees
Our Communities
32
32
Faces of Flakeboard
40
Global Reporting Initiative (GRI) 3.1 Index
50
16
Commitment to Teamwork, Communication
and Accountability
17
Commitment to Employee Health, Safety
and Wellness
18
Health and Safety Committees and Team
Representatives 21
Commitment to Rewarding Initiative and
Sharing Success
22
2
A Message From
Flakeboard President
As a company that is now in our 54th
Energy use drives our cost of production, from the
year of operation, the concept of
transport of wood fiber to our mills and finished product
sustainability is at the very core of
to our customers, to the adhesives binding wood particles
every business decision and business
together, to the use of natural gas and biomass fuelling our
practice. Flakeboard is proud to
operations. It is a broad corporate imperative to further
continue to voluntarily report on our
reduce our energy consumption and carbon footprint,
sustainability activities, successes,
and more specifically, the types of energy we consume.
opportunities to improve and future targets.
We see sustainability as the actions our company takes to
engage employees, local communities, and other
stakeholders to support both business interests and
broader societal goals.
Since our last report in 2010, we can proudly state the
following achievements: rates of safety and fire incidents
have improved, environmental performance has improved,
and our finances have improved. We have experienced
progress toward more efficient use of critical inputs and
now use less resin and electricity per unit of production
and continue to strive for further reductions. Our successes
have much to do with how we achieve our results and they
are deeply rooted by involving every employee in our
pursuit. We set goals with our employees and recognize
those gains in the company’s compensation plan in which
each employee participates.
As it relates to sustainability, our products are naturally
advantaged in that our primary input is wood. This resource
is naturally occurring and renewable and we will only
Flakeboard has significantly reduced the burning of oil
in favor of consuming natural gas and biomass. This goal
will be further supported by the addition of another major
facility in Moncure, North Carolina into the existing group
of Flakeboard mills that came as a result of the recent
purchase of Flakeboard by Celulosa Arauco y Constitución.
Arauco is based in Santiago, Chile, and operates a group
of wood-based companies that are primarily located in
Latin America. Arauco is a global leader in the production
of sustainable products and exemplifies the use of
renewable energy. We are actively working with our parent
company to integrate their one North American facility,
based in Moncure, North Carolina, into the Flakeboard
organization. We see this combination as a tremendous
opportunity to strengthen our commitment to the North
American composite panel business and intend to include
the Moncure facility in our subsequent sustainability reports.
All of us at Flakeboard are focused on continuing our
quest of sustainability with the resources, support and
vision of our new owner.
purchase wood that is proven to be sustainably supplied.
Furthermore, we offer our customers the option of buying
Flakeboard products as FSC® certified*, manufactured with
wood from responsibly managed forests, and we have
Kelly Shotbolt, President
expanded our ability to do so. It is during the conversion
[GRI INDEX: 1.1]
of wood where we can have the largest impact regarding
the use of sustainable and renewable energy.
*FSC® C019364, FSC® C110327
3
Who We Are
Flakeboard is the largest composite panel manufacturer in North America
and operates with approximately 1,000 dedicated, empowered employees
in Canada and the United States. With annual sales of approximately
$600 million (USD), our products supply the kitchen cabinet, moulding,
furniture and fixture markets (both commercially and residentially).
Incorporated in 1960 and founded in St. Stephen, New Brunswick,
Canada, Flakeboard Company Limited operates two Canadian mills
and six mills in the United States. Based in Markham, Ontario, Canada,
Flakeboard is a world-scale producer of a variety of Particleboard
(PB), Medium-Density Fiberboard (MDF) and High Density Fiberboard
(“HDF” or “FIBREX®”). A significant portion of Flakeboard’s products
are decoratively surfaced with Thermally Fused Laminates (TFL), paper
overlays, paints and direct prints. With the Moncure facility, the North
American mills have the current capacity to produce 800MM square feet
of particleboard and 874MM square feet of MDF. [GRI INDEX: 2.1, 2.2 and 2.4]
Sustainability is paramount at Flakeboard. Our entire product range starts as
a wood product or by-product that was once considered a waste stream.
Flakeboard is proud to offer environmentally preferable product choices
to support our customers in their sustainable building and fabricating
initiatives. We pride ourselves on our investments in and commitments to
our employees and to the communities in which we are located.
Net Sales Dollars:
Approximately
$600 million (USD)
Net Production Volume:
1,018,439¾” standard thickness
thousand square feet or 1,802,535
cubic meters [GRI INDEX: 2.8]
4
Who We Are
Across North America, Flakeboard continues to set new standards in the sustainable
manufacture of composite wood panels. With strategic investments in technology and
new product development, Flakeboard provides the widest selection of composite wood
panel products in the industry today.
St. Stephen, NB
Western Regional Support Center
Albany, OR
Albany, OR
Sault Ste. Marie, ON
Eugene, OR
Canadian Regional Support Center
Eastern Regional Support Center
Markham, ON
Fort Mill, SC
ARAUCO-USA
Facilities
Services
Flakeboard FSC Certified Mills
Particleboard
Regional Support Center
MDF
ARAUCO-USA
TFL – Lamination
Milestones
Moncure, NC
Atlanta, GA
Bennettsville, SC
Malvern, AR
Flakeboard's Market Segment 2012
Flakeboard‘s parent company, Inversiones Arauco
Internacional Ltda, (Arauco), purchased Flakeboard in
34.23%
September 2012 as a wholly owned subsidiary. Arauco
is in turn a wholly owned subsidiary of Celulosa Arauco y
0.06%
Constitucion S.A. We are actively working with Arauco to
0.18%
integrate the one North American Arauco facility, based in
0.34%
Moncure, North Carolina, into the Flakeboard organization.
0.64%
[GRI INDEX: 2.6 and 2.9]
1.13%
2.40%
Additionally, since our 2010 Sustainability Report, we sold
2.40%
Distribution
Moulding
Flakeboard’s manufacturing plants produce particleboard,
MDF and HDF in grades and decorative finishes suitable
for multiple applications and standards. Our market
segment, including Moncure, is presented to the right.
[GRI INDEX: 2.7]
11.22%
2.58%
5%
5.28%
8.24%
5.39%
our Simsboro, Louisiana plant in 2011.
Markets Served
13.09%
Cabinets &
Vanities
5.69% 6.84%
Laminate
Flooring
Fabricator
Other
Office Furniture
Counter Tops
Retail
Store Fixtures
Household
Furniture
Door
Components
Picture Frames
Prefinished
Paneling
Millwork
Shelving
Who We Are · 5
Who We Are
Canadian Operations
United States Operations
New Brunswick (St. Stephen)
North Carolina (Moncure)
ŸŸ Particleboard and FIBREX (thin high density
fiberboard) with value add finishing including
thermally fused laminates (TFL), paint/print,
and décor paper line
®
ŸŸ On-site resin facility
Ontario (Sault Ste. Marie, Markham)
ŸŸ Superior ® MDF and thermally fused laminate
manufacturing facilities in Sault Ste. Marie
ŸŸ Canadian Regional Support Center in Markham
with Sales and Marketing functions, Customer
Service, Accounting, Information Technology and
Human Resources
ŸŸ Premier ® MDF, UltraPine® particleboard and
thermally fused laminate manufacturing facility
South Carolina (Bennettsville, Fort Mill)
ŸŸ UltraPine® particleboard, Premier ® MDF, and
thermally fused laminate manufacturing facilities
in Bennettsville
ŸŸ Trucking operation in Bennettsville
ŸŸ Eastern Regional Support Center in Fort Mill with
Sales and Marketing functions, Customer Service,
Accounting, Engineering, Information Technology,
Environmental, Health & Safety, Procurement,
Transportation and Human Resources
Oregon (Eugene, Albany)
ŸŸ Duraflake® particleboard, TERRA™ particleboard
and thermally fused laminate manufacturing facilities
in Albany
ŸŸ Premier ®, eLite™ , TERRA™ MDF and EVO MDF
manufacturing in Eugene
ŸŸ Western Regional Support Center in Albany
with Sales and Marketing functions, Customer
Service, Accounting, Information Technology
and Human Resources
Arkansas (Malvern)
ŸŸ Premier ® MDF manufacturing in Malvern
[GRI INDEX: 2.2, 2.3 and 2.5]
The Carolina Particleboard facility boasts a 10' wide
continuous press which produces cost-effective, highly
uniform products, available from this site in a wide
range of TFL texture and color options. 146 employees
work at this facility.
Who We Are · 6
Who We Are
Our Commitments
Flakeboard has established a set of values which we believe in and focus on. We promote
and foster the culture of our Business Principles in our goal to be the industry leader,
including the commitment to meet our responsibilities. Flakeboard has had no significant
monetary fines or non-monetary sanctions associated with non-compliance with laws or
regulations in 2012. [GRI INDEX: 4.8 and SO8]
Vision: Continual Progress
Mission: To be an industry leader through commitment to people, quality, innovation
& service while respecting the environment and communities in which we operate
Business Principles
Meet Our Responsibilities
Focus on the Customer
ŸŸ Operate a safe, clean and environmentally
responsible business
ŸŸ “Can do” attitude
ŸŸ Strictly adhere to legal and regulatory requirements
ŸŸ Quality and Consistency are critical elements for
customer satisfaction
ŸŸ Responsible stewardship within communities
Success through People
ŸŸ Attract & retain performance focused people
ŸŸ Integrity always
ŸŸ Be open and honest & respectful of others
ŸŸ Customer focus throughout the entire organization
ŸŸ Respond to our customers and align mill
capabilities with their needs
ŸŸ Customer success ensures our success
Maximize Profit
ŸŸ Grow people through clear and realistic
expectations, training & accountability
ŸŸ Each individual is responsible for contributing
to the success of the business
ŸŸ Empower people to run and improve the business
ŸŸ Every decision needs to be a good business decision
ŸŸ Encourage initiative and learn from our mistakes
ŸŸ Maximize return on investments while meeting
Underlying Principles
ŸŸ Communicate and communicate some more…
Pursue Excellence
Share Success
ŸŸ Timely execution of priority items
ŸŸ Share and utilize the collective knowledge and
resources from across the business
ŸŸ Be recognized as the quality producer in
the industry
ŸŸ Acknowledge and celebrate success
ŸŸ Continually improve all aspects of the business
ŸŸ Employees will contribute to the success of the
business and as such, will share in the success
ŸŸ Utilize effective business systems and best practices
ŸŸ Measure and communicate key factors that
influence business success
Who We Are · 7
Who We Are
Assessing Materiality
These principles were considered when evaluating matters to report
to our stakeholders. We assembled a cross-functional core team and
through a systematic process, determined the significance of associated
Global Reporting Initiative (GRI) aspects with selected evaluation
criteria supporting each of our Business Principles. Evaluation criteria
for assessing the materiality of the GRI aspects were aligned with
the Sustainability Accounting Standards Board’s (SASB) materiality
assessment criteria as follows: [GRI INDEX: 3.5]
ŸŸ Financial Implications
ŸŸ Legal/Regulatory/Policy Implications
ŸŸ Established Industry Norms
ŸŸ Relevance to Stakeholders
ŸŸ Opportunity for Innovation
We also included a forward looking adjustment in our weightings for
those issues where we foresaw an increased future risk or opportunity.
The core team scored each of the aspects by each evaluation criterion
and ranked the aspects by the average weighted materiality score.
We then used this ranking to evaluate appropriate targets for disclosure
and performance improvements.
The Moncure complex
includes particleboard, MDF,
and TFL lamination. 275
employees work at this site.
Who We Are · 8
Who We Are
Based on our materiality assessment described on the previous page, we identified our first comprehensive set
of targets and objectives. We are proud to share those with our stakeholders and welcome your feedback.
Aspects (GRI 3.1)
Objectives
Targets
Materials
Provide environmentally-friendly
Maintain ECC certification
products
Maintain FSC certification and grow offering of FSC
certified products
Emissions, Effluents and
Reduce emissions
Waste
ISO 14001 certification at all mills by end of 2014
Establish data collection process and baseline
metrics for water and waste emissions by end of 2013
Establish baseline for Scope 3 greenhouse gas
emissions data by end of 2013
Products and Services
Provide environmentally-friendly
Support LEED v4 readiness (ULEF certification
(Environmental – recycled
products
for VESTA™ products; GRI reporting, lifecycle
content)
assessments, etc.)
Customer Health and
Increase product offerings
Provide ULEF and/or NAF products in all market
Safety
with NAF resins and ULEF
regions by end of 2013
certification for VESTA™/
TERRA™ products
Occupational Health and
Maintain safe work environment
Safety
Energy
OHSAS 18001 certification at all mills by end of 2014
Year over year improvement in RIR
Reduce energy usage
Reduce electricity consumption by 10% by 2015 (per
MSF) over 2010
Compliance
Strive for 100% compliance with
$0 monetary fines and zero Notices of Violations for
(Environmental, Social and
legal and other requirements
compliance with applicable laws and regulations.
Enhance coordination of
Establish baseline for community service hours by
community engagement
end of 2013
initiatives
Establish community outreach committee at each
Products and Services)
Local Communities
mill by end of 2013
Establish procedure at each mill to track community
service hours and/or dollars donated by end of 2013
Establish “Flakeboard Community Initiative” with
documented approach in 2013
Training and Education
Continual investment in
Establish comprehensive training tracking program
employees
for all mill personnel by end of 2013
Who We Are · 9
Who We Are
2010–2012 Awards and Recognition
We are proud of our accomplishments since 2010, and are especially
proud when these accomplishments are recognized by the communities
in which we serve. [GRI INDEX: 2.10]
Flakeboard:
FM Global award for “Highly Protected Risk
Achievement” (recognizes outstanding
commitment to property loss prevention)
St Stephen:
2011 Leadership Award from the Natural
Resources Canada & the Canadian Industry
Program for Energy Efficiency (CIPEC) for
outstanding commitment to improving
energy efficiency and reducing greenhouse
gas emissions—Winner in the Category
“Monitoring & Tracking”
2011 Recognition award for Energy Management
Information System (EMIS) from the New Brunswick
Forest Products Association (NBFPA)
Sault Ste. Marie:
United Way Chair’s Award of Merit for 100+ employees
Malvern:
2012 CPA long-term safety improvement award
Duraflake:
Nominated for energy award
2011 United Way Business of the Year for Linn County
Bennettsville:
2011 South Carolina Chamber of Commerce
Award for Safety
Who We Are · 10
Who We Are
Governance Structure
Flakeboard, like Arauco, defines its Corporate Governance
as the group of institutional practices and activities that
result from the company’s decision-making process. These
are practices that contribute to the sustainable generation
of value within a corporate framework of transparency
and responsibility, in line with incentives and promoting
respect for the rights of shareholders and stakeholders
whom directly or indirectly participate in the company.
Prior to September 2012, Flakeboard was a privately
held family-owned business for over 50 years. Now, as
a wholly owned subsidiary of Arauco, Flakeboard is a
publicly accountable company which will be establishing
mechanisms for shareholders and employees to provide
Flakeboard’s Executive Team, pictured left to right:
Kelly Shotbolt, President, Kevin Shotbolt, Vice President
Sales and Marketing, Mike Rosso, Manufacturing
Director, Rob Henry, Chief Financial Officer, and
Jake Elston, Director of Corporate Operations
recommendations and/or direction to the Board of
Directors. Under Chile’s Corporation Law, Arauco must
hold a Shareholders’ Meeting at least once a year in
which shareholders have the right to express their
opinions and, on matters submitted for decision, to vote.
Flakeboard Sustainability Policy
Ensuring that our business is both successful today
and sustainable for the long term is an important
issue for all Flakeboard employees. We sustain
Celulosa Arauco y Constitución is governed by a Board
our company through application of our business
of Directors comprised of nine members, none of whom
principles, continued re-investment in our operations,
can simultaneously hold executive positions within the
engagement of all our employees, and a deep
company. The current Board was appointed in April 2010,
commitment to environmental stewardship and
in accordance with Chilean laws and the Chilean Securities
carbon footprint reductions.
and Insurance Supervisor. The Board is the highest level
organizational body responsible for setting strategy and
At Flakeboard, we are committed to:
years. [GRI INDEX: 4.1, 4.2, 4.3 and 4.4]
ŸŸ Sustaining our operations through our
Business Principles
Within Flakeboard, sustainability is a business priority
ŸŸ Continually re-investing in our operations,
people, and communities
organizational oversight. Members hold office for three
for all employees as reflected in our Sustainability Policy.
Responsibility for overall corporate direction and priorities
is seated with the Arauco Board of Directors; these priorities
and overall Flakeboard direction lies with Flakeboard’s
Executive Management Team and is supported through
Plant Management and the Environmental, Health and
Safety (EHS)/Sustainability Team.
ŸŸ Supporting vertical integration and co-location
to reduce freight and greenhouse gases when
possible
ŸŸ Reducing impacts by cutting energy, resin
and fiber use
ŸŸ Offering products that conform with
environmental stewardship and green
building standards
Who We Are · 11
Who We Are
Government Assistance
Stakeholder Engagement and Feedback
Flakeboard actively collaborates with the State of South
Flakeboard is actively engaged with a variety of stakeholders,
Carolina through the South Carolina Job Development
including our parent company, employees, customers,
Credit Programs (JDC’s) and through Marlboro County
suppliers, communities, regulatory agencies, trade
for the Fee In Lieu Of Tax (FILOT) South Carolina Property
associations, and standards bodies. Our core values reach
tax reduction program. In return for the new jobs created
beyond our facility walls to all of our business relationships
and investment made by Flakeboard, we received
and are mirrored in our stakeholders’ appreciation for
approximately $243,500 and $350,000 respectively for
a business model that successfully conserves natural
these programs during the reporting period. In addition,
resources while manufacturing high-quality, environmentally
our Sault Ste. Marie mill has received financial incentives
preferable products. We anchor these relationships in
and rebates over a 3-year period through the Ontario
trust, as well as mutual respect and success.
provincial Northern Industrial Electricity Rate (NIER)
[GRI INDEX: 4.14 and 4.15]
Program. This funding supports the implementation of
an energy management project, an initiative within the
Sault Ste. Marie mill’s overall energy management and
reduction plan, which the facility was selected to pilot in
partnership with the University of Waterloo.
[GRI INDEX: EC4]
Report Boundaries
We are pleased to share with you this Sustainability
Report covering the 2012 calendar year and building
upon our first report published in 2010. We have no
re-statements of information provided in earlier reports,
other than aggregate metrics which were adjusted in
2012 for the divestiture of the Louisiana mill in 2011.
We appreciate input and feedback on our sustainable
business practices, our performance to date, and our
reporting content and format. We encourage you to
share your thoughts and send us your questions. We
look forward to feedback on this report as we seek to
strengthen our engagement process and dialogue.
Point of Contacts: [GRI INDEX: 3.4]
Sustainability Report
Richard Weber, Government & Environmental
Affairs Manager
Email: [email protected]
Flakeboard Certification Programs
For this report, we have followed the GRI G3.1 framework
Kerry Little, Business Sustainability Manager
and self-assessed our reporting as Application Level C.
Email: [email protected]
As our first GRI report, this document contains expanded
content from our previous reports. Included in this report
Flakeboard Products
are all of Flakeboard’s manufacturing facilities, with the
Customer Service Point of Contact
exception of the Moncure facility (unless otherwise noted),
Email: [email protected]
which became part of the organization when Flakeboard
was purchased by Arauco in September 2012. We expect
to fully integrate this facility into subsequent reports,
which we plan to publish on an annual basis. Additionally
we intend to evaluate over the coming year, the inclusion
of our Atlantic Trucking subsidiary in Bennettsville, South
Carolina in future reports.
[GRI INDEX: 3.1, 3.2, 3.3, 3.6, 3.7, 3.8, 3.10, and 3.11]
Who We Are · 12
Our Products
Flakeboard is the largest composite panel manufacturer in
North America, producing a diverse line of particleboard,
MDF, and HDF products. We offer one of the most diverse
decorative panel collections in the industry, ranging from
thermally fused laminates (TFL) and decorative paper
overlays to custom direct prints and paint. We manufacture
these high-quality composite panels to supply the kitchen
cabinet, moulding, furniture and fixture markets.
The value of our products goes beyond the building,
furniture, and fixture markets. Our products are uniquely
sustainable, and are designed and manufactured for
the benefit of our customers and consumers. We utilize
recycled, controlled or certified, sustainably-procured
fiber and proprietary low-emitting resin technologies
to produce composite panels that meet some of the
most stringent product standards in the world. The use
of these materials also qualifies our products for use in
Leadership in Energy and Environmental Design (LEED)
projects. Compliance with product standards is critical
to our transparent demonstration of our sustainability
commitment. In 2012 we had no incidents of noncompliance and no fines related to the provision and
use of products and services. [GRI INDEX: PR4 and PR9]
Eco-Certified Composite (ECC™)
Each of Flakeboard’s mills is certified
to the Composite Panel Association’s
(CPA) ECC Sustainability Standard
and we are committed to maintaining
that certification. The ECC standard
is a voluntary industry standard for composite wood
panel and finished product manufacturers producing
particleboard, MDF, hardboard, engineered wood siding
and engineered wood trim. The standard uses a life cycle
inventory approach and other verifiable environmental
practices to evaluate manufacturer performance. Meeting
this standard and displaying the green Eco-Certified label
demonstrate to consumers the responsible use of wood
fiber by manufacturers. The basis of the standard includes
the CPA Carbon Calculator, a tool developed by a third
party expert to assess the life cycle and carbon footprint of
composite panels made at a particular manufacturing plant.
Flakeboard actively participates and has leadership roles in
the Composite Panel Association. We have also chaired the
committee on the Eco-Certified Composite (ECC) standard.
[GRI INDEX: 4.13]
Arauco is a leader in
sustainable forestry.
13
Our Products
From the Composite Panel Association’s website
(www.decorativesurfaces.org/cpa-green/go-ecc-green.html):
California Air Resources Board (CARB)
All Flakeboard mills, in both the United States and Canada,
ECC Certification is available to individual manufacturing
are certified by the Composite Panel Association to
plants and requires an on-site qualification audit and
produce CARB Phase 2 emission limits. These regulations
subsequent annual audits. Unfinished composite panel
establish the most stringent production standards in the
products must first comply with the stringent CARB
world for formaldehyde emissions from composite wood
formaldehyde emissions regulation before being considered
products. All Flakeboard products meet CARB Phase 2
for other ECC criteria. Qualified plants must then meet at
emissions levels, or lower.
least three of the following requirements:
ŸŸ Carbon Footprint: The plant shall demonstrate that
the panel’s carbon store offsets its cradle-to-gate
carbon footprint as determined in kg-CO2 equivalents
of greenhouse gas (GHG) emissions. Each plant shall
use the CPA Carbon Calculator to determine if a
panel performs as a carbon sink resulting in overall
net carbon storage.
Ultra-Low Emitting Formaldehyde (ULEF)
Particleboard and MDF
ŸŸ Local and Renewable Resource: At least 85% of
total annual wood fiber used shall be sourced within
250 miles (402 km) of the manufacturing plant.
an ECC sustainably certified product. These products
ŸŸ Recycled/Recovered: Use a minimum of 75%
recycled or recovered fiber; OR at least 50% recycled
or recovered fiber AND a minimum of 5% postconsumer fiber. Percentages shall be calculated on a
weight basis as measured in bone dry tonnes (BDT).
and qualify to contribute to LEED points or for use in
ŸŸ Sustainability: The plant shall document that
greater than 97% fiber furnish brought on-site to
manufacture panels is either converted into panels
or other non-waste products.
ŸŸ Wood Sourcing: The plant shall hold a valid
assessment and certificate from a certifying agency
recognized by CPA such as the Forest Stewardship
Council® (FSC – Controlled Wood Standard or Chain
of Custody Standard) or the Sustainable Forestry
Initiative (SFI – Fiber Sourcing Standard).
Flakeboard uses a proprietary ULEF resin system
to manufacture the VESTA™ brand MDF and
particleboard panel products. VESTA™ is made with
100% recycled and/or recovered wood fiber, and is
meet CARB Airborne Toxic Control Measures (ATCM)
requirements for ultra-low emitting formaldehyde resins
projects where products manufactured with ultra-low
emitting (ULEF) resins are specified.
No Added Urea-Formaldehyde (NAUF)
Flakeboard has developed an innovative new product line
of sustainable panels called TERRA™ that uses no added
urea-formaldehyde resin technology in production. These
high quality ECC Certified Panels qualify to contribute
to LEED points or for use in projects where products
manufactured with no added urea-formaldehyde (NAUF)
resins are specified.
Flakeboard is committed to supplying both ULEF and NAUF
products in all of our market regions by the end of 2013.
Our Products · 14
Our Products
Leadership in Energy and Environmental Design (LEED)
The U.S. Green Building Council (USGBC) is a
501(C)(3) non-profit organization composed of
leaders from every sector of the building industry
working to promote buildings and communities
that are environmentally responsible, profitable
and healthy places to live and work.
The USGBC’s LEED system is a third-party certification program that
promotes sustainable green planning, building and development.
Flakeboard products may qualify for use in LEED projects. For each
relevant credit, a description of the LEED requirement is listed below
with the associated Flakeboard product(s) that may qualify.
LEED Category
Intent
Requirement
Flakeboard Products
MR 4 Materials &
Increase the use of
Sum of post-consumer recycled content
All Flakeboard products
Resources:
building products
plus ½ of the pre consumer recycled
are manufactured with
Recycled Content
that contain recycled
content constitutes at least 10% (1 point)
recycled materials that
content material
or 20% (2 points) of materials in the
meet this criterion
project, based on cost
MR 5 Materials &
Increase the use of
Use of building materials that have been
Flakeboard
Resources:
building products
extracted, harvested or recovered, and
composite panels are
Regional Materials
that are extracted and
manufactured within 500 miles of the
manufactured with
manufactured within
project site; a minimum of 10% (1 point)
regional materials and
the project region
or 20% (2 points), based on cost, of the
may meet this criterion
total materials value
MR 7 Materials &
Encourage
A minimum of 50% (based on cost)
FSC certified products
Resources:
environmentally
of wood-based materials and products
can be ordered from
Certified Wood
responsible forest
that are certified in accordance with
any Flakeboard facility
management
the Forest Stewardship Council's
principles and criteria, for wood building
components (1 Point)
IEQ 4.4 Indoor
Improve indoor air
Composite wood products must contain
Flakeboard’s low
Environmental
quality
no added urea-formaldehyde resins or
emitting VESTA™ and
Quality:
meet requirements of CARB ATCM for
TERRA™ Panels
Low Emitting
ULEF or NAF resins (1 Point)
Materials
The USGBC is expected to release Version 4 of its criteria in 2013.
Flakeboard is committed to providing our customers options that meet
these new criteria once they are implemented.
Our Products · 15
Our Employees
At its core, the Flakeboard story is about our employees.
“Business sustainability extends beyond the
environment. A successful and sustainable
business never loses sight of the value of solid
customer relationships which are developed
through efficient and extraordinary service.
Flakeboard continues to support the ongoing
training and education of our Sales & Service
teams, thereby solidifying those relationships
through accountability and our commitment
to our customers to consistently exceed their
expectations. We have a vested interest in the
success of our customers as we move
towards our goal of being the
industry leader in sustainable
operations.”
We are only as strong as our people, and our success can
be attributed to an empowered and nurtured workforce.
Our Vision, Mission, and Business Principles provide this
clarity and continually guide our commitment to our
employees and their families.
The focus on our people helps us achieve our business
goals and establish systems that foster superior quality
and customer satisfaction.
We promote teamwork, communication, and accountability
through a variety of programs, including our Team Concept
and Best Practice Exchange programs. We invest in our
people through our strong commitment to Health and
Safety, as well as our professional development programs.
We reward initiative and share success through our Annual
Charlotte Giddens, Manager
Inside Sales Team, Eastern Regional
Support Center
Performance Reviews, Career Advancement programs
and Service Awards.
Total full-time Employees (Month Ending December 2012)
202
Hourly Equivalence
166
Salary Equivalence
146.5
125.5
116
106
117
112.5
97
86
105.5
78.5
87
62
25
22
11
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22.5
16.5
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18.5
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Our Vision of Continual
Improvement applies not
only to our products but to
our people, and we devote
substantial energy to the human
element of the workplace.
16
Our Employees
Commitment to Teamwork, Communication and Accountability
Cross Functional Training through our Team Concept
Flakeboard developed its Team Concept in 1995. The Team
Professional Development and Craft
Enhancement Training
Concept has been implemented flexibly with variations
In addition to the cross-functional training for our employees
at each mill. It empowers employees to supervise their
through the Team Concept, we also provide job training to
work and productivity, to own their achievements, and to
ensure our engineers, mechanics, and electricians maintain
advance their skills and expertise in a number of unique
certification and advance in their trades. Where formal trade
roles and responsibilities. Through cross-functional training
certification programs do not exist, we implement craft
and experience, employees are granted flexibility and
enhancement programs. In these programs, we define our
autonomy in their career development and progression.
own craft skill levels and the associated technical expertise
The concept emphasizes cross-training so that over
time, each member learns to perform a variety of
operations carried out by the team. Typically, teams
meet before or after each shift to discuss the day’s work,
applying their collective ingenuity to improve quality,
process and productivity. Management keeps employees
informed on corporate financial performance, ensuring
and trade skills required for each level. Then we work with
our employees to create Individual Action/Development
Plans to grow their technical expertise so they are able
to advance to higher craft levels. Group training is often
provided at the mills, and individual training is provided
through online, on-site and off-site programs. Apprenticeship
programs with paid leave are offered at some mills.
that teams connect their efforts to the overall company
We intend to establish a comprehensive training tracking
goals. From this collective effort comes cost-effective
program for all mill personnel by the end of 2013.
innovation, top quality products, satisfied customers,
and committed employees.
Best Practice Sharing through our “Best Practice
Exchange” Concept
Flakeboard implements the Best Practice Exchange concept
to promote extensive mill-to-mill communication and
learning. On monthly conference calls and regular on-site
“When we talk about Team
Concept, it’s about how we
work together to empower our
employees to give them the
most ownership and flexibility
to achieve superior results”
meetings, several functional groups with representatives
from each mill discuss key business priorities and best
production, maintenance, safety and management practices.
Through this mill-to-mill sharing, our employees further
explore and advance ideas beyond the mill boundaries,
contributing to the health, safety, and professional
development of the wider Flakeboard community.
Mike Rosso,
Manufacturing Director
Our Employees · 17
Our Employees
Commitment to Employee Health, Safety and Wellness
Safety Is Our #1 Priority [GRI INDEX: LA7]
Our 2012 lost day rate (LDR) was 4.50, which is inclusive
Flakeboard tracks rates of injury and occupational
of all lost work days due to work-related injury or disease.
disease in accordance with applicable state, provincial, and
The lost day count begins the day after an accident.
national laws in our operating areas. Our 2012 Recordable
Contractor hours and general employee absentee rates
Injury Rate (RIR) of 2.00 is lower than the Composite Panel
will be included in future reports.
Association-reported RIR of 2.27* for member companies.
Beginning in 2011 and extending into 2012, we stepped
up behavioral based safety programs at each mill, which
targets one-on-one positive safety coaching interactions to
Lost Day Rate (LDR)
2010–2012
encourage safe behavior. We believe in the long-term that
employees will work more safely and take fewer risks when
76.30
given the right tools and training while performing tasks in
a positive working environment. We are progressing but we
50.60
are not content with our RIR results and have committed to
reducing our year-over-year RIR.
4.50
Our RIR is inclusive of work-related injuries and occupational
diseases. Rates of occupational disease are not tracked
2010
2011
2012
separately from the RIR.
Flakeboard has made significant progress in reducing lost
work days due to employee injuries or illnesses. One of the
Recordable Injury Rate (RIR)
2010–2012
tools we use is our Return-to-Work Policy (RTW), intended
to benefit both employee and company by supporting
3.82
∆
∆
3.37∆
CPA-reported RIR for
member companies
compensation costs. The goal of our RTW program is to
return employees to meaningful and productive work at
2.89
2.27∆
2.18
the workers' healing process and helping control workers’
2.00
the earliest possible date—following attending physician’s
release—after an injury or illness. Transitional work
provided to the worker will be based on the availability
of relevant and productive tasks that meet company
2010
2011
2012
needs and match worker skills sets.
There were no fatalities for the reported period.
*2.27 is a year-end CPA estimate, pending finalization of
member data
Our Employees · 18
Our Employees
We have committed to certifying all of our mills to Occupational Health
and Safety Assessment Series (OHSAS) 18001 by the end of 2014. The
OHSAS 18001 standard is an international health and safety management
system that will guide our focus on controlling occupational health and
safety risks and implementing continual improvement programs. Safety
is our number one priority at the mills, and we are committing significant
resources to this end.
In 2012 we received no significant or non-monetary sanctions for
noncompliance with health and safety laws and regulations.
[GRI INDEX: LA7]
Contractor Safety
Our commitment to safety goes beyond our employees and extends
to our contractor network. Currently, all of our contractors are required
to have annual contractor safety training before they can perform work
at our sites. A 2013 initiative is to model our Sault Ste. Marie mill best
practice at our other mills and require an active contractor work permit
program for all significant work performed. This system encourages
a daily interaction and communication of safe work practices to our
contractors— from supplier representatives, to mechanical contractors,
to raw material and finished board carriers.
We are currently building an extensive database that will track the safety
training components of all suppliers and contractors who come onto our
sites. We envision that this database will allow us to step up to the next
level in terms of ensuring that everyone who comes onto our sites has
been given the necessary and appropriate training for the tasks they will be
asked to perform and activities they will be engaged in.
Flakeboard ISO/OHSAS Working Group,
pictured left to right: Todd Phillips,
Kerry Little, Blair Axley, Anthony
DiGasparro, David Lyon, Jason Banks,
Richard Weber.
Our Employees
Fire Safety
One of the key internal safety metrics that we track
is the annual incidence of fires that occur in our mills.
Within our company, the prevention, detection, and
quick response to potential fires is paramount to the
safety of our employees and the protection of our
livelihood. We take all fire situations seriously and
thoroughly investigate and track incidents that involve
emergency response crews and/or the use of fire
suppression equipment.
Fire reports are generated in the following circumstances:
ŸŸ Fire brigade members or employees respond to
an emergency call that is not a false alarm
ŸŸ Anytime there is discharge of fire suppression
equipment (exemption: the discharge of automatic
sprays through a spark detection system during
normal operation or the extinguishment of sparks
and or small flames resulting from permitted hot work).
Over the past several years, we have made significant
progress to reduce our risk related to fires. Fire safety and
emergency response training, communication, preventive
maintenance programs, and engineered solutions are
important aspects to protect life and property.
Through proactive safety management, training, and mill
team efforts, we have reduced our incidents of fire by over
45% in the past two years.
Fire Incidents
2010–2012
78
56
42
2010
2011
2012
Flakeboard maintains strong lines
of communication with local
Emergency Response and Fire
Departments to ensure they are
familiar with Flakeboard's facilities
and emergency response plans.
Our Employees
Health and Safety Committees and Team Representatives
[GRI INDEX: LA6]
In 2012, 25% of the mill workforce company-wide, including both
hourly and salaried employees, participated in joint management-
The Health and Safety committees
worker Health and Safety committees. The committees, which typically
help guide wellness and safety
meet on a monthly basis, have a two-pronged advantage: employees
program development, best
are empowered to develop their own safety and wellness priorities and
practices, and performance, and
programs and managers gain the knowledge and understanding of
support wellness program initiatives
employees’ needs so they may better contribute to employee safety
for employees and their families.
and wellness in consideration of specific concerns.
Many of our voluntary wellness
programs and community events,
Also, as part of our Team Concept, some mills have wellness and safety
such as weight-loss challenges and
representatives, sometimes called “Starpoints,” who act as health
walking and running events, are
and safety experts for the team. These representatives meet with
coordinated and promoted by mill
applicable human resources and safety managers on a regular basis
Health and Safety Committees.
to discuss team successes and challenges, and they are responsible
for communicating new policies and programs to their respective teams.
Modeled after Occupational Seafty & Health Admistration's (OSHA)
Voluntary Protection Program (VPP), our Carolina Particleboard mill
instituted a safety committee structure that is rewarded with significant
employee participation. We are looking to expand this structure to
other mills with the goal of getting more employees involved in safety
activities and working safely.
Workforce Participation Graph
Overall Employees Involved
77%
25%
30%
7%
nM
ph
M
alv
er
te
.S
Shannon Wulk, Regional HR Manager,
Western Regional Support Center
ra
fla
St
“We need happy and healthy
employees to function as a
high performing company.”
DF
en
rd
oa
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ke
P
ar
tsv
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9%
16%
DF
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Eu
18%
Du
Ca
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lin
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rd
21%
Our Employees · 21
Our Employees
Wellness Programs [GRI INDEX: LA8]
Flakeboard currently provides wellness education,
Commitment to Rewarding Initiative and
Sharing Success
training, counseling, prevention and risk-control
programs for its employees.
ŸŸ All employees are given information on services for
Blue Cross Blue Shield (United States) or Great West
Life (Canada) regarding case management services,
preventative care, disease specific mailers, flyers
and pamphlets.
ŸŸ Preventative health care benefits, such as regular
physical exams, disease screenings, and immunizations,
covered-in-full for employees and dependents
through participation in employee health plans.
ŸŸ All employees have access to an Employee Assistance
Program (EAP) provided by Ceridian for Canadian
employees and Unum for American employees, which
provide confidential counseling 24 hours a
day, 365 days a year.
ŸŸ Various on-site wellness programs including annual
health fairs, cardiac risk screening, smoking cessation,
and on-site preventative care, such as flu shots, are
provided at some mill locations.
ŸŸ Wellness committees meet frequently at many of
the mills to communicate information on wellness
benefits, promote healthy lifestyles, and organize
and host wellness events, such as weight-loss
challenges and races.
Annual Performance Reviews and Career Advancement
By the end of each calendar year, all salaried employees
develop performance goals for the upcoming year.
Because we believe that employees should own their
goals, the employee drafts their personal goals based on
company-wide initiatives, plant-specific initiatives and goals
for the employee’s personal growth and development.
Managers then discuss the goals with each employee and
ensure they are Specific, Measurable, Attainable, Realistic
and Timely (SMART).
Employees and managers are expected to review goals
and progress on a quarterly basis, with formal mid- and
end-year reviews conducted between salaried employees
and managers. Accomplishment of goals is the key
consideration for wage adjustment recommendations
during annual wage reviews for all salaried employees.
All employees participate in our profit and gain-sharing
program resulting from the positive impact of teamwork
on our business.
Flakeboard conducts formal
annual performance reviews
with 100% of salaried employees.
Inclusive of all hourly and salaried
employees, annual reviews are
conducted with 19% of the
workforce. [GRI INDEX: LA12]
Fourteen gentlemen from the St. Stephen mill
grew moustaches in November and raised $4,200
for Prostate Cancer Awareness month
Our Employees · 22
Our Employees
Service Awards
We are proud of our employee retention, and we are pleased to honor our staff
with Service Awards for their tenures. At 10, 20, 25, 30 and 40 years of service, we
acknowledge our employees’ contribution with a Service Award, which includes a gift
and public appreciation, often including a story and photograph in our mill newsletters.
Employee Years of Service
(% of Workforce)
63%
45%
>10 years
>15 years
>20 years
30%
Donnie Greenier, Fire
and Safety Support,
St. Stephen, receiving
25 Year Service Award,
presented by Rodney
Walsh, Maintenance/
Project Manager,
St. Stephen.
Flakeboard employees enjoy one of the many
barbecues hosted at the mills.
Our Employees · 23
The Environment
At Flakeboard, preserving and protecting our environment is
more than just a commitment—it’s an integral part of how we do
business. Our stated mission is “continual improvement” and this
is certainly true as it relates to environmental performance and to
the conservation of natural resources through the establishment
and meeting of environmental targets and objectives.
All employees are expected to:
ŸŸ Conserve
ŸŸ Comply
ŸŸ Communicate
As demonstration of our commitment to environmental compliance
and continual improvement, we are in the process of implementing
environmental management systems at all of our mills and have a
commitment to have all mills certified to ISO 14001 by end of 2014.
Each mill has a dedicated EHS or Environmental Manager and our
compliance record is strong, with no violations resulting in significant
monetary fines in 2012. [GRI INDEX: E28]
Our commitment to the environment does not stop with our operational
footprint but extends to our entire business. We focus on reducing
our impacts through responsible stewardship of our natural resources,
efficient manufacturing, and the development and distribution of
products to environmentally responsible customers and green building
markets. This commitment begins with our raw material: wood.
Wood fiber is the primary raw material for our products, comprising
approximately 85% of our finished products. Forests, if managed properly,
provide a sustainable, renewable resource. Due to the commitment of
foresters and responsible fiber users such as Flakeboard, timber stocks
across North America are increasing, and forests are healthy and strong.
“Our commitment to the
environment is grounded in our
relentless drive toward efficient
operations, compliance to
regulatory requirements, and
transparency to stakeholders
in material matters, including
greenhouse gas emissions.
We have the employees and
company leadership that can
and will make a
difference.”
Richard Weber,
Government &
Environmental
Affairs Manager
24
The Environment
Flakeboard FSC Certification Policy
Flakeboard is committed to responsible procurement of woodbased products. Flakeboard will engage in best practices to process
wood from certified or controlled suppliers in the manufacture of its
Medium-Density Fiberboard (MDF) and Particleboard (PB) products.
Our suppliers will provide raw material that has been:
ŸŸ Legally harvested;
ŸŸ Harvested from areas where traditional and civil rights are
not violated;
ŸŸ Harvested from forests where high conservation values
are embraced;
ŸŸ Harvested from areas that have not been converted from
natural forests or habitats to plantations or non-forest uses;
ŸŸ Not harvested from genetically modified trees
Flakeboard views its FSC Chain of Custody certification as a
tangible example of the company’s commitment to important
environmental initiatives.
At Flakeboard, we encourage and support the sustainable management
of forest resources by using Forest Stewardship Council (FSC) certified
fiber sources for our raw materials. In 2012, 100% of our products were
produced with recycled, responsibly sourced, or certified fiber. The FSC
certification requires the responsible management of the forests covered
by the certification, and through the FSC Chain of Custody system,
we work with our suppliers and customers to track those responsibly
produced materials and ensure a link between responsible forest
management, responsible production and responsible consumption.
Our Employees · 25
The Environment
We pride ourselves on working with forest products
This philosophy of “highest and best” use governs
companies to utilize recycled and secondary sources of
many of the decisions that we make in our operations.
fiber—including sawdust, shavings and other pre- and
As an example, the staff of the Albany mill has focused
post-consumer materials to produce high-quality, value-
on utilizing the residual wood fiber in products and
added wood products for the building and furniture
has identified practices to shift away from burning this
industries. In 2012, we used 1.37 million bone dry tonnes
biomass for heat and steam generation. Similarly, the
of wood fiber and 100% of our wood fiber came from
St. Stephen, Bennettsville and Carolina Particleboard
recycled or recovered sources. [GRI INDEX: EN1 and EN2]
employees have been able to recover increased amounts
of sander dust to be utilized as fuel and in the case of
Recycled Fiber Content 2012
St. Stephen displaced the combustion of fuel oil, which
also reduces Greenhouse Gas (GHG) emissions. In fact,
working with the Bennettsville MDF plant, the employees
2%
9%
89%
Pre-consumer
Recycled Fiber
Recovered Wood
Fiber
of the Carolina Particleboard plant are now utilizing 100%
of the recovered sander dust either as raw material for
production or as biomass fuel to displace fossil fuels.
Post-consumer
Recycled Fiber
In addition to utilizing sustainable wood fiber as a raw
material, we also believe that wood should be used for
its “highest and best” application. Generally, that means
that we favor using wood to produce high-value products
over using it to produce energy, and we favor producing
energy over using it for compost or animal bedding
material, and we favor composting or bedding material
over landfilling. In all applications, we believe that wood
should be used as efficiently as possible, minimizing
waste and finding secondary or even tertiary applications
for that material before considering it a waste for disposal.
This practice is reflected in CPA’s 2011 Benchmarking
Survey conducted of 18 Medium-Density Fiberboard
(MDF) manufacturing facilities that evaluated total wood
usage rates per unit of production, i.e., wood incorporated
into the product plus wood waste. The survey identified
the Eugene, Sault St. Marie, and Malvern facilities as three
of the top four facilities with the lowest wood usage rates
per unit of production.
The Environment · 26
The Environment
Resin Reduction and Materials Optimization [GRI INDEX: EN26]
Our commitment to reducing our environmental impacts
goes beyond just our wood management. One of the
largest impacts is material input reduction, and resin
dosing reductions is one of the most significant. As
emissions standards—such as CARB Phase 2—become
more and more stringent and resin costs continue to
rise, Flakeboard has focused on optimizing production
formulations as well as developing of some of the most
progressive resin technology in the industry. Since 2010,
we have reduced our resin usage across the company, in
terms of pounds per thousand square feet of ¾” product
(lb/MSF), by more than 5%. We strive for ongoing resin
reduction and optimization so that we can continue to
provide a cost competitive product for our customers
while maintaining the high standards of quality that they
rely on. For example:
ŸŸ In several of our plants, we have recently converted
to a new, proprietary resin application technology
that has saved approximately 5–15% on resin usage
and anticipate more reductions as the technology is
optimized at those sites.
ŸŸ We installed a second EVOJet™ system at the
St. Stephen plant in 2010, on the FIBREX® line.
Since then, we have reduced resin use by
approximately 30% and have also significantly
reduced formaldehyde emissions.
ŸŸ In Eugene, we installed the EVOJet™ technology
in 2009. This technology, which was originally
developed by Flakeboard in St. Stephen, has allowed
us to manufacture a high-quality MDF with post-dryer
resin application. The Eugene MDF plant achieved
100% post-dryer resin application, shortly after startup, and achieved a 33% reduction in resin usage from
2008 to 2011, with continuing improvements as the
operations have been optimized.
ŸŸ We believe it is not always necessary to secure
new technologies in order to see significant gains.
Through full asset utilization, significant input
reductions can be achieved. A company-wide project
led by Flakeboard’s Engineering Team to refurbish
our multi-opening presses across the business
resulted in sand-off reduction by approximately
25%, reducing both wood and additive usage.
ŸŸ Our company vision of continual progress is evident
in the day to day operations that also support the
materials reduction trends, in areas such as density
reduction, trim reduction, reject reduction and
improved grade. Over time, these daily “wins”
equate a significant impact to the environment,
cost, and sustainable operational efficiencies.
In tandem with our efforts to optimize resin, focus has also
been on engineering products that meet specific customer
criteria. Over-engineered products build waste throughout
the supply chain—be it raw materials consumption,
embodied energy or transportation cost. Many of our
facilities have worked closely with key customers to
Total Resin Use Intensity as a
Percentage of Baseline
reduce raw material usages up to 8% without sacrificing
product performance for those applications.
Resin Intensity as a
Percentage of 2010
Baseline
110%
100%
2010
99.11%
Baseline
94.45%
90%
2011
2012
All Plants
“Flakeboard embraces the voice of the
customer—that most often steers the
direction we take toward process and
product improvement; this practice
has long been a mainstay
to our business.”
Mike Luepkes,
Business Technical Manager
The Environment
Energy Reductions
In 2012, Flakeboard consumed 5.48 million MMBTUs of fuel
Our greatest focus on energy reductions has been on
in stationary combustion units. Of that total, 4.27 million
improving our electrical energy efficiency. For example,
MMBTUs, or 77.9%, were generated from fossil fuels,
since 2010, we have installed energy efficient lighting
primarily natural gas, and 1.21 million MMBTUs, or 22.1%,
at our mills in Albany, St. Stephen, Sault Ste. Marie and
were generated from biomass, primarily sander dust and
Bennettsville. We have implemented Real-Time Energy
hog fuel (bark and other low-grade wood materials).
Management Information Systems (RT EMIS) at St.
[GRI INDEX: EN3 and EN4]
Stephen and Sault Ste. Marie. Four of our facilities have
In 2012, Flakeboard also used approximately 539,000
megawatt-hours (MWh) of electricity, supplied by American
and Canadian utility companies. We participated in the
Pacific Power Blue Sky Renewable Energy Program again in
2012, purchasing 1,622,400 kWh of renewable energy, and
avoiding the release of 2,025,631 lbs of carbon dioxide.
It is imperative for our business to continue to find
ways of reducing our energy usage. Over the past
few years, we have focused on two areas of energy
performance: converting from fuel oil to lower GHGemitting fuels (i.e., natural gas) and carbon-neutral
biomass, and increasing energy efficiency, particularly
completed, or are in the process of completing projects
to improve and optimize refiner and screening operations.
In Bennettsville, this is a savings of approximately 500
kW/hr and in Sault Ste. Marie it represents 30 kW/Oven
Dried Metric Tonne (ODMT) of fiber. Similar results are
expected at Malvern and Albany, as they complete similar
projects in the coming year. We plan to implement formal
energy management best practices auditing to help give
mills direction on how to reduce energy and elevate the
awareness of energy opportunities through more focused
training. Company-wide, we have been successful in
reducing our electrical energy intensity (in kWH/MSF) by
more than 7% since 2010 and we are committed to a 10%
electrical energy efficiency in our plants. We have
reduction over 2010's intensity by 2015.
participated in numerous cooperative agreements
[GRI INDEX: EN5, EN7 and EN18]
with local government agencies and public utilities,
contributing to capital improvements, energy efficiency
commitments and agreements to shut down, upon
Electrical Energy Intensity
request, during peak electrical grid use periods.
Tagging onto the success at our Eugene MDF mill with
use of the biofilter for emissions control, we are evaluating
the possibility of replacing thermal oxidizers with this
technology in several other mills to control emissions from
our presses and further reduce the use of fossil fuels. In
our Carolina Particleboard plant, this will save approximately
87,000 MMBTU/yr. We are also improving process
performance using heat recovery at the Albany and
Percentage of 2010 Baseline
Electrical Energy Intensity
(kWh/MSF)
110%
100%
2010
96.70%
Baseline
92.80%
90%
2011
2012
All Plants
Bennettsville plants. This has reduced natural gas use in the
thermal oxidizers by approximately 6% at Bennettsville.
The Environment · 28
The Environment
Case Study: Sault Ste. Marie, Ontario
The Sault Ste. Marie facility has historically been one of
our highest electrical energy consuming facilities. As such,
this plant has taken the lead in developing strategies
and programs to increase electrical energy efficiency.
In 2010, a team of Sault Ste. Marie staff developed a
comprehensive Energy Management Plan (EMP) and an
application for the Ontario Northern Industrial Electricity
Rate (NIER) Program. This led to a partnership with the
University of Waterloo and the Ontario NIER Program.
Through this program, the plant has received financial
incentives and rebates over a 3-year period to assist in
funding energy efficiency projects. Some of the projects
undertaken at Sault Ste. Marie include:
Real-Time Energy Management Information System
(RT EMIS)
ŸŸ The RT EMIS is a proprietary energy management
system designed on a Pi OSI based platform.
The system allows for real time management and
control of processes, to measure energy reduction
gains and losses.
ŸŸ The components of this system have been
installed and energy targets are being established
for areas of the mill.
ŸŸ The RT EMIS system is 90% complete and will be
fully operational in 2013.
Plant-wide Energy Metering Network
ŸŸ To support the RT EMIS, since 2010, the mill has
installed more than 30 revenue grade power meters,
four natural gas meters, and three compressed
air flow meters, connected to a dedicated energy
subnet and dedicated energy OPC Server.
ŸŸ This has allowed a connection to Ontario real time
market power pricing for cost control.
Voltage Optimization and Reduction
ŸŸ As part of our Energy Management Plan, we have
been working with an American company, Utilidata,
over the last two years to study voltages in the Sault
Ste. Marie mill and develop an implementation plan
for a Voltage Reduction Control system. The University
of Waterloo is also doing a study on the project and is
working closely with both Flakeboard and Utilidata.
ŸŸ Implementation of the project will be completed
by the end of 2013 and is anticipated to result in
a 1.5% to 2% annual energy reduction, with a return
on investment of two years.
Variable Frequency Drive (VFD) Installation
ŸŸ The Sault Ste. Marie plant plans to install a VFD
on one of the largest fans in the plant, a project
which is estimated to result in an energy savings
of approximately 1,800 MWh/yr, or 1.8% of the
plant total electrical energy demand.
ŸŸ Installation is planned for later in 2013.
[GRI INDEX: EN7 and EN18]
“The RT EMIS system uses a
plant-wide metering system
and complex data analysis
to create an easy to use
graphic display. With it, we
are putting a display port
in front of the operators,
who will be able to use their
skills and experience to identify
additional opportunities for energy savings.”
Jason Kustura, Power Distribution/Conservation
& Instrumentation
ŸŸ All metering and servers have been installed,
and networked, and the system will be fully
operational this year.
The Environment · 29
The Environment
Reducing GHG Emissions*
Total Scope 1 and Scope 2 mass emissions have continued to moderately increase
over the last 3 years. This is expected as production has increased with the improving
economy. However, the total Scope 1 and Scope 2 GHG emissions intensity reached
a peak in 2011, and started to reduce in 2012. As market conditions continue to improve,
we will be able to operate our plants at more optimized rates and schedules, allowing
us to further improve GHG emissions intensity. Our efforts to reduce electrical energy
consumption have resulted in a Scope 2 GHG intensity reduction of almost 8%, over our
baseline year of 2010. We have also committed to establishing a baseline for Scope 3
GHG emissions data by the end of 2013.
Scope 1 & 2 GHG Mass Emissions
Scope 2
500,000
250,000
193,595
183,469
200,616
208,640
207,382
229,004
2011
2012
0
2010
All Plants
GHG Emissions Intensity
(CO2e metric tonnes/MSF) as a
Percentage of 2010 Baseline
Mass Emissions (metric tonnes)
Scope 1
Scope 1 & 2 GHG Emissions Intensity
as a Percentage of Baseline
110%
100%
101.98%
100.14%
2010
Baseline
90%
2011
2012
All Plants
Excludes Scope 1 mobile sources. [GRI INDEX: EN16]
Excludes Scope 1 mobile sources. [GRI INDEX: EN16]
*Scope 1, 2 and 3 GHG Emissions, per the Greenhouse Gas Protocol:
GHG Emissions Intensity
(CO2e metric tonnes/MSF) as a
Percentage of 2010 Baseline
Scope 2 Emissions Intensity as a
Percentage of Baseline
Scope 1 accounts for direct GHG emissions from sources that
are owned or controlled by the reporting company.
Scope 2 accounts for indirect emissions associated with the
generation of imported/purchased electricity, heat, or steam.
110%
Scope 3 allows for the treatment of other indirect emissions that
are a consequence of the activities of the reporting company, but
occur from sources owned or controlled by another company.
100%
2010
96.68%
Baseline
92.14%
90%
2011
2012
The Environment · 30
The Environment
In addition to our efforts to reduce GHG emissions through the reduced
utilization of fossil fuels, we have the unique benefit of producing products
out of wood. Wood is a naturally renewable material that removes carbon
dioxide (CO2 ) from the atmosphere and incorporates the carbon into the
fibers of the wood. When the wood is incorporated into a product, the
carbon is sequestered for the life of that product.
Carbon Equivalent (CO2e) Balance
20.000
10.000
Short tonnes / ft²
0.000
-10.000
-20.000
-30.000
-40.000
-50.000
Fossil Carbon
Emissions
Biogenic Carbon
Emissions
Carbon Stored
in Panels
Net CO2e
Emissions
Typical Flakeboard Carbon Equivalent Balance using the Composite Panel Association’s Carbon
Model, in this case for St. Stephen
While many of our plants have implemented eco-efficiency initiatives,
these have traditionally occurred on an ad hoc basis and we have not
consistently tracked these initiatives to date. We therefore have set a
new target to establish a data collection process and baseline metrics
for water and waste emissions by end of 2013.
Based on the Composite
Panel Association’s Carbon
Model, the panels that we
produce sequester more than
three times the CO2e emitted
from our production process
and supply chain.
The Environment · 31
Our Communities
Since its founding in 1960, Flakeboard has been an integral member
of the local communities in which it operates. We understand that
the health of the communities in which we operate is critical to the
sustainability of our business and our financial success. Our commitment
to our communities is demonstrated in our local procurement programs,
community engagement efforts, and charitable contributions. We do
not take these commitments lightly.
Commitment to Local Procurement [GRI Index: EC6]
In order for a region to grow and
prosper it is vital that all of the spokes
in the wheel are in alignment. In
todays’ world, in order for sawmills
to operate and prosper it is critical
that they find a “home” for their
co-products. As consumers of what
was traditionally considered a sawmill
waste product that typically went
The direct employment by Flakeboard of individuals in our communities
to landfill, Flakeboard provides an
has a significant impact on our local economies, with current annual
outlet for these residuals that are
employee salaries and benefits at $73,052,546 (USD). This income
no longer accepted at landfills, and
provides economic stimulus to all types of local business. This impact is
sawmills have essentially turned these
compounded by our extensive local procurement policies and practices.
co products into important revenue
At Flakeboard, we believe the best procurement policy is to buy
locally whenever possible. This commitment contributes to community
prosperity, builds strong and lasting relationships with our suppliers,
and reduces transportation and the associated fossil fuel consumption
and GHG emissions.
streams. Flakeboard recognizes and
accepts the responsibility to contribute
to the greater community health and
prosperity by providing a beneficial
application for these co-products.
Community Prosperity
Buying from local suppliers keeps the dollars spent within the community,
which supports local employment opportunities and promotes growth.
Strong and Lasting Supplier Relationships
Getting to know our local suppliers on a first name basis and gaining
an understanding of their operations, challenges, opportunities and
capabilities is a critical component of our procurement practice. Knowing
our suppliers allows us to work together to achieve efficiencies and to
In 2012, 97.2% of our
fiber supply and 100%
of our resin supply was
procured from within 250
miles of our production
facilities.
build mutually beneficial best practices.
32
Our Communities
Our procurement policy includes a supplier pre-qualification
We firmly believe that having an independent third
process which evaluates insurance coverage, worker
party certification body is a best practice that allows us
safety training, product specifications, and quality. Our
to demonstrate to our customers and communities that
procurement process also involves periodic supplier
sustainability is indeed very important to us and is a key
reviews and quality assurance checks. The procurement
component of our operations. In addition, our company
policy covers not only parts and consumable goods but
wood procurement personnel spend considerable time
also mechanical contractors, resin, wood, and transportation
working with community groups and task forces on
suppliers. Working with local businesses affords us the ability
initiatives such as:
to gain the knowledge and insight required to help our
suppliers reach “preferred supplier” status.
The benefits of a strong supplier relationship are clearly
evident in items such as refiner plates, where we combine
our technology and experience with the technology
and experience of our suppliers to build tooling that
matches the best available materials and techniques to
improve material flows, extend life and reduce energy
requirements. Working together to trial and collect data in
the field has allowed us to continually improve our refiner
ŸŸ Collecting data that allows for an understanding
of local biomass inventories,
ŸŸ Understanding, testing and trialing alternative
renewable biomass supplies for both our regular
production processes and for biomass heating
requirements/co-generation initiatives,
ŸŸ Building best practices to collect, store, convert and
use construction and demolition debris as a way to
divert this material from landfills and use it in value
added products such as ours.
plate performance while building efficiencies into our
energy requirements. In fact, the collaboration with our
refiner plate suppliers at our Sault Ste. Marie MDF facility
has allowed us to reduce our energy requirements in the
refining process by over 30% over the last several years.
Similarly, working with our resin suppliers has allowed
us to create a ‘best fit’ resin recipe for our facilities in
order to reduce costs on both sides, while still allowing
us to produce the quality products that our customers
have come to know us for.
In terms of raw material supply, knowing our suppliers and
working closely with them to understand their operations
and forestry practices allows us the comfort and knowledge
that our suppliers are as interested in working towards
“We believe in building relationships with
each of our suppliers in order to gain a mutual
understanding of the other’s operations,
capabilities, challenges and opportunities. This
investment of time pays significant dividends
in terms of quality, efficiency, optimization and
the exploration of other potential synergies.
Over the years we have mutually enjoyed the
benefits of building these critical relationships
and time and time again we are reminded of
how important it is to go beyond a simple
customer/supplier relationship.”
Jeff Ferguson,
Regional Wood Procurement
Manager, Sault Ste. Marie
sustainable forest practices as we are. As such, Flakeboard
has spent resources and effort to meet the stringent
requirements of FSC certification.
Our Communities · 33
Our Communities
Reducing Transportation through Local
Purchasing [GRI Index: EN29]
Flakeboard is committed to reducing the negative effects
that arise from transporting goods over great distances by
buying locally whenever possible.
Our wood fiber material procurement policy aligns
itself with the ‘local’ dimension of the ECC Certification
Program: where quality and product meet requirements,
we will seek to procure our material from within a 250 mile
radius of our production facilities. In 2012, we purchased
97.2% of our fiber from within this 250 mile radius.
Similar to wood fiber material transportation, the distance
of our resin suppliers to our production facilities is also a
major consideration. 100% of our resin supply comes from
within a 250 mile radius of our production facilities.
Commitment to Community Engagement
and Charitable Contribution
We recognize our employees and their families as vital
stakeholders of our community engagement efforts.
They are at the forefront of identifying and engaging our
mills in new philanthropic programs, community events,
and volunteer opportunities—truly leading Flakeboard’s
community involvement efforts. Whether it’s one of the
many employee-organized fundraiser barbecues, a Relay
for Life, a student mentoring session, or the awarding
of an annual college scholarship, Flakeboard and its
employees treat the community like family.
We know a vibrant community is dependent on its youth
and we ensure that investment in these future leaders of
society is met through the sponsorship of athletic groups,
recreational facilities, educational scholarships, and the
mentoring and tutoring of children in our local schools.
In 2012, our mills contributed more than $26,900 to local
colleges, and elementary, middle, and high schools; in
addition, many of our employees volunteered as tutors
and mentors in their communities. We know members
of our community that are disadvantaged and we have
We know that being a good member of the community
attempted to lessen their needs with food bank donations,
means being a contributing member of the community.
clothing drives, and financial contributions. In 2012, our
For over 50 years, our contributions have gone beyond
mills donated $7,500 to Meals on Wheels, a program that
financial to include the investment of time, expertise
provides home-delivered hot meals to elderly people in
and materials on many issues that impact our
the community who are unable to prepare their own.
communities and neighbors.
Flakeboard employees in St. Stephen
spend one hour of their work week
(on company paid time) mentoring
students at Milltown Elementary
School in the Partners Assisting Local
Schools (PALS) program.
Our Communities · 34
Our Communities
We also feel it is important to participate in charitable campaigns for
community health and wellness, including heart and stroke, and cancer
research through fundraising and individual participation. As an example
of this commitment, our Sault Ste. Marie mill has contributed nearly
$150,000 to the Sault Area Hospital Foundation over the past seven years,
with its most recent donation of $21,000 in 2012.
These actions help ensure the fabric of our local communities remains
strong and resilient. We know this directly contributes to the strength
and resilience of our business.
In the coming years, we seek to enhance the coordination and positive
impact of our community engagement initiatives by establishing
“Flakeboard is committed to
‘giving back’ to the community
which is evident in the many
volunteer hours and donations,
both company and personal. We
believe this is an important part of
respecting the local communities
in which we operate.”
Lorraine Matthews,
Human Relations
Manager, St.
Stephen
a baseline for our community service hours, community outreach
committees at each mill by 2013, and a procedure at each mill to
track community service hours and dollars donated. In addition we are
committed to establishing a formalized Flakeboard Community Initiative
with a documented approach and goals for community engagement
by the end of 2013.
Flakeboard employees in St. Stephen generously donate and present a $9,000 check to the Izaak
Walton Killam (IWK) Health Care Foundation, whose mission is to inspire and celebrate giving to
support excellence in specialized health care for families in the Maritime region of Canada.
Our Communities · 35
Our Communities
Community Investment and Donation [GRI INDEX: EC1, partial]
In 2012, Flakeboard mills and corporate and sales offices contributed more
Flakeboard Charitable
Contributions in 2012
than $169,000 to charitable organizations. This included donations to the
March of Dimes, the United Way, the American Cancer Society, the Boys
$180,000
and Girls Club, local grade schools, colleges, hospitals, community centers,
$169,414
sports teams and clubs, and many more organizations that contribute to
the vitality of our communities.
$160,000
On top of that, Flakeboard employees donated hundreds of volunteer
hours and thousands of dollars to charitable organizations in 2012 through
company and self-organized events and programs. Specific data on
$140,000
employee contributions are not tracked. In 2013, we plan to establish
a baseline for employee community service hours and procedures to
track service hours and dollars donated.
$120,000
Team Flakeboard participated in the Second Annual Crime Stoppers
Fire Truck Pull, a fundraiser for Crime Stoppers of Sault Ste. Marie and
$100,000
the District of Algoma.
Community Development Programs [GRI INDEX: SO1]
$80,000
In 2012, all United States-based Flakeboard mills voluntarily implemented
Affirmative Action Plans to ensure that Flakeboard mill workforces generally
$60,000
reflect the gender, racial, and ethnic demographics of their respective
community labor pools.
$40,000
The Affirmative Action Plans include an assessment element to determine
the composition of the workforce and new hires as compared to community
characteristics; recruiting, community outreach and training elements to
$20,000
address underutilization of women or minorities; and a monitoring element
to evaluate the impact of its employment and compensation decisions on
women and minorities. As part of the Affirmative Action Plans, Flakeboard
$0
attended or hosted recruiting events and career fairs for and conducted
outreach to women, minority and veteran groups throughout its operating
Bennettsville MDF
areas in the United States. The Affirmative Action Plans help ensure that
Eugene MDF
Flakeboard is as diverse as the communities in which it operates and that
Carolina Particleboard
economic benefits are fairly distributed.
Corporate & Sales
Duraflake
Malvern
St. Stephen
Sault Ste. Marie
Our Communities · 36
Our Communities
Flakeboard Community Events and Investments
Malvern:
Duraflake:
ŸŸ Participated in American Cancer Society
“Relay for Life”
ŸŸ Participated in the Soroptimist International
“Walk for a Cause” cancer fundraiser
ŸŸ Brickfest Community Festival, Annual BBQ
Contest Sponsor
ŸŸ Partnered with the Department of Human Services
to sponsor foster children during the Holiday Season,
providing basic necessities.
ŸŸ Sponsored purchase of new score board for the
Glen Rose High School football field
ŸŸ Pop Tab Pandemonium—collected pop tabs for
Ronald McDonald House Charities
ŸŸ Collected canned goods for the local food pantry
ŸŸ Participated in an annual United Way campaign for
local community efforts
ŸŸ Participated in community Clean Up Day
ŸŸ Donated to:
ŸŸ Sponsored annual “Log a Load” function which
benefits Arkansas Children’s Hospital
−− Albany Aquatic Center
ŸŸ Tabled Sponsorship at American Heart Association
“Heart Ball”
−− Leukemia and Lymphoma Society
ŸŸ Supported Glen Rose School Archery team in their
first trip to the National tournament
−− South and West Albany Robotics
−− West Albany High School Baseball Team
ŸŸ Hosted annual family day picnic
−− Boys & Girls Club of Linn County
ŸŸ Supported Hot Spring County Medical Center
through the purchase of a table at their annual
dinner/fundraiser
−− Lyons Charity Golf Tournament
ŸŸ Donated to College of the Ouachitas, Literacy
Council of Heart Springs, Hot Springs County
Library, Lee Sports Foundation, and Magnet
Cove High School
−− Christmas Storybook Land
−− River Rhythms
−− Jefferson High School
−− Rebel Sports Foundation (sports camps for both
West and South Albany)
Eugene:
ŸŸ Participated in and sponsored American Cancer
Society “Relay for Life”
ŸŸ Member of the Eugene Chamber of Commerce
ŸŸ Donated to:
−− Children’s Miracle Network
−− N. Eugene High School
−− Springfield High School
−− Fern Rich Middle School
−− Madison Middle School
−− Big Brother/ Big Sister
Duraflake employees volunteer along with other
community members to 'spruce up' a local home,
during United Way Day of Caring.
Our Communities · 37
Our Communities
Carolina Particleboard (Bennettsville):
Sault Ste. Marie:
ŸŸ Participated in and sponsored American Cancer
Society “Relay for Life”
ŸŸ Seven years of contributions to Sault Area Hospital
Foundation totaling $150,000
ŸŸ Employee involvement and contributions to
March of Dimes' Annual March for Babies
ŸŸ Contributed to Algoma University and Sault College
large capital campaigns to increase infrastructure.
ŸŸ Donated to:
ŸŸ Sponsored and judged Algoma University Business
Case Competition
−− Carolina Pride Softball
−− Richmond Rockies Baseball
−− Carolina Hotstix Softball
−− Wallace Dixie Youth Baseball Team
−− Bennettsville Fire Department
−− Wallace Area Recreation Department
−− McColl Recreation Department
−− Cheraw Recreation & Leisure Services
−− Marlboro County Branch NAACP
−− March of Dimes Annual March for Babies
Bennettsville MDF:
ŸŸ Participated in and sponsored American Cancer
Society “Relay for Life”
ŸŸ Employee involvement in March of Dimes' Annual
March for Babies and American Heart Walk
ŸŸ Donated to Greater Cheraw Chamber of Commerce
and Marlboro Country Branch NAACP
ŸŸ Sponsored DC Ballers Baseball Club
ŸŸ Collaborate with local economic development
and like businesses to improve vocational skills of
students in local high school and technical schools
to improve long-range applicant pool
ŸŸ Job Fairs North East Tech, Florence Darlington Tech,
Orangeburg SC
ŸŸ Class on Interview skills for Bennettsville Employment
Security Commission
ŸŸ Contributed to the creation of two “Continuous
Improvement” Bursary’s at Sault College to award
2nd or 3rd year maintenance students that show
the greatest academic improvements
ŸŸ Provided mill tours to local high school and
college classes
ŸŸ Provided some kind of service or interaction with
over 75 local groups/agencies
ŸŸ Support of Operation Christmas Child that provides
gifts and supplies for Kids in Third World Countries
ŸŸ Donated $7,500 to local Meals on Wheels Program
ŸŸ Donated $7,500 to Big Sisters / Brothers Foundation
ŸŸ Flakeboard and its employees donated $16,000 to
the United Way in 2012
ŸŸ Distributed over $2,500 to Sault Ste. Marie Safe
Communities Partnership, Bon Soo Winter Carnival
Rotaryfest Easter Seals Telethon and Community
Day Celebration
ŸŸ Weekly barbecues raised over $3,500 for local sports
teams, schools and non-profit organizations
ŸŸ Participated in the Algoma Workforce Investment
Committee’s (AWIC) and the Algoma Training
Consortium
ŸŸ Participated on Sault Ste. Marie Safe Communities
Partnership Board
ŸŸ Donated board and individual time for Habitat for
Humanity
ŸŸ Provided Domestic Violence Awareness Training
to the general plant through Neighbours, Friends
and Families, a public education campaign to raise
awareness of the signs of abuse of women
Flakeboard employees participate in the First Annual
Crime Stoppers Fire Truck Pull, a fundraiser for Crime
Stoppers of Sault Ste. Marie and the District of Algoma.
Our Communities · 38
Our Communities
St. Stephen:
ŸŸ Donated to Curling, Wrestling, Soccer, Baseball,
Hockey, and Basketball sports teams
ŸŸ Weekly barbecues in the spring raised $1,200 for the
Relay for Life (Cancer Society)
ŸŸ Community donations include contributions to: St.
Stephen Volunteer Fire Department, Civic Centre,
Legions, Lions Club, Border Arena, Disaster flood
relief, International Festival, Milltown Elementary
School, Scholarships and Movember, NB Heart and
Stroke Foundation
ŸŸ Donated $1,000 to the Milltown Elementary School
for their summer program
ŸŸ Five volunteers in the PALS program mentored
children at the Milltown Elementary School for one
hour/week on company-paid time
ŸŸ Employees contributed $9,000 to the IWK Foundation
ŸŸ Eight volunteers worked at the breakfast program
at the Milltown Elementary School
ŸŸ Fourteen gentlemen from the management group
grew moustaches in November and raised $4,200 for
Prostate Cancer Awareness month
ŸŸ Other volunteering: John Howard Society Board,
Lincourt Manor Board, Coalition for a Drug Free
Community, Enterprise Charlotte Board
[GRI INDEX: EC1, partial]
Kelly Shotbolt, Flakeboard President, joins a parade of New Brunswick Business Council members
along with their respective HR Managers. This group meets routinely to discuss initiatives and issues,
one of which has been the implementation of the Partners Assisting Local Schools (PALS) program.
Our Communities · 39
Eastern Regional Support Center
(left to right)
Charlotte Giddens, Manager – Inside Sales
Melanie Pittman, Inside Sales
Cynthia Pettyjohn, Inside Sales
Nedra Jurewicz, Inside Sales
Faces of
Flakeboard
Flakeboard recognizes and
invests in our most important
asset, our people. The next few
pages introduce some of our
employees at various locations
throughout our organization
(left to right)
Phil Pierot, Eastern Region Sales Manager
John Verzino, Regional Sales Manager
Kim Duit, Regional Sales Manager
Al Murray, Mill Sales and Export Manager
Clark Lary, Mill Sales Manager
Kevin Sutton, Regional Sales Manager
Bennettsville
South
carolina
Bennettsville MDF
(top circle, top-down)
(bottom circle, top-down)
Zach Hoiland
Technical Director
Andrew Eddy
Regional Engineering Manager,
Bennettsville Complex
Pete Manning
Finishing & Logistics Manager
Mike Henry
Production Manager
Jason Banks
Site Environmental Manager,
Bennettsville Complex
David Gunnells
Production Manager
Jackie Roberts
Lab Supervisor
Faces of Flakeboard · 41
Bennettsville
South
carolina
Carolina Particleboard
(top circle, top-down)
Patricia Russell
Shipping Clerk
Sharon Linton
Maintenance Clerk
Matt Swinnie
Operations Manager
Chris Norton
Finishing & Shipping Manager
(bottom circle, top-down)
Helen Woods
Production
James Bridges
Shipping
Mike Reardon
Manufacturing Manager,
Bennettsville Complex
Jimmy Amerson (left)
and Tim Peterkin (right)
Saw Operators
Faces of Flakeboard · 42
Albany, Oregon
Eugene, Oregon
(top circle, top-down)
(bottom circle, top-down)
Nathan Eshelman
Lamination, Shipping and
Specialty Coordinator
Dave Kruse
Technical Director
Glade Campbell
Maintenance Coordinator
Gwenda Carr
Lamination Team
Jon Jensen
Production Manager
Roxanne Elliott
HR/Office Manager
Steve Smith
Maintenance Planner
Albany
OREGON
Eugene
Faces of Flakeboard · 43
Malvern
ARKANSAS
(top circle, top-down)
Rick Culpepper
Plant Manager
Madison ”Corky“ Pankey
Line Operator
Daren True
Plant Scheduler/Finishing
Manager
Devin Dismuke
Milling and Drying Utility
(bottom circle, top-down)
Brent Leopard
Control Systems Technician
Jackie Butler
Bander Operator
Gary Parrish
Shipper
Mike Rhodes
Environmental Health and
Safety Manager
Faces of Flakeboard · 44
Moncure
NORTH
CAROLINA
(top circle, top-down)
(bottom circle, top-down)
Adrain Cameron
Mill Sales Manager
Rey Morales
Outfeed/Infeed/Coldroom Driver
John Bird
Site Environmental Health and
Safety Manager
Henry Scheller
MDF Plant Manager
Ricardo Hillman
Site Manager
Amanda Hair
Chemical Technician
Hector Correa
Electric Control Specialist
James Isley
Control Room Operator
Jeff MacMillian (left)
Particleboard Production
Manager and Mark Wicker (right)
Particleboard Supervisor
Mike Ellington
MDF Production Manager
Faces of Flakeboard · 45
(top circle, top-down)
(bottom circle, top-down)
Scott Gregor
Plant Manager
Frank Babcock
Reliability Manager, originating
from St. Stephen
Steve Organ
Industrial Instrument Mechanic
Mark Hansen
Production Coordinator, FIBREX®/
Selco/Pegboard/Packaging
Darin Cleaves
Quality Manager
Mike Caswell
Resin Production Coordinator
David Moffat
Production Manager
Blaine Tapley
Electrical Maintenance
Coordinator
St. Stephen
New
Brunswick
Faces of Flakeboard · 46
Sault Ste. Marie
ONTARIO
(top circle, top-down)
Anthony DiGasparro
Customer Service and
Human Resource Manager
Bryan Primeau
Industrial Electrician
Mostafa Doroodian
Industrial Electrician
Rebecca McCaig
Lamination Technician
(bottom circle, top down)
Marcello Stefano
Lamination Technician
Kim Sacchetta
Financial Manager
Jeff Manson
Inside Sales
Robert Gauthier
Production Technician
Lloyd Hotchkiss
Plant Manager
Faces of Flakeboard · 47
Fort Mill
South
carolina
Eastern Regional Support Center
(top circle, top-down)
Tex Giddens
Project Manager
Christina Helms
AP Specialist
Gina Burns
AP Specialist
Susan Mersch
AP Lead
West Coast Regional Support Center
(bottom circle, top-down)
Tom Quesenberry
West Coast Manufacturing Manager
Wade Gregory
Western Sales Manager
Cathy Hummer
Design and Specification Manager
Bill Andersen
Marketing Manager, Special Products
Albany
oregon
Markham
ONTARIO
Canadian Regional Support
(top-down)
Chris Fowlis
Melamine Procurement Coordinator
Gillian Matthew
Marketing Coordinator
Jeff Shotbolt
Canadian National Sales Manager
Patoucha Giguere-Sutherland
Special Projects
Vince Chiarelli
IT Coordinator
Faces of Flakeboard · 49
Global Reporting Initiative (GRI)
3.1 Index
[GRI Index: 3.12]
GRI Indicator
Description
Page(s)
1.Strategy and Analysis
1.1
Statement from the most senior decision-maker of the organization.
3
2.Organizational Profile
2.1
Name of the organization.
4
2.2
Primary brands, products, and/or services.
4, 6
2.3
Operational structure of the organization, including main divisions, operating
6
companies, subsidiaries, and joint ventures.
2.4
Location of organization's headquarters.
4
2.5
Number of countries where the organization operates, and names of countries with
6
either major operations or that are specifically relevant to the sustainability issues
covered in the report.
2.6
Nature of ownership and legal form.
5
2.7
Markets served (including geographic breakdown, sectors served, and types of
5
customers/ beneficiaries).
2.8
Scale of the reporting organization.
4
2.9
Significant changes during the reporting period regarding size, structure or ownership.
5
2.10
Awards received in the reporting period.
10
3.Report Parameters
3.1
Reporting period (e.g., fiscal/calendar year) for information provided.
12
3.2
Date of most recent previous report (if any).
12
3.3
Reporting cycle (annual, biennial, etc.)
12
3.4
Contact point for questions regarding the report or its contents.
12
3.5
Process for defining report content.
8
3.6
Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint
12
ventures, suppliers).
3.7
State any specific limitations on the scope or boundary of the report.
12
3.8
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced
12
operations, and other entities that can significantly affect comparability from period to
period and/or between organizations.
50
Global Reporting Initiative (GRI) 3.1 Index
GRI Indicator
Description
Page(s)
3.10
Explanation of the effect of any re-statements of information provided in earlier reports,
12
and the reasons for such re-statement.
3.11
Significant changes from previous reporting periods in the scope, boundary, or
12
measurement methods applied in the report.
3.12
Table identifying the location of the Standard Disclosures in the report.
50
4.Governance, Commitments, And Engagement
4.1
Governance structure of the organization, including committees under the highest
11
governance body responsible for specific tasks, such as setting strategy or
organizational oversight.
4.2
Indicate whether the Chair of the highest governance body is also an executive officer.
11
4.3
For organizations that have a unitary board structure, state the number of members of
11
the highest governance body that are independent and/or non-executive members.
4.4
Mechanisms for shareholders and employees to provide recommendations or direction
11
to the highest governance body.
4.8
Internally developed statements of mission or values, codes of conduct, and principles
7
relevant to economic, environmental, and social performance and the status of their
implementation.
4.13
Members in associations (such as industry associations)and/or national /international
13
advocacy organizations
4.14
List of stakeholder groups engaged by the organization.
12
4.15
Basis for identification and selection of stakeholders with whom to engage.
12
5.Economic Performance Indicators
Economic Performance
EC1
Direct economic value generated and distributed, including revenues, operating
36, 39
costs, employee compensation, donations and other community investments, retained
earnings, and payments to capital providers and governments. (core*)
EC4
Significant financial performance received from government. (core)
12
Market Presence
EC6
Policy, Practice and Proportion of spending on locally-based suppliers at significant
32
locations of operation. (core)
*Core indicators are those indicators identified in the GRI Guidelines to be of interest to most stakeholders
and assumed to be material unless deemed otherwise on the basis of the GRI Reporting Principles.
Global Reporting Initiative (GRI) 3.1 Index · 51
Global Reporting Initiative (GRI) 3.1 Index
GRI Indicator
Description
Page(s)
6.Environmental Performance Indicators
Materials
EN1
Materials used by weight or volume. (core)
26
EN2
Percentage of materials used that are recycled input materials. (core)
26
EN3
Direct energy consumption by primary energy source. (core)
28
EN4
Indirect energy consumption by primary source. (core)
28
EN5
Energy saved due to conservation and efficiency improvements. (additional**)
28
EN7
Initiatives to reduce indirect energy consumption and reductions achieved. (additional)
28, 29
Energy
Emissions, Effluents, and Waste
EN16
Total direct and indirect greenhouse gas emissions by weight. (core)
30
EN18
Initiatives to reduce greenhouse gas emissions and reductions achieved. (additional)
28, 29
Products and Services
EN26
Initiatives to mitigate environmental impacts of products and services, and extent of
27
impact mitigation. (core)
Compliance
EN28
Monetary value of significant fines and total number of non-monetary sanctions for
24
noncompliance with environmental laws and regulations. (core)
EN29
Significant environmental impacts of transporting products and other goods and
34
materials used for the organization’s operations, and transporting members of the
workforce. (additional)
7.Labor Performance Indicators
Occupational Health and Safety
LA6
Percentage of workforce represented in a formal joint management-worker health and
21
safety committees that help monitor and advise on occupational health and safety
programs. (additional)
LA7
Rates of injury, occupational diseases, lost days, absenteeism and total number of work-
18, 19
related fatalities, by region and by gender. (core)
LA8
Educational, training, counselling, prevention, and risk-control programs in place to
22
assist workforce members, their families, or community members regarding serious
diseases. (core)
**Additional indicators are those indicators identified in the GRI Guidelines that represent emerging
practice or address topics that may be material to some organizations but not generally for a majority.
Global Reporting Initiative (GRI) 3.1 Index · 52
Global Reporting Initiative (GRI) 3.1 Index
GRI Indicator
Description
Page(s)
Training and Education
LA12
Percentage of employees receiving regular performance and career development
22
reviews, by gender. (additional)
8.Society Performance Indicators
Local Communities
SO1
Percentage of operations with implemented local community engagement, impact
36
assessments, and development programs. (core)
S08
Monetary value of significant fines and total number of non-monetary sanctions for
7
noncompliance with laws and regulations. (core)
9.Product Responsibility Indicators
Customer Health and Safety
PR4
Total number of incidents of non-compliance with regulations and voluntary codes
13
concerning product and service information and labeling, by type of outcomes.
(additional)
Product and Service Labelling
PR9
Monetary value of significant fines for noncompliance with laws and regulations
13
concerning the provision and use of products and services. (core)
TRC Environmental Corporation (TRC) was retained to assist Flakeboard with the development of this
sustainability report. TRC served as a consultant to the Sustainability Leadership Team, facilitating the
development of sustainability strategy, assessment of materiality, analysis of sustainability metrics and
development of targets and objectives.
Global Reporting Initiative (GRI) 3.1 Index · 53