Sustainable Practices The Corporation believes in sustainable development – satisfying the needs of today without compromising the environmental resources needed by future generations – thereby sensibly preserving nature’s capital. China’s government is implementing an economic development policy that takes into account energy conservation and protection of the environment. And as a leader in environmental sustainability and corporate citizenship, Sino-Forest takes seriously its responsibility for managing valuable natural resources, and for providing livelihoods to local residents and suppliers. Having a sustainable business model brings multiple benefits to the corporation’s various stakeholders. It saves money and increases profitability; it pleases customers who want to buy products that are environmentally friendly; it fosters innovation that opens doors to new markets, products and services; and it is perceived positively by employees, business partners and public authorities.

Sino-Forest takes seriously its responsibility for managing valuable natural resources, and for providing livelihoods to local residents and suppliers.

Sino-Forest is fortunate to be in a business that depends on  renewable resources. The Corporation can control its supply of raw material, by replacing the trees that it harvests, thereby ensuring that its inventory is always preserved and growing to meet China’s future needs. The volume harvested in any given year typically does not exceed the volume that grows incrementally to maturity in that time. So each year, Sino-Forest harvests only a small percentage of its total timberlands. In addition to being compliant with China’s laws and regulations, Sino-Forest maintains an Environmental Management System (EMS) with policies and procedures designed to ensure responsible management of the ecological, environmental, social aspects of its plantation, trading and manufacturing operations. The system integrates plantation management with conservation of soil and water resources, the protection of biodiversity and natural habitats, and the assessment and improvement of environmental conditions. Certification Sino-Forest is the first commercial plantation operator in China to have obtained the Forest Stewardship Council (FSC) in 2004 certification for its Gaoyao plantation located at Guangdong Province registered under the Jiayao Forestry Development Company. The Corporation is proud to have received this “gold standard” certification program from SmartWood, a program of the Rainforest Alliance authorized by the FSC. The FSC certification is an international trademark recognizing organizations that support the growth of responsible forest management. The FSC authorizes an independent third party forestry certifier to conduct forestry and plantation auditing to certify that forest managers and forest product producers conform to FSC standards. SmartWood is a global nonprofit conservation organization and is recognized as one of the oldest and most extensive certification program in the world. In addition to the FSC certification, Sino-Forest’s Guangxi plantation obtained certification from the International Organization for  Standardization (ISO) in 2002 for its ISO 14001 Environmental Management System and ISO 9001 Quality Management System. Sino-Forest long-term goal is to obtain ISO and FSC certifications at all its plantations. Community Stewardship Sino-Forest’s operating model is very much community-based, whereby the Corporation works in unison with local authorities, professionals and suppliers to produce better land use, forest products, safe and secure jobs, and worker income. The Corporation treats its 500 employees fairly and they are proud to work for a growing, entrepreneurial company that provides them with benefits for their families, skills training and career development. In addition, the third-party service providers engaged by Sino-Forest to operate its forestry plantations employ an estimated 19,000 seasonal workers in local communities.