"SCA Latvijas Meži" SIA Forest Management Plan 2019-2023

APPROVED by order No. of

"SCA Latvijas meži" SIA

Forest Management Plan 2019-2023

Date Version 19.09.2019 V1.0 22.04.2020 V2.0 17.03.2021 V3.0 Updated:

Valmiera, 2019 Table of contents

Introduction ...... 4 1. Description of the holding ...... 5 Description of forest stands ...... 6 Protected nature territories ...... 10 Principles of high conservation value forest management ...... 12 Biologically high conservation value forest stands (HCV 3) ...... 13 Endangered species and their habitats ...... 13 Ecological functions of the forest* ...... 15 Objects of cultural and historical and/or archaeological value ...... 15 Non-timber forest resources ...... 15 Recreation ...... 16 Description of the fauna ...... 16 Description of adjacent lands ...... 17 Forest management goals...... 19 Long-term goals of the company ...... 19 Methods for achieving long-term goals ...... 19 3. Description of forest management system ...... 20 a) Wet forest management ...... 21 b) Forest thinning and reforestation ...... 21 c) Machinery and technology used in felling ...... 22 d) Labour protection ...... 22 4. Substantiation of annual felling amount and species selection ...... 22 5. Forest growth dynamics and monitoring ...... 24 6. Environmental protection measures ...... 33 Trees and forest structures to be preserved ...... 33 Seasonal protection measures ...... 34 Fire safety ...... 34 7. Identification and protection of rare, endangered and vanishing species ...... 36 8. Annex ...... 36 Guidelines for retaining biomass and trees to be preserved in the felling site ...... 43 Retaining trees to be preserved in the felling site ...... 43 Retaining fallen and dry trees in the felling site ...... 43 Placement of ecological values ...... 44 Guidelines for the Protection of Water in Forest Operations ...... 44 Forest management guidelines ...... 45 a) Wet forest management ...... 45 b) Forest thinning and reforestation ...... 45 c) Machinery and technology used in felling ...... 46 d) Labour protection ...... 46 Guidelines for the construction, maintenance and closure of forest roads ...... 46 Procedure for mapping forest areas and marking land boundaries ...... 47 Guidelines for minimizing soil damage ...... 49 Requirements for reducing environmental pollution ...... 50

2 Procedures for recording plant protection products, conducting necessary training and use of labour safety equipment for persons working with the plant protection products...... 54 9. Confidential part of the FMP ...... 56 Endangered species and their habitats ...... 56 Quantitative data to be included over time in the FMP ...... 57

3 Introduction

“SCA Latvijas Meži” SIA (hereinafter referred to as LM) is a subsidiary of SCA Graphic Sundsvall AB and is a part of the group of the Head of the Forest Management Group, which includes forest areas of SCA Graphic Sundsvall AB subsidiaries in Latvia. The Forest Management Plan (hereinafter referred to as the FMP) contains the results of the forest management planning process, including forest management goals, resource assessment, planned and performed activities, as well as references to SCA LM internal regulations. The goal of the SCA LM Group is to manage forest holdings by promoting sustainable forest management in Latvian forests.

The FMP summary is publicly available on www.sca.com. It is discussed with the stakeholders at least every 5 years or whenever significant changes occur in forest management techniques. The management plan is updated at least once a year. The FMP summary complies with the requirements of the legislative enactments of the Republic of Latvia and the forest management standards. Upon developing the FMP, the compliance of the SCS Global Services Interim Forest Management Standard (V4.1 March 2016) and PEFC Forest Management Certification Standard for Latvia with the existing legislation was assessed and no conflictive situations were identified. A reassessment will be carried out whenever the FMP is updated. By approving this document, SCA LM undertakes to comply with the principles and criteria of FSC® (SCS-FM/COC-006949) and PEFC™, as well as with all applicable legal requirements of the Republic of Latvia, and requires the same commitment from all outsourcing service providers. The Head of the Group is responsible for the content of this FMP, and it is approved by the Certification Officer. If you have any questions or comments regarding this FMP, please email them to: [email protected].

4 1. Description of the holding

This chapter provides information on resources of the forests to be managed, environmental restrictions, land use and ownership status, socio-economic conditions, and a description of adjacent lands.

SCA LM manages its own forests in the territory of Latvia. At the time of updating this FMP, five new members of the group is included in the scope of the certificate:

"SCA Latvijas meži" SIA, legal address: Rigas (Rīgas) iela 103, LM Head of the group 1. Valmiera, LV-4201, Reg. No. 40103282492

“SCA Baltijas meži ” SIA Legal address: Rigas (Rīgas) iela 103, BM Joined the group on: Valmiera, LV-4201, Reg. No. 44103055164 2. 19.09.2019

“SCA Vidzemes meži” LLC Legal address: VM Joined the group on: 3. Rigas (Rīgas) iela 103, Valmiera, LV-4201, Reg. No. 44103055164 08.11.2019

4. “SCA Maltas mežš” SIA Legal address: MM Joined the group on: Rigas (Rīgas) iela 103, Valmiera, LV-4201, Reg. No. 50103282051 18.08.2020

5. “SCA Phoenix AM East” SIA Legal address: AME Joined the group on: Rigas (Rīgas) iela 103, Valmiera, LV-4201, Reg. No. 50203253701 18.08.2020

6. “SCA Phoenix AM Latvia” SIA Legal address: AML Joined the group on: Rigas (Rīgas) iela 103, Valmiera, LV-4201, Reg. No. 40203253714 18.08.2020

7. “SCA Phoenix IM” SIA Legal address: IM Joined the group on: Rigas (Rīgas) iela 103, Valmiera, LV-4201, Reg. No. 40203254870 25.08.2020

8. “SCA Phoenix NM” SIA Legal address: NM Joined the group on: Rigas (Rīgas) iela 103, Valmiera, LV-4201, Reg. No. 40203254921 25.08.2020

Activities intentionally violating FSC principles and criteria are not performed in the territories outside the scope of the certificate. All disputes arising out of ownership or usage rights are documented.

5 1. Location of land owned by “LM” in Latvia

2. Location of land owned by “BM” in Latvia

6 3. Location of land owned by “VM” in Latvia

4. Location of land owned by “MM” in Latvia

7 5. Location of land owned by “AME” in Latvia

6. Location of land owned by “AML” in Latvia

8 7. Location of land owned by “IM” in Latvia

8. Location of land owned by “NM” in Latvia

a) Description of forest stands

Forest area total (ha):

Company name Company name short Total foreast area, ha SCA Latvijas Meži SIA LM 5151,03 SCA Baltijas Meži SIA BM 3962,01 SCA Vidzemes Meži SIA VM 8680,07 SCA Maltas mežs SIA MM 142,07 SCA Phoenix AM East SIA AME 4409,91 SCA Phoenix AM Latvia SIA AML 5502,31 SCA Phoenix IM SIA IM 2495,78 SCA Phoenix NM SIA NM 2086,07 Total: 32429,25

The breakdown of the Group members' territory by land categories (ha) is provided in the table below:

Bebru Bebru

Zāļu purvs

Pārejas purvs Pārejas

Pārplūstošs Pārplūstošs

Iznīkusi Iznīkusi

- Company

Mežaudze

Izcirtums

Grand Total

Smiltāj

Meža lauce Meža

Sūnu purvsSūnu

Beaver inundationBeaver applūdinājums Bog Clearcut Extinct forest mežaudze Flooded areas klajums Forest stand Grassland swamp in Placec forestsmall with field Sands place Timber storage vietaKokmateriālu krautuves bogTransition (between mire and other area) Wildlifeground feeding dzīvniekubarošanasMeža lauce AME 17,42 15,74 232,54 0 125,61 3582,95 151,17 166,85 0 0 86,97 30,66 4409,91 AML 21,01 9,36 224,83 0,56 74,68 4807,44 126,07 129,75 0 0,02 102,50 6,09 5502,31 BM 22,87 4,10 170,49 1,90 1,90 3674,84 37,15 45,54 0 0 2,53 0,69 3962,01 IM 30,88 43,45 3,56 1,98 4,65 2327,21 65,71 15,46 0 0 0,16 2,72 2495,78 LM 31,66 1,16 281,84 3,52 19,82 4677,14 63,72 50,63 2,12 0 8,00 11,42 5151,03 MM 3,00 0 0 0 0 136,82 1,04 0,88 0 0 0 0,33 142,07 NM 37,45 0,94 16,64 0 29,62 1902,73 69,97 8,22 0,13 0 18,07 2,30 2086,07 VM 38,54 21,99 382,40 2,13 26,46 8051,42 63,85 59,61 8,72 0 3,53 21,42 8680,07 Grand Total 202,83 96,74 1312,30 10,09 282,74 29160,55 578,68 476,94 10,97 0,02 221,76 75,63 32429,25

10 The breakdown of the Group members' territory by dominant species (ha) is provided in the table below:

Black alder Gray alder Pine - Spruce - Birch - Aspen - Company name - - Other Grand Total Priede Egle Bērzs Apse Melnalksnis Baltalksnis

AME 228,96 322,97 1181,97 174,41 372,29 1209,09 920,22 4409,91 AML 959,14 345,68 1994,12 293,35 593,57 569,91 746,54 5502,31 BM 221,04 676,48 1511,28 140,07 623,03 451,84 338,27 3962,01 IM 76,76 1052,00 734,92 161,46 137,33 151,16 182,15 2495,78 LM 545,37 631,49 1962,96 120,25 580,68 786,54 523,74 5151,03 MM 15,45 18,26 43,65 0,20 24,71 32,55 7,25 142,07 NM 144,11 799,84 458,39 140,14 197,57 144,07 201,95 2086,07 VM 646,47 1392,21 3476,61 195,05 845,53 1449,75 674,45 8680,07 Grand Total 2837,30 5238,93 11363,90 1224,93 3374,71 4794,91 3594,57 32429,25

11 Territory breakdown by age groups (ha):

Species Age group AME AML BM IM LM MM NM VM Grand Total Mature forest 47,76 255,79 48,45 15,74 159,91 5,84 15,85 171,35 720,69

Young stand 53,99 179,31 72,92 45,36 112,05 1,30 83,65 203,31 751,89 Overgrown 0 2,35 0,32 0 11,08 0 0 1,87 15,62

Pine Adult forest 6,50 115,42 15,10 0,43 72,72 0,19 4,31 44,98 259,65 Middle-aged stand 120,71 406,27 84,25 15,23 189,61 8,12 40,30 224,96 1089,45 Total 228,96 959,14 221,04 76,76 545,37 15,45 144,11 646,47 2837,30 Mature forest 32,70 31,89 50,64 10,99 52,09 0,34 27,55 43,57 249,77

Young stand 232,96 174,54 450,48 1022,00 352,67 9,18 735,36 1017,95 3995,14 Overgrown 0 1,35 0 0 0,73 0 0 1,37 3,45

Spruce Adult forest 14,81 39,20 9,56 2,57 32,97 0,71 12,54 11,82 124,18 Middle-aged stand 42,50 98,70 165,80 16,44 193,03 8,03 24,39 317,50 866,39 Total 322,97 345,68 676,48 1052,00 631,49 18,26 799,84 1392,21 5238,93 Mature forest 174,92 244,04 135,51 94,12 187,72 16,43 74,32 406,90 1333,96

Young stand 178,45 659,42 536,68 109,70 910,74 4,55 79,29 1733,58 4212,41 Overgrown 13,43 119,72 18,16 4,23 38,71 0 14,88 24,64 233,77 Birch Adult forest 170,38 304,68 127,48 59,92 154,04 1,59 53,11 215,86 1087,06 Middle-aged stand 644,79 666,26 693,45 466,95 671,75 21,08 236,79 1095,63 4496,70 Total 1181,97 1994,12 1511,28 734,92 1962,96 43,65 458,39 3476,61 11363,90

Mature forest 29,38 46,26 18,50 37,60 17,02 0 29,63 36,24 214,63 Young stand 23,40 67,92 58,15 22,50 57,29 0 13,10 88,14 330,50 Overgrown 2,38 15,50 5,27 3,01 2,35 0,20 3,78 7,20 39,69 Adult forest 23,13 39,42 17,44 10,81 19,16 0 24,53 31,27 165,76

Black alder Middle-aged stand 96,12 124,25 40,71 87,54 24,43 0 69,10 32,20 474,35 Total 174,41 293,35 140,07 161,46 120,25 0,20 140,14 195,05 1224,93 Mature forest 21,13 24,72 18,46 17,22 13,21 0 18,92 16,99 130,65

Young stand 181,63 388,68 385,52 48,22 455,04 10,01 124,14 711,79 2305,03 Overgrown 46,88 50,38 23,82 20,15 18,65 0,21 13,22 10,60 183,91 Aspen Adult forest 47,00 34,80 12,55 7,89 8,38 1,11 17,15 2,84 131,72 Middle-aged stand 75,65 94,99 182,68 43,85 85,40 13,38 24,14 103,31 623,40 Total 372,29 593,57 623,03 137,33 580,68 24,71 197,57 845,53 3374,71

Mature forest 110,25 20,69 32,36 22,19 34,39 1,03 7,07 66,86 294,84 Young stand 319,01 79,87 49,98 3,11 260,94 0,15 1,05 656,70 1370,81

alder Overgrown 404,84 198,38 134,32 69,46 119,94 11,71 64,01 107,03 1109,69 Adult forest 70,83 33,69 25,76 11,90 37,49 1,64 11,96 53,11 246,38

Grey Middle-aged stand 304,16 237,28 209,42 44,50 333,78 18,02 59,98 566,05 1773,19 Total 1209,09 569,91 451,84 151,16 786,54 32,55 144,07 1449,75 4794,91 Grand Total 3489,69 4755,77 3623,74 2313,63 4627,29 134,82 1884,12 8005,62 28834,68

Territory breakdown by forest site types (ha):

Forest site types AME AML BM IM LM MM NM VM Grand Total

Bez nosaukuma 589,16 468,04 105,74 158,82 168,29 5,05 165,72 218,99 1879,81 Damaksnis 365,71 1181,71 448,92 374,78 1023,07 7,12 449,09 1633,80 5484,20 Dumbrājs 129,00 201,86 80,18 152,25 194,40 1,71 164,04 228,56 1152,00 Gārša 65,83 70,92 20,13 42,57 61,99 6,09 0,26 313,20 580,99 Grīnis 0 0 0 1,54 0 0 0 0,29 1,83 Lāns 49,30 247,15 14,55 3,17 19,76 0 7,66 33,38 374,97 Liekņa 1,25 6,74 5,32 0,27 6,75 0 1,91 1,81 24,05 Mētrājs 19,92 10,52 7,50 0,21 4,73 0 0 4,26 47,14 Mētru ārenis 0 7,30 16,57 0 9,70 6,22 0 14,34 54,13 Mētru kūdrenis 1,15 21,57 5,29 0 17,99 0 0 18,19 64,19 Niedrājs 141,32 400,06 148,34 109,01 285,17 0,35 79,34 339,17 1502,76 Platlapju ārenis 68,05 127,01 279,22 35,02 210,33 6,75 25,83 674,04 1426,25 Platlapju kūdrenis 82,61 190,21 215,84 61,70 161,34 2,83 46,75 360,96 1122,24 Purvājs 24,80 32,10 48,63 17,85 63,81 0 3,82 63,42 254,43 Šaurlapju ārenis 36,92 213,84 137,87 24,23 241,08 7,48 22,97 425,96 1110,35 Šaurlapju kūdrenis 166,78 345,95 265,71 51,25 332,80 0,73 39,42 504,63 1707,27 Sils 0 0 0 0 0,83 0 0 1,01 1,84 Slapjā gārša 21,09 25,35 17,30 7,65 27,27 0 0 70,63 169,29 Slapjais damaksnis 110,36 267,60 82,08 15,89 262,05 2,70 19,47 295,53 1055,68 Slapjais mētrājs 1,06 28,71 9,37 0 8,96 0 0 5,34 53,44 Slapjais vēris 310,69 204,54 208,30 96,10 272,18 8,80 96,31 535,84 1732,76 Vēris 2224,91 1446,19 1839,10 1343,47 1769,15 82,55 963,48 2918,67 12587,52 Viršu ārenis 0 0 0 0 0 3,69 0 0 3,69 Viršu kūdrenis 0 4,94 6,05 0 9,38 0 0 18,05 38,42 Grand Total 4409,91 5502,31 3962,01 2495,78 5151,03 142,07 2086,07 8680,07 32429,25

The breakdown of the Group members' territories by site indexes (ha) is provided in the table below: Company name I Ia II III IV V Va Grand Total AME 1606,79 1321,35 1119,16 241,52 90,08 29,61 1,40 4409,91 AML 1499,28 1461,97 1556,10 564,16 310,06 96,45 14,29 5502,31 BM 1360,96 942,76 887,98 491,02 198,25 69,93 11,11 3962,01 IM 1141,03 428,54 598,47 254,73 68,36 4,14 0,51 2495,78 LM 1604,50 1095,07 1409,96 499,92 374,09 134,88 32,61 5151,03 MM 45,87 28,57 44,86 19,50 3,27 0 0 142,07 NM 824,38 397,16 558,11 234,19 52,51 17,31 2,41 2086,07 VM 3051,03 1497,16 2626,72 824,85 521,87 137,23 21,21 8680,07 Grand Total 11133,84 7172,58 8801,36 3129,89 1618,49 489,55 83,54 32429,25

13 Breakdown of the average forest volume by tree species and age groups in 2020 (m3/ha): Age class Species AME AML BM IM LM MM NM VM Grand Total Pine 69,7 84,4 87,2 49,1 65,2 95,8 79,5 50,5 70,3

Spruce 88,0 71,1 61,8 19,7 70,4 132,4 23,7 66,2 53,6 Birch 54,9 46,1 44,6 54,8 38,8 75,1 74,2 39,7 42,9 Black alder 38,5 35,1 49,8 34,2 25,9 0 28,7 33,3 35,8

Young stand Aspen 71,5 70,6 88,9 79,5 66,9 64,2 99,7 75,6 75,8 Grey alder 23,2 21,7 35,5 9,3 51,0 50,0 18,5 74,2 55,7 Total 55,2 58,6 61,5 32,4 52,5 84,9 47,6 57,9 55,2 Pine 267,4 292,0 276,0 269,6 264,6 297,3 265,5 282,1 279,7 Spruce 264,9 298,8 322,2 246,7 312,4 333,6 271,4 328,0 311,6 Birch 177,3 180,1 175,9 174,5 176,5 203,9 180,8 169,4 175,9

aged stand aged - Black alder 204,9 197,6 187,1 192,0 208,4 0 186,1 214,8 197,8 Aspen 182,5 163,8 176,0 149,8 172,3 170,2 176,3 152,8 168,1

Middle Grey alder 90,5 78,9 94,3 87,8 104,6 68,9 98,5 84,1 89,5 Total 172,7 199,4 191,3 174,0 193,4 191,9 187,0 185,0 187,6 Pine 267,1 300,1 255,9 261,0 292,6 287,7 284,7 309,8 294,0

Spruce 277,6 309,4 316,1 272,5 328,3 333,5 315,2 333,8 315,3 Birch 228,7 249,8 240,4 207,9 233,1 273,1 210,4 247,8 238,2 Black alder 227,2 229,9 228,3 211,8 217,4 0 220,4 251,7 228,3 Aspen 240,7 268,4 280,8 234,3 252,8 0 248,4 259,9 255,5

Mature forest Mature Grey alder 150,2 161,8 161,0 138,2 163,1 206,4 142,1 156,6 155,0 Total 217,5 265,4 250,2 213,2 259,7 267,0 234,8 262,2 250,6 Pine 252,9 288,7 262,0 236,0 260,7 449,0 243,3 291,3 276,9 Spruce 268,4 314,8 256,3 381,7 320,0 313,5 293,5 342,4 307,1 Birch 218,1 254,6 251,0 214,1 237,0 212,5 197,4 236,8 237,3 Black alder 220,0 225,7 241,2 211,2 200,5 0 184,0 251,9 222,9

Adult forest Aspen 281,3 301,7 352,9 265,8 293,0 236,3 265,0 314,6 292,6 Grey alder 158,0 172,2 162,3 163,4 166,5 174,9 137,7 157,5 161,4 Total 215,8 258,0 249,4 218,6 245,1 228,9 217,0 240,0 240,0

Pine 0 191,0 116,0 0 246,2 0 0 247,8 235,0 Spruce 0 240,0 0 0 343,5 0 0 372,2 348,5 Birch 211,9 223,8 230,8 181,3 214,4 0 123,9 248,8 219,7 Black alder 297,0 200,2 261,0 199,0 234,0 177,0 157,0 235,6 216,8 Aspen 281,9 314,8 307,2 281,5 312,3 392,0 292,7 348,2 305,8

Overgrown forest Overgrown Grey alder 183,1 191,1 183,1 166,9 189,3 216,2 173,8 188,1 184,4 Total 195,6 217,2 206,0 189,6 208,2 228,7 184,7 221,1 205,5 Grand Total 159,8 179,1 153,1 134,1 145,6 192,7 143,9 135,6 151,1

14 Homogeneous spruce stands older than 40 years (spruce is more than 90% of the tree species composition) (ha):

Company Ha AME 1,04 AML 2,70 BM 0,92 IM 0,16 LM 22,60 MM 1,53 NM 4,16 VM 43,71 Grand Total 76,82

Currently, invasive species (Giant hogweed — Heracleum sosnovskyi) are identified in the forest areas to be managed. Refer to the table below. VM Administrative territory Cadastral unit Cēsu 42900040028 Cēsu 42900040207 Alojas 66270040166 Alojas 66440040116 Salacgrīvas 66600060196 Limbažu 66640010105 Limbažu 66800040105 Limbažu 66880080209 Beverīnas 96460070045 Kocēnu 96520050304 Kocēnu 96520050305 Naukšēnu 96660020006 BM Administrative territory Cadastral unit Madonas 70760080010 LM Administrative territory Cadastral unit Alūksnes 36420060208 Cēsu 42900050127 Limbažu 66520020026 Limbažu 66520020026 Valkas 94580010025 Mazsalacas 96760050004 AML Administrative territory Cadastral unit Kārsavas 68720050011 Kārsavas 68720050011

15 Kārsavas 68720050011 Kārsavas 68720050011 Viesītes 56350090004 Krāslavas 60680030424 AME Administrative territory Cadastral unit Viesītes 56350090003 Dagdas 60460050206 Dagdas 60460050206 Dagdas 60460050207 Dagdas 60500010081 Dagdas 60500030457 Dagdas 60500060051 Dagdas 60500060051 Dagdas 60500060051 Dagdas 60500060051 Dagdas 60500060051 Dagdas 60500060069 Dagdas 60500070088 Dagdas 60500070133 Dagdas 60500070136 Dagdas 60760030043 Dagdas 60760030048 Dagdas 60760030048 Dagdas 60760030048 Dagdas 60800010134 Dagdas 60900010153 Dagdas 60900010233 Dagdas 60900030001 Dagdas 60900050094 Dagdas 60900050094 Dagdas 60900050094 Dagdas 60900050094 Dagdas 60900050100 Dagdas 60900050100 Dagdas 60900050100 Dagdas 60900050100 NM Administrative territory Cadastral unit Ludzas 68460090066 Ludzas 68460090067 Ludzas 68460090067 Ludzas 68460090067 Ludzas 68460090104

16 a) Transformation of forest lands into plantations or non-forest lands

The manager does not plan to transform forest lands into plantations or non-forest lands, but if it does so, it will consult the Head of the Group and: a) it will affect a very limited part of the forest to be managed; b) it will not occur in high conservation value forests; c) it will provide clear, significant, safe and long-term additional environmental benefits for the entire territory under management in general.

b) Protected nature territories

It is continuously ensured in the territory to be managed that a part of total forest land is devoted to the primary purpose — nature protection. Protected nature territories specified by law where economic activities are restricted or prohibited are listed in the table below.

Grand Total Restriction AME AML BM IM LM MM NM VM (ha) Final felling not allowed 0 83,54 3,43 0 7,17 0 7,65 0 101,79 Final felling and thinning prohibited 0 119,66 8,51 0 0 0 4,22 0 132,39 Clearcut not allowed 159,11 704,63 112,14 55,39 237,61 2,79 87,13 195,16 1553,96 Forestry activities prohibited 0,94 85,82 7,18 0 26,02 0 0 34,92 154,88 Forestry activities prohibited seasonally 1,79 46,15 21,54 0 124,35 0 0 95,37 289,20 Grand Total (ha) 161,84 1039,80 152,80 55,39 395,15 2,79 99,00 325,45 2232,22

17 Areas with economic restrictions have the following categories and types of protection in 2020, ha:

Category AME AML BM IM LM MM NM VM Total

Biosphere reserves 0 0 124,1 0 1809,2 1,2 0 5409,6 7344,2

Buffer zones around micro reserves 2,0 68,2 70,4 0,2 117,7 2,4 0,9 84,7 346,5

Micro-reserve 0 13,4 14,4 0,7 12,4 0 0 12,0 52,9

National park 552,9 450,4 0 0 172,0 0 0 114,2 1289,5

Nature monument 0 14,2 0 0 0 0 0 5,9 20,0

Nature park 0 51,9 9,1 0 14,0 0 0 6,7 81,6

Nature reserve 2,8 133,8 15,3 0 33,4 0 11,9 0,6 197,7

Protected landscape areas 0 1393,3 40,8 0 30,6 0 0 14,2 1478,9

Special protection forest districts 0 0,4 5,3 0 4,8 0 0 0,7 11,2

Strict nature reserves 0 0 3,2 0 0 0 0 0 3,2

Water and swamp prodection zone 0 130,6 0 0 0 0 0 0 130,6

Total 557,7 2256,2 286,7 11,2 2196,2 3,6 12,7 5655,8 10980,2

18 Protected high conservation value forest/territories Existing protected high conservation values and relevant territories: Forests or territories containing areas of biodiversity values of global, regional or HCV1 ☒ national significance (e.g., endemism, endangered species, refugia). Total, Company LM BM VM AME AML IM NM MM ha

Specially protected nature territories of national significance, where there are restrictions on economic activities, micro- 315,1 108,0 138,3 5,1 729,8 0,3 11,9 0 1308,6 reserve territories and buffer zones or species habitats without buffer zones

Forests or territories which include landscape-level forests of global, regional or national significance which are included or which include forest management units that contain HCV2 ☒ populations of almost all viable wildlife species in their natural distribution and quantitative structure.

Total, Company LM BM VM AME AML IM NM MM ha

44,59 64,86 15,79 0 1761,47 0 0 0 1886,71

Forests or territories that are in rare, endangered or vanishing ecosystems or which HCV3 ☒ contain such ecosystems. Total, Company LM BM VM AME AML IM NM MM ha Protected habitats of the EU and local significance. With or without statutory 137,46 109,28 105,2 94,22 428,76 141,93 71,57 0,2 1088,62 restrictions on economic activity Forests or territories providing nature preservation functions (e.g., protection of sources HCV4 ☒ of water, preventing erosion in critical situations). Total, Company LM BM VM AME AML IM NM MM ha Protection zones of rivers and watercourses where 286,02 133,81 305,65 239,19 478,47 208,15 100,06 7,34 1758,69 restrictions on economic activity are established. Forests or territories fundamental to meeting basic needs of local communities (e.g., HCV5 ☐ subsistence, health)

0 Forests or territories of particular significance for the preservation of the traditional cultural identity of the local community (areas of cultural, historical, ecological or HCV6 ☒ religious significance to the local community identified in cooperation with such local communities) Total, Company LM BM VM AME AML IM NM MM pcs

Protection zones of cultural and historical objects, where restrictions on economic 162 40 97 77 360 68 112 25 941 activities are established.

Only activities permitted by the State and/or forest management standard requirements are carried out in the territories of the high conservation value forests. No clear cutting is planned in the territories that do not qualify as high conservation value forests but are included in the protected territories (full list of protected territories by cadastre is available in taxation data).

Principles of high conservation value forest management

High Regulatory enactment of the Republic of Latvia or internal regulatory enactment of the conservation company governing management value forests HCV1 1. Cabinet Regulation No. 686 "Regulation on Contentmand Procedure for the Development of Management Plan for Specially Protected Nature Territory" 2. Law On Specially Protected Nature Territories 3. Cabinet Regulation No. 264 "General Regulations on Protection and Use of Specially Protected Nature Territories" 4. Law On the Conservation of Species and Biotopes 5. Cabinet Regulation No.940 "Regulation on Microreserve Establishment and Management Procedure, Their Protection, as well as Identification of Microreserves and Their Bufferzones" 6. Cabinet Regulation No.396 "Regulation Regarding the List of Specially Protected Species and Specially Protected Species of Limited Use", 8.11.2000.

HCV2 1. Cabinet Regulation No. 686 "Regulation on Contentmand Procedure for the Development of Management Plan for Specially Protected Nature Territory" 2. Law On Specially Protected Nature Territories

HCV3 1. NA Cabinet Regulation No. 935 "Regulations on Tree Felling in the Forest", 18.12.2012. 2. Cabinet Regulations No. 936 “Environmental Protection Requirements in Forest Management”, 18.12.2012. 3. Cabinet Regulations No. 350 "Regulations on the List of Specially Protected Habitat Types", 28.06.2017. HCV4 1. Protection Zone Law, 05.02.1997. 2. Cabinet Regulation No. 935 "Regulations on Tree Felling in the Forest", 18.12.2012. 3. Cabinet Regulations No. 936 “Environmental Protection Requirements in Forest Management”, 18.12.2012. HCV5; NA HCV6 1. Law On Protection of Cultural Monuments (Adopted on 12.02.1992) 2. Cabinet Regulations No. 473 "Procedures by which Cultural Monuments shall be Included in the List of State-protected Monuments and Excluded from the List of State-protected Monuments" 3. Cabinet Regulations No. 474 "Regulations on the Accounting, Protection, Use, Renovation of Cultural Monuments and Granting the Status of an Environmentally Degradable Object"

In order to ensure the preservation of the high conservation value forests for each high conservation value forest category existing in nature, performance indicators corresponding to the identified high conservation value feature or goal are applied. Annual monitoring provides data on the development of the high conservation value feature (species composition, distribution, phytosanitary status, etc.) and deviation from the goal.

Biologically high conservation value forest stands (HCV 3)

In case there is a suspicion on the presence of HCV 3 in managed territories the members of the SCA LM Group use the World Fund for Nature guide "How to Recognize One's Own Biologically High Conservation Value Forest Stand" and modified HCV 3 detection forms to identify HCV 3. If there is indication of the existence of a potentially high conservation value the foresters will conduct a field audit using the High Conservation Value Forest Identification Form to determine whether the area complies with the HCV 3 status or not. If, during the planning of forestry operations, reasonable information has been obtained through research on regional or State protected parameter databases and maps or through comments from stakeholders (forest labourers, environmental organizations, etc.) that the forest holding complies with the HCV status (HCV 1, HCV 2, HCV 3, HCV 4, HCV 6), the Group member promptly informs the Head of the Group of this fact and uses HCV 3 detection forms to identify territories and potential hazards. Training on the use of the HCV 3 guide and questionnaires is provided by external lecturers.

Overgrown stands The forest manager protects the stands where the felling age is significantly exceeded beyond the statutory restrictions on forestry activities. Such stands are considered to be stands where the felling age is exceeded by 2 age classes. Data for the year 2020 are provided in the table below:

Grand Species Age from AME AML IM MM NM BM LM VM Total (ha) Birch 91 12,22 55,59 3,14 0 0,81 15,93 22,67 18,58 128,94 Pine 141 6,94 0 0 0 0 0,32 12,24 1,87 21,37 Oak 141 1,16 0 0 0 0 1,97 0 1,25 4,38 Spruce 121 1,35 0 0 0 0 0 0,73 1,37 3,45 Black alder 91 2,38 15,5 3,01 0,2 3,78 5,27 2,35 7,2 39,69 Aspen 61 46,88 50,38 20,15 0,21 13,22 23,82 18,65 10,6 183,91

No clearcut is planned in these stands, regardless of statutory restrictions.

22 HCV identified during certification:

Endangered species and their habitats

The list of identified endangered species is prepared by the Group member, and the protection measures are harmonized with the Head of the Group.

Species Protection measures LM Lesser spotted eagle There will be no forestry activity Black stork There will be no forestry activity BM Lesser spotted eagle There will be no forestry activity Black stork There will be no forestry activity VM Lesser spotted eagle There will be no forestry activity Black stork There will be no forestry activity AML Osprey There will be no forestry activity Lesser spotted eagle There will be no forestry activity Northern Goshawk There will be no forestry activity AME Lesser spotted eagle There will be no forestry activity IM Lesser spotted eagle There will be no forestry activity MM Lesser spotted eagle There will be no forestry activity

A list of the territories where the species listed in the table above are located is available in the confidential part of the FMP. In case a big bird nest is discovered during the forest management works, the works shall be stopped immediately and Environmental Board shall be notified, who gives instructions for further action.

23 Ecological functions of the forest*

Regulatory functions Habitat functions Productive functions CO2 capture and O2 production during Living and breeding ground for animal Ensuring and improving the growth the photosynthesis process species and quality of wood and non-wood resources Air quality assurance Preservation of biodiversity Increase of ecosystem productivity (stabilization at a natural level) Water quality assurance Balanced numerical ratio of species Ensuring the sustainability (non- depletion) of the ecosystem (forest stand) productivity Provision of water volume Renewal of optimal food chains and Maintaining soil quality by providing a ecological niches precondition for increasing forest productivity Protection against erosion Providing proper conditions for the Providing proper conditions for the natural development of coastal and preservation of fish resources inland water ecosystems *The summary of the West Vidzeme Forest Management Plan for 2015 - 2019 of JSC LVM was used for the description of forest ecological functions.

Objects of cultural and historical and/or archaeological value

The forest manager ensures that the objects of cultural and historical and/or archaeological value are protected by coordinating activities with the National Heritage Board (NHB). All objects are available in LVM Geo program. The following are considered to be such objects:  Grave sites  Former homes  Decorative tree plantations and alleys  Certain old trees  Certain tapped trees, etc.

24 The protection zones around cultural monuments are managed in accordance with:  Law On Protection of Cultural Monuments (Adopted on 12.02.1992)  Cabinet Regulation No. 473 "Procedures by which Cultural Monuments shall be Included in the List of State-protected Monuments and Excluded from the List of State-protected Monuments"  Cabinet Regulations No. 474 "Regulations on the Accounting, Protection, Use, Renovation of Cultural Monuments and Granting the Status of an Environmentally Degradable Object"

Non-timber forest resources

The forest manager is aware of the value of the non-timber forest resources (products and services).

The forest manager has identified the following non-timber resources in its forest holdings:

Resource Location Output volumes They are not picked for commercial purposes (freely available All forest Wild berries and mushrooms to the local community), if the forest environment is not holdings damaged and fire safety regulations are observed

All forest Game animals Not acquired for commercial purposes (areas are leased) holdings

Recreation

It is planned to make a public place for recreation in property Branči 66440010081 Alojas region in 2021.

Location of recreation place Date of creation Description Veckāsuļi 80840090002 2020 Riverside

Description of the fauna Fauna representatives typical of Latvia such as beaver, red deer, wild boar, elk, roe, etc. can be found in the SCA LM Forest Management Group. Information on the number of game fauna representatives (limited and unlimited) such as beaver, red deer, wild boar, elk and roe is collected annually, and monitoring is based on the data provided by the State Forest Service (SFS) on the changes in the fauna population at national level.

k) Beaver inundations Currently, the forest manager has identified long-term beaver inundations in the forest holdings with a total area of 202,83 ha (see table below), the manager is aware of the need to provide at least partial protection thereof, inundations made on natural watercourses will be primarily protected if it does not affect melioration systems.

Manager AME AML BM IM LM MM NM VM Grand Total Beaver inundation 17 21 23 31 32 3 37 39 203

Phytosanitary condition

In order to ensure the awareness of the Group members of the phytosanitary condition of Latvian forests, the annual surveys are examined provided by the Latvian State Forest Research Institute (LSFRI) "Silava" (within the framework of the monitoring the following forest pests are analysed: pine looper, nun moth, gypsy moth, European spruce bark beetle, European pine sawfly, etc.). All national forest monitoring results are available on SILAVA homepage (http://www.silava.lv/petijumi/nacionlais-mea- monitorings.aspx).

k ) Description of adjacent lands

Territorial location Latvia is located in Northern Europe, on the eastern coast of the Baltic Sea. The country covers an area of 64 589 km2. The total length of the Latvian border is 1836 km, of which 1382 km is the land border. It has land borders with Estonia, Russia , Belarus and Lithuania, as well as sea borders with Sweden, Lithuania and Estonia. In Latvia, water covers an area of approximately 2340 km2, which is 3.62% of the total territory of the country. There are more than 12,000 rivers in Latvia with a total length of about 38,000 km, the largest of which are the Daugava, Lielupe, Gauja and Venta, as well as 2256 lakes, which are larger than 1 ha. The largest lakes in Latvia are Lubāns, Lake Rāzna, Lake Engure and Burtnieks. There are large, medium and micro forms of terrain in Latvia. The large forms of the Latvian terrain are lowlands and highlands, the lowlands cover 60%, while the highlands cover 40% of the territory. The main highlands are Vidzemes highland, Alūksnes highland, Latgales highland, Augšzemes highland, Rietumkursas highland, Austrumkursas highland, Ziemeļkursas highland, Idumejas highland and Sakalas highland. The most important lowlands are Piejūras lowland , Kursas lowland, Viduslatvijas lowland (this lowland includes the Zemgales plain), Tālavas lowland, Veļikajas lowland and East-Latvian lowland.

27 Climatic conditions Latvia is located in a temperate zone, and its climate is influenced by the proximity of the sea and air masses that come from the Atlantic Ocean resulting in a mild and humid climate in Latvia and a marked change of four seasons. As Latvia stretches from North to East, the climate in the West and East is slightly different. The sky is often overcast, on average 160 to 180 days a year. Average precipitation ranges from 574 to 691 mm per year.

The average air temperature in the coldest month of January in the eastern part of Latvia is around −7 ° C, while the average air temperature in the hottest month of July in the eastern part of Latvia is around +17.5 ° C.

Forests The forest is a characteristic landscape feature, as it takes up about 52% of the area of Latvia. The weather of Latvia — rich precipitation, high relative humidity, relatively long vegetation period — is favourable for forest growth. About 52% of the dominant species growing in Latvian forests are conifers and 48% — deciduous. The most common tree species are pine (34%), birch (30%) and spruce (18%).

Fauna Currently about 13,000 animal species have been identified in Latvia. The richness of the fauna is mainly explained by the geographical position of Latvia. Latvia is located in a mixed forest area which includes fauna elements of both the taiga and broadleaf forest zone. In addition, there are bird migration routes over Latvia along the Baltic Sea. About 60 species of mammals are more or less common in Latvia. Rodent species (19 species) are represented more richly in terms of the number of individuals. There are 12 species of carnivores found in Latvia. The largest of them is the brown bear which seldom comes to us from neighbouring countries, mainly from Estonia. 295 bird species have been identified in Latvia. Birds are also the most represented group of vertebrates in terrestrial biosensors in terms of quantity. They are an important part of the landscape because they regulate the numbers of insects, rodents and many other animals thus indirectly affecting their productivity and natural increase. Strigiform play an important role in rodent catching, of which 13

28 species have been identified in Latvia. About 30 species of birds in Latvia are among the hunted animals. Here the following should be noted galliformes — hazelgrouse, partridge, prairie hen, capercaillie, anseriformes — mallard or wild duck, green-winged teal, garganey, shoveller, charadriiformes — woodcock, snipe and rallidae — coot. Most bird species so far registered in Latvia (190 species) nest here. 45 species travel across the country for wintering and nesting sites, while 15 species arrive for wintering. There are 45 species registered as rare or false visitors. The nesting bird fauna in Latvia is composed mainly of species widely spread in the Palearctic, including elements of broad- leaved forests — pigeons, roller, chaffinch, nightingale, etc. — about 50 species in total. There are fewer elements of the taiga (14 species), of which the following should be mentioned nutcracker, hazelgrouse, capercaillie. The elements of the tundra are almost as many (11 species) — willow grouse, whimbrel, black-throated loon. The following birds have arrived from the steppe zone: partridge, quail, corn crake, etc. Reptile fauna is poor in Latvia because the humid and relatively cool climate is not suitable for most reptile species. Of the 7 species found in the country, only the common viper is poisonous. Source: https://lv.wikipedia.org/wiki/Latvija

Socio-economic conditions Registered unemployment level in January 2021 is 7,9 % in Latvia. The forest sector in rural areas is one of the most important employers offering work in forest regeneration and reforestation, forest stand maintenance, forest infrastructure maintenance, harvesting, etc. It also helps create and maintain indirect jobs in rural areas (wood transport, wood processing, maintenance of transport infrastructure, trade, social service, etc.) In Latvia, the forest sector directly employs over 40 thousand people, while the number of related jobs is also around 40 thousand. As SCA LM is one of the largest forest owners in the remote rural areas, the jobs created by SCA LM play an important role in reducing unemployment, ensuring social protection, maintaining employment levels and maintaining population density in rural areas.

29 Forest management goals

This chapter defines the long-term management goals and the means of achieving them in the economic, environmental and social spheres of the management area. The goals of the company are set by the Head of the Group.

Long-term goals of the company

Economic  Forest management is to be based on the principles of sustainable forest management.  Forest management is to be carried out according to the company's annual budget. The planned management activities are carried out according to the priority investments, thus improving the long-term economic productivity of the forest. Environmental  To carry out forest management in accordance with FSC criteria.  To carry out forest management in an environmentally responsible manner.  At least 10% of the managed forest area is primarily aimed at nature preservation.  Timber harvesting in the forest is planned to be at a lower level than the actual increase in wood supplies.  Management of habitats and biotopes of protected species — forest management is carried out taking into account the existing protected areas and areas of high conservation value forests. The management takes into account the potential areas of appearance of new protected species.  To reduce the areas affected by invasive species through chemical and mechanical containment. Social  Non-timber forest resources are to be available for public use.  Forest management is to be carried out by assessing the impact on the surrounding social environment and society, minimizing potential negative impacts.  To promote the employment of local community in forest management and harvesting activities.  To train the company's employees by providing the necessary knowledge for the implementation of sustainable forest management principles.

Methods for achieving long-term goals

Methods for achieving economic goals

 When purchasing new forest land areas, to assess the possibility of observing previously established forest management principles.  To plan forest management activities on time — thinning, tending of young stands, thus increasing forest productivity and value in the long run.  To identify non-forest and non-productive agricultural lands owned by the company and to plan their transformation into productive forest stands.  Forest management activities should be substantiated and planned with the goal of improving the quality and productivity of forest stands.  To use high-quality and certified planting material for reforestation.  Non-productive stands should be restored to improve their productivity.

Methods for achieving environmental goals  To carry out forest management in accordance with the predefined environmental goals.  To carry out regular monitoring of the holdings owned by the company to prevent potential environmental risks and to identify necessary management principles.  Restoration of non-productive forest stands.  To identify the areas affected by invasive species — Sosnowski hogweed, and to reduce the spread of the species by chemical and mechanical eradication.  To identify the areas where there is a risk of last year's grass fires by performing timely seasonal grass mowing.

Social methods for achieving goals  Forest management should be carried out in accordance with pre-defined social goals.  To involve local companies in forest management activities by promoting public employment.  To train employees to achieve sustainable forest management goals and preserve nature values.  To support, as far as possible, measures aimed at community educating on environmental protection issues.  Employees of the company follow the standard of good communication practice, and they are socially accessible. Contact details for possible communication to resolve a problem situation are publicly available.

a. Description of forest management system

Forestry operations such as forest planting, thinning, prime use and transportation are outsourced; to inform providers of outsourcing services on certification and other requirements, SCA internal procedures are provided for the subcontractors and instructions on site. In the harvesting of wood, the clearcutting method is mainly used for the final felling. In accordance with the nature protection requirements, the forest manager does not perform clear felling in the protection zones (contact (transition) area) around the swamps (maintains the density of growing trees on the first storey of the forest stand no less than 0.4).

 for swamp areas of 10 to 100 hectares — within 20 metres;  for swamp areas larger than 100 hectares — within 50 metres for forest site types of dry, drained, wet mineral soils and drained peat soils and within at least 100 metres for forest site types of wet peat soils. Reforestation of the stands dominated by oak, linden, maple, flattering elm, elm and hornbeam is ensured at least to the extent of the proportion of particular species prior to the commencement of the final felling. According to the national legislation (Cabinet Regulation No. 935 “Rules for Tree Cutting in the Forest”), no clear felling is performed in the forest stands where the dominant species is oak, linden, maple, flattering elm, elm or hornbeam. The following sites are not subject to forest management activities, unless they present a real risk of disease and pest infestation in the surrounding stands and/or threats to labour safety:  certain wind-throw and windfall areas where large trees have grown;  in burned stands older than 30 years, in groups or scattered — surviving trees, as well as dead trees in groups  wild apples and junipers.

a) Wet forest management The following requirements are met in management of wet forests:  In wet spruce forests (Dryopteriosocaricosa, Filipendulosa, Dryopteriosa, Myrtilloso- polytrichosa, and Caricoso-phragmitosa), efforts shall be made to preserve the undergrowth and at least partial regeneration under the crown of the parent stand;  In wet deciduous forests (Dryopteriosocaricosa, Filipendulosa, Dryopteriosa, Myrtilloso- polytrichosa, as well as Caricoso-phragmitosa where the black alder prevails), at least 30 growing trees per 1 ha shall be left and trees shall be retained in groups;  In wet deciduous and spruce forests (Dryopteriosocaricosa, Filipendulosa, Dryopteriosa, Myrtilloso-polytrichosa, as well as Caricoso-phragmitosa where the black alder prevails) regeneration of growing tree species should be encouraged appropriately.

b) Forest thinning and reforestation The main task of reforestation is to grow productive and high-quality forest that meets the requirements of forestry, either by reforestation or planting, or by promoting natural regeneration, provided that it is carried out with tree species appropriate to the given growing conditions. Only certified forest reproductive material is used for artificial forest regeneration in the SCA LM Group. Thinning of young stands is aimed at promoting the growth of tree species that are best suited for particular forest site type. It should be also noted that thinning increases future forest productivity and the value of retained trees, which depends on the genetic characteristics of the plants or seeds. Proper selection of seedlings has a significant impact on the increase of wood supplies and on the quality of the trunks. Properly cultivating young stands, the growth space for retained trees significantly increases and the length of forest growing cycle reduces. Thinning should be performed when the trees of the forest run short of resources needed for growth — water, nutrients and light. During thinning, a part of the stand is periodically cut down.

In pure stands, thinning regulates the density and improves the quality of the stand, while in mixed stands it creates a forest stand of the desired species composition and quality. The intensity of thinning depends on the composition of the forest stand, the age, the stand, the biological characteristics of the main species, the forest site type and the forestry purpose of the stand management, as well as on the ability of the forest stand to continue wood production to the extent that at the time of the final felling the wood supplies are close to the maximum possible.

Thinning of young stands (ha) LM BM VM NM IM AML Total 2019 43 43 77 163 2020 321 45 220 23 49 659 2021 68 5 97 46 4 55 274 Total 432 94 394 69 53 55 1096

c) Machinery and technology used in felling. The SCA LM Group uses, within limits, hand-held power tools to minimize the impact of felling on soil and growing trees, as well as to increase the assortment and its quality. Technical requirements for the timber delivery machinery are determined individually, taking into account the timber delivery conditions and distance, as well as methods to minimize the negative impact of harvesting machinery on the soil.

d) Labour protection All companies involved in forest operations within the SCA LM Group should have a labour protection system that complies with the Labour Protection Law and the binding requirements for safe work, which are regulated by the Cabinet Regulation No. 310 "Labour Protection Requirements in Forestry". The verification of these requirements is performed by the Group member during the daily felling operations, as well as by the Head of the Group during SCA LM's internal audit. FN Serviss provides annual labour protection and fire safety briefings in “E-Training” online system, and up-to date materials and inspection tests.

b. Substantiation of annual felling amount and species selection

The annual growth is calculated on the basis of annually allowable felling amount. Growth calculations are performed using the software IPTIM (Integrated Planning for Timberland Management). In the analysis, AAC was estimated by finding the maximum harvest level that can be sustained in a long term (100 years). Long term calculation tables available as excel files for each company. AAC indicates how much that can be harvested from a given forest area, without compromising the long-term sustainability and typically the AAC is equal to the average annual net growth rate. For the calculation of permissible felling amount the updated Forest Inventory data was used. Expected wood supplies growth for the 10- year period from 2021 to 2031 are shown in the tables below.

LM BM VM AME Growth of Growth of Growth of Growth Species Wood wood Wood wood Wood wood Wood of wood supplies supplies supplies supplies supplies supplies supplies supplies 2021, m3 2021-2031, 2021, m3 2021-2031, 2021, m3 2021- 2021, m3 2021- m3 m3 2031, m3 2031, m3 Pine 27149 45463 7596 14402 19642 40642 8090 12247 Spruce 19181 33282 11776 22973 23070 48781 8887 13551 Birch 41470 87525 29442 70817 58034 161005 43377 68506 Grey alder 10359 31981 12347 33986 12259 48893 11961 55046 Aspen 5797 15965 12692 26876 6024 20450 13808 25135 Black alder 4068 7313 4913 8546 5568 14910 5363 9926 Other 1164 2806 1114 2760 2065 4515 593 1747 Total 109189 224334 79879 180360 126660 339197 92079 186158

36 AML IM NM MM Growth of Growth of Growth of Growth of Species Wood wood Wood wood Wood wood Wood wood supplies supplies supplies supplies supplies supplies supplies supplies 2021, m3 2021- 2021, m3 2021- 2021, m3 2021- 2021, m3 2021- 2031, m3 2031, m3 2031, m3 2031, m3 Pine 47115 59593 1168 2644 2608 5513 360 1137 Spruce 13957 18077 1763 3421 6959 10160 495 797 Birch 61829 91468 8400 43605 11605 35432 1511 3185 Grey alder 7899 27815 585 12592 6013 12130 518 1147 Aspen 14849 23880 2407 9809 5554 14290 505 967 Black 5423 10521 2195 14709 2231 11101 29 29 alder Other 754 1340 153 1104 151 885 131 210 Total 151827 232693 16672 87885 35122 89511 3548 7472

Permissible felling Species amount in total, m3 Pine 181641 Spruce 151041 Birch 561543 Grey alder 223590 Aspen 137372 Black alder 77055 Other 15368 Total 1347611

37 Felling is planned in such a way that the operations (final felling and thinning) included in the regular forest management process do not exceed the average 10-year felling amount. It is permissible to increase the felling amount during the year to the extent of the wood supplies accumulation in the previous period. As for grey alder, logging amounts are not commensurate with the growth as the existing grey alder wood supplies are larger than necessary (targeted alternation of grey alder stands is carried out). Planned felling amounts do not include the damage caused by natural disasters (windfall, snowfall, etc.) and the subsequent increase in felling amounts related to their elimination. Planned felling volumes (m3) are provided in the table below:

Planned felling volumes 2021-2031, m3 Species LM BM VM AME AML IM NM MM Total Pine 36371 11522 32514 9797 47674 2115 4411 909 145312 Spruce 26625 18379 39025 10841 14461 2737 8128 638 120833 Birch 70020 56654 128804 54805 73175 34884 28345 2548 449235 Grey alder 25584 27189 39115 44037 22252 10074 9704 918 178872 Aspen 12772 21501 16360 20108 19104 7847 11432 773 109898 Black alder 5850 6837 11928 7941 8417 11768 8881 23 61644 Other 2245 2208 3612 1398 1072 883 708 168 12295 Total 179468 144288 271357 148927 186155 70308 71609 5977 1078089

b. Forest growth dynamics and monitoring

Annual monitoring is carried out to evaluate the activities undertaken, the dynamics of forest growth, changes in flora and fauna. Monitoring is carried out by the Group members in accordance with procedures established by the Head of the Group. Monitoring data are collected and summarized within the calendar year and submitted to the Head of the Group by March 15 of the following year during the internal audit of SCA LM or upon request of the Head of the Group (e.g., prior to the external audit). a) Amount of timber harvested in 2020-10.03.2021, m3

2020 2020 2021 2021 Material type Grand Total Total Total LM BM VM LM BM VM Aspen puplwood 33 0 6 39 78 111 178 366 406 Aspen sawlog 28 0 26 54 55 22 40 118 171 Birch pulpwood 363 122 572 1057 430 433 605 1468 2525 Birch sawlog 36 46 0 81 0 52 0 52 134 Black alder sawlog 0 0 8 8 0 6 53 58 67 Chips 0 0 0 0 0 0 0 0 0 Conifer fuelwood 0 0 0 0 0 0 0 0 0 Conifer pulplog 118 0 93 211 74 47 93 214 425 Conifer residuals 0 0 0 0 308 0 398 706 706 Conifer sawlog 26 0 400 426 0 26 198 225 651 Conifer sawlog special 42 0 199 241 5 32 65 103 344 Leaf trees sawlog special 215 37 233 484 19 344 231 593 1077 Mixed fuelwood 1232 10 2071 3312 395 1567 1103 3064 6377 Pine pulpwood 89 0 0 89 59 0 0 59 30 Pine sawlog 35 0 8 43 138 64 63 265 307 Residuals 1460 0 946 2406 497 0 468 965 3371 Spruce pulpwood 14 0 122 136 10 65 56 111 248 Spruce sawlog 4 0 34 38 82 241 69 392 430 Spruce sawlog special 0 0 0 0 0 10 0 10 10 Veneer log 57 31 265 354 227 158 361 747 1101 Grand Total 3750 246 4983 8980 2239 3178 3981 9398 18378

b) Forest dynamics, changes in the composition of flora and fauna.

Reforestation (ha) LM LM BM VM NM IM AME AML Species Total Total 2019 2020 Pine 6,7 6,7 0 0 0 0 0 0 0 0 Spruce 49,9 49,9 8,6 62,9 21,9 1,3 1,0 12,0 2,0 109,6 Birch 0 0 0 0 0 0 2,9 0 0 2,9 Aspen 0 0 0 0 0 0 0 0 0 0 Black alder 0 0 0 0 0 0 0,7 0 0 0,7 Grey alder 0 0 0 0 0 0 0 0 0 0 Ash 0 0 0 0 0 0 0 0 0 0 Maple 0 0 0 0 0 0 0 0 0 0 Total 56,6 56,6 8,6 62,9 21,9 1,3 4,6 12,0 2,0 113,2

Afforestation (ha) LM LM BM VM NM IM AME AML Species Total Total 2019 2020 Pine 6,7 6,7 0 0 0 0 0 0 0 0 Spruce 49,9 49,9 71,2 16 55 0 3,1 0 0 145,3 Birch 0 0 0 0 0 0 0 0 0 0,0 Aspen 0 0 0 0 0 0 0 0 0 0 Black alder 0 0 0 0 0 0 0 0 0 0,0 Grey alder 0 0 0 0 0 0 0 0 0 0 Ash 0 0 0 0 0 0 0 0 0 0 Maple 0 0 0 0 0 0 0 0 0 0 Total 56,6 56,6 71,2 16,0 55,0 0,0 3,1 0,0 0,0 145,3

Natural regeneration (ha) LM BM LM BM VM NM IM AME AML Total Species Total 2019 2020 Pine 0 0 0,0 0 0 0 0 0 0 0 0 Spruce 1,2 0 1,2 0 0 0 0 0 0 14,9 15 Birch 7,3 2,3 9,6 4 0 0 5,4 0 6 0 15 Aspen 0 2,1 2,1 0 0 0 0 0 0 0,2 0 Black alder 2,4 0 2,4 0 0 2,5 1,4 0,5 0 0 4 Grey alder 1,2 0,6 1,8 0 0 3 0 2,3 0 1,3 7 Ash 0 0,9 0,9 0 0 0 0 0 0 0 0 Maple 0 0,6 0,6 0 0 0 0 0 0 0 0 Total 11,98 6,54 18,52 4,0 0,0 5,5 6,7 2,8 5,7 16,3 41,1

40 The average carbon stock in forest stands is calculated according to the methodology of the Latvian Greenhouse Gas Inventory Survey (Carbon tons). Methodology is available on the "PEFC Latvian Council" website www.pefc.lv. Data are summarized in the tables below:

LM VM

Carbon stock CO2 capture Carbon stock CO2 capture

CO2, CO2, -1 -1 Species C, t*ha CO2 total, t Species C, t*ha CO2 total, t Total C, t Total C, t t*ha-1 per per year t*ha-1 per per year year year Aspen 32,52 18861,3 3,17 1838,21 Aspen 33,18 27873,85 2,82 2365,49 Grey 39,48 30798,62 5,37 4197,26 Grey alder 36,49 52431,03 4,45 6391,82 alder Birch 54,16 106262,84 6,42 12588,24 Birch 52,01 179370,42 6,67 23005,26 Spruce 71,97 45411,71 6,7 4201,85 Spruce 60,94 84286,11 4,46 6173,62 Black Black 49,89 5999,35 7,84 943,25 58,23 11238,56 9,88 1906,73 alder alder Pine 90,56 49084,19 10,99 5955,11 Pine 86,44 55497,57 8,37 5372,92 Other Other 68,39 3419,33 8,21 410,37 67,57 3108,11 14,05 646,38 species species TOTAL: 259837,34 30134,29 TOTAL: 413805,65 45862,22

BM AME Carbon stock CO2 capture Carbon stock CO2 capture CO2, CO2, -1 -1 Species C, t*ha CO2 total, t Species C, t*ha CO2 total, t Total C, t Total C, t t*ha-1 per per year t*ha-1 per per year year year Aspen 41,28 25509,56 6,23 3847,33 Aspen 49,59 18398,06 6,85 2540,61 Grey 46,81 21015,83 9,79 4394,78 Grey alder 45,7 55068,74 6,06 7302,64 alder Birch 59,3 89125,36 6,8 10202,56 Birch 70,84 83241,11 8,51 10002,01 Spruce 64,09 43358,97 4,33 2929,39 Spruce 65,22 20936,01 5,34 1715,22 Black Black 54,55 7581,81 8 1112,58 67,81 11799,5 7,55 1313,14 alder alder Pine 81,54 18024,16 8,58 1896,4 Pine 75,95 17320,4 7,17 1633,65 Other Other 99,94 5097,14 7,61 388,34 72,07 6702,7 2,83 54,37 species species TOTAL: 209712,83 24771,38 TOTAL: 213466,52 24561,64

AML NM

Carbon stock CO2 capture Carbon stock CO2 capture

CO2, CO2, -1 -1 Species C, t*ha CO2 total, t Species C, t*ha CO2 total, Total C, t Total C, t t*ha-1 per per year t*ha-1 per t per year year year Aspen 44,14 26089,16 4,09 2417,79 Aspen 49,02 9656,38 7,16 1410,38 Grey Grey alder 48,28 27326,51 6,47 3663,11 53,44 7641,88 10,77 1540,3 alder Birch 67,57 133783,65 6,78 13433,25 Birch 70,84 32233,79 10,99 5000,37 Spruce 70,21 24152,52 6,75 2320,62 Spruce 28,38 22620,77 1,74 1383,66 Black Black 64,13 18661,16 4,83 1404,18 64,86 9081,07 10,06 1408,73 alder alder Pine 94,2 90059,79 8,3 7925,46 Pine 69,23 9969,22 4,98 717,03 Other Other 72,07 3675,67 3,88 197,63 74,12 1334,15 6,86 123,49 species species TOTAL: 460,6 323748,46 41,1 31362,04 TOTAL: 92537,26 11583,96

IM MM Carbon stock CO2 capture Carbon stock CO2 capture

CO2, CO2, -1 -1 Species C, t*ha CO2 total, t Species C, t*ha CO2 total, Total C, t Total C, t t*ha-1 per per year t*ha-1 per t per year year year Aspen 49,88 6833,16 7,26 994,22 Aspen 44,14 1059,46 4,04 96,9 Grey alder 50,12 7518,42 10,86 1629,42 Grey alder 53,07 1698,28 4,96 158,8 Birch 68,39 49853,76 8,64 6298,12 Birch 85,18 3662,57 10,67 458,9 Spruce 18,13 19021,73 0,46 477,89 Spruce 95,31 1715,63 5,29 95,22 Black Black 67,08 10732,18 11,78 1884,41 65,23 13,05 17,15 3,43 alder alder Pine 66,99 5090,89 4,56 346,45 Pine 87,94 1319,13 10,29 154,29 Other Other 67,16 940,21 11,43 160,08 80,26 160,52 14,61 29,22 species species TOTAL: 99990,35 11790,59 TOTAL: 9628,64 996,76

The numbers of game animals per 1000 ha in the managed areas are shown in the figures below: Density of the wild boars listed in the animal accounting units in the open season of 2019/2020

Number per 1000 ha

43 Density of the elks listed in the animal accounting units in the open season of 2019/2020

44 Density of the roes listed in the animal accounting units in the open season of 2019/2020

Number per 1000 ha

Density of the deer listed in the animal accounting units in the open season of 2019/2020

Number per 1000 ha

a) Forest health condition

Forest stands damaged by forest pests (ha) SCA SC LM A BM 2018 Felling certificates taken out due to abiotic and 11.56 0 biotic conditions (Sanitary felling)

Forest stands damaged by forest pests (ha) SCA LM SCA BM VE 2019 Felling certificates taken out due to 2.68 1.50 0 abiotic and biotic conditions (Sanitary felling)

SCA LM SCA BM VE Forest damage caused by game, ha 36.48 18.73 0 Consequences of beaver activity, ha 44.44 8.45 0 Areas subject to sanitary felling due to 14.24 7.60 0 damage caused by wind and/or snow and/or ice, ha

If chemicals or repellents are used for forest protection, they will be registered and used in accordance with the guidelines "Procedures for recording plant protection products, conducting the necessary training and use of labour safety equipment for persons working with plant protection products".

b) Environmental impact:

Monitoring of high conservation value forests

High conservation value forests are managed according to the following guidelines: “Good practice guidelines for High Conservation Value (HCV) assessments”.

At least 5% of the total area is visited randomly during the annual monitoring of high conservation value forests:

 HCV 1;  HCV 2;  HCV 3;  HCV 4;  HCV 6; Monitoring will be carried out according to the High Conservation Value Forest Monitoring Form. During monitoring of the high conservation value forests, changes are identified regarding: • Parameters such as species composition, age and supplies characterizing the structure of the forest stand; • The phytosanitary condition of the forest is inspected; • The anthropogenic impact, including economic impact, if any, is assessed; • Pollution is assessed; • Impact of fires; • Invasive species; • Illegal felling or other illegal activities.

During the first certification cycle, territories will be inspected to determine their initial condition.

Illegal felling

Upon detecting illegal activities (such as illegal felling, construction and other unauthorized activities), the SCA LM Group members should promptly inform the Head of the Group, competent governmental and/or municipal authorities and record the respective event.

Violations found:

Location Amount in m3 or ha Date of detection

Vecrūpnieki, Birzgale rural territory 227.30 m3 23.03.2018. Jaunkurpnieki, Grundzāle rural 215.00 m3 31.07.2018. territory Illegally cutted area “Jauncauneni” 142 m3 30.07.2020

In order to avoid violation of the felling area boundaries, if felling results in a reduction of the basal area of the forest stand or a part thereof below the minimum basal area, except in the case of making openings of 0.2 hectares or smaller while randomly felling, the felling area should be marked in the territory in such a way that the boundaries of the felling area are clearly visible; the clear boundaries are deemed to be the following:  forest stand up to 20 years  clearing  non-forest land  delimiting boundaries  forest infrastructure objects  boundaries of the felling area marked with paint, ribbon or the line of sight.

In order to ensure uniform requirements for the identification of the land unit boundaries and establishment of boundary marks, SCA LM has developed a Procedure for mapping forest areas and marking land boundaries

c) Social impact

There is free access to berry and mushroom picking and other recreational activities that are not contrary to the existing legislation or certification requirements ensured in all forest holdings owned by the managers. Restrictions regarding access to forests can only be made when required by labour safety requirements (felling operations are carried out) or in other situations where there is a risk to society or the environment. The forest manager should consult the local community (including owners of neighbouring lands) and other stakeholders regarding forest management and the plan. The forest manager should establish and annually update a list of stakeholders, see Annex 4. Each stakeholder is invited to submit suggestions, questions and comments by emailing them to: [email protected] thereby continuously improving the forest manager's performance and ensuring social responsibility. The Group members should promptly notify the Head of the Group of any comments or complaints regarding certified forest holdings or activities in the SCA LM Group. All complaints and comments are registered in “004 Non_conformance table”.

Comments (both external and internal) are assessed and within one month of receipt, the applicant is provided with a response (action) to the comment and, if necessary, a response is included in the FMP. Responses to comments are provided by the Head of the Group and the Group member, upon their mutual agreement. The process is governed by the internal procedure P005 "Complaints procedure".

Number of people employed by the SCA LM Group members as a result of its economic activity:

LM BM VM Year Staff Outsourcing Staff Outsourcing Staff Outsourcing Male Female Male Female Male Female Male Female Male Female Male Female 2019 1 1 12 3 1 1 12 3 1 0 0 0 2020 4 1 21 17 1 1 21 17 1 0 21 17 2021 1 1 1 1 1 1 2022 2023

AME AML IM Year Staff Outsourcing Staff Outsourcing Staff Outsourcing Male Female Male Female Male Female Male Female Male Female Male Female 2020 1 1 1 2021 1 1 1 2022 2023

NM MM Year Staff Outsourcing Staff Outsourcing Male Female Male Female Male Female Male Female 2020 1 1 1 2021 1 1 1 2022 2023

Number of accidents in SCA LM Group forest management activities

LM BM VM Year Staff Outsourcing Staff Outsourcing Staff Outsourcing Severe Fatal Severe Fatal Severe Fatal Severe Fatal Severe Fatal Severe Fatal 2019 0 0 0 0 0 0 0 0 0 0 0 0 2020 0 0 0 0 0 0 0 0 0 0 0 0 2021 2022 2023

AME AML IM Year Staff Outsourcing Staff Outsourcing Staff Outsourcing Severe Fatal Severe Fatal Severe Fatal Severe Fatal Severe Fatal Severe Fatal 2020 0 0 0 0 0 0 0 0 0 0 0 0 2021 2022 2023

NM MM Year Staff Outsourcing Staff Outsourcing Severe Fatal Severe Fatal Severe Fatal Severe Fatal 2020 0 0 0 0 0 0 0 0 2021 2022 2023

Trainings

To ensure Group member awareness of the certification, etc. requirements, SCA LM follows training plan, available in SharePoint. Usually trainings are carried out after changes in standard, documentation, internal or external audits. Company supports that employees can participate in external trainings or inviting external lecturer to carry out training on site for employees. Training certificates and training materials are uploaded to SharePoint.

d) Cost, productivity and efficiency

SCA LM Group members submit data on the following:  Forest regeneration  Forest tending  Property purchase  Sale of felling areas and holdings  Sale of timber  Administration costs Assessment of costs, productivity and efficiency, data on assessment results are available in the confidential part of the FMP.

52 c. Environmental protection measures

The forest manager is aware of the fact that improper felling can result in significant environmental damage, therefore environmental impact assessments are performed at least once a year per subcontractor contract and documented in the Forestry work assessment act. If non-conformities are found during the assessment additional control is carried out and on-site training. Disturbing activity is considered to be final felling and thinning. The planned forest management activities are modified taking into account the results of the environmental impact assessment (by applying the most appropriate felling techniques, machinery, felling time, adapting skid trails, etc.). The environmental impact assessment is conducted and documented by the Group member, a summary on the findings is made by the Head of the Group. In order to ensure compliance with the environmental protection requirements, there are written guidelines in place that are binding for different types of activities (preservation of nature values in forests, protection of soil and water, etc.). Refer to Annex 2 for a list of SCA LM internal regulatory documents.

Trees and forest structures to be preserved

Principles of selecting trees and forest structures to be preserved are governed by the “Guidelines for Retaining Biomass and Trees to be Preserved in the Felling Area” and “Dabas un vides prasības mežsaimniecības darbiem” developed by SCA LM. Compliance with the requirements of the guidelines is binding on all forest managers of the SCA LM Group.

Seasonal protection measures

In order to reduce the negative impact of economic activities on the birds nesting in the forests with a high density of native breeding birds and species diversity, SCA is not conducting any activity in soil types specified by The Latvian Ornithological Society from 1st of April until 31 of May. Procedure available in SharePoint “P008 Environmental impact”.

53 From 1 April to 30 June, no thinning is carried out in young stands of pine and deciduous trees up to the age of 10 years and in young stands of spruce trees up to the age of 20 years, except for the young stands with an average height of 0.7 m for conifers and up to 1 metre for deciduous trees.

Fire safety

Forest fire safety in the Republic of Latvia is regulated by Cabinet Regulation No. 238 "Fire Safety Regulations".

Forest manager:  when reforesting conifer forest stands in Cladinoso-callunosa, Vacciniosa, Myrtillosa, and Callunosa mel., as well as afforesting forest stands and plantation forests, areas larger than 5 ha with a peat layer of no more than 0.15 m, they are subdivided by means of mineralized strips so that they should not be larger than 5 ha. Requirements of this sub-paragraph do not apply to afforested forest stands and plantation forests which have reached the age of 10 years for deciduous trees and the age of 20 years for conifers;  forest object roads and natural carriageways which may be used for the purposes of fire-fighting,  before May 1 of each year, remove litter that may interfere with the movement of fire-fighting vehicles;  by May 1 of each year, put in order roads and access roads to the fire water intakes and maintain them in such a condition to ensure access for fire-fighting vehicles.

The manager establishes mineralized strips in section passes available for machinery (except for section passes used as natural carriageways) that cross forest stand clusters of fire hazard class I, II or III larger than 50 ha, where the peat layer of the soil is no more than 0.15 m;

Division of Forest Stands and Felled Areas in Fire Hazard Classes and Requirements for Designations Colour code and colour model for designation Description of the forest stand or felled of fire hazard in the plan of fire safety No. Fire hazard class area preventive measures of the forest object red green blue 1. Class I - increased fire Coniferous stands which are less than 255 0 0 hazard 40 years old, in all types of forest growing conditions and forests of coniferous plantations bred in agricultural land. Plantations of deciduous trees bred in agricultural land which are less than 10 years old. Forest stands and felled areas in a pine forest and Callunoso-sphagnosa 2. Class II - high fire Forest stands and felled areas in a 255 0 255 hazard Myrtillosa, pine forest with spruce understorey, Callunosa mel., and Callunosa turf. mel. 3. Class III - medium fire Forest stands and felled area in 255 255 0 hazard Hylocomiosa, Myrtillosa mel., Vacciniosa mel., Myrtillosa turf. mel., and Vacciniosa turf. mel. 4. Class IV - low fire Forest stands and felled areas in 0 255 0 hazard Oxalidosa, Aegopodiosa, Vaccinioso- sphagnosa, Myrtilloso-sphagnosa, Myrtilloso-polytrichosa, Dryopteriosa, Oxalidosa turf. mel., and Mercurialiosa mel. 5. Class V - very low fire Forest stands and felled areas in 0 255 255 hazard Sphagnosa, Caricoso-phragmitosa, Dryopteriosocaricosa, and Filipendulosa

The following activities are prohibited during the period of time when the forest is vulnerable to fire:  making fires in forests and swamps (except in specially designated areas which prevent the spread of fire outside this area);  leaving fires unattended; A fire site is left when the fire is extinguished and the glowing is completely gone;  dropping burning or glowing matches, butts and other items in the forest, swamps or paths crossing them;

 driving motor vehicles through forests and swamps off-road, except when necessary for fire- fighting, emergency assistance, forest management, and maintenance of engineering networks or for the prevention of accidents;  carrying out any kind of burning (including burning of felling waste) without coordination with the relevant territorial unit of the State Forest Service.

It is prohibited in the forest object:  to burn waste;  to burn cutting remains or to make a fire: o closer than 2 m from growing trees; o in places where the soil peat layer is thicker than 0.5 m, except when burning is done after the rainy period or in winter;  during the period from 1 May to 1 September, to stack (to store) in heaps felling residues of forest stands, if the heap is closer than 50 m from 10 to 40 years old coniferous forest stands with an area of more than 1 ha, unless there is at least a 10 m wide track between the heap and the forest stand (land free of trees from one forest wall to the other (opposite) forest wall, including roadbed, drainage ditches and other infrastructure objects necessary for road operation);

 Similarly, during daily felling operations, all machinery units operating in the forest have to have fire extinguishers in working order. The forest manager controls the compliance with these rules, and the Head of the Group ensures training on the requirements.

d. Identification and protection of rare, endangered and vanishing species

Existing taxation data are used as a basis for identifying rare, endangered and vanishing species, and taxation data are updated at least every 20 years in accordance with the State's legislation, as well as upon purchasing new forest holdings, if necessary. To ensure the protection of rare, endangered and vanishing species SCA has all information available in forest management program LVM Geo. The forest manager ensures prior to the commencement of economic activities that no rare, endangered or vanishing species is located in the area. The protection of identified rare, endangered and vanishing species and habitats is carried out in accordance with the Principles of Management of High Conservation Value Forests developed in accordance with the legislation of the Republic of Latvia and Certification Standards.

57 e. Annex

1. Annex List of binding international agreements and laws and regulations 2. Annex List of binding SCA LM internal and other documents used in forest management planning 3. Annex List of stakeholders 4. Annex List of endangered species 5. Annex Guidelines, procedures and instructions

58 Annex I

State Forest Service Law, adopted on 25.11.1999.; Cabinet Regulation No. 449 "State Forest Service Regulations", adopted on 30.07.2013.; Cabinet Regulation No. 393 "Price List of Paid Services of the State Forest Service", adopted on 21.06.2016. Law on Forests, adopted on 24.02.2000.; Cabinet Regulation No. 393 "Procedures for Certification of Forest Inventory Makers and Supervision of Certified Persons", adopted on 21.06.2016.; Cabinet Regulation No. 76 "Procedures by which Immovable Property Tax is not Imposed on Land under Regenerated or Newly Established Forest Stands", adopted on 11.02.2003.; Cabinet Regulation No. 384 "Regulations on Forest Inventory and Information Circulation in the State Forest Register" adopted on 21.06.2016; Cabinet Regulation No. 647 "Forest Stand Assessment Procedure", adopted on 25.06.2009.; Cabinet Regulation No. 308 "Reforestation, Afforestation and Plantation Forest Regulations", adopted on 02.05.2012.; Cabinet Regulation No. 309 "Regulations on Tree Felling Outside the Forest", adopted on 02.05.2012.; Cabinet Regulation No. 238 "National Forest Monitoring Regulations", adopted on 03.04.2012.; Cabinet Regulation No. 228 "Procedure for Determining Damage Caused to the Forest", adopted on 29.04.2003.; Cabinet Regulation No. 118 "Procedures by which State and Local Government Institutions Engage in Restricting Forest Fires", adopted on 14.02.2006.; Cabinet Regulation No. 776 "State Forest Land Alienation Procedure", adopted on 19.09.2006.; Cabinet Regulation No. 889 "Regulations on the Criteria for Determining Compensation for Deforestation and Reimbursement Procedure", adopted on 18.12.2012.; Cabinet Regulation No. 935 "Regulations on Tree Felling in the Forest", adopted on 18.12.2012.; Cabinet Regulation No. 936 “Environmental Protection Requirements in Forest Management”, adopted on 18.12.2012.; Cabinet Regulation No. 947 "Regulations on Forest Protection Measures and Announcing of Emergency in the Forest", adopted on 18.12.2012.; Cabinet Regulation No. 159 "Regulations regarding Forest Reproductive Material", adopted on 26.03.2013.; Cabinet Regulation No. 177 "Procedures for the Establishment and Management of Genetic Resource Forest Stands", adopted on 02.04.2013.; Hunting Law, adopted on 08.07.2003.; Cabinet Regulation No. 1455 "Regulations of the Hunting Management Development Fund", adopted on 10.12.2013.; Cabinet Regulation No. 1194 "Procedure for Determining Fees for the Use of Hunting Rights in State-Owned Hunting Areas", adopted on 29.10.2013.; Cabinet Regulation No. 1482 "Regulations for Compensation for Damage Caused by Violations of Hunting Laws and Illegally Obtained Hunting Production", adopted on 17.12.2013.; Cabinet Regulation No. 1483 "Regulations for the Additional Feeding of Wild Game", adopted on 17.12.2013.; Cabinet Regulation No. 421 "Hunting Regulations", adopted on 22.07.2014.; Cabinet Regulation No. 82 "Regulations on State Fees for Forestry and Hunting Activities", adopted on 11.02.2014.; Cabinet Regulation No. 269 "Regulations on the Determination of Losses Caused by Wild Game and on Hunting Coordination Commissions", adopted on 26.05.2014.; Methodology for Assessing the Condition of Game Populations and for Determining the Allowable Hunting Rate, adopted on 20.06.2018.; Cabinet Regulation No. 567 "Regulations on Training and Examination of Hunters and Hunting Managers, as well as Issuing and Cancellation of Hunting Documents", adopted on 23.09.2014.; On Specially Protected Nature Territories, adopted on 02.03.1993.; Cabinet Regulation No. 264 "General Regulations on Protection and Use of Specially Protected Nature Territories", adopted on 16.03.2010.; Protection Zone Law, adopted on 05.02.1997.; Cabinet Regulation No. 63 "Methodology for Determining Forest Protection Zones around Cities", adopted on 04.02.2003.; Cabinet Regulation No. 306 "Regulations on the Methodology for Establishing an Operational Protection Zone around Land Reclamation Structures and Devices on Agricultural and Forest Lands", adopted on 02.05.2012.; Cabinet Regulation No. 406 "Methodology for the Determination of Surface Water Body Protection Zones", adopted on 03.06.2008.; Cabinet Regulation No. 392 "Methodology for Determining the Protection Zone (Protection Area) around Cultural Monuments", adopted on 15.07.2003.; Plant Protection Law, adopted on 17.12.1998.; Law On the Conservation of Species and Biotopes, adopted on 16.03.2000.; Cabinet Regulation No. 396 "Regulations on the List of Specially Protected Species and Restricted Species", adopted on 14.11.2000.; Cabinet Regulation No. 940 "Regulations Regarding the Establishment and Management of Micro-reserves, Their Conservation, as well as Determination of Micro-reserves and Their Buffer Zones", adopted on 18.12.2012.; State Civil Service Law, adopted on 07.09.2000.; On Inventory of Trees and Round Timber in Transactions, adopted on 16.12.2004.; Law on the Compensation for Damages Caused by State Administrations, adopted on 02.06.2005.;

59 Cabinet Regulation No. 796 "Guidelines for the Activities of Open Call for Proposals", adopted on 26.09.2006.; On Agriculture and Rural Development, adopted on 07.04.2004.; Cabinet Regulation No. 171 "On Granting, Administering and Monitoring State and European Union Support for Improving the Environment, Climate and the Rural Landscape in the 2014-2020 Planning Period", adopted on 07.04.2015; On Protection of Cultural Monuments, adopted on 12.02.1992.; Spatial Development Planning Law, adopted on 13.10.2011.; On Compensation for Restrictions on Economic Activities in Protected Territories, adopted on 04.04.2013. Cabinet Regulation No. 1051 "Forest Management Research and Monitoring Procedure"; Cabinet Regulation No. 123 "Regulations on the Establishment and Management of Parks and Forest Parks in the Forest"; Cabinet Regulation No. 98 "Regulations on Forest Management in Enclosed Forest Area Established for Captivity of Animals"; Cabinet Regulation No. 744 "Regulations on Accounting of Trees and Round Timber"; Cabinet Regulation No. 118 "Procedures for the Establishment of Agricultural Land in the Forest and the Issuing of a Permit for its Establishment" An updated list of binding regulations is available at: http://www.vmd.gov.lv/valsts-meza-dienests/statiskas-lapas/normativie-akti- ?id=807#jump

Name Effective Effective in from Latvia from Convention on the Conservation of European Wildlife and Natural Habitats, Bern, 17.12.1996. 01.05.1997. 1979 Bonn Convention On the Conservation of Migratory Species of Wild Animals, 11.03.1999. 01.07.1999. Bonn, 1979 Convention on International Trade in Endangered Species of Wild Fauna and 17.12.1996. 12.05.1997. Flora (CITES) Washington

Convention on Environmental Impact Assessment in a Transboundary Context 01.07.1998. 29.11.1998. (Espoo, 1991) Convention on the Protection of the Marine Environment of the Baltic Sea Area, 03.03.1994. 10.03.1994. Helsinki, 1974 and 1992 Convention No. 87 “On the Freedom of Associations and the Right to Join into 1948 27.01.1993. Organisations” Convention No. 151 “On Labour Relations” 1978. 27.01.1993. Convention No. 158 “On Terminating Labour Relations at the Employer’s 02.06.1982. 25.08.1995 Initiative” (25.08.1995.) Convention No. 155 “On Labour Safety, Health Protection and Work 03.06.1981. 25.08.1995 Environment” (03.06.1981.) Convention No. 81 “On Labour Inspection in the Industry and Trade” 11.07.1947. 25.08.1995 (25.08.1995.) Convention No.148 “On Work Environment” 20.06.1977. 08.04.1994. (08.03.1994.) Convention No. 154 “On Supporting Collective Negotiations” 03.06.1981. 25.08.1995 (25.08.1995.)

60 Annex II

Version Document name Date of issue number FSC & PEFC Agreement 1.0 01.10.2019. List of members 1.0 01.10.2019. Non-conformance table 1.0 19.02.2020. Complaint register 1.0 01.10.2019. Procedure for adding new site 1.0 01.10.2019. Monitoring procedure 2.0 11.03.2020. Non-conformance procedure 2.0 11.03.2020. Leaving and exclusion from the group 1.0 01.10.2019. Complaint procedure 1.0 01.10.2019. Document control procedure 1.0 01.10.2019. Guidelines for clearcut preparation 2.0 13.03.2021 Environmental impact 1.0 13.03.2021 FSC Trademark use 1.0 13.03.2021 Letter to the complainant 1.0 01.10.2019. FSC un PEFC CoC FM proceduras 2.0 11.03.2021 Dabas un vides prasības mežsaimniecības darbiem 1.0 12.12.2020

61 Annex III List of stakeholders No. Name E-mail Phone No., notes 1 SIA "L.P. JANA" [email protected] We sell felling rights 2 SIA "MERVINS" [email protected] We sell felling rights 3 SIA "GROTES AB" [email protected] We sell felling rights 4 SIA "REVOSA" [email protected] We sell felling rights 5 SIA "Gadskārta R. D." [email protected] We sell felling rights 6 SIA "BILLERUDKORSNAS LATVIA" [email protected] We sell felling rights 7 SIA "KAVITA V" [email protected] We sell felling rights 8 SIA "ARGO MEŽS" n/a We sell felling rights 9 SIA "OŠUKALNS" [email protected] We sell felling rights 10 SIA "SILPEC" [email protected] We sell felling rights 11 SIA "LASKANA-MEŽS" [email protected] We sell felling rights 12 SIA “Wood 4 You” [email protected] We sell felling rights 13 SIA "Future Forest" [email protected] Our forest manager 14 SIA "4BUSINESS" [email protected] Our accounting 15 Hunters Club Limbaži [email protected] Hunters' group 16 Association Hunters Association Ramata [email protected] Hunters' group 17 Hunters Club Brīvzemnieki [email protected] Hunters' group 18 Hunters' Association Iekari [email protected] Hunters' group 19 Anna's Hunter and Fishermen Club [email protected] Hunters' group 20 Hunters' group Sausnēja [email protected] Hunters' group 21 Association Optimists A [email protected] Hunters' group Association "Madona Hunters and [email protected] Hunters' group 22 Fishermen's Association" Association "Hunters and Fishermen's [email protected] Hunters' group 23 Club Ļaudona" 24 Hunters and Fishermen's Club Kalnāji [email protected] Hunters' group 25 State Forest Service [email protected] 67226600 26 Nature Conservation Agency [email protected] 67509544 27 Latvian State Forest Research Institute [email protected] 67901359 SILAVA 28 Latvian State Forests [email protected] 26680740 29 WWF [email protected] 67505640 30 Latvian Fund for Nature [email protected] 67830999 31 Environmental Protection Club [email protected] 67226042 32 Cultural Heritage Agency [email protected] 67229272 33 Latvian Ornithological Society [email protected] 67221518 34 Rural Support Service [email protected] 67038800 35 Land Register [email protected] 64224562 36 Madona municiplaity [email protected] 80000020 37 Koceni municipality [email protected] 28675556 38 Burtnieku municipality [email protected] 64226643 39 Smiltenes municipality dome@smiltene.lv 64707588 40 Valka municipality [email protected] 25449980

62 41 Limbazu municipality [email protected] 28398978 42 Dagda municipality [email protected] 26562946 43 Zilupe municipality [email protected] 65707311 43 Ludza municipality [email protected] 65707402 44 Ciblas municipality [email protected] 65700894 45 Riebini municipality [email protected] 65324375 46 Preili municipality [email protected] 65322766 47 Kraslava municipality [email protected] 65624383 48 Daugavpils municipality [email protected] 65404338 49 Ilukste municipality [email protected] 65447850 50 Karsava municipality [email protected] 65781390 51 Rezekne City council [email protected] 64607605 52 Cesvaine municipaliyt [email protected] 64852715 53 Gulbene municipality [email protected] 64497710 54 Madona municipality [email protected] 64860090

63 Annex IV

The database of the endangered species of Latvia can be found in the database of species included in the CITES Convention and in the Internet version of the Annual Red List of Threatened Animals and Plants compiled by the International Union for Conservation of Nature and Natural Resources (IUCN): • http://www.cites.org/eng/resources/species.html • http://www.daba.gov.lv • Cabinet Regulation No. 350 “Regulations on the List of Specially Protected Habitat Types” • Cabinet Regulation No. 940 “Regulations Regarding the Establishment and Management of Micro- reserves, Their Conservation, as well as Determination of Micro-reserves and Their Buffer Zones”

64 Annex V

Guidelines for retaining biomass and trees to be preserved in the felling site

Retaining trees to be preserved in the felling site In the felling sites, the structures characteristic of a natural forest should be preserved:

 on average, 10 growing trees per 1 ha should be maintained in the final felling;  retained trees should be preserved regardless of their condition during subsequent life cycles;  where possible, such trees should be retained in groups; Trees of the

 previous generation which are able to grow — or, if there are no such, — trees which are able to grow and which are larger than the average diameter of the dominant tree species in the area are to be deemed as trees to be preserved. It is preferable that the above-mentioned trees to be preserved meet at least one of the following criteria:

 trees from the previous life cycle;  oak, linden, pine, ash, elm, maple, hornbeam;  older trees and those with the largest dimensions with a broad, well-developed canopy;  trees with cavities;  trees with burning scars;  trees with large (D> 50 cm) bird nests and a row of trees (15-20 m) around them.

Retaining fallen and dry trees in the felling site Fallen, broken or standing dry trees in the felling sites should be preserved under the following conditions:

 trees with a diameter of more than 50 cm at a height of 1.3 m from the root or at the fracture point;  thicker trees;  if the total amount of dry trees retained in the felling area exceeds 8 trunks or parts thereof on average per ha, the remaining dry wood may be economically used;  standing dry trees should not be preserved in operational protection zones.  If standing dry trees are closer than the height of the tree to be retained from roads, railways, power lines, other overhead transmission lines, places of public interest and if it is technically possible, to preserve them as high stumps (3-5m). If this is not technically possible, they should be cut and placed parallel to the skid trail.  To limit the possible spread of root rot caused by fungi Heterobasidion annosums.l., it is recommended to use economically dry spruce wood (less than 50 cm in diameter).

65  The amount of dry wood preserved in areas of importance for nature protection can be increased.  In specially protected nature territories (nature reserves, nature parks), unless otherwise stated in the individual protection and utilization regulations, on average at least 20m3 of dry wood per ha of the felling site should be kept.

 At least 20 trunks or parts thereof per hectare of fallen, broken or standing dry trees with a diameter of more than 25 cm should be preserved in the mating-places of capercaillies.  The amount of dry wood to be preserved in areas frequently visited by the public (along roads, pedestrian, biking trails, recreation areas, etc.) can be reduced.  Dry wood should be preferably stored in one or more groups — in old (trees with signs of decomposition), small (less than 0.1 ha), windfall sites unaffected by economic activities. In burned stands that were older than 30 years at the time of burning, to preserve surviving trees in groups or scattered, as well as groups of dead trees arranged in a mosaic-like manner.

Placement of ecological values In humid micro-lowlands (terrain depressions with high humidity), the understorey, lying dead wood, dry trees and undergrowth shall be preserved and trees to be retained should be concentrated around them as far as possible.

In transition zones from the forest to an open ecosystem (grassland, pastures, arable land) in the area where the width of the forest stand is equal to half of the average height of the trees of the dominant stand:

 dry dead trees with D> 25 cm and individual specimens of undergrowth species shall be retained to the extent that this does not interfere with forestry activities;  preference shall be given for concentration of the trees to be retained.

Guidelines for the Protection of Water in Forest Operations

1. After the completion of works, it is not permissible to leave watercourses or ditches blocked by felling remains or grooves caused by machinery; 2. Artificial run-offs (formed due to grooves) flowing into natural watercourses, water bodies, ditches or creating flooded areas shall not be allowed; 3. The entry of muddy water pushed along the skid trails into ditches, rivers or other water bodies should be prevented; 4. If muddy water containing humus is pushed along the grooves of the skid trails by the machinery, proceed as follows:  if there is a lot of water pushed by the machinery, make a thick several metre long branch layer in individual places to reduce the flow of water on the skid trail. Such branch layers form barriers that reduce the flow of pushed water;  before crossing watercourses, ditches or other water bodies make a branch layer on the skid trail. The branch layer should be long enough to completely prevent muddy water from flowing into watercourses, ditches or other bodies of water. 5. If skid trails cross ditches or watercourses and the watercourse is not large, timber and felling remains shall be laid therein. 6. To prevent deformation of the edges of the ditch or watercourse, timber and felling remains are placed 3-4 m beyond both edges of the ditch or watercourse. 7. If the ditch or watercourse has a large water flow, temporary crossings (bridges) shall be made:  base beams are formed by throwing the thickest timber across the ditch or watercourse on which the thinnest timber and felling remains are laid;  using special plastic pipes that are laid in a ditch or watercourse and covered with felling remains. 8. After completion of the works, timber and felling remains are removed from ditches and watercourses and a normal water flow is restored.

9. If felling is followed by soil preparation and soil preparation machinery requires a bridge to cross ditches or watercourses, the following should be done after the completion of felling operations:  temporary bridges made of timber shall be preserved;  if a crossing was made by laying timber in the ditch, and future contractors have the technical abilities to make the crossing, the timber should be taken out and placed on the edge of the ditch;  such crossings shall be kept only with the permission of the official of the company who assigned the work task.

Forest management guidelines

In the harvesting of wood, the clear felling method is mainly used for the final felling. In accordance with the nature protection requirements, the forest manager does not perform clear felling in the protection zones (contact (transition) area) around the swamps (maintains the density of growing trees on the first storey of the forest stand no less than 0.4).

Reforestation of the stands dominated by oak, linden, maple, flattering elm, elm and hornbeam is ensured at least to the extent of the proportion of particular species prior to the commencement of the final felling. According to the national legislation (Cabinet Regulation No. 935 “Rules for Tree Cutting in the Forest”), no clear felling is performed in the forest stands where the dominant species is oak, linden, maple, flattering elm, elm or hornbeam.

The following sites are not subject to forest management activities, unless they present a real risk of disease and pest infestation in the surrounding stands and/or threats to labour safety:

 certain wind-throw and windfall areas where large trees have grown;  in burned stands older than 30 years, in groups or scattered — surviving trees, as well as dead trees in groups  wild apples and junipers.

a) Wet forest management The following requirements are met in management of wet forests:

 In wet spruce forests (Dryopteriosocaricosa, Filipendulosa, Dryopteriosa, Myrtilloso-polytrichosa and Caricoso- phragmitosa), efforts shall be made to preserve the undergrowth and at least partial regeneration under the crowns of the parent stand shall be facilitated;  In wet deciduous forests (Dryopteriosocaricosa, Filipendulosa, Dryopteriosa, Myrtilloso-polytrichosa, as well as Caricoso-phragmitosa where the black alder prevails), at least 30 growing trees per 1 ha shall be retained, the trees shall be retained in groups;  In wet deciduous and spruce forests (Dryopteriosocaricosa, Filipendulosa, Dryopteriosa, Myrtilloso-polytrichosa, as well as Caricoso-phragmitosa where the black alder prevails) regeneration of growing tree species should be encouraged appropriately.

68 b) Forest thinning and reforestation

The main task of reforestation is to grow productive and high-quality forest that meets the requirements of forestry, either by reforestation or planting, or by promoting natural regeneration, provided that it is carried out with tree species appropriate to the given growing conditions. Only certified forest reproductive material is used for artificial forest regeneration in the SCA LM Group.

Thinning of young stands is aimed at promoting the growth of tree species that are best suited for the particular forest site type. It should also be noted that thinning increases future forest productivity and the value of retained trees, which depends on the genetic characteristics of the plants or seeds. Proper selection of seedlings has a significant impact on the increase of wood supplies and on the quality of the trunks. Properly cultivated young stands leave significantly increased growth space for retained trees thereby reducing the length of forest growing cycle.

Thinning should be performed when the trees of the forest run short of resources needed for growth — water, nutrients and light. During thinning, a part of the stand is periodically cut down.

In pure stands, thinning regulates the density and improves the quality of the stand, while in mixed stands it creates a forest stand of the desired species composition and quality.

The intensity of thinning depends on the composition of the forest stand, the age, the stand, the biological characteristics of the main species, the forest site type and the forestry purpose of the stand management, as well as on the ability of the forest stand to continue wood production to the extent that at the time of the final felling the wood supplies are close to the maximum possible.

a) Machinery and technology used in felling.

The SCA LM Group uses, within limits, hand-held power tools to minimize the impact of felling on soil and growing trees, as well as to increase the assortment and its quality. The technical requirements for the timber delivery technique are determined individually, taking into account the timber delivery conditions and distance, as well as methods to minimize the negative impact of harvesting techniques on the soil.

b) Labour protection

All companies involved in forest operations within the SCA LM Group shall have a labour protection system in place that is in compliance with the Labour Protection Law and shall comply with the binding requirements for safe work, which are regulated by Cabinet Regulation No. 310 "Labour Protection Requirements in Forestry"

69 Guidelines for the construction, maintenance and closure of forest roads

1. Forest infrastructure objects (hereinafter referred to as the FIO) shall be used in accordance with their intended functions. 2. Forest roads (hereinafter referred to as the FR) shall be operated taking into account the assumed maximum load on the vehicle axle calculated during the designing stage — 10 t, as well as the characteristics of the vehicle load, technical condition of the road and meteorological conditions. 3. The maximum permitted gross vehicle weight shall be 52 tonnes unless otherwise specified for a given road section. 4. For trucks, the maximum speed on forest roads shall be 30 km/h. When driving, road parameters, visibility, road conditions, vehicle load characteristics, timber-yard location and weather conditions shall be taken into account. 5. As for cars, road parameters, visibility, road condition, timber-yard location and weather conditions shall be taken into account when driving on forest roads and choosing speed. 6. Timber transportation intensity shall be selected according to the load capacity of the road at a given moment. 7. It is forbidden on the forest roads: 7.1. to violate the Road Traffic Regulations; 7.2. to perform actions that result in significant damage or destruction of the FR elements: 7.2.1. road surfacing, 7.2.2. constructional layers of the road, 7.2.3. bridges and culverts, 7.2.4. other equipment; 7.3. to perform activities that result in damage or destruction of the FR equipment: 7.3.1. road signs, 7.3.2. barriers, 7.3.3. gates, 7.3.4. other equipment; 7.4. to obstruct the carriageway, roadsides and road engineering structures;

7.5. to use the roadside for driving and vehicle parking; 8. If, as a result of economic activity, the forest infrastructure object has been littered, polluted or damaged, littering or pollution shall be eliminated, and the damage caused shall be prevented. 9. If the vehicle has started loading timber, thus obstructing the road, other vehicles shall wait for the loading work to be completed. 10. Upon detecting conditions in the forest infrastructure objects that threaten road safety or the functioning of the FR, it shall be promptly reported to the forest infrastructure object manager, and the place endangering the forest infrastructure users shall be signed by any appropriate means (such as highly visible and contrasting cloth, paper or reflector). 11. If signing of the dangerous place does not ensure a safe operation of the FR or the traffic safety, the forest manager shall, depending on the ownership of the FR, close or propose the closure of the FR until the hazard is eliminated. 12. An environmental impact assessment shall be always carried out prior to the commencement of FR construction or reconstruction activities.

70 Procedure for mapping forest areas and marking land boundaries

General issues

A procedure is developed to ensure unified land unit boundary identification and boundary mark establishment requirements in the real estate of the members of the SCA LM Forest Management Group.

Laws and regulations applied:

1. National Real Estate Cadastre Law. Adopted on 1 December 2005. 2. Cabinet Regulation No.1019 "Regulations on Cadastral Survey of Land". Adopted on 27 December 2011. 3. Civil Law. Part Three. Property Rights. Adopted on 28 January 1937. Establishment of boundaries. 1. Boundary establishment works (boundary marks, lines of sight, boundary markings, placement of identification plates) shall be done within 3 (three) months from the moment of signing the boundary determination deed, however, they shall always be established by the time the draft land boundary plan is submitted. A time period during which the establishment of the boundary marks is not possible due to adverse weather conditions shall not be included in the time limit.

Area mapping

1. Upon surveying a land unit, the land boundary plan, contingency plan and encumbrance plan shall be drawn up as separate documents for each unit of land. 2. The plan is a mutually executed document consisting of a title page in A4 format and a graphic representation in A4 or A3 format. The plan shall be prepared on the basis of technical data obtained from the land cadastral survey. If the graphic part of the plan cannot be drawn on a single A3-sized page, the graph shall be spread over several pages, indicating the layout of the pages.

71 Boundary marking

1. Boundary markings can be placed on growing trees along the edge of the boundary strip or in the line of sight on the owner's side of land. 2. The marking shall be placed in such a way that the next marked tree is clearly visible from the previous marked tree. The distance between two adjacent marked trees shall not exceed 50 m. Establishment of boundary marks

1. Boundary mark sites are marked and boundary lines of sight are established on site by a surveyor. The time of the boundary mark establishment is specified in the boundary establishment deed. 2. Upon joining the allocated boundaries, the common boundary points shall be surveyed. 3. Pipes or rods shall be dug into a depth of 0.5m, leaving 0.3m of the pipe (rod) above the ground to form a landmark, but where its preservation is endangered, a pipe (rod) shall be buried 0.3m below the land surface without providing a landmark. 4. When establishing boundary marks, a circular ditch, with an inner edge 110 cm from the centre of the boundary mark, shall be dug around the cross stones, reinforced concrete posts, masonry and wooden posts, metal pipes and rods. Depth of the ditch — 30 cm, width at the ground level — 50 cm, width of the bottom of the ditch — 20 cm. A 30 cm high soil embankment shall be made around the boundary mark. If a land mark is to be formed in towns and villages, it shall be made with a diameter of 1 m. 5. The boundaries of the land unit shall be fixed on site by permanent boundary marks, which shall be made in the following places:  Boundary turning points;  where boundaries join or branch off watercourses and (or) bodies of water;  at the turning points of the right of way of the state roads and rural territory roads at road sections through the village, summer cottage and horticultural building territories and in places where the right of way extends or narrows;  at the turning points of the railway right of way. 6. If a State's geodetic sign is established at the place where the boundary mark is established, the State's geodetic mark shall be the boundary mark in the area. 7. If the property boundary passes along the section lane, hidden boundary marks shall be placed in the section lane and, in addition to it, a fixed border point shall be established at the edge of the section lane, where another property begins. 8. Boundary marks shall not be established or fixed at turning points:  along the banks of water courses and (or) bodies of water;  in the watercourses and (or) bodies of water;  beneath structures, at the corners of structures, in swamps and other inaccessible areas. 9. The following shall be used as boundary marks:  cross stones — boulders weighing at least 60 kg with a 6 cm long and 0.5 cm deep cross-shaped carving in the centre of the boundary-mark;  reinforced concrete poles — 130 cm high poles with a minimum cross-section of 10 x 10 cm and a cross-bar placed

72 in a loop at the bottom of the post;  wooden poles — 130 cm high poles with a diameter of 15-20 cm and a cross-bar attached to the lower end;

 metal pipes, rods — 80 cm high pipes, rods with a diameter of 2 to 3 cm and a cross-bar attached to the lower end;  8–50 cm long metal rods and pins in hard covering (for example, tiles, asphalt concrete, cement concrete);  50 to 80 cm long metal pipes, rods and pins in the ground;  fence poles — regardless of their size;  corners of the structure;  0.8 m long plastic pipes with a cross-section diameter of 3 cm to 5 cm and a cross-section attached at the bottom.

73 Guidelines for minimizing soil damage

The following requirements shall be observed to minimize soil damage and water pollution:

 A technological map of the felling area shall identify major and secondary roads, skid trails, timber-yards, large drainage systems, bridges at water crossing points, buffer zones and protected territories.  Contractors shall take steps to minimize the formation of grooves in skid trails inside and outside felling sites during work;  Attention shall be paid to the delivery circumstances. Planning of felling time shall take into account the bearing capacity of the soil in each forest site type;  Machinery that is not intended by the manufacturer to be used for thinning operations may not be used in the thinning felling.  Before felling, the territory of the felling area shall be inspected and local wet depressions shall be marked in the felling area outline. Planning of skid trails and technological corridors shall be performed in such a way as to avoid, if possible, the crossing of wet depressions.

 Skid trails from the felling area to the timber-yard shall be as short as possible and planned in drier areas. This will reduce the cost of work and the area of potential soil damage.

 Construction of skid trails and movement with machinery shall be prohibited in ravines, sinkholes, landslides, rocky outcrops and within 10 metres of their upper edge. Requirements apply to ravines which are at least 15 metres deep, 10 metres wide and with a slope of at least 30 degrees;  Movement with the machinery shall be allowed only along the planned timber skid trails or technological corridors. To move beyond the skid trails shall be permitted only in exceptional cases:  Crossing of the watercourses shall be avoided wherever possible. Where unavoidable, the watercourse shall be crossed in one place or in as few places as possible.

 If there are slopes in the felling area which, when crossed by the machinery, are destroyed and significant soil damage is caused, the direction of movement of the machinery shall be chosen going down the slope. This direction of movement of the machinery shall be chosen if there is a possibility of circumnavigating the slope using a lower-grade place.

 Avoid planning skid trails in the areas where grooves can create an artificial run-off. Avoid planning timber-yards in the areas with low soil bearing capacity when the soil is not frozen or is dry.

74 Requirements for reducing environmental pollution

Introduction

This document describes the requirements and measures to be taken to prevent or limit environmental pollution upon performing forest operations.

The purpose of these requirements is as follows:

o To prevent or reduce pollution that may cause harm to human health, property and the environment; o To identify the main precautions to be taken to ensure the reduction of pollution; o To provide SCA LM employees and contractors with basic knowledge of environmental pollution response.

1. Requirements 1.1. In order to reduce or eliminate environmental pollution in forest operations, the following requirements are set for: 1.1.1. machinery and power tools; 1.1.2. storage and transportation of petroleum products, 1.1.3. use of petroleum product absorbent materials; 1.1.4. waste management.

1.2. General requirements for reducing environmental pollution are set out in the "Environmental Protection Law" and the Law "On Pollution", and are binding on all forest operators.

2. Requirements for machinery and power tools 2.1. During forest operations, soil and water pollution is not allowed. Machinery and power tools involved in forestry operations shall be free of oil, fuel and technical fluid leakage. If leaks are found, the work shall be stopped immediately and repairs carried out.

3. Requirements for storage and transportation of petroleum products 3.1. Fuelling of the machinery used in forestry operations shall comply with the requirements of the "European Agreement concerning the International Carriage of Dangerous Goods by Road" (ADR) 3.2. Personnel involved in dangerous goods transportation shall be trained, and training shall be documented in accordance with sections 1.3. and 1.3.3. of Volume I of the ADR Agreement. 3.3. All fuel tanks stored in the forest operation sites or used for fuel supply shall be labelled in accordance with the requirements set out in Volume II of the ADR Agreement. 3.4. Fuel tanks shall have hazard pictograms and indications of the substance to be transported. The dimensions of the edges of the hazard pictograms shall be 10 cm. For diesel, the hazard pictograms are red diamonds with a black or white flame and the number "3" at the bottom corner, and a fish and wood symbol warning of the environmentally hazardous substance. When transporting diesel, its code — UN1202 — shall be displayed on the tank. For tanks larger than 450 l, the hazard pictograms and the fuel code shall be affixed to the two opposite sides of the tank. 3.5. Only metal containers (IBC) of medium carrying capacity that meet the requirements of the ADR agreement shall be allowed to be stored on the ground at the site of forest operations. 3.6. Any type of fuel tank complying with the ADR Agreement shall be permitted for fuel supply. 3.7. All fuel tanks shall have the ADR designation codes. The fuel tank code shall contain the symbol and the capital letters Y, Z or X indicating the following packaging groups: 3.7.1. Y — packaging groups II and III (petrol, diesel); 3.7.2. Z — packaging group III only (diesel); 3.7.3. X — packaging groups I, II and III. 3.8. Where specialized road transport is used to supply fuel to the forest operation site, it shall comply with the requirements of the ADR Agreement.

75 3.9. Upon transporting more than 60 l of fuel by road, the following has to be in place: cargo accompanying documents, a bill of lading in accordance with the ADR Agreement, and other documents in accordance with applicable laws and regulations. 3.10. Upon preferential ADR terms, i.e., without a special driving licence for the transportation of dangerous goods, diesel may be transported up to 1000 litres per transport unit. 3.11. When transporting fuel tanks or cans, they shall be fixed in accordance with Cabinet Regulation No.166 "Regulations on the Placement and Fixing of Piece Goods in Road Transport". 3.12. Where cans or power tools are transported in the passenger compartment, they shall be fixed to prevent unrestricted movement by means of lashings, mesh, covers or other means of fixing. 3.13. Fuel and oil cans used for refuelling power tools shall be fitted with a fuel and oil spill protection nozzle. 3.14. Technical fluids and petroleum products shall be stored in appropriate and tightly sealed packages.

4. Requirements for the use of petroleum product absorbent materials 4.1. Pollution of soil and water by petroleum products or technical fluids during refuelling and operation of forest machinery and power tools shall be prevented or minimized. 4.2. Significant soil pollution is considered to be the case when the discharge of petroleum products or technical fluids into the soil exceeds 100 cm2 on the soil surface. 4.3. Significant pollution of water is considered to be the presence of a coloured film characteristic of petroleum products on the surface of water. 4.4. All units of machinery involved in forest operations shall have an environmental protection (petroleum product absorbent) kit comprising the following: 4.4.1. petroleum product absorbent mats; 4.4.2. petroleum product absorbent boom; 4.4.3. pair of gloves; 4.4.4. waste bags. 4.5. To prevent or reduce environmental pollution, use the petroleum product absorbent materials of the environmental protection kit. 4.6. Requirements for the use of petroleum product absorbent mats: 4.6.1. Absorbent mats are to be used in all places where petroleum products or technical liquids are leaking: 4.6.1.1. refuelling the fuel tank, fuel or oil tank of machinery in the event of a leakage; 4.6.1.2. repairing machinery or power tools, where petroleum products or technical fluids are leaking; 4.6.1.3. under the packaging of technical liquids and petroleum products in the case of leakage. 4.7. Requirements for the use of petroleum product absorbent booms: 4.7.1. When crossing watercourses or performing work in the immediate vicinity of water, machinery units shall be regularly checked for petroleum product or technical fluid leakage. 4.7.2. The petroleum product absorbent boom is used in all cases where the coloured film characteristic of petroleum products can be observed on water. 4.7.3. In running water, the petroleum product absorbent boom shall be placed downstream and as close as possible to the point of pollution. The boom(s) shall be placed in such a way to prevent the further spreading of pollution.

5. Requirements for waste management 5.1. Upon carrying out forestry operations, soil and water pollution with municipal or hazardous waste (waste containing petroleum products, hydraulic pipes, oil filters, packaging of technical fluids and lubricants, batteries, etc.) shall not be allowed. 5.2. Municipal waste generated during forest operations shall be stored in waste bags and transported to the appropriate location after completion of the work. 5.3. Hazardous waste shall be stored in waste bags and delivered to hazardous waste collection sites after completion of the work. 5.4. Petroleum product absorbent materials used up shall be stored in waste bags and returned to the vendor on completion of the work under the terms of the contract of sale or disposed of at hazardous waste disposal sites. 5.5 Leaving, burying or incinerating any type of waste in the forest or at any other forest operation site is not allowed!

76 6. Action to reduce environmental pollution 6.1. If soil, water pollution or waste is detected prior to the execution of the work, this fact shall be reported immediately to the responsible SCA LM official who has assigned the task. 6.2. If soil or water is polluted during the execution of the work, emergency1 measures shall be organized and carried out to prevent pollution spreading or entering the groundwater. 6.3. If petroleum products or technical fluids are leaking and soil damage occurs, remediation2 of polluted soil shall be carried out. The topsoil of damaged soil shall be raked off, placed in waste bags and taken to hazardous waste disposal sites. 6.4. In the event of leakage of petroleum products or technical fluids into water courses or water bodies, absorbent booms shall be used immediately. 6.5. Hazardous3 environmental pollution shall be reported immediately to the responsible SCA LM official who has assigned the task. 6.6. Actions to be taken by the SCA LM employees: 6.7. If the environment is polluted by hazardous pollution, the responsible SCA LM person who supervises the work shall proceed as follows: 6.8. immediately organize and carry out emergency measures; 6.9. immediately inform the Regional Environmental Board of the State Environmental Service in writing regarding the environmental damage and provide a full description of the situation; 6.10. organize and carry out remedial measures within its competence. 6.11. The responsible SCA LM employee and the forest operator, in the course of self-monitoring, shall record the cases of environmental pollution and violations of the requirements in the work performance inspection report.

7. Compensation for environmental damage 7.1. In the case of damage to the environment caused by forest operations, the responsible SCA LM official shall assess the liability in accordance with the laws and regulations and the terms and conditions of the contractor's agreement. 7.2. The forest operator, whose professional activities caused environmental damage or direct threat of damage, shall bear the costs of preventive, emergency and remedial measures. 8. Contacts of the Regional Environmental Boards of the State Environmental Service 8.1. Daugavpils Regional Environmental Board: implements the State environmental protection policy in the cities of Daugavpils and Jēkabpils and 14 municipalities of Līvāni, Preiļi, Ilūkste, Vārkava, Daugavpils, Jēkabpils, Sala, Krustpils, Aknīste, Viesīte, Dagda, Krāslava, Aglona and Riebiņi. 8.1.1. Tel.: 65423219

8.1.2. E-mail: [email protected]

8.2. Jelgava Regional Environmental Board: implements the State environmental protection policy in the municipalities of Jelgava, Ozolnieki, Bauska, Vecumnieki, Iecava, Rundāle, Dobele, Auce and Tērvete. 8.1.2. Tel.: 63023228

8.2.2. E-mail: [email protected]

8.3. Maritime and Internal Waters Authority: performs its functions in the territorial sea waters of the Republic of Latvia, the continental shelf, the exclusive economic zone and port aquatorium (Latvian sea waters), as well as in the internal waters of the Republic of Latvia, international waters as defined in accordance with the regulatory enactments governing fishing in the European Union (EU) and in the waters of EU Member States and non-EU Member States. 8.1.3. Tel.: 67469664

8.3.2. E-mail: [email protected]

8.4. Lielrīga Regional Environmental Board: implements the State environmental protection policy in the cities of Riga and Jūrmala and 20 municipalities of Ādaži, Babīte, Baldone, Carnikava, Garkalne, Ikšķile, Inčukalns, Ķegums, Ķekava, Lielvārde, Mālpils, Mārupe, Ogre, Olaine, Ropaži, Salaspils, Saulkrasti, Sēja, Sigulda and Stopiņi. 8.1.4. Tel.: 67084278 8.4.2. E-mail: [email protected]

77 8.5. Liepāja Regional Environmental Board: implements the State environmental protection policy in the municipalities of Nīca, Rucava, Grobiņa, Durbe, Pāvilosta, Aizpute, Priekule, Vaiņode, Skrunda, Alsunga, Kuldīga, Saldus and Brocēni. 8.5.1. Tel.: 63424826 8.5.2. E-mail: [email protected]

8.6. Madona Regional Environmental Board: implements the State environmental protection policy in 14 municipalities of Madona, Cesvaine, Ērgļi, Lubāna, Varakļāni, Gulbene, Alūksne, Ape, Aizkraukle, Jaunjelgava, Koknese, Nereta, Skrīveri and Pļaviņas. 8.6.1. Tel.: 64807451 8.6.2. E-mail: [email protected]

8.7. Rēzekne Regional Environmental Board: implements the State environmental protection policy in the municipalities of Rēzekne, Viļāni, Balvi, Baltinava, Rugāji, Viļaka, Ludza, Cibla, Kārsava, Zilupe and in the city of Rēzekne. 8.7.1. Tel.: 64638207

8.7.2. E-mail: [email protected]

8.8. Valmiera Regional Environmental Board: implements the State environmental protection policy in the city of Valmiera and 21 municipalities of Aloja, Amata, Beverīna, Burtnieki, Cēsis, Jaunpiebalga, Krimulda, Līgatne, Limbaži, Mazsalaca, Naukšēni, Pārgauja, Priekuļi, Rauna, Rūjiena, Salacgrīva, Smiltene, Strenči, Valka, Kocēni and Vecpiebalga. 8.8.1. Tel.: 64207266 8.8.2. E-mail: [email protected]

8.9. Ventspils Regional Environmental Board: implements the State environmental protection policy in the municipalities of Ventspils, Talsi, Dundaga, Roja, Mērsrags, Tukums, Engure, Jaunpils and Kandava. 8.9.1. Tel.: 63626903

8.9.2. E-mail: [email protected]

78 Procedures for recording plant protection products, conducting necessary training and use of labour safety equipment for persons working with the plant protection products.

The procedure is established in accordance with Paragraph 5 of Section 5 and Part Two of Section 9 of the Plant Protection Law and the Cabinet Regulation No. 950 "Regulations Regarding the Use of Plant Protection Products".

I. General issues 1. The Regulations specify: the requirements for the use and storage of the plant protection products; the duties and rights of the professional plant protection product users and operators; the special measures for the protection of the aquatic environment and drinking water.

II. Storage requirements for the plant protection products 1. Plant protection products shall be stored in their original packaging, observing storage conditions specified on the labelling, as well as the requirements of Part Three of Section 9 of the Plant Protection Law and the Protection Zone Law. 2. Plant protection products shall be stored on shelves or on pallets. If the storage place is a room where a person may be for the purpose of handling plant protection products (e.g., sorting, moving), air exchange shall be provided. 3. Fuel storage facilities, living or administrative premises, animal enclosures, buildings that can be flooded and cellars, with the exception of those built above the ground, may not be used as places for the storage of the plant protection products. 4. First-class plant protection products shall be stored in a closed, ventilated room separately from other plant protection products. 5. Packaging of used plant protection products shall be kept together with the plant protection products until disposal and shall be disposed of in accordance with the procedures specified in the regulatory enactments regarding waste management. This requirement may be disregarded if the packaging of the used plant protection product is no longer regarded as hazardous waste in accordance with the laws and regulations on waste classification and the characteristics rendering the waste hazardous. 6. At the property where the plant protection products are stored or used, the persons involved in the work shall have access to:  personal protective equipment (e.g., a respirator, safety goggles, protective clothing, gloves);  absorbent materials (e.g., dry sawdust or peat);  equipment needed for emergency operations in the event of spillage of the plant protection products (e.g., a broom, a bucket, a scoop). 7. Plant protection products may only be used for the purpose and against the harmful organisms mentioned on the label, within the prescribed dose, as well as in accordance with the labelling requirements concerning dilution of plant protection products and preparation of mixtures before use, the stage of crop development, the number of treatments per season, the waiting time between the last treatment and the harvest and restrictions regarding the protection of human and animal health and the environment. 8. Each plant protection product user and operator is responsible for the protection of human and animal health and the environment. 9. As far as possible, plant protection products which are potentially less hazardous to the environment and to human and animal health, which are not classified as hazardous to the aquatic environment and which do not contain priority hazardous substances in accordance with the legislation on water management shall be selected. The service shall place and update information on plant protection products and their potential adverse effects on human health and the environment on its website.

79 10. In order to protect the aquatic environment and drinking water intake sites, plant protection products shall be used in compliance with the requirements specified in regulatory enactments regarding protection zones. 11. The user of first and second class plant protection products shall keep a register. The register shall list both purchased plant protection products (date of receipt, name of the plant protection product, size and quantity of packages) and plant protection products used up (information on the crop species or objects treated (e.g., grain elevator), the territory treated and its area, date of treatment, name and dose of the plant protection product used). The register shall be kept for at least three years.

III. Requirements for the use of the plant protection products 1. When using plant protection products, it is prohibited:  to involve persons under the age of 18, pregnant women and breastfeeding mothers;  to use damaged, unregulated equipment for the use of the plant protection products, as well as equipment that has not been inspected in accordance with the procedures specified in regulatory enactments regarding equipment for the use of the plant protection products;  to leave unattended working fluids prepared and plant protection products unused;  to pour out remnants of the working fluid intended for spraying;  for unauthorized persons to be in the place where the plant protection products are used;  to eat, drink and smoke. 2. The empty packaging of the plant protection product shall be rinsed three times with clean water, and rinsing water shall be poured into the container intended for the working fluid. The packaging of the plant protection products containing the active substances magnesium and aluminium phosphide shall be managed in accordance with the requirements of regulatory enactments regarding waste management and in accordance with the instructions on the labelling of these plant protection products. 3. After application of the plant protection product, the remnant of the working fluid shall be diluted with large amounts of water and sprayed on the treated field. At the end of the work, the tank shall be rinsed with clean water or with the detergent indicated on the label of the plant protection product used and shall be sprayed on the treated field. 4. It is prohibited to reuse packaging of the plant protection products used up. 5. When using plant protection products for spraying sowings and plantings, the following safety measures shall be observed:  Plants may be sprayed if the wind speed does not exceed four metres per second. If the sprayer is equipped with pre- installed auxiliaries (auxiliary devices) that reduce the impact of the wind on the spray, ensuring that the spray is only applied to the intended surface to be treated, the plants may be sprayed if the wind speed does not exceed eight metres per second;  while working, the operation quality of the sprayer, as well as the use of the preparation shall be monitored. In order to protect bees and other pollinators, the person, while using plant protection products, shall observe the special safety requirements specified on the labelling, if it contains:

 the indication "Toxic to bees" or description of the chemical effect R57;  standard phrase Spe8;  other indications for the protection of bees and other pollinators. 6. If a person uses a plant protection product labelled "Toxic to bees" or having a description of the chemical effect R57, he or she shall warn the legal owners of the bee colonies (or hives) within two kilometres of the treated area and whose bee colonies are registered in accordance with the procedures specified in the regulatory enactments regarding the registration of animals, herds and holdings and the marking of animals three days prior to treating sowing or planting sites. 7. First-class plant protection products may be used only by persons who have a professional plant protection product user certificate for operations with first-class plant protection products.

80 Quantitative data to be included over time in the FMP

1. Areas of the forest stands where activities are carried out to protect against forest pests (e.g., European spruce bark beetle, European pine sawfly, large pine weevil, etc.) (ha), in the last 5 years. 2. Areas of the forest stands where activities are carried out to protect against fungal diseases (root decay, etc.) (ha) in the last 5 years. 3. Damage caused to the forest by fungal diseases (m3 and/or ha) in the last 5 years. 4. Forest stands where activities are carried out to protect against forest animals (ha) in the last 5 years. 5. Areas of the forest stands affected by fire (ha) in the last 5 years. 6. Other damage (m3 and/or ha) in the last 5 years. 7. Changes in the forest stands and/or felling areas where plant protection products and/or fertilizers (ha) have been applied. 8. Name of the plant protection products and/or fertilizers used, name of the active substance and quantity used (kg, l), modification. 9. Changes to wood supplies over the last ten years and planned changes over the period of the next ten years (m3/ha). 10. Annual amounts of timber harvested by species: Final felling (m3, ha), changes; Thinning (m3, ha), changes; Sanitary and other felling (m3, ha), in the last 5 years. 11. Brought felling remnants — small merchantable wood, branches, stumps (m3 and/or ha and other units), changes. 12. Total number of improved and maintained recreation areas and hiking trails/footpaths, changes. 13. Recreation areas intended for attracting a large number of people (over 30) at a time, changes. Number (quantity) of forest management accidents in the last 5 years.