Counting what matters - OneFortyOne Annual Review 2020
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At OneFortyOne we’re OneFortyOne acknowledges the Traditional Custodians of Country throughout Australia and their deep connections to land, water, and community. We pay dedicated to the ultimate our respect to Elders past and present and extend that respect to all First Nations people today. Reconciliation is an ongoing journey for OneFortyOne renewable – timber. and we recognise that meaningful change takes consistent effort. We are committed to strengthening our relationships with First Nations people and being guided by their knowledge of and connection to the Our forests and mills in land on which we live, work, and learn. In Aotearoa New Zealand, Māori communities have a strong spiritual connection between people and the land – the wellbeing of one sustains the wellbeing of the other. We strive to work closely in partnership with tangata whenua (people of the land/region), iwi Australia and New Zealand produce wood products and hapū to be responsible intergenerational kaitiaki (stewards/guardians) of the land where our forests grow. Contents that are used daily. 03 Introduction 04 Year at a glance OneFortyOne harvests and plants millions The Annual Review 2020 is a collection of our 08 Chairman’s Letter of trees every year. These trees form our stories from across the business throughout 175,900 hectares of forests, including the past year. 10 CEO Report thousands of hectares of conservation land It’s the projects we’ve undertaken, the progress that native species of plants and animals call Caring for our people we’ve made, and the things we’re still working home. Our forests also contain important on – a reflection on the year that’s been and 12 Creating and nurturing leaders at every level historical and cultural sites as well as artefacts an opportunity to count what matters. 13 Opportunities for learning leadership skills that we are committed to protecting. 14 Driving diversity across the organisation Our Jubilee and Kaituna Sawmills manufacture 15 Proud to be employing highly skilled timber products such as structural timber, essential workers decking and posts, which are used to build homes, fences, vigneron posts and even 16 Creating a culture of safety at Kaituna Sawmill chicken coops. OneFortyOne operations are an integral part of Working with our industry our communities. We are major employers in 22 Buy Aussie timber first the regions where we work and we’re proud to invest in supporting our local environment and Striving for better local people. 24 Drones are revolutionising weed management 26 Measuring timber quality without damaging trees 27 Helpful fungi promote tree growth and disease resilience 28 Addressing climate change with carbon farming Serving our communities 30 Transforming lives on the Limestone Coast 34 Connections and community Understanding our environment 40 Our fire readiness 44 Our forest certifications 46 Tracking our carbon footprint 49 Operational highlights 52 Leadership Team 54 Board of Directors 55 Corporate Governance 57 Home Safe & Well 58 Modern Slavery OneFortyOne | 3
Year at a glance Year at a glance OneFortyOne’s Annual Review 2020 Counting What Matters is working group, and a specific Green Triangle Nursery Plan. a summary of our operational, environmental and community COVID-safe measures to slow highlights over the calendar year. the spread included designated carpooling and working groups, employees bringing In 2020 we focused on: We hope these stories offer a 2020 also highlighted how their own food to site, eating small window into what the resilient we are as a team, outdoors, enhanced cleaning, • The wellbeing of our people forest and timber industries finding solutions and moving and constant monitoring. In • Growing, harvesting and have to offer. forward. Australia some of our skilled manufacturing timber Burmese contractors stepped The strength of people Our business begins in up, breaking down language • Customer service nurseries. By March 2020 we 2020 has taught us to expect barriers to help interpret the needed to work in a COVID- • Supporting the communities the unexpected and to reassess new requirements for their safe environment, so we where we live and work things we take for granted. colleagues. created a COVID response “Our team were impressively resilient,” says Craig Torney, Nursery Manager. “They took all the safety measures seriously and adapted again and again. Thanks to them, we were able to continue working almost completely uninterrupted.” In total, 1.5 million seedlings were despatched to other forest owners, 5.5 million to our own Green Triangle Forests. We “ Our team were impressively resilient. Another driver focused project Those working from home on is the Portland-Nelson Road both sides of the Tasman could have 2.35 million cuttings set They took all the safety measures Weighbridge Integration. Every access all services required, aside for 2021 planting. Focus on safety seriously and adapted again and again. truck delivering export logs and we found remote working to our Portland export facility resulted in high autonomy and Thanks to them, we were able to must weigh in. productivity. Our Green Triangle operations are strong contributors to continue working almost completely Previously, a driver was required Mark Jones, Head of the local economy. The uninterrupted.” to disembark their truck and Technology described the forestry supply chain from enter data into the iWEIGH experience, “We’re often planting, tree care, harvest, Weighbridge system. The focused on cutting-edge transportation through to Craig Torney integration project involved technology, but during 2020 manufacturing is complex, Nursery Manager installation of registration we had to concentrate on with many people involved. reader technology to identify the flexibility of day-to-day We employ over 390 people the truck and load, and operational work, and it’s directly with an additional “Our people are generating In response to fatigue-related automatically supply load helped our people develop contractor workforce. better ways to work safer with vehicle incidents in the Green information. Drivers no longer new leadership styles.” greater efficiency, higher yields Triangle, we decided that all need to exit their vehicles on “The quiet of the forest doesn’t Our mill employees continued and lower costs. Like all good heavy vehicles hauling log and the weighbridge, meaning less tell the full story,” says Mick to work on-site throughout the contemporary businesses, we chip would be fitted with life- time taken, less errors, and a Theobald, General Manager lockdowns, quickly adapting are researching automation and saving technology. safer process. Green Triangle Forests. to COVID-safe measures, and accounting for our footprint. Guardian, by Seeing Machines, Working in new ways impressing everyone with their “We actively protect a diverse There is a lot to be proud of.” is a real-time driver fatigue and dedication. range of ecosystems, support Thanks to our Technology “We are driven to ensure that distraction solution combining community recreation, and Team, our operations every person comes to work in-cab intervention (alarm and spend significant time and continued during the and goes Home Safe and Well seat vibration) with support and energy preventing forest fires.” lockdowns of 2020. We had every day and in 2020 had analytics services. The system is several initiatives to improve scientifically proven to reduce many people working remotely, our safety performance.” the occurrence of driver fatigue which required a huge effort to events by 90%. get us all online and upskilled. 4 | OneFortyOne Annual Review 2020 OneFortyOne | 5
Year at a glance 30,000m3 In Australia, the Jubilee Sawmill increased $16m $16 million invested in two non-stop total sales volume by 30,000m3 continuous drying kilns Kaituna Sawmill operational highlights Jan - Dec 2020 (*) Jan - Dec 2019 Variance Log Volume (m3) 116,182 106,804 9% Average Sawmill Production Rate (m3/hour) 37.2 34.3 18% Total Sales Volume (m3) 67,196 57,490 17% Earnings Before Interest, Taxes, Depreciation, $4,681,490 $1,006,843 465% and Amortisation (NZD) (*) Excluded April 2020 where the mill was shut due to COVID - the remaining 11 months have been annualised Jubilee's Continuous Drying Kiln Producing renewable This significantly dropped Months later, with the team In New Zealand, we donated resources the unit cost to manufacture. now back on site, the project time and money toward the Importantly, the mill’s financial is due for completion in 2021. construction of the Great Taste During 2020, the teams at performance didn’t come at Trail, which goes through our Jubilee and Kaituna Sawmills “These kilns will give us more the cost of wellbeing. estate. We also sponsored achieved outstanding business consistent, higher-grade the Young Enterprise Scheme performance. Both Jubilee and Overall engagement in health timber,” says Paul Hartung, for local students, as well as a Kaituna exceeded business and safety across all levels of General Manager Jubilee range of educational, sporting performance targets despite the business improved, and Sawmill. “They do so using and environmental causes, each mill experiencing shut Kaituna completed 12 months less energy and with less including the Kea Conservation down periods. Lost Time Injury free. downtime, which makes them Trust, Iron Duke Sea Scouts, an absolute winner for both In Australia, the Jubilee Sawmill Investing in infrastructure the Tasman Rugby Union Club quality and efficiency.” increased total sales volume by and first aid training for Future At Jubilee Sawmill we have 30,000m3 – our highest sales The importance of Foresters. invested $16 million into two ever. Contributing to this was community non-stop continuous drying a combination of increased kilns to replace the old batch With many sports and DIY projects during lockdown, kilns. Each new kiln will be community events cancelled, housing stimulus packages, and 81 metres long, 12 metres supporting local initiatives less imported products coming wide and three metres high. was challenging in 2020. We into Australia. Together the kilns will dry got creative, adapting our Kaituna’s EBITDA (Earnings 500,000 cubic metres of Community Grants with Stand Before Interest, Taxes, timber annually, fuelled by Like Stone to fund projects that Depreciation, and Amortisation) sawdust and wood waste. were ready to go and would result between 2019 and 2020 have an immediate impact. In March 2020, the New increased by $3.68m NZD Zealand based project team Through our partnership with with outstanding performance had been on-site at the Nature Glenelg Trust, we across all key drivers. The Jubilee Sawmill preparing supported volunteers at Mt improvement in performance for construction, but the Burr Swamp to plant 3,000 is largely based on better introduction of travel seedlings around the main production rates across the site restrictions meant the team wetland, and developed whilst keeping costs similar. had to abruptly pack up and a nearby site to facilitate return home. Boandik cultural learning. 6 | OneFortyOne Annual Review 2020 OneFortyOne | 7
Chairman’s Letter We are proud of our As a closing comment on the achievements in maintaining changes, we acknowledge business-as-usual throughout Linda Sewell for her dedication a period of upheaval. and leadership of OneFortyOne Customers could rely on us, for nearly eight years, and homes were built, and people Lees Seymour who led the were employed. operations in New Zealand. Their contributions will endure OneFortyOne has seasoned and we wish them the very best professionals across all areas in their new endeavours. of the business and has a vibrant succession plan. We continue to be proud of This proved valuable as we the story our company has navigated changes within the to tell regarding sustainability. leadership team during the Inside this review we share year. Andy Giles Knopp was more about our work to promoted to Chief Executive understand our carbon Officer of OneFortyOne footprint and our carbon in September 2020, and a farming pilot projects. Our smooth, successful transition forests have been recertified, has occurred thanks to Andy, providing our shareholders the Executive Leadership and customers with certainty Team, and our Board, all that OneFortyOne products working together. are grown and processed responsibly. In February 2021, we also welcomed the promotions of On behalf of the Board of Anita Drake to Chief Financial Directors, I would like to Officer and Brent Guild to extend a sincere thanks to Executive General Manager Andy Giles Knopp and the New Zealand. OneFortyOne Leadership Team. They have worked OneFortyOne’s Executive extremely hard under trying Leadership Team are: circumstances and navigated • Chief Executive Officer – the company with confidence Chairman’s The theme of this year’s COVID-19 tested us, and Andy Giles Knopp and transparency. As a result, report is Counting What continues to do so. Border we have positive stories to tell • Chief Financial Officer – Matters and these stories closures took a toll on our in this Annual Review. Anita Drake touch upon just a few of the people based in the Green Letter I trust you will find this Annual important aspects of what Triangle, but we responded to • Chief People Officer – Review informative and we matters to OneFortyOne. this with transparent decision Peter Brydon are able to provide insight After an extremely making and by advocating for • Executive General Manager, into some of the many challenging year like 2020, we individual employees affected Australia – Cameron aspects which are important feel fortunate that we are still by border restrictions. We MacDonald to OneFortyOne. As we move able to reflect on the positives did this while respecting through the new year, On behalf of OneFortyOne’s Board that emerged from the year government policy, and by • Executive General Manager, I hope that 2021 brings added and to identify where we need ensuring our business and of Directors, I welcome you to the to continue to make progress. industry operated safely and New Zealand – Brent Guild certainty, unity, and wellbeing for all. company’s Annual Review 2020. Safety has always been our could be trusted in a COVID- Leadership team transition safe environment. is a critical moment for any Sincerely, first priority at OneFortyOne. company. Through thoughtful As the Review will share, our people We operate on the mantra Not all businesses were able hiring and planning over the of “Home Safe and Well,” to operate in a business- have remained focused on our core which reflects our passion for as-usual manner during years, we were pleased we were able to make these businesses throughout 2020. Even the wellbeing of our people, COVID-19. However, soon appointments from within the with the external challenges of the our contractors, and our partners. This is at the heart after the initial shock of the announcement of the business. The Executive Lead Team has the full support of John S. Gilleland year, our employees have served our of OneFortyOne’s wellbeing pandemic, OneFortyOne myself and the OneFortyOne Chairman customers at the highest level, fulfilled statement, which was developed to ensure was in a position to respond. Our products were needed Board of Directors. March 2021 our environmental responsibilities and we hold ourselves and each as people found sanctuary in supported our communities. other to account when it building homes, DIY projects, comes to safety. and renovation. 8 | OneFortyOne Annual Review 2020 OneFortyOne | 9
CEO Report “Counting what matters is about 2021 an exciting year ahead Our front cover features Jay Ropitini, Sawing Technician our people taking responsibility for 2020 was a year in which we at Jubilee Sawmill. The photo learnt a great deal about our leadership right across the business. team and our business. 2021 was taken at 6am after an 8-hour shift and embodies We believe that good ideas can come will be about how we use this the spirit of the team through knowledge to grow. from anywhere and the experts are 2020. Dedicated professionals In 2021 we want to: focused on delivering their the best people to see those concepts very best. 1. achieve industry top quartile come to fruition. This shines through benchmark for wellbeing Thank you to our customers, the stories in the 2020 Annual Review.” to ensure that everyone contractors, communities, goes home safe and well and stakeholders for your Andy Giles-Knopp every day continued support throughout Chief Executive Officer 2020. Our valued relationships 2. drive operational excellence have contributed to our results, across all aspects of the safely and sustainably achieved business and underpin The financial results were The results were positive during extraordinary times. value creation with stronger mixed through the period. particularly through an business performance; and uncertain and disrupted In the first half of the year year. Our performance only 3. continue to build an COVID-19 had the impact represents the hard work, integrated organisation of closing markets as passion, and commitment that the team feel proud to governments dealt with the of everyone in the business. belong to and can thrive immediate health risks of the and realise their potential. pandemic. The China markets My reflection of the year closed through the first quarter is one of immense pride, Andy Giles-Knopp soon followed by the closure pride in the entire team who Chief Executive Officer of our New Zealand operations demonstrated enormous care March 2021 through Stage 4 restrictions in and focus on doing the right CEO Report the second quarter. thing throughout the year. We had prepared for an uncertain economic slowdown and although the first half was weaker than planned, the reality of the 2020 was a year of change. A year of The end of year decision 2020 performance second half of the year was to suspend timber exports quite the reverse. change for the globe, the forest and between Australia and Counting What Matters is about our people taking Through the second half timber industries, and for OneFortyOne. China was very difficult responsibility for leadership we have seen buoyant for our business and the right across the business. markets in both Australia Green Triangle supply chain. We believe that good ideas and New Zealand which We saw the conclusion of I am hugely excited about Through 2021 it will be can come from anywhere have underpinned a strong an important chapter in what we will achieve with such important that we collaborate and the experts are the best recovery. Operations in OneFortyOne’s history as Linda a talented and capable team. to solve the challenges left people to see those concepts forests and mills have been Sewell and Lees Seymour by these events for both the A range of external factors come to fruition. This shines working at capacity and departed from their roles of community and the sector. with long term implications through the stories in the results have been strong. Chief Executive Officer and affected our industry The reality of the COVID-19 2020 Annual Review. Executive General Manager Although there has been throughout the year. The pandemic hit us in March, and New Zealand, respectively. Home Safe and Well is non- positive momentum across 2019/2020 Australian summer we acted quickly to ensure negotiable. From a safety the domestic markets and the It is a great privilege to bushfires had a devastating that OneFortyOne was in a perspective, our goal is to outlook is optimistic through have been appointed impact on lives, communities, strong position to manage achieve industry top quartile 2021, we concluded the Chief Executive Officer of the environment, and through any uncertainties benchmark. year with the disappointing OneFortyOne. I want to jobs. The loss of the forest ahead. This work put us in acknowledge my predecessor, plantation areas in New South good stead throughout the The safety highlight through reality of the trade suspension Linda, for her leadership and Wales sent waves through year as we saw our operations 2020 was performance at the between Australia and China. commitment, setting up the industry. The implications close in New Zealand in the Kaituna Sawmill. The team has The impact on the cessation OneFortyOne for the future. for future timber supply are second quarter and then in made incredible gains with a of timber trade to China has The change in leadership marks significant and propel us South Australia in the final renewed focus on wellbeing had a wide-ranging impact the beginning of an exciting further to achieving the goal of quarter of the year. as well as empowering a on the supply chain, from new time for the company. planting the right trees in the highly engaged team to do our harvest and haulage right places. We will only be the right things. The results contractors to the operations able to meet future demand have been outstanding and at the Port of Portland. and support existing industries in January 2021 the team if we grow more trees. recorded 12 months lost time injury free. 10 | OneFortyOne Annual Review 2020 OneFortyOne | 11
Caring for our people Creating and nurturing leaders at every level Developing leadership skills and encouraging inclusion are vital ways to create a more dynamic and successful organisation. Our goal is to make OneFortyOne a great place to work. To achieve this, we have four objectives. 1. 2. 3. 4. Opportunities Build high performance culture and outstanding Accelerate inclusion and acceptance Create meaning and purpose Be fit for the future for learning leadership skills leaders Empowering individuals Create a culture that Engagement across Lead the organisation to deliver great outcomes allows people to be OneFortyOne on par through transition of an for the business and themselves. Managers with aspirational high ageing workforce enabling Manager Timber, and Warren Wellbeing is an area where embracing change as an surround themselves growth organisations greater technology and We need great leaders to create a great Egan, Production Scheduler leadership is paramount. It is opportunity to improve. with diversity to unlock through leaders inspiring right skills in the right organisation – but what does that mean from the Jubilee Sawmill. essential for people to lead A culture of excellence, potential and greater with personal stories place ultimately unlocking by example when it comes adaptability and resilience creativity through a rich and rewarding collective a greater collaborative and how do we accomplish it? Together they studied to safety, and we take every where all employees and diverse culture. intelligence and values business to create value different aspects of the chance to have conversations strive for excellence in based behaviours. beyond competitors. sawmill such as green mill, We’ve been working to create a We aim to expand learning to ensure mindfulness and their field. dry mill, kilns, treatment, and leadership model and program opportunities for people continually improve. Having roundwood. that will develop satisfying at every level of the conversations about safety and career paths for our people. organisation. Building “This project is giving me wellbeing through proactive “Retaining and attracting That means we need excellent The second is about helping relationships is an important in-depth knowledge of the programs are one of our safety It’s important to talk about performance metrics. people to the forestry and leaders, and everyone needs people feel like they belong, cornerstone for future supply chain, from stump to future skills and future timber industry is an area to feel welcome, valued no matter who they are or leaders, and projects between finished timber products,” workforces, and we are “We believe everyone, we’re always aiming to and confident to make their where they’ve come from. teams have been a great way says Conor. “Knowing certainly thinking ahead. regardless of their role, has a improve on,” says Peter own unique leadership The third priority means to foster those relationships more about the production However, we don’t want to responsibility for leadership,” Brydon, Chief People Officer. contribution.” lifting engagement levels in 2020. scheduler role also helps with overlook the incredible skills says Candice Fennell, Head of “We want great people to across the business. The final my customer coordinator Our first priority pushes us to and experience we already Our wood density project Human Resources, Australia. work with us, people who priority is all about innovation, perspective, because I empower every employee to have. Building on our existing is an excellent example: “Whether you have direct are experts in their field, and evolution and adaptability. know more about the mill’s lead, deliver great outcomes expertise is a way to create a it involved Conor Ryan, reports or not, everyone can who are committed to the requirements. Learning the and embrace change. huge depth of knowledge in Customer Co-ordinator from be a leader in some way – we success of the business. The new technologies has also our workforce. the Forests team, working are all leaders of something. All only way to achieve that goal been very interesting.” with Darren Phelan, Planning of our people have a talent we is to make OneFortyOne a can manage and embrace.” genuinely great place to work. 12 | OneFortyOne Annual Review 2020 OneFortyOne | 13
Caring for our people Driving diversity across the organisation Jenny van Workum, Human Resources Manager New Jenny van Workum talking drones with Chris Ensor, Zealand, says that the way we plant and harvest trees is Log Sales Manager, left, and Christoph Riedel, Forest not how many people might imagine. Operations Planner, Richmond, New Zealand Nowadays, there are far fewer people behind chainsaws in the forest, in fact most people are operating highly specialised machinery. We need people who have the skills to operate sophisticated technology. We hope our people and future employees can engage with others to Proud to be make things happen and Jay Ropitini, Sawing to get things done. We are Technician, Jubilee looking for people that are Sawmill passionate about the industry, employing highly want to learn more, and see a career for themselves at OneFortyOne. Diversity is one of our skilled essential areas for improvement. Increasing our diversity will bring significant strengths to the business: diverse workers workplaces offer a wider range of viewpoints, more creative problem-solving and superior business performance. Company culture is a product of our “We know that if we want to “ Our goal is to create a culture that retain our people and attract leadership and principles. younger generations to the allows people to be themselves and When the borders closed between Could we source their skills niche skill sets to keep our mill easily if our people were running 24 hours a day.” The evolution of workplace business, then inclusion for managers to surround themselves South Australia and Victoria, we were not permitted to cross the culture weaves through the The process of identifying whole business; it is the must be a key part of our company culture,” says with people of different backgrounds to asked to articulate why our workers border? and explaining why some of combination of everyone’s Peter. “Our goal is to create unlock potential and greater creativity.” should be classed as ‘essential’. For This process reinforced how our employees needed to attitude and behaviour. highly skilled our workforce cross the border gave us an a culture that allows people to be themselves and for workers living on the Victorian side of is and how tough it would be opportunity to reflect on just Peter Brydon managers to surround Chief People Officer the South Australian border, was their to replace their training and how many specialised roles expertise. we have in the forest and the themselves with people of work essential to our business? mill. In short, the answer to different backgrounds to “From plantation to mill, unlock potential and greater the government’s question forestry is an innovative, high- creativity.” was, “Yes, our workers are tech industry with the end user essential – and they would be of our wood fibre always front impossible to replace easily of mind when we adopt new if they weren’t permitted to technology,” says Peter, “and cross the border.” our high-tech expertise doesn’t stop at the forest. We rely on 14 | OneFortyOne Annual Review 2020 OneFortyOne | 15
Caring for our people Creating a culture of safety at Kaituna Sawmill Health and safety come first at the Kaituna Sawmill in Marlborough, where a fresh approach to culture is setting a new standard for the site. 16 | OneFortyOne Annual Review 2020 OneFortyOne | 17
Caring for our people 12 “ We have very specific measures for behaviour and site culture, Tracy Goss, General Manager and safety direction and Kaituna Sawmill, says it was performance, but the culture element implementation. an opportunity to integrate is difficult to measure and it’s hard to The assessors highlighted the people, maintenance, plant and equipment into the determine whether or not you have areas we should focus on: review process. months without a lost the right culture.” • Leadership “We have very specific time injury • Engagement measures for performance, but February 2020 to Tracy Goss the cultural element is difficult January 2021 without a • Legislation and compliance General Manager Kaituna Sawmill to measure and it’s hard to work-related injury or • Risk assessment determine whether or not you illness that results in time have the right culture.” off work, permanent Using independent Assessing where we needed A new auditing system Forklift-only work zones disability or a fatality assessments, developing to make changes To improve engagement, new systems and changing Safety around forklifts was To begin the process of we introduced an auditing the way we think about identified early on as a improving safety, we invited system at Kaituna which sets safety has revolutionised the significant issue – it was independent assessors, out goals for creating a safer culture at Kaituna Sawmill in crucial to create more both internal and external, culture at the mill. The system Marlborough. It’s an ongoing separation between forklifts to Kaituna to observe defines areas of focus and process and already we’re and pedestrians. our operations and make targets areas of opportunity seeing huge improvements in recommendations on how we whether this is around the processes and attitudes Cilla Ivory, Health and Safety could improve. The assessors training, new employees, around health and safety. Facilitator, says workspaces provided a series of reports, dispatch or another area of were shared and becoming including barriers, safety the business. congested: “Some of the walkways used to cross over areas where forklifts went, so Home Safe and Well – a powerful pledge now we have guided walkways that keep pedestrians away from forklifts and other OneFortyOne’s company-wide Home Safe and Well program is another key platform for moving plant.” culture shift. “In a couple of really busy Launched in January 2020, the program invites team members – including contractors forklift locations there are visiting the company’s sites – to sign a pledge. Those who have signed have also received sensor-activated super bright a badge to wear to indicate they have endorsed the pledge. LED traffic lights at safe points “The pledge is to ourselves, to our families, and to one another,” says Tracy Goss. “It’s a to alert people that a forklift way of signalling to everyone that we are working towards our common goal of doing all is in the vicinity. They must the things in our control to go home safe and well every day.” wait in the safe area until the light turns green before proceeding.” “When someone wants to speak to a driver on foot, the “Forklift operators do feel The team are creating a shift in “We took the opportunity forklift must be switched off, that it’s keeping pedestrians health and safety culture at the to integrate people, and the driver needs to step out of their operational areas mill by striving for improvement maintenance, plant and out of the machine to walk and that their workspace is and involving the whole team equipment into the review over to the person.” safer,” Cilla says. “They really so that there is a shared process,” says Tracy. appreciate that people are accountability for everyone There have also been respecting their work zone.” going home safe and well at improvements that have the end of each working day. provided clear, highly visual Getting the team engaged reminders of the exclusion “The culture shift means our Increasing engagement meant zone around forklifts. For people look out for each empowering individuals at example, red lights on the side other and hold each other Kaituna to bring forward of a forklift indicate a three- accountable. You need a their ideas with confidence, metre exclusion zone around trusting environment to affect knowing that they will be the machine providing an this type of change so people heard and responded to. extremely effective visual cue feel comfortable enough to to keep your distance. Tracy says there’s been a shift bring issues forward and so in culture: “Ultimately, we they can trust the business can’t do anything without our is going to react in an people. The most important appropriate way.” thing has been to engage Kaituna Sawmill team them at every step of the change process.” 18 | OneFortyOne Annual Review 2020 OneFortyOne | 19
Caring for our people 4.5 EBITDA increased over 4.5 times* the previous calendar year demonstrating that safety doesn’t come at the cost of business performance. *Earnings Before Interest, Taxes, Depreciation, and Amortisation Tracy Goss, General Manager Kaituna Sawmill “There’s been a huge change,” Getting to the bottom of “Not all of these Continuous improvement says Cilla. “Individuals are safety problems improvements have been Health and safety coming up with ideas and an easy journey,” said Chris. There is an old adage – you improvements are a constant they’re recognising hazards “When you’ve got a way that have to go slow to go fast – and process and everyone in the and risks. They will question you’ve done something for this is at the heart of increased Kaituna team is confident they it themselves and raise it with years and then it gets taken productivity at the mill. have the full support of their the HSRs. We’ve always had away from you, it can be a bit colleagues. Everyone wants to HSRs, but until now there Chris Lambert, Kaituna’s frustrating. That’s until you keep each other safe and well hasn’t been this level of Green Mill Manager, says work out as a team how to do at work, because everyone engagement with them.” that despite the increase in it, and it feels natural.” has the right to go home to safety improvements, it hasn’t Bob Ward, a member of the A more productive workplace their families at the end of affected overall productivity. dispatch team, was voted in each working day. A safer site is a more productive as an HSR and says the new “You have to solve problems site, and there has been Tracy said the team is New signs and structures While we’ve had signage for Pledging to come home safe New elected safety officers process has driven a positive at their root cause. It’s human a significant increase in continuing to look at ways to a long time, there is now an and well shift in the culture. nature to try to solve or find To boost safety further, we This year we introduced productivity in response to reduce and eliminate critical extra emphasis site-wide a ‘workaround’ for small made safe spaces more Another important part of elections to appoint site- “I’ve never worked for a safety improvements. Even risks, to record what they’re on new, more eye-catching problems by effectively utilising obvious and dangerous the culture shift has been our wide health and safety company so into their safety, small workarounds add up to doing, and to encourage a signage carrying on with the what’s in front of us. One of the spaces harder to access. company-wide ‘Home Safe and officers. Anyone interested in and I think that’s helped by be surprisingly time-consuming culture that keeps themselves high-impact visual theme.” aspects of our safety work is to Ultra-bright yellow railings Well’ program. Team members, becoming a Health and Safety the long induction process for and problematic, as well as and contractors visiting the stop the workarounds.” guide employees and visitors Even the way we stack timber including on-site contractors, Representative (HSR) is asked new people. On a day-to-day being a safety hazard. site safe. around pedestrian-only zones, has evolved, with stack height sign a pledge committing to to submit a mini resume with level for every process, you An example of the Hayden Watty, an apprentice “We need people working providing a conspicuous decreasing as rows approach taking care of themselves and their registration of interest. have to go through the safe workaround fix in practice timber machinist, started together to make this reminder of where to walk. pedestrian areas. This means their colleagues. operating practices so you’re was in areas of the mill where “Once nominees are collected, working at Kaituna as a stacker happen and we’re proud The new 1.8m guarding pedestrians are only ever aware of how things work. It’s timber traditionally bunches Tracy says the pledges are “to the team then votes via a single five years ago, and said the of the collaboration here fences throughout the mill walking close to the shortest very good.” up or moves off its runners. ourselves, to our families, and transferable vote system.” safety improvements have at Kaituna. Safety is never a also create a strong separation stack of timber. In the past, the workaround to one another. It’s a way of made a big impression. job that’s finished, and we between pedestrians and the The new HSRs meet each was for someone to manually Tracy says the barriers have signalling to everyone that keep ourselves in check by heavy-duty machinery and month to look at different stand on the sidelines and “When I first started here there had even more of an impact we are working towards our remembering that we are plant nearby. projects to focus on, while flip the timber with a metal was more of a culture of ‘she’ll than we expected. common goal of doing all the always only as good as our there’s a second site-wide pole. Now, by finding ways to be right’. The culture is a really Cilla says it’s all designed to things in our control to go last day’s performance.” “People’s perception of risk health and safety meeting improve the performance of big thing for me. Once upon slow you down in a good home safe and well every day.” has started to change. We’re where team members can the machinery so the timber a time it was rush, rush, rush, This article has been adapted from way: “The safety updates an original story by WaltersPR. starting to see people applying raise any issues or ideas. We doesn’t end up in a bunch, whereas now we’re told to slow have created a constant visual risk awareness on a day-to- also increased our induction we’ve removed an unsafe down, work out the hazards, reminder that there are hazards. day basis. They’re empowered process to a full week for ‘fix’ and replaced it with a and then fix it. It’s all changed to speak up and say ‘Hey, every new employee, giving genuinely safer process. now, and everyone looks after that’s not right’.” us more time to explain our each other.” health and safety expectations and processes. 20 | OneFortyOne Annual Review 2020 OneFortyOne | 21
Working with our industry Buy Aussie timber first Timber – it’s hard to imagine life with viewers why Aussie timber The campaign was was a winning product: “It’s not coordinated by the Australian without it. During Australia’s COVID just because it’s the ultimate Forest Products Association. restrictions of 2020, we were able to renewable and stores carbon for It builds on the successful the life of the product, it keeps keep our business running safely, retain Australia stronger as well.” ‘Timber Framing – The Ultimate Renewable’ our people and support the economies Mike Bloomfield, General campaign, which we also where we live and work. Manager of Sales and supported. Marketing, says it’s excellent to “The new campaign carries be part of a project that sees It’s sustainable, durable and Launched in July 2020, the Buy a very pertinent message on the industry working together renewable: Aussie timber Aussie Timber First campaign why it is so important to buy on a collective message. is an incredible natural saw the timber industry come Australian timber,” says Mike. resource that creates jobs, together to send a clear “This was a great example of “It goes right across the supply stores carbon and boosts message to the Australian public the government and industry chain to fabricators, builders and our economy. Throughout about the value of our products. collaborating to bolster the consumers. Buying Australian the ups and downs of 2020’s The campaign included timber and housing industries timber is a great idea at any pandemic, OneFortyOne OneFortyOne, AKD Softwoods, as well as regional employment time, but especially during was able to keep operating Boral, Hyne Timber, Timberlink during a very difficult time,” periods of economic recovery in a COVID-safe way. We Australia and Wespine Industries. says Mike. “It’s so good to see when it provides critical support were hugely grateful to be the industry coming together for regional employment.” A series of videos featured a to showcase all the benefits of able to continue providing To find out more visit: wide range of timber industry our products.” employment, supporting www.buyaussietimberfirst. professionals from these regional economies and com.au/ organisations, including Nigel delivering essential products Boyd, Production Manager at all through the year. Jubilee Sawmill. Nigel shared PROUDLY AUSTRALIAN MADE 500,000 $23.9 billion Online advertising impressions for the campaign 2018–19 forest industry generated $23.9 billion of in the first three months sales and service income 52,000 People employed in the Australian timber industry 22 | OneFortyOne Annual Review 2020 Source: https://www.agriculture.gov.au OneFortyOne | 23
Striving for better Drones are revolutionising weed management We’re using drone technology and high resolution imagery to find, map, and manage weeds across our forests. Weed control is a challenge in One of the problem plants your own backyard, let alone we’ve been working to across 175,000 hectares of eradicate is coastal wattle. forest over two countries. Although a native Australian Invasive plants in a pine plant, when away from plantation are particularly its natural range on the threatening to young pine coast, this weedy tree is seedlings as they try and an invasive pest plant. Left Drone technology establish in the first three untreated, coastal wattle can years. Weeds can often grow outcompete our pine trees, faster than our young trees, and can spread beyond the 5km taking up water and nutrients, plantation to outcompete and blocking out light. other native plants. Using Too many weeds and our drone imagery, we’ve been trees can’t grow to their full able to locate and record direction obstacle sensing capacity – rotation times may existing infestations, using extend and large numbers of this information to coordinate trees could die. weed control. Afterwards, 7km With the help of a new drone in our toolkit, we’re now able to more easily and quickly we can re-photograph the same areas to see how well our weed management is working, and to monitor the video transmission range identify areas where weeds health of the plantation. are causing problems for our forests. We can map out Beyond weed management, 83 hectares entire forests and create high- the drone imagery is used resolution images that show to map elevation and tree Dr Danielle Wiseman, us where to focus our weed heights, as well as identifying Research Manager and reduction efforts. Utilising sensitive areas in plantations Bella Walker, Graduate of native vegetation (inliers) mapped on our estates this technology means we like sinkholes and caves. can map and assess a greater This cost-effective area, access difficult to reach 209 hectares innovation is likely to terrain, and remove some of become a permanent piece the manual labour meaning of equipment, helping us safer and more productive build a detailed map of all weed mapping. our plantations so we can of our plantations mapped quickly pinpoint any emerging problems and find solutions. 24 | OneFortyOne Annual Review 2020 OneFortyOne | 25
Striving for better Helpful fungi Shannon Rutherford, Forestry Operations Planner assessing tree height as part of the Sherry trial overview promote Credit Helen Whelan of Bio- Protection Research Centre tree growth and disease resilience Trials are showing that adding Scholarship Forester Heidi Maresch measuring wood Trichoderma root endophytes to seeds density with the IML-Resitool can result in faster growing and more resilient forests. Measuring timber Michael Lucente, Quality and For the past six years, Together we’ve been When the seed germinates, Results from this trial found Compliance Manager, we OneFortyOne has been taking different mixes of the Trichoderma forms a a significant increase in tree collected valuable information involved in testing how Trichoderma root endophytes symbiotic relationship with height growth and survival – from our logs from the forest Trichoderma root endophytes and seeing whether they can the seedling that is transferred as a result, production quality without through to the sawmill. The might be able to improve enhance the growth of our from the nursery into the plantings have been having trial will help us to better the growth of New Zealand trees, and their resistance to forest at planting. Trichoderma treatments understand what’s growing in radiata pine forests. This has foliar diseases. Trichoderma since 2019. This research is showing our estate. been a group effort, with fungal organisms are found damaging trees some very encouraging signs, Craig Brown, Forestry our forests hosting trials naturally in soil and on roots; “This trial has been a real including a significant increase Manager says, “We’re excited for the Lincoln University they form mutually beneficial collaborative effort, bringing in survival rate for young trees. about the overall results – Bio-Protection Research relationships with the plants together our experts from both It’s also showing significant it’s fantastic to see ways that Centre, supported by the they live on. the forest and mill teams,” says reduction in the incidence innovation, research and Forest Growers Commodity Cameron MacDonald, Executive In tests, living Trichoderma and severity of Dothistroma curious minds can make our Levy and New Zealand Forest A new resistance drilling tool is helping us to accurately General Manager Australia. Growers Research. endophytes are coated onto septosporum, which infects crops stronger, taller and “We know that so many factors seeds in our nursery before trees and leads to low timber more resilient.” measure wood density in standing trees and improve influence the quality of our sowing. yields (and occasionally the Special thanks to Dr Robert our overall timber quality. final product – genetics, the death of the tree). Hill and Dr Helen Whelan of environment and inputs like Along with hosting trials from the Bio-Protection Research fertiliser. Work like this gives us the national series, in 2018 we Centre; Robert Appleton of They may look similar on the Traditionally, wood density The Resitool can be used on a deeper understanding of how ran our own in-house trial of Appletons Tree Nursery; and outside, but on the inside, has been measured using standing trees, and, compared these all interact.” Bio-Protection Trichoderma Forest Growers Research. each pine tree is unique. the increment borer method: to the borer method, is easier We are also complementing applied locally at Appletons Performance and wood extracting cores from trees to use, less invasive, and less this with a study to link wood Tree Nursery. quality are important to and measuring their volume prone to damaging trees. quality attributes of logs to our customers. and mass of wood. This In December 2020, we the products made after technique is accurate but can Wood quality is critical to conducted a successful processing in the Jubilee be tricky to get right and can our business, as we supply pre-trial at our Island Swamp Sawmill. damage the tree. strong, high-grade structural property, measuring logs In the future, it’s likely this type timber for building homes. We are now trialling a new destined for the Jubilee of tool will continue to help Wood density is the weight by tool to gauge wood density, Mill. With a team of 25 boost our understanding of volume of a tree, and higher the IML-Resitool. It uses employees and contractors, the environmental, silvicultural density means a stronger and needles inserted into the led by Jan Rombouts, and genetic factors that stiffer product. tree, measuring resistance to Resources and Planning determine wood density. calculate wood density. Manager, Rob Lindner, Manager Optimisation, and 26 | OneFortyOne Annual Review 2020 OneFortyOne | 27
Striving for better Addressing climate At this stage there aren’t many “The forestry and timber Key figures for 2020 plantations in Australia that sector plays a key role in are eligible to access the ERF. addressing climate change” 200,000 To be eligible to participate says Glen. “It’s a win-win. change with in the ERF, new plantation We’re helping to improve forestry projects must be on environmental outcomes, eligible land or converting grow our business, and short-rotation plantations contribute to regional Trees planted at Tullich carbon farming to long-rotation (such as economies.” radiata pine). Plantations that We will be investigating more are already being managed 23,000 70 opportunities to undertake aren’t eligible under current carbon farming projects in schemes; they are included in 2021, as a natural part of our the national inventory. tonnes core business – reflecting Carbon farming has positive environmental outcomes, Radiata grows fast and rapidly our role as custodians of the People employed absorbs carbon dioxide, even as environment, and advocates per day during while simultaneously boosting cashflow and creating a young plant, so it’s the perfect for our industry. planting more jobs in the forest and timber industries. tree for projects like this. Expected CO2 offset In July 2020, we started Carbon farming ticks so many converted to long rotation “The carbon sequestration planting a pilot project on 126 hectares of a 344 hectare project at Tullich in Victoria, Australia. It’s a 25-year-plus boxes: it’s beneficial for the planet; it will help Australia generate more timber to supply the increasing demand radiata pine. The timber produced by the pines will store carbon for 30 to 100 years, as opposed to the over the project life is expected to be approximately 63,000 tonnes of CO2, which is enough to offset emissions $158,000 OneFortyOne’s estimated carbon commitment to carbon and it improves cashflow. paper produced by the gum from 13,500 cars each year.” revenue net present value over farming, where the carbon trees which stores carbon We’re working with That carbon is forecast to Carbon farming 15 years based on current modelling sequestered by the trees we for an average of six years. experts from WeAct, which create an income of over (subject to change) plant will generate credits from We earn Australian Carbon specialises in carbon farming Glen Rivers, OneFortyOne $700,000 during the first 15 the Emission Reduction Fund Credit Units (ACCUs) for development; they’ve been Chief Forester, says the years of growth, after which (ERF) for the next 15 years. every tonne of emissions a vital part of getting approval carbon is measured as a the credits cease. We can earn stored through this project. This is just one way we can for our first carbon farming proportion of the biomass of Australian Carbon Credit Units demonstrate how addressing project. The Tullich project the tree, and we will monitor (ACCUs) for every tonne of Each ACCU issued climate change can go was a short rotation blue gum the growth of the trees over emissions stored through this represents one tonne of hand-in-hand with profitable plantation, which we’ve the period of this project: project and sell the ACCUs to carbon dioxide equivalent. business practices. the Australian Government or other business to generate We sell the ACCUs to the additional revenue. Australian government or other business to generate. “We were motivated to additional revenue. begin carbon farming for the environmental and business case benefits,” Glen explains. “We will manage this forest in exactly the same way as we Wood Products The timber produced by the pines will do our other plantation areas. store carbon for 30 to 100 years The extra revenue will help us Transport Carbon Storage get more trees in the ground, Carbon is locked within our products which in the coming years will for their lifetime also help to meet Australia’s growing need for timber.” Timber Processed Timber Harvested Carbon Units Carbon credit units are earned for every tonne of carbon dioxide emissions stored Dr Danielle Wiseman, OneFortyOne with Vivek Dugar, WeAct Sustainable Forestry/Pine Plantation © CamThompson/ FloodlightMedia for CleanEnergyRegulator/ As trees grow they sequester carbon dioxide. The carbon sequestration over the project life CarbonMarketInstitute is expected to be approximately 63,000 tonnes of CO2, which is enough to offset emissions from 13,500 cars each year. 28 | OneFortyOne Annual Review 2020 OneFortyOne | 29
Serving our communities Transforming lives on the Limestone Coast For the sixth year running, OneFortyOne is proud to partner with the Stand Like Stone Foundation to help support the Limestone Coast community. The 2020 $50,000 program is supporting a range of initiatives – including firefighting equipment, foodbank deliveries, mental health support, and at-risk youth programs. Stand Like Stone Foundation “Our vision at Stand Like was established in 2004 by a Stone is to inspire community passionate group of people kindness and courage. from across the region who Partnering with businesses wanted to create a community such as OneFortyOne, fund that would benefit who take such positive and the region in perpetuity. meaningful action to support The Foundation provides a their community, enables us vehicle for those that care to deliver on our mission.” about the region to give The six-year partnership something of real value back between Stand Like Stone to the community. Through its and OneFortyOne has annual grants and scholarships, improved the lives of Stand Like Stone is able to thousands of residents of quickly adapt and react to the Limestone Coast, and the community’s needs, our whole team is proud to from individuals and families, be involved. through to not-for-profit groups and corporations. “We love seeing the difference that Stand Like Stone is Our partnership making in the community Since 2014, OneFortyOne has here,” says Paul Hartung, provided $230,000 in support General Manager Jubilee to the region through Stand Sawmill. “It’s fantastic to be Like Stone. Anne Kerr, Stand able to support their efforts. Like Stone CEO, said these Stand Like Stone is making a grants epitomise the generosity long-lasting positive impact of spirit that is alive and well in here in the Limestone Coast.” the Limestone Coast. Padthaway Primary School received a grant for the fire fighting equipment. Pictured: Principal Corinne Mowat and student Will Turner. 30 | OneFortyOne Annual Review 2020 OneFortyOne | 31
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