Counting what matters
OneFortyOne Annual Review 2020
the creative fibre group onefortyone.com OneFortyOne acknowledges the Traditional Custodians of Country throughout Australia and their deep connections to land, water, and community. We pay At OneFortyOne we’re our respect to Elders past and present and extend that respect to all First Nations people today. Reconciliation is an ongoing journey for OneFortyOne dedicated to the ultimate and we recognise that meaningful change takes consistent effort. We are committed to strengthening our relationships with First Nations people and being renewable – timber. guided by their knowledge of and connection to the land on which we live, work, and learn. In Aotearoa New Zealand, Māori communities have a Our forests and mills in strong spiritual connection between people and the land – the wellbeing of one sustains the wellbeing of the other. We strive to work closely in partnership with tangata whenua (people of the land/region), iwi Australia and New Zealand and hapū to be responsible intergenerational kaitiaki (stewards/guardians) of the land where our forests grow. produce wood products
Contents that are used daily.
03 Introduction 04 Year at a glance OneFortyOne harvests and plants millions The Annual Review 2020 is a collection of our 08 Chairman’s Letter of trees every year. These trees form our stories from across the business throughout 10 CEO Report 175,900 hectares of forests, including the past year. thousands of hectares of conservation land It’s the projects we’ve undertaken, the progress that native species of plants and animals call we’ve made, and the things we’re still working Caring for our people home. Our forests also contain important on – a reflection on the year that’s been and 12 Creating and nurturing leaders at every level historical and cultural sites as well as artefacts an opportunity to count what matters. 13 Opportunities for learning leadership skills that we are committed to protecting. 14 Driving diversity across the organisation Our Jubilee and Kaituna Sawmills manufacture 15 Proud to be employing highly skilled timber products such as structural timber, essential workers decking and posts, which are used to build homes, fences, vigneron posts and even 16 Creating a culture of safety at Kaituna Sawmill chicken coops.
Working with our industry OneFortyOne operations are an integral part of our communities. We are major employers in 22 Buy Aussie timber first the regions where we work and we’re proud to invest in supporting our local environment and Striving for better local people. 24 Drones are revolutionising weed management 26 Measuring timber quality without damaging trees 27 Helpful fungi promote tree growth and disease resilience 28 Addressing climate change with carbon farming
Serving our communities 30 Transforming lives on the Limestone Coast 34 Connections and community
Understanding our environment 40 Our fire readiness 44 Our forest certifications 46 Tracking our carbon footprint 49 Operational highlights 52 Leadership Team 54 Board of Directors 55 Corporate Governance 57 Home Safe & Well 58 Modern Slavery
OneFortyOne | 3 Year at a glance Year at a glance
OneFortyOne’s Annual Review 2020 Counting What Matters is working group, and a specific a summary of our operational, environmental and community Green Triangle Nursery Plan. COVID-safe measures to slow highlights over the calendar year. the spread included designated carpooling and working groups, employees bringing In 2020 we focused on: We hope these stories offer a 2020 also highlighted how their own food to site, eating small window into what the resilient we are as a team, outdoors, enhanced cleaning, • The wellbeing of our people forest and timber industries finding solutions and moving and constant monitoring. In • Growing, harvesting and have to offer. forward. Australia some of our skilled manufacturing timber Burmese contractors stepped The strength of people Our business begins in up, breaking down language • Customer service nurseries. By March 2020 we 2020 has taught us to expect barriers to help interpret the needed to work in a COVID- • Supporting the communities the unexpected and to reassess new requirements for their safe environment, so we where we live and work things we take for granted. colleagues. created a COVID response “Our team were impressively resilient,” says Craig Torney, Nursery Manager. “They took all the safety measures seriously and adapted again and again. Thanks to them, we were able to continue working almost completely uninterrupted.” In total, 1.5 million seedlings were despatched to other forest owners, 5.5 million to our Another driver focused project Those working from home on own Green Triangle Forests. We “Our team were impressively resilient. is the Portland-Nelson Road both sides of the Tasman could have 2.35 million cuttings set They took all the safety measures Weighbridge Integration. Every access all services required, aside for 2021 planting. seriously and adapted again and again. truck delivering export logs and we found remote working Focus on safety to our Portland export facility resulted in high autonomy and Thanks to them, we were able to must weigh in. productivity. Our Green Triangle operations are strong contributors to continue working almost completely Previously, a driver was required Mark Jones, Head of the local economy. The uninterrupted.” to disembark their truck and Technology described the forestry supply chain from enter data into the iWEIGH experience, “We’re often planting, tree care, harvest, Weighbridge system. The focused on cutting-edge transportation through to Craig Torney integration project involved technology, but during 2020 manufacturing is complex, Nursery Manager installation of registration we had to concentrate on with many people involved. reader technology to identify the flexibility of day-to-day We employ over 390 people the truck and load, and operational work, and it’s directly with an additional “Our people are generating In response to fatigue-related automatically supply load helped our people develop contractor workforce. better ways to work safer with vehicle incidents in the Green information. Drivers no longer new leadership styles.” greater efficiency, higher yields Triangle, we decided that all need to exit their vehicles on “The quiet of the forest doesn’t Our mill employees continued and lower costs. Like all good heavy vehicles hauling log and the weighbridge, meaning less tell the full story,” says Mick to work on-site throughout the contemporary businesses, we chip would be fitted with life- time taken, less errors, and a Theobald, General Manager lockdowns, quickly adapting are researching automation and saving technology. safer process. Green Triangle Forests. accounting for our footprint. to COVID-safe measures, and Guardian, by Seeing Machines, Working in new ways impressing everyone with their “We actively protect a diverse There is a lot to be proud of.” is a real-time driver fatigue and dedication. range of ecosystems, support “We are driven to ensure that distraction solution combining Thanks to our Technology community recreation, and every person comes to work in-cab intervention (alarm and Team, our operations spend significant time and and goes Home Safe and Well seat vibration) with support and continued during the energy preventing forest fires.” every day and in 2020 had analytics services. The system is lockdowns of 2020. We had several initiatives to improve scientifically proven to reduce many people working remotely, our safety performance.” the occurrence of driver fatigue which required a huge effort to events by 90%. get us all online and upskilled.
4 | OneFortyOne Annual Review 2020 OneFortyOne | 5 Year at a glance 30,000m3 $16m In Australia, the Jubilee Sawmill increased $16 million invested in two non-stop total sales volume by 30,000m3 continuous drying kilns
Kaituna Sawmill operational highlights
Jan - Dec 2020 (*) Jan - Dec 2019 Variance
Log Volume (m3) 116,182 106,804 9%
Average Sawmill Production Rate (m3/hour) 37.2 34.3 18%
Total Sales Volume (m3) 67,196 57,490 17%
Earnings Before Interest, Taxes, Depreciation, $4,681,490 $1,006,843 465% and Amortisation (NZD)
(*) Excluded April 2020 where the mill was shut due to COVID - the remaining 11 months have been annualised Jubilee's Continuous Drying Kiln
Producing renewable This significantly dropped Months later, with the team In New Zealand, we donated resources the unit cost to manufacture. now back on site, the project time and money toward the Importantly, the mill’s financial is due for completion in 2021. construction of the Great Taste During 2020, the teams at performance didn’t come at Trail, which goes through our Jubilee and Kaituna Sawmills “These kilns will give us more the cost of wellbeing. estate. We also sponsored achieved outstanding business consistent, higher-grade the Young Enterprise Scheme performance. Both Jubilee and Overall engagement in health timber,” says Paul Hartung, for local students, as well as a Kaituna exceeded business and safety across all levels of General Manager Jubilee range of educational, sporting performance targets despite the business improved, and Sawmill. “They do so using and environmental causes, each mill experiencing shut Kaituna completed 12 months less energy and with less including the Kea Conservation down periods. Lost Time Injury free. downtime, which makes them Trust, Iron Duke Sea Scouts, an absolute winner for both In Australia, the Jubilee Sawmill Investing in infrastructure the Tasman Rugby Union Club quality and efficiency.” increased total sales volume by and first aid training for Future At Jubilee Sawmill we have 30,000m3 – our highest sales The importance of Foresters. invested $16 million into two ever. Contributing to this was community non-stop continuous drying a combination of increased kilns to replace the old batch With many sports and DIY projects during lockdown, kilns. Each new kiln will be community events cancelled, housing stimulus packages, and 81 metres long, 12 metres supporting local initiatives less imported products coming wide and three metres high. was challenging in 2020. We into Australia. Together the kilns will dry got creative, adapting our Kaituna’s EBITDA (Earnings 500,000 cubic metres of Community Grants with Stand Before Interest, Taxes, timber annually, fuelled by Like Stone to fund projects that Depreciation, and Amortisation) sawdust and wood waste. were ready to go and would result between 2019 and 2020 have an immediate impact. In March 2020, the New increased by $3.68m NZD Zealand based project team Through our partnership with with outstanding performance had been on-site at the Nature Glenelg Trust, we across all key drivers. The Jubilee Sawmill preparing supported volunteers at Mt improvement in performance for construction, but the Burr Swamp to plant 3,000 is largely based on better introduction of travel seedlings around the main production rates across the site restrictions meant the team wetland, and developed whilst keeping costs similar. had to abruptly pack up and a nearby site to facilitate return home. Boandik cultural learning.
6 | OneFortyOne Annual Review 2020 OneFortyOne | 7 Chairman’s Letter
We are proud of our As a closing comment on the achievements in maintaining changes, we acknowledge business-as-usual throughout Linda Sewell for her dedication a period of upheaval. and leadership of OneFortyOne Customers could rely on us, for nearly eight years, and homes were built, and people Lees Seymour who led the were employed. operations in New Zealand. Their contributions will endure OneFortyOne has seasoned and we wish them the very best professionals across all areas in their new endeavours. of the business and has a vibrant succession plan. We continue to be proud of This proved valuable as we the story our company has navigated changes within the to tell regarding sustainability. leadership team during the Inside this review we share year. Andy Giles Knopp was more about our work to promoted to Chief Executive understand our carbon Officer of OneFortyOne footprint and our carbon in September 2020, and a farming pilot projects. Our smooth, successful transition forests have been recertified, has occurred thanks to Andy, providing our shareholders the Executive Leadership and customers with certainty Team, and our Board, all that OneFortyOne products working together. are grown and processed responsibly. In February 2021, we also welcomed the promotions of On behalf of the Board of Anita Drake to Chief Financial Directors, I would like to Officer and Brent Guild to extend a sincere thanks to Executive General Manager Andy Giles Knopp and the New Zealand. OneFortyOne Leadership Team. They have worked OneFortyOne’s Executive extremely hard under trying Leadership Team are: circumstances and navigated • Chief Executive Officer – the company with confidence The theme of this year’s COVID-19 tested us, and Andy Giles Knopp and transparency. As a result, report is Counting What continues to do so. Border we have positive stories to tell • Chief Financial Officer – Matters and these stories closures took a toll on our in this Annual Review. Anita Drake Chairman’s touch upon just a few of the people based in the Green I trust you will find this Annual important aspects of what Triangle, but we responded to • Chief People Officer – Review informative and we matters to OneFortyOne. this with transparent decision Peter Brydon are able to provide insight After an extremely making and by advocating for into some of the many Letter challenging year like 2020, we individual employees affected • Executive General Manager, aspects which are important feel fortunate that we are still by border restrictions. We Australia – Cameron to OneFortyOne. As we move able to reflect on the positives did this while respecting MacDonald through the new year, On behalf of OneFortyOne’s Board that emerged from the year government policy, and by • Executive General Manager, I hope that 2021 brings added and to identify where we need ensuring our business and of Directors, I welcome you to the New Zealand – Brent Guild certainty, unity, and wellbeing to continue to make progress. industry operated safely and for all. company’s Annual Review 2020. could be trusted in a COVID- Leadership team transition Safety has always been our safe environment. is a critical moment for any Sincerely, first priority at OneFortyOne. company. Through thoughtful As the Review will share, our people We operate on the mantra Not all businesses were able hiring and planning over the have remained focused on our core of “Home Safe and Well,” to operate in a business- years, we were pleased we which reflects our passion for as-usual manner during were able to make these businesses throughout 2020. Even the wellbeing of our people, COVID-19. However, soon appointments from within the with the external challenges of the our contractors, and our after the initial shock of business. The Executive Lead partners. This is at the heart the announcement of the Team has the full support of John S. Gilleland year, our employees have served our of OneFortyOne’s wellbeing pandemic, OneFortyOne myself and the OneFortyOne Chairman customers at the highest level, fulfilled statement, which was was in a position to respond. Board of Directors. March 2021 developed to ensure Our products were needed our environmental responsibilities and we hold ourselves and each as people found sanctuary in supported our communities. other to account when it building homes, DIY projects, comes to safety. and renovation.
8 | OneFortyOne Annual Review 2020 OneFortyOne | 9 CEO Report
“Counting what matters is about 2021 an exciting year ahead Our front cover features Jay Ropitini, Sawing Technician 2020 was a year in which we our people taking responsibility for at Jubilee Sawmill. The photo learnt a great deal about our was taken at 6am after an leadership right across the business. team and our business. 2021 8-hour shift and embodies will be about how we use this We believe that good ideas can come the spirit of the team through knowledge to grow. from anywhere and the experts are 2020. Dedicated professionals In 2021 we want to: focused on delivering their the best people to see those concepts very best. 1. achieve industry top quartile come to fruition. This shines through benchmark for wellbeing Thank you to our customers, the stories in the 2020 Annual Review.” to ensure that everyone contractors, communities, goes home safe and well and stakeholders for your Andy Giles-Knopp every day continued support throughout 2020. Our valued relationships Chief Executive Officer 2. drive operational excellence have contributed to our results, across all aspects of the safely and sustainably achieved business and underpin The financial results were The results were positive during extraordinary times. value creation with stronger mixed through the period. particularly through an business performance; and uncertain and disrupted In the first half of the year year. Our performance only 3. continue to build an COVID-19 had the impact represents the hard work, integrated organisation of closing markets as passion, and commitment that the team feel proud to governments dealt with the of everyone in the business. belong to and can thrive immediate health risks of the and realise their potential. pandemic. The China markets My reflection of the year closed through the first quarter is one of immense pride, Andy Giles-Knopp soon followed by the closure pride in the entire team who Chief Executive Officer of our New Zealand operations demonstrated enormous care March 2021 through Stage 4 restrictions in and focus on doing the right the second quarter. thing throughout the year. We had prepared for CEO Report an uncertain economic slowdown and although the first half was weaker than planned, the reality of the 2020 was a year of change. A year of The end of year decision 2020 performance second half of the year was to suspend timber exports Counting What Matters is quite the reverse. change for the globe, the forest and between Australia and about our people taking China was very difficult Through the second half timber industries, and for OneFortyOne. responsibility for leadership for our business and the we have seen buoyant right across the business. Green Triangle supply chain. markets in both Australia We believe that good ideas We saw the conclusion of I am hugely excited about Through 2021 it will be and New Zealand which can come from anywhere an important chapter in what we will achieve with such important that we collaborate have underpinned a strong and the experts are the best OneFortyOne’s history as Linda a talented and capable team. to solve the challenges left recovery. Operations in people to see those concepts Sewell and Lees Seymour by these events for both the forests and mills have been A range of external factors come to fruition. This shines departed from their roles of community and the sector. working at capacity and with long term implications through the stories in the Chief Executive Officer and results have been strong. affected our industry The reality of the COVID-19 2020 Annual Review. Executive General Manager throughout the year. The pandemic hit us in March, and Although there has been New Zealand, respectively. Home Safe and Well is non- 2019/2020 Australian summer we acted quickly to ensure positive momentum across negotiable. From a safety It is a great privilege to bushfires had a devastating that OneFortyOne was in a the domestic markets and the perspective, our goal is to have been appointed impact on lives, communities, strong position to manage outlook is optimistic through achieve industry top quartile Chief Executive Officer of the environment, and through any uncertainties 2021, we concluded the benchmark. OneFortyOne. I want to jobs. The loss of the forest ahead. This work put us in year with the disappointing acknowledge my predecessor, plantation areas in New South good stead throughout the The safety highlight through reality of the trade suspension Linda, for her leadership and Wales sent waves through year as we saw our operations 2020 was performance at the between Australia and China. commitment, setting up the industry. The implications close in New Zealand in the Kaituna Sawmill. The team has The impact on the cessation OneFortyOne for the future. for future timber supply are second quarter and then in made incredible gains with a of timber trade to China has The change in leadership marks significant and propel us South Australia in the final renewed focus on wellbeing had a wide-ranging impact the beginning of an exciting further to achieving the goal of quarter of the year. as well as empowering a on the supply chain, from new time for the company. planting the right trees in the highly engaged team to do our harvest and haulage right places. We will only be the right things. The results contractors to the operations able to meet future demand have been outstanding and at the Port of Portland. and support existing industries in January 2021 the team if we grow more trees. recorded 12 months lost time injury free.
10 | OneFortyOne Annual Review 2020 OneFortyOne | 11 Caring for our people Creating and nurturing leaders at every level
Developing leadership skills and encouraging inclusion are vital ways to create a more dynamic and successful organisation.
Our goal is to make OneFortyOne a great place to work. To achieve this, we have four objectives.
1. 2. 3. 4. Opportunities Build high Accelerate inclusion Create meaning and Be fit for the future performance culture and acceptance purpose for learning and outstanding leaders leadership skills Empowering individuals Create a culture that Engagement across Lead the organisation to deliver great outcomes allows people to be OneFortyOne on par through transition of an for the business and themselves. Managers with aspirational high ageing workforce enabling We need great leaders to create a great Manager Timber, and Warren Wellbeing is an area where embracing change as an surround themselves growth organisations greater technology and Egan, Production Scheduler leadership is paramount. It is opportunity to improve. with diversity to unlock through leaders inspiring right skills in the right organisation – but what does that mean from the Jubilee Sawmill. essential for people to lead A culture of excellence, potential and greater with personal stories place ultimately unlocking by example when it comes and how do we accomplish it? Together they studied adaptability and resilience creativity through a rich and rewarding collective a greater collaborative to safety, and we take every different aspects of the where all employees and diverse culture. intelligence and values business to create value chance to have conversations sawmill such as green mill, strive for excellence in based behaviours. beyond competitors. We’ve been working to create a We aim to expand learning to ensure mindfulness and dry mill, kilns, treatment, and their field. leadership model and program opportunities for people continually improve. Having roundwood. that will develop satisfying at every level of the conversations about safety and career paths for our people. organisation. Building “This project is giving me wellbeing through proactive “Retaining and attracting That means we need excellent The second is about helping relationships is an important in-depth knowledge of the programs are one of our safety It’s important to talk about people to the forestry and leaders, and everyone needs people feel like they belong, cornerstone for future supply chain, from stump to performance metrics. future skills and future timber industry is an area to feel welcome, valued no matter who they are or leaders, and projects between finished timber products,” workforces, and we are “We believe everyone, we’re always aiming to and confident to make their where they’ve come from. teams have been a great way says Conor. “Knowing certainly thinking ahead. regardless of their role, has a improve on,” says Peter own unique leadership The third priority means to foster those relationships more about the production However, we don’t want to responsibility for leadership,” Brydon, Chief People Officer. contribution.” lifting engagement levels in 2020. scheduler role also helps with overlook the incredible skills says Candice Fennell, Head of “We want great people to across the business. The final my customer coordinator Our first priority pushes us to and experience we already Our wood density project Human Resources, Australia. work with us, people who priority is all about innovation, perspective, because I empower every employee to have. Building on our existing is an excellent example: “Whether you have direct are experts in their field, and evolution and adaptability. know more about the mill’s lead, deliver great outcomes expertise is a way to create a it involved Conor Ryan, reports or not, everyone can who are committed to the requirements. Learning the and embrace change. huge depth of knowledge in Customer Co-ordinator from be a leader in some way – we success of the business. The new technologies has also our workforce. the Forests team, working are all leaders of something. All only way to achieve that goal been very interesting.” with Darren Phelan, Planning of our people have a talent we is to make OneFortyOne a can manage and embrace.” genuinely great place to work.
12 | OneFortyOne Annual Review 2020 OneFortyOne | 13 Caring for our people Driving diversity across the organisation
Jenny van Workum talking Jenny van Workum, Human Resources Manager New drones with Chris Ensor, Zealand, says that the way we plant and harvest trees is Log Sales Manager, left, and Christoph Riedel, Forest not how many people might imagine. Operations Planner, Richmond, New Zealand
Nowadays, there are far fewer people behind chainsaws in the forest, in fact most people are operating highly specialised machinery. We need people who have the skills to operate sophisticated technology. We hope our people and future employees can engage with others to make things happen and Jay Ropitini, Sawing to get things done. We are Technician, Jubilee looking for people that are Sawmill passionate about the industry, Proud to be want to learn more, and see a career for themselves at OneFortyOne. employing highly Diversity is one of our areas for improvement. Increasing our diversity will bring significant strengths skilled essential to the business: diverse workplaces offer a wider range of viewpoints, more creative problem-solving workers and superior business performance. Company “We know that if we want to “Our goal is to create a culture that culture is a product of our retain our people and attract When the borders closed between Could we source their skills niche skill sets to keep our mill leadership and principles. younger generations to the allows people to be themselves and easily if our people were running 24 hours a day.” The evolution of workplace business, then inclusion South Australia and Victoria, we were not permitted to cross the for managers to surround themselves The process of identifying culture weaves through the must be a key part of our asked to articulate why our workers border? whole business; it is the company culture,” says with people of different backgrounds to and explaining why some of combination of everyone’s Peter. “Our goal is to create unlock potential and greater creativity.” should be classed as ‘essential’. For This process reinforced how our employees needed to attitude and behaviour. a culture that allows people highly skilled our workforce cross the border gave us an workers living on the Victorian side of is and how tough it would be opportunity to reflect on just to be themselves and for Peter Brydon to replace their training and how many specialised roles managers to surround Chief People Officer the South Australian border, was their themselves with people of expertise. we have in the forest and the work essential to our business? mill. In short, the answer to different backgrounds to “From plantation to mill, the government’s question unlock potential and greater forestry is an innovative, high- was, “Yes, our workers are creativity.” tech industry with the end user essential – and they would be of our wood fibre always front impossible to replace easily of mind when we adopt new if they weren’t permitted to technology,” says Peter, “and cross the border.” our high-tech expertise doesn’t stop at the forest. We rely on
14 | OneFortyOne Annual Review 2020 OneFortyOne | 15 Caring for our people
Creating a culture of safety at Kaituna Sawmill
Health and safety come first at the Kaituna Sawmill in Marlborough, where a fresh approach to culture is setting a new standard for the site.
16 | OneFortyOne Annual Review 2020 OneFortyOne | 17 Caring for our people
“We have very specific measures for behaviour and site culture, Tracy Goss, General Manager and safety direction and Kaituna Sawmill, says it was performance, but the culture element implementation. an opportunity to integrate people, maintenance, plant is difficult to measure and it’s hard to The assessors highlighted the and equipment into the 12 areas we should focus on: determine whether or not you have review process. months without a lost • Leadership the right culture.” “We have very specific time injury • Engagement measures for performance, but February 2020 to Tracy Goss the cultural element is difficult • Legislation and compliance January 2021 without a General Manager Kaituna Sawmill to measure and it’s hard to work-related injury or • Risk assessment determine whether or not you illness that results in time have the right culture.” off work, permanent Using independent Assessing where we needed A new auditing system disability or a fatality assessments, developing to make changes Forklift-only work zones To improve engagement, new systems and changing To begin the process of we introduced an auditing Safety around forklifts was the way we think about improving safety, we invited system at Kaituna which sets identified early on as a safety has revolutionised the independent assessors, out goals for creating a safer significant issue – it was culture at Kaituna Sawmill in both internal and external, culture at the mill. The system crucial to create more Marlborough. It’s an ongoing to Kaituna to observe defines areas of focus and separation between forklifts process and already we’re our operations and make targets areas of opportunity and pedestrians. seeing huge improvements in recommendations on how we whether this is around the processes and attitudes Cilla Ivory, Health and Safety could improve. The assessors training, new employees, around health and safety. Facilitator, says workspaces dispatch or another area of provided a series of reports, were shared and becoming the business. including barriers, safety congested: “Some of the
walkways used to cross over areas where forklifts went, so Home Safe and Well – a powerful pledge now we have guided walkways that keep pedestrians away from forklifts and other OneFortyOne’s company-wide Home Safe and Well program is another key platform for moving plant.” culture shift. “In a couple of really busy Launched in January 2020, the program invites team members – including contractors forklift locations there are visiting the company’s sites – to sign a pledge. Those who have signed have also received sensor-activated super bright a badge to wear to indicate they have endorsed the pledge. LED traffic lights at safe points “The pledge is to ourselves, to our families, and to one another,” says Tracy Goss. “It’s a to alert people that a forklift way of signalling to everyone that we are working towards our common goal of doing all is in the vicinity. They must the things in our control to go home safe and well every day.” wait in the safe area until the light turns green before proceeding.” “When someone wants to speak to a driver on foot, the “Forklift operators do feel The team are creating a shift in “We took the opportunity forklift must be switched off, that it’s keeping pedestrians health and safety culture at the to integrate people, and the driver needs to step out of their operational areas mill by striving for improvement maintenance, plant and out of the machine to walk and that their workspace is and involving the whole team equipment into the review over to the person.” safer,” Cilla says. “They really so that there is a shared process,” says Tracy. appreciate that people are accountability for everyone There have also been respecting their work zone.” going home safe and well at improvements that have the end of each working day. provided clear, highly visual Getting the team engaged “The culture shift means our reminders of the exclusion Increasing engagement meant people look out for each zone around forklifts. For empowering individuals at other and hold each other example, red lights on the side Kaituna to bring forward accountable. You need a of a forklift indicate a three- their ideas with confidence, trusting environment to affect metre exclusion zone around knowing that they will be this type of change so people the machine providing an heard and responded to. extremely effective visual cue feel comfortable enough to to keep your distance. Tracy says there’s been a shift bring issues forward and so in culture: “Ultimately, we they can trust the business can’t do anything without our is going to react in an people. The most important appropriate way.” thing has been to engage Kaituna Sawmill team them at every step of the change process.”
18 | OneFortyOne Annual Review 2020 OneFortyOne | 19 Caring for our people 4.5
EBITDA increased over 4.5 times* the previous calendar year demonstrating that safety doesn’t come at the cost of business performance.
*Earnings Before Interest, Taxes, Depreciation, and Amortisation
Tracy Goss, General Manager Kaituna Sawmill
“There’s been a huge change,” Getting to the bottom of “Not all of these Continuous improvement says Cilla. “Individuals are safety problems improvements have been Health and safety coming up with ideas and an easy journey,” said Chris. There is an old adage – you improvements are a constant they’re recognising hazards “When you’ve got a way that have to go slow to go fast – and process and everyone in the and risks. They will question you’ve done something for this is at the heart of increased Kaituna team is confident they it themselves and raise it with years and then it gets taken productivity at the mill. have the full support of their the HSRs. We’ve always had away from you, it can be a bit colleagues. Everyone wants to HSRs, but until now there Chris Lambert, Kaituna’s frustrating. That’s until you keep each other safe and well hasn’t been this level of Green Mill Manager, says work out as a team how to do at work, because everyone engagement with them.” that despite the increase in it, and it feels natural.” has the right to go home to safety improvements, it hasn’t Bob Ward, a member of the A more productive workplace their families at the end of affected overall productivity. dispatch team, was voted in each working day. A safer site is a more productive as an HSR and says the new “You have to solve problems site, and there has been Tracy said the team is New signs and structures While we’ve had signage for Pledging to come home safe New elected safety officers process has driven a positive at their root cause. It’s human a significant increase in continuing to look at ways to a long time, there is now an and well shift in the culture. nature to try to solve or find To boost safety further, we This year we introduced productivity in response to reduce and eliminate critical extra emphasis site-wide a ‘workaround’ for small made safe spaces more Another important part of elections to appoint site- “I’ve never worked for a safety improvements. Even risks, to record what they’re on new, more eye-catching problems by effectively utilising obvious and dangerous the culture shift has been our wide health and safety company so into their safety, small workarounds add up to doing, and to encourage a signage carrying on with the what’s in front of us. One of the spaces harder to access. company-wide ‘Home Safe and officers. Anyone interested in and I think that’s helped by be surprisingly time-consuming culture that keeps themselves high-impact visual theme.” aspects of our safety work is to Ultra-bright yellow railings Well’ program. Team members, becoming a Health and Safety the long induction process for and problematic, as well as and contractors visiting the stop the workarounds.” guide employees and visitors Even the way we stack timber including on-site contractors, Representative (HSR) is asked new people. On a day-to-day being a safety hazard. site safe. around pedestrian-only zones, has evolved, with stack height sign a pledge committing to to submit a mini resume with level for every process, you An example of the Hayden Watty, an apprentice “We need people working providing a conspicuous decreasing as rows approach taking care of themselves and their registration of interest. have to go through the safe workaround fix in practice timber machinist, started together to make this reminder of where to walk. pedestrian areas. This means their colleagues. operating practices so you’re was in areas of the mill where “Once nominees are collected, working at Kaituna as a stacker happen and we’re proud The new 1.8m guarding pedestrians are only ever aware of how things work. It’s timber traditionally bunches Tracy says the pledges are “to the team then votes via a single five years ago, and said the of the collaboration here fences throughout the mill walking close to the shortest very good.” up or moves off its runners. ourselves, to our families, and transferable vote system.” safety improvements have at Kaituna. Safety is never a also create a strong separation stack of timber. In the past, the workaround to one another. It’s a way of made a big impression. job that’s finished, and we between pedestrians and the The new HSRs meet each was for someone to manually Tracy says the barriers have signalling to everyone that keep ourselves in check by heavy-duty machinery and month to look at different stand on the sidelines and “When I first started here there had even more of an impact we are working towards our remembering that we are plant nearby. projects to focus on, while flip the timber with a metal was more of a culture of ‘she’ll than we expected. common goal of doing all the always only as good as our there’s a second site-wide pole. Now, by finding ways to be right’. The culture is a really Cilla says it’s all designed to things in our control to go last day’s performance.” “People’s perception of risk health and safety meeting improve the performance of big thing for me. Once upon slow you down in a good home safe and well every day.” has started to change. We’re where team members can the machinery so the timber a time it was rush, rush, rush, This article has been adapted from way: “The safety updates starting to see people applying raise any issues or ideas. We doesn’t end up in a bunch, whereas now we’re told to slow an original story by WaltersPR. have created a constant visual risk awareness on a day-to- also increased our induction we’ve removed an unsafe down, work out the hazards, reminder that there are hazards. day basis. They’re empowered process to a full week for ‘fix’ and replaced it with a and then fix it. It’s all changed to speak up and say ‘Hey, every new employee, giving genuinely safer process. now, and everyone looks after that’s not right’.” us more time to explain our each other.” health and safety expectations and processes.
20 | OneFortyOne Annual Review 2020 OneFortyOne | 21 Working with our industry Buy Aussie timber first Timber – it’s hard to imagine life with viewers why Aussie timber The campaign was was a winning product: “It’s not coordinated by the Australian without it. During Australia’s COVID just because it’s the ultimate Forest Products Association. renewable and stores carbon for restrictions of 2020, we were able to It builds on the successful the life of the product, it keeps ‘Timber Framing – The keep our business running safely, retain Australia stronger as well.” Ultimate Renewable’ our people and support the economies Mike Bloomfield, General campaign, which we also where we live and work. Manager of Sales and supported. Marketing, says it’s excellent to “The new campaign carries be part of a project that sees a very pertinent message on It’s sustainable, durable and Launched in July 2020, the Buy the industry working together why it is so important to buy renewable: Aussie timber Aussie Timber First campaign on a collective message. is an incredible natural saw the timber industry come Australian timber,” says Mike. resource that creates jobs, together to send a clear “This was a great example of “It goes right across the supply stores carbon and boosts message to the Australian public the government and industry chain to fabricators, builders and our economy. Throughout about the value of our products. collaborating to bolster the consumers. Buying Australian the ups and downs of 2020’s The campaign included timber and housing industries timber is a great idea at any pandemic, OneFortyOne OneFortyOne, AKD Softwoods, as well as regional employment time, but especially during was able to keep operating Boral, Hyne Timber, Timberlink during a very difficult time,” periods of economic recovery in a COVID-safe way. We Australia and Wespine Industries. says Mike. “It’s so good to see when it provides critical support were hugely grateful to be the industry coming together for regional employment.” A series of videos featured a able to continue providing to showcase all the benefits of wide range of timber industry To find out more visit: employment, supporting our products.” professionals from these www.buyaussietimberfirst. regional economies and organisations, including Nigel com.au/ delivering essential products Boyd, Production Manager at all through the year. Jubilee Sawmill. Nigel shared
PROUDLY AUSTRALIAN MADE 500,000 $23.9 billion Online advertising impressions for the campaign 2018–19 forest industry generated $23.9 billion of in the first three months sales and service income 52,000 People employed in the Australian timber industry
22 | OneFortyOne Annual Review 2020 Source: https://www.agriculture.gov.au OneFortyOne | 23 Striving for better Drones are revolutionising weed management
We’re using drone technology and high resolution imagery to find, map, and manage weeds across our forests.
Weed control is a challenge in One of the problem plants your own backyard, let alone we’ve been working to across 175,000 hectares of eradicate is coastal wattle. forest over two countries. Although a native Australian Invasive plants in a pine plant, when away from plantation are particularly its natural range on the threatening to young pine coast, this weedy tree is seedlings as they try and an invasive pest plant. Left Drone technology establish in the first three untreated, coastal wattle can years. Weeds can often grow outcompete our pine trees, faster than our young trees, and can spread beyond the taking up water and nutrients, plantation to outcompete and blocking out light. other native plants. Using 5km Too many weeds and our drone imagery, we’ve been trees can’t grow to their full able to locate and record direction obstacle sensing capacity – rotation times may existing infestations, using extend and large numbers of this information to coordinate trees could die. weed control. Afterwards, we can re-photograph the With the help of a new drone same areas to see how well in our toolkit, we’re now able 7km our weed management is to more easily and quickly working, and to monitor the identify areas where weeds video transmission range health of the plantation. are causing problems for our forests. We can map out Beyond weed management, entire forests and create high- the drone imagery is used resolution images that show to map elevation and tree us where to focus our weed heights, as well as identifying Dr Danielle Wiseman, 83 hectares Research Manager and reduction efforts. Utilising sensitive areas in plantations Bella Walker, Graduate of native vegetation (inliers) mapped on our estates this technology means we like sinkholes and caves. can map and assess a greater This cost-effective area, access difficult to reach innovation is likely to terrain, and remove some of become a permanent piece the manual labour meaning of equipment, helping us 209 hectares safer and more productive build a detailed map of all weed mapping. our plantations so we can of our plantations mapped quickly pinpoint any emerging problems and find solutions.
24 | OneFortyOne Annual Review 2020 OneFortyOne | 25 Striving for better
Shannon Rutherford, Forestry Operations Planner assessing tree height as part of the Helpful fungi Sherry trial overview Credit Helen Whelan of Bio- promote Protection Research Centre tree growth and disease resilience
Trials are showing that adding Scholarship Forester Heidi Maresch measuring wood Trichoderma root endophytes to seeds density with the IML-Resitool can result in faster growing and more resilient forests.
Michael Lucente, Quality and For the past six years, Together we’ve been When the seed germinates, Results from this trial found Compliance Manager, we OneFortyOne has been taking different mixes of the Trichoderma forms a a significant increase in tree Measuring timber collected valuable information involved in testing how Trichoderma root endophytes symbiotic relationship with height growth and survival – from our logs from the forest Trichoderma root endophytes and seeing whether they can the seedling that is transferred as a result, production through to the sawmill. The might be able to improve enhance the growth of our from the nursery into the plantings have been having trial will help us to better the growth of New Zealand trees, and their resistance to forest at planting. Trichoderma treatments understand what’s growing in radiata pine forests. This has foliar diseases. Trichoderma since 2019. quality without This research is showing our estate. been a group effort, with fungal organisms are found some very encouraging signs, Craig Brown, Forestry our forests hosting trials naturally in soil and on roots; “This trial has been a real including a significant increase Manager says, “We’re excited for the Lincoln University they form mutually beneficial collaborative effort, bringing in survival rate for young trees. about the overall results – Bio-Protection Research relationships with the plants damaging trees together our experts from both It’s also showing significant it’s fantastic to see ways that Centre, supported by the they live on. the forest and mill teams,” says reduction in the incidence innovation, research and Forest Growers Commodity Cameron MacDonald, Executive In tests, living Trichoderma and severity of Dothistroma curious minds can make our Levy and New Zealand Forest General Manager Australia. endophytes are coated onto septosporum, which infects crops stronger, taller and A new resistance drilling tool is helping us to accurately Growers Research. “We know that so many factors seeds in our nursery before trees and leads to low timber more resilient.” measure wood density in standing trees and improve influence the quality of our sowing. yields (and occasionally the Special thanks to Dr Robert final product – genetics, the death of the tree). our overall timber quality. Hill and Dr Helen Whelan of environment and inputs like Along with hosting trials from the Bio-Protection Research fertiliser. Work like this gives us the national series, in 2018 we Centre; Robert Appleton of They may look similar on the Traditionally, wood density The Resitool can be used on a deeper understanding of how ran our own in-house trial of Appletons Tree Nursery; and outside, but on the inside, has been measured using standing trees, and, compared these all interact.” Bio-Protection Trichoderma Forest Growers Research. each pine tree is unique. the increment borer method: to the borer method, is easier We are also complementing applied locally at Appletons Performance and wood extracting cores from trees to use, less invasive, and less this with a study to link wood Tree Nursery. quality are important to and measuring their volume prone to damaging trees. quality attributes of logs to our customers. and mass of wood. This In December 2020, we the products made after technique is accurate but can Wood quality is critical to conducted a successful processing in the Jubilee be tricky to get right and can our business, as we supply pre-trial at our Island Swamp Sawmill. damage the tree. strong, high-grade structural property, measuring logs In the future, it’s likely this type timber for building homes. We are now trialling a new destined for the Jubilee of tool will continue to help Wood density is the weight by tool to gauge wood density, Mill. With a team of 25 boost our understanding of volume of a tree, and higher the IML-Resitool. It uses employees and contractors, the environmental, silvicultural density means a stronger and needles inserted into the led by Jan Rombouts, and genetic factors that stiffer product. tree, measuring resistance to Resources and Planning determine wood density. calculate wood density. Manager, Rob Lindner, Manager Optimisation, and
26 | OneFortyOne Annual Review 2020 OneFortyOne | 27 Striving for better
At this stage there aren’t many “The forestry and timber Key figures for 2020 plantations in Australia that sector plays a key role in are eligible to access the ERF. addressing climate change” Addressing climate To be eligible to participate says Glen. “It’s a win-win. in the ERF, new plantation We’re helping to improve forestry projects must be on environmental outcomes, 200,000 eligible land or converting grow our business, and change with short-rotation plantations contribute to regional Trees planted at Tullich to long-rotation (such as economies.” radiata pine). Plantations that We will be investigating more are already being managed carbon farming opportunities to undertake aren’t eligible under current carbon farming projects in schemes; they are included in 2021, as a natural part of our the national inventory. 23,000 70 core business – reflecting Carbon farming has positive environmental outcomes, Radiata grows fast and rapidly our role as custodians of the People employed absorbs carbon dioxide, even as environment, and advocates tonnes per day during while simultaneously boosting cashflow and creating a young plant, so it’s the perfect for our industry. planting tree for projects like this. Expected CO offset more jobs in the forest and timber industries. 2
In July 2020, we started Carbon farming ticks so many converted to long rotation “The carbon sequestration planting a pilot project on 126 boxes: it’s beneficial for the radiata pine. The timber over the project life is hectares of a 344 hectare planet; it will help Australia produced by the pines will expected to be approximately project at Tullich in Victoria, generate more timber to store carbon for 30 to 100 63,000 tonnes of CO2, which $158,000 Australia. It’s a 25-year-plus supply the increasing demand years, as opposed to the is enough to offset emissions OneFortyOne’s estimated carbon commitment to carbon and it improves cashflow. paper produced by the gum from 13,500 cars each year.” revenue net present value over farming, where the carbon trees which stores carbon We’re working with That carbon is forecast to Carbon farming 15 years based on current modelling sequestered by the trees we for an average of six years. experts from WeAct, which create an income of over (subject to change) plant will generate credits from We earn Australian Carbon specialises in carbon farming Glen Rivers, OneFortyOne $700,000 during the first 15 the Emission Reduction Fund Credit Units (ACCUs) for development; they’ve been Chief Forester, says the years of growth, after which (ERF) for the next 15 years. every tonne of emissions a vital part of getting approval carbon is measured as a the credits cease. We can earn stored through this project. This is just one way we can for our first carbon farming proportion of the biomass of Australian Carbon Credit Units demonstrate how addressing project. The Tullich project the tree, and we will monitor (ACCUs) for every tonne of Each ACCU issued climate change can go was a short rotation blue gum the growth of the trees over emissions stored through this represents one tonne of hand-in-hand with profitable plantation, which we’ve the period of this project: project and sell the ACCUs to carbon dioxide equivalent. business practices. the Australian Government or other business to generate We sell the ACCUs to the additional revenue. Australian government or other business to generate. “We were motivated to additional revenue. begin carbon farming for the environmental and business case benefits,” Glen explains. “We will manage this forest in exactly the same way as we Wood Products The timber produced by the pines will do our other plantation areas. store carbon for 30 to 100 years The extra revenue will help us Transport Carbon Storage get more trees in the ground, Carbon is locked within our products which in the coming years will for their lifetime also help to meet Australia’s growing need for timber.” Timber Processed
Timber Harvested Carbon Units Carbon credit units are earned for every tonne of carbon dioxide emissions stored Dr Danielle Wiseman, OneFortyOne with Vivek Dugar, WeAct Sustainable Forestry/Pine Plantation © CamThompson/ FloodlightMedia for CleanEnergyRegulator/ As trees grow they sequester carbon dioxide. The carbon sequestration over the project life CarbonMarketInstitute is expected to be approximately 63,000 tonnes of CO2, which is enough to o set emissions from 13,500 cars each year.
28 | OneFortyOne Annual Review 2020 OneFortyOne | 29 Serving our communities Transforming lives on the Limestone Coast
For the sixth year running, OneFortyOne is proud to partner with the Stand Like Stone Foundation to help support the Limestone Coast community. The 2020 $50,000 program is supporting a range of initiatives – including firefighting equipment, foodbank deliveries, mental health support, and at-risk youth programs.
Stand Like Stone Foundation “Our vision at Stand Like was established in 2004 by a Stone is to inspire community passionate group of people kindness and courage. from across the region who Partnering with businesses wanted to create a community such as OneFortyOne, fund that would benefit who take such positive and the region in perpetuity. meaningful action to support The Foundation provides a their community, enables us vehicle for those that care to deliver on our mission.” about the region to give The six-year partnership something of real value back between Stand Like Stone to the community. Through its and OneFortyOne has annual grants and scholarships, improved the lives of Stand Like Stone is able to thousands of residents of quickly adapt and react to the Limestone Coast, and the community’s needs, our whole team is proud to from individuals and families, be involved. through to not-for-profit groups and corporations. “We love seeing the difference that Stand Like Stone is Our partnership making in the community Since 2014, OneFortyOne has here,” says Paul Hartung, provided $230,000 in support General Manager Jubilee to the region through Stand Sawmill. “It’s fantastic to be Like Stone. Anne Kerr, Stand able to support their efforts. Like Stone CEO, said these Stand Like Stone is making a grants epitomise the generosity long-lasting positive impact of spirit that is alive and well in here in the Limestone Coast.” the Limestone Coast.
Padthaway Primary School received a grant for the fire fighting equipment. Pictured: Principal Corinne Mowat and student Will Turner.
30 | OneFortyOne Annual Review 2020 OneFortyOne | 31 Serving our communities
Program attendees are often As one early participant, Outback intervention “Participants trek through the Flinders disengaged from school, but Bec, describes it: “Operation changes lives for at-risk participation in an Operation Flinders was my turning point. students Ranges carrying all their own gear in Flinders trek has been shown Before Operation Flinders I to lift their engagement levels felt I wasn’t good enough, One of the 2020 grant a backpack which could weigh up to and increase their chances of I was angry and I didn’t recipients was the Operation 16 kilograms. They sleep rough with studying for longer. care for myself. Operation Flinders Foundation. It Flinders made me feel like I provides at-risk youth with only a basic shelter and they have to A PhD student studied was worthy of success and ‘outback intervention’ – a Operation Flinders in 2014 cook their meals in a campfire for released passion inside me program of demanding and found the intervention also to help others. I was the outdoor challenges to develop the eight days.” reduced short-term offending, first person in my family to attitudes, build self-esteem reduced aggression, enhanced complete university [and now] and promote teamwork. Leigh Aitken wellbeing and confidence, and I’m the social worker in my Operation Flinders engagement office reduced school absenteeism. A typical exercise drops old high school.” participants off somewhere on the 563 square kilometre “Participants trek through the Around 8,500 young people Millicent High School Yankaninna Station, north- Flinders Ranges carrying all have been through the students taking part in east of Leigh Creek in South their own gear in a backpack program during its 29-year Operation Flinders Australia, before embarking on which could weigh up to 16 history and in September 2020, an eight-day trek. kilograms. They sleep rough school students from Millicent Through the 2020 grant program, a range of local with only a basic shelter and High School were involved “Operation Flinders is an organisations were supported: outback intervention program have to cook their meals in a in the program thanks to a which is quite unique,” says campfire for the eight days.” Community Capacity Building Direct contributions to Leigh Aitken, Operation Grant from OneFortyOne and Limestone Coast communities Organisation Project Amount South East Junction Flinders Engagement Officer. Stand Like Stone. course participants through the Stand Like Stone during their equine annual grants: training (confidence Padthaway Primary This project will provide the Padthaway $6,000 building) sessions. School/Preschool community with crucial fire-fighting equipment – including an emergency water tank, fire hose and $230k reel – to build capacity for future fire seasons. Youth Opportunities For young people who may be experiencing $15,000 $230,000 from OneFortyOne (SA) Inc disadvantage for disengagement, this program since 2014 is about developing personal skills to help them create their own future success. The grant will help fund the delivery of four personal leadership programs to 72 students from Millicent High School, Allendale East Area School, Grant High 72 School and Mount Gambier High School. Foodbank South With COVID-19 increasing the need for access to $3,000 72 local students Australia (Limestone food relief, Foodbank is adapting its distribution participating in personal Coast) model to meet the changing face of food security. leadership programs This project will help Foodbank Limestone Coast with its pilot ‘Home Hamper Delivery Program’, which will see food hampers distributed free-of- charge to the community’s most vulnerable.
Operations Flinders Operation Flinders provides at-risk youth with $16,500 ‘outback intervention’ – a program of demanding outdoor challenges to develop their attitudes, build their self-esteem and promote teamwork.
The South East The South East Junction is a consumer-run $9,500 Junction, Mental mental health resource meeting the needs of Health Activity mental health consumers, carers and supportive Resource Centre community members. The grant has provided funding for resilience training encouraging people to grow and thrive in the face of challenges, so they can bounce back from adversity and move forward.
Total $50,000
32 | OneFortyOne Annual Review 2020 OneFortyOne | 33 Connections and community
OneFortyOne supports a wide range of community-led initiatives in the places we live and work. We know that thriving regions need strong communities, passionate people and healthy environments – and we’re doing what we can to help.
Waimea Swimming Club, Nelson New Zealand
34 | OneFortyOne Annual Review 2020 OneFortyOne | 35 Serving our communities
Supporting our local Last year was also an important This includes keeping The space includes ceremonial “We will plant stringybark The app will also allow us to “In 2020 we saw just how important communities was challenging year for OneFortyOne’s records of the threatened and yarning circles, and a wurla trees as a food source for the monitor the impact of our during 2020, with the impact identity, with all-new flora and fauna that call our (Boandik housing) made from Red-tailed Black Cockatoo, operations on biodiversity, local sport was for providing of lockdowns on schools, branding rolled out across estates home, and using sheoak timber. Xanthorrhoea’s to help and collect this data more connections, keeping us healthy and sports clubs and public the organisation. Perhaps the this information to manage create habitat for Southern efficiently. Over 60 people visited the gatherings. Many of the events biggest impact was felt in New habitat and protect native Brown Bandicoots and an raising energy levels.” wetland on Boxing Day 2019 The NGT team has also and groups we usually support Zealand, where the business species during forestry understorey of various shrubs, and built the wurlie, fire been working on the Mt couldn’t meet as they usually was previously known as operations. This year at grasses and bush foods suited Jessica Douglas pit and ceremonial circle. Gambier Rail Trail revegetation would. We adapted our Stand Nelson Forests. Mt Burr Swamp, NGT and to a sandy soil environment,” External Affairs Director Revegetation has occurred project, guiding students and Like Stone applications so we volunteers continued to Bryan said. “Native plants “We now have a single brand at that site through volunteer volunteers to plant 1,300 could fund projects that were regenerate the area, planting significant to Boandik people and together we can achieve help since 2019. With the plants over 250 metres of ready to go and would have a 3000 seedlings around the will also be incorporated more at a local level in both help of Ian Blackmore, Area the trail with a further 400 The auction raised $1,510, With our combined donation, rapid impact. main wetland. into the cultural learning Nelson/Marlborough and Forester, and local logging metres of revegetation which we matched, for a total Backpacks 4 SA Kids was able area, encouraging Boandik “In 2020 we saw just how Mount Gambier”, says Jessica. A site overlooking the wetland contractor Fennell Forestry, planned for 2021. donation of $3,020. to purchase 38 backpacks country listening and learning for local children, helping important local sport was for has been created to facilitate we were able to remove the Backpacks 4 SA Kids assists Creating space for experiences into the future.” Backpacks and basketball – to relieve some of the stress providing connections, keeping learning on Boandik country. large pines and blue gums more than 6,000 children biodiversity and learning charity auction raises funds and anxiety children face us healthy and raising energy The descendants of Annie to further foster the creation During 2020, we continued per year and around 1,000 to support local kids when they are removed levels,” says Jessica Douglas, OneFortyOne’s partnership Brice, a Boandik woman stories walk and allow it to to support NGT on a range of carers. Each backpack the from their family, often in External Affairs Director. “When with Nature Glenelg Trust featured in a children’s happen over a larger area. other environmental projects. In September 2020, we charity provides contains we looked at the community (NGT) began in 2013, when book titled ‘Annie’s Story’, Development began on a partnered with the Pioneers traumatic situations and NGT Senior Ecologist Bryan age-appropriate emergency grants, we were really we helped to fund the attended a gathering in new app that will let NGT Basketball Club to support without the opportunity to Haywood said over the clothing, toiletries and impressed at how creative purchase of Mt Burr Swamp December 2019 at the swamp alert OneFortyOne any time a Backpacks 4 SA Kids. take any personal belongings coming year more species other necessary supplies people had been in finding Habitat Restoration Reserve. to celebrate culture and to threatened species is sighted with them. that are important to Boandik Fourteen Pioneers players’ for children aged under 17 new ways to stay connected.” Since then, we’ve worked create a learning space for in our estates. culture will be planted at the jerseys were auctioned on years who are taken into with NGT restoring habitat future generations. wetland, to further enhance Facebook, with all proceeds care because of neglect or and biodiversity within the site and attract native going to the charity. abuse, family violence, or are 2,700 hectares of protected birds and mammals. experiencing homelessness. A male Swamp Bluet wetlands, caves and remnant Damselfly (Coenagrion vegetation. lyelli), Bryan Haywood, NGT
Coronation Forest Planting 2020 New Zealand
36 | OneFortyOne Annual Review 2020 OneFortyOne | 37 Serving our communities
Another boost for the Great We have provided a Taste Trail total of $100,000 to Key facts support maintenance and Cruising around on your bike, Caring for construction of the trail. visiting vineyards, seeing Promoting individual and the sights – could there be “It’s wonderful to see so many community wellbeing $43,000 a better way to explore the people enjoy riding through our people Nelson-Tasman region? The our forest estate and we’re Contributing to a culturally Great Taste Trail is one of 22 thrilled to be supporting it,” vibrant and sustainable $174,000 Great Rides that make up Ngā says Brent Guild, Executive community Haerenga, the New Zealand General Manager New Cycle Trail. It takes in local Zealand. “Plenty of us here art galleries, wineries and at OneFortyOne also use the Acting on environmental restaurants as well as stunning trail and it’s just a brilliant challenges $80,000 natural landscapes including asset to the community.” alongside rivers, estuaries, Supporting young Kiwi beaches and the iconic Supporting education and entrepreneurs Spooners Tunnel. training $13,000 The Young Enterprise Scheme The Trail also passes through (YES) has been encouraging some of OneFortyOne’s entrepreneurship in Kiwi All amounts in Australian dollars, rounded to the nearest thousand. forest estate in the Tasman students since the 1970s district. We have supported and it’s still going strong. the Great Taste Trail for over In 2020, we sponsored YES five years, providing people one of two YES pitch sessions Sponsoring YES is a and joined the judging panel and equipment to undertake in June, where they had 15 continuation of our support at the ‘Dragon’s Den’ style essential earthworks in minutes to convince judges for both the Marlborough competition. our forests. In 2020, our to support their fledgling and Nelson Chambers of contribution was a mixture of Around 150 students from company. Commerce. cash and ‘in kind’ support to schools across the top of the The Marlborough judging Providing grassroots enable work to be completed South Island participated in panel included Sue Ross, support for local causes on the next stage of the trail the 2020 Young Enterprise OneFortyOne New Zealand in New Zealand Kyle Tipene, Backpacks 4 SA under construction, from Scheme, working in teams Kaituna Sawmill Supply Chain Kids local representative Karen We are committed to Tapawera to Ngātīmoti. to create and run a real-life Manager, and the Nelson panel Richards, Tom Daly, Pioneers promoting the wellbeing of business. Each team attended was joined by Andy Karalus, Captain, Paul Hartung, General our community, so we’ve Manager Jubilee Sawmill former OneFortyOne New been looking for ways to Zealand Estate Value Manager. The South East Junction, Mental support healthy activities at Health & Resource Centre, The regional winner was a a grassroots level. This year coordinator Nel Jans. The South East team of five students from our local sponsorships in “One child was so excited to have their Karen Richards, volunteer “Backpacks 4 SA Kids is run by Junction received a $9,500 Stand Waimea College, and their New Zealand have included: representative at Backpacks local people who are doing Like Stone Grant to offer dedicated ‘Pathways to Primary’ idea, own toothbrush and toothpaste. It’s 4 SA Kids said some of the really great work supporting resilience training for people coping • Kea Conservation Trust with stress and adversity. a horticultural card game those little things which make the best feedback the charity has families and children across to show kids the career • Nelson Kids Variety Show had is from children they’ve South Australia and right opportunities in primary • Iron Duke Sea Scouts biggest difference, and these backpacks helped on the Limestone here in the Limestone Coast,” industries. go a long way to supporting local Coast. Paul said. “The work of the • Academic prizes organisation resonated with Team member Bree Anderson “One child was so excited to children who are in a crisis.” us and we felt fortunate to be told Waimea Weekly that • The Tasman Rugby Union have their own toothbrush involved in a small way.” the group saw a problem for Club and toothpaste,” Karen said. Karen Richards students who didn’t want to “It’s those little things which • A charity golf tournament Volunteer Representative, Backpacks 4 SA Kids continue down the school to make the biggest difference, university learning track: “We raising funds for the Nelson and these backpacks go a thought a game might be a Marlborough Rescue long way to supporting local bit more interesting rather Helicopter children who are in a crisis.” than simply having another • First aid training for Future Paul Hartung, Jubilee Sawmill teacher voicing what the Foresters opportunities are.” General Manager, was We plan to keep growing $300k inspired to support the charity our support for local clubs after hearing a local report and events, putting profits about its success. The 2020 calendar year saw back into our region and OneFortyOne support 56 local promoting community projects across Australia and wellbeing across Nelson, New Zealand with more than Tasman and Marlborough. $300,000 of community grants delivered
38 | OneFortyOne Annual Review 2020 OneFortyOne | 39 Understanding our environment Our fire readiness
Two new 360-degree surveillance cameras to enhance fire detection should mean quicker responses and faster fire suppression across the Green Triangle.
Fire detection, prevention Andrew Matheson, Estate and management continues Manager and Chair of the to be one of the most critical Green Triangle Fire Alliance, issues facing the forestry said the technology will industry. The industry relies provide a heightened level on the eyesight of expert of response. fire spotters who work from “This data and alert system towers, sometimes in extreme will arm industry with the weather conditions. With the enhanced ability to spot and addition of FireHawk cameras coordinate the response to to the network, the Green a fire earlier.” Triangle has taken a significant step forward in early fire “This new technology means detection and faster, more fire spotters will be working accurate response times. alongside forest managers and fire-fighting personnel Firehawk and Working to protect not only our on Fire Australia, along forest estate, but that of the with the Green Triangle broader community, with a Fire Alliance, are trialling coordinated response.” two 360-degree cameras supported by sophisticated “Every major fire starts as a smoke identifying algorithms. small fire, so improvements Cameras have been installed in fire detection are a vital at Bluff and Penola Towers. part of reducing the severity Operational for 24 hours of fires across the region. a day, all year round, early Technology like this helps us results show the FireHawk become better at fighting and can detect fire up to 30km preventing fires, and we hope away. The camera sends it will soon add another layer out multiple alarms if it of protection to our total fire detects smoke or glow, readiness strategy.” pinpointing an exact location until manually verified by fire spotters. The images collected are stored on a database that can be accessed at any time.
40 | OneFortyOne Annual Review 2020 OneFortyOne | 41 Understanding our environment
“This data and alert system will arm McAlpines dam industry with the enhanced ability to with a back drop of spot and coordinate the response to the Wairau Valley and OneFortyOne’s a fire earlier.” Marlborough forests
Andrew Matheson OneFortyOne Estate Manager and Chair of Green Triangle Fire Alliance
Green Triangle fire readiness activity
Fire management happens “It’s a great feeling to know Fires attended by OneFortyOne all year round that if we need help fighting in 2020 19 a fire, the other growers and Fire prevention and the fire authorities will answer management planning starts the call,” says Andrew. People hours of training for the at the ground level and goes firefighting season 2,377 all the way into the sky. Massive dams boost fire readiness in New Zealand Each year we design the layouts of our forests and Seven helicopter dip dams are Trained firefighters available new plantations to lessen being built in OneFortyOne’s to OneFortyOne, plus 13 fire 102 the chance of ignition, New Zealand Marlborough support personnel protect assets, and minimise forest estate to fight future community risk. Fire breaks fires. Each dam will hold OneFortyOne operates a private are kept clear and accessible, 600,000 litres of water and fire fighting force which includes 7 and we train our forestry are located at high altitude, 7 fire trucks personnel in fire management some at sites of fires in the all year round. past. These high plantations are relatively dry and hard to OneFortyOne contributes access, making it tough to seven fire trucks, 34 tankers, get water to the site of any six bulk-water carriers, quick potential blaze. Construction response vehicles, dozers of four dams began in April, and graders, large water with three additional dams tankers, and a range of other planned for 2021. resources to protect our estate and the greater Green They will be accessible Triangle, and we collaborate not only by our firefighting with the South Australian teams, but also by local fire County Fire Service and authorities to fight any local the Victorian County Fire flare-ups. We also have local Authority in training and helicopter crews ready to There were no fires in our “We have some incredibly fit fire response. help with firefighting. The New Zealand forests during and well-trained firefighters, automatic weather stations 2020, although some of who are ready to help when A network of towers, fire on our land are owned by our silviculture crews did they’re needed, but they spotters, and spotter planes Fire Emergency New Zealand, attend fires in the region. Our can’t do it all on their own,” watches over our on-ground providing both them and us silviculture contractors train says Denis Parsons, Forest force. with real-time data and daily for several months each year Operations Planner. “Taking Andrew Matheson, Estate fire indices. to be able to fight fires in the a cooperative approach to Manager, says the Forestry steep, gorse-ridden slopes of fire readiness helps the whole Owners Conference Group our Nelson and Marlborough region to spot and fight fires has a cooperative agreement forests. The tough conditions more effectively. It’s one that binds industry to assist mean physical fitness is of the ways we protect our each contributor when imperative. people and our environment.” responding to a fire event.
Rai Silviculture crew gathered for fire training Photo courtesy of Denis Parsons
42 | OneFortyOne Annual Review 2020 OneFortyOne | 43 Understanding our environment Our forest certifications
Our plantations are internationally certified In 2020, independent our forests themselves. We Manager. “By managing our Green Triangle plantations, “A successful surveillance audit is forestry auditors once again are proud to have met this forests sustainably we ensure the recertification was in two as sustainable and renewable, providing confirmed that our Green standard every year since there is a long-term resource parts (desktop in June and a always satisfying because it’s another positive outcomes for communities and Triangle plantations meet the 2013, and this is a vital part of that can provide for all the forest audit in July). confirmation that we’re managing our globally-recognised Australian ensuring we operate at the generations that follow us.” The FSC® is committed to conservation. We are proud to maintain Standard® for Sustainable highest level. forests with an ethic of care and to Positive feedback on our ‘Forests for all, forever’, and Forest Management. This independent certification across all our “Sustainability is such an Green Triangle forestry sets out 10 principles of high standards.” follows a comprehensive important part of what we management responsible forest management forests – and to continuously improve our surveillance audit of our forest do,” says Janeth Mackenzie, for compliance [see below]. management practices and Pandemic restrictions meant Heather Arnold forest management processes. Planning and Compliance Once again, our New Zealand the first surveillance audit Environmental Manager forests met the criteria for of the current 3-yearly these principles as assessed by certification cycle was split independent auditors. into a desktop review in June and a field audit in October. “A successful surveillance audit is always satisfying because it’s The desktop audit positively another confirmation that we’re highlighted “leadership and managing our forests with top management support an ethic of care and to high with its focus on whole standards,” says Heather Arnold, of business integration, Environmental Manager. “It’s organisational culture and about so much more than just shared mindset”. The auditor the timber. These standards also noted the emphasis encompass everything from on regional development, conservation to the working specifically in education and environment to sustainability the environment. for the long term. This is a During the field audit, the good testament to our team’s auditor was pleased to see hard work in a challenging the strong relationships year.” between our contractors and stakeholders. Additionally, the auditor was impressed with The 10 Forest Stewardship the initiatives on conservation Council principles projects, in particular, the 1. Compliance with the law recovery work completed in conservation areas in our 2. Workers’ rights and Penola Forest plantation. employment conditions This is a great achievement, 3. Indigenous peoples’ rights with zero non-conformances 4. Community relations or observations found in these two audits. 5. Benefits from the forest “It’s a wonderful feeling 6. Environmental values and to once again achieve impacts certification – we work hard as a team to improve every 7. Management planning year,” says Janeth. 8. Monitoring and Forests for all, forever assessment 9. High conservation values Our New Zealand operations The kōura, or freshwater Painted Button were once again assessed 10. Implementation of crayfish, is a native Quail (top): as meeting the International management activities species that lives in many Photo by Bryan Forest Stewardship Council of OneFortyOne’s New Haywood Nature Zealand forest streams. Glenelg Trust (FSC®) certificate for forest management. Similar to the Credit: Cawthron Institute
44 | OneFortyOne Annual Review 2020 OneFortyOne | 45 Understanding our environment
1 million tonnes of CO2 Tracking our equivalent stored by carbon footprint our wood products
Over the lifetime of OneFortyOne’s 2019 wood We’re working to support the environment by products, without accounting for production- related emissions, using FICAT™ calculations. measuring our carbon balance sheet, producing long-lasting wood products, and using waste wood instead of fossil fuels.
Climate change is a critical “This helps us demonstrate “We are working to understand how How our forests fight climate change global issue – in the drive to how much our industry can Our forests play three important roles in the fight against climate change: reduce emissions, measuring achieve toward reducing to measure and improve the carbon and monitoring the carbon carbon emissions.” footprint of a vertically integrated footprint of businesses is Our FICAT™ calculations show essential. Forestry can help forestry and timber business.” our harvested wood products to support international, in 2019 will store more than national and regional emission Kristie Paki Paki 1,000,000 tonnes of CO reduction objectives, and we 2 Environmental Planner equivalent over the life of the aim to quantify our carbon products (before subtracting footprint each year so we production-related emissions). know exactly where we stand. Improving our carbon It’s complex to measure the calculator total carbon footprint for a business like ours, so we make In 2019, Kristie led a team that use of the Forestry Industry developed a carbon footprint Carbon Assessment Tool assessment tool for the entire 1. 2. 3. (FICAT™). Developed using data OneFortyOne business across from the Intergovernmental Australia and New Zealand. Panel on Climate Change, This program allows us to They act as sinks, sources and They provide harvested wood Wood and biomass we produce FICAT™ allows us to measure track all the carbon producing reservoirs of carbon. They interact products that store carbon over the can be used instead of fossil fuels, the parts of our business that or emitting aspects of the with the atmosphere through lifetime of the product. At the end either directly as a replacement fuel generate and sequester carbon business, from each sapling growth and sequestration. of its lifetime, timber stores carbon source or indirectly by replacing to calculate our total carbon in the nursery to every truck left in landfill, or returned to the products that create higher footprint. that delivers our products. It atmosphere through decomposition. emissions in their production. computes the total input and In 2019 we tracked our sequestration of carbon to carbon footprint from the give us a total net figure. It has previous year and found that been a valuable tool to help during the 2018 annual period We also spent time not sequester carbon at the Our Green Triangle forests Over time we will reduce us understand how our forests we were carbon negative, researching the relationship same rate as an older tree, are still in a flux of carbon our emissions across the full and operations interact with meaning that we sequestered between forest growth, and we harvest some trees sink and emissions stemming business, and we expect to see carbon in the atmosphere. more carbon than we emitted. harvest level and our year-on- at different ages, which leads from the 1983 Ash Wednesday our carbon stocks consistently This year we again applied the Kristie has continued to year carbon stocks. to variations in our annual bushfires – these events have increase. There will be ups and carbon footprint. long-reaching impacts. downs, but we’re confident that FICAT™ method, using 2019 develop this tool, and in 2020 In 2019 more trees were the overall trend will be strongly carbon figures. she worked closely with harvested on both sides of the Some years we may be carbon In our New Zealand stakeholders to develop a positive. “We are working to understand Tasman than the estimated negative, other years, positive. plantations, a spike in export template to standardise key how to measure and improve annual tree growth increment, Trees must be harvested at log prices in 1994 led to new Counting carbon in our inputs and assumptions. This the carbon footprint of a which impacts the amount of certain years of growth (age- planting. Then the trend inliers information must be accurate carbon absorbed by our trees. class) to maintain forest health reversed as the Asian financial complex forestry and timber In 2019, the Australian as it gives our reporting and produce specific products crisis hit, with a decrease in business,” says Kristie Paki Why do carbon stocks Forestry Standard auditor credibility and allows us to like structural timber. planting in the late 1990s. Paki, Environmental Planner increase some years and challenged us to expand our measure our improvements. Since 2000, we’ve seen more and leader of our Carbon not others? There are also impacts from understanding of carbon The improved calculator consistent planting programs Footprint Project. history and natural events. For storage to encompass all our maintains accuracy while also If we plant the same number across the country, although example, when fires destroy estate areas. making it simpler to operate. of trees that we harvest each the long-term outcomes of trees it leads to plantations year, you might think that the those earlier highs and lows with uneven ages. carbon stocks would remain are still being felt. the same. But seedlings do
46 | OneFortyOne Annual Review 2020 OneFortyOne | 47 Understanding our environment Operational highlights
This meant we needed to consider the potential OneFortyOne 2019 Carbon Footprint carbon storage in our 4,443 hectares of inliers, Operational wetlands and other areas Net forest sequestration not covered by plantations. We developed a method to * estimate that carbon: we -439,819 of CO -e highlights used geographic information 2 systems to track changes over time, the quality of Carbon stored in our wood products The past year brought challenges, but also inliers as assessed by the successes. Across the organisation we have Nature Glenelg Trust, and carbon storage calculations 1,036,424 tonnes of CO -e made improvements to our processes, used by the South Australian 2 supported our communities and looked Department for Environment and Water. Together this for ways to raise our performance. gave us the data we needed Emissions to add our additional estate carbon figures to our total calculations. 1,565,866 tonnes of CO2-e Demand for harvested wood stays strong Net carbon emission In the second quarter of 2020, it was forecast that the pandemic would lead 969,261 tonnes of CO -e to a drop in demand for 2 timber products. However, Revenue *more trees were harvested than the estimated annual tree growth increment our sawmills continued at planned levels, and there were surges in renovations Log prices dropped significantly in early 2020, as and residential construction In FY2020, 78,000 tonnes lockdowns impacted both demand and ease of trade. in both Australia and New of dry wood waste fuel was Prices have since recovered but that dip was reflected in John Crowe, Boiler Zealand. The products we processed through two our forest revenues, which were lower than in 2019. Our Attendant, watches over mills performed well as local demand for timber remained create, such as timber for boilers producing enough the boiler control room housing and fencing, have steam to dry every stick of strong throughout the year, bringing in more revenue than a lifespan of around 30 timber that goes through kilns. they did in the previous year. years, storing more carbon Some of this wood waste for longer than paper and was purchased from other cardboard, which typically companies, utilising their waste Business Unit 2020 (AUD) lasts around two years. wood fibre to produce energy. Green Triangle Using biomass for energy Kaituna also uses its own waste Forest at our sawmills wood to produce energy, and $176 million in 2020 started selling wood The Jubilee Sawmill uses every chips to a tomato-growing piece of each log that comes Green Triangle operation which uses them into the site. From sawn Mill to heat greenhouses. $220 million structural timber to the wood chips sent off to be made into paper, to the wood shavings Nelson Forest that go into particleboard and $128 million the bark that heads off to a garden processor. Kaituna Mill $35 million Total revenue $559 million 27 tonnes of CO2-e Locked up by a typical New Zealand **https://www.scionresearch.com/about-us/about-scion/corporate- timber framed home with a floor area publications/scion-connections/past-issues-list/scion-connections-issue-34,- december-2019/locking-up-carbon-long-term-in-timber-buildings of 200 square metres**
48 | OneFortyOne Annual Review 2020 OneFortyOne | 49 Operational highlights
Planting our trees Plantation timber domestic and Owner distribution export mix During 2020, we supplied local processors <$9m with the wood fibre they needed to kick start the economy. At the same time, local 64% Down 53% on 2019 construction boomed in both Australia Australian Super & Sovereign 4.7m and New Zealand. Ownership Capital metric spend Wealth Funds distribution We invested significantly in our sites and people during 2019, including 4.7 million trees planted in our some big one-off projects. With those projects already funded and Australian forests 36% others delayed due to COVID-19 restrictions, our capital metric spend US Pension was less than half in 2020 compared to the previous year. and Other 81% Offshore Funds We are already planning some big projects for 2021 and beyond. Domestic 1.7m Australian Market Mix* Volumes 1.7 million trees planted in our 19% New Zealand forests Export 0.354m m3 + Timber sold by Jubilee Sawmill, up 8% 1.5m *Australia exports wood chip and pulp log 500 Direct employees across Australia 1.5 million seedlings were and New Zealand 0.22m m3 despatched for customer forests Tonnes of chips exported by Jubilee Sawmill, up 6% 52% 5.5m New Zealand Domestic 3 Market Mix** 1.8m m 5.5 million seedlings were planted in our nurseries 48% Fibre sold by our Green Triangle Forest, down 5% on 2019 Export $2.2bn
Valuation (AUD) 1.04m m3 **Total revenue including external resources Our forest valuation remained stable Fibre sold by our Nelson forest, down 9% Unaudited data. Valuations are to year end June 30, 2020 3 0.042m m Research investments Lumber sold by Kaituna Sawmill, down 26% (specific projects and research levies) 0.05m m3 AU $324,358 Chip sold by Kaituna Sawmill, up 66% NZ $476,688
50 | OneFortyOne Annual Review 2020 OneFortyOne | 51 Leadership Team
The following people are responsible for developing and implementing OneFortyOne’s strategic direction as well as overseeing business operations.
Mike Bloomfield Peter Brydon Nick Chan Cameron MacDonald Louise O’Connell Glen Rivers General Manager Sales and Marketing Chief People Officer Director Corporate Development Executive General Manager Australia Strategy and Performance Manager Chief Forester Wood Products Australia and Strategy New Zealand
Jessica Douglas Anita Drake Andy Giles-Knopp Darren Sims Mick Theobald External Affairs Director Chief Financial Officer Chief Executive Officer General Manager Finance Australia General Manager Green Triangle Forests
Tracy Goss Brent Guild Paul Hartung General Manager Kaituna Sawmill Executive General Manager New Zealand General Manager Jubilee Sawmill
52 | OneFortyOne Annual Review 2020 OneFortyOne | 53 Board of Corporate Directors Governance
OneFortyOne is committed to identifying, managing, minimising and eliminating risk as much as we can. Risk exists at every level and in every business – and every one of us has a role to play in keeping ourselves, our colleagues and our communities safe. Our Board, Leadership Team and employees take governance very seriously: we operate responsibly, ethically and transparently.
Sarah Carne Angie Davis John Gilleland Taking responsibility • understanding such risks and impacts Health, Safety and Environment Director Director Chairman of the Board arising out of the activities and Committee At OneFortyOne, we have four operations of the Company; governance committees, each chaired The role of the HSE Committee is by a Board member. The tasks and • ensuring that the Company and officers to assist the Board to perform its responsibilities of the Governance of the Company effectively discharge duties by: Committees are defined in their charters, their duties in relation to such risks; • understanding the key health, safety and which are approved by the Board. • reviewing and making environmental risks and impacts arising • Audit and Risk Committee, chaired by recommendations in relation to the out of the activities and operations of Board Director Angie Davis adequacy of internal and external the Company; resources used by the Company to • Finance Committee, chaired by Board • ensuring that the Company manage key risks; and Director James White and officers of the Company effectively • reviewing and monitoring policies, discharge their duties • Health, Safety and Environment systems and governance structures in relation to such risks; Committee, chaired by Board Director for the assessment, management and Stan Renecker • reviewing and making mitigation of such risks which are recommendations in relation to the • People Committee, chaired by Board material to the Company. Stan Renecker Dave Rumker Vanessa Stoddart adequacy of internal and external Chairman John Gilleland. Director Director Director The Audit and Risk Committee met four resources used by the Company Audit and Risk Committee times during 2020. to manage health, safety and environmental issues; and The role of the Audit & Risk Committee Finance Committee is to assist the Board to perform its • reviewing and monitoring policies, The role of the Finance Committee is duties by: systems and governance structures to assist the Board to perform its duties for the assessment, management • assisting the Board to oversee and and consider all matters pertaining to the and mitigation of health, safety and monitor, in greater detail than the full financial arrangements of the Company environmental risks which are material Board, the audit processes including the in greater detail than the full Board to the Company. Company’s internal control activities agenda allows. and policies of the Company; The Health, Safety and Environment The Finance Committee met five times Committee met five times during 2020. • supporting the Board in maintaining during 2020. the integrity of the Company’s financial reporting; • in relation to all risks which may James White impact the Company (excluding those Director risks which are expressly included as responsibilities in the Charters of other Board Committees);
54 | OneFortyOne Annual Review 2020 OneFortyOne | 55 Corporate Home Safe & Well
Governance Passionate about the wellbeing of our people, contractors and partners.
People Committee Tax Transparency Statement OneFortyOne’s income for 2020 includes Our leaders the revaluation of the forest estate. This The role of the People Committee OneFortyOne is a private company which At OneFortyOne our leaders are income is not assessable for tax until the is to assist the Board to perform carries out operations in Australia and accountable for people’s wellbeing and sale of the revalued trees has been realised. its duties by: New Zealand. The Australian wholly- you can expect that they will: owned entities form a tax consolidated The Australian Taxation Office (ATO) • ensuring that the Company’s leadership, • Proactively live our Home Safe and Well group where OneFortyOne Plantations concluded a top 1000 streamlined talent management, succession, commitment. Holdings Pty Ltd is the head entity. income tax assurance review of reward, inclusion, engagement, culture OneFortyOne’s Australian businesses • Build an empowered environment that and diversity policies and programs are Tax risk management is governed by in September 2020. We are pleased to encourages all to join into an open progressive, current and aligned with OneFortyOne’s tax policy that ensures report that the ATO is satisfied that the dialogue about how we deliver home strategy; our corporate governance obligations are correct income tax outcomes were safe and well together. met. We have a low-risk tax strategy and • making recommendations to the Board reported in our income tax returns for are committed to: • Provide adequate resources to nurture in relation to the remuneration of the the period under review. everyone’s wellbeing. Chief Executive Officer (CEO) and • complying with all relevant laws, the Chief Financial Officer (CFO), and rules, regulations, and reporting and • Transparently share our performance approving the remuneration of other disclosure requirements. and strive for ongoing improvement. members of the Executive team; • applying professional diligence and care Our people Formerly known as the Remuneration in the management of all tax risks. To deliver Home Safe and Well requires Committee, the People committee met • fostering constructive, professional everyone to passionately embrace and seven times during 2020. and transparent relationships with tax participate in our wellbeing culture. Internal audits authorities, based on the concepts of We all share a responsibility for each integrity, collaboration, mutual trust and other’s wellbeing and therefore must be During 2019 OneFortyOne established safeguarding the company’s reputation. committed to: an in-house internal audit function, At OneFortyOne, we are driven to ensure Our behaviours reporting to the chair of the Audit and OneFortyOne Group has paid all that every person comes to work and • Always behaving in a safe manner and At OneFortyOne we will: Risk Committee. That auditing process taxes that it owes, all tax compliance goes Home Safe and Well every day. We encouraging others to do so. provides independent assurance on obligations are up to date and all are committed to nurturing and protecting • Not encourage or prioritise productivity • Ensuring that all employees are OneFortyOne’s risk management information has been disclosed to wellbeing through equal consideration of over wellbeing. competent or under training (and and internal control processes. the tax authorities as required and in our physical, mental and emotional health. appropriately supervised) to undertake a timely manner. • Encourage honesty and transparency The internal audit function performed We recognise that mental and emotional when raising, discussing and solving all tasks in a safe manner. five internal audits during 2020 to ensure In Australia, we are eligible for tax health can be a significant contributor to wellbeing challenges. • Actively participate in wellbeing we are meeting our responsibilities to deductions. These deductions are increasing the risk of workplace incidents. • Act in a collaborative and constructive discussions, programs and training. our people and complying with all supported by the ATO Taxation Ruling Therefore, caring for them is as important manner. relevant regulations. TR 95/6 and relate to the cost of as protecting our physical health. • Consistently contribute to how we can acquiring the right to fell trees from the • Show genuine care for all involved and collectively improve our wellbeing. Together with our employees, South Australian Government which through their recovery when incidents contractors and partners, we are • Always identify hazards, report incidents we purchased in 2012. In time these do occur. deductions will be utilised, with the building a better quality of life and and contribute to mitigating risks. expectation that our Australian operations reducing the risk of harm for all. • Meet all legislative Health and Safety Together we can all go Home Safe and requirements as a minimum and every will pay corporate income tax. We are committed to developing and Well every day. employee, contractor or partner has maintaining business systems that enable the right to refuse work if they believe us to share, learn and improve our it is unsafe. performance in a consistent, efficient and effective manner.
56 | OneFortyOne Annual Review 2020 OneFortyOne | 57 Modern Slavery
The excerpt below is taken from OneFortyOne’s Modern Slavery Statement.
OneFortyOne is committed to operating Our supply chain is made up of a large Our New Zealand forest estate is certified responsibly and establishing and adhering number of third-party providers many to the internationally recognised Forest to the highest ethical standards across of which are small and medium sized Stewardship Council Certification our Group. We will not tolerate any forms enterprises but also include multinational (FSC-STD-NZL-01-2012 New Zealand of modern slavery in our business. corporations. We procure a range of plantations EN). The standards required goods, from uniforms and PPE through by FSC certification impose certain OneFortyOne considers the risk of to timber milling equipment, and engage standards in relation to workers’ rights modern slavery within its operations a range of service providers to perform including the requirement to promote to be low. However, OneFortyOne harvesting, silviculture, forest road and realise the principles outlined within recognises through its supply chain it maintenance, export log marketing, International Labour Organisations could be indirectly exposed to the risk of engineering, maintenance, transport, Conventions (ILO Conventions). modern slavery practices. and logistics. The majority of suppliers Our sawmills in both Australia and New Operations and Supply Chain are located in Australia and New Zealand, Zealand maintain a chain of custody with a smaller portion based in the US OneFortyOne’s worksites are located system that complies with all the relevant and Canada. in Australia and New Zealand. Our requirements of FSC Chain of Custody manufacturing facilities are covered by The majority of OneFortyOne’s suppliers Standards (FSC-STD-40-004) and either an enterprise bargaining agreement are well reputed local companies, with PEFC ST 2002:2013. This means that or a collective bargaining agreement. which OneFortyOne has had regular OneFortyOne avoids trading or sourcing These agreements appropriately cover and close dealings over a long period of logs or wood fibre from forests managed usual matters such as wages, overtime, time. Suppliers working at OneFortyOne’s in a way, which violates traditional and allowances, leave and redundancies. operated assets are required to comply human rights and/or any of the ILO OneFortyOne engages with the CFMEU, with our health, safety and environmental Conventions (as defined in the ILO an Australian industry employee trade standards and fair employment practices. Declaration on Fundamental Principles union, in respect of represented and Rights at Work, 1998). The Chain OneFortyOne has taken steps to Australia employees and First Union, a of Custody Standards also impose the implement modern slavery clauses in New Zealand industry employee trade requirement to promote and realise supplier contracts where possible and union, in respect of represented New the workers’ rights outlined within ILO updated contract templates to include Zealand employees. There have been no Conventions. modern slavery provisions. disputes with any trade unions involving Please check our website for more any modern slavery type allegations. Our Certification information on OneFortyOne’s Modern OneFortyOne’s other employees are We are strongly committed to the Slavery Statement. employed under and in compliance with regional forest industries and the relevant industry awards or individual communities of which we are a part. contracts. No Australian employees are Our Australian forest estate is certified temporary visa workers. In New Zealand, to the internationally recognised we have seven temporary visa workers Responsible Wood Certification Scheme employed under our collective bargaining (AS4708), which is endorsed by the agreement at Kaituna Sawmill. Programme for Endorsement of Forest Certification (PEFC). This scheme requires OneFortyOne to demonstrate that all forest workers are engaged freely, are duly compensated and in compliance with legal obligations creating minimum employee entitlements.
58 | OneFortyOne Annual Review 2020 OneFortyOne | 59 Directory
Australia New Zealand Melbourne Office Kaituna Sawmill Level 1, 636 St Kilda Road, Mahers Road, Kaituna Valley Melbourne, VIC 3004 Marlborough +61 3 8554 0600 +64 3 572 8921
Mount Gambier Office, Forests Nelson Office, Forests 152 Jubilee Hwy E, 58A Gladstone Road, Mt Gambier, SA 5290 Richmond 7020 +61 8 8724 2700 +64 3 543 8115
Wood Products PO Box 4002 Box Hill, VIC 3128 +61 1300 989 322
Jubilee Sawmill 170 Jubilee Hwy E, Mt Gambier, SA 5290 +61 8 8721 2777
the creative fibre group onefortyone.com