North Pacific is dedicated to striking a reasonable balance between economic pursuit and environmental protection. We believe the key to balance lies in adopting policies of sustainable development.

North Pacific understands that business leadership carries a responsibility to the environment and, in particular, to the worlds' forest lands. While we are not timber producers, do not own timberland and have no logging operations, we are buyers, sellers and re-manufacturers of forest products and building materials. Thus, we are committed to the promotion of conservation of natural resources and the practice of sustainable forestry.

We believe and promote the following principles:

• We will comply with all applicable federal, state and local environmental laws and regulations.
• We are committed to reducing material waste in all our operations, through recycling programs and other reuse practices.
• We will encourage our suppliers to follow good environmental and sustainable forestry practices. We do not support illegal logging and will not knowingly purchase from suppliers who we believe support these practices.
• We are committed to increasing our purchases of wood products from our suppliers who use credible forestry standards such as the Sustainable Forestry Initiative (SFI), Forestry Stewardship Council (FSC), Canadian Standard's Association (CSA) Sustainable Forest Management Standard, Pan European Federation Certification and other equivalent protocols for timber supply and mill operations.
• We will continue to give preference to suppliers that have made a written commitment not to participate in the conversion of Chilean native forests into tree farms.
• We will give preference to certified (using CERTFOR, FSC, SFI, CSA or PEFC standards) Chilean wood, when available, at price parity and equivalent quality.
• We will actively seek to introduce new environmentally friendly products to meet market demands.
• We will stay abreast of developments and issues of environmental importance through active participation in various associations and educational forums and communicate the principles of forest conservation and sustainability to our employees, shareholders and our trading partners.
• We will financially support reasonable environmental initiatives and training to support sustainable forest practices.
• We will integrate environmental considerations into business planning and decision making processes.

The following are some examples demonstrating our commitment to the environment:

• Our hardwood dry-kiln operations are participants of the Sustainable Forestry Initiative (SFI) program.
• Our mill operations use wood chips to fire boilers, reducing the use of fossil fuels.
• Our mill and manufacturing sites meet all applicable air and water quality standards.
• We have a Chain of Custody certification from Forestry Stewardship Council (FSC) for our Industrial Import Division.
• Recycling programs are in effect in all North Pacific locations.
• We distribute various wood-alternative and environmentally friendly products such as composite products, organically treated products, engineered wood and oriented strand board (OSB).
• We offer environmentally progressive, copper naphthenate treated poles nationwide.
• We operate recycling programs for key products and customers.
• We source certified products using accepted protocols (SFI, FSC, CSA, PEFC, CERTFOR, ISO14001 and others) to meet specific customer needs.
• We support the Temperate Forest Foundation and other groups that teach or promote sustainable forestry.
• We are actively involved in the America Forest and Paper Association and other organizations in promoting sustainable forest management.