Three Generations of Sustainability

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Table of Contents
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Three Generations
of Sustainability
Sustainability Report
www.tolko.com
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Tolko Sustainability Report
Table of Contents
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VISION
Tolko will be a top decile forest products company providing strong
customer value, while operating sustainably and achieving world
class performance.
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Message from the CEO
With Tolko’s transition into our third generation of leadership there is much to reflect
on and celebrate. We have largely been successful as a company due to three factors:
the dedication of our people; the adherence to our core values; and the commitment
to continual improvement.
These factors are strongly evident in our sustainability performance over the years.
We are proud of what we have accomplished. We also realize that the status quo is
never good enough—we never stop learning, adapting and setting more challenging
goals. To that end we have recently established a new corporate value of “Safety” and
have developed a new corporate vision statement to guide us as a company moving
forward.
Brad Thorlakson, President & CEO
This, our third sustainability report, highlights achievements we have made to maintain
our social license to operate. On each page, you will see the multi-generational progress
we have made since forming in 1956 to fulfill our economic, environmental and social
responsibilities. We pause in this report to celebrate our efforts, and then roll up our
sleeves in our commitment to get even better.
Brad Thorlakson, President & CEO
Tolko Industries Ltd.
Al, Doug & John Thorlakson
Harold Thorlakson
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Tolko Sustainability Report
Environmental Policy
Tolko is committed to the well-being of future generations through responsible
environmental performance. This is a key value of the Company. Our ability to operate
the business, satisfy customers and other stakeholders and build sustainable economic
success is increasingly dependent on our environmental performance. Our commitment
applies to all aspects of our business...
Forest Management Principles
Tolko is committed to professional and sustainable forest management. Our ability
to provide raw materials to our manufacturing facilities depends on managing forest
resources and respecting all forest values...
Aboriginal Policy
Tolko is committed to work with Aboriginal communities and individuals on the basis of
mutual understanding, respect and trust, as well as recognition of and sensitivity to the
different cultural values and traditions of each community in which Tolko operates...
Full policies found at tolko.com/sustainability
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Table of Contents
Tolko Vision . ......................................................................................................................... 2
Message from CEO ............................................................................................................... 3
Tolko Policies......................................................................................................................... 4
Table of Contents . ................................................................................................................ 5
Harvesting, Regenerating Promptly . .................................................................................... 6
Welcoming Independent Scrutiny ........................................................................................ 7
Providing a Sustainable Choice . ........................................................................................... 8
Reduce, Recover & Recycle .................................................................................................. 9
Safety . ................................................................................................................................ 10
Partners with our Workforce .............................................................................................. 11
Partnering with our Communities ...................................................................................... 12
Respectng Aboriginal Peoples ............................................................................................ 13
Our Customers . .................................................................................................................. 14
Tolko Locations ................................................................................................................... 15
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Tolko Sustainability Report
Harvesting,
Regenerating Promptly
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“Tolko is committed to professional and sustainable forest management. Our ability
to provide raw materials to our manufacturing facilities depends on managing forest
resources and respecting all forest values ”. – excerpt Tolko’s Forest Management Principles
Evolution of Harvesting
MPB Reforestation
Illegal logging is a major global concern, being a
key contributor to deforestation around the world.
Thankfully, Canada has regulatory and enforcement
protocols that virtually eliminates illegal harvesting.
Tolko is investing in new technologies and processes
to ensure that our harvesting activities are in full
legal compliance. At our High Level operation, the
woodlands team has adopted Global Positioning
Systems (GPS) in all feller bunchers and front line
harvesting equipment. Operators monitor a computer
screen to determine block boundaries instead of
watching for ribbons or painted trees. In addition
to the increased accuracy, significantly increased
productivity has been realized. This is just an example
of the use of new technology to continually improve
our management of the forest resources on which
our business depends.
The Mountain Pine Beetle (Dendroctonus ponderosae)
outbreak in British Columbia and Alberta has been
referenced as the largest natural disaster in Canadian
history. In fact, the infestation is estimated to have
destroyed 675 million cubic metres of timber and
infested an area five times the size of Vancouver Island.
Over the past years Tolko’s BC manufacturing facilities
have shifted focus to recover as much of this dead
resource as possible. Although many people see the
wood moving through our plants daily, the ongoing
large scale reforestation effort remains largely unknown
to the general public. To date, within the Mountain Pine
Beetle outbreak area, Tolko’s BC Divisions have planted
95 million seedlings. Over the next few years, surveys
will be completed to ensure that these seedlings growing
on approximately 164,000 hectares meet legislated
stocking requirements.
Moresby Consulting
The Mountain Pine Beetle outbreak has detrimentally
affected our forests, however, Tolko has worked hard
to salvage the fibre and return these areas back to
productivity. These newly restored forests will have
long lasting benefits to future generations as they bind
carbon, filter rainwater, and provide habitat for many
species of wildlife.
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Table of Contents
Welcoming
Independent Scrutiny
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Professional and sustainable forest management ensures that the forests we manage
today will contribute to future generations and the communities where we operate.
foReSTRy CeRTifiCaTion
Canadian boReal foReST
The public owns the forest lands in Canada that Tolko aGrEEMEnT (CBFa)
is entrusted to manage. This is not an entitlement, but
a responsibility. as such, we take seriously the duty to
provide open and transparent communication of our
forest management performance. This has evolved to
independent scrutiny through third party assessments,
which is accomplished through Sustainable Forest
Management (SFM) certification. We are proud to
have all of our woodlands certified to CSa Z809 Canada’s national SFM standard. In addition, all of our
mills and woodlands are certified to the Programme
for the Endorsement of Forest Certification (PEFC)
Chain of Custody standard to ensure that all our raw
fibre is sourced from legal and authorized sources.
3Rs of Wood
Tolko partners with industry and government to raise
awareness of the environmental benefits of using
wood. after all, wood is: renewable, reusable, and
Recyclable
The public’s interest in Canada’s forests is partly
protected by the oversight of Environmental nonGovernmental Organizations (EnGOs). Their strong
concern for ecological values has often resulted in
significant conflict over the years with the forest industry.
Today that relationship is changing. Tolko is proud to be
part of the development of a historic agreement, signed
in 2010, between the twenty-one member companies
of the Forest Products association of Canada (FPaC) and
nine leading EnGOs. This agreement is a commitment
by both parties to developing a new paradigm of
collaboration in order to jointly promote the goals of
forest conservation and forest sector competitiveness.
Both parties acknowledge that the involvement
and support of governments and aboriginals will be
required to accomplish these objectives and the efforts
to engage these groups are well underway.
CSa foReST CeRTifiCaTion
Over 60 million ha (150 million acres) of forests in Canada are certified to the
Canadian Standard association (CSa) Sustainable Forest Management (SFM)
standard. In fact, the CSa Z809 standard is the world’s largest national SFM standard.
2010 CanadIan BOrEaL FOrEST aGrEEMEnT
2005 PEFC ChaIn OF CuSTOdy
2002 CSa SuSTaInaBLE FOrEST ManaGEMEnT
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Tolko Sustainability Report
Providing a Sustainable Choice
“Tolko is committed to the well-being of future generations through
responsible environmental performance.” – excerpt Tolko’s Environmental Policy
Reduced reliance on
non-renewable energy
Tolko continues to be proactive in reducing its use of
fossil fuels using a combination of increased energy
efficiency and substitution with renewable biomass.
Tolko’s operating lumber, plywood and veneer
operations have reduced their consumption of fossil
fuels by over 30% since 2003 despite increasing
production by over 15% in the same timeframe.
Tolko’s OSB facilities all have biomass energy systems
and derive nearly all of their manufacturing heat
requirements from renewable fuel.
In 2010, Tolko’s kraft paper operation used 20% less
fossil fuel per tonne of paper production compared
to 2003. The federal government incentive Pulp &
Paper Green Transformation Program will reduce
greenhouse gas emissions by 45,100 tonnes CO2 over
the next several years.
Wood’s natural properties
Wood naturally stores both solar energy and CO2 from
the atmosphere. In fact wood is composed of
approximately 50% carbon by dry weight.
When wood rots or burns in a wildfire, this carbon is
released into the atmosphere, but when sustainable
forestry is practiced, new trees will collect CO2
throughout their growth cycle. Because this release
and recapture of carbon in the atmosphere takes place
within one average human lifetime, it is considered
neutral in its impact on global warming.
Tolko’s OSB facilities all have biomass energy systems
When wood is used for wood products, the carbon is
stored or sequestered so long as that product is in use.
Life cycle assessments show that buildings constructed
from wood have a 26% lower carbon footprint compared
to those constructed from steel and 31% lower than
those constructed from concrete.
Armstrong Cogen Plant started operation in 2001
Electricity Production
In 2010, Tolko produced a total of 293,791 MWh of
electricity at its three cogeneration facilities. That is
enough electricity to power 22,600 average homes.
Over 95% of the fuel used in these operations is biomass
byproducts from sustainable forest product operations.
Quest Wood Beehive Burner decommissioned in 2009
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Reduce, Recover & Recycle
Committed to maximizing utilization of our natural resources
Tolko Co-Products
Value Added Log Sorting
Tolko’s co-products have come a long way since being
considered a waste product and disposed of in burners.
Today they are recognized as a core business. The coproducts are the chips, sawdust, shavings and dark
hog (bark) produced at a sawmill or plywood plant.
These products are now used internally for energy or
sold externally for pulp, paper, energy, animal bedding
and landscaping material.
Maximizing recovery and value to meet our customer’s
demands is part of Tolko’s commitment to sustainability.
Tolko’s Lavington sort yard is aligning the log availability
in the Okanagan with various customer needs. The
log loads are spread, graded and bucked to eliminate
excessive waste and provide opportunities to maximize
the value. This allows our customers to produce a
variety of value-added products, which include house
building logs, guitar wood frames, power poles, beam
wood and timbers and pilings.
The co-products are shipped to local pulp and paper
mills or exported to the US and Japan for pulp, paper
or energy production.
Our ultimate goal is to maximize utilization of the tree
with minimal impact to the environment. We are
currently working to use all the volume harvested so
that nothing is considered waste and burnt with no
value.
Lavington, BC sort yard
Electronics recycled, not dumped.
Tolko keeps over 100 out-dated or broken computers
and many other electronic components out of landfills
each year.
Kraft Paper cement sacks
Over 60% of Tolko’s Manitoba Kraft paper is used to
make cement sacks. Paper cement sacks provide a
cost effective, environmentally friendly, high strength
solution to building in many developing nations around
the world. Over 37 countries use Tolko paper in sacks
for building materials
Lakeview, BC co-proDucts
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Tolko Sustainability Report
Safety
“Tolko is committed to an incident-free workplace where safety is the top priority.” – exerpt Tolko’s Safety Policy
Safety Focus Elevated
Steep Slope Logging
Safety has always been a priority at Tolko and we have
had relatively strong safety performance but after
recent declining results we are renewing attention
and dedicating new resources to its improvement.
Safety became one of Tolko’s core values: “Our
employees are our most valuable resource and
nothing is more important than their personal safety”.
Tolko has also brought employees together from each
of the operations and departments to form a new
“Safety Peer Group”. Working as a team this group
is developing and continually striving to grow Tolko’s
safety culture, and performance. Tolko will strive to
make everybody a leader in safety.
Tolko continues to work with the BC Forest Safety Council
and WorkSafe BC to ensure that we are continually
improving our efforts to protect forest workers, while
steep slope logging.
WorkSafeBC regulations specific to forestry operations
underwent many changes in 2008 including limitations
on steep slope operations and procedures.
As a result, we have changed the way we approach
steep slope logging. This includes detailed mapping at
the planning stages, block specific safe work procedures
and the introduction of new equipment specifically
designed for steeper slopes (such as high lead yarding
systems).
Okanagan Region uses spyder as one solution to the Steep Slope issue
“Our employees are our most valuable resource and nothing is more important than
their personal safety.” – Tolko Safety Value
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Partners with our Workforce
“Everyone is encouraged to propose new ideas and to take ownership for their work.
Individual initiative and innovation are valued.” – excerpt Tolko’s Value of Progressiveness
Quality People
Strong Values
Tolko employs over 3000 people directly through our
operations, offices, and woodlands across Western
Canada. Thousands more work for us as contractors,
or provide services and products as vendors. We are
pleased to provide income for so many families and
strive to ensure safe, sustainable employment.
A recent workshop for the Human Resources Team
involved several brainstorming sessions including
one titled “I LOVE working at Tolko because”:
Employee responses closely matched Tolko’s values—
Safety, Respect, Progressiveness, Integrity, Open
Communication, and Profit. This is a good indicator
that the values are more than simply words but are
very much alive at Tolko. Here are some of the ways the
sentence was completed:
Time and again, our workforce steps up to the challenge
at hand and proves that our quality people set us
apart. Our goal is to attract and retain the best people
in the right jobs, and then empower them to fulfill
their potential. Diversity and providing development
opportunities for all employees help us create an
environment of mutual respect, encouragement and
teamwork.
Health and Wellness
In 2010, we revitalized our Wellness Program to
promote everyone to “get healthy”. As part of this
focus, we share information on community programs
and services, provide access to free online employee
health assessments, and educate employees on
key areas of health risk. We also have an Employee
and Family Assistance Program available to every
employee to provide confidential counseling and
support when it is needed the most.
• Progressive company committed to continuous
improvement
•Rewarding and challenging work with opportunities
for career growth or advancement
• Consistent, quality products AND environmental
commitment
• Strong leadership, family values and community
involvement
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Tolko Sustainability Report
Partnering with our Communities
Forest lands managed by Tolko make an important contribution to the quality of
life for many communities by providing a wide range of environmental, social and
economic benefits. – excerpt Tolko’s Forest Management Principles
Fire Preparedness
Forest Education
Most of Tolko’s operations are located in rural, forested
areas. Ask anyone who lives in these communities if
forest fires are an imminent risk and they will likely say
“yes”. Tolko and its employees work with communities
as part of fire suppression and prevention processes.
Tolko has actively supported Forest Education programs
across the company for years. We participate in public
presentations in the schools, build partnerships with other
local licensees, school districts and provincial government
agencies to deliver a structured program through the use
of a forest educator.
For example, Tolko is to “selectively harvest” Douglas
Fir stands close to Williams Lake to create a fuel
management area of approximately 100 metres width
centered on planned roads. The principle is that any
fire will slow down in the selectively logged area and
the combination of the road and the fuel management
area will effectively stop any fire. Support has been
received from the local interface committee because
the plan addresses recreational use, habitat, aesthetics,
plus fire prevention.
Nicola Thompson Fraser PAG members
HABITAT FOR HUMANITY
Tolko has partnered with Habitat for Humanity since
2006, when a team of Tolko employees travelled to take
part in the international associations rebuild efforts near
New Orleans following Hurricane Katrina.
This past year Tolko donated products to help Habitat
for Humanity Kelowna build two duplex homes for lowincome working families with children.
TN Forester leads an elementary class orientation near Kamloops, BC
Public Advisory Groups (PAGs)
PAGs have been, and continue to be, a key community
partner. They help us develop and evolve our
Sustainable Forest Management (SFM) Plans as a metric
and serve to understand how the public perceives our
forest management and practices. In 2010, the Nicola
Thompson Fraser PAG was recognized by the National
CSA SFM User Group Chairman’s award for their
leadership and personal commitment. It is groups such
as this PAG that help us deliver on our sustainability
commitments.
Second Habitat for Humanity duplex home built in Kelowna, BC
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Respecting Aboriginal Peoples
“Tolko is committed to work with aboriginal communities and individuals on the basis
of mutual understanding, respect and trust, as well as recognition of and sensitivity
to the different cultural values and traditions of each community in which Tolko
operates.” – excerpt Tolko’s Aboriginal Policy
Aboriginal Partnerships
Tolko has successfully built meaningful partnerships
with our local aboriginal communities based on a
foundation of respect and an understanding that both
parties will continually work to grow and evolve the
relationship. Thompson Nicola Regional Woodlands
has such a partnership with Tk’emlups Indian Band
(TIB) where we have developed a process to explore
new business opportunities between the two parties
from evolving changes to provincial forest policies.
This relationship is built on open and respectful
communication and the sharing of our forest
management practices and strategies. Our unique
partnership results in a better understanding of the
values and beliefs of our local aboriginal communities.
Meadow Lake OSB Business
Partnership with Sakaw Askiy
In the fall of 2010, Meadow Lake OSB and partners
created Sakaw Askiy Management Inc. Sakaw Askiy
(meaning forest land in Cree) is a unique partnership
formed to manage the 3.3 million hectare Prince
Albert Forest Management Area in Saskatchewan. The
shareholders include two First Nations, Agency Chiefs
Tribal Council and Montreal Lake Cree Nation, as well
as six forest companies, Meadow Lake OSB, Carrier
Forest Products, Edgewood Forest Products, L&M Forest
Products, Meadow Lake Mechanical Pulp and Norsask.
Each shareholder received a volume allocation from the
Prince Albert FMA. MLOSB secured 600,000 m3 of wood
supply and enhanced relationships with the First Nations
partners.
Meadow Lake, Saskatchewan
Business Principles:
• Ensure effective communication on forest
management activities that involve aboriginal areas
of interest
• Provide employment and contract opportunities
to aboriginal people consistent with Tolko’s “Equal
Employment Opportunity” policy
• Conduct our business in a manner that will be
supportive of ventures that make sound business
sense and are operated for the mutual benefit of all
parties
• Establish and maintain a participative process
to identify opportunities and address or resolve
conflicts that may arise.
Tolko partners with Tk’emlups Indian Band (TIB)
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Tolko Sustainability Report
Our Customers
Tolko is a customer focused Canadian wood products producer
Customer focused
Build Green with Tolko
Reaching around the world, “Tolko is a customer focused
Canadian wood products producer. Tolko recognizes
the importance of having diversified wood markets
and is adapting to the dynamic global economy. Global
trade partners, such as China, are playing a significant
role in the recovery of the Canadian lumber industry.
Through marketing efforts from Industry and Canada
Wood, China is being shown the many advantages of
using wood products in housing construction.
In many ways, wood building materials are better for
the environment. In fact, Life Cycle Assessment studies
indicate wood is one of the greenest building materials
with less potential to contribute to global warming.
One of the key advantages of wood products use
is its seismic stability. Wood has excellent ductility,
connectivity and strength-to-weight ratio, making
woodframe construction less susceptible to the impact
of earthquakes. These advantages were promoted
for public wood-frame facilities in China post the
Wenchuan earthquake in 2008. The governments of
Canada and British Columbia collaborated in promoting
the use of 100% Canadian structural lumber in an
elderly care center, a primary school and a school for
the disabled. Tolko was integral in providing structural
lumber products for these projects.
A few good reasons to build with Tolko building
products:
• Wood is the only major building material that is both
renewable and sustainable over the long term.
• Wood building materials are energy efficient; require
less energy to manufacture, transport, construct and
maintain.
• Wood provides superior insulating compared to
concrete and steel and wood frame structures are
easy to insulate.
• Wood frame buildings are durable and adaptable and
provide structures with long service life.
2010 Olympic Oval in Richmond, BC
Olympic Oval
Tolko’s Creekside Division’s 2x4 A-Grade was used in the
Beetle wood construction of the roof panels for the 2010
Olympic Oval in Richmond, BC. The new speed skating
facility won the Award for Sports or Leisure Structures
at the Institution of Structural Engineers 2009 Structural
Awards Gala.
Dujiangyan Ziang’e Primary School, China
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TOLKO LOCATIONS
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C a n a d a
U n i t e d
S t a t e s
o f
A m e r i c a
ENERGY
biomass power
armstrong
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Tolko Sustainability Report
We welcome your comments on this
report of our sustainability performance.
Sustainability Corporate
Services Department
John Dunford, R.P.F.
Manager, Forestry and Sustainability
Tel: 250.578.7212
E-mail: [email protected]
Bob Fleet, R.P.F.
Vice President, Environment & Forestry
Tel: 250.545.4411
E-mail: [email protected]
Please write us at:
Tolko Industries Ltd.
Box 39, 3000 28th Street
Vernon, British Columbia
Canada V1T 6M1
Tel: 250.545.4411
Fax: 250.550.2550
Or visit our website:
www.tolko.com/sustainability
Sustainability Report 2010
Printed in Canada