Alberta Newsprint Company Chain of Custody Co C

Alberta Newsprint Company Chain of Custody (Co. C) Program SFI Chain of Custody Standard Web Site Posting

Why Chain of Custody? § Customers want to purchase paper from sustainably managed forests § Increasing demand from customers § Provides a link from the forest to the endproduct § Verifies that sources in supply chain are Co. C certified 2

ANC Chain of Custody Commitment § ANC endorses the principles of sustainable forest management. § ANC will not purchase fiber from controversial sources, including illegal logging or fiber sources without effective social laws. 3

SFI Chain of Custody § ANC Timber is SFI certified § Some of our chip suppliers are SFI , CSA Forest. Care certified 4

SFI Co. C Requirements § Identify supplier & origin of certified wood § Accounting of fiber input / pulp output § Calculation of certified % paper § Procedures outlined in ANC Co. C Manual t t 5 Roles / Responsibilities SFI documentation Internal Auditing Record Keeping

SFI Certification § Certification by independent - KPMG § Certificate good for 3 years § KPMG audit annually § Notify customers of Co. C claim t SFI labelling entitled to use: l l 6 Off-product marks On-product labels

SFI Spreadsheets § Tracks inputs/outputs monthly t t t § 7 certified chips and logs received certified tonnage paper produced certified tonnage sold monthly Unsold certified credits expire after 1 year

Chain of Custody Processes FIBRE INPUT Chip & Log Receipts 8 Chip Inventory TMP Pulping Process Paper Production Finishing Roll Preparation Shipment to Customer Rail & Truck

Chain of Custody Processes SPREAD SHEET BALANCE Chip Certified Receipts (BDUs) 9 Chips Certified to Pulping (BDUs) Paper Certified Product (FMT) Paper Certified Sold (FMT)

Chain of Custody Processes SFI SALES FLOW SHEET CSR SFI Order Entry 10 Load Shipped (FMT) Bill of Lading Document Shipped as SFI Certified Paper (FMT) Invoice Customer Transfer of Credits