Northland Estate Forest Management Plan

Prepared by Karen Lucich

Reviewed Annually 9.03.2020

TABLE OF CONTENTS

TABLE OF CONTENTS ...... 1 1. EXECUTIVE SUMMARY ...... 5 2. SUMMIT FORESTS NEW ZEALAND LIMITED OVERVIEW ...... 6

2.1 OWNERSHIP COMPANY HISTORY AND USE RIGHTS ...... 6

2.2 COMPANY OVERVIEW ...... 7

2.3 MANAGEMENT OBJECTIVES ...... 7

2.4 ORGANISATIONAL STRUCTURE ...... 9 2.5 LOCATION ...... 9

2.6 LEGISLATIVE, ADMINISTRATIVE AND LAND USE CONTEXT ...... 10

2.7 DISPUTES PROCESS ...... 10 2.8 EXTERNAL AGREEMENTS ...... 10

2.9 NATIONAL ENVIRONMENTAL STANDARDS FOR PLANTATION FORESTRY (NES-PF) ...... 11

2.10 FOREST STEWARDSHIP COUNCIL ® (FSC®) CERTIFICATION ...... 11 2.11 RESPONSIBILITIES AND AUTHORITY ...... 13 3. HISTORY OF LAND USE ...... 13

3.1 NEW ZEALAND ...... 13

3.2 NORTHLAND ...... 14 4. ESTATE OVERVIEW ...... 16

4.1 BIO-PHYSICAL SETTING ...... 16

4.2 ESTATE DESCRIPTION ...... 17 4.3 MAPPING ...... 18

4.5 ANNUAL HARVEST VOLUMES ...... 19

4.6 EXTERNAL (NON-FSC WOOD) ...... 19

4.4 WOOD SUPPLY AGREEMENT ...... 19 4.7 ASSET INSURANCES ...... 19 5. ESTATE PLANNING ...... 20

5.1 STRATEGIC PLANNING ...... 20

5.2 TACTICAL PLANNING ...... 20

5.3 OPERATIONAL PLANNING ...... 20

5.4 ANNUAL BUDGET ...... 21 6. FOREST DEVELOPMENT ...... 21

6.1 SILVICULTURE REGIME ...... 21

6.2 SPECIES SELECTION ...... 22

6.3 LAND PREPARATION AND ESTABLISHMENT ...... 22

6.4 PLANTING ...... 23 6.5 RELEASING...... 23

6.6 SPRAYING ...... 23

6.7 PRUNING...... 24

6.8 THINNING ...... 24 7. FIRE PROTECTION...... 25 8. FOREST HEALTH ...... 26

8.1 DISEASE CONTROL ...... 27

8.2 PLANT AND ANIMAL PEST CONTROL ...... 27 8.3 BIOCONTROL ...... 28

8.4 FOLIAGE SAMPLE...... 29

8.5 FERTILISER ...... 29 9. HARVEST ...... 30

9.1 HARVEST PLANNING ...... 30

9.2 HARVESTING TECHNIQUES ...... 30 10. HEALTH AND SAFETY ...... 31

10.1 PERSONNEL MANAGEMENT ...... 31

10.2 CONTRACT WORKFORCE MANAGEMENT...... 32 11. ENVIRONMENTAL ...... 32

11.1 OPERATIONS GUIDE ...... 33

11.2 HAZARDOUS SUBSTANCES ...... 33

11.3 ENVIRONMENTAL AND SOCIAL RISK ASSESSMENTS ...... 33

11.4 THREATENED SPECIES ...... 34

11.5 INDIGENOUS RESERVES ...... 36

11.6 ECOLOGICAL PROJECTS...... 36

11.7 HIGH CONSERVATION VALUES (HCV) ...... 37

11.8 HISTORIC SITES MANAGEMENT ...... 40

11.9 ENVIRONMENTAL INCIDENT MANAGEMENT ...... 40 12. COMMUNITY ...... 41 12.1 SOCIAL IMPACT ...... 41

12.2 ASSOCIATIONS WITH TANGATA WHENUA, TENURE & RESOURCE RIGHTS ...... 41

12.3 STAKEHOLDER ENGAGEMENT ...... 42

12.4 NEIGHBOURS ...... 43

12.5 RECREATION AND PUBLIC USE ...... 43

12.6 SPONSORSHIP ...... 44 13. SOCIO-ECONOMIC PROFILE ...... 44

13.1 EMPLOYMENT ...... 44 13.2 COMMUNITY DEMOGRAPHICS ...... 45 14. MONITORING ...... 45

14.1 HEALTH AND SAFETY MONITORING ...... 46

14.2 ENVIRONMENTAL AND SOCIAL MONITORING ...... 46

14.3 FOREST GROWTH AND DYNAMICS ...... 48

14.4 RESEARCH PROJECTS ...... 49 APPENDIX 1: ADMINISTRATION, LEGISLATION AND GUIDELINES ...... 51 APPENDIX 2: SFNZ LOCALITY MAP, FOREST AREAS TABLE AND KEY ...... 55 APPENDIX 3: BIO-CONTROL AGENTS IN NORTHLAND ...... 58 APPENDIX 4: SFNZ HEALTH AND SAFETY POLICY ...... 59 APPENDIX 5: SFNZ ENVIRONMENTAL POLICY ...... 60 APPENDIX 6: THREATENED SPECIES MANAGEMENT PLAN ...... 61 APPENDIX 7: CITES SPECIES ...... 67 APPENDIX 8: DESCRIPTION OF MONITORING ACTIVITIES ...... 68

IDENTIFIED HCV AREAS IN THE SFNZ MANAGED ESTATE ...... 71

1. EXECUTIVE SUMMARY

The Forest Management Plan is a summary of our forests, operations, corporate objectives, and company culture. We prepared this document to provide a clear view of our forest management style, including forest development and harvest planning. We give details of our safety and wellbeing programmes, the commercial and environmental side of our operations, and the social aspects of our Northland-based forestry business. Readers will also find an overview of our forest’s history, the bio-physical setting, and how Forest Stewardship Council ® (FSC ®) (FSC-C112972) Certification influences our management of this resource. We have prepared the Forest Management Plan for FSC Certification auditors, local stakeholders, customers, and the public, and we welcome any enquiries about the material presented.

The commercial, social and environmental objectives of Summit Forests New Zealand Ltd (SFNZ) are contextualised by our ownership structure. SFNZ is a New Zealand registered subsidiary company of Sumitomo Corporation Japan. In 2013, SFNZ purchased the former Juken New Zealand Ltd forest estate (36,000 ha) in Northland. All of the existing local staff and contracts were transferred across to the new company. They brought with them more than 24 years of local experience in managing these forests, experience that is now supported by the Sumitomo Corporation’s international network. Juken New Zealand Ltd operates two mills in and continues to be SFNZ’s primary domestic customer.

Sumitomo has a 400-year history of conducting business. Underpinning that history is the philosophy that the business must not only benefit Sumitomo, but also bring benefit to the country and society in which it operates. This philosophy bolsters SFNZ’s continued support of community and environmental groups and projects in . It also reflects the value the company places in partnerships with local iwi. The majority of the land that the forests are grown on that SFNZ manages are owned by Māori and there is a long history of close involvement between these land owners and the Crown. SFNZ is committed to protecting any resource and tenure rights of tangata whenua. SFNZ’s local team believes that open engagement with all stakeholders, embracing new technologies, cultivating local experience and maintaining a team culture will enable us to manage our unique forest resource in a sustainable and economically successful manner.

2. SUMMIT FORESTS NEW ZEALAND LIMITED OVERVIEW

Our forest business strives to grow, harvest and present wood resources to our customers in a sound and sustainable manner. Our main customer is Juken New Zealand Limited’s Northland and Triboard mills. In this plan we define the management structures and processes that enable us to reach our goals and manage effectively an aggregation of individual forests that are subject to different ownership structures and relationships.

As with any Forest Management Plan, this document covers a wide range of material. In particular, it covers all aspects required for Forest Stewardship Council (FSC) certification and was prepared with that audit process in mind. However, we hope that this document will also provide the wider community with an insight into our business practices.

Below we introduce SFNZ as a business, including our organisational culture and the framework within which we operate.

2.1 OWNERSHIP COMPANY HISTORY AND USE RIGHTS

Summit Forests New Zealand Limited (SFNZ) is a company incorporated in New Zealand under the Companies Act 1993 (company number 3938058). Table 1 depicts SFNZ ownership history.

Juken New Zealand Limited (JNL) was formed in 1990 and purchased Crown Forestry Licences (CFLs) from the State in a number of regions to develop and export pine products. Juken New Zealand Northern Plantations Limited (now SFNZ) purchased the northern part of JNL’s estate (herein referred to as the Northern Estate) on 19 March 2013.

Table 1: Summary of the Company’s History

Ownership History

Incorporation Company Name Company Number Details Date 26-Feb-10 Juken New Zealand Northern Plantations 2409111 Holding company Limited formed 8-Aug-12 Juken New Zealand Northern Plantations 2409111 Name change Limited to Summit Northern Plantations Limited

25-Mar-13 Summit Forest Management of NZ Limited 3938058 Company formed

31-Mar-15 Summit Northern Plantations Limited 240911 + 3938058 Amalgamation to Summit Forest Management of NZ Limited = form new company Summit Forest Management of NZ Limited 3938058 31-Mar-15 Summit Forest Management of NZ Limited 3938058 Name change to Summit Forests New Zealand Limited

SFNZ Northland Office is based at Kauri Flat, 15 kilometres north of Kaitaia, and the head office is located in Auckland. Most employees and contractors who worked on the Northern Estate prior to purchase were retained. 2.2 COMPANY OVERVIEW

Summit Forests New Zealand Limited (SFNZ) is a company incorporated in New Zealand under the Companies Act 1993 (company number 3938058).

SFNZ has developed a dedicated log exporting department that ensures that the full value of the product is captured. This department links into the already well-established Sumitomo Corporation trading business that includes extensive international business networks. An international network allows SFNZ to fully realise the value of the estate beyond the existing domestic supply.

We strive to achieve success and goals through sound and sustainable business activities

Sumitomo is proud to call itself an “integrated trading company” that maintains trading networks and business interests in more than 65 countries. The Sumitomo Corporation Group consists of nearly 790 companies with approximately 72,000 personnel. This large, diverse business reflects the company’s inception. The founder of Sumitomo was Masatomo Sumitomo (1585–1652) whose first business was trading medicinal remedies. However, it was not long before Masatomo joined forces with his brother-in-law, who had recently perfected a copper refining method (Nanban-buki). This technological breakthrough, combined with astute business practices, laid the foundations of the Sumitomo Corporation we see today.

Based on Masatomo’s ‘Founders Precepts’, Sumitomo’s philosophy is to achieve “benefit for self and others, private and public interests are one and the same”. This means that Sumitomo’s business must not only benefit Sumitomo, but also bring benefit to the country and society in which it operates. As a consequence, Sumitomo is committed to responsible forestry management and is currently certified under the Forest Stewardship Council certification programme in both its New Zealand and Russian forestry interests. This commitment to sustainability underpins our drive to achieve excellence within all our forest operations.

Visit http://www.sumitomocorp.co.jp/english/ to find out more about Sumitomo Corporation.

2.3 MANAGEMENT OBJECTIVES

SFNZ aims to be a leading forest company in New Zealand, and one that creates value by growing people, products, partners and prosperity.

Our mission is to protect the land and our environment for all future generations.

We will achieve this by working in an integrated manner towards our commercial, social and environmental objectives. These objectives are described in Table 2.

Table 2: Commercial, Social and Environmental Objectives

Management Objectives

Health and Safety objectives Eliminate work related injury and illness in our operations. Provide a clear set of guidelines that enhance the efficiency of all our operations. Develop a workplace culture where health and safety of all people is an overriding priority. Promote collective and individual responsibility for health and safety. Ensure that all staff and contractors are trained and competent to undertake their jobs safely. Manage the estate in compliance with the Health and Safety at Work Act 2015. Obtain and maintain nationally recognised third-party health and safety certification. ? Environmental objectives Participate in external programmes that minimise the risk of fire, disease and pests in or near plantations or other land that is either owned or managed by SFNZ. Promote the sustainable nature of plantation forests. Undertake sustainable planting and replanting to secure the long-term viability of the company and the associated positive environmental and social outcomes. Obtain and maintain internationally recognised environmental certification from the Forest Stewardship Council. Social objectives Develop and maintain a positive, proactive and fit-for-purpose health, safety and environmental culture. Comply with employee health, safety and welfare laws and regulations. Train and educate all employees to a standard that meets all of SFNZ’s objectives. Actively develop the next generation of employees in a manner that will promote the sustainable development of society and contribute to local communities in all of the areas we conduct business. Commercial objectives Maximise shareholder return within the parameters described in the company’s mission statement. Please refer to www.summitforests.co.nz. Improve access to domestic and international markets. Maintain commercial and environmental performance to the highest standards attainable in plantation management. Maintain internationally recognised environmental management certification. Achieve a commercial rate of return on investments that, at minimum, meet the SFNZ cost of capital. Operate as a good corporate citizen. Widen the use of radiata pine in all manufactured goods markets. Actively participate in the New Zealand and international forest and wood products industry. Grow the maximum sustainable annual volume by increasing the forest area.

2.4 ORGANISATIONAL STRUCTURE

SFNZ is led by a managing director based in the Auckland, New Zealand Office who reports to a Board of Directors in Tokyo, Japan. The Auckland Office has 17 staff responsible for finance and marketing. SFNZ has three regional offices; Northland, Gisborne and Wellington.

The Northland Office has 13 staff responsible for day-to-day forestry operations, including harvesting, roading, forest operations, information management systems, stakeholder contacts, and administration of 35,000 hectares in varying tenures. Contractors carry out harvesting operations, road construction and maintenance, silviculture, and land preparation. SFNZ currently employs 157 contract workers in the Northland Region.

The Eastland and Whanganui Forest Manager; based in the Gisborne Office, is responsible for managing operations in Gisborne (5,000 hectares forestry right) and Whanganui (1,230 hectares freehold). The day to day operations of Whanganui Estate is contracted to Forest Management New Zealand Limited (FMNZ), based in Whanganui. SFNZ Eastland and Whanganui Manager is responsible for ensuring that all tasks are completed in line with company processes.

Contractors carry out harvesting operations, road construction and maintenance, silviculture, and land preparation. SFNZ currently employs 20 contract workers in the Whanganui Region.

There are 3 staff members in the Wellington Office forming the Markets and Supply team.

2.5 LOCATION

SFNZ has four offices in the North Island of New Zealand and a Board of Directors in Tokyo, Japan. Contact details for the various offices can be found on the website and in table 3 below.

Table 3: Summary of SFNZ premises

Location of SFNZ premises Japan Office Board Members Auckland Office Financial Administration Level 10, 57 Fort Street, Auckland PO Box 1749, Shortland Street, Auckland 1140 Telephone: +64 9 967 5555 Northland Office Northland Operations 1533 Far North Road, RD4, Kaitaia 0481 Telephone: +64 9 406 7024 Gisborne Office Eastland and Whanganui Operations Level 4, Office 5, Box 74, 74 Grey Street, Gisborne, 4010 PO Box 68, Gisborne, 4040 Telephone: +64 21 193 7572 Wellington Office Markets and Supply Level 1, 16 Armidale Street, Petone, Wellington PO Box 33467, Petone, Lower Hutt, 5046 Telephone: +64 4 568 8053

2.6 LEGISLATIVE, ADMINISTRATIVE AND LAND USE CONTEXT

SFNZ operates within the framework of the New Zealand legal and commercial system, and we highlight some key elements of that framework that are relevant to our business. SFNZ meets all or exceeds relevant regulations, standards and guidelines applicable to forestry in New Zealand. Appendix 1 lists some relevant legislation. Legislation is reviewed as part of the annual strategic review of management systems and by visiting http://www.legislation.govt.nz/.

SFNZ also receives industry legislative updated through its associations with Forest Owners Association (FOA), Northland Wood Council (NWC), Forest Industry Contractors Association (FICA), Safety Works, RMA Northland Forestry Development Group and others as required.

The central government agencies involved are the Department of Labour and the Department of Conservation (DOC). The former administers the Health and Safety in Employment legislation. The latter has significant areas within and surrounding SFNZ’s plantation estate and also administers two relevant acts—the Wild Animal Control Act and the Conservation Act. The Historic Places Trust administers the Historic Places Act which applies to areas of plantation which have sites of historical importance such as Maori Pa sites.

Regional governance is through Northland Regional Council (NRC) which administers the Resource Management Act and National Environmental Standard for Plantation Forestry. These regulations cover pruning and thinning to waste, afforestation, earthworks, river crossings, forestry quarrying, harvesting, mechanical land preparation, and replanting and ancillary activities. The Council manages regulatory requirements relating to roads and quarry works.

2.7 DISPUTES PROCESS

In accordance with the FSC certification, the disputes process is managed as follows:

SFNZ meets all relevant regulations, standards and guidelines applicable to forestry in New Zealand (See Appendix 1 - SGS Qualifier Checklist FSC-STD-NZL-01-2013). These are reviewed as part of the annual strategic review of management systems. Summit maintains a commitment to implement any legal directives from a dispute if it arises. Any disputes with local tangata whenua if they arise will be resolved through fair and equitable means, and more specifically referred to the processes stipulated in Crown Forest Leases.

SFNZ approaches the disputes process, in all cases, in good faith.

2.8 EXTERNAL AGREEMENTS

As a member of the New Zealand Forest Owners Association, SFNZ is bound by the requirements of the New Zealand Forest Accord (1991) and the Principles for Commercial Plantation Forest Management in New Zealand (1995).

The Forest Accord protects remaining indigenous forest remnants within the plantation forest that meet minimum size and quality criteria from clearance and conversion to plantation forest. All native vegetation in the SFNZ managed estate is identified in the company Geographic Information System (GIS) and is protected in accordance with NZ Forest Accord.

The Principles for Commercial Plantation Forest Management in New Zealand are complementary to the New Zealand Forest Accord and cover a range of broader principles to promote environmental excellence in plantation forest management, and the protection, preservation and sustainable management of native forests. 2.9 NATIONAL ENVIRONMENTAL STANDARDS FOR PLANTATION FORESTRY (NES-PF)

National Environmental Standards for Plantation Forestry (NES-PF) are regulations made under the Resource Management Act 1991 (RMA) that set out technical standards, methods, or requirements relating to matters under the RMA. These standards provide consistent rules across the country by setting planning requirements for Earthworks, Harvesting, Stream crossings, Planting, Forestry quarries, Thinning and Pruning and Mechanical Land Preparation.

The NES-PF prevails over district or regional planning rules except where the district or regional authority sets more stringent planning rules. The NES-PF ensures a consistent approach to operational standards across our industry. The NES-PF reinforces a precautionary and proactive approach to controlling adverse impacts on the environment such as sedimentation, wilding pines and barriers to fish passage. SFNZ staff and contractors use the NES-PF consenting and compliance guide for operational guidance on specific aspects of the NES-PF, such as compliance monitoring and management plans. NRC conducts annual NES-PF compliance visits (figure 1) of all operations. The guide was developed by Ministry for Primary Industries (MPI) and the forestry industry.

Figure 1: Northland Regional Council and SFNZ staff compliance visit – Kohumaru Forest

2.10 FOREST STEWARDSHIP COUNCIL ® (FSC®) CERTIFICATION

SFNZ has maintained Forest Stewardship Council ® (FSC ®) (FSC-C112972) certification since JNL’s original assessment in 2008.

FSC is an independent not for profit organisation headquartered in Germany, founded to promote the responsible management of the world’s forests. FSC certification is a means by which our investors, customers and other stakeholders can be confident that we are conducting our business legally responsibly and sustainably. The requirements for certification are outlined in table 4.

SFNZ is committed to the FSC standards of good forest management that are built into the internationally recognised certification. These standards include ecological, social and economic parameters. Figure 2 illustrates well managed riparian corridors and second rotation planting.

Table 4: Summary of FSC certification requirements

FSC Certification Requirements Adhere to the guidelines and requirements set out by the 10 principles of FSC: Principle 1: Compliance with Laws and FSC Principles Principle 2: Tenure and Use Rights and Responsibilities Principle 3: Indigenous Peoples’ Rights Principle 5: Benefits from the Forest Principle 7: Management Plan Principle 8: Monitoring and Assessment Principle 9: Maintenance of high conservation value Principle 10: Plantations Develop a sound policy base derived from the FSC principles, ensuring it is communicated to and followed in the workplace. Develop open lines of communication that involve employees, stakeholders and local iwi in the promotion of economically sustainable management practices.

Use best practice guidelines in management regimes and implement sound, proven and economically viable environmental, financial and social practices that protect the future sustainability of resources.

Ensure there are no conflicts between NZ law and FSC compliance. If the company becomes aware of any instance, it will advise the certifying group SGS & FSC Cluster Group members.

FSC TRADEMARK The FSC trademarks are the primary communication tools for FSC certificate holders to demonstrate that their products meet the standards set by FSC. SFNZ must seek approval in accordance with FSC Trademark Standard 50-001(V2-0) to use FSC trademarks on any publicly available documents. Compliance with this standard is mandatory for all FSC certificate holders making use of the FSC trademark.

MAINTENANCE OF FSC CERTIFICATION Maintaining certification demonstrates that our resource management is in line with the FSC principles and criteria which, while holding intrinsic value, also offer marketing and economic advantages for our forest products in New Zealand and abroad. The maintenance of certificate status is managed through:

• The development, use, and review of a Forest Management Plan and associated documents • Engagement with the regulatory environment • Development and maintenance of I.T.-based support tools • A process of internal and independent third-party external audits undertaken at least annually.

To confirm compliance with the requirements FSC commissions annual audits of certified companies. SFNZ is currently audited by SGS New Zealand Limited. For further information about FSC visit their website www.ic.fsc.org. Copies of the audit report for our latest FSC audit can be found on the SGS website http://www.sgs.com/Forestry.

Figure 2: SFNZ well managed riparian corridors and second rotation planting – Te Hapua Forest

2.11 RESPONSIBILITIES AND AUTHORITY

All SFNZ staff or contracted managers are responsible for ensuring operations under their immediate control are planned and undertaken in a manner that meets company standards, legal requirements and the relevant requirements of the Approved Code of Practice for Safety and Health in Forest Operations as well as any Resource Consent or Permitted Activity Conditions. Furthermore, SFNZ contractors carrying out these operations are made aware that they must comply with these requirements. Any breach is deemed a company risk and is dealt with as such.

3. HISTORY OF LAND USE

3.1 NEW ZEALAND

When Māori arrived in New Zealand over 1000 years ago the country was three-quarters covered in forest. Subsequently, about one-third was cleared by fire—either deliberately or accidentally. The arrival of European settlers in New Zealand, from the 1850s onwards, saw the rapid removal of about half of the remaining forest cover as part of land clearance for agriculture, logging and settlement (Roche.2008).

By the 1870s, concerns about the future wood supply forced the Government to seek expert forestry opinion. The resulting report and the first Forests Act (1874) led to the State establishing three small plantation areas in the early 1900s. However, concern about dwindling indigenous forest resources continued and in 1913 a Royal Commission inquired into the state of NZ forestry. In 1919, after World War I, a State Forest Service was established. This triggered planning for large exotic forests and planting began soon after. The high unemployment from a major economic depression in the 1930s meant that manpower for planting became available. This contributed to a boom in planting of exotic species up to 1935. At which time about 125,000 hectares of plantations had been established. Since then, three major planting booms have occurred; one in the 1970s, again in the mid-1990s and today with the Government has developed the One Billion Trees Programme. The One Billion Trees Programme aims to increase tree planting across New Zealand. The goal is to double the current planting rate to reach one billion trees planted by 2028. The total plantation forest area established through this history of planting is about 1.8 million hectares, which is 6% of New Zealand’s total land area (27 million hectares). This resource is dominated by radiata pine (90%) with significant areas of Douglas fir (5%) (Roche.2008).

In the early 1980s, approximately half the exotic plantation forests were owned by the State through the NZ Forest Service. However, in 1987, the Government abolished the NZ Forest Service and moved to sell long- term cutting rights to the state forests. Now around 97% of the resource is privately owned with only small areas of plantation forest in government ownership. The ownership structure of New Zealand plantation forests is relatively diverse and includes major offshore ownership. At present, there are 19 large forest- owning companies, each owns a minimum of 11 000 hectares (Roche, 2008).

Over the period that plantation forest areas have been expanding in New Zealand, the area of land permanently reserved under government control has also been gradually increasing. Currently around 28% of New Zealand’s land area is held, under various tenures, as reserves or national parks for protection of their natural value. However, much of this area is steep or mountainous and there are significant deficiencies in the lowland protection (Roche, 2008).

3.2 NORTHLAND

Northland was one of the first areas of New Zealand to be settled by Europeans. European forest clearances and fires accelerated the clearances begun by Māori. The New Zealand Forest Service established exotic plantations in the region during the 1960’s to address rural depopulation and regional wood supply issues. The majority of the land planted is not ideal for forestry due to its steep and mountainous terrain and harsh lowlands deprived of nutrition. For both conservation and employment Figure 3: 1960’s Marram grass planting— reasons, they also began to stabilise the large sand dune areas running from Ninety Mile Beach. Figure 3 above shows the raw sand planted in marram to try and stabilise in preparation for pine trees. Table below summarises the history of plantation forest establishment in Northland sand areas, including those that are currently manged by SFNZ.

Table 5: History of the plantation forest establishment process in Northland sand areas

Northland forestry history

1951 Cabinet decided to transfer the administration and treatment of the country’s sandy wastes from the Ministry of Works and Development to joint management by the Department of Lands and Survey and the New Zealand Forest Service. This led to an exchange of lands between the New Zealand Forest Service and the Department of Lands and Survey, with the former acquiring 11,000 hectares of sand dune land on the Aupouri peninsula behind Ninety Mile Beach, which stretches from Motutangi in the south to Te Kao in the north.

1958 In conjunction with the Minister of Forests, the Director General of Forests and iwi groups living in the northern region, the NZ Forest Service commenced a marram grass and radiata pine planting effort to go with earlier forest planted by the Ministry of Works and Development at Waipapakauri.

1960’s The marram planting programme was small at first but accelerated over time. By the late 1960s, it had grown to a forest establishment rate of some 800 hectares per year. Almost all of the area that is now forested (95%) was previously sand dunes with wiwi growing on the coastal flats and pockets of ti tree and lupins further inland. To stabilise the sand and prevent it from moving, the programme started with the creation of a fore dune by building Manuka fences. These fences caught the moving sand from the beach which quickly built up against the fences because westerlies were the predominant wind. The fences were also an anchor that protected the marram plantings on the lee side. If there was no anchor, the wind would erode the sand from around the marram plants and destroy them. Most of the erosion occurred with the westerly winds but during the summer months easterlies were also concerning. 1962 A marram nursery was started at Karaka Stream in Aupouri Forest with marram grass transported from Ocean Beach at Whangarei Heads. However, this was not fertilised and, therefore hadn’t established itself well enough and could not be planted until the following year.

1963 A programme to plant 400 hectares per year with marram and 30 hectares per year with trees was instigated. Marram was sourced from Woodhill Forest. These planting areas increased over time until over 1500 hectares were planted in trees in a season and 1000 hectares were established in marram. Approximately 150 workers were employed each year by this seasonal work. The larger areas were planted in marram using a six-man planting machine towed by a bulldozer (TD20 or D6 size) that had a winch to manoeuvre through difficult terrain. Small flatter areas were done by two-man planter machinery and the steep hill sides were planted by hand. The process was to plant marram first by planting two- year-old grass, then to sow lupin on the areas that had been established. The area was then left for five years to create an environment of good ground cover and large lupins that is suitable for trees because the ground cover species provide protection and nitrogen. Most of the areas were planted with trees by machine using small bulldozers (HD6 or D4 size) that pulled either Louther or trailing arm planters. The steep, more difficult country was hand planted. These machines would crush the vegetation, including smaller ti tree and large lupins, and the coulter wheel would cut through the vegetation, exposing the ground so that the trees could then be planted. In this way, the machines limited the amount of area that needed hand planting. 1980’s During the mid-1980s, lupin blight decimated the lupin and large areas north of Ngataki did not have any lupin at all. Areas from Te Raite had limited growth for a few years until the virus also killed those plants. This blight event caused poor tree growth because there were no lupins to build up soil nitrogen before the trees were planted. Lupins also regenerated after a thinning operation. Trees planted in sand areas quickly become deficient in nitrogen without a history of lupin. Research was conducted to find alternative species to the perennial yellow lupin, but there were no good alternatives. In the end, the tendency was to go back to using a blue lupin—an annual plant that had been used in conjunction with hand planting marram for patching up small areas. Today, SFNZ still use blue lupin for exposed sand areas. An employment creation scheme was initiated in early 1984 to clear land and then plant trees, thus transforming farmland back into forest. The government bought land that was reverting to wasteland because it had been too difficult to farm due to revegetation scrublands and difficult terrain. Workers were restricted in what tools they could use e.g. (slashers rather than chainsaws) to help with job creation. They would fell all areas of scrub and remove fences prior to planting the area during the winter months.

SFNZ is proud to have a long history of presence in the Northland region with offices that have evolved along with the business.

The Northland Office building has been modified and extended a number of times. During the planting season (May – October) up to 150 workers worked from the formerly named Aupouri Office and Depot. The Aupouri Office also supported an Office in Te Kao with two staff located there and between 20 -30 workers. There were full mechanic and carpenter workshops plus storeroom and fire depot at the Aupouri Headquarters site. Today, the Northland Office has around 11 full-time staff.

The Otangaroa Office had two depots: one at Compartment 1, Williams Forest, the second at Taheketiti Road, Omahuta Forest. The Williams Forest depot also had full workshop facilities. These Forest Service Office and depots no longer exists but are acknowledged here as part of our history.

4. ESTATE OVERVIEW

4.1 BIO-PHYSICAL SETTING

The Summit Forests New Zealand Ltd, Northern Forest Estate consists of numerous forestry blocks located within 120 km driving distance from the Northland Office. The main sand forest which runs adjacent to Te- Oneroa-a-Tōhē/Ninety Mile Beach has some of the highest density timber in New Zealand and the surrounding clay-based forests grow very large diameter trees. Table 6 summarises key bio-physical elements of the Northern Estate.

Table 6: Bio-physical summary

Biophysical elements

Geography Northland plantation forests are typically either sand dune stabilisation forests or have been established on the heavy podsolised clay soils that were cleared of their original forest cover by early Māori or European settlers. The climate is temperate, but rainfall may be low in some years. Some areas experience hot summers and occasional summer drought. Ecology Plantation forest areas were broadly established on two types of sites. First, the Aupouri dune forests were established for the stabilisation of sand dunes to stop encroachment onto farmland. The second type is the hill country that was originally cleared of forest for farmland. However, small remnants of original or regenerating native forest are scattered though the plantation blocks, particularly in riparian areas. The original forest or regenerating areas are generally confined to the steepest, most difficult sites. These include deeply incised gullies where the initial land clearing fires did not effectively clear the original vegetation.

Soils Soil type varies, depending on locality. However, most can be classed into three categories: sand, non- marine conglomerates and sandy loams. Yellow-grey earths are present. In general, soils are moderately weathered and moderately leached. Erosion may be a hazard.

Forest Service CFLs were transferred to JNL and are a part of Waitangi settlement claims. For other leased lands, SFNZ is still working from the original contract with Northern Pulp Ltd which was extended to JNL, and then to SFNZ. SFNZ prepares for the lessor a management plan that explains the establishment and extraction proposal. This is done at a less than seven-year frequency.

The lease agreement requires all available land to be restocked, but it has a buyback clause for any partly grown stands at the time of the lease expiring. This is the current situation for most of the lease blocks. The buyback requires the lessor to pay compensation for the partly grown forest plus compound interest at 10% per annum. SFNZ would undertake a consultation process prior to the lease expiring to determine which option the lessor prefers: either to continue with a new lease or buy out the partly grown forest.

Historical habitation of the area has means that there are many archaeological sites and areas of cultural significance present and, as described in Section 0, SFNZ is working to identify these sites.

4.2 ESTATE DESCRIPTION

SFNZ has the largest and most varied forest estate in northern New Zealand. The forests were predominantly established by the New Zealand Government’s Forest Service and the variation is due to the different soils of the many locations throughout the Far North. These forests were sold off by the government, with the land leased by the government under Crown Forest Licences (CFLs).

All CFL forests are subject to Treaty of Waitangi Settlement Claims and SFNZ currently holds two of these. The Te Hiku Forest has been settled from the Aupouri CFL with the remaining Backriver Road Forests of this CFL yet to be settled. On 2 August 2016, SFNZ received the termination notice for most of the forests associated with the Aupouri CFL because the settlement process between local iwi and the Crown was complete. This means SFNZ has 35 years from the termination date to harvest the remaining standing crop under the current lease structure. The Otangaroa lease; an area of 2,500 hectares is the second CFL and is still to be settled.

The Te Hiku Forest (formerly known as Aupouri Forest) comprises up to 90% of the original Aupouri CFL that has been returned to the “Te Hiku Collective” of four iwi: Ngati Kuri, Te Aupouri, Ngai Takato and Te Rarawa. The Te Hiku Collective are tenants in common of the land with a percentage share of the lease. This lease allows replanting to continue under similar terms to the previous CFL and it gives Te Hiku Collective time to establish their organisational structure with the potential that Te Hiku Collective will become future shareholders in the forest crop. Figure 7 shows processing in a ground base operation Te Hiku Forest. Additionally, from the Aupouri CFL Kapa Forest has been settled separately with Te Aupouri, he Diggers Valley Forests have been settled separately, with Te Rarawa (Stanley Hunt, Wisemans, and the Phillips & Lambs Forests). SFNZ has entered into lease agreements directly with these iwis. The Mangonui Forests (Rogers North, Rogers South, Gartons, Donovans East, Donovans West and the

Figure 7: Ground base operation – Te Hiku Forest McCormacks) still sit under the current Aupouri CFL with treaty settlement claims in progress with Ngati Kahu. The Otangaroa CFL is still current for the Otangaroa Forests. The treaty settlement process with the iwi associated with this land continues and is being worked through in a proactive, open and clear process. The map and table of appendix 2 show forest localities, hectares and tenure types.

SFNZ’s managed estate has a variable age class distribution with significant variations (figure 4). This means that the total harvest levels can be relatively stable over time with some regional fluctuations in harvesting activity. However, SFNZ does have the ability to alter the harvest to respond to market demand fluctuations.

Area by age class distribution

1800 1600 1400 1200 Otangaroa (CFL) 1000 Lease (Te Hiku)

800 Lease Area Area (ha) 600 Freehold 400 Forestry Right 200 Aupouri (CFL) 0 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 Age

Figure 4: Area by age class distribution

4.3 MAPPING

In order to identify the different land use types and ensure the areas are accurately known, the forest area is mapped using the geospatial software ArcGIS. This is to ensure that we have up to date information that can assist operational staff with day to day decision making. Table 6 outlines when and the purpose of mapping updates during the life cycle of the forest.

Table 6: Current Mapping Process in the SFNZ Estate

Age Description 0 Planted Boundaries identified and mapped

4 Area checked for gaps and mapping updated

9 Post thinning Remap

25-30 Pre-Harvest mapping check

Annually Obtain satellite imagery

5-yearly Lidar survey of Te Hiku, Matapia, Shenstone, Butlers Creek

4.5 ANNUAL HARVEST VOLUMES

All Pinus radiata crops are managed either on a pruned, saw log or untended regime depending on growing conditions and financial return. SFNZ intends to replant all areas after harvest with improved genetics. We currently harvest 400,000 tonnes annually and have a target of sustainably harvesting at this rate.

4.6 EXTERNAL (NON-FSC WOOD)

External forests are those areas that are purchased outside of the estate to sustain wood flow. These forests can be purchased and harvested using various methods, including managed sales, forestry rights, or land and trees. External forests are not certified under FSC unless brought into a sustainable management plan of ownership or lease and replanted for the next rotation.

4.4 WOOD SUPPLY AGREEMENT

As a condition of the purchase of the Northland Estate from JNL, SFNZ was required to enter into a wood supply agreement with the two JNL mills in Kaitaia: Northland Mill and Triboard Mill. The supply agreement started in 2013 and runs for a period of 20 years with supply volumes reducing by 100,000 tonne every 5 years until the end of the agreement. Table summarises the supply volume by each five-year period.

Table 7: SFNZ and JNL Mills Wood Supply Agreement

SFNZ & JNL Wood supply agreement

Supply Period Volume (tonne) 2013–2017 370,000 2017–2022 270,000 2022–2032 170,000

4.7 ASSET INSURANCES

Fire risk varies regionally and high public activity around the fringes of any forest increases that risk. There will always be the potential for fires a major fire may cost many thousands of dollars to extinguish, and most of that will cover heavy machinery, helicopters, and manpower. The current extent of insurance cover for the crop value and re-establishment costs is based on a recognised crop valuation. This is reviewed on an annual basis. SFNZ maintains public liability and comprehensive vehicle cover to indemnify against unforeseen adverse activity both within the forest area and adjoining land tenure.

5. ESTATE PLANNING

Three types of estate planning are used to optimise the resource within the context of SFNZ’s drive for sound and sustainable practice. They are termed strategic, tactical and operational planning, and one will generate the framework for the next in that order. These estate planning types are outlined below, along with a summary of the detailed yearly and weekly planning process. The integration of these plans and guidelines provides essential management information on the estate and dictates what SFNZ requires to operate.

5.1 STRATEGIC PLANNING

An estate model is developed with the purpose of forecasting long-term (30-year period) wood flows at the forest level. The objectives of this model are to:

• Maximise net present value • Ensure sustainability of wood flow based on age class structure • Maintain production to meet wood supply agreements • Maintain optimum rotation age.

At this level the information tends to be generic, with the forecasts used to provide an estimate of the expected total volume by year. This model is reviewed annually.

5.2 TACTICAL PLANNING

Information from the strategic plan is used at the tactical planning level to prepare a ten-year harvest plan. At this stage, generic crop types become stand specific and information becomes more detailed at the compartment level. This provides a better understanding of what compartments are to be harvested and when. The tactical plan, therefore, provides the information SFNZ needs to make informed decisions around what markets it will be able to supply.

5.3 OPERATIONAL PLANNING

Operational planning is set within the framework provided by the tactical plan. The focus at this level is the 2– 5-year view, where information becomes stand specific and highly detailed. Logical harvest units are created and identified, and will be planned for harvest, determining what infrastructure is required (roads and landings). These harvest units are then allocated to harvest crews based on terrain, crew configuration/capability, product type and piece size. The goal is to maintain a 12–18-month forward plan of built infrastructure ready to be harvested. This gives us flexibility if markets change, and security in case we are unable to move into a specific block.

In addition to the three sets of plans outlined above, there are a number of key documents and databases that underpin the SFNZ planning management process. These include:

• Financial and reporting systems • Integrated management • Forest Management Plan. • Health Safety Environment Management (Mango Live) • Land Resource Manager (LRM) • Map Documents. • National Environmental Standards for Plantation Forestry/Resource Consent requirements • Industry Best Practice Guidelines.

5.4 ANNUAL BUDGET

The annual budget process is driven by and provides resolution to the planning described above. The annual budget identifies and costs projects for the following financial year. While providing a mechanism for estimating detailed business requirements, the annual budget also serves as a performance benchmark when compared to actual costs and revenue.

6. FOREST DEVELOPMENT

Forest operations refer to the establishment of a forest grown to produce wood products in New Zealand and abroad. Forest operations include all the various processes to get a tree to maturity and to protect the tree crop from threats, such as fire and disease in the meantime.

All forest operations are planned to ensure that the crop achieves maximum growth and is of high quality. Below we summarise how SFNZ manages the forest resource from planting to harvest.

The majority of harvested areas are re-established post-harvest. However, some may be retired as historic sites, riparian setback, or through harvesting constraints. Recently logged sites are prepared for planting using a variety of techniques depending on the amount on logging debris or post-harvest weed infestation. This includes machine raking and piling of slash around skid sites and on sites with flat/rolling topography where slash significantly hinders planting access. Skids and tracking are ripped where required. Spot cultivation on compacted sites is being trialled. Aerial spraying to combat unwanted regeneration and vigorous shrub weeds is carried out to an extent that is dependent on the site and problem present. For this operation, a glyphosate- based mix of herbicide is commonly used.

SFNZ maintains an interest in current research through their involvement in industry-wide research cooperatives, including those involved with the examination of site management, plantation management and forest health.

6.1 SILVICULTURE REGIME

SFNZ plants all forest at 1000 stems per hectare (sph). Planting takes place in the winter following the completion of harvesting and land preparation.

Historically, SFNZ ran a framing regime in which trees are thinned depending on height and final stocking. Framing refers to a structural building timber from unpruned trees. Aupouri CFL and Lease forests under Juken New Zealand were managed on a framing regime. They were planted at 1200 sph then one thin at age 8–10 years to 600 sph.

Currently areas are thinned at ages 7–9 years to 450 sph which is being managed on an unpruned structural log regime. There are some areas that have been planted for a post wood regime that will be thinned to 800 sph and some areas that have been planted and managed on a pruned regime that have been thinned down to 280-300 sph. The pruned height is variable from 4.5-6 metres (table 8).

Detailed stand records exist for the whole of the resource. All operations are assessed pre- and post-operation and inventory results added to the Land Resource Manager (LRM) record system. The GIS system provides spatial and tabular information. The target clearfell age of the estate is 26-30 years.

Table 8: Regime outline

Silviculture Regime

Regime Postwood Unpruned (structural) Pruned Plant 1500sph 1000 sph 1200 sph Prune 6-8 yrs (280-300 sph) Thin 5-7 yrs (800 sph) 7-9 yrs (450 sph) 8-10 yrs (280-300 sph) Harvest 16 yrs 26-28 yrs 28-30 yrs

6.2 SPECIES SELECTION

The estate is a production forest comprising mainly Pinus radiata. Re-establishment is typically undertaken with genetically improved Pinus radiata seedlings.

There are small pockets of Eucalyptus Saligna and E. Botryoides, as well as stands of E. Lusitania that were planted by NZ Forest Service in trials of alternative harvesting species in the mid-1980’s. Macrocarpa was planted along the coastline because it has a greater tolerance to exposure from salt. A minimal number of other species were also planted for protection and ornamental purposes.

6.3 LAND PREPARATION AND ESTABLISHMENT

Fit-for-purpose land preparation is critical to ensure the successful establishment of a forestry resource. Once one spring has passed post-harvest, the harvested areas are replanted during the winter. During the time between harvest and planting, the land preparation may include:

• Raking of remaining pine tree slash into rows to create space to plant trees between • Line cutting • Ripping to loosen compacted soil • Fertilising • Animal pest control • Aerial desiccation spraying • Aerial or spot releasing—removal of weeds that will compete with planted trees or are a threat to the environment • Aerial over-sowing.

Prior to any forest establishment, SFNZ conducts a review of the area to identify any risks to rare or threatened species of flora or fauna. SFNZ also considers riparian buffer sizes and hard-to-harvest areas during this review. Retiring areas and logical boundaries with local topology drives the decision making. Land preparation prescriptions follow the New Zealand Environmental Code of Practice for Plantation Forestry.

SFNZ assesses the land condition post-harvest and designs appropriate action that ensures successful forest re- establishment and maintains reserves. The assessment covers four key areas—slash, ground compaction, weeds and soil fertility—as described below.

• Large amounts of slash left behind after harvesting inhibits tree establishment and makes it difficult to achieve good stocking with even coverage. In these cases, SFNZ considers slash raking—a process that involves a machine with a specialised rake to pull the slash into rows. • When heavy clay areas have been compacted by machinery during logging operations, then SFNZ considers a ripping operation to improve soil properties—in particular on skids and some tracks. The size of the area impacted is taken into account when considering a ripping operation. Generally, the tougher terrains are logged using a hauler so compaction is not an issue in those areas. • Most areas will be aerial sprayed prior to planting to control weed growth and the regeneration of pine seedlings. Spraying is most effective when land lies fallow long enough for the weeds to germinate as this is when the growing weeds will take up the herbicide. • Exposed sand areas without a history of lupin, usually due to lupin blight, are now over-sown with a blight resistant lupin. This supplies the newly planted trees with protection from the wind and nitrogen to enhance growth. Blue lupin has, to date, been the best option for this.

6.4 PLANTING

The soil type determines the tree type planted. GF 19 are generally used for reestablishment from the local forestry nursey.

Where appropriate high GF trees are selected. These trees are preferred because they have better resistance to dothistroma and provide the high-density wood properties.

6.5 RELEASING

Newly planted trees are regularly checked for weed competition and a proactive releasing programme (removal of weeds to free the trees from competition) is initiated when problems are foreseen. Chemical releasing is the preferred option and it is applied either manually or by aerial spraying. When dealing with difficult-to-kill weeds or small areas, releasing is done manually by using hand tools. In the sandy soil of Te Hiku Forest Acacia longifolia, is a difficult weed to control. It needs to be cut by pruners when small and chainsaws when larger.

6.6 SPRAYING

In line with SFNZ’s environmental policies, herbicides are also used to control noxious weeds, reduce competition and prevent crop mortality in accordance with the requirements of Northland Regional Pest and Marine Pathway Management Plan 2017-2027.pdf, prepared by NRC.

Herbicides are applied prior to planting and in the first one to two years following planting. Once the crop trees outgrow the weed and understory species, they have a higher chance of survival. This occurs anywhere from one to three years after planting. Roadsides are maintained by carrying out spraying, in particular for gorse, pampas and wattle. Regular spraying in heavily infested weed areas maintains the road edge and keep it open for forestry operations and, if Figure 5: GPS herbicide application to control plant pests, will leave buffers around required, fire control. streams and indigenous vegetation Although herbicides are a key part of the forest cultivation process, they are used with care and in line with all relevant regulations. All herbicide spraying (figure 5) is carried out in accordance with New Zealand Standard NZS 8409:2004 The Management of Agrichemicals, HSNO regulations, applicable Regional and District Plan rules, and the obligations conferred by FSC.

The aforementioned New Zealand Standard ensures that, where agrichemicals are handled or used, the practices followed are safe, responsible and effective. This includes tracking and recoding the usage of all agrochemicals. The New Zealand Standard also stipulates that herbicide usage should have minimal adverse impact on human and environmental health.

The New Zealand Standard governing the use of agrochemicals includes a commitment to use herbicides only where there is an identified need, and only after considering all other practicable alternatives. Similarly, FSC has a commitment to managing and minimising the application of chemicals, including the use of alternatives where available. FSC recommends:

• All chemical usage is tracked and recorded by active ingredient and application area to enable reporting and monitoring of trends. • Forest owners should undertake research into chemical reduction options, efficacy and safety issues relating to chemical use. • Chemicals which are classified by FSC as ‘highly hazardous’ should not be used without completing an environmental, social risk assessment.

When planning herbicide operations, SFNZ is required to identify areas which must be protected from herbicide over-spraying, for example, significant native riparian vegetation, wetlands, watercourses, important indigenous habitat and neighbours’ boundaries. To ensure the safe use of herbicides in SFNZ forests, education and training sessions are undertaken.

It would be desirable to eliminate herbicide use but some usage is currently unavoidable for practical and economic reasons. For both environmental and economic reasons, SFNZ strives to use the minimum amount of herbicide required to undertake management activities. We actively seek and trial methods to reduce herbicide use. Currently, this includes over-sowing and spot spraying, where practical, to remove the need for herbicide use over a large area. SFNZ is also conducting ongoing trials of methods to minimise herbicide application while still maintaining effectiveness.

6.7 PRUNING

Pruning adds value to the forest resource by removing knots and creating what the industry terms ‘clear wood’. The value of pruning depends on the growth rates and good form/branching habits. Targeting these areas would make the pruning lift (a series of pruning operations over a number of years) to reach the desired pruned height to get the most effective return in terms of clearwood recovery.

In recent years most forestry companies have moved away from pruning due to the reduction in the value differential between pruned and sawlogs. The market has moved towards engineered wood products and the need for clear veneers has declined.

Road edges are pruned in Te Hiku Forest to improves access and visibility for vehicles and helps with fire protection.

6.8 THINNING

Thinning is the selective removal of trees undertaken to improve the growth rate and health of the remaining trees reducing competition and maximising the selected crop tree growth. The degree of thinning depends on the wood market that is targeted. The basic regime for our forests is a saw log programme by which the stocking will be reduced from 1000 sph to 450 sph, with a mean crop height of 12–14 metres. Post wood thinning will reduce stocking from 1600 sph to 800 sph.

The timing of thinning is important in order to maintain stand health and timing of fertiliser operations. It is important to control regeneration and wattle at this. Trees growing on sand and on deficient clay sites can become depleted of nutrition, especially if there are high volumes of regeneration of native species and wattle present.

7. FIRE PROTECTION

Fire poses a significant risk to a forest resource and SFNZ implements fire protection practices. It is an active participant in Fire and Emergency New Zealand (FENZ) and the regional fire plan, which is reviewed by the Forest Operations Manager each year. SFNZ liaises closely with FENZ to develop the Fire Plan and maintains good communication around potential risks and fire danger ratings.

In the event of a fire, FENZ is the lead agency in control of fire suppression Figure 6: FENZ responding to forest fire (figure 6). This agency, which is responsible for all fires and emergencies in New Zealand, was formed on 1 July 2017 by combining the Regional Fire Authority’s and Fire Service. SFNZ and its contractors own an extensive array of firefighting equipment, including fire engines and personal protective equipment. Staff and contractors are trained and available to respond to any fire emergency that threatens the estate or adjoining land, and SFNZ will assist FENZ as directed. This includes annual forest visits prior to the fire season.

FENZ covers the cost of fire suppression and SFNZ has insurance cover for the crop value and re-establishment costs on a recognised crop valuation.

The threat of fire is minimised by the following actions:

• Have an effective fire plan that encompasses prevention, detection and control procedures. • Use active prevention measures that include restrictions on access, fire prevention signage, publicity when fire danger is high, and maintaining access to water sources. • Implement effective detection systems that include good communication systems, mapping, and fire plan alert procedures. • Maintain a close link with the relevant fire authorities and an understanding of what equipment and trained manpower are available. • Practise good forest management that recognises the influence of terrain, the road network, and accessibility on fire prevention and control measures. • Ensure there is a suitable internal access system of roads and tracks and maintain fire breaks as the need arises.

The threat of fire is minimised by the following actions:

• Have an effective fire plan that encompasses prevention, detection and control procedures • Use active prevention measures that include restrictions on access, fire prevention signage, publicity when fire danger is high, and maintaining access to water sources • Implement effective detection systems that include good communication systems, mapping, and fire plan alert procedures • Maintain a close link with the relevant fire authorities and an understanding of what equipment and trained manpower are available • Practise good forest management that recognises the influence of terrain, the road network, and accessibility on fire prevention and control measures • Ensure there is a suitable internal access systems of roads and tracks and maintain fire breaks as the need arises.

8. FOREST HEALTH

Maintaining forest health is central to delivering the resource through to harvest and ensuring its overall quality. SFNZ undertakes both informal and formal forest health surveillance. Disease, pests and weeds are monitored on forest visits and control programmes are implemented when required. These programmes include trapping and shooting pests, or spraying weeds, and preventing fungal attack from dothistroma.

All forests are visited annually by biosecurity personnel contracted by SFNZ (figure 6). These personnel do on-the-ground surveys for forest health; which includes pests, disease and nutrition. Any samples taken are sent to SCION for analysis. SCION is a Crown research institute that specialises in research, science and technology development for the forestry industry. Findings are delivered as a report and recommendations reviewed and, where necessary, are acted on to ensure the appropriate outcome for the resource and SFNZ’s shareholders.

The forest health objectives are to: Figure 6: SPS Biosecurity advisor undertaking annual forest • To reduce negative impacts on native health monitoring biodiversity. • To reduce the abundance and distribution of pests within the forest estate. • To ensure impacts on neighbouring properties are promptly dealt with. • To meet our statutory obligations under the Regional Pest Management Strategy (RPMS).

8.1 DISEASE CONTROL

Most diseases will cause little damage and therefore do not require control. The exception is Dothistroma pini, a fungus which attacks pine needles and is associated with wet, warm conditions. Dothistroma pini is the most commonly occurring fungal disorder within New Zealand’s pine plantations. This fungus can be effectively controlled using an aerially applied copper-based fungicide spray, but this is only implemented when the infection reaches a critical level. Dothistroma pini infection can also be controlled via silviculture by implementing timely thinning and pruning operations to increase air movement and lower humidity levels.

To date, there has been no need for Dosthistroma control within the SFNZ forests. No control is currently required for other fungal disorders. As is standard practice, any unusual mortality or colouring discovered within the SFNZ estate will be reported to the Ministry of Forestry.

Kauri dieback is a major concern for our indigenous forest. Kauri dieback can kill kauri of all ages. It’s a disease caused by a microscopic fungus-like organism, called Phytophthora agathidicida (PA). It lives in the soil and infects kauri roots, damaging the tissues that carry nutrients and water within the tree, effectively starving it to death. There’s currently no proven cure or treatment and nearly all infected kauri die. The disease is easily spread through soil movements. SFNZ has no known cases of kauri dieback within its estate. However, SFNZ staff and contractors are trained in preventing the spread of PA by foot ware and machine hygiene practices when working near kauri. Appropriate forest users are informed when attaining an access permit and kauri dieback signage is on appropriate forest gates. SFNZ follows MPI recommendation of the kauri dieback programme https://www.kauridieback.co.nz/how-to-guides/.

8.2 PLANT AND ANIMAL PEST CONTROL

Plant and animal pests are wide-spread and can be difficult and expensive to control. Pests can substantially reduce the productivity of the forest through browse or competition for nutrients and sunlight. Forests provide habitat for unwanted pests, in most cases, a refuge from which such pests can spread, so large numbers of pests in a forestry plantation can impact adjacent areas. SFNZ follow pest control guidelines in the Northland Regional Pest and Marine Pathway Management Plan 2017-2027.pdf.

The main animal pests identified in SFNZ estate are the introduced possum, goat, mustelid, feral cat, rat and rabbit. Possums attack the growing tips of plantation and native trees which causes stem malformation and dieback. Over extended periods, the preferential diet habits of possum and goat will force a species composition shift in native ecosystems as preferred species are repeatedly eaten out and less preferred species gain greater dominance. Rabbit and hares can nip the top off newly planted trees. Although not commercially damaging to production forests, mustelids, feral cats and rats are an environmental pest as they eat native birds, lizards and insects and seeds.

The main plant pest species within the SFNZ estate are various grasses including Pampas, gorse, broom, blackberry, wilding conifers, wattle, lantana, wild ginger and tobacco weed and wild ginger. Weeds threaten indigenous biodiversity in the open where they can smother native species. However, in some area’s gorse can also act as a nurse crop for native regeneration. Blackberry can displace native species by outcompeting and smothering them. Competition from colonising weeds will limit tree growth in their first few years after establishment. Wilding pine is not a major issue in Northland. SFNZ controls identified wilding pines on neighbouring properties and road margins through manual falling. Plant pests are controlled by manual releasing, ground and aerial spraying. Animal pests in SFNZ forests are controlled, as required, using ground control methods because this reduces the impact on non-target species. As part of SFNZ’s commitment to FSC, SFNZ does not support the use of 1080 for animal pest control on any of their forest estates. SFNZ records annual statistics on pest control and keeps relevant stakeholders informed of pest management operations.

Traditionally feral horses have not caused unacceptable commercial or environmental damage. However, they have reached a density where environmental and cultural values are being impacted and there is an increased risk of animal welfare, health and safety issues. SFNZ is working with Te Hiku Collective on a feral horse management strategic action plan to restore the balance between the environment, people and horses.

The most cost-effective long-term pest control is often achieved through cooperation with neighbours, regional authorities, and pest control agencies. SFNZ identifies the presence of pests and manage them within the relevant regional council pest management strategies. SFNZ also works with neighbours, land care groups, regional council, fish and game, tangata whenua, kiwi coast and encourages hunting and trapping permits to control pests. SFNZ is undertaking more intensive pest control operation in areas identified as habitat for threatened species like Australasian bittern and North Island brown kiwi. See Section 11.4 Threatened species for more detail. Figure 7 below shows trap lines and results in the Community pest control area (CPCA) – Ecological Project that Summit and neighbouring Uporarau Farm are undertaking in partnership with Kiwi Coast and NRC.

Figure 7: Upokarau / Summit Ecological Project

The overall objectives when managing pests are:

• To reduce direct impacts on both plantation and indigenous biodiversity • To reduce the abundance and distribution of weeds within the forest estate • To ensure impacts on neighbouring properties are promptly dealt with • To meet our statutory obligations under the Regional Pest Management Strategy (RPMS).

8.3 BIOCONTROL

New Zealand has a ninety-year history of working with insect and pathogen (rusts/blights) biocontrol agents. So far, 59 biological control agents have been released against 22 target species. There have been no significant non-target attacks in New Zealand. Landcare Research are funded by the National Biocontrol Collective (All regional authorities in New Zealand and the Department of Conservation) to investigate biocontrol’s on behalf of New Zealand. After meticulous testing Landcare Research apply to the Environmental Protection Agency for approval to introduce a biocontrol into New Zealand. Upon approval regional authorities DOC can distribute the agent. After a year, biocontrol agents are checked to see if they survived by Landcare Research, regional authorities or DOC. Agents may need to be released several times before they become established. Once agents are doing well at one site, some are collected and released at new sites to help speed up their spread. Landcare Research, regional authorities or DOC also commission any follow up studies to measure the impact of the agent. They use this information to decide whether there is a need to import more biocontrol agents or do other things to help the agent be more effective.

Biocontrol are increasingly being recognised as an essential part of integrated pest management systems that contribute to sustainable pest control. Presently bio-control agents in Northland include; tobacco weed lacebug, Chinese privet lacebug, Japanese honeysuckle butterfly, Tradescantia leaf beetle and stem borer, Lantana leaf rust, Gorse spider mite, thrip, soft shoot moth, seed pod moth and seed weevil, Nodding thistle crown weevil and Ragwort flea beetle. They have had varying levels of success. SFNZ is supporting NRC with Wild Ginger (Hedychium gardnerianum and H. flavescens) biocontrol research http://www.stopwildginger.co.nz/our-plan. SFNZ is not involved in the release or distribution of biological control agents and will request monitoring information from NRC annually (see Appendix 3).

8.4 FOLIAGE SAMPLE

Pine tree needles are sampled once a year in February. Young stands that show nitrogen deficiency are fertilised close to the time of thinning. Where phosphate deficiencies are identified, aerial fertilising operations are carried out in the summer months when sites are more accessible.

8.5 FERTILISER

Forests are monitored for deficiencies as they grow, and nutrient management programmes are guided by these data. Forest health is checked by taking foliage samples. These samples are analysed by Scion, specifically for each key trace element that is required for good growth. Based on those analyses, Scion recommends an optimum fertiliser application (composition and quantity) to improve the tree health in each area analysed. These recommendations are implemented by SFNZ in fertilising programmes. The soils in the forests are marginal in respect of nutrient status for healthy tree growth. The most common nutrient deficiencies are:

• Nitrogen: The west coast sands in the North Island are generally significantly deficient in this element. Nitrogen has traditionally been supplied by natural inputs from nitrogen-fixing yellow lupin. After this species became vulnerable to attack from lupin blight (Collettrichum gloeosporioide), the more resistant blue lupin and other varieties of nitrogen-fixing plants such as vetch (Vicia sativa) have been used to fix nitrogen.

• Phosphate: Forests managed by SFNZ, especially those close to the coast, tend to have low phosphate and must be monitored. Phosphate is applied as necessary in the form of low solubility rock phosphate

• Magnesium: The phenomenon known as mid crown yellowing, where the middle of the tree crowns turns a yellow colour, is associated with magnesium deficiency. Heavily pruned trees and some seed lots are more predisposed to the deficiency than others. However, magnesium deficiency is not normally a problem in those forests managed by SFNZ.

• Boron: Trees that are deficient in this element can suffer dieback from the terminal buds. This type of dieback is closely associated with moisture stress and drought. However, boron deficiency is not normally a problem in forests that are managed by SFNZ. • Copper: Monitoring has revealed that there are some signs of copper deficiency in second rotation crops. SFNZ is monitoring this.

9. HARVEST

At this stage, the calculated sustainable cut for 2019–2030 is 400,000 m3 annually. Most of the radiata pine saw logs produced are sold to Juken New Zealand’s mills in Kaitaia. All harvest planning and operations follow NZ legislation, standards, voluntary agreements and best practice guidelines as outlined in section 2.6 Legislative, administrative and land use context. Our target production is 500,000 m3, to do this we have an active procurement programme.

9.1 HARVEST PLANNING

A comprehensive planning process determines how and when to harvest the wood resource in the estate, noting that SFNZ aims to harvest its estate as close as possible to the optimum tree age of each stand. This process involves balancing a range of factors such as predicted forest growth, customer requirements (grade and volume), harvesting capacity, access, third party ownership requirements, and any environmental constraints.

9.2 HARVESTING TECHNIQUES

SFNZ is committed to adopting harvesting techniques and technology that minimise the impact on the environment and reduce the risk of accidents and injuries.

Harvesting is undertaken by two key methodologies—ground-based harvesting and cable harvesting.

GROUND-BASED HARVESTING Ground-based harvesting is carried out on easier terrain (generally < 25°). In this harvesting method, trees are felled and extracted by machine to a processing area. In ground-based terrain, all felling is carried out with mechanical harvesters to minimise the risk of injury during the felling operation. However, a very small proportion of ground-based terrain is manually felled because the area is practically inaccessible to machinery. The stems are typically transported to the processing area by pulling them with skidders or cutting them to length in the cutover and forwarding machines then collect and take the logs to central skid. However, in some instances, shovel logging (using a grapple machine to move whole stems) is also used.

CABLE HARVESTING Cable harvesting is carried out on steeper terrain (generally > 25 degrees°). In this method, felled stems are extracted using a hauler (either swing yarder or tower), where trees are stropped up by a breaker out or using a grapple (to minimise risk by not having a breaker out) to a cable and then dragged to a processing area. In the past, falling on cable country was almost universally carried out Figure 8: Cable harvesting - Kohumaru Forest manually by chainsaw. However, the advent of winch assist harvesting, by which the machines are attached to a steel cable on a winch system, has significantly extended the range of falling machines onto steeper terrain. Figure 8 illustrates cable harvesting operation in Kohumaru Forest.

10. HEALTH AND SAFETY

Health and safety (H&S) policy and practices are an integral part of every operation that takes place in the forest. SFNZ maintains a H&S Policy Statement and associated manual. These documents have signed commitments by the Managing Director and are communicated to and followed by all staff. Health and safety statistics and relevant information is reported quarterly to the Board of Directors. The SFNZ policy on H&S can be found on the company website, Operations Guide and is included in Appendix:4.

SFNZ H&S strategy focusses on maintaining clear and fit-for- purpose policies, systems, procedures, and work rules that align with regulatory requirements, are regularly reviewed and are updated where required. SFNZ conducts regular and comprehensive auditing and monitoring to ensure compliance with company systems and legal requirements. This includes periodic external review of our systems because it provides a benchmark for our processes and drives continuous improvement. There are two key compliance regulations which are focussed on improving safety practices and reducing workplace accidents in the industry: The Health and Safety at Work Act 2015 and the Approved Code of Practice for Safety and Health in Forest Figure 9: Diagram showing chain shot direction Operations (and amendments).

We provide training to ensure that all workers, including staff and contractors, understand what their role requires and are fully prepared for the work they undertake. SFNZ has a clear set of non-negotiable ‘life-saving rules’ that all workers are made aware of, and there are clear consequences for breaches.

SFNZ maintains a strong focus on identifying and managing risk through robust hazard identification and management processes. Figure 9 illustrates chain shot direction which is identified as a risk and managed during operation. Accident and incident reporting, investigation and monitoring are employed to ensure that all key learning and controls are understood and communicated to the team. This system of analysis enables SFNZ to focus greatest effort on those areas that will make the biggest improvements to safety. For details on H&S management refer to SFNZ Operations Guide.

10.1 PERSONNEL MANAGEMENT

SFNZ is committed to be a good employer, which includes providing a safe and healthy working environment with equal opportunity for all employees. To achieve this SFNZ maintains an equal employment opportunity (EEO Anti-Discrimination) policy, stress and fatigue n the workplace policy, alcohol and drug policy and workplace bulling policy.

10.2 CONTRACT WORKFORCE MANAGEMENT

In a similar way to most other forest companies, SFNZ has a high proportion of operations undertaken by contracting companies. Figure 8 illustrates cartage and harvesting contractors. SFNZ contracts incorporate our general philosophies and procedures. In placing these contracts, SFNZ also:

• Only uses primary contractors who comply with SFNZ policies on H&S, welfare and personnel management • Gives preference to local / domiciled contractors who employ locally • Maintains a long-term relationship with contractors to reduce business risk • Periodically tenders work to ensure the wider community has a chance to enter the SFNZ environment and to maintain market rates for the work completed.

11. ENVIRONMENTAL

SFNZ is committed to conserving biological diversity and its associated values through sustainable forest management practices within its forest management units. We see this as part of ensuring long-term sustainability of the land and social licence of our operations. Natural environments are interwoven, with numerous values ranges from life supporting, aesthetic, recreational, spiritual, cultural, economic and more. Key areas include, but are not limited to:

• Soil and water • Riparian zones • Unique and fragile ecosystems • Native flora and fauna species (where practical to do so)

SFNZ environmental strategy is designed to enable environmental stewardship and reflect our company philosophy to maintain, protect and where possible, enhance natural environments, either directly or through collaboration. Through:

• Cultivating in all personnel who work within the forest an awareness of their environmental responsibilities. • Maintaining good working relationships with all local councils. • Establishing, maintaining, promoting and encouraging collaborative relationships with iwi, neighbours, and other stakeholders. • Undertaking and promotion of sound environmental stewardship of land and other natural resources that are on or adjacent to the forests we manage. • Only uses primary contractors who comply with SFNZ environmental standards.

SFNZ Environmental policy is attached in Appendix 5. The in The key environmental issues facing the Whanganui region are surface water quality, water demand, unsustainable hill country land use and threats to indigenous biodiversity. These are national issues related to land use and population growth. As a forestry company that occupies a very small area of the total region, SFNZ business operations can have little direct impact on this issue. However, SFNZ ensures its operations meet or exceed all relevant environmental legislation.

SFNZ invests in people and technology to ensure operations have as little negative impact as possible on the environment and that any incident can be communicated and resolved quickly. Over a rotation of a plantation forest it is recognised that well managed operations have a positive influence on the environment. 11.1 OPERATIONS GUIDE

SFNZ has developed an Operations Guide. This guide references standard operating procedures (SOPs), documentation, training, policies, FSC principles, HSNO Act requirements, and environmental risk management, as well as regional guidelines and standards for forestry operations. It guides all operations and is regularly reviewed and updated.

The assessment of environmental risks is considered as part of the company’s risk management process and managed via harvest planning and supervision. Pre-checks (impact assessment), operational checks, and post checks are all carried out by the harvesting team.

Where site improvements are required, these will be dealt with depending on the severity of action required and timeframe considered. Examples include:

• post-harvest remediation (tidy tracking, pulling back slash, removing debris from waterway). • plan changes (method of extraction, infrastructure required). • contractor systems (risk assessment or equipment condition).

Operational teams, including both forest operations and harvesting, meet regularly to discuss all operation plans and any environmental constraints.

11.2 HAZARDOUS SUBSTANCES

The SFNZ Operations Guide covers the management of hazardous substances and clearly outlines our expectations for all staff, contractors and suppliers in relation to this risk. SFNZ is committed to reducing the use of hazardous substances and all aspects of chemical use are reported annually. SFNZ and contractors return empty container to suppliers for reuse, recycling or disposal.

FSC lists chemical pesticides that are considered to be highly hazardous and classifies them as prohibited, highly restricted or restricted (Highly Hazardous Pesticides (HHP) FSC-POL-30-001 V3-0 FSC). For theses pesticides an alternative is sort or an Environmental, Social Risk Assessment process is undertaken. Types of hazardous substances can include herbicides, pesticides, fuels, oil, fire retardants, surfactants and paint.

All newly listed pesticides and pesticides not listed as highly hazardous: From 1 August 2020 an Environmental and Social Risk Assessment must be completed for all pesticides prior to their use in the forest, including those chemicals that have been added in the latest update to the FSC lists, and pesticides not currently listed.

11.3 ENVIRONMENTAL AND SOCIAL RISK ASSESSMENTS

As outlined above the FSC Pesticides Policy requires Environmental and Social Risk Assessments (ESRAs) to be completed for all pesticides, with a phase in period for these to be completed from 1 August 2019 to 1 August 2020. The requirements for ESRAs are detailed in Annex 2 of the FSC Pesticides Policy.

In the long term:

FSC will develop International Generic Indicators (IGIs) for the use and risk management of HHP’s for each hazard group of ‘HHP’. The NZ FSC Standard Development Group will incorporate the IGIs into a national risk assessment and develop NZ specific thresholds and conditions for use. Companies will be required to undertake ESRAs at a company level taking into account the IGIs and national requirements.

SFNZ has contributed to the development of ESRAs by the FSC Cluster Group and will progressively complete company level ESRAs which will be made available to operations staff. These will be updated as international and national requirements come into place. Copies of current ESRAs will be saved on company server. The Environment Planner is responsible for keeping up to date with any changes to the FSC Pesticides Policy or highly hazardous chemicals list affecting SFNZ operations and notifying the Operational team of any such changes.

11.4 THREATENED SPECIES

Local government has responsibilities under the Resource Management Act 1991 for maintaining indigenous biological diversity on private land, water bodies, foreshore and council reserves. Biodiversity on public conservation lands and waters (including marine reserves and mammals) is managed by the Department of Conservation (DOC). Most endogenous and native flora and fauna have been ranked in threat classification system by DOC to help manage risk to species. Risk to New Zealand’s biodiversity is predominantly from habitat loss and invasive species.

SFNZ is committed to the conservation, preservation and protection of indigenous species in the forests it manages and support neighbours’ efforts. The FSC standard defines rare, threatened or endangered species (RTE) as any species listed in either of the following two publications or their updates under the specified categories.

• IUCN Red List of threatened species - Critically Endangered, Endangered or Vulnerable. • NZ Threat Classification System (NZ TCS) Threatened (Nationally Critical, Nationally Endangered or Nationally Vulnerable).

There is also an indigenous bird nesting clause in the NES-PF. Plantation forestry is a permitted activity provided procedures are in place and followed for nests of the following birds:

• All Threatened birds identified in the NZ TCS • North Island brown kiwi (Apteryx mantelli) • Eastern falcon (Falco novaeseelandiae novaeseelandiae) • Bush falcon (Falco novaeseelandiae ferox) • North Island weka (Gallirallus australis greyi).

Threatened species identified in SFNZ estate are listed in table 9 below. SFNZ identified these species utilised a range of stakeholder information and research including operational staff and contractors, DOC, NRC, Fish and Game New Zealand, tangata whenua, environmental groups, commissioned surveys and FOA rare species website https://rarespecies.nzfoa.org.nz/. The FOA website provides a guide for management of rare species in New Zealand plantation forests. SFNZ maintains a list of RTE sightings these are mapped in LRM and reported on annually. SFNZ staff and contractors are trained in identification and discovery protocol of threatened species which is referenced in the Operations Guide. Threatened species management plans are attached in Appendix 6.

Table 9: Threatened species identified in SFNZ estate

Identified threatened species

NZTCS COMMON NAME SCIENTIFIC NAME SPECIES GROUP DISTRIBUTION Threatened Matuku, Matuku Botaurus poiciloptilus Wetland birds Throughout New Zealand Nationally hūrepo, Critical Australasian bittern Threatened Sun orchard Thelymitrua sanscilia Orchard North Island Nationally Critical Threatened Kakahi, Kāeo, Echyridella spp. Invertebrates Throughout New Zealand Nationally Torewai, Critical Freshwater mussel Threatened Stalked adder’s Ophioglossum petiolatum Ferns North Island Nationally tongue fern Critical Threatened Pekapeka, Long- Chalinolobus tuberculatus Bat North Island, South Island Nationally tailed bat Critical Threatened Pūpūharakeke, Placostylus ambagiosus Invertebrates Te Paki Nationally New Zealand Endangered Flax Snail

Threatened Kanuka Kunzea linearis Shrub North Island Nationally Vulnerable Threatened Pekapeka, Mystacina tuberculata Bat Northland, Auckland Nationally Northern lesser aupourica Vulnerable short-tailed bat Threatened Kauri Agathis australis Tree Naturally occurring in Nationally North Island from Te Paki Vulnerable south to Te Puke Threatened Kirk’s daisy Brachyglottis kirkii var. Shrub North Island Nationally kirkii Vulnerable At Risk North Island Apteryx mantelli Forest birds Widespread in the North Declining brown kiwi Island north of the Manawatu Gorge

CITES CITES (the Convention on International Trade in Endangered Species of Wild Fauna and Flora) is an international agreement between governments. Its aim is to ensure that international trade in specimens of wild animals and plants does not threaten their survival. It was drafted as a result of a resolution adopted in 1963 at a meeting of members of the International Union for Conservation of Nature. The convention was opened for signature in 1973 and CITES entered into force on 1 July 1975.

DOC administer the Convention on International Trade and Endangered Species of Wild Fauna and Flora (CITES) (http://www.doc.govt.nz/about-doc/role/international/endangered-species/cites-species/nz-cites- listed-species/) which lists NZ species that are illegal to trade. Appendix 7. 11.5 INDIGENOUS RESERVES

Management of the indigenous biodiversity that occurs in, or is associated with, exotic forests is an essential component of everyday forest management. Although exotic forests can provide a level of biodiversity, the reserve areas are usually the source of most indigenous biodiversity and provide refuge areas and corridors during harvesting. SFNZ Northland manages approximately 5000 hectares of indigenous forest remnants that are located within its estate boundaries. The majority of the indigenous forest remnants were in place and reserved when the plantation forests were established. The reserve area has expanded over time as those areas which are not suitable for productive use are identified and retired. Reserve areas are identified in the company Land Resource Manager (LRM) mapping system and managed as significant non-plantation area (SNP and protected under NES- PF and ecological covenant rules. Indigenous reserves (SNP) are those areas meeting the following criteria:

• Areas under Protective Covenant and listed in the Crown Forest Licence • High Conservation Value Forest Areas (Forest Stewardship Certification) • Areas listed in regional or district council plans as areas of significance • Areas that have been assessed by SFNZ as meeting the requirements of the Forest Accord • Any site housing any rare, threatened or endangered species • Riparian margins alongside significant waterways • Areas deemed significant by SFNZ for other purposes (e.g. site of a radio transmitter, archaeological or historical site, wahi tapu).

SFNZ has undertaken an ecological assessment that is representative of each SNP and ecological district in the region. The LRM record includes summary information and a unique site number that can be used to access more detailed information, including the ecological assessment reports. Reserve areas are monitored for changes in conservation values every 5 years. The greatest threat to these areas is from invasive animal and plant pests. SFNZ will implement actions as required and monitor results and revise the management processes. The assessments have used a wide range of information including:

• Mapping information and aerial photography that identify the location of reserves and site boundaries • Any previous ecological reports for sites in the forest such as DOC Protected Natural Area Programme (PNAP) or threatened species reports • Site surveys by suitably qualified staff or consultants to record vegetation, habitat types, and relevant observations of flora and fauna • Permanent conservation plots that have been established to track through time species type, growth, threats, and flora and fauna. Methods to identify species include lizard pitfall traps, listening devices for bats, and bird call counts that confirm the presence of indigenous birds.

Survey reports are produced for each site and include:

• A description of flora and fauna present within the reserve which is based on previous reports and field visit observations and includes any threatened species observed or previously recorded • Management recommendations for each site where applicable • Information presented graphically so change over time can be detected.

11.6 ECOLOGICAL PROJECTS

SFNZ is actively involved in reserve maintenance and restoration projects. The ecological assessments described above form the basis for establishing maintenance and restoration priorities along with guidance from the Ministry for the Environment (MfE), regional councils and community stakeholders. In a number of instances, SFNZ has partnered with local organisations such as Bushlands Trust and DOC to undertake reserve restoration projects.

Figure 10 shows SFNZ Lake Gem restoration project. This project has been running for 10 years with Bushland Trust, DOC and NZ Fish and Game and NRC. Annual arbour day planting is held with local schools that have seen the lake transformed from a grazed dune without marginal habitat to pristine water quality and significant habitat for threatened species like Australasian bittern. Gem Lake involves great community

collaboration with numerous stakeholders—local schools, DOC, iwi, neighbours, community organisations, and private business. Along with the benefit to associated wildlife, Lake Gem also provides an all-season walking track for public use from the dune lakes to the coast. A number of local clubs and health initiatives utilise this access.

Figure 10: Lake Gem SFNZ dune lake restoration project, providing pristine habitat and public access

Furthermore, SFNZ takes into account ecological factors when establishing a new forest. For instance, topography, riparian and future operational constraints encourage the use of setbacks for some areas. During planting, these setback areas are left to regenerate naturally, planted in eco-sourced species or high production UMF manuka for honey production.

11.7 HIGH CONSERVATION VALUES (HCV)

Under the FSC Principles and Criteria, certified forestry companies must identify reserves within the forest estate that meet the FSC definition of high conservation value (HCV) and develop management plans to maintain or enhance the high conservation value attributes of those sites. An HCV is a biological, ecological, social or cultural value of outstanding significance or critical importance.

The Common Guidance for the Identification of High Conservation Values (HCV resource network 2013) was utilised in this assessment which is fully endorsed by Forest Stewardship Council (FSC). The whole SFNZ Northern Estate has been viewed as one forest management unit. Figure 10 outlines the six categories of HCVs.

Table 10: High Conservation Values Attributes

High Conservation Values HCV1 Species diversity Concentrations of biological diversity including endemic species, and rare, threatened or endangered species (RTE), that are significant at global, regional or national levels. HCV2 Landscape-level ecosystems and mosaics Large landscape-level ecosystems and ecosystem mosaics that are significant at global, regional or national levels, and that contain viable populations of the great majority of the naturally occurring species in natural patterns of distribution and abundance.

HCV3 Ecosystems and habitats Rare, threatened, or endangered ecosystems, habitats or refugia. HCV4 Ecosystems services Basic ecosystem services in critical situations, including protection of water catchments and control of erosion of vulnerable soils and slopes. HCV5 Community needs Sites and resources fundamental for satisfying the basic necessities of local communities or indigenous peoples (for livelihoods, health, nutrition, water, etc...), identified through engagement with these communities or indigenous peoples.

HCV6 Cultural values Sites, resources, habitats and landscapes of global or national cultural, archaeological or historical significance, and/or of critical cultural, ecological, economic or religious/sacred importance for the traditional cultures of local communities or indigenous peoples, identified through engagement with these local communities or indigenous peoples.

HCV ASSESSMENT The assessment of HCV areas in SFNZ estate is ongoing as more information and understanding come to light. The identified ecosystems and habitats will be monitored annually to ensure the effectiveness of maintenance or enhancement measures employed. SFNZ has assessed the estate for high conservation values using local knowledge, legislation and various GIS mapping tools including:

• Statement of National Priorities; Protecting our Places by the Ministry for the Environment and Department of Conservation. • Threatened Environment Classification by Manaaki Whenua (Landcare Research). • Areas under Crown Forest Licence - Ecological Covenant • High Conservation Value Areas (Forest Stewardship Certification) • Areas listed in regional or district council plans as areas of significance • Areas that have been assessed by SFNZ as meeting the requirements of the Forest Accord • Any site housing any rare, threatened or endangered species • Riparian margins alongside significant waterways • Areas deemed significant by SFNZ for other purposes (e.g. site of a radio transmitter, archaeological or historical site, waahi tapu). Sites that meet the National Priority 1 and 2, Threatened environments classification or Crown Forest Licence – Ecological Covenant were identified as meeting HCV3 (table 11). Key documents are outlined below. Identified HCV are mapped in the GIS system and are protected by operational management. The HCV list is reviewed five yearly in consultation with relevant stakeholders. Stakeholder feedback is crucial to this process.

NATIONAL PRIORITY 1

National Priority One is to protect indigenous vegetation associated with land environments, (defined by Land Environments of New Zealand at Level lV), that have 20 % or less remaining in indigenous cover. This is equivalent to the Threatened Environment Classification category 1) Acutely Threatened (<10% indigenous vegetation left) and category 2) Chronically Threatened (10-20% indigenous vegetation left). For more information refer to the Whanganui Estate HCV assessment.

THREATENED ENVIRONMENTS CLASSIFICATION (TEC) TEC combines three national databases to assign New Zealand land environments to one of six threat categories based on past loss of indigenous vegetation and current legal protection. Category 1 least remaining/least protected to Category 6 most remaining/most protected (Walker et al., 2007).

IDENTIFIED HIGH CONSERVATION VALUE

Table 11: HCV identified in SFNZ Northland Estate

HCV Presence in SFNZ Northland Estate HCV1 No Some species within the estate meet FSC - RTE threshold, but populations are not significant enough to meet HCV1 - Species diversity criteria. HCV2 No There are no landscape-level ecosystems and mosaics areas within the estate. HCV3 Yes HCV3 criteria have been meet in Te Hiku and Matapia Forest. The dune lakes and wetlands have a "collective habitat value" greater than the individual ranking of each site. HCV4 No SFNZ Northland Estate forests are too small and fragmented to meet HCV4 critera of providing basic ecosystems services in critical situations. HCV5 No SFNZ Northland Estate forests do not provide sites and resources fundamental for satisfying the basic necessities of local communities. HCV6 No There is a significant number of historic sites and waahi tapu as a result of early human occupation within the estate. SFNZ follows Historic Places Management Procedure when suspecting or managing an archaeological site. No operations that could potentially damage or modify an archaeological site are undertaken without the necessary authority from Heritage NZ. There are no World Heritage Status sites within SFNZ Estate.

HCV SITES

SFNZ HCV sites are identified below in figure 12 below and on Maps in Appendix 1.

Table 12: Conservation priority areas

SFNZ – Sites of High Conservation Value Map Reference Site Name Forest Tenure Owner Area (ha) 1 Ninety Mile Beach Matapia Lease Muriwhenua 147

2 Karatia Wetland Shenstone Lease Muriwhenua 58 3 Whakatereohao Stream Shenstone Lease Muriwhenua 17 4 Te Arai Wetland Te Hiku Lease Te Hiku Collective 18 5 Gap Pohutukawa Te Hiku Lease Te Hiku Collective 33 6 Turk Lake Te Hiku Lease Te Hiku Collective 22 7 Bacica Road Lake Te Hiku Lease Te Hiku Collective 10 8 Selwyn Flat Wetland Te Hiku Lease Te Hiku Collective 12 9 Waiparea Wetland Te Hiku Lease Te Hiku Collective 60 10 Jones Lake Te Hiku Lease Te Hiku Collective 2 11 Ninety Mile Swamps Te Hiku Lease Te Hiku Collective 6 12 Headquarters Lake Te Hiku Lease Te Hiku Collective 8 13 Lake Gem Lake Ngatu Freehold SFNZ 4 Total Area 396

11.8 HISTORIC SITES MANAGEMENT

Historic sites are vulnerable to damage when undertaking earthworks and harvesting. SFNZ works closely with local iwi and Historic Places Trust and commissions archaeological surveys prior to harvest. SFNZ has a Historic Places Management Procedure which outlines the actions that must followed when working around archaeological sites that are either known or have been discovered during operations. All known sites are recorded in the company-managed GIS layer and SFNZ takes them into account when planning operations. Figure 11 shows an archaeological site marked with high stumps to prevent damage. No operations that could potentially damage or modify an archaeological site are undertaken without the necessary authority from the Historic Places Trust. Once authority is obtained, it becomes part of the Work Prescription of the operation to ensure compliance with the conditions of the Authority.

When a notable site is identified during an operation, the Historic Places Management Procedure requires all work within 30 metres of the site to cease. The site is then visited by an archaeologist and, in the case of Māori-related sites, local tangata whenua representatives. If the feature is confirmed as an archaeological site, an operational plan is developed with input from the archaeologist and iwi representatives. If necessary, an authority is also sought from the Historic Places Trust.

Figure 11: High stumped trees make an archaeological site – Rogers North In areas of forest with a high likelihood of new sites being discovered, based on the current distribution of known sites, all staff and contractors are trained to identify archaeological sites and use procedures SFNZ has developed to protect them (see Operations Guide). As a result of this training and the systems we have in place, a considerable number of previously unknown sites have been identified and protected during routine forestry operations.

11.9 ENVIRONMENTAL INCIDENT MANAGEMENT

While SFNZ strives for excellence in the performance of its forestry activities, it is inevitable that incidents will occasionally occur. When the company becomes aware of an incident, it acts promptly to minimise and remedy any adverse impacts on the environment. All incidents must be reported in Mango Live and significant incidents are investigated to ensure that staff and contractors learn from the experience. If an incident occurs, management processes are reviewed and revised to avoid repeat.

12. COMMUNITY

SFNZ manages large areas of forest therefore the company is an integral part of the communities in which it operates. As a significant business and employer, SFNZ also contributes to the sustainable development of these communities. It follows that community relations are an important focus for the company. SFNZ’s community relations are underpinned by a commitment to behave in an ethically and socially responsible manner.

12.1 SOCIAL IMPACT

A social impact assessment is completed as part of the planning stage for any new operation/forest area. The social impacts can be either positive or negative in nature and, depending on the situation, they may need different approaches. Social impacts can include, but are not limited to, regional roading issues, employment opportunities, visual effects, access, recreational activities, water rights, bus routes, and archaeological site assessment.

12.2 ASSOCIATIONS WITH TANGATA WHENUA, TENURE & RESOURCE RIGHTS

The intergenerational approach Māori take to resource management is compatible with the business philosophy of Sumitomo Corporation and SFNZ. SFNZ aims to manage its estate in a manner that benefits the local community and its people, while also developing opportunities to grow together for current and future generations. With this in mind, SFNZ works with local Māori to:

• Develop a business/partnership/capital solution to progress any joint venture idea. • Provide development and training opportunities for local people. • Assist shareholders’ transition from landowners to forest owners and eventually (through employment of people) to forest managers.

One of the pillars of Sumitomo’s philosophy is that its business must not only benefit the company, but also bring benefit to the country and society in which it operates. It follows that Sumitomo Figure 12: Kaumatua blessing kiwi before release as part of a community pest control area between NRC, Kiwi Coast, DOC, SFNZ Corporation and SFNZ are committed to New and Upokarau Farm. Zealand and all its people.

Māori are key stakeholders, both as tangata whenua and in terms of Māori leasehold forests. They are also our business partners and forest landowners. Tangata whenua also play a key role in the management of operations around historic sites and the long-term management of those sites. Figure 12 illustrates Kaumatua blessing kiwi before release.

12.3 STAKEHOLDER ENGAGEMENT

Any organisation will have multiple stakeholders including, but not limited to, customers, shareholders, employees, suppliers, neighbours and local iwi groups. SFNZ stakeholders are defined as those individuals, groups or organisations that may affect, or be affected by, company operations, those who purchase SFNZ products, and those who are contracted on a minimum of an annual basis. Specifically, this includes (a) SFNZ employees, (b) SFNZ contractors, (c) special interest groups such as district and regional councils, government departments including the Department of Conservation and iwi groups relevant to SFNZ land tenure, and (d) interested parties from the general public.

SFNZ strives to engage actively with stakeholders in the many communities where it operates, with particular focus on those directly or indirectly affected by its operations. Prior to commencing harvesting in a new area, SFNZ engages with representatives of the local community so that they are informed of plans and can be involved in developing mitigation strategies for identified concerns. Typically, the groups include forest neighbours, residents on any rural access roads affected by logging traffic, and tangata whenua.

STAKEHOLDER ENGAGEMENT PROCESS SFNZ is continually seeking to improve engagement processes and regularly reviews stakeholder engagement processes. As is demonstrated below, SFNZ has worked to create engagement processes that are both responsive to the communities and sufficiently systematic to misidentify all of the key touch-points. With this in mind, SFNZ maintains a database of those stakeholders who are material to the operation of the estate on the shared company server.

SFNZ interacts with stakeholders for a wide range of reasons that cover a diverse set of topics, including:

• To advise of and plan for activities/operations that may impact a stakeholder. • To report monitoring results to affected stakeholders. • To reply to queries and complaints, noting that the response must be in writing. • To make submissions to affected parties as part of Resource Consent applications. • To advise of opportunities, initiatives or projects SFNZ is undertaking.

Key documents within the stakeholder consultation process are:

• Forest Management Plan and Annual Monitoring Results which is available to the general public or interested parties on request at the forest office or via the SFNZ website http://www.summitforests.co.nz • High Conservation Value Assessment consultation with affected stakeholders such as tangata whenua, Department of Conservation, Northland Regional Council, Bushland Trust and others. • For wider consultation requirements, the fire plan is a source document for a broader stakeholder base such as forest neighbours, government departments, and other forest companies.

There are regular times when SFNZ will reach out to particular groups of stakeholders including:

• Weekly staff meetings and monthly contractor meetings are held and additional safety alert documents circulated regularly. • Affected stakeholders are contacted prior to Resource Consent Application. • Affected stakeholders are contacted during harvest planning and prior to commencement of operations. • Annual general business communications.

The SFNZ team is responsible for:

• Maintaining records of internal and external stakeholder communications, including the date, method, and reason for contact. This data are stored on the confidential SFNZ servers. • Recording complaints, comments that relate to significant environmental effects or impacts and, where appropriate, passing the details to the Forest Manager who will determine the response. • Forwarding information on preventive or corrective actions resulting from complaints or letters of concern to the Forest Manager for monitoring.

To ensure engagement with SFNZ is easy and available from a stakeholder’s perspective, a wide range of methods are used to communicate with them including mail and email, telephone, face-to-face meetings, website and community surveys.

Communication to staff and contractors about health and safety management issues, environmental issues, non-conformance, audits, and performance improvements is conducted through Mango Live. This is an integrated software tool which is used to control and maintain all aspects of an organisation's HSE compliance requirements.

In certain instances, SFNZ will initiate communication with stakeholders such as:

• Letters are sent to relevant stakeholders before implementing or changing areas of operations that may affect them • Interested parties are advised when breaches of legal requirements or resource consents occur, and in the case of an environmental incident. • Public notices in local papers.

As a responsible local business and forest owner with a vested interest in long-term sustainable relationships with its community, SFNZ works proactively wherever possible to resolve any disputes with stakeholders. However, if an issue cannot be resolved amicably, SFNZ will implement the appropriate legal directives for a dispute process (Section 2.7). The SFNZ team does not communicate with the media without prior approval from the Forest Manager.

12.4 NEIGHBOURS

Neighbours on the forest estate boundaries have a special interest in the management of the forest. Activities within the forest may positively or negatively impact upon their quality of life or businesses, while inappropriately managed operations could create adverse health, safety and environmental risks.

Most neighbours are rural dwellers and are involved in a range of rural economic activities including farming, horticulture, agriculture, beekeeping and other small businesses. Corporate neighbours are usually other forest owners. Neighbours may use the forests for recreational and hunting purposes and in some cases for water catchment. Boundary issues, such as weed and pest control, access, fencing and boundary alignment issues, may also involve neighbours.

Neighbour contact details are maintained using the stakeholder databases described above. Some or all of these parties will be consulted when operations in forest areas adjacent to their boundaries are proposed.

12.5 RECREATION AND PUBLIC USE

SFNZ’s CFL allow the public to walk in the forests, providing that this activity does not conflict with or compromise core business activities and that it is safe for the public to do so. Access to lease forests is generally controlled by the lessor. SFNZ will pay special attention to any social issues associated with land acquisition for plantations, especially the protection of local rights of ownership, use or access. The Overseas Investment Office (OIO) consults, governs and reviews set conditions for procurement applications.

Te Hiku Forest receives the majority of recreational demand from the wider public. Other than private or tour bus passage gaining beaches access through the forest, recreational activities and educational programmes make use of the forests and include hunting, walking, flora and fauna research, army training, pistol club, police training, horse riding, biking, motoring events, and manure and bark gathering as well as commercial apiaries. Lake Gem area is extensively used for walking, mountain bike riding, community health, and Arbour Day planting, as well as the occasional wedding event. The Te Araroa Walkway uses the Stanley Hunt Forest for walkway access. Herekino Forest is another coastal forest allowing for beach access which is well utilised by 4x4 and surfcasting clubs as well as horse treks. Summit issue beach access, recreational, pest control, pig and game bird hunting permits for many forests. Northland Fish and Game issue the game bird hunting permits for Te Hiku Forest.

Access permits are reported on annually in the Annual monitoring review. The number of access permits issued is not a true representation of forest use.

12.6 SPONSORSHIP

As a corporate member of the Northland community, SFNZ is providing, or has recently provided, sponsorship for the following: • Northland Forestry Awards Health and Safety Excellence • Houhora Coastgaurd • Houhora big game fishing club • Houhora fishing club (‘take a kid fishing’) • Kenana Marae—retaining of Urupa, tarsealing • Aputerewa Marae water diversion, tarsealing, manuka planting • 2018 Durapanel Snapper Bonanza • Te Hautaewa 90 Mile Beach Challenge • Ngai Takoto Sweetwater Festival • Cadet Forces—donating Unimog • Te Kura O Te Kao • Doubtless Bay Play Group • Waipapakauri sports complex • Kaitaia Soccer club

13. SOCIO-ECONOMIC PROFILE

The Far North (Cape Reinga to Whangarei) is an elongated and sparsely populated rural community with a land area of 7,324km2 an estimated resident population of 68,500 resulting in a population density of 0.09 persons per hectare for 2019. The Far North in which the forests are located has three main town including Kaitaia (4,887), Kerikeri (7,500) and Kaikohe (4,100).

13.1 EMPLOYMENT

SFNZ promotes a work culture with a focus on safety, professionalism, productivity and real pride in achievements. SFNZ aims to have sustainable employment for locals for the betterment of their families and the community as a whole. SFNZ and forestry as a whole play a huge part in local and downstream employment opportunities with roles including forest management, forest development, harvesting, roading, engineering and mechanical, wood processing, port and industry equipment supplies and other services such as fuel delivery. However, the annual average unemployment rate in Northland Region was 5.8% in December 2019, up from 5.6% a year earlier. The unemployment rate in Northland Region was higher than in New Zealand, where the unemployment rate averaged 4.1% over the year to December 2019 https://ecoprofile.infometrics.co.nz/northland%20region/QuarterlyEconomicMonitor/Unemployment.

13.2 COMMUNITY DEMOGRAPHICS

The Northland community demographic structure concerns SFNZ as an employer and as a community member (figure 13). When compared with the rest of the country on average Northland a higher Māori population, similar European population, more over 65, more under 15, more school leavers without qualifications, less with post school or formal qualification and higher unemployment. Northland struggles to get and maintain quality labour force. SFNZ works with industry and schools to promote forestry industry as a safe and sustainable career opportunity in Northland.

Socio-economic profile of Northland

68.0% 75.0% 80.0% 67.6% 68.1% 70.0% 60.0% 39.9% 50.0% 23.4% 31.9%35.30% 31.7% 25.0% 40.0% 14.5%21.5% 30.0% 14.6% 12.3% 20.0% 5.1%6.5% 10.0% 0.0%

New Zealand Northland

Figure 13: Social statistics of Northland compared with New Zealand

14. MONITORING

To ensure that the management objectives outlined in this plan are achieved, various monitoring schemes are applied outside normal operations management. Monitoring results are summarised and reported as part of the Annual Monitoring Report and in other forums as and when required. These results are also, where appropriate, made publicly available through the SFNZ website.

Monitoring health and safety, the environment, and aspects of its business performance can only improve SFNZ’s overall performance as:

• A manager of sustainable forest resources. • A significant contributor to sound environmental management. • A good corporate citizen and employer. SFNZ’s environmental performance process has key indicators which are detailed in monthly operational reports to the senior management team. The purpose of monitoring is to compare actual performance against legal requirements, company and certification standards, objectives and targets. This will identify non- compliance, ensure complaints/grievances are dealt with, and initiate corrective or preventive action if required. Figure 14 shows local school children help DOC and SFNZ with black mudfish monitoring.

The programme is outlined in Table 13 and 14 and a description of each activity is included in Appendix 8. Monitoring programmes are delegated by the Forest Manager as part of the job descriptions of individual staff. Most of the monitoring is scheduled as regular events in the cloud-based compliance system Mango Live. This process delegated responsibility and sets timeframes for the completion of monitoring.

14.1 HEALTH AND SAFETY MONITORING

Table 13: Summary of H&S Monitoring

H&S monitoring

Monitored Element Components Data Source Data Medium Reporting Frequency Systems Audit Annual Safety National Planning Mango Live Annually Systems Audits on all Manager / Operations Key Suppliers Manager Contractors Review Contractor Annual National Planning Mango Live Annually Reviews Manager / Operations (Jan/Feb) Manager Hauler Audit Cable Harvesting Operations Manager Mango Live Annually Contractors Operational Audit Cartage Audits Operations Manager Mango Live 6 months Operational Audit Fire Suppression Operations Manager Mango Live Annually Audit Operational Audit Loading Audit Operations Manager Mango Live 3 months Operational Audit Manual Breaking Out Operations Manager Mango Live 3 months and Tail hold Shift Audit Operational Audit Manual Tree Felling Operations Manager Mango Live 3 months Audit Operational Audit Mechanised Felling Operations Manager Mango Live 3 months and Cable Assist Audit Operational Audit Mechanised Operations Manager Mango Live 3 months Processing Audit Operational Audit Operational General Operations Manager Mango Live 6 months Audit for Harvesting and Silviculture Operational Audit Roading Audit Operations Manager Mango Live 6 months Operational Audit Shovelling Audit Operations Manager Mango Live 3 months

14.2 ENVIRONMENTAL AND SOCIAL MONITORING

Environmental and social monitoring

Table 14: Summary of Environmental & Social Monitoring Monitored Element Components Data Source Data Medium Reporting Frequency FSC Membership Observations / FSC Mango Annually Corrective Actions Forest Estate Plot National Planning Estate Module Annually Structure Measurement Manager Spread Sheet Data Forest Growth Plot Operations Supervisor LRM Annually Measurement Data Foliage Sampling SCION Analysis National Planning LRM Annually of nutrient Manager deficiencies Chemical Usage Annual Usage / Operations Supervisors LRM (Land Resource On demand Overspray Manager) / Annual Forest Health Forest Health (SPS) Biosecurity and LRM Annually Surveillance Environmental Services Report Animal and Plant Monitoring / Operations Manager LRM 6 Monthly Pests Visual Assessment Biological Controls Agencies Regional Council Annual Monitoring Annually present Report Internal Audit Improvements National Planning Mango Annually / Improvements Manager Quarterly Resource Consents Number / Harvest Planner LRM Annually Compliance Log Production Monthly Dockets Trimble BRM Connected Forest Monthly Tonnages / (Business Resource Exchange (CFX) Grades Manager) software Connected forest Business (CFB) Health and Safety Accident Trends National Planning Mango Monthly / Statistics / Lead Indicators Manager Annually Environmental Category / Operations Supervisors / Mango On demand Incidents Incident Contractors / Regional / Annually Number Council / District Council / Iwi / Stakeholders / Public Stream Monitoring Clarity / Stream Monitoring Staff LRM Annually Life / RTE / Threats / Photo Point Rare Threatened Species and Staff / Iwi / Contractors / LRM As observed and Endangered Conservation DOC / Neighbours / Public Flora and Fauna Status / Threats Significant Non- Condition Environmental Planner / LRM 5 Yearly Plantation Areas Trends / Photo DOC / Regional Council period Point Monitoring High Conservation Evaluation of Environmental Planner / LRM Annually if Forests HCV Value DOC / Ecologists / Iwi / value Criteria 1–6 Stakeholders present Stakeholder Activity Regional Council / District LRM Annually Communication notification Council / Iwi / Stakeholders / Neighbours / Public Feedback Register Complaints / Regional Council / District Stakeholder Annually Compliments / Council / Iwi / Communication Comments Stakeholders / Neighbours folder / Public Recreational & Permits Issued Access Permit Book Permits folder Annually Non-timber Staff Training Where Relevant All Staff Mango Quarterly / Annually Legislation Any Relevant www.legislation.govt.nz Update Relevant 6 Monthly Legislative Documents Changes

Figure 14: Local school children help DOC and SFNZ with black mudfish monitoring

14.3 FOREST GROWTH AND DYNAMICS

Forest growth is monitored through a combination of permanent sample plots and regular forest inventory. Currently harvesting is scheduled by age class. However, as the estate grows the Manager will attempt to smooth the harvest profile, to ensure continuous harvesting with a similar volume harvested per annum. The current process is described by Table 15. Table 15: Current inventory process in the SFNZ estate

Inventory

Age Description

0 Establish QC (Quality Control) plots

0.5 Survival counts

8 Thinning pre-assessment Thinning QC plots PSP created average Basal Area of QC plots 22 Mid Rotation Inventory (MRI) low intensity 1 % sample

25-30 Pre-Harvest Inventory (PHI) 2-3 % sample

Trees are measured at temporary sample points. The first formal assessment is at about age 8-10, depending on thinning operation and the size of the trees. Up to three further assessments may be carried out, and this cumulates in the pre-harvest inventory, see Table 16. The plot measurement and maintenance are managed internally by the silviculture team and the data are processed and maintained on the LRM system. These measurements form the basis of the yield tables used to model the likely harvest volume available from the forest estate.

Table 16: Current woodflow modelling process in the SFNZ estate

Modelling (Growth, Yield & Wood flow)

Age Description 0 Planted area given croptype based on future treatment

8 PSP plots used to compare growth model (Basal area adjustment if required) Generic croptype used for estate model

22 Mid Rotation Inventory (MRI) data used to track growth and log grade outturn (Long term wood flow planning) After MRI specific croptype by stand created

25-30 Pre-Harvest Inventory (PHI) data used to update yield tables (Short term wood flow planning) Specific croptypes allocated year of harvest Annually Estate model updated

14.4 RESEARCH PROJECTS

SFNZ is activity contributing to research projects or trials to improve the forestry industry. Some SFNZ projects are:

• Investigating cost effective methods for conversion of exotic-dominated coastal buffer to a more resilient one dominated by natives (in conjunction with Sustainable Farming Fund, NRC, Natural Solutions – Marine & Terrestrial Ecologists Ltd) • Growing our Safety Culture pilot (in conjunction with Forest Industry Safety Council) • Controlling Wild Ginger (collaboration with Northland Regional Council) • Sediment and Water Quality Management (collaboration with Doubtless Bay Working Group). • Tana’s Tree Trust - pilot study exploring practical options to transition failing exotic buffers to resilient permanent buffers comprising indigenous coastal forest species based on an adaptive management approach (figure 15).

Figure 15: Summit staff, Kaitaia Intermediate School children, teacher, community groups, tangata whenua, NRC and Tana’s Tree Trust researchers at the first coastal zone pilot planting study – Te Hiku Forest

APPENDIX 1: ADMINISTRATION, LEGISLATION AND GUIDELINES

The following table lists the key national legislation, regulations, guidelines and codes of best practice that are relevant to forestry in the commercial, environmental and social sectors.

NATIONAL LEGISLATION Legal Rights to Harvest: • Land tenure and management rights • Concession licenses • Management and harvest planning Treaty of Waitangi Act 1975 Resource Management Act 1991 Forests Act, 1949 Conservation Act 1987 Crown Forests Asset Act 1989 Forestry Encouragement Act 1962 Forestry Rights Registration Act 1983 Local Government Act 2002 Public Works Act 1981 Commerce Act 1986 Companies Act 1993 Trespass Act 1980 Cooperative Companies Act 1996 Crown Minerals Act 1991 Income Tax Act 2007 Overseas Investment Act 2005 Walking Access Act 2008 Te Turi Whenua Maori Act 1993 Fencing Act 1978 Historic Places Act 1993 Taxes and Fees • Payment of royalties and harvesting fees • Value added and sales taxes • Income and profit taxes Minimum Wage Act 1983 Workplace Relations Act 2000 Employment Relations Act 2000 Accident Compensation Act 2001 Holidays Act 2003 Treaty of Waitangi Act 1975 Overseas Investment Act 2005 Income Tax Act 2007 Cooperative Companies Act 1996 Companies Act 1993 Commerce Act 1986 Forestry Rights Registration Act 1983 Crown Forests Asset Act 1989 Forestry Encouragement Act 1962 Forestry Encouragement Loans Regulations 1967 Forests Act, 1949 Timber Harvesting Activities • Timber harvesting regulations • Protected sites and species • Environmental requirements • Health and safety • Legal employment Health & Safety in Employment Act 2015 Forest and Rural Fires Act 1977 Fire Service Act 1975 as Amended 1990 Hazardous Substances and New Organisms Act 1996 Wildlife Act 1953 Wild Animal Control Act 1977 Biosecurity Act 1993 Climate Change Response Act 2002 Misuse of Drugs Act 1975 Transport Act 1962 Forest and Rural Fires Regulations 2005 Forest Disease Control Regulations 1967 Climate Change (Forestry Sector) Regulations 2008 The New Zealand Forest Accord, 1991 New Zealand Forest Code of Practice, June 1993 Code of Practice for the Management of Agrichemicals, 2004. (NZS8409:2004) Safety and Health in Forestry Operations: Code of Practice and Best Practice Guidelines Principles for Commercial Plantation Forest Management in New Zealand, 1995 NZ Environmental Code of Practice for Plantation Forestry,2007 N.Z. Threat Classification system (2005) Ecological Regions and Districts of NZ Treaty of Waitangi Act 1975 Holidays Act 2003 Accident Compensation Act 2001 Employment Relations Act 2000 Workplace Relations Act 2000 Minimum Wage Act 1983 Fencing Act 1978 Historic Places Act 1993 Walking Access Act 2008 Income Tax Act 2007 Family Violence Act 2018 Forestry Rights Registration Act 1983 Forests Act, 1949 National Environmental Standard, 2018 National Environmental Standard- Plantations Forestry-2017 Resource Management Act 1991 Third Party Rights • Customary rights • Free prior and informed consent (FPIC) • Rights of indigenous peoples Treaty of Waitangi Act 1975 Fencing Act 1978 Historic Places Act 1993 Resource Management Act 1991 Walking Access Act 2008 Forestry Rights Registration Act 1983 Forests Act, 1949 Trespass Act 1980 Trade and Transport • Classification of species, quantities, qualities • Trade and transport • Offshore trading and transfer pricing The New Zealand Forest Accord, 1991 Forests Act, 1949 Transport Act 1962 Forest Produce Import & Export Regulations 1989 Custom regulations The New Zealand Forest Accord, 1991 Forests Act, 1949 Biosecurity Act 1993 Customs and Excise Act 1996. Forest Produce Import & Export Regulations 1989 CITES Convention on the International Trade in Endangered Species (CITES) REGULATIONS PERTINENT TO FORESTRY RELATED TO AND EMERGING FROM NATIONAL LEGISLATION AND OTHER LEGISLATIVE INSTITUTIONS The New Zealand Forest Accord, 1991 New Zealand Forest Code of Practice, June 1993 Forest Produce Import & Export Regulations 1989 Ecological Regions and Districts of NZ N.Z. Threat Classification system (2005) NZ Environmental Code of Practice for Plantation Forestry,2007 Principles for Commercial Plantation Forest Management in New Zealand, 1995 Code of Practice for the Management of Agrichemicals, 2004. (NZS8409:2004) Safety and Health in Forestry Operations: Code of Practice and Best Practice Guidelines Forests Act, 1949 Forestry Rights Registration Act 1983 Resource Management Act 1991 Forestry Encouragement Loans Regulations 1967 Forest Disease Control Regulations 1967 Forest and Rural Fires Regulations 2005 Forest and Rural Fires Act 1977 National Environmental Standard- Plantation Forestry 2017. INTERNATIONAL AGREEMENTS PERTINENT TO FORESTRY Convention on Biological Diversity Convention on the International Trade in Endangered Species (CITES) IUCN Red List of threatened species ICOMOS New Zealand Charter, 1993 Kyoto protocol ITTA International Labour Organisation (ILO) conventions: •Forced Labour Convention, 1930. •Freedom of Association and Protection of the Right to Organise Conventions, 1948. •Migration for Employment (Revised) Convention, 1949. •Right to Organise and Collective Bargaining Convention, 1949. •Equal Remuneration Convention, 1951. •Abolition of Forced Labour Convention, 1957. •Discrimination (Occupation and Employment) Convention, 1958. •Minimum Wage Fixing Convention, 1970. •Minimum Age Convention, 1973. •Rural Workers’ Organizations Convention, 1975. •Human Resources Development Convention, 1975. •Migrant Workers (Supplementary Provisions) Convention. 1975 •Occupational Safety and Health Convention, 1981. •Indigenous and Tribal Peoples Convention, 1989. •Worst Forms of Child Labour Convention, 1999. •Code of Practice on Safety and Health in Forestry Work (ILO 1998) •Recommendation 135 Minimum Wage Fixing Recommendation, 1970. •ILO Declaration on Fundamental Principles and Rights at Work, 1998 LOCAL STANDARDS AND BEST OPERATING PRACTICES The New Zealand Forest Accord, 1991 New Zealand Forest Code of Practice, June 1993 Code of Practice for the Management of Agrichemicals, 2004. (NZS8409:2004) Safety and Health in Forestry Operations: Code of Practice and Best Practice Guidelines Principles for Commercial Plantation Forest Management in New Zealand, 1995 NZ Environmental Code of Practice for Plantation Forestry,2007 N.Z. Threat Classification system (2005) Ecological Regions and Districts of NZ

APPENDIX 2: SFNZ LOCALITY MAP, FOREST AREAS TABLE AND KEY

SFNZ LOCALITY MAP

SFNZ FOREST AREAS

Significant Net Stocked Forest Tenure Non-Plantation Other Total Area (Ha) Area (Ha) Area (Ha)

Butlers Creek Lease 226 56 4 285 Kapa Aupouri 53 6 1 59 Lake Ngatu Freehold 8 5 6 18 Matapia Aupouri 1,603 270 116 1,989 Onepu Forestry Right 344 79 31 454 Shenstone Lease 698 132 36 866 Te Hiku Aupouri 15,806 2,752 450 19,008 18,736 3,299 643 22,678

Te Hapua Lease 1,793 548 62 2,402 Te Paki Lease 306 41 5 352 2,099 589 66 2,753

Asia Fernflat Freehold 126 31 6 163 Asia Otangaroa Freehold 441 46 13 500

Donovan East Aupouri 130 38 2 170 Donovan West Aupouri 67 18 3 87 Garton Aupouri 67 11 2 80 Hanbrook Forestry Right 51 10 0 61 Kahikatea Freehold 134 45 7 185 Kohumaru Otangaroa 368 177 15 560 Lamb Aupouri 34 16 0 50 McCormack Aupouri 142 21 0 163 Rogers North Aupouri 138 61 9 207 Rogers South Aupouri 58 11 7 76 Takakuri Otangaroa 310 76 7 393 Van Crasbeek Freehold 237 100 0 337 2,303 661 70 3,033

Herekino Freehold 221 137 8 366 Manukau Lease 222 59 25 305 443 196 33 671

Asia Baker Freehold 6 2 0 8 Asia Carman Freehold 20 - 0 20 Asia Goldpine Freehold 19 8 2 28 Buchanans Freehold 253 54 2 309 Mitimiti Lease 406 174 26 606 Pearse Freehold 203 40 6 250 Phillip Aupouri 105 9 4 117 Stanley-Hunt Aupouri 105 16 3 124 Wiseman Aupouri 117 61 17 196 Wylie Aupouri 25 16 0 41 1,257 379 61 1,698

Mokau Ridge Otangaroa 65 47 4 116 Omahuta Otangaroa 390 168 16 574 Puketi Otangaroa 97 59 1 157 Smedleys Otangaroa 132 40 8 180 Umukiwi Otangaroa 433 461 16 910 Williams Otangaroa 475 186 23 684 1,592 961 68 2,620

Burlace Otangaroa 74 30 3 106 Shepherds Otangaroa 102 82 8 192 Whitehills Freehold 482 411 28 921 658 523 39 1,219

Takou Bay Freehold 377 93 9 480 6,699 988 35,152 27,465

AREAS TABLE KEY Net Stocked Area includes; Net Stocked Area Cleared Awaiting Reforestation Significant Non Plant Area includes; Significant Non Plant Protection Area and Coastal Margin Green Belt Area Lake Dam Wet Areas Other includes; Unstocked Gaps Unplanted Other/Non Plantation Unplanted Roads/Skids Building Service Easement Total Forest Area Includes All Stand Information DOC (Dept of Conservation) Covenant Sourced from Dept of Conservation, areas are indicative only. The hectares are included in the SNP Area. Areas have been calculated on information available as at 29/01/2019 The areas are based on Potential Plantable Area derived from Net Stocked Area and cleared awaiting re-planting

Areas are subject to change due to ongoing operations.

Note: Te Hiku Calculation. Net Stocked Area includes; Net Stocked Area Cleared Awaiting Reforestation DOES NOT Include Protection & Marginal Strip Significant Non Plantation includes Protection & Marginal Strip All other forests this is included in NSA.

APPENDIX 3: BIO-CONTROL AGENTS IN NORTHLAND

1. Tobacco weed Tobacco weed lacebug (Gargaphia decoris) – is everywhere in Northland where there are shaded leaves. Therefore, present in all Summit Forests. Lacebugs can also be found on the lower shady leaves of tobacco weed plants. 2. Chinese privet Chinese privet lacebug (Leptoypha hospita) – Released biocontrol at 3 sites in Northland; Kaeo, Moerewa and Hikurangi. Since release in 2017 it has established but only moved to neighbouring Chinese privet trees so far. 3. Japanese honeysuckle Japanese honeysuckle butterfly – Honshu white admiral (Limenitis glorifica). 1500 caterpillars released in Back River Rd in April 2019. Will overwinter as caterpillars. 4. Tradescantia Tradescantia Kordyana yellow spot fungus. Released at Waiere Rd, Kaeo in December 2018 and more to be released next week. Establishment not confirmed yet. Tradescantia leaf beetle (Neolema ogloblini) spreading unassisted throughout Northland. Getting quite widespread. Often already at sites for planned releases. Even found in pasture in Pukenui (from Trad at Arethusa House). Tradescantia stem borer (Lema basicostata) starting to spread unassisted in Northland but not as widespread as the leaf beetle. Also, now released in Waipu, Kaiwaka, Whangarei Heads, Whatatiri. Tradescantia tip feeder (Neolema abbreviata) struggling, still only at 3 sites Broadwood, Kaeo and Mangonui. 5. Lantana Lantana leaf rust (Prospodium tuberculatum). Established and spread up to 12km in Hokianga, Whangaroa, Doubtless Bay. Releases tried at Waipapakauri and Sweetwaters but hasn’t established. 6. Giant reed Arundo donax gall wasp (Tetramesa romana) released in November 2017 in Kohukohu and Haruru. Suspect some damage at Kohuhohu but not confirmed yet. 7. Gorse Gorse spider mite (Tetranychus lintearius) everywhere in Northland. Does much better in dry conditions. As soon as it rains the mite’s colonies get knocked back. Gorse thrips (Sericothrips staphylinus) not sure how widespread this is but I know it is around Kerikeri. Gorse soft shoot moth (Agonopterix uticetella) there is a small colony at Ruakaka. It was released in other parts of Northland but never established but I may try spreading it around further. Gorse seed pod moth (Cydia ulicetana) and gorse seed weevil (Exapion ulicis) are everywhere but ineffective at reducing gorse populations. 8. Broom - Not much broom in Northland Broom seed beetle (Bruchidius villosus) is at Ruapekapeka and the broom gall mite (Aceria genistae) is established at Kaimaumau. The galls do not like getting wet and it did not establish at Ruapekapeka due to high rainfall. Broom psyllid (Arytainilla spartiophila) did not establish. 9. Thistles Only have nodding thistle agents and this year I only found nodding thistle out at Poutu Peninsula where I found the nodding thistle crown weevil (Trichosiricalus spp.) which feeds on the crown/roots and kills the plant, the receptacle weevil (Rhinocyllus conicus) and the gall fly (Urophora sp.) which are ineffective seed feeders. 10. Ragwort Ragwort flea beetle (Longitarsus jacobaeae) larvae feed on the crown/roots and give excellent control. APPENDIX 4: SFNZ HEALTH AND SAFETY POLICY

The Directors and Officers of SFNZ are committed to ensuring that the Health and Safety Policy is an integral part of its business. This section outlines the details of this commitment and the health, safety and environment expectations of everyone working on a SFNZ site.

It is of paramount importance that our offices, forest estate and operations are, at all times and in all places, fully compliant with all legislation and obligations by adhering to the following behaviours:

• Demonstrating a visible commitment to health and safety • Having systems in place to encourage worker engagement and participation in health and safety • Identifying, managing and mitigating and reviewing significant hazards • Implementing and monitoring hazard management plans for the work environment • Having robust, proactive and accurate health and safety reporting • Ensuring that all workers receive relevant health and safety training • Ensuring that all workers and visitors are made aware of hazards both real and potential so they can look after themselves and keep others safe while at work or visiting SFNZ premises • Ensuring that the safety of our workers is not compromised by anyone under the influence of drugs, alcohol or fatigue • Actively promoting the health, safety and wellbeing of our workers

To achieve our vision of a safe working environment we are committed to take the actions listed in this policy, as well as pro-activity considering our own safety, the safety of those around us, and take care of our environment.

APPENDIX 5: SFNZ ENVIRONMENTAL POLICY

Our Commitment Summit Forests New Zealand Limited (SFNZ) is committed to the responsible stewardship of forests under our management. It is our goal to deliver optimal value to our investor clients, while protecting the future productivity of the land and ensuring that over time the environmental, cultural and community values of the forests we manage are maintained or enhanced. Legal and other requirements We will operate our business so that we meet or exceed all statutory environmental requirements, relevant Codes of Practice, industry best practice and agreements as described in the company EMS. Treaty of Waitangi We will conduct our business in accordance with principles of the Treaty of Waitangi that are relevant to our operations, as articulated through legislation. Third party certification We will seek to maintain third party certification and conduct our operations in accordance with the requirements of the organisation and standards to which we are certified. SFNZ has maintained Forest Stewardship Council ® Certification (FSC ®) (FSC-C112972) since establishment in 2013. The acquisition company was originally FSC certified in 2008. Resources We will allocate sufficient resources to ensure the responsible stewardship of the forests under our management, and to further develop knowledge of plantation forestry through involvement in industry trials and research. Training and development We are committed to training and developing managers, employees and our contractors so as to ensure that all individuals working on behalf of SFNZ are competent in meeting the company’s environmental requirements. Systems and practices We will develop and implement best practice systems and management practices to ensure a systematic approach to forest management and the maintenance and enhancement of the soil, water, biodiversity, cultural, landscape amenity and community values of our forests. Stakeholder engagement We will proactively engage with stakeholders and interested parties so as to ensure consideration of their views in forest management planning, promote constructive community relationships and increase awareness and understanding of our operations. Continuous improvement We will undertake regular reviews of our forest management systems in light of new information, to strive for continuous improvement in our operations and forest stewardship outcomes.

APPENDIX 6: THREATENED SPECIES MANAGEMENT PLAN

Australasian bittern https://rarespecies.nzfoa.org.nz/species/australasian-bittern/ Threats • Habitat loss and degradation from wetland drainage, loss of riparian margins, and the effects of surrounding landuse. • Invasion of exotic plants, which can seriously modify wetlands and reduce suitability for birds. • High predation rates of wetland birds, particularly brown teal/pateke mainly from dogs, cats and mustelids. Management Methods • Habitat protection: o Protect important wetland habitats and riparian buffers. o Avoid using herbicides or pesticides close to wetlands. o Ensure weeds are not inadvertently introduced to wetlands, e.g. via machinery. o Consider control options for existing, invasive, wetland weeds. • Forest operations: o Minimise damage to riparian and wetland habitat during road construction and harvest operations. o Avoid grazing wetlands and their margins. Fencing may be appropriate in some situations. o Avoid diverting run-off into wetlands. o Minimise disturbance during spring breeding. o Undertake predator control with neighbours and DOC. • Injured or dead wetland birds (particularly the more threatened species, i.e. white heron, bittern and pateke): o Place injured birds in a cardboard box (keep shaded) and deliver to a local vet, SPCA, DOC. o Call DOC if bird is dead. Monitoring • Increase staff and contractor knowledge about wetland birds. • Consider undertaking a bird monitoring programme: o The booming calls of bittern are characteristic at dusk in September-October particularly during bright moonlight. • Maintain a database of sightings. Sun orchard http://www.nzpcn.org.nz/ Threats • Habitat modification and loss. • Competition with exotic plants. Management Method • Protection of habitat. • Weed control where necessary. Monitoring • Check existing populations annually. Report new locations to DOC, NZPCN Freshwater mussel Threats • Destruction of riparian vegetation. • Disturbance of banks and beds of waterways. • Harvesting. • Habitat destruction from: o Introduction of aquatic weeds. o Siltation. o Eutrophication (high nutrients). o Artificial barriers to upstream migration (e.g. culverts, fords with large lips creating a drop off). o Depleted flows caused by water abstraction. Management Methods • Maintain corridors of riparian vegetation along banks. • If possible, expand width of riparian zones during later rotation planting. • Exclude livestock from riparian areas. • Control goats that could enter riparian areas. • Comply with best forest operational management practices to avoid damage to riparian areas. • Manage or prevent water abstraction from critical habitat areas. Monitoring • Survey during annual steam monitoring to identify presences of species and habitats. • Periodic checks of banks to ensure compliance with best forest operational management practices, pest and weed levels and siltation. • Report findings to DOC. Stalked adder’s tongue fern http://www.nzpcn.org.nz/ Threats • Wetland drainage. • Habitat modification and loss. • Natural succession by taller vegetation can shade it out. • Competition with exotic plants. • Browsing by slugs and snails. Management Methods • Protection of habitat. • Weed control. Monitoring • Check existing populations annually. • Report new locations to DOC, NZPCN. Northern lesser short-tailed bat and Long-tailed bat http://rarespecies.nzfoa.org.nz/site/assets/files/1088/bats_in_plantations_management_guidance_for_nzf oa_revised_23_may_2018.pdf Threats • Felling of roost trees. • Habitat loss and degradation through land development. • Predation of adults and young by cats, mustelids (particularly stoats), possums and rats. • Current research suggests bats may be susceptible to some toxins, e.g. poison in paste form. Management Methods • Protect indigenous forest remnants. • Undertake predator control (Pest control priority is to protect roost trees but avoid the use of poison pastes). • Injured or dead bats: o Place injured or dead bats in a cardboard box (keep cool) and deliver to a local vet, SPCA, or DOC as soon as possible. o Report all injured or dead bats as soon as possible to the local DOC office during office hours or 0800 DOC HOT (0800 362 468) outside office hours. Monitoring Options • Increase staff and contractor knowledge about bats and keep a record of sightings. • SFNZ is investigating - survey at night using bat detectors. o Long-tailed bats prefer to fly along habitat edges, so bat detectors placed along forest edges, roads and tracks, and along streams are most likely to detect long-tailed bats. o Short-tailed bats prefer old growth forest and indigenous vegetation, so placement of bat detectors within forest habitat. o Focus monitoring in areas with mature trees (indigenous or exotic) and sites from where bats have been reported. • Report findings to DOC national bat database. New Zealand Flax Snail Threats • Predation of snails by introduced predators, particularly pigs, rats and possums is a serious threat. The relative impact of these predators can vary between sites (e.g. high pig impacts in some parts of Northland) or over time (e.g. possums seem to have acquired the habitat of eating large land snails relatively recently). • Habitat loss has greatly depleted the range and has isolated many populations. • Habitat deterioration caused by grazing mammals, e.g. livestock, goats, pigs. • Habitat damage and snail deaths caused by forestry operations. • Collection of shells of dead snails, thereby removing calcium needed by live snails for shell growth. Management Methods • Habitat protection: o Maintain corridors and enclaves of indigenous vegetation. These areas will provide permanent habitat for snails as well as refuge during harvesting. o Consider permanent protection of these natural areas. • Harvesting procedures: o Minimise impacts on remnant indigenous vegetation. o Avoid ground-hauling logs and digging deep channels in sensitive areas. o Seek specialist advice (DOC, Muriwhenua Incorporation). • Post-harvest: o Avoid grazing and spraying of indigenous vegetation to encourage cover and higher ground moisture levels. o Avoid disturbance of known snail habitat during land preparation. • Predator control: o Control predators (pig, possum, rat) to low levels over a wide area. o Maintain contact with DOC, Councils, Muriwhenua Incorporation. • Grazing and browsing: o Exclude livestock from snail habitats. o Control possums, cattle and horses that could affect snail habitat. Monitoring Options • SFNZ undertake indigenous vegetation survey every 5 years and have fenced the colony from pig predation. • Muriwhenua Incorporation as the landowners have taken responsibility for management of NZ Flax snail. They undertake pest control and monitoring of populations in consultation with DOC staff for specialist. Kanuka Threats • Habitat modification and loss. • Hybridism with other Kunzea species is a potential problem near urban settings. Management Method • Protection of habitat. • Advocacy to staff and contractors – not to gather as firewood. • Public access permits prohibit taking of native plant material. • Allow permitted firewood gathering of exotic species. Monitoring • Check existing populations annually. Report new locations to DOC. Kirk’s daisy http://www.nzpcn.org.nz/ Threats • Habitat modification and loss. • Browsing by possums, goats and deer. Management Method • Mark known sites. • Protection of habitat. • Pest control by poisoning, trapping and hunting. • Ensure that forest owners are aware of potential habitats and can recognise the species. It is often overlooked because of its epiphytic habit. Monitoring Options • Report new locations to DOC, NZPCN. Kauri https://www.kauridieback.co.nz/ Threats • Kauri dieback disease (known as Phytophthora agathidicida) is the main threat to kauri. It can result in yellowing of foliage, loss of leaves, canopy thinning, dead branches, bleeding lesions at the base of the trunk, and the death of trees and seedlings. Management Opportunities • Ensure that forest users are aware of the threat of kauri dieback. • Prevent transmission of kauri dieback to unaffected trees and populations, particularly through human activities. • Protect habitat. Monitoring Options • Check existing populations annually. North Island brown Kiwi https://rarespecies.nzfoa.org.nz/site/assets/files/1088/final_forestry_guidelines_kiwi.pdf Threats • Attacks by dogs, usually causing death. • Predation: o Of adult kiwi by ferrets, and possibly by possums and pigs. o Of chicks by stoats, cats, ferrets, possums and possibly pigs. o On eggs by possums and pigs. • Deaths from falling into steep-banked ponds and cattle-stops. • Hit by vehicles at night. • Habitat loss and degradation through land development. • Isolation of remnant populations through land development. • Forest operations such as slash-burning, harvesting (particularly during nesting) and land preparation. SFNZ Management Methods Habitat protection: • Protect indigenous vegetation, including corridors and riparian habitat where kiwi frequently forage. As these areas will provide refuge during harvesting and access to other habitat areas. Forest harvesting where kiwi are present: • Ascertain if they have escape routes to alternative habitat, especially indigenous habitat. • Train staff and contractors in identification, discovery and emergency procedures • If kiwi are in danger from harvesting seek advice from Accredited kiwi handler or DOC staff. Post-harvest: • Avoid grazing, burning or spraying of riparian and indigenous habitat. • Avoid disturbance of known kiwi habitat (i.e. slash piles) during land preparation. • Pest control in kiwi areas: • Allow permit access to only those dogs with kiwi-avoidance training. • Intensive mustelid and cat control. • Maintain possum numbers at moderate to low levels. • Maintain contact with DOC, councils, land care groups and other groups to co-ordinate pest control. Injured or dead kiwi: • In the event of an injured bird, place in a darkened box or carton and keep warm, but not in direct sunlight, while being delivered to SPCA or a local vet. • Call DOC if you find a dead bird. Survey and Monitoring Options • Increase staff and contractor knowledge about kiwi and keep a record of sightings, calls and evidence of sign. • Look for kiwi probe holes in likely areas. • Determine kiwi presence using call-count surveys. • For monitoring of kiwi abundance over time, selected monitoring stations are annually surveyed during call count window (May and June), on dark, moonless nights when calls are more frequent. • Report findings to DOC and Kiwi Coast.

APPENDIX 7: CITES SPECIES

The Convention on International Trade in Endangered Species (CITES). CITES is an international agreement that regulates and monitors trade in animal and plant species to ensure it does not threaten their long-term survival in the wild.

CITES monitors and regulates trade in endangered species through a system of permits and certificates. Species are listed in three different 'Appendices', depending on their conservation status and how much they are traded. Permit requirements are different for each Appendix.

• Appendix I species are the most endangered, and trade is more restricted for those species.

• Appendix II species can withstand more trade.

• Appendix III species are those where individual countries have asked for help to protect those species.

CITES is implemented in New Zealand through the Trade in Endangered Species Act 1989 (TIES Act). The administration of CITES is provided by the Department of Conservation. The New Zealand Customs Service and Ministry for Primary Industries are responsible for border controls.

Species from New Zealand listed by CITES (Accessed: May 2019 update)

Bird Species Scientific name Appendix Kākāpō Strigops habroptila I Red-crowned parakeet Cyanoramphus novaezelandiae I Chatham Islands yellow-fronted parakeet; Forbes’ parakeet Cyanoramphus forbesi I Kea Nestor notabilis II Kākā Nestor meridionalis II Yellow-crowned parakeet; Yellow-fronted kakariki Cyanoramphus auriceps II Orange-fronted parakeet Cyanoramphus malherbi II Antipodes green parrot Cyanoramphus unicolor II Campbell Island brown teal Anas nesiotis I Brown teal Anas chlorotis I Auckland Island teal Anas aucklandica I Harrier hawk Circus Appendixroximans II New Zealand falcon Falco novaeseelandiae II Morepork/ruru Ninox novaeseelandiae II Reptiles Species Scientific name Appendix Tuatara Sphenodon spp. I New Zealand giant geckos Hoplodactylus spp. III New Zealand tree geckos / green geckos Naultinus spp. II Northern brown geckos Dactylocnemis spp. III Forest and alpine geckos Mokopirirakau spp. III Striped geckos Toropuku spp. III Harlequin geckos Tukutuku spp. III Rock geckos Woodworthia spp. III Plants Species Scientific name Appendix All orchids** Orchidaceae II Tree ferns (Cyathea, not Dicksonia) Cyathea spp. II APPENDIX 8: DESCRIPTION OF MONITORING ACTIVITIES

Monitoring Activity

Monitored Description Reporting Element Frequency Chemical Usage Rates per hectare are collated for the period ending 31st March of On demand/ each year. GPS records of spraying operations including flight lines. Annual ESRA will be completed for all FSC listed highly hazardous substances. Public Feedback Public feedback involving complaints, communications and Weekly/ compliments and any actions are discussed at weekly staff meetings Annually and reviewed annually. Environmental Incidents are discussed at weekly meetings and learning’s reviewed On demand / Incidents annually. Annually Rare, Threatened Presence of RTE flora and fauna are reported to DOC as discovered, Annually and Endangered following guidance given by DOC. Sightings are collated into a Flora and Fauna database for annual reporting and included as a spatial record. These sightings continue to map out the existence and location of RTE species for future information to assist ongoing studies of any threatened flora and fauna. Forest Growth Permanent sample plots (PSP). Established annually Re-measured at first thin, mid rotation and pre- harvest Forest Health Independent annual forest and nursery health surveys are Annually conducted by SPS (some as part of the National FOA forest survey initiative). SFNZ commissions annual forest health surveys of all its forests. Nursery suppliers provide a certificate that reports on the health of their nurseries prior to SFNZ receiving planting stock each year. Foliage samples determine fertiliser regime. Health and Safety Assessments of operations, risks/hazards, accidents, absences and Monthly / Statistics random district alcohol and drug testing, contractor or visitor Annually management and any lead indicators are conducted. Operational and system audits are conducted to identify any areas requiring improvement. Health and safety statistics are reported to management team. Improvements The number of action requests/improvement notices issued to Annually / contractors and their close-out dates per operation are monitored, Quarterly collated. Improvement notices are an important tool in determining any trends relating to non-conformance to best practices. Log Production Forest yield reconciliations: predicted volumes versus actual Annually recovery. Log value recovery (LVR) audits are conducted as required. Operational SFNZ staff operation meets the required quality, environmental and Monthly Monitoring best practice standards, compliance with the conditions of Resource Consents, the pre-operation planning notes and hazard identification and associated controls put in place for the job. The frequency of operational monitoring varies between sites and operations but is maintained at a level that is appropriate to the scale and intensity of the operation and the associated level of environmental impacts that require managing. For most operations, this involves visits to the site at least once per week by SFNZ supervisors and management staff. Supervisors and contractors are encouraged to do environmental monitoring as part of their daily business activity and complete environmental audit. Corrective actions/improvements are issued where any non-conformance is identified and signed off upon completion. Pests The efficacy of pest control operations (plant and animal pests) is Annually monitored with pest control numbers assessed through residual trap catch numbers between winter months (May through to September) each year in control areas that have been targeted to be managed. Other pest control operations may continue outside these periods. Plant pests are identified throughout the year through reports from Summit roadside spray contractors as well as forest users and forest fly overs, and a control programme is implemented once per year. There is visual assessment of all spray operations (aerial, post plant spot spray, roadside spray, specific management plan areas, known weed areas). Reserve Areas Studies of significant non-plantation reference plots for each forest Annually if (SNP) within each ecological district are formally conducted every five restoration years for monitoring of any changes in species composition, initiated presence or health status. SFNZ prioritises areas of indigenous flora and fauna and RTE monitoring and assessment will be based on those areas where effectual maintenance and/or enhancement of the environment can be achieved. This is DOC’s view also, and they will be concentrating their monitoring, maintenance and restoration efforts on indigenous species around this criterion. The monitoring of non-plantation forest areas and riparian margins to assess and control the level of invasion by non-indigenous species, e.g. wilding pines, is an ongoing operational activity with a formal survey every five years being conducted in conjunction with helicopter inspections to assess the level of incursions so that annual budgets and operational culling of these species can be best effected. High Conservation Monitoring of values resulting in HCV status. For further information Annually if Forests see Ecological Management Plan. designated HCV Recreational & Public use and communications are monitored via the forest access Annually Non-timber permit system throughout the year, random patrols of the forest, the fire season management plan requirements and neighbour and forest user notifications augmenting the range of forest monitoring mechanisms. Resource Consents Compliance with conditions of Resource Consents includes regular Annually checks to ensure compliance with work prescriptions, best practices and any Resource Consents. Supervisors are informed of any environmental incidents. Improvement actions are issued (for Summit staff or contractors) for any non-compliance and completed by an agreed date. Annual checks are completed by the relevant regulatory officer for the regional council for all resource consents which are issued. Stream Monitoring Annual monitoring of in-stream values in permanently flowing Annually freshwater streams prior, during and subsequent to harvesting (Monthly operations is conducted once per year at fixed sampling points. The NIWA sampling turbidity measures are used for benchmarking any where possible forestry operational impacts on water turbidity quality. relevant) Staff Training Training needs and supervision are identified at staff induction. Quarterly / Competency is monitored by supervisor/manager on the job. Annually Training is discussed and implemented in the annual performance review with the manager. Training requirements are discussed at staff meetings. Stakeholder Stakeholders are people and organisations with which the company Weekly / Communication has regular contact during the year. Communications/impact on Annually stakeholders and neighbours is discussed at weekly staff meetings. Prior and during all operations consideration is given to impacts on stakeholders and proactive plans to mitigate issues are communicated. Stakeholders are also consulted for decisions on forest management and notified when new forest acquisitions are made in an area. Legislation Any changes to legislation are monitored by six-monthly checks on Six-monthly www.legislation.govt.nz as well as through FOA membership and mailing lists etc. Budgets Forest operations completed are monitored against budgets and Monthly reported on monthly from our head office in Auckland.

IDENTIFIED HCV AREAS IN THE SFNZ MANAGED ESTATE