SUSTAI NA BILITY REPORT 2020-2021 - Pfleiderer

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SUSTAI NA BILITY REPORT 2020-2021 - Pfleiderer
SUSTAI
NA
BILITY
REPORT
2020-2021
SUSTAI NA BILITY REPORT 2020-2021 - Pfleiderer
2

                                                                                                          Dear readers,

                            Chief Executive Officer
                           Zbigniew Prokopowicz
                                                                                                          Sustainable thinking and management have been closely linked to the renewable material
                                                                                                          wood at Pfleiderer since the very beginning: In 1894, Gustav Adolf Pfleiderer founded a timber
                                                                                                          trading company and a rafting business in Heilbronn. In doing so, he laid the foundation of
                                                                                                          our present company, which is successful throughout Europe.

                                                                                                          For thousands of years, wood has given people warmth and comfort. Wood connects us directly
                                                                                                          with nature. Wood is a valuable and reusable resource at the same time. Wood has always
                                                                                                          been the DNA of our company. And we have learned a lot from wood for our business philosophy:
                                                                                                          That one must cherish and care for one's resources in order to achieve a long-term high-quality
                                                                                                          yield. And that slow, healthy growth is better than striving for quick, short-term success.

                                                                                                          Since its beginnings more than 125 years ago, Pfleiderer has attached great importance to
                                                                                                          sustainable corporate management and development – from ecological and economic as well
                                                                                                          as social points of view. We take our responsibility very seriously – towards all of our employees.
                                                                                                          Towards the society in which we operate. And towards the environment that forms the basis
                                                                                                          of our existence. Careful management, the thorough use of resources and the protection of the
                                                                                                          environment and climate determine our corporate strategies just as much as the continuous
                                                                                                          advancement of the employees and the partnership-based cooperation with our stakeholders.

                                                                                                          We always act sustainably, performance-oriented, and transparent. Integrity, fairness and
                                                                                                          diversity are integral parts of our corporate culture. Sustainability has become a key success
                                                                                                          factor in the market today. At Pfleiderer, however, sustainable processes have always been

                                                                                Chief Financial Officer
                                                                                Dr. Nico Reiner           anchored in all areas and locations. Nevertheless, we are aware that sustainable action
                                                                                                          requires continuous optimization. Take a look at the present Sustainability Report as a review
                                                                                                          of what we have already achieved. In the coming months and years, however, we will continue
                                                                                                          to strive to make our company even more sustainable – for our customers, our employees,
                                                                                                          our environment and, last but not least, for our entire community.
    Stefan Zinn
    Chief Commercial Officer
                                                                                                          This Sustainability Report, which we hereby present to you, provides information on all the
                                                                                                          main aspects of the sustainability strategy of Pfleiderer Deutschland GmbH and its affiliates.
                                                                                                          The data and key figures presented cover our business activities in the period from January 1,
                                                                                                          2018 to December 31, 2019. In deviating cases, the data periods are shown accordingly.

                                                                                                          Zbigniew Prokopowicz       Dr. Nico Reiner            Dr. Frank Herrmann        Stefan Zinn
                                                                                                          Chief Executive Officer    Chief Financial Officer    Chief Operating Officer   Chief Commercial Officer

                                                      Dr. Frank Herrmann
                                                      Chief Operating Officer

                                                                                                                                                                                                                     3
SUSTAI NA BILITY REPORT 2020-2021 - Pfleiderer
CONTENT                                                                    06
                                                                           6.1
                                                                                       SUSTAINABLE PRODUCT POLICY 
                                                                                 Our product responsibility 
                                                                                                                                                                                          34

                                                                                                                                                                                          36
                                                                           6.2   Sustainability begins with raw materials                                                                38
                                                                           6.3   Quality products from sustainable production                                                            40
                                                                           6.4   Our sustainable products 		                                                                             42
          01
                      FOREWORD                                       03
                                                                           07          REFERENCES
                                                                                       SHOWCASE PROJECTS                                                                                 58

          02                                                               7.1   Health park for the senses                                                                              60
                                                                           7.2   Wormhouse                                                                                               61
                      HISTORY                                        06
                                                                           7.3   Refugee home Lübbecke                                                                                   62
                                                                           7.4   Kitchen construction                                                                                    63
                                                                           7.5   Cruise ships                                                                                            64
          03                                                               7.6   Hybrid vessels                                                                                          65

                      COMPANY PROFILE                                08

          3.1
          3.2
                  Organigram: Corporate structures 
                  Commitment to sustainability 
                                                                      10
                                                                      11
                                                                           08
          3.3     Environmental & occupational safety, compliance    12               CORPORATE SOCIAL RESPONSIBILITY                                                                   66
          3.4     Management system                                  12   8.1   Compliance – pulling together                                                                           68
          3.5     Company locations                                  13   8.2   Employees – development paths                                                                           70
                                                                           8.3   Corporate guidelines                                                                                    71
                                                                           8.4   Social responsibility                                                                                   72
          04          STAKEHOLDER                                          8.5   Human resources development                                                                             73
                                                                           8.6   Promoting young talent                                                                                  73
                      INTERRELATIONSHIPS                             14
                                                                           8.7   Motivation as a means of sustainable personnel policy                                                   74
          4.1     Sustainability as a task for society as a whole    16   8.8   Safety at work                                                                                          76
          4.2     Who are our stakeholders?		                        17   8.9   Commitment to social affairs, culture, and sports                                                       78
          4.3     Overview of stakeholder interests                  18   8.10 Plant and factory fire brigade                                                                           80
          4.4     Stakeholders demand sustainability                 18

                                                                           09
          05                                                                           GLOSSARY                                                                                          82
                      SUSTAINABILITY MANAGEMENT                      22   Technical terms, norms, standards, certificates and abbreviations briefly explained
          5.1     Future needs sustainability                        24
          5.2     Raw materials from sustainable production          25
          5.3
          5.4
                  Recycling management as a model for the future 
                  Research and development for the environment 
                                                                      25
                                                                      25
                                                                           10
          5.5     Product life cycle and recycling                   26               IMPRINT                                                                                           94
          5.6     Sustainability in production and logistics         26
          5.7     Certifications: Safety and transparency            27
          5.8     Sustainable cascade use                            28
          5.9     Circular economy and cascade use in practice       30   Note on the language regime:
                                                                           For Pfleiderer, equal rights with regard to gender, parentage, religion, race, language, homeland and origin
          5.10 Sustainable production at the German sites            31
                                                                           are a matter of course and are lived. To make this report easier and more readable, we used the masculine
          5.1 1   Our certifications                                 33   form – this explicitly includes the feminine and gender-neutral form.
SUSTAI NA BILITY REPORT 2020-2021 - Pfleiderer
125 YEARS
PRACTISING SUSTAINABILITY
In 1894, company founder Gustav Adolf Pfleiderer chose wood
as a sustainable material. Since then sustainable thinking and acting
forms Pfleiderer's corporate culture.                                                                                               1999                           2006
                                                                                                                                    Thermopal becomes              Acquisition of Polish
                                                                                                         1983                       a 100 % subsidiary             glue manufacturer
                                                                                                         Foundation of                                             Silekól
                                                                                                         Thermopal
                                                                                                                                    2000
                                                                                                         Dekorplatten               Certification as a             2007
 1894                                                                                                    GmbH & Co. KG              specialist                     Start of MDF            2013
 Founded
                                                        1958                                                                        waste management               production              New start
 as a timber trade and      1949
                                                        Start of HPL production
                                                        under the name            1978                   1986                       company                        in Grajewo              after insolvency:
 rafting company in                                                                                      Integration of                                                                    Duropal, Wodego and
                            Start                       Duropal in Arnsberg       Market launch                                                                    Pfleiderer achieves     Thermopal are united
 Heilbronn a. Neckar                                                                                     Duropal                    Initial operation of the
                            of production of                                      LivingBoard                                                                      PEFC and FSC            under the Pfleiderer
                            plant 1 Gütersloh under
                                                                                                         to the Pfleiderer Group    Gütersloh CHP plant
                                                                                                                                                                   certification           umbrella brand
                            the name "Wirus”
                                                                                                                                                                   FSC® license code:
                                                                                                                                                                   FSC-C011773             2017
                                                                                                                                                                                           Launch of the
                                                                                                                                                                                           "One Pfleiderer"
                                                                                                                                                                                           collection

                                                                                                         1995                                                                              2018
 1919                                                                             1979
                                                                                                         Construction of the                                       2008                    Lacquering plant
                                                                                                         ContiRoll high-            2002                           Pfleiderer achieves     n Leutkirch, currently the
 Construction of an                                                               Expansion of the
                                                                                                         performance press          Initial operation of the       CARB certification      world's largest hot-coating
                                                                                  product portfolio by
 impregnation plant         1954                        1962                                             Plant 2 Gütersloh          Baruth CHP plant                                       plant at 165 metres
 with sawmill in Neumarkt                                                         insulation and
                            Start of concrete railway   Start of chipboard
                                                                                  polymer materials                                                                2009
 for processing railway
 sleepers and poles
                            sleepers production         production in Neumarkt
                                                                                                         1997                       2005                           Pfleiderer achieves     2019
                                                                                                                                                                                           HPL and HPL elements
                                                                                                         Initial operation of the   Acquisition of the chipboard   F**** certification
                            1956                        1974                                             Neumarkt CHP plant         and MDF board manufacturer                             awarded the
 1944                                                                                                                               KUNZ                                                   Blue Angel
 Relocation of the
                            ZEFA is taken over
                            by KRAGES, initially
                                                        Start of operation of
                                                                                                                                                                   2012
                                                        particleboard plant 2                                                                                      Market launch
 company headquarters to
 Neumarkt
                            under the name ALOPAL,
                            later then as Thermopal
                                                        in Neumarkt                                                                 First time a product
                                                                                                                                                                   Balance­Board           2020
                                                                                                                                    has been awarded the
                                                                                                                                                                                           Certification Cradle
                                                                                                                                    Blue Angel                                             to Cradle Certified™
                                                                                                                                                                                           Products Program
                                                                                                                                                                                           LivingBoard, DecoBoard and
                                                                                                                                                                                           PrimeBoard
SUSTAI NA BILITY REPORT 2020-2021 - Pfleiderer
03

     COMPANY
     PROFILE
     „Pfleiderer has always lived sustainability at all
     locations and at all levels – not only in ecological
     terms, but also in social and economic terms."

     Zbigniew Prokopowicz, Chief Executive Officer, Pfleiderer Group
SUSTAI NA BILITY REPORT 2020-2021 - Pfleiderer
10

                                                                                                                                                                                                                                            Commitment to sustainability
                                                                                                                                                                                                                                            03 | COMPANY PROFILE
                       ORGANISATIONAL CHART:
                       CORPORATE STRUCTURES

                                                                                      HOLDING
                       Area of validity of this report:                                                                                         WOOD IS SUSTAINABLE –                          COMMITMENT TO SUSTAINABILITY
                       Pfleiderer Deutschland GmbH                 Pfleiderer Group B.V. & Co. KG                     Supervisory Board         SO ARE WE                                      IS PART OF THE CORPORATE CULTURE
                       and subsidiaries                                Head Quarter: Neumarkt

                                                                                                                                                Pfleiderer Deutschland GmbH operates           We are convinced that economic success
                                                                                                                                                sites in Arnsberg, Baruth, Gütersloh,          can only be achieved with satisfied
                                                                                                                                                Leutkirch and Neumarkt, where it employs       customers, healthy and motivated em­
                                                                    HOLDING                                                                     around 2,000 people. Under the umbrella        ployees and the sustainable protection of
                                                               PCF GmbH (Neumarkt)                                                              brand Pfleiderer, the company combines         our environment. This results in a far-
                                                                                                                                                the product ranges of Duropal and              reaching responsibility which we take very
                                                                                                                                                Thermopal. Sustainability determines not       seriously – both towards our customers,
                                                                                 SALES AND SERVICE                SALES AND SERVICE             only our internal processes, but also our      suppliers and neighbours and especially
                                                                                         Pfleiderer                      Pfleiderer             relationship with our customers and the        towards the people who work for us.
                                        Supervisory Board                            Deutschland GmbH                  Polska sp. z o.o.        society in which we live and operate.
                                                                                        (Neumarkt)                        (Wroclaw)
                                                                                                                                                Throughout Europe, Pfleiderer has been
                                                                                                                                                able to establish itself as a leading
                                        Sales companies                               Pfleiderer                       Pfleiderer               supplier for furniture and interior design,
                                                                                      Arnsberg GmbH                    Grajewo sp. z o.o.       the specialist wood trade and for structural

                                                                                      Pfleiderer
                                                                                                         PRODUCTION
                                                                                                                       Pfleiderer MDF
                                                                                                                                                timber construction. We inspire our
                                               Pfleiderer
                                                                                                                                                partners with tailor-made service offers,
                                                                        PRODUCTION

                                               France S.A.S.                          Baruth GmbH                      Grajewo sp. z o.o.
                                                                                                                                                unique consulting competence and a
                                               Pfleiderer                             Pfleiderer                       Pfleiderer
                                                                                      Gütersloh GmbH                   Wieruszów sp. z o.o.     maximum selection in the field of deco­
                                               Benelux B.V.
                                                                                                                                                rative surfaces. With raw chipboard and
                                                                                      Pfleiderer                       Pfleiderer
                                               Pfleiderer                                                                                       fibreboard, further improved decorative
                                                                                      Leutkirch GmbH                   Silekol sp. z o.o.
                                               Suisse AG
                                                                                                                       (Kędzierzyn-Koźle)       products, laminates, HPL elements and
                                       SALES

                                                                                      Pfleiderer
                                               Pfleiderer                                                                                       postforming elements such as worktops,
                                                                                      Neumarkt GmbH
                                               UK Ltd.                                                                                          we supply perfect materials for every

                                               Pfleiderer
                                                                                                                                                project – fire protection, shipbuilding,
                                                                                                         OTHER

                                               Southeast-                                                              Jura Polska sp. z o.o.   timber construction, integrated hygiene
                                               europe SRL                             JURA-Spedition                   (Grajewo)
                                                                                                                                                protection or eco-certification included.
                                                                        OTHER

                                                                                      GmbH (Neumarkt)
                                               Pfleiderer                                                                                       At our locations we produce in a particu-
                                               Austria GmbH                           Heller Holz GmbH                                          larly resource-saving, low-emission and
                                                                                      (Neumarkt)
                                                                                                                                                energy-efficient way.

                                          Representative
                                             offices
03 | COMPANY PROFILE

                                       SALES

                                               Italy and
                                               Czechia
Organigram

                                                                                                                                                                                                                                                11
SUSTAI NA BILITY REPORT 2020-2021 - Pfleiderer
12                                                          COMMITMENT TO ENVIRONMENTAL                                                                         Pfleiderer

                                                                                                                                                                                                                                                            German locations
                                                                                                                                                                                                                                                            03 | COMPANY PROFILE
                                                                                                                                                                    Leutkirch
                                                                PROTECTION AND LABOUR PROTECTION

                                                                We are committed to constantly improving       and government guidelines and instruc­
                                                                the protection of the environment by           tions in everything we do. Our guidelines
                                                                making the best possible use of the raw        also oblige us to manage and cooperate
                                                                materials and energy used and by               according to ethical and socially respon­
                                                                complying with applicable regulations.         sible principles.

                                                                We also undertake to ensure a high             The public image of our company is
                                                                standard of product and process quality        shaped by the appearance, actions and
                                                                at all times. We are also responsible for      behaviour of each and every one of us.
                                                                the safety of our plants. We achieve this      Each of us is jointly responsible for
                                                                by always keeping all components up to         ensuring that we as a company live up to
                                                                                                                                                           Pfleiderer Arnsberg                                                 Pfleiderer Baruth
                                                                date with the latest technology and by         our social responsibility worldwide. We
                                                                using effective maintenance strategies.        also expect our suppliers, customers and
                                                                We take a wide range of measures for           business partners to adhere to conduct in
                                                                labour protection and implement safety         line with compliance.
                                                                at work regulations with the aim of
                                                                preventing all accidents at work. Our
                                                                employees receive regular, practice-
                                                                oriented training on all aspects of labour
                                                                protection.

                                                                COMPLIANCE AND                                   Management system creates
                                                                ETHICAL PRINCIPLES                               transparency

                                                                                                                 Pfleiderer Deutschland GmbH has an
                                                                We always apply the highest ethical and          integrated management system for
                                                                legal standards in strategic conside­            quality, environment, energy and safety
                                                                rations and in our daily business (com­          according to DIN EN ISO 9001:2015,
                                                                pliance). Pfleiderer acts in accordance          DIN EN ISO 14001:2015, ISO 45001:2018,
                                                                with the principle of legality in all areas:     ISO 50001:2011 (ISO 50003) and                                                                                                    Pfleiderer
                                                                                                                                                                                                                                                   Gütersloh,
                                                                We strictly follow legal requirements            FSC/PEFC. The accompanying manage-                                                                                                Plant 2
                                                                                                                 ment handbook contains all regu­
                                                                                                                 lations concerning our corporate duty
                                                                                                                 of care, the quality management of
Environmental protection and occupational safety | Compliance

                                                                                                                 our products, the protection of our
                                                                                                                 employees and the environment and
                                                                                                                 the careful use of energy resources.
                                                                                                                 The management manual also
                                                                                                                 applies to the subsidiaries Heller Holz
                                                                                                                 GmbH and JURA-Spedition GmbH in                                 Pfleiderer Gütersloh,
                                                                                                                 Neumarkt.                                                                    Plant 3

                                                                                                                 A key feature of our integrated ma-
                                                                                                                 nagement system is the continuous
03 | COMPANY PROFILE

                                                                                                                 improvement process in the areas
                                                                                                                 of quality, environment, energy and                                                     Pfleiderer Neumarkt
                                                                                                                 safety. This continuous development
                                                                                                                 is based on the application of the
                                                                                                                 PDCA cycle (Plan – Do – Check – Act).
                                                                                                                                                                                                                                                            13
SUSTAI NA BILITY REPORT 2020-2021 - Pfleiderer
14

     04

          STAKEHOLDER
          INTERRELATIONS
          "As a leading company in the engineered wood
          industry, Pfleiderer attaches great importance to
          sustainable relationships with all stakeholders.
          Here, too, it is important to act in a field of tension
          between economic, ecological and socio-political
          interests."

          Dr. Nico Reiner, Chief Financial Officer, Pfleiderer Group
                                                                       15
SUSTAI NA BILITY REPORT 2020-2021 - Pfleiderer
16

                                                                                                                                                                                                                             Who are our stakeholders?
                                                                                                                                                                                                                             04 | STAKEHOLDER RELATIONS
                                    SUSTAINABILITY AS A TASK
                                    FOR ALL SOCIETY AS A WHOLE
                                                                                                                                In exchange with our stakeholders we            • Sustainable forestry companies
                                    Together with our stakeholders, we are constantly working to make
                                                                                                                                want to understand positions, identify          • Wood trade
                                    not only our own and our partners' operational processes more                               trends and develop or deepen partner­           • Woodworking companies
                                    sustainable, but also to engage in social and ecological projects.                          ships. In doing so, we consciously face up      • Construction companies
                                                                                                                                to critical issues and debates. This helps      • Architects
                                                                                                                                us to better analyse which next steps are       • Furniture industries
                                                                                                                                necessary or expected from us in the            • Trade media
                                                                                  cantly to our corporate success through       individual fields of action. Conversely,
                                                                                  their perspectives, decisions and actions.    in mutual exchange we can transparently         Furthermore, we regard our employees at
                                                                                  Pfleiderer therefore maintains a conti­       present what scope for action we see in         all locations as internal stakeholders.
                                                                                  nuous dialogue with all stakeholders in       current challenges and what prerequi­
                                                                                  the relevant markets and at all its sites.    sites and framework conditions are
                                                                                                                                important for us. In principle, this applies    WHICH TOPICS ARE RELEVANT
                                                                                  This close dialogue takes place through-      to all our stakeholder dialogue formats:        TO OUR STAKEHOLDERS?
                                                                                  ­out the year as part of a dense network of   Feedback from our stakeholders signi­
                                                                                  events and opportunities to meet:             ficantly influences Pfleiderer's strategic      A permanent exchange of ideas is crucial
                                                                                                                                considerations.                                 for the consistent quality of stakeholder
                                                                                  • Trade fairs and exhibitions                                                               relations – to identify the interests and
                                                                                  • Customer events                           Good stakeholder relations are charac­          issues that concern our stakeholders and
                                                                                  • Participation in local events             terised by a continuous exchange in which       to which we must find the right answers
                                                                                  • Meetings agreed at short notice,          everyone wins: Pfleiderer is involved           with our services. But also to draw up
                                                                                    e.g. in the context of site investment      through its high level of corporate ethics,     joint guidelines for action based on the
                                                                                  • Active cooperation with associations      respect for people and the environment,         principle of sustainability. The list of
                                                                                  • Personal exchange with political          and through a variety of activities that also   relevant topics is constantly being up­
                                                                                    decision-makers at local, state and         have an impact far beyond the company.          dated and regularly adapted to the stake-
                                                                                    federal level                               We assume social responsibility and in          holders´ needs.
                                                                                                                                return feel a steadily growing approval for
                                                                                                                                our company and our commitment to               The topics that have crystallised as
                                                                                  TRANSPARENCY, CREDIBILITY,                    sustainability.                                 particularly important in discussions with
                                                                                  TRUST: THE FOUNDATIONS OF OUR                                                                 external stakeholders clearly show the
                                                                                  STAKEHOLDER APPROACH                                                                          great interest in sustainable solutions:
                                                                                                                                WHO ARE OUR STAKEHOLDERS?
                                                                                  We always maintain an open and trans­                                                         • Wood origin and sustainable forestry
                                                                                  parent dialogue with our stakeholders.        As a company, Pfleiderer sees itself as         • Cascade utilisation, closed loop
                                    With its headquarters and production in       Because only those who act credibly           having a duty to society as a whole. That is      recycling management and wood
                                    Neumarkt and its plants in Arnsberg,          will gain lasting trust. And trust deter­     why we attach great importance to a conti-        recycling
                                    Baruth, Gütersloh and Leutkirch, Pfleiderer   mines not only the relationship with our      nuous exchange with the most diverse            • E
                                                                                                                                                                                   nergy production and use
Challenges for society as a whole
04 | STAKEHOLDER RELATIONS

                                    is firmly rooted in the regions where its     em­ployees and partners, but also our         interest groups. These include the people       • S
                                                                                                                                                                                   upply and production processes
                                    sites are located. From here, we operate      position as a company in society. By con­     in the communities at our sites as well as      • P
                                                                                                                                                                                   anel gluing and emissions
                                    internationally in a sensitive, highly        tinuously establishing and maintaining        decision-makers from politics, authorities,     • S
                                                                                                                                                                                   tandards and certificates
                                    networked environment. Our production         sustainable stakeholder relationships,        professional, trade and industry associ­        • Employee recruitment and development
                                    and products have an impact on the            we aim to promote effective and construc-     ations or the wide range of different           • Corporate responsibility and
                                    environment and affect the interests of       tive communication between all parties        companies and suppliers from the wood,            compliance
                                    our diverse stakeholders. At the same         involved as a first step.                     construction and furniture industries:          • S
                                                                                                                                                                                   ocial responsibility
                                    time, our stakeholders contribute signifi-                                                                                                                                                 17
SUSTAI NA BILITY REPORT 2020-2021 - Pfleiderer
18                                                                                                                           Wood is NOT procured and processed . ..       Energy generation and use: We see it

                                                                                                                                                                                                                           Stakeholder interests
                                                                                                                                                                                                                           04 | STAKEHOLDER RELATIONS
                                                                                                                                                                             as our obligation to continuously improve
                                                                                                                               • from illegal harvesting                   the energy efficiency of all our processes,
                                                                                                                               • from areas where traditional and          taking into account the energy input and
                             STAKEHOLDERS'                                                                                       fundamental civil rights are violated       energy consumption. Strictly sustainable
                             INTERESTS                                                                                         • from forests whose special conser­        energy management there­fore charac­
                             AT A GLANCE                                                                                         vation values are threatened by forest      terises all our manufacturing processes.
                                                                                                                                 management                                  This is characterised, for example, by
                                                                                                                               • from the conversion of natural forests    environmentally friendly energy gene­
                                                                                                                                 into plantations or non-forest uses         ration in our own combined heat and
                                                                                                                               • from forests with genetically modified    power plants at the Neumarkt, Baruth and
                                                                                           Internal Stakeholders
                                                                                                                                 tree species                                Gütersloh sites.
                                                                                              Job security                     • from areas where the ILO fundamental
                                                                                              Working climate                    principles as defined in the 1998 ILO       Supply and production processes:
                                                                                              Health                             Declaration on Fundamental Rights at        We not only manufacture our products
                                                                                                                                 Work are violated.                          with the greatest care, but also within the
                                   External Stakeholders                                    	Environmental
                                                                                              compatibility                                                                  framework of a certified environmental
                                       Wood origin and sustainable forestry                                                    In general, Pfleiderer acts according to      management system – energy self-
                                     	Cascade utilisation, closed loop recycling                                              the principle of using wood as a material     sufficient and without releasing additional
                                       management and wood recycling                                                           for as long as possible in order to reduce    CO2. During production, we take into
                                     	Supply and production processes                                                         the burden on forestry operations and         account the requirements of ecology
                                                                                                                               reduce the amount of land required for        throughout and have the effects on the
                                     	Panel gluing and emissions
                                                                                                                               planting. Wood binds the CO2 emissions        environment regularly evaluated by an
                                     	Energy production and use
                                                                                                                               caused by human activity to a large extent.   environmental officer in order to identify
                                     	Standards and certificates                                                              This is why we actively support organi­       further potential for improvement.
                                       Employee recruitment and development                                                    sations such as "Plant for the Planet",
                                     	Corporate responsibility and compliance                                                 which aims to counteract climate change
                                                                                                  Sustainable management
                                     	Social responsibility                                                                   through worldwide tree planting cam-
                                                                                                  Customers and products
                                                                                                  Environment and energy       paigns.
                                                                                                  Employees and society

                                                                                                                               Closed-loop systems: Cascade use,
                                                                                                                               closed-loop recycling management and
                                                                                                                               wood recycling are further requirements
                                                                                                                               that are increasingly in demand by part-
                                Internal stakeholders, on the other hand,        STAKEHOLDERS WANT                             ner companies. To date, Pfleiderer has
                                focus on issues related to the workplace:        SUSTAINABILITY                                already carried out pioneering work in this
                                                                                                                               area at its sites and established corres­
                                • Job security                                 The dialogue with internal and external       ponding processes. For example, "waste
                                • Working climate                              stakeholders shows time and again             products" such as residual wood, wood
                                • Professional development                     that there is a great need to implement       chips and sawdust are processed into
                                  opportunities                                  sustainable processes in companies            high-quality wood-based panels that
                                • Health                                       and society alike.                            meet even the highest quality standards.
                                • Environmental compatibility                                                                Pfleiderer sites such as Baruth in Branden-
                                                                                 Raw materials: Many partners ask about        burg are already implementing a model
04 | STAKEHOLDER RELATIONS

                                After identifying the most important             the origin of the processed wood and          of recycling management.
                                topics, we assess their relevance together       attach importance to the fact that it comes
                                with the stakeholders and transfer them          from sustainable forestry. Pfleiderer has     Our company Heller Holz GmbH in
Stakeholder interests

                                to a clear materiality matrix. This provides     been sourcing its raw materials exclusively   Neumarkt takes over the acquisition of
                                us with a clear overview of the stake­           from sustainable forestry for decades         recycled wood chips from waste wood
                                holders' requirements and can be adapted         and has been certified according to           for chipboard production as well as
                                to changing conditions at any time.              FSC® (licence code C011773) and PEFC™         waste wood for thermal energy generation
                                                                                 (licence code 04-32-0828) since 2007.         at all German locations.                                                                     19
20                                                                                                                                                                         employees and partners must commit

                                                                                                                                                                                                                            Stakeholder interests
                                                                                                                                                                                                                            04 | STAKEHOLDER INTERRELATIONS
                                                                                                                                                                             themselves to comply with the Pfleiderer
                                                                                                                                                                             Business Conduct Guidelines. We always
                                                                                                                                                                             act in accordance with the law and our
                                                                                                                                                                             internal ethical rules and principles. Our
                                                                                                                                                                             compliance system comprises clear
                                                                                                                                                                             guidelines, procedures and processes,
                                                                                                                                                                             which we communicate further in training
                                                                                                                                                                             courses and in our daily business. Con­
                                                                                                                                                                             tinuous monitoring, compliance controls
                                                                                                                                                                             and a whistleblower system support us in
                                                                                                                                                                             ensuring company-wide compliance with
                                                                                                                                                                             our Business Conduct Principles.

                                                                                                                                                                             SOCIAL IMPACT

                                                                                                                                                                             Pfleiderer fulfils its social responsibility
                                                                                                                                                                             above all with many selective activities
                                                                                                                                                                             around the company sites. These include
                                                                                                                                                                             measures to promote the local cultural
                                                                                                                                                                             and sports landscape as well as support
                                                                                                                                                                             for social and environmental campaigns
                                                                                                                                                                             or the local fire brigade.

                                  We also endeavour to maintain our safety        entire wood-based materials production         with appreciation and respect. Fair
                                  equipment and organisational measures           to emission class E 0.5 and has the Blue       working conditions, which focus on
                                  at a high level at all times in order to        Angel certification for large parts of its     aspects such as team spirit, health and
                                  prevent damage or limit its effects as far      range.                                         satisfaction, ensure a high level of
                                  as possible.                                                                                   identification with Pfleiderer, long-term
                                                                                  Recruitment and promotion of                   loyalty to our company and low staff
                                  All inbound and outbound transports are         em­ployees: At all Pfleiderer sites, we        turnover.
                                  handled by our partner JURA-Spedition           maintain a culture of trust based on
                                  GmbH in Neumarkt. The entire JURA fleet         acting on one’s own responsibility. Our        Labour safety: Maximum labour safety is
                                  meets the fuel-saving and low-emission          employees are given extensive oppor­           guaranteed by regular safety training
                                  Euro 6 standard. With well thought-out          tunities to develop their skills and talents   courses such as our hands-on training
                                  logistics management, we achieve a high         and are encouraged to make suggestions         courses and "5 Minutes for Safety" as
                                  level of delivery performance and at the        for process improvements through a             well as our "One-Safety" programme:
                                  same time reduce resource consumption,          bonus system. In addition to training          employees are encouraged to report
                                  transport routes and emissions to a mini-       courses on their work and job security,        weak points and sources of danger so
                                  mum. In this way, we also implement our         we promote the environmental aware-            that they can resolve them. All counter-
                                  high standards of environmental compati-        ness of the people who work for us             measures taken are documented. The                   Success is achieved
04 | STAKEHOLDER INTERRELATIONS

                                  bility in the area of logistics.                through training courses. Further training     efficiency of our occupational safety         by pursuing a consistent
                                                                                  can be provided through internal or            measures is quantifiable: In 2019, the
                                                                                                                                                                               goal that is the result of
                                  Board gluing and emissions: When                external seminars.                             number of accidents and associated sick
                                  gluing panels, Pfleiderer relies on formalde-                                                  days was significantly reduced across         the overlap of stakeholder
Stakeholder interests

                                  hyde-reduced and formaldehyde-free              Working climate: From training to indi­        all Pfleiderer sites.                         requirements.
                                  solutions, such as the LivingBoard, which       vidual career planning and retirement:
                                  has been a synonym for sustainable              Pfleiderer attaches great importance to        Corporate responsibility and com­             Stefan Göldner,
                                  construction for over four decades. In the      a sustainable relationship with its            pliance: Responsible action is the basis      Head of Communication
                                  meantime, Pfleiderer has converted its          employees and treats each individual           of our business. For this reason, all our                                                   21
22

     05

          SUSTAINABILITY
          MANAGEMENT
          "We live up to our responsibility for people,
          the environment and resources in many different
          ways. To this end, we continuously review
          and improve the efficiency, currency and
          implemen­tation of our complex sustainability
          and environmental management."

          Dr. Frank Herrmann, Chief Operating Officer, Pfleiderer Group
                                                                          23
24

                                                                                                                                                                                              Future needs sustainability
                                                                                                                                                                                              05 | SUSTAINABILITY MANAGEMENT
     FUTURE NEEDS SUSTAINABILITY

     Any company that wants to operate successfully in the market today                        We want our customers to be able to rely         RESEARCH & DEVELOPMENT
                                                                                               on Pfleiderer's high-quality products and        IN THE SERVICE OF THE ENVIRONMENT
     in a future- and customer-oriented manner has no way around
                                                                                               services with a clear conscience. That is
     sustainability strategies – and that across the entire value chain.                       why we set the bar very high for the             Our internal research and development
                                                                                               common standards with our partners.              activities also focus on sustainability.
                                                                                               From the origin of the raw material wood,        The goal is,
                                                                                               through environmentally friendly proces-         • to achieve an optimal balance between
     CHANGED CONSUMER AWARENESS                  generates a growing demand for sus­-          sing, to transport and recycling, these            ecology and economy
                                                 tai­nably produced goods, which we as         principles are consistently reflected in all     • reduce wood consumption through
     In view of the increasing shortage of raw   a company are happy to meet.                  areas of the company.                              intelligent recycling
     materials, the overexploitation of nature                                                                                                  • and at the same time to guarantee the
     and the consequences of climate change,     SUSTAINABILITY GUIDES                                                                            highest, long-lasting product quality
     sustainable thinking is increasingly        ALL OUR ACTIONS                               RAW MATERIALS FROM
     becoming a question of survival for our                                                   SUSTAINABLE PRODUCTION                           "With the multi-award-winning Pfleiderer
     entire civilisation.                        Since its beginnings, Pfleiderer has relied                                                    BalanceBoard, we have succeeded in
                                                 entirely on the renewable, natural and        At Pfleiderer, sustainability and environ-       achieving an outstanding symbiosis of
     Current developments have also brought      healthy material wood. Sustainable thinking   mentally conscious action begins with            economy, quality and ecology: thanks to
     about a change in public thinking: Many     has therefore always played a major role      the purchase of the valuable raw material        the high proportion of particularly fast-
     people have become more sensitive           in Pfleiderer's corporate philosophy.         wood. The strictest selection criteria apply     growing raw materials, we have been able
     to environmental issues and are striving    Sustainability is part of our high quality    here, and we use material from sustainable       to significantly reduce wood consump­
     to make their everyday lives more           standards and thus also firmly integrated     forestry without exception.                      tion. Although the board is 30 % lighter
     sus­tai­nable. This new social awareness    into our continuous improvement process.                                                       than comparable solutions, it is extremely
                                                                                                                                                stable, but also easy to work and process",
                                                                                               RECYCLING MANAGEMENT AS A                        says Dr. Christian Bohn, project manager
                                                                                               SUSTAINABLE MODEL FOR THE FUTURE                 for BalanceBoard product development.

                                                                                               With the growing environmental aware­
                                                                                               ness, the demand for a holistically oriented
                                                                                               circular economy is also becoming in­
                                                                                               creasingly important. Here too, Pfleiderer
                                                                                               is facing up to its corporate responsibility
                                                                                               and has been working for many years to
                                                                                               establish its production processes at all
                                                                                               its sites as a regenerative system and to
                                                                                               optimise them continuously. Our goals are
                                                                                               in this process:                                          Effective recycling
                                                                                                                                                  and reuse management
                                                                                               • Reduction
                                                                                                         of the use of resources
                                                                                                                                                  thus provides Pfleiderer
                                                                                                 and energy
                                                                                               • Avoidance of air, water and soil pollution
                                                                                                                                                  with additional sales
                                                                                               • Minimising
                                                                                                          emissions and waste                   arguments in a changing
                                                                                                 production                                       market.

                                                                                               In this way, we want to make material and          Carsten Möser-Benz,
                                                                                               energy cycles even more efficient in the           Head of Wood Purchasing
                                                                                               medium term and ultimately close them.                                                         25
26                             LONG-TERM PRODUCT LIFE CYCLE
                                 AND COMPREHENSIVE RECYCLING

                                 With its durability and sensible recycling
                                 strategies, wood as a raw material offers
                                 the ideal conditions for establishing an
                                 effective recycling management system.

                                 With innovative technologies and sophis-
                                 ticated recycling management, Pfleiderer,
                                 together with external partners, succeeds
                                 in creating new products from recycled
                                 wood that effortlessly meet the highest
                                 health and quality standards. To achieve
                                 this, it is at first necessary to separate
                                 foreign materials such as metals, non-
                                 metals, plastics, sand and stones from
                                 the wood. Through careful sorting and
                                 controls we ensure that only unpolluted
                                 waste wood is used for material recycling.
                                 In this way Pfleiderer guarantees environ-
                                 mentally friendly, healthy and high-quality
                                 engineered wood – first-class products
                                 even in the second life cycle of the green
                                 raw material.

                                 SUSTAINABILITY IN PRODUCTION
                                 AND LOGISTICS

                                 As a sustainably positioned company,
                                 Pfleiderer strives to use energy as
                                 efficiently as possible in its production
                                 processes. By-products such as grinding       our own combined heat and power plants        CERTIFICATIONS: SAFETY AND                    Our environmental management system
                                 dust and materials that are unsuitable        in Neumarkt, Gütersloh and Baruth.            TRANSPARENCY FOR OUR CUSTOMERS                is certified according to DIN EN ISO 14001
                                 for material use are thermally reused in                                                                                                  and ISO 50001. We are also member of
                                                                               The energy plants used here work ex­          Pfleiderer underlines its commitment to       the Quality Association for Wood-based
                                                                               clusively with wood that is no longer         sustainability and environmental protec­      Panels and are certified according to
                                                                               suitable for the material cycle – and with    tion by providing complete certification of   PEFC™ and FSC®. An overview of all certi­
                                                                               above-average efficiency, since we as a       all processes along the entire value chain.   fications and quality seals can be found
                                           Pfleiderer produces                 manufacturer of wood-based materials          After all, we attach great importance to      on page 33.
                                   high-quality, individual wood-              require energy and heat throughout the        making our efforts in sustainability
                                                                               year and can use this for drying the chips    management as efficient as possible for
                                   based materials almost
05 | SUSTAINABILITY MANAGEMENT

                                                                               and heating the presses.                      customers and partners.
                                   energy self-sufficiently and
                                   without releasing additional                In logistics, Pfleiderer's environmentally    The environmental compatibility of our
Future needs sustainability

                                   CO2 – for quality with a clear              friendly fleet also focuses on the careful    means of production, processes and
                                                                               use of our resources. All the trucks in our   processed materials is a matter of course
                                   conscience!
                                                                               JURA Spedition fleet comply with the          for us. In the production of chipboard and
                                   Olaf Maasjost,                              clean and fuel-efficient Euro 6 emissions     fibreboard, we avoid the use of conser­
                                   Manager of the CHP plants                   standard, and empty runs are avoided by       vation agents, wood protection agents
                                                                               means of well thought-out route planning.     and organic solvents.                                                                      27
28

                                                                                                                                                                                                                                                                         Cascade use
                                                                                                                                                                                                                                                                         05 | SUSTAINABILITY MANAGEMENT
                                 SUSTAINABLE                                                                                                                Sustainable cascade use
                                                                                                                                                            • increases
                                                                                                                                                                        the added value
                                                                                                                                                                                                      Wood is becoming increasingly attractive
                                                                                                                                                                                                      as a raw material – not only for timber

                                 CASCADE USE                                                                                                                  (factor 4 - 9)
                                                                                                                                                            • secures jobs
                                                                                                                                                              (factor 5 - 10)
                                                                                                                                                                                                      construction, furniture and interior design.
                                                                                                                                                                                                      Sustainable forestry alone is therefore
                                                                                                                                                            • enables innovations                   unlikely to be sufficient in the coming
                                                                                                                                                            • helps the climate
                                                                                                                                                                                                      decades to meet the enormous demand
                                                                                                                                                                                                      that exists in a wide range of industries.
                                                                                                                                                                                                      One solution to this dilemma is cascade
                                                                                                 Wood that can no longer be recycled is
                                                                                                 used thermally in our CHP plants.
                                                                                                                                             07                                                       utilisation – i.e. the multiple use of wood as
                                                                                                                                                                                                      a resource over several stages from har­
                                                                                                 By dispensing with fossil fuels as far as                                                            vesting to recycling and energy recovery.

                                                                            05
                                                                                                 possible, we obtain the energy and heat
                                 At the end of their service life,                               we need in a climate/CO2-neutral way.
                                 the used wood and wood-based                                                                                                                                         A study by the Chair of Wood Science at
                                 products are dismantled and
                                 processed in accordance with                                                                                                                                         the Technical University of Munich has
                                 the Waste Wood Ordinance.

                                 • Disposal
                                          and processing                                                                                   01
                                                                                                                                                       01   The potential of wood products
                                                                                                                                                            for climate protection is high.
                                                                                                                                                                                                      proven the high savings potential of
                                                                                                                                                                                                      cascade utilisation: One ton of waste wood
                                   of the mineral and metallic                                                                                              CO2 storage of wood:
                                   components.                                                                                                              • 1 kg wood stores approx. 1,8 kg CO2
                                                                                                                                                                                                      was first processed into sawn timber and
                                                                                                                                                            • 1 m³ wood stores approx. 1 to CO2      then twice into chipboard. The same
                                 • Testing
                                         for chemical and
                                   organic pollution                                            07                                                          CO2 stored in wood remains bound          products were also made from fresh wood
                                                                                                                                                            after harvesting for the entire           for comparison. In the cascade use,
                                                                                                                                                            service life.
                                                                                                                                                                                                      the efficiency of the use of resources was
                                                                                                                                                                                                      significantly higher – among other things
                                                                                                                                                                                                      due to the reduced use of fresh wood and

                                                                                                                                                       02   Logs are delivered to sawmills –          the smaller space requirement. Never­

                                 04
                                                                                                                                                            cutting of bars and planks.
                                                              05                                                                                                                                      theless, the potential for the material use
                                                                                                                                                            Thinning and residual wood                of waste wood is mostly not yet fully
                                                                                                                                                            flows into the production of wood-
                                                                                                                                                            based materials.                          exploited today – because this requires
                                                                                                                                                                                                      new processes to be set up along the
                                 Finished wood                                                                                                                                                        entire value-added chain, from production
                                 and wood-based

                                                                                                                                                            03
                                                                                                                                                                                                      and use to recycling and reuse.1
                                 products are                                                                                                     02                         Sawdust and sawing
                                 supplied to                                                                                                                                 residues are used
                                 consumers via                                                                                                                               as pre-consumer
                                 trade, craftsmen                                                                                                                            recycling material
                                 and industry.                                                                                                                               for the production
                                                                     04                                                                                                      of wood-based
                                                                                                                                                                             materials.

                                                                                                                                   06

                                                                                                                                   03                       Our average wood mix:
                                                                                                                                                            • P
                                                                                                                                                               re-consumer material: 25 - 30 %
                                                                                                                                                            • Post-consumer material:      40 %
05 | SUSTAINABILITY MANAGEMENT

                                                                                                                                                            • Co-products:            30 - 35 %
                                                                                                                                                                          ➜ Recycling rate 2/3

                                                                     Only tested wood of the highest quality
                                                                     classes A1 and A2 is re-used as
                                                                     post-consumer recycled material for
                                                                                                                   06
                                                                     the production of wood-based materials.
Cascade use

                                                                                                                                                                                                     1 Michael Risse, Gabriele Weber-Blaschke and Klaus Richter:
                                                                                                                                                                                                      Resource efficiency of multifunctional wood cascade chains
                                                                                                                                                                                                      using LCA and exergy analysis, exemplified by a case study for
                                                                                                                                                                                                      Germany, Resources, Conservation & Recycling 126, 141-152, 2017.
                                                                                                                                                                                                      Download link: http://dx.doi.org/10.1016/j.resconrec.2017.07.045   29
30   CIRCULAR ECONOMY IN PRACTICE                                                                                                                To reliably meet the highest standards,

                                                                                                                                                                                                   Circular economy | Cascade use in practice
                                                                                                                                                                                                   05 | SUSTAINABILITY MANAGEMENT
                                                                                                                                                 foreign materials such as metals, non-
     Pfleiderer recognised years ago that          quality are created by sorting, gluing,                                                       metals, plastics, sand and stones are first
     cascade utilisation and recycling manage-     compacting and pressing. They are ideally                                                     separated from the wood. Through careful
     ment are the only economic models that        suited for a wide range of applications in                                                    sorting and controls, we ensure that only
     can guarantee sustainable production of       interior design and furniture production.                                                     uncontaminated waste wood is supplied
     high-quality wood products in the future.                                                                                                   for material recycling. In this way, Pfleiderer
     This is why we have already implemented       Integrated biomass power plants generate                                                      guarantees environmentally friendly,
     intelligent wood cycles at our sites today.   the electricity and heat required for drying                                                  healthy and high-quality engineered
     Sawing residues from the sawmill and          and pressing the wood at our Baruth,                                                          wood – first-class products even in the
     recycled wood are therefore collected at      Gütersloh and Neumarkt sites. The energy                                                      second life cycle of the green raw material!
     our locations and prepared for further        and heat generated there flows into our
     processing. In the production process,        production processes. Surplus electricity
     new wood-based panels of the highest          is fed directly into the public electricity                                                   NO RESTRICTIONS ON
                                                   network.                                                                                      PRODUCT QUALITY

                                                   The final step in the sustainable use of       Through cooperation with innovative            In the past, there was often concern
       Quality products from "waste“               waste wood is its energetic recycling.         partner companies such as HDF Recycling,       about whether products could actually
                                                   At the Baruth site alone, Pfleiderer, as a     with eight locations in the Netherlands        meet the highest quality standards if the
       Right from the start and since 2000
                                                   certified waste management company,            and others in Germany, furniture manu­         material was used several times. Today,
       as a certified waste management com­
                                                   converts up to 250,000 tons of waste           facturers, DIY stores, recycling centres,      Pfleiderer guarantees that only tested
       pany, Pfleiderer has been com­mitted
                                                   wood or plywood into thermal or electrical     joineries, manufacturers of made-to-           wood of grades A1 and A2 is reprocessed
       to the sustainable recycling of wood
                                                   energy every year. For this purpose, we        measure parts and other users are              as post-consumer recycled material
       waste. When trees are processed into
                                                   use combined heat and power plants and         actively integrated into the recycling         into wood-based materials. Our wood mix
       bars in a sawmill, for example, wood
                                                   do almost completely without fossil fuels.     cycle. In cooperation with Green Waste,        consists of 100 % recycled material.
       chips and sawdust are produced in
       addition to thinning and residual           In this way we produce heat and electri­       a well-known provider of modern                The average proportions are:
       wood. These are not burned or dis­          city in a climate-neutral way. In addition,    recycling management, HDF is respon­
       posed of at Pfleiderer, but are used        the company operates its own wastewater        sible for taking back and processing old          5 - 30 % pre-consumer material
                                                                                                                                                 • 2
       in the production of wood-based             treatment plant in Baruth, where the           and waste wood for further processing          • 		   40 % post-consumer material
       materials – for example in the manu­        process water produced is purified.            in Pfleiderer's production plants.                0 - 35 %	coupling products (thinning,
                                                                                                                                                 • 3
       facture of wood fibre boards. Com­                                                                                                                     industrial and waste wood)
       pared to chipboard, wood fibreboard                                                        In order to maintain the highest quality
       is characterised by its finer, more         ADVANTAGES OF CASCADE USE                      standards, Dutch HDF Recycling works
       uniform structure, which makes it                                                          in accordance with the German Waste
       particularly stable and allows it to be     The cascade use primarily helps to relieve     Wood Ordinance and has all the relevant
       processed with precision. In contrast       the burden on sustainable forestry and         certifications.
       to natural wood panels, it is possible      save resources through the multiple
                                                                                                                                                   Pfleiderer Arnsberg
       to always achieve the same product          processing of wood – the added value           Particular challenges arise here, for
       properties with wood fibres.                thus increases by a factor of 4 to 9. Since    example, in the sorting and preparation          ... produces Duropal HPL, compact
                                                   wood is also a very efficient CO2 storage      of waste wood in accordance with the             boards and HPL elements from core
                                                   medium, about one tonne of CO2 per             Waste Wood Ordinance for reuse. Here,            and decorative papers. The wood
                                                   cubic metre of wood remains bound over         mineral and metallic components must             for the papers used comes from sus-
                                                   the extended service life of the valuable      be removed and recycled. Chemical and            tainable forestry.
                                                   material.                                      organic impurities must also be excluded
                                                                                                                                                   • FSC® licence code C011773
                                                                                                  in order to achieve optimum and high-
                                                                                                                                                   • PEFC™ licence code 04-32-0828
                                                   But cascade use also opens up new              quality results in secondary recycling.
                                                   perspectives from a business point of                                                           Production is in accordance with
                                                   view: Cascade use not only secures             Thanks to innovative technologies and            ISO 9001, ISO 14001, ISO 50001 and
                                                   jobs, but also inspires technological          a sophisticated recycling management             ISO 45001. The Duropal product range
                                                   inno­vations and new developments in           system, materials made from reused wood          is widely certified with the Blue Angel /
                                                   pro­duction processes.                         effortlessly guarantee the proven Pfleiderer     UZ76.
                                                                                                  standards in terms of quality and health.                                                         31
32

                                                                                                                                                                                            Locations | Certifications
                                                                                                                                                                                            05 | SUSTAINABILITY MANAGEMENT
     Pfleiderer Baruth                      Pfleiderer Gütersloh                     Pfleiderer Leutkirch                                 Pfleiderer Neumarkt

     ... produces medium and high-density   ... produces chipboards which are        ... produces chipboards as well as                   ... produces chipboards for on-site
     fibreboards. The wood used for         finished into decorative panels          Duropal HPL and compact boards. The                  coating and for construction pur­
     production are mainly waste and        directly on site. The wood used come     raw boards are finished on site into                 poses. The wood used come from
     by-products from the neighbouring      from sustainable forestry as well as     decorative boards, elements or Prime-                sustainable forestry and pre- and
     sawmill. The integrated and highly     pre- and post-consumer recycling of      Board lacquer-finished boards. The                   post-consumer recycling of grades
     efficient CHP plant provides energy    grades A1 and A2. The integrated and     wood used comes from sustai­nable                    A1 and A2. The integrated and highly
     and heat.                              highly efficient CHP plant provides      forestry as well as pre- and post-                   efficient CHP plant provides energy
                                            energy and heat.                         consumer recycling of quality classes                and heat.
     • FSC® licence code C011773
                                                                                     A1 and A2.
     • PEFC™ licence code 04-32-0828        • FSC® licence code C011773                                                                   • FSC® licence code C011773
                                            • PEFC™ licence code 04-32-0828          • FSC® licence code C011773                          • PEFC™ licence code 04-32-0828
     Production is in accordance with
                                                                                     • PEFC™ licence code 04-32-0828
     ISO 9001, ISO 14001, ISO 50001,        The production is carried out                                                                 The production is carried out accor-
     EfbV and ISO 45001 and the fibre-      according to ISO 9001, ISO 14001,        Production is in accordance with                     ding to ISO 9001, ISO 14001, ISO 50001,
     board StyleBoard MDF plus has          ISO 50001, EfbV and ISO 45001.           ISO 9001, ISO 14001, ISO 50001 and                   EfbV and ISO 45001. The coated
     been awarded the Nordic Swan.          The coated DecoBoard is certified        ISO 45001, and the coated DecoBoard                  LivingBoard and the coated Deco­
                                            with the Blue Angel / UZ76 and the       and HPL products have been awarded                   Board have been awarded the Blue
                                            C2C certificate.                         the Blue Angel / UZ76. PrimeBoard                    Angel / UZ76 and the C2C certificate.
                                                                                     and DecoBoard are awarded the C2C
                                                                                     certificate.

                                                                                   OUR CERTIFICATIONS

                                                                                   Defined processes ensure transparency and clarity. Only in this way can we
                                                                                   work with the greatest possible care and responsibility. The certifications
                                                                                   we have already achieved help us to improve continuously. Here you will find
                                                                                   an overview of our current certificates:

                                                                                                               ISO 9001   ISO 14001   ISO 50001    FSC ®      PEFC™       EfbV      ISO 45001

                                                                                   Arnsberg                                                                                       

                                                                                   Baruth                                                                                        

                                                                                   Gütersloh II                                                                                  

                                                                                   Gütersloh III                                                                                  

                                                                                   Leutkirch                                                                                      

                                                                                   Neumarkt II                                                                                    

                                                                                   Neumarkt III                                                                                  

                                                                                   FSC ® license code: FSC-C011773
                                                                                                                                                                                            33
34

     06

          SUSTAINABLE
          PRODUCT POLICY
          "As one of the leading wood processing companies
          in Europe, Pfleiderer recognises its function as a role
          model not only for the industry but for society as
          a whole. The promotion of environmentally friendly
          production methods and the implementation of fair,
          healthy and safe working conditions are therefore
          integral parts of our sustainability policy.“

          Stefan Zinn, Chief Commercial Officer, Pfleiderer Group

                                                                    35
36

                                                                                                                                                                                                        Product responsibility
                                                                                                                                                                                                        06 | SUSTAINABLE PRODUCT POLICY
     OUR PRODUCT RESPONSIBILITY

     We continuously monitor and evaluate our products and strive for                                                                                   OPEN COMMUNICATION AS A DRIVER
                                                                                                                                                        OF THE SUSTAINABILITY IDEA
     continuous improvement of our manufacturing and distribution
     processes. With our high quality standards we want to achieve the                                                                                  We consider it to be part of our product
     greatest possible product benefit for our customers and reduce                                                                                     responsibility to act with the greatest
     unavoidable environmental impacts.                                                                                                                 possible transparency towards all stake-
                                                                                                     CUSTOMER-ORIENTED CATALYST FOR                     holders and to disclose our sustainability
                                                                                                     SUSTAINABILITY                                     strategies to the general public. We there-
                                                                                                                                                        fore maintain a continuous dialogue with
     The pursuit of sustainability is particularly   LivingBoard, which is still one of the most     For us, the starting point for all activities is   customers, suppliers, employees, autho­
     tangible in Pfleiderer's high-quality and       successful "classics" in the field of sustai-   always the most perfect possible fulfil­           rities and the public and are willing to
     durable products. For customers who value       nable construction today. Since the "initial    ment of all customer requirements – always         provide information on the environmental
     products that are produced in an environ-       spark" with LivingBoard, Pfleiderer has         linked to the question: "How can the               impact of our manufactured products and
     mentally friendly way and are healthy to        been continuously developing manufac­           desired product properties be realised             the services we offer.
     live in, the long-standing and consistent       turing processes and the product world          with sustainable resources and pro­
     focus on ecology offers many advantages.        with the aim of producing the highest           cesses?" Already during the development
     More than 40 years ago, Pfleiderer intro­       quality with minimum impact on nature           of new products and manufacturing pro-
                                                                                                                                                          Our responsibility
     duced the formaldehyde-free glued board         and the environment.                            cesses with which we can meet customer
                                                                                                     requirements, we test how environmentally            We are continuously driving forward
                                                                                                     friendly they will be. We always look at             developments. Our motivation is to
                                                                                                     the processes as a whole. But of course              meet customer requirements with
                                                                                                     it is not enough for us to implement sus­­           maximum sustainability. We achieve
                                                                                                     tai­nable processes in-house. That is why            this goal with
                                                                                                     we also oblige our suppliers and contrac-
                                                                                                                                                          •         maximum customer orientation
                                                                                                     tors to a sustainable and careful handling
                                                                                                                                                          •        high quality products
                                                                                                     of the environment, energy and other                 •   e     xcellent services
                                                                                                     resources.                                           •   outstanding consulting competence
                                                                                                                                                          •    employees and partners acting
                                                                                                     Furthermore, as a company we do not only                   responsibly
                                                                                                     see our economic interests, but also un-             •     c   ompany-wide ecologically aligned
                                                                                                     derstand the pursuit of sustainability as                  processes
                                                                                                     a social duty. With sustainable products             •        renewable raw materials
                                                                                                     we not only meet the growing demand                  •     energy and resource efficiency
                                                                                                     for environmentally friendly solutions.              •      closed-loop recycling models
                                                                                                     With our commitment to climate and the               •       cascade usage models
                                                                                                     environment, we also act as a catalyst for           •        recycling
                                                                                                     the sustainability idea in society – and             •        resource and route-optimised
                                                                                                     inspire others to think about models of                         logistics concepts
                                                                                                     recycling management, cascade use,
                                                                                                     energy and resource efficiency or climate-
                                                                                                     neutral business practices. Together with
                                                                                                     our customers, we also often first create                      Our videos on this topic:
                                                                                                     awareness of what can be achieved in
                                                                                                                                                                    https://www.youtube.com/
                                                                                                     the construction and furniture sector with                     user/PfleidererChanel
                                                                                                     sustainable means.
                                                                                                                                                                                                        37
38   SUSTAINABILITY BEGINS WITH                                                                     Together with our partners in wood

                                                                                                                                                                                                         Sustainable raw materials
                                                                                                                                                                                                         06 | SUSTAINABLE PRODUCT POLICY
     RAW MATERIALS                                              USE OF WOOD                         processing, such as the Green Angels in
                                                               approx. 5 Mio m / Jahr
                                                                                   3                Nuremberg, we ensure that the recycled                            In former times,
     Centuries of overexploitation of nature                                                        used wood we process complies with the                 high-quality waste wood
     mean that important resources will soon                                                        strict regulations of the German Waste
                                                                                                                                                           was simply disposed of,
     no longer be available in sufficient quanti-                                                   Wood Ordinance. For the production of
     ties. Renewable raw materials such as                                                          new boards, we only use wood qualities                 but today it can still be
     wood often represent a sensible alterna­                                                       that are free of biological, chemical,                 processed up to three times
     tive, but are also not available in unlimited                                                  organic, metallic and mineral pollutions.
                                                                                                                                                           into new boards for long-
     quantities. According to expert estimates,                                                     Our professionalism in this respect is
     sustainable forestry will be able to satisfy                                                   documented by our certification as a
                                                                                                                                                           lasting use in furniture and
                                                        approx. 95 % conifer wood and approx. 5 %
     the ever increasing demand for wood for            deciduous wood                              specialist waste management company.                   interior design.
     about another ten years. New concepts are
     therefore needed in Germany and Europe                                                         Through this cycle, wood-based materials               Claus Seemann, Head of
     in order to use the renewable, yet limited                                                     in cascade use sustainably support clima-              Product Management Raw Panels
     resource of wood in a more industrially         within a maximum radius of 200 km – in         te protection. Each cubic metre of wood
     responsible and efficient manner.               Gütersloh, for example, we process spruce      reduces CO2 emissions in the atmosphere
                                                     and pine from the sustainably managed,         by an average of one tonne through photo-
     We are currently experiencing it in Brazil:     FSC-certified Duisburg municipal forest.       synthesis. The weight per cubic metre                where flora and fauna can develop undis-
     there, deforestation of the Amazon rain­        In general, our mix consists of approx. 95 %   varies depending on the type of tree.                turbed. Monocultures and clear-cutting
     forest is being ruthlessly pursued despite      conifer wood and approx. 5 % deciduous         Light wood species reduce less CO2 than              are not tolerated by FSC. Reforestation must
     strong international protests – with disas-     woods. It is important to us that no old       heavier ones. The carbon (C) is stored in            be carried out biodiversely, if possible
     trous consequences for climate change           trees are felled specifically for Pfleiderer   the wood in the form of sugar, which is              with tree species from the region. In order
     and global warming, but also for flora and      boards. By using sawmill by-products,          the tree's basis of life. The oxygen (O2) is         to obtain the FSC seal, Pfleiderer must
     fauna, whose habitat is being irretrievably     used wood as well as thinning and broken       returned to the atmosphere as the basis              not only document all wood purchases
     destroyed by deforestation. Today, we           wood, we produce a 100 % sustainable           of life for humans.                                  and outgoing goods, but also submit to
     know how important forests are for the          product. We process wood waste from                                                                 regular audits by FSC auditors.
     ecological balance on our planet, among         sawmills, forestry and after the product
     other things as a CO2 reservoir. For            has been used, and turn it into new wood-                                                           Even non-FSC-certified wood must come
                                                                                                                CO2 STORAGE
     Pfleiderer as one of the leading wood           based materials that go through another                                                             from sustainable production in order to
                                                                                                           approx. 5 million tons / year
     processing companies in Europe, the use         complete life cycle.                                                                                meet Pfleiderer's sustainability require-
     of renewable raw materials is therefore                                                                                       CO2    CO2    CO2
                                                                                                                                                         ments. Thus, we also use wood from
     a special obligation to act responsibly.                                                                                                            PEFC-certified companies (Programme for
                                                     CASCADE USE PROTECTS CLIMATE                                                  CO2    CO2            the Endorsement of Forest Certification
                                                     AND FORESTS                                                                                         Schemes) and, as a matter of principle,
     WOOD FROM SUSTAINABLE FORESTRY                                                                   1 m3 of wood stores a total of 1 ton of CO2 –      wood that meets the minimum require-
                                                                                                      with about 5 million m3 of wood this corresponds
                                                     Like other resources, wood is becoming           to an annual CO2 storage of 5 million tons.
                                                                                                                                                         ments of the FSC seal with the classifi­
     In total, Pfleiderer processes around five      increasingly rare, while at the same time                                                           cation "Controlled Wood". With the latter,
     million cubic metres of wood every year –       the life cycles of furniture are becoming                                                           the customer can be sure that the product
     a quantity that could fill 2,000 Olympic        shorter and shorter. Just a few years ago,                                                          he has purchased comes from 100 %
     swimming pools with a depth of two metres.      reservations about processing old wood         CERTIFIED SUSTAINABLE                                sustainable forestry and meets all the
     The wood for production is supplied from        and wood waste were very common.               FOREST SITES                                         requirements of the "Chain of Custody".
                                                     Now the realisation is gaining ground that
                                                     high-quality products can be made again        The wood processed by Pfleiderer comes               Pfleiderer also relies on sustainable raw
                                                     from recycled materials. For example,          from sustainably managed and largely                 materials and processes as far as possible
                                                     a disposed solid wood piece of furniture       certified forests. Anyone who wants to be            in its further processing into particleboard.
                                                     can be processed up to three times into        certified by the non-profit organisation             We also ensure that gluing and coating
                                                     quality chipboard before it is finally used    Forest Stewardship Council, founded in               comply with the applicable standards.
                                                     in a combined heat and power plant to          1993, must meet the strictest guidelines:            This is demonstrated by the certification of
                                                     generate energy.                               On the one hand, the forests must be ac-             our products, e.g. with the Blue Angel or
                                                                                                    cessible to people, but on the other hand            according to the Cradle to Cradle Certified™
                                                                                                    they must also offer unmanaged areas                 Products Programme.                             39
40

                                                                                                                                                                                                                              Sustainable quality products
                                                                                                                                                                                                                              06 | SUSTAINABLE PRODUCT POLICY
                                                                                                                                 ELEMENT PRODUCTION FOR
                                  QUALITY PRODUCTS FROM SUSTAINABLE PRODUCTION                                                   SUSTAINABLE INTERIOR DESIGN

                                  The striving to live sustainability in all areas of Pfleiderer Germany                         In our element production, we process         and healthy to live with that they have
                                                                                                                                 our high-pressure laminates and raw           even been certified with the Blue Angel
                                  also permeates the production processes at our sites – and is also
                                                                                                                                 boards into HPL elements – either into        label, according to CARB / CARB II and/or
                                  reflected in our product range.                                                                composite elements with open edges or         according to the Japanese emissions
                                                                                                                                 into postforming elements that can be         standard JIS F**** as well as, most
                                                                                                                                 installed as kitchen worktops, for example.   re­cently, according to the Cradle to Cradle
                                                                                                                                 Raw chipboard or fibreboard can be used       Certified™ Products Programme. Most
                                  All production at our sites is not only         recycling and thinning wood from forestry,     for this purpose – even those with special    products are also available with PEFC™
                                  carried out to the highest quality standards,   we thus achieve a recycling quota of 2/3.      properties such as moisture resistance or     (licence code 04-32-0828) or FSC®
                                  but also in accordance with an environ-         And make the felling of trees for our panels   fire protection. Many of our products are     certification (licence code FSC-C011773).
                                  mental management system certified to           obsolete.                                      so environmentally friendly, sustainable
                                  DIN EN ISO 14001 and ISO 50001. Each
                                  process is continuously optimised under
                                  the aspects of sustainability and environ-      FROM GLUING TO IMPREGNATION –
                                  mental compatibility. In Neumarkt, Güters-      SUSTAINABLE PROCESSING
                                  loh and Baruth, Pfleiderer therefore uses       GUARANTEED
                                  its own combined heat and power plants
                                  for the production of high-quality engi-        Not only with wood, but also in all steps of
                                  neered wood, which are approved and             further processing and refinement, we
                                  operated in accordance with the strictest       attach importance to the use of sustainable
                                  limits in Germany (17th BImSchV). For           materials and production processes. The
                                  the generation of electricity and heat,         gluing of our raw chipboard and fibreboard
                                  by-products from production that are no         is carried out in closed systems and we are
                                  longer usable as materials, such as             continuously researching to improve glue
                                  sanding dust, are thermally recycled. The       formulas. We only use paper for decor
                                  combined heat and power plants work             coating. We process up to 9,000 tonnes of
                                  exclusively with wood, which is no longer       decor paper per year. For impregnation,
                                  suitable for further use in the material        we use melamine resin or a mixture of
                                  cycle. In this way, Pfleiderer succeeds         mela­mine resin and urea to impregnate the
                                  in producing high-quality, individual           paper before it is applied to the chipboard
                                  wood-based materials largely energy             on the laying belt under heat and pressure.
                                  self-sufficiently and without releasing         We produce the resins for the melamine
                                  additional CO2 from fossil fuels.               and phenol impregnation of our high-
                                                                                  pressure laminate (HPL) boards ourselves
                                  Within the framework of cascade use,            to ensure the high durability and homo­
                                  we process wood and derived timber              geneity of the HPL products.
                                  products prepared in accordance with
06 | SUSTAINABLE PRODUCT POLICY

                                  the Waste Wood Ordinance for our quality        Because theoretical safety is not safe
                                  products – free of mineral and metallic         enough at Pfleiderer, we operate a central
Sustainable quality products

                                  components as well as chemical and              analysis department at our Arnsberg site.
                                  organic impurities. Only tested wood of         There we test our boards for impurities,
                                  quality classes A1 and A2 is reused as          organohalogen compounds such as
                                  post-consumer recycled material in the          PCP and chlorine, and measure formalde-
                                  pro­duction of new wood-based panels.           hyde emissions in our own test chambers
                                  Together with production residues from          in order to guarantee the safety of our
                                  the sawmill industry, pre-consumer              products.                                                                                                                                    41
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