Woodbois
Annual Report 2022

Plain-text annual report

Accelerating the transition to a net-zero economy 2 0 2 2 COVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS C O N T E N T 4 6 9 21 MESSAGE FROM THE CEO ABOUT THIS REPORT Integrated Reporting ABOUT WOODBOIS Company overview Our commitment Materiality Analysis OUR BUSINESS MODEL Vertically integrated value chain Forestry in the Congo Basin Forestry is a crucial resource for Africa Using forests to create a green economy Carbon insetting and offsetting Woodbois’ impact on achieving the UN SDGs Risks and opportunities Creating value Strategic priorities 33 THE CAPITALS Financial capital Human capital Human rights, diversity, inclusion and equal opportunities Employee wages in Gabon and Mozambique Equal opportunities Health and safety Grievances Whistleblowing procedure 3 3 WOODBOIS LTD | Integrated Report 2022 Manufacturing capital Assets overview Operations in Gabon Trading Intellectual capital Code of Conduct Forest management in Gabon and Mozambique Relational and social capital Responsible trading & sourcing Due diligence process Traceability and transparency The Open Timber Portal Engaging with local communities Global Event Participation Natural capital Transparency Water and wastewater management Waste management Use of chemicals Minimising the impact of logging roads Partnership with World Forest ID Commitment to sustainable harvesting FSC Certification Reforestation and carbon credit division Our reforestation efforts in Mozambique 69 APPENDIX & REFERENCES WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCES COVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS 01 M E S S A G E F R O M T H E C E O 4 4 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS Following a year of growth and progress across the an area of up to 50,000 hectares, which is roughly the size of Group’s operations, we are delighted to present Woodbois’ the New Forest in the UK. 2022 integrated report. As we reflect on the past year, it's remarkable to see the transformational journey that we have Our assisted forest development is designed to achieve been on. an essential balance between the benefits for nature, local communities, Gabon, and Woodbois itself. This project Our staff felt justifiably proud of what they delivered in 2022 allows us to even further promote the delicate balance and are prepared for the challenges and optimistic for the between sustainability and profitability, by supporting the outcomes that await us in the year ahead. The plans to critical world resource of the Congo Basin rainforest. We've continue the operational and financial growth have had to been operating in Gabon for more than two decades and be modified in response to unexpected challenges to our we know the country well. Gabon’s leadership on climate working capital but once rectified, we will look to resume our action through forest preservation and its position as one growth trajectory. The headwinds that we have encountered of the most carbon positive countries in the world makes so far in 2023 have reinforced our management team's it an obvious anchor country in which to continue to grow primary focus on becoming cash flow generative on a the business. Our ongoing government-level conversations consistent and sustainable basis, building upon our first two with several West African countries suggest that companies years of positive EBITDA. with successful operations in Gabon will increasingly be welcomed elsewhere as the implementation of sustainable Sustainable forest management, the production of forestry practices and payment for the protection of forests wood-based products and carbon sequestration through increasingly becomes a necessity across the Congo Basin. reforestation are core pillars of our business and we are committed to continuously improving in all areas. This We remain steadfast in our commitment to sustainability is reflected in our relationships with the communities and to making a meaningful positive impact on the and governments in our operational areas of Gabon and communities in which we operate. Looking further into Mozambique. In 2023, Woodbois received notification from 2023, we’ll be consolidating the gains we’ve made thus the Gabonese government indicating the award of a long far and advancing in our certification process. We remain term land lease for a voluntary carbon credit afforestation optimistic about the future and look forward to building on project. On completion of documentation, Woodbois will be our successes from the past year. able to launch one of the world's largest assisted indigenous new forest growth programmes. The project has the Thank you for your continued support, potential to sequester more than 30 million tonnes of CO2 in Paul Dolan 5 5 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS 02 A B O U T T H I S R E P O R T 6 6 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS INTEGRATED REPORTING This Woodbois Integrated Report aims to provide an overview of our strategy, performance and future outlook in relation to material, financial, economic, social and governance issues. The report also addresses value creation considerations for investors and all key stakeholders. - The time frame considered is the 2022 fiscal year (ending 31 December 2022) for information relating to the reporting aspects, while the prospective framework refers to the upcoming three-year period (2023-2025). - This report is based on the principles proposed by the International Integrated Reporting Framework () and published by the International Integrated Reporting Council (IIRC). As such, the report contains information that is both financial and non-financial in nature. - The designated currency for the reference of dollars ($) is USD. As of August 2022, the IFRS Foundation assumed responsibility for the Integrated Reporting Framework. The IFRS Foundation’s International Accounting Standards Board (IASB) and the International Sustainability Standards Board (ISSB) will collaborate to integrate the framework into their standard setting projects and requirements. The IFRS Foundation and Chairs of the IASB and ISSB actively encourage the continued adoption of the Integrated Reporting Framework across the industry1. The International Framework (January 2021) supersedes the International Framework (December 7 7 WOODBOIS LTD | Integrated Report 2022 VALUE CREATED, PRESERVED OR ERODED FOR THE ORGANIZATION A C TIVITIE S I R E L A T O N S H P S I I N T E R A C T I O N S VALUE CREATED, PRESERVED OR ERODED FOR OTHERS Value created, preser ved or eroded for the organisation and for others as presented by Integrated Repor ting Framework 2013). This latest version applies to reporting periods commencing 1 January 2022. This report is referring to the UN SDGs and the GRI standards. All disclosures made in this report are governed by the AIM regulation on reporting. Information on Economic Indicators provided in this report is therefore restricted and we advise investors and other stakeholders to consult the financial statements available on our website: https://www.woodbois.com/investors. We hope you find this report informative and we encourage you to share your feedback, thoughts and views with us via email at info@woodbois.com WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCES COVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS “ The estimated total value of the world's forests is as much as $150 trillion—nearly double the value of global stock markets. The ability of forests to regulate the climate through carbon storage is by far the largest component of that total value, accounting for as much as 90%. The Staggering Value of Forests—and How to Save Them, Boston Consulting Group. 8 8 WOODBOIS LTD | Integrated Report 2021 WOODBOIS LTD | Integrated Report 2022 APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS 03 A B O U T W O O D B O I S 9 9 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS COMPANY OVERVIEW Woodbois manufactures and distributes sustainable African In aiming to extend our sustainability and transparency hardwoods and hardwood products to customers around the practices across the industry, the company seeks to build world and sustainably manages 324,005 hectares of natural partnerships with third party suppliers in Africa and beyond. forest concessions in Mozambique and 156,477 hectares in Gabon. Founded in 2004, Woodbois is listed on the AIM Woodbois’ climate change carbon strategy has been section of the London Stock Exchange, one of the world’s developed with the express intention of providing long- leading growth markets for small and mid-cap companies. term profitable benefits to all stakeholders, not least local Woodbois has made significant investments in Gabon allocated land in Gabon for the initial afforestation project to ensure a reliable and superior supply of wood. This will attract dedicated project funding for climate change includes the establishment of an expansive 11-hectare mitigation in the region. communities. We are confident that our conditionally sawmill and a 3.5-hectare veneer factory in Mouila, the capital of Gabon's Ngounié region in the southern part of the country. Strategically situated within 70km of the forest concessions, which are granted for 20-year durations and enable Woodbois to efficiently process timber. Woodbois also operates a 5-hectare bushmill in Uape, located in Mozambique's Zambezia Province. Woodbois has developed a sustainability strategy to define its core priorities and commitments, which are used to align company actions with the UN Sustainable Development Goals (SDGs) and with the London Zoological Society’s Sustainability Policy Transparency Toolkit (SPOTT). SPOTT has ranked the company eighth among more than 100 global timber and pulp producers and traders with a score of 69.2% compared to a 23.6% average. 10 10 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS EMPLOYEE STATISTICS PRODUCTS PREDOMINANT SPECIES - Okoumé Sustainable hardwood products (lumber, veneer, second transformation product) manufactured at our own facilities or sourced from vetted and compliant third-party suppliers. INTERNATIONAL PRESENCE UK: Sales and management office Denmark: Documentary administration office Gabon: Natural forest concessions on 20-year renewable licences located within 70km of sawmill and veneer factory Mozambique: Natural forest concessions on 25- to 50-year renewable licences Mauritius: Office (finance function) M E N 411 (78%) T O TA L 483 W O M E N 72 (22%) 100% 100% of our suppliers to be third-party certified, or in the process of becoming certified by 2025. 480,482 ha of natural forestry concessions Mozambique - 324,005 ha Gabon - 156,477 ha 8,108 ha 52,314 ha 73,469 ha Area with actual harvesting Area dedicated to conservation 11 11 WOODBOIS LTD | Integrated Report 2022 Shared community, conservation and multi-use South Africa: Office (finance function) WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS VISION, MISSION & VALUES OUR VISION By taking meaningful action and seeking solutions internally and externally, we strive to achieve a balanced forest management system that can serve as an example of best practice. We intend to do this by thoroughly and consistently improving on and implementing the ‘Woodbois Balance Blueprint’. OUR MISSION The world is out of balance, forests are out of balance, and carbon emissions are out of balance. Our mission is to become a role model in forest management by redressing the balance. OUR VALUES › › › › R E S P O N S I B I L I T Y towards our stakeholders, people and planet PA S S I O N for positive impact I N T E G R I T Y in our choices T R A N S PA R E N C Y throughout our operations 12 12 WOODBOIS LTD | Integrated Report 2022 WHO WE ARE Our approach to sustainability lies in the constant search for balance. Starting with ourselves, we question things that are out of balance and propose solutions to help counterbalance the current state of things. This constant ‘balance-seeking’ mode is part of our culture and our vision of the world. F L O U R I S H I N G F O R E S T S Woodbois approach Sustainable approach D E VA S TAT E D F O R E S T S OUR APPROACH TO FORESTRY: THE BALANCED FOREST BLUEPRINT Woodbois sustainably manages 480,482 hectares of natural forest and wants to play a positive role with local communities and societal initiatives. Our end-to-end operations allow for control over every aspect of forest management, with the end-goal of exemplifying balanced and responsible forestry practices. Our sustainable forest management uses innovative techniques to enhance forest resilience, and can be replicated globally. This includes reducing degradation, selective harvesting, improving efficiency, increasing biodiversity, improving soil health, and replanting. The company takes a science-led and transparent approach to its logging operations and collaborates with local communities to promote sustainable practices. P E O P L E E C O N O M I C S W O O D B O I S N A T U R E I N S T I T U T I O N S WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS ORIGINS OF WOODBOIS Obtala listed on the London Stock Exchange (AIM market) Business refocused on forestry, timber transformation and timber trading Company name changed from Obtala Ltd to Woodbois Ltd Installation of the second veneer line in Gabon 2008 2016 2019 2022 2007 Obtala incorporated in the United Kingdom 2008 - 2012 2017 2021 Development of agricultural sector in Tanzania and forestry in Mozambique Acquisition of WoodBois International (WBI) Establishment of new Carbon Division, focused on implementing large scale afforestation and reforestation projects to generate carbon credits for the voluntary carbon market 2023 Woodbois awarded a conditional grant of 50,000 hectares of land in Gabon for a reforestation project 13 13 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS 2022 IN BRIEF › › › Turnover increased by 32% to $23.1m (2021: $17.5m) Increase in EBITDA to > $3.0m vs $3.5 m in FY 2021 Gross profit margin increased to 25% up from 20% in FY 2021 › › › 2022 sawn timber production of 18,652m3 (a 42% increase year-on-year) 2022 veneer production of 5,246m3 (a 38% increase year-on-year) Installation of second veneer line completed during the second half of 2022 23.1m 59,471 m3 24,349 m3 12,266 m3 Revenues USD Volume of logs harvested Volume of Woodbois' produced timber traded (logs, veneer, sawn timber) Volume of third party timber traded (logs, veneer, sawn timber) 35,245 m3 20% 72 #8 Volume of timber traded including third party and Woodbois (logs, veneer, sawn timber) % women in board positions in 2022 Clients served in 2022 38% 2 % women in senior management positions Forest management units Ranked n.8 at Spott’s ESG policy transparency assessments for timber and pulp 14 14 WOODBOIS LTD | Integrated Report 2022 East Asia 2% South /South East Asia 24% Europe 22% S A L E S B Y R E G I O N Middle East 9% North Africa 27% North & Central America 16% WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS SUBSTANTIAL SHAREHOLDERS ORGANIZATIONAL STRUCTURE The Company has been notified that the following have, at the date of this report, an interest in 3% or more of the issued Voting Ordinary share capital of the Company, as of May 2023. As at 17th March 2023 shareholders notifies as holding more than 3% of the voting share capital of Woodbois Limited were: WOODBOIS LIMITED GUERSNEY C O M PA N Y Holding Percent CARBONARBOR LIMITED UK WOODBOIS TRADING LIMITED ARGENTO LTD MAURITIUS WOODBOIS SERVICES LTD 100% 100% 100% 100% MCM Investment Partners SPC - MCM Sustainable Resource SP 133,625,000 5.38% Sparta Premier S.A. 100,000,00 4.00% Paul Dolan (CEO) 75,400,032 3.03% 22% 99% 100% 100% 78% ARGENTO MOZAMBIQUE LIMITADA WOODGROUP APS DENMARK SCI YARIM GABON WOODBOIS INTERNATIONAL APS DENMARK 15 15 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS GOVERNANCE The Board is committed to achieving the highest standards environmental management through our operations and the 7. Evaluate Board performance based on clear and relevant of corporate governance, integrity and business ethics and is responsibility for our sustainability strategy lies with our Board. objectives, seeking continuous improvement. The internal responsible for any oversight of this. The Board has adopted the evaluation of the Board, the Committees and individual Corporate Governance Code produced by the Quoted Companies 4. Embed effective risk management, considering both Directors is seen as an important next step in the development Alliance and has taken steps to apply the principles of the QCA Code opportunities and threats throughout the organisation. The of the Board. in so far as they can be applied practically and with the exception forestry and timber trading business involves a high degree of set out below, given the size of the Group and the nature of its risk. Our approach to risk management is set out in the Annual 8. Promote a corporate culture based on ethical values and a operations. We set out below how the Group complies with the QCA Report for the year ending 31 December 2022. laser-sharp focus on behaviours. The Company is committed Code.. to complying with all applicable laws and best corporate 5. Maintain the Board as a well-functioning, balanced team led by governance practices, wherever we operate. It is a core aspect 1. Establish a strategy and business model that promotes long- the non-Executive Chair. The Board is responsible for establishing of our mission to act with integrity in all of our operations. The term value for shareholders. Capital allocation must be both the strategic direction of the Group, monitoring the Group's Board expects all employees to comply with both the letter and performance and potential driven, and investment will only be trading performance and appraising, and executing development spirit of the law and governance codes. forthcoming for strategies that can demonstrate significant and acquisition opportunities. The Company holds a minimum of return to shareholders over time. nine Board meetings per year at which financial and other reports 9. Maintain governance structures and processes that are fit are considered and, where appropriate, voted on. It also holds for purpose and support good decision-making by the Board. 2. Seek to understand and meet shareholder needs and ad hoc meetings as required to deal with specific issues. During The Company is committed to high standards of corporate expectations. Shareholders play a key role in corporate 2022 the Board met 12 times. governance, with our Annual General Meeting for shareholders governance. Both Management and the Board are dedicated to implementing best practices as the Company grows. offering an opportunity to exercise their decision-making power 6. Ensure that between them, the Directors have the necessary in the Company. Our Executive Directors and our Investor up-to-date experience, skills and capabilities. The Nominations 10. Communicate how the Company is governed and is relations officer act as contact points for shareholder updates Committee oversees the requirements for and recommendations performing, by maintaining a dialogue with shareholders and and wider liaison. of any new Board appointments to ensure that it has the other relevant stakeholders. The Company encourages regular necessary mix of skills and experience to support the Company’s communications with its various stakeholder groups and aims 3. Take into account wider stakeholder and social ongoing development. Any appointments made will be on merit, to ensure that all communications concerning the Group’s responsibilities, and their implications for long-term success. against objective criteria and with due regard for the benefits activities are clear, fair and accurate. Woodbois is in a unique position to bring a positive impact of diversity on the Board, including gender. The Nominations to Africa’s economic transformation, social development and Committee is also responsible for succession planning. More details are reported in the company’s Annual Report for the year ending 31 December 2022. 16 16 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS THE BOARD AS OF MAY 2023 The Board monitors the exposure to key business risks and reviews the strategic direction of all trading subsidiaries, their annual budgets, their performance in relation to those budgets and their capital expenditure. The following Group matters are reserved for the Board: • Overall strategy • Approval of major capital expenditure projects • Approval of the annual and interim results • Annual budgets, KPIs and revisions thereto • ESG matters, including climate change initiatives and actions. 17 17 WOODBOIS LTD | Integrated Report 2022 GRAEME THOMSON Non-Executive Chair and Senior Independent Director HADI GHOSSEIN Deputy Chairman Based in Gabon, Hadi has more than 25 years of experience Graeme is a Fellow of the Institute of Chartered Accountants in managing forestry operations, including full ownership of a forestry England and Wales, and has been a public company director for business. He previously served as a diplomat, travelling extensively many decades, as a CEO, CFO/Company Secretary, and as a Non- across Africa, as well as owning various trading and real estate Executive. He has a wide variety of commercial UK and international companies. Hadi is fluent in Arabic, French, Portuguese and English experience, including of Audit and Remuneration Committees. and holds Gabonese citizenship. PAUL DOLAN CEO DAVID ROTHSCHILD Independent Non-Executive Director Paul held senior management positions at Barclays, DE Shaw and David has a wide range of experience in growing businesses and Nomura prior to joining Woodbois in 2016. Paul has consistently improving their performance. He has been active in the African built award-winning, world-class teams employing technology to resource and agricultural sectors over more than 20 years, including manage substantial pools of human and financial capital across a as co-developer of a Liberian green-field sustainable palm oil diversified group of asset classes, ranging from fixed income and operation, and as advisor on environmental and social action equity derivatives to forestry. CARNEL GEDDES CFO planning. He has also been actively involved in governmental and NGO relations and was an early steering committee member of the High Carbon Stock Approach Group, which ensures responsible development. A French speaker with over 40 years’ experience Carnel is a dual-qualified chartered accountant in the UK and South in international business – including six years at consultancy Africa, and is also a certified fraud examiner. During a 15-year career at the global audit, tax and advisory group BDO, Carnel served as Director of Forensic Services at BDO London and Partner of BDO Cape Town. She has been a Director and Board Member of one of the largest South African pomegranate farming and export companies, Pomona, since 2008. She was also the Chair of POMASA (2018 to 2023), the Pomegranate Growers Association of South Africa. McKinsey & Co – he is a dual national of the USA and South Africa, and holds both B.Com and MBA degrees. WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS OUR COMMITMENT OUR STAKEHOLDERS, PARTNERSHIPS AND COLLABORATIONS Woodbois is a socially and environmentally conscious company Tackling sustainability issues involves taking different stakeholder dedicated to generating positive impacts for communities at perspectives into account and collaborating across the value chain. both local and national levels. Recognised as a "citizen company," These perspectives include those from investors, local communities, Woodbois supports the needs of the communities where we operate, high-level representatives from international organisations, local encouraging sustainable practices and respecting the environment governments, industry experts, suppliers, customers, end-consumers and the traditions. We’re proud to foster environmental sustainability and NGOs. and contribute to the well-being of the communities we serve. Woodbois collaborates with the Open Timber Portal2 (OTP) to ensure transparency and accountability in its timber supply We value the safety and protection of all staff and parties to whom chain. The purpose of the OTP is to increase the effectiveness of we have responsibility, and believe in protecting whistleblowers. This regulations on illegal logging. OTP is an initiative launched by the promotes a culture of accountability and integrity in both private and World Resources Institute, which aims to incentivise legal timber public institutions, and encourages individuals to report corruption, production and trade by providing comprehensive country-specific misconduct, and fraud. The company does not tolerate any adverse information about forest management and harvesting. treatment of an employee who raises a concern, and a person raising Woodbois also collaborates with the Congo Basin Forest concerns is supported and protected against reprisals. Partnership3 (CBFP) and remains a keen member of the European Forest Institute4 (EFI) which conducts research and provides policy The company is committed to ethical and fair conduct, and prohibits support on forest-related issues. Woodbois is also a member of corruption, including bribery and fraud. Woodbois upholds these the trade association ATIBT5 which promotes the development commitments by implementing the best practices outlined in SPOTT of a sustainable, ethical and legal industry of tropical timber as a and adhering to definitions and guidelines published by leading natural and renewable resource, essential for the socio-economic international organisations. Woodbois conducts thorough due development of producing countries. Woodbois has been a proud member of the IWPA for a number of years. As the primary trade association for the global wood products industry in North America. The IWPA - International Wood Products Association7 unites every segment of the supply chain and represents them with a powerful voice. Additionally, the IWPA supports the legal and sustainable harvesting of wood products from around the world, thereby promoting sustainable forest management, benefiting local communities, and generating economic growth and quality jobs. The collaboration with NHLA - National Hardwood Lumber Association8 is particularly significant as the US market constitutes a vital aspect of Woodbois' trade, and maintaining strong relationships with customers is of paramount importance. Our shareholder commitment translates to direct on-the-ground action involving ongoing engagement with our employees to collect their feedback to ensure a positive, safe and healthy working environment that provides career development and growth opportunities. Post-Covid we have started to resume physical site visits to suppliers, with whom we seek to align policies and commitments towards increased transparency and sustainability. The remote communities in which we operate are dependent on forests, as we are on their local knowledge and experience. Our mutual exchange of understanding each other's needs, supporting community development and helping local causes is core to our business, which couldn’t operate without community knowledge and diligence before establishing new business relationships with any We’re delighted to work in partnership with World Forest ID6 support. suppliers, and systematically informs third parties of its policies to to build a science-based identity and origin catalogue for our maintain high standards. Gabonese concessions, which will enhance the traceability of our timber products. The World Forest ID team has sampled our forest OUR STAKEHOLDERS Sustainability is at the core of everything Woodbois does as we aim concessions in Gabon. Our utilisation of their technologies including to demonstrate leadership within the industry. We are committed to mass spectrometry, digital imaging and stable isotope ratio analysis creating net zero CO2 emissions from their combined activities and can provide irrefutable confirmation of species identity and origin of achieving a balance between the greenhouse gases we produce and our own production. the amount we can sequester from the atmosphere by 2035. Employees Shareholders Funding providers Industry experts Suppliers Customers Local communities End - consumers International organisations NGO's Local governments 18 18 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS MATERIALITY ANALYSIS In Integrated Reporting, a matter is material if it can substantially affect the organisation's ability to create value in the short, medium and long term. A materiality analysis is an exercise that identifies a company’s critical Environmental, Social and Governance (ESG) issues. It engages with internal and external stakeholders to build a full and accurate picture of all organisation issues and then uses these insights to define core business priorities, guiding both strategy and communication. The material issues for Woodbois were identified using the SASB Materiality Map9. As a result of the materiality analysis, the most important issues have been identified and are represented in the materiality matrix. 19 19 WOODBOIS LTD | Integrated Report 2022 Environment Social capital Human capital Business model and innovation Leadership and governance Legal harvesting Transparent supply chain Responsible sales & marketing Protection of land Developing local economies Health & safety at work Climate change mitigation through sustainable forest management Training & education Wages & benefits Biodiversity Economic value generated & distributed Equal rights & conflict resolution Sustainable & high quality products Efficient use of resources I S P H S N O T A L E R I Financial assistance Soil & water safety Energy usage Greenhouse gas emissions WOODBOIS Our analysis followed these steps: 1. 2. Identify and prioritise the relevant issues Identify internal and external stakeholders 3. Design a materiality survey As a result of this process, the most important issues have been identified and are represented in the Woodbois 2022 4. Launch the survey and start collecting insights materiality matrix. 5. Identify the critical issues and develop a materiality matrix 6. Define a sustainability strategy based on material priorities 7. Set long- and short-term KPIs and improvement goals WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCES COVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS 20 20 20 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS 04 O U R B U S I N E S S M O D E L 21 21 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS VERTICALLY INTEGRATED VALUE CHAIN 100% of the wood harvested is PROCESSED LOCALLY TRANSPARENCY Every single tree has an identification number and can be tracked through a GPS code T N E M E G A N A M E T S A W 100% CARING FOR PROTECTED SPECIES 0% of the trees harvested are listed as protected or endangered 22 22 WOODBOIS LTD | Integrated Report 2022 FOREST OPERATIONS • Inbound logistics • Management plan • • • Inventory Log harvesting Distribution Log tracking SAWMILL Mozambique | Gabon • • • Planks production Quality controls Packaging INTERNALLY PRODUCED PRODUCTS • • • Veneer sheets Quality controls Packaging VENEER FACTORY Gabon S T C A R T N O C S T C A R T N O C Woodbois caters to customer specifications, including the last steps of the value chain, by delivering high quality, internally and externally produced timber and timber products. EXTERNALLY PRODUCED PRODUCTS TRADING BUSINESS I N O T U B I R T S I D • • • • • • • Quality control Legal documentation Transport to the port Shipping and transport documentation Invoicing Delivery After-sales customer service WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCES COVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS VALUE CREATION As investors and consumers become increasingly For all the profit, there needs to be impact. A wide range of concerned about social impact, climate change and activities, interactions and relationships can have an impact corporate responsibility, companies are facing increasing on the interrelation between these two value streams. scrutiny and are expected to be held accountable for their business practices. When these interactions, activities, and relationships are material to a company’s ability to create value for itself, they There is a growing demand for sustainable and responsible are included in the Integrated Report. businesses, as today's consumers are increasingly seeking meaningful connections with companies that align with their The value creation framework is presented in the appendix. values and demonstrate a clear sense of purpose. They are no longer satisfied with solely purchasing products or services; they want to support businesses that prioritise sustainability, social responsibility, and ethical practices. THERE ARE A TRILLION REASONS TO PROTECT THE FORESTS Watch the video from Boston Consulting Group A Nielsen study10 showed that 73% of surveyed consumers expressed a strong desire to spend their money on products and services from companies committed to positive environmental and social impact. Woodbois' incorporation of purpose-driven initiatives into company strategies has never been more important. According to the Integrated Reporting framework, the value a company creates, preserves or erodes has an impact on two levels: on the company itself, which affects capital return for investors; and on society at large. Given this, investors evaluate companies based on these two value streams (i.e. identifying whether a company can create value for a broader range of societal stakeholders while also creating value for itself). https://www.bcg.com/publications/2020/the-staggering- value-of-forests-and-how-to-save-them “ The purpose of the corporation must be redefined as creating shared value, not just profit per se. This will drive the next wave of innovation and productivity growth in the global economy. Michael Porter 23 23 23 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS FORESTRY IN THE CONGO BASIN HOW SAVING THE FORESTS WILL SAVE HUMANITY Despite commitments made at COP26 in 2021, deforestation A growing population presents an increasingly pressing has continued at an alarming rate. According to data from need for renewable materials. Using forests sustainably the 2022 Climate Focus Forest Declaration Assessment and creating green value chains would underpin sustainable (FDA)11 deforestation has continued unsustainably. The FDA economies and help to meet this need in a way that benefits recorded that 6.8 million hectares of global forests were lost both people and planet. in the single year since COP26, leading to the emission of 3.9 billion metric tonnes of greenhouse gases12. In the Congo Restoring degraded land through afforestation and Basin, the deforestation rate increased by 5% in 2021 alone13. reforestation could cost-effectively take 0.9–1.5 GtCO2e per year out of the atmosphere between 2020 and 2050, In 2022, multiple African government initiatives were while stopping deforestation and simultaneously sustaining introduced to help reduce deforestation in the Congo Basin forests would reduce carbon emissions by the 14% needed to - which stretches over six African countries and absorbs prevent the Earth’s average temperature from increasing by more carbon than the Amazon - alongside the planting of 1.5 °C before 203016. over 100,000 new trees. But there is still much to be done to address the deforestation threats that come from climate The increase in lab-grown meat substitutes being produced change14, not to mention attempts to undo damaging actions with natural products reduces the land needed for agriculture taken by uncollaborative governments. for meat products, both enabling a significant reduction in carbon emissions and an importantly large amount of land The latest report15 from the FAO identifies three pathways becoming available for reforestation. that could support conserving forest recovery, halting deforestation, and using forests to contribute to local economies. Watch the video here https://www.youtube.com/ watch?v=DWtslaGVf_U&feature=youtu.be 24 24 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS FORESTRY IS A CRUCIAL RESOURCE FOR AFRICA Forestry is an essential resource for Africa's natural environment, biodiversity, and local communities. However, unsustainable practices, population growth, and climate • • Establishing protected areas and community forests to conserve biodiversity and wildlife habitats. Encouraging reforestation and afforestation initiatives change pose significant challenges and threats. Over the to increase forest-cover and enhance carbon past two decades, Africa has lost more than 30 million sequestration. hectares of forest17, equivalent to the size of the United • Strengthening the legal frameworks for forest Kingdom. conservation and restoration, and enforcing forest laws One of the major drivers of deforestation in Africa is agricultural expansion18. As populations grow, there is an To enhance forest-based livelihoods and economic increasing demand for food, which has led to the conversion opportunities, it’s vital that sustainable value chains of forests into farmland, especially in West and Central for forest products (such as timber and charcoal) are and regulations. Africa. developed and promoted, and in turn enable fair prices and employment opportunities to local communities. Forests in Africa are rich in valuable timber species, which attracts illegal loggers who engage in unsustainable logging Community forestry and participatory forest management practices. Combined with the impact of climate change systems can be strengthened to enable local communities including droughts, floods and wildfires, Africa has suffered to both manage and benefit from forest resources. If Africa’s significant loss to forest-cover. Additionally, climate change forests are going to be saved, then it’s vital that investment has altered the distribution and behaviour of some forest- into research and development of these areas is increased. dwelling species, leading to changes in the structure and function of forest ecosystems. Governments need to urgently engage local communities, civil society organisations, and the private sector in forest conservation and restoration efforts. Some of the specific measures that can be taken to conserve and restore forests in Africa include: • Promoting sustainable forest management practices such as reduced impact logging, agroforestry, and forest landscape restoration. Tropical forests have the ability to absorb and retain more carbon in their trees, roots, and foliage compared to other types of forests due to their quick growth and dense structure. They are also home to a diverse range of species as they typically grow in mild climates and are often left undisturbed19. 25 25 25 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS USING FORESTS TO CREATE A GREEN ECONOMY Developing forest-based industries can create new jobs and This can be achieved through partnerships between economic opportunities while supporting sustainable forest governments, the private sector, and local communities. management practices20. These industries can include forest-based tourism, non- can promote long-term economic growth while reducing timber forest products such as honey and medicinal plants, the negative impacts of deforestation and forest and sustainable forest harvesting practices. degradation. This can involve implementing certification • Encouraging sustainable forest management practices programs such as the Forest Stewardship Council (FSC) Gabon has emerged as a leading conservation country in and promoting sustainable forest harvesting practices. Africa, at the forefront of preserving forests. The country has established a network of national parks, sources such as bioenergy can reduce reliance on fossil implemented strict regulations against illegal logging, and fuels and promote sustainable economic growth. This promoted responsible timber harvesting practices. can be achieved through the use of sustainable forest • Supporting the development of renewable energy biomass for energy production and by promoting the Gabon's focus on sustainable development and ecotourism development of renewable energy technologies. further solidifies its commitment to preserving its natural heritage and make the country a standout example for other • Encouraging the integration of forests into climate African nations and beyond in terms of forest conservation. change mitigation and adaptation strategies can provide • Investing in forest conservation and restoration can climate change. This can involve promoting sustainable provide significant environmental and economic land use practices, developing carbon markets, and significant economic benefits while addressing global IMPACT OPPORTUNITIES FOR THE FOREST SECTOR benefits, including job creation, carbon sequestration, leveraging international climate finance to support forest Illustration based on the WBCSD Forest Sector SDG Roadmap biodiversity conservation, and watershed protection. conservation and restoration efforts. 26 26 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOMMUNITIES PEOPLE PROCUREMENTCIRCULARITY WATER CLIMATEBIO-ECONOMYWORKING FORESTSCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS CARBON INSETTING AND OFFSETTING INSETTING Reducing CO2 emissions internally OFFSETTING Continually emitting CO2 Buying carbon credits Carbon offsetting and insetting are two approaches that aim to reduce greenhouse gas emissions, but they differ in their methods. Carbon offsetting involves investing in projects that reduce emissions in one location to offset emissions produced elsewhere. This can include initiatives such as renewable energy generation, reforestation, and energy efficiency projects. On the other hand, insetting involves reducing emissions within a company's own operations or supply chain by adopting sustainable practices or implementing energy-efficient measures. Both approaches have their strengths and weaknesses. Carbon offsetting can help companies take action on emissions that are difficult to reduce in their own operations and achieve emissions reductions cost-effectively, while insetting can provide companies with more direct control over emission-reductions and potentially lead to long-term cost savings. However, it can be challenging and costly for companies that have limited control over their emissions, such as those in high-emissions sectors or with complex supply chains. In summary, companies should consider both carbon offsetting and insetting when developing their climate action plans. While carbon offsetting can offer a cost-effective way to reduce emissions and support environmental and social outcomes, companies should also be cautious and ensure the credibility and transparency of offset schemes. Insetting can provide more direct control over emissions reductions, but can be challenging to implement. Illustration from Omybag21 27 27 27 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS WOODBOIS’ IMPACT ON ACHIEVING THE UN SDGS Achieving the UN Sustainable Development Goals22 (SDGs) by 2030 will require the implementation of a circular economy, better use of renewable resources, the regeneration and sustainable management of natural systems and a focus on both the wider social impact as well as the effects on more ENVIRONMENTAL PRESERVATION (SDG 13, 15) LEADERSHIP AND CULTURE (SDG 8, 10) localised communities. Managing forests sustainably not only mitigates the direct Sustainable forestry depends on the ample provision of climate impact of wood procurement, but can also facilitate training and development opportunities. This investment in Our objective is to support Africa's sustainable development additional carbon sequestration, to the benefit of the global employees helps to promote loyalty and motivation, while by aligning with the UN’s SDGs, as we embrace the community. continent's transition to more value-added operations. This involves creating secure job opportunities that encourage skill development and equal opportunities for all. SOCIAL IMPACT (SDG 8, 10) Sustainable forest management means respecting the rights of local communities, and positively contributing to their development and wellbeing. ECONOMIC GROWTH (SDG 8, 9, 12) creating a culture of ethical practice that will contribute to a wider respect – and therefore protection – of forests. GLOBAL PARTNERSHIPS AND KNOWLEDGE SHARING (SDG 17) Woodbois’ inherent relationship with the environments inextricably linked to the climate crisis (forests) means that through partnerships with government and other institutions we have a significant role to play in bolstering other industries’ sustainability initiatives. Leading the way in aligning our sustainability strategy with the SDGs is Alain Diounga, who holds a masters Suppliers, consumers and stakeholders are increasingly degree in Tropical Forestry and Biodiversity. Alain oversees demanding sustainable credentials from their business Woodbois’ sustainability practices on a day-to-day basis. Our partners. Those that choose to conduct business in a manner Reforestation and Sustainability Manager in Mozambique, that overlooks environmental factors will ultimately be at a Eng. Macedo Uachuacho has a degree in Forestry significant competitive disadvantage. The more people that Engineering alongside 12 years’ experience working with advocate for sustainable forestry, the fewer opportunities there different government entities and NGOs. will be for those engaged in unethical practices. 28 28 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS RISKS AND OPPORTUNITIES Forestry and timber trading involves a high degree of technical, political, regulatory and environmental risks, as well as financial risk. Woodbois takes a prudent approach to manage these risks in line with its corporate objectives. RISKS OPPORTUNITIES • Rise in forest maintenance and harvesting costs • Process optimisation and implementation of circular solutions to reduce cost and dependency on production • Price pressure and increased demand for low cost inputs products not necessarily sustainable • Increased fuel and transportation costs • Operational disruption due to environmental, political and social events • Making sustainability part of the company's DNA and narrative, creating an opportunity to be recognised as an ethical supplier, partner and employer • Satisfy the demand of the world’s growing population with carbon-positive, affordable and sustainable • Operational disruption due to technical production building material solutions issues or health and safety incidents • Reputational damage due to unsustainable or unethical practices related to its own activities or those of its suppliers • Competitive advantage through state of the art equipment and advanced risk management • Develop African forest conservation and reforestation projects, leveraging the company’s unique position • Degraded soil or land due to deforestation, erosion or in forestry to continue the Group’s pathway towards climate change nature based carbon solutions • • Financial risks related to market pricing, liquidity, interest rates and credit Loss of human talent to competitors 29 29 29 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCES COVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS • • • • • • • • • • • • • • • INPUT Cash generated by operations, divestments, debts and equity finance 2 sawmills, 7 kilns, 1 veneer factory, 34 suppliers, Trading network Relationship with a broad range of stakeholders: institutions, local communities, regulators, shareholders, investors and suppliers Diverse team Experienced and highly motivated leadership and local teams Property and licenced technologies Skills and experience 156,000 hectares of concessions on 20-year renewable leases in Gabon 328,000 hectares of concessions in Mozambique on 25-50 year leases Third party timber Water and energy used in production and transportation CAPITALS CREATING VALUE Trading of responsibly sourced hardwood and hardwood products Landscape afforestation Harvesting, production of hardwood and hardwood products through our vertically integrated value chain MATERIAL ISSUES • Economic value generated and distributed • Training and education • Financial assistance • Health and safety at work • Wages and benefits • Efficient use of resources • Equal rights and conflict resolution • Sustainable and high quality products • Legal harvesting • Responsible sales and marketing • Climate change • Developing local economies • Biodiversity • Protection of land (soil and water safety) • Greenhouse gas emissions • Energy usage • • • • • • • • • • • • • • • • • • • OUTCOMES Revenues Paid taxes Investment in achieving certification Investment in facilities and training Wood harvested Logs produced Logs traded SPOTT ranking Traceability project No. of employees Health and safety of employees New hirings Trainings Code of conduct Ha of protected forests Reduction in GHG emissions CO2 stored in our concessions Waste to energy Resources used to power our operations and for our trading business OUTPUT Products Hardwood and hardwood products produced and traded Areas of concessions harvested Resources used to power our operations Emissions Total CO2 emissions SDGS Financial Manufactured Relational Human Intellectual Natural 30 30 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESINTEGRITY BALANCETRANSPARENCY RESPONSIBILITY RESILIENCEBUSINESS ACTIVITIESOUR VALUESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS STRATEGIC PRIORITIES To fully realise the potential of sustainable forestry in Africa23, several factors such as Forest Sector SDG roadmap24 and the SPOTT framework. regulation, management, prioritising local production, and promoting internal trade need to be Our strategic priorities outline how Woodbois intends to manage and mitigate risks while considered. Woodbois is dedicated to running its business with as little impact as possible. maximising opportunities. We will monitor and report our impact on each capital annually Our strategy and commitment to sustainable forestry have been established by referring to the through our integrated report. 31 31 31 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS CAPITALS MATERIAL ISSUES STRATEGIC PRIORITIES SDGS - - - - - - Financial Manufacturing Relational Economic value generated and distributed. Financial assistance. 1. Maximise value of raw material input through a programme of continuous improvement of efficiency. 2. Seek scale through M&A opportunities. Economic value generated and distributed. Financial assistance. Improve efficiency to get more value from raw materials 1. 2. Minimise dependency on fossil fuels by using renewable energy and implementing circular solutions. Responsible sales and marketing. Developing local economies. 1. Invest in long-term partnerships with selected timber suppliers who like ourselves are committed to achieving third party certification. 2. Invest in services and facilities for local communities. 3. Develop strong relationships with local administration and Government. 4. Strengthen sales efforts with local clients to drive core business development. - Wages and benefits. - - Training and education. Health and safety at work. Human 1. Make the health and safety of all employees a key priority. 2. Invest in continuous professional and personal development. 3. Ensure fair compensation, diversity and inclusion, and proactively fight any kind of discrimination. 4. Further empower women in employment within local communities. Intellectual Natural - - - - - - - Equal rights and conflict resolution. Legal harvesting. 1. Leverage leadership role-modelling to live up to the value of integrity and transparency. 2. Ensure ethical conduct and anti-corruption best practices are in place. 3. Ensure labour rights are fully met. Climate change. Biodiversity. Protection of land (soil and water safety). Greenhouse gas emissions. Energy usage. 1. Protect forests from illegal harvesting. 2. Preserve animal habitats and biodiversity. 3. Employ soil and peat management best practices. 4. 5. Align forest management practices with FSC standards and achieve Integrate activities to enable transition to net zero emissions. full certification in Gabon. More information on our approach to sustainability can be found in our Sustainable Forestry Policy, available on our website. 32 32 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS 05 T H E C A P I T A L S FINANCIAL CAPITAL MANUFACTURING CAPITAL INTELLECTUAL CAPITAL SOCIAL & RELATIONSHIP CAPITAL HUMAN CAPITAL NATURAL CAPITAL 33 33 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS FINANCIAL CAPITAL MATERIAL ISSUES STRATEGIC PRIORITIES SDGS - - Economic value generated and distributed Financial assistance Improve efficiency to get more value from raw materials 1. 2. Seek scale through M&A opportunities. The success of responsible businesses is inextricably material improvements in production volumes, along with linked to economic growth, which relies on the personal increases in both sales and profit margins. and professional development of employees and providing fair wages, thereby contributing to the prosperity of local The Company improved on all measures of financial Our largest investments included the acquisition of the harvesting and production plant and machinery ($3.9 million), the final payment for the additional forest acquisition in Gabon ($0.5 million), and the settlement of the deferred consideration payment for Woodbois International Aps ($0.3 million), which was purchased in 2017. Infrastructure investments: • Concession roads communities. Furthermore, the growth of African countries performance in 2022, increasing turnover by 32% and making represents a significant opportunity for businesses across significant progress by increasing both gross profit (69%) • Staff accommodation/staff village various industries. and gross profit margin and producing a second year of positive EBITDA. Sawn timber production reached 18,732 m3 • Mouila office construction The communities we work with are often in remote areas increasing by 42% versus 2021, while veneer production grew and reliant on subsistence economies. Therefore, Woodbois' by 38% reaching 5,260 m³. presence makes a meaningful contribution to their economic growth. As we continue to develop our vertically integrated value chain, our aim is to generate more job opportunities, and increase skill-development. Ultimately, Woodbois' efforts Turnover $23.1m (+32%) Gross profit $5.9m (+69%) promote the export of locally-produced products, which boosts international exposure for these countries beyond just raw materials. Gross profit margin 25% EBITDA > $3.0m • Buses to transport staff and utility vehicles • Harvesting equipment (e.g. bulldozers) • Veneer building extension (storage) and roof coverage for the loading bay • Veneer line installation In 2022, the Group continued to demonstrate that conventional metrics of business success can be achieved in tandem with meaningful action for a sustainable future by delivering $3,907,399 invested in property, plant and equipment including $236,000 spent on management plans 34 34 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS HUMAN CAPITAL MATERIAL ISSUES STRATEGIC PRIORITIES SDGS - - - Wages and benefits. Training and education. Health and safety at work. 1. Make the health and safety of all employees a key priority. 2. 3. Ensure fair compensation, diversity and inclusion, and proactively fight any kind of Invest in continuous professional and personal development. discrimination. We recognise the value of our people. We are committed to their development, and their health and safety is our top priority. We invest in the continued professional and personal development of all of our staff, ensuring fair compensation, diversity and inclusion throughout the organisation, and we are proud to proactively fight any kind of discrimination. 467 Total number of employees Woodbois is committed to: • Respecting human rights including the rights of • Preventing employment and occupation-related indigenous and local communities discrimination based on gender • Gender equality across forestry operations • Paying at least the minimum wage • Providing essential community services and facilities • Ensuring ethical and fair conduct, and fighting corruption • Respecting worker and labour rights for both full-time and Woodbois' commitment to human rights and occupational contracted employees health and safety applies to all suppliers. 404 Men (87%) 63 Women (13%) 20% of women in board positions 38% of women in senior management positions 67 Total number of permanent employees working in the production facilities in Gabon and Mozambique 380 Total number of fixed- term and seasonal employees working in the production facilities in Gabon and Mozambique 35 35 35 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS HUMAN RIGHTS, DIVERSITY, INCLUSION AND EQUAL OPPORTUNITIES In 2022, Woodbois paid on average 27% and 34% above the local minimum wage in Gabon and Mozambique respectively. EQUAL OPPORTUNITIES Woodbois pays female employees the equivalent of 100% of a male employee’s salary in both Gabon and Mozambique. The company is committed to reducing the wider industry gender pay gap and to supporting the inclusion of women Average salary in Gabon FCFA 190,721 across all its forestry operations. Woodbois aligns to international best practices such as the Average salary in Mozambique MT 7,000 New laws were introduced in Gabon in September 2021 aiming to reduce the risk of violence against women and Fundamental ILO Core Conventions, ILO Code of Practice Minimum wage in Gabon FCFA 150,000 promote their economic inclusion. These laws were part Safety and Health in Forestry Work, the UN Declaration on the Rights of Indigenous Peoples, and the United Nations Declaration on Human Rights. We are committed to extending these international best practices to all of our sourcing and suppliers. The company regularly provides educational training to employees. EMPLOYEE WAGES IN GABON AND MOZAMBIQUE The minimum wage in Gabon is set at 150,000 FCFA. However, the CONVENTION COLLECTIVE DES INDUSTRIES DU BOIS SCIAGES ET PLACAGES DU GABON provides a basic salary grid for employees. Employee salaries are determined based on this grid, with additional bonuses which are both non-conditional and performance based. Woodbois ensures that all of its employees receive a salary at least in line with the minimum wage and in 2022, the average salary paid to local staff in Gabon was FCFA 190,721. From July 2022, Woodbois raised its monthly wage in Mozambique to 7,000 MZN which is above the legal minimum wage25. 36 36 WOODBOIS LTD | Integrated Report 2022 Minimum wage in Mozambique MT 5,200 of Gabon's 2020 strategy to promote women's rights, spearheaded by the First Lady and key female leaders including the Prime Minister, Minister of Justice, and the Minister of Social Affairs and Women's Rights. Revisions to the 1972 Civil Code allow women to be the official head of the household, own and manage property, and open a bank account independently of their husbands. The legal amendments also prohibit discrimination against women in accessing credit and remove the legal requirement for wifely obedience. Additionally, a new Labor Code was adopted in November 2021, guaranteeing equal pay for equal work and granting women access to employment in all sectors. These legal reforms are significant steps towards gender equality and women's empowerment in Gabon26. We are dedicated to promoting diversity and inclusivity throughout our organisation by offering equal opportunities in recruitment, training, career development, and promotions. We strongly believe in eliminating gender-based discrimination in employment and occupation, which is crucial for fostering sustainable and socially responsible economies.. Our operations in Mouila, Gabon are overseen by Madame Mona Bakri, and women are an integral part of the workforce WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS at both of our factories. From operating machinery and managing workers on the production line, to administrative and office work, women at the factories feel empowered and valued for their contributions. This culture of inclusivity and respect is central to Woodbois' approach, demonstrated in the way that women are treated by all peers at the factories. Importantly, pay is based solely on position, meaning that two people in the same role will earn exactly the same amount of money for the same amount of work. This policy ensures that women are not discriminated against and are fairly compensated for their hard work and dedication to the company. Overall, our factories in Mouila are places where women are respected and valued for their contributions. By empowering women and promoting inclusivity, Woodbois is creating a workplace where everyone can thrive and succeed. We are also committed to keeping employees as fully-informed as possible with regard to the Group’s performance and prospects, and seek their views, wherever possible, on matters which affect them as employees. Alain Diounga is Woodbois’ ESG manager. Audrey Nzimbani started working at Woodbois' Gabon outpost in 2018 as a Veneer Factory Masicottier (veneer sheet cutter) and is known for her versatility, thanks to her efficient responsibility for all the machines needed after the log peeling. Audrey is principally assigned to the cutting machines, and is proud of her working technical and mechanical knowledge. 37 37 37 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS HEALTH AND SAFETY Woodbois places priority on safety for its employees, contractors, and surrounding communities. The company's Quality Health Safety Environment (QHSE) actions prioritise • • Established a monthly work accidents information panel Woodbois takes the responsibility of the employer to apply to raise awareness and vigilance preventive measures for safety and health at work, as Installed new fire extinguishers and accompanying mandated by law, very seriously. The company's commitment the health and safety of workers and consist of two parts: monitoring systems activities carried out and monitoring of the implementation of the HSE action plan for certification. Since the QHSE service • Managed and verified first aid kit procedures and training • Improved safety signage and installed eye washes at began its activities in Q2 2022, Woodbois has observed a factories significant decrease in accidents. This is attributed to various safety measures, including monthly HSE courses, awareness • • Installed new waste disposal vessels at various sites Ensured identification, use, and storage of chemicals to safety is unwavering, and it will continue to implement safety measures to ensure the well-being of their employees, contractors, and surrounding communities. 800 Hours of training conducted in 2022 0 Work-related fatalities recorded 117 Reported accidents in total 88 Lost days due to workplaces injuries campaigns on all work sites, and risk assessments by workstation. The following is a list of safety measures that were implemented in 2022: • Distributed 2838 pieces of PPE • Trained members of the Occupational Health and Safety Committee (CSST) • • • Installed 22 safety notices at the sawmill and factory, including speed limit regulations and prohibition of alcohol and smoking Installed 156 road signs at the forest site to prevent traffic accidents Introduced 44 new procedures and validated a new final environmental policy • Conducted risk assessments by workstation • Recruited a QHSE team leader • Defined appropriate equipment for each activity station • Constituted the Health and Safety Committee at Work (CSST) • Implemented procedures for management and distribution of PPE, including for visitors and auditors 38 38 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS GRIEVANCES The process comprises: Woodbois has an established company-wide grievance framework that is accessible to both internal and external stakeholders. It is our policy to ensure that all employees have access to procedures to help deal with any workplace grievances fairly and without unreasonable delay. This policy applies to all employees regardless of their length of service and can be found on the Woodbois website. Local community formulates grievance Official letter from legally elected community leader A grievance hearing takes place between all representative leaders of the community at a special sitting attended by a senior management representative of our company Community service project created to address grievance and best help the whole community The grievance is settled and agreed upon, taking stakeholder perspectives into account The company conducts a considered follow-up of issues addressed and projects implemented with the community WHISTLEBLOWING PROCEDURE • Employee becomes aware of any malpractice and immediately reports it to their Line their concerns directly with the Group Compliance Officer Manager • The Line Manager notifies the Group Compliance Office (the Chief Financial Officer will act as Woodbois’ Group Compliance Officer) • In instances where the employee does not feel comfortable reporting a potential malpractice to their Line Manager, they are encouraged to raise any concerns directly with the Group Compliance Officer, the Chairperson of the Audit Committee, or the Company Secretary, who will investigate the matter promptly, confidentially and • The Line Manager is responsible for initially investigating all matters reported to them, in a sensitively prompt, confidential and sensitive manner • The Line Manager provides formal feedback to the employee and Group Compliance their concerns Officer of any investigation conducted and the resulting actions taken • If the employee feels the matter has not been resolved to their satisfaction, they can raise Committee of the investigation, and resulting action will be taken • The Group Compliance Officer will provide formal feedback to the employee and Audit • The whistleblower will usually be invited to attend an investigation meeting to discuss 39 39 39 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS EMPLOYEE SPOTLIGHT An insight into the roles of Woodbois employees positioned in Gabon, Mozambique, South Africa, Denmark and the UK. MONA BAKRI Mona, the Director of the Mouila site in Gabon, joined Woodbois in 2017 as the factory manager. Upon her arrival, the site was vastly different from what it is today. Mona’s role includes managing finances, human resources, and social relations with public administrations. Mona proudly remembers the visit of the President of Gabon to our veneer factory in November 2022 and always enjoys welcoming the members of the board. MANUEL ANTONIO FELIX Manuel is a Procurement and Logistic Assistant at Woodbois in Mozambique. He supplies materials to the bush, and manages stock items and transportation. Manuel’s role is vital for analysing cost reduction, ensuring on-time delivery, and maintaining a ready stock. AMI ANSELLE Ami is the Communications/PR Manager for Woodbois and based in the UK. Ami is responsible for managing our internal and external communications, as well as our relationships with investors, partners, and government officials. In addition to Ami’s everyday tasks, she enjoys organising our events and managing the London office. Ami’s motto to succeed at work is "Nothing is impossible”, made all the more true at one of her most memorable experiences with Woodbois in 2022 when she met with communities in Gabon for the first time. 40 40 WOODBOIS LTD | Integrated Report 2022 HANAE MIMOUNI Hanae is our Sales Support Manager and based in Denmark. Hanae serves as the main contact between our commercial customers, providing support and assistance to sales managers and the finance department, alongside customer service and payment control. Hanae joined Woodbois in November 2019 and made strong bonds with her colleagues around the world and knows that to succeed at work, one must strive for excellence, embrace challenges, and learn from every opportunity. WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS ELVIE MOUNGUENGUI Elvie is a Shipping Agent based in Gabon. Since starting in February 2022, he has been responsible for managing the various shipping companies, preparing transit documentation, communicating boarding forecasts to shipowners, and submitting shipping instructions. Elvie enjoys the challenging and exciting role, liaising with colleagues around the world and building relationships with all the shippers. NIC KLAZEN Nic is the Group Management Accountant at Woodbois and works from our finance office in South Africa. Nic makes sure our finances are operating as a well-oiled machine and collaborating with our teams all over the world. For anyone needing any motivation at work, Nic says, “You worked hard to be in this position, don't let your younger self down." 41 41 41 WOODBOIS LTD | Integrated Report 2022 BERJUZA PRYNA LENDOYE Pryna is a Shipping Manager with eight years of experience, who joined the Woodbois team in Gabon a year ago. Passionate about and efficient at managing supply chains and optimising lead times, Pryna is known for her lightning quick operational speed and loves leading the Shipping team. WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS PRODUCTION MANAGERS AT OUR GABON VENEER FACTORY Meet Mustapha and Issa - two individuals whose work intertwines to create a smooth and efficient operation at Woodbois in Gabon. Mustapha, the head of the veneer factory, has over 27 years of experience in the wood industry, while Issa, the production manager, started his career as an accountant and was taught by Mustapha to manage veneer production. The two work closely to ensure the smooth operation of the factory, with Mustapha focusing on production and Issa managing workers' payroll, diesel supply, orders and reporting. Together, they lead their team to success in the wood industry in Gabon. 42 42 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS MANUFACTURING CAPITAL MATERIAL ISSUES STRATEGIC PRIORITIES SDGS - - Efficient use of resources. Sustainable and high quality products. 1. New machinery and equipment investment to drive down manufacturing costs and optimise the use of resources. 2. Minimise dependency on fossil fuels by using renewable energy and implementing circular solutions. We take a proactive approach to investment in energy- efficient equipment in order to drive down both costs and emissions, and we make the most of the plentiful renewable resources available to us. We use wood, for example, to create circular solutions that further meet our energy requirements. • • 0 chemicals and pesticides 100% of the logs processed in Woodbois sawmills come from company-owned operations • Our productivity in 2022 increased by 42% in terms of sawmill output, 38% in terms of veneer output and 112% in terms of the volume of logs harvested, compared to 2021 The installation of the second veneer line was completed during second half of 2022, with further volume increase expected in 2023. 43 43 43 WOODBOIS LTD | Integrated Report 2022 480,482 ha Total forest land 52,314 ha Area dedicated to conservation 407,661 ha Operational forest land (forest management plans) 73,469 ha Shared community, conservation and multi-use 7.33 m3/ha Harvesting intensity ratio per hectare 24,349 m3 Volume of timber produced. (veneer, sawn timber) 12,266 m3 Volume of third party timber traded (logs, veneer, sawn timber) 35,245 m3 Volume of timber traded including third party and Woodbois. (logs, veneer, sawn timber) 8,108 ha Area with actual harvesting 59,471 m3 Volume of logs harvested 22,979 m3 Volume of Woodbois' produced timber traded. (logs, veneer, sawn timber) 34 Sawmills providing third- party timber supplies WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS ASSETS OVERVIEW Woodbois’ Gabon facilities are located in Mouila, a dynamic, developing town 400 km from the capital city. Woodbois is one of the largest formal employers, offering local people skilled jobs with valuable development opportunities. Country Production assets Capacity 2021 Capacity 2022 Gabon Gabon Gabon Sawmill Kiln 2000 m3/month 3000 m3/month 2000 m3/month 2000 m3/month Veneer factory 525 m3/month 1600 m3/month Mozambique Mill 1000 m3/month 300 m3/month Coordinates: 1°52’19.0”S 11°01’22.4”E Woodbois’ operations in Mozambique are located in Gile/Uape. In 2022 18,652 m 3 of wood were produced at the sawmill and 5,246 m 3 at the veneer factory. Coordinates: 16°09'36’’S 038°05’05’’E 44 44 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS OPERATIONS IN GABON With more than 156,000 hectares of forest under management, Woodbois has been involved in the Gabonese forestry sector for the last two decades. Within its sawmill operations, Woodbois has invested significantly into its leading sawmill in Mouila, equipping it with the latest European machinery suitable for African hardwoods, and establishing solid training and development programmes to broaden the skillset of the local workforce. For example, a Primultini bandsaw was added to increase our processing capacity, enabling us to simultaneously cut long timbers of multiple sizes. Phase one of the development of our veneer factory was completed in 2019 as part of our expansion plan and is also located in Mouila, just 70km away from our forest concessions. A second line was launched in 2022 enabling us to triple our daily production and offer a wider range of products to our customers. When operating at capacity this will also bring additional employment roles to the Mouila community. Production from the factory – which employs a significant proportion of women – is exported mainly to the Mediterranean region, with key buyers in Italy, Morocco and Turkey. On 6 August 2021, the Group acquired 100% of the shares and voting interests in La Gabonaise des Forêts et de l'Industrie du Bois (LGFIB). Through the acquisition of LGFIB, the Group acquired 71,000 hectares of forest concessions in Gabon, 56,000 of which are currently covered by a management plan. 45 45 45 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS TRADING Woodbois responsibly sources and trades products from several international – mainly African – countries. The chart below shows the list of countries sourced from in 2022. 12,266 m³ of timber sourced from third-party supplying mills and traded, representing 35% of the total timber sold (35,245 m³). 2% Colombia $109,578 3% Ghana $228,898 4% Equatorial Guinea $274,078 Ivory Coast $53,055 <1% CAR $36,355 <1% Gabon $2,881,111 42% $ 6,794,076 Timber s ourced from 3rd par ty 10% Cameroon $667,867 Democratic Republic of Congo $943,546 14% 24% Republic of Congo $1,599,588 46 46 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS INTELLECTUAL CAPITAL MATERIAL ISSUES STRATEGIC PRIORITIES SDGS - - Equal rights and conflict resolution Legal harvesting 1. Leverage leadership role-modelling to promote values of integrity and transparency. 2. Ensure ethical conduct and anti-corruption best practices are in place. 3. Ensure labour rights are fully met. Our material issues – equal rights, conflict resolution and legal 2. Environment harvesting – can be addressed through the consistent application We commit to protecting and respecting the natural environments of our three key priorities: leveraging leadership role-modelling in which we operate. to promote the values of integrity and transparency; ensuring ethical conduct and anti-corruption best practices are in place; and We strive to reduce the environmental impact of our global ensuring labour rights are fully met. operations and to help conserve natural resources by planning and CODE OF CONDUCT 1. Safe and healthy working conditions We commit to promoting and protecting the safety and occupational health of our entire workforce, above all other priorities. At Woodbois we are focused on providing a safe workplace by ensuring that tools and equipment are maintained in working good order, and by supplying appropriate personal protective equipment in accordance with international standards and national laws. All employees receive training to ensure they are competent and fit to carry out allocated duties. This includes information about risks and relevant control measures, procedures for safe evacuations of buildings and workplaces, and correct use of tools and machinery. We recognise that all staff have the authority to halt work if they consider an action unsafe. 47 47 47 WOODBOIS LTD | Integrated Report 2022 managing operations with a sustainable focus. We monitor and report our environmental impacts, and ensure that all operations comply with environmental laws. Our production team strives for continuous improvement through waste minimisation, efficient resource use and other measures that reduce our environmental footprint. 3. Labour and human rights We support the United Nations’ Universal Declaration of Human Rights. We respect each individual's human rights and follow all employment laws and regulations. We do not tolerate any form of workplace discrimination, harassment or physical assault, or any form of child, forced, or compulsory labour. Employees are paid regular and competitive wages, and Woodbois regularly invests in resources and training to assist staff who want to develop their full potential. CEO Paul Dolan in post shift discussion  with sawmill team Leader Obatsitsele Kakoko. WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS 4. Host communities employees with an environment where they can bring their whole Financial Reporting Standards (IFRS) as adopted by the European We recognise the importance of community engagement and shared self to work regardless of gender, race, sexual orientation, age, Union (EU). prosperity. religion or disability. We seek to reflect the diversity of the regions and communities in which we operate within our own workforce, and 10. Tax We engage with communities at all stages of project planning and respect the rights of employees including the freedom of association We commit to paying the right taxes. development to ensure that local opinions, feedback, and concerns and collective bargaining. are properly recorded and addressed. 7. Bribery Woodbois strives to understand and comply with the legal and regulatory obligations for taxation arising from its operations. We are committed to full compliance with external and company We believe it is possible to deliver real socio-economic impact We stand against bribery and corruption. reporting requirements, including those concerning disclosure to tax through our regional activities by developing infrastructure, building authorities and reporting on the tax payments that we make. local skills, and providing development opportunities for people. It is not permitted for any Woodbois employee or representative to 5. Suppliers, customers and other business partners third-party business in any dealings. We recognise the importance of looking after our assets. We commit to fair and ethical relationships with suppliers, customers Employees are responsible for looking after company assets and other business partners. 8. Trade controls and sanctions including business opportunities, funds, property, proprietary give, offer or receive a bribe either directly, indirectly, or through a 11. Protecting and maintaining assets We endeavour to build long-lasting relationships based on fair regions where we operate and trade. Employees must take steps to read and understand the rules selection, clear terms of business, and adherence to shared regarding unacceptable use of company IT resources and comply principles set out in our Code. The export of timber goods is subject to a range of regulatory with the relevant set of rules. We follow established due-diligence procedures that enable us to dialogue with relevant government and trade bodies to ensure it permitted by law and as is reasonably necessary to meet business requirements in different regions. Woodbois maintains constant Woodbois only collects and holds personal information as We comply with all applicable trade controls and sanctions in the information, and personal equipment. select business partners who meet legal requirements and internal satisfies registration requirements, export licence needs, and all requirements. expectations in regards to product provenance, supply chain safety additional legal obligations. and environmental impact. 12. Insider dealing Woodbois is conscious that governments and international We stand against insider dealing. Woodbois is committed to purchasing third-party timber only where organisations may impose international trade sanctions on countries It is illegal to deal in Woodbois shares on the basis of inside it is possible to ensure legal compliance of suppliers. The company where the company operates. We are committed to complying with information or to encourage others to do so. unreservedly condemns illegal logging and irresponsible trade of all trade sanction conditions. During the course of their work some employees will have access to endangered species. 6. Equality 9. Accurate records, reporting and financial recordkeeping in Woodbois shares. We commit to publishing accurate and transparent company reports. Employees are forbidden from using confidential company information which could influence someone contemplating investing We commit to creating an inclusive environment where every We endeavour to release regular operational, financial and integrated information for personal gain, or from sharing inside information for colleague is valued. At Woodbois, all employees are expected reports for the benefit of company stakeholders. the same purpose. to treat each other with care and respect. We strive to provide Financial statements are produced in accordance with International 48 48 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS FOREST MANAGEMENT IN GABON AND MOZAMBIQUE • Woodbois holds fifteen forest permits in central Gabon in potential roads (Aucoumea klaineana), Ilomba (Pycnanthus angolensis), Ebiara • • the province of Ngounié, north-east and south-east of the community of Mouila covering a total area of 156,477ha. • • The inventory is recorded by systematic sampling (Berlinia bracteosa), Dabema (Piptadeniastrum africanum), The counting operation consists of: identifying the species of and Ovang-Kol (Guibourtia ehie). We are also permitted to The management plans, approved by the administration in trees; measuring diameter; numbering trees via the placing harvest an area of 3813 from the 2021 LGFIB27 management charge of waters and forests, define the harvesting plan for the of a plate; geolocating each tree via GPS; and assessing the plan. areas quality of all applicable trees that have reached the minimum The inventory plan determines: the stocks of harvestable diameter size for harvesting All of Woodbois’ forest management plans have been approved by timber and their location; how to track and mark trees to be • The harvesting plan for 2022 covered a total area of 4,200 local governments following preliminary community consultations harvested or protected; and how to establish the route of hectares27. The most common tree species are Okoumé and approval processes, and are strictly followed. Geographical location of UFA LYNN-TIMBER permits and management plans. 49 49 49 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS Tableau 3: Séries d'aménagement de l'UFA WBG. Tableau 4: Découpage de la série de production de l'UFA LYNN-TIMBER en UFG. Allocation of the areas under the management plan The production has been divided into four areas that will be used in different periods as described above. In Mozambique, the company has historically harvested The inventory plan determines the stocks of harvestable small volumes of timber from 8 of its 11 concessions. Six in timber and their location, how to track and mark trees to be Zambezia province, communities of Uape-Gile District and harvested or protected, and how to establish the route of Alto-Molocue District, one in Nampula province, community potential roads. of Niveto, Lalaua district and one in Niassa Province, community of Mississi in the district of Mandimba. This inventory is recorded by systematic sampling, and the counting operation consists of identifying the species The company's management plans, which are approved by of trees, measuring the diameter, numbering trees via the administration in charge of land and environment, define the placing of a plate, geolocating each tree via GPS, and the harvesting plan in concession blocks to be harvested assessing the quality of all applicable trees that have each year. reached the minimum diameter size for harvesting. The maps of the management plans in Mozambique are available in the Appendix. These plans are valid for three to five years depending on The most common commercial species include Umbila the size and forestry potential of the concession. (Pterocarpus Angolensis), Chanfuta (Afzelia Quanzensis), and Messassa (Brachystegia Spiciformis). The management plan is available at this link https://opentimberportal.org/operators/100151/documentation 50 WOODBOIS LTD | Integrated Report 2022 APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS HOW IT WORKS Forest management plans allow us to track how many cubic metres of timber have been extracted while monitoring the impact our operations have on the environment, ensuring we operate responsibly. All of Woodbois’ forest management plans have been approved by local governments following preliminary community consultations and approval processes, and are strictly followed. HARVESTING PLANS In Gabon, following a 23-year rotation cycle, Woodbois is permitted to harvest a section of its total concession area using a three to five year management plan. After three years, the same area cannot be touched for 20 years to ensure forest regrowth. Woodbois has complied with having a Higher Level Forestry Technician for each concession who supervises the management plans, makes projections on improvements required and assesses the impact of harvesting operations according to the company harvesting plan. FOREST INVENTORY To ensure selective cutting of commercial species, we carefully quantify and locate appropriate forest resources, with particular emphasis on social aspects as well as protecting natural biodiversity. Each of our trees is tagged and geo-monitored so we can actively track tree species, volume and the quality of what we cut. LOGGING ACTIVITIES PLAN Vital to minimise the impact of roads. FOREST CONSERVATION Woodbois collaborates with local chiefs to safeguard areas not in production from illegal logging activities, agriculture, and other uses, including conservation. 51 51 WOODBOIS LTD | Integrated Report 2022 MANAGEMENT PLAN - 4,200HA EACH TREE is individually identified and its location recorded by GPS within the concession area In a single hectare plot, the Company is typically only allowed to cut 6 TREES AFTER 20 YEARS you can re-enter the forest and the exact same exercise is carried out 1 H A This method of forest management is called Continuous Cover Forestry – when taking out an individual tree in an area, you open canopy to allow smaller trees to grow. WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS RELATIONAL AND SOCIAL CAPITAL MATERIAL ISSUES STRATEGIC PRIORITIES SDGS - - Responsible sales and marketing. Developing local economies. 1. Invest in long term partnership with selected timber suppliers embracing the same ethical and sustainability principles. Invest in services and facilities for local communities. 2. 3. Develop strong relationships with local administration and Government. 4. Strengthen sales efforts with African clients. In 2022, Woodbois made sales to 78 customers across 24 countries. Consistently providing our customers with the highest level of service and quality of product is one of our highest priorities and we aim to foster a relationship of mutual trust and security with all of our customers and suppliers. 52 52 WOODBOIS LTD | Integrated Report 2022 RESPONSIBLE TRADING & SOURCING 22,979 m3 Volume of Woodbois' produced traded. (logs, veneer, sawn timber) 12,266 m3 Volume of third party timber traded. (logs, veneer, sawn timber) 35,245 m3 Volume of timber traded including third party and Woodbois. (logs, veneer, sawn timber) 34 Sawmills providing third- party timber supplies 100% of our suppliers to be third-party certified, or in the process of becoming certified by 2025 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS DUE DILIGENCE PROCESS Woodbois only sources forest products from partners who have succeeded in passing a due diligence process for legal and A Woodbois controller in the field verifies that suppliers responsible forest product sourcing. To work with any supplier of timber, Woodbois requires information and documentation comply with the due diligence process and wood quality regarding the source of the timber including tree species, wood origin and compliance with national laws and regulations. standards on a regular basis, and then drafts a monthly report. If third-party suppliers do not meet Woodbois’ selection criteria, they are placed on an exclusion list which forbids our traders from conducting business with them. This exclusion list is updated on a bi-annual basis. SUPPLIERS SHIPMENT BUYERS Since 2013, Woodbois has run a Documents required: due diligence process inspired by EUTR/ FLEGT, which includes a • Bill of Lading (BL) from the Buyers sometimes provide their own supply chain mapping to ensure responsible timber checklist of documents required shipping company purchases. for screening. This process is done at the beginning of each year for existing suppliers and at the start • CITES certificate if necessary (created by Woodbois using of any collaboration with new supplier export codes) suppliers. • Movement certificate (EUR1 for EU trade; Certificate of Origin if shipment is anywhere else in the world) • Act of Merchandise Transit (Circulation de Merchandise) • Phytosanitary certificate 53 53 53 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS THE OPEN TIMBER PORTAL Any increase in transparency within the timber space in the Congo Basin is welcomed by Woodbois as it is beneficial to both our production and trading businesses. We are keen to implement the voluntary use of the Open Timber Portal (OTP) for our third-party trading business as we on-board new suppliers and renew documentation for existing suppliers. We advocate the use of the OTP by all of our suppliers and producers, encouraging them to address any gaps in their internal processes in order to improve their own levels of transparency. The report for 2022 is available at this link https://opentimberportal.org/operators/100151/documentation TRACEABILITY AND TRANSPARENCY To confirm that none of the wood traded by Woodbois is on the CITES species list, our traceability process allows us to track products across their entire journey, from forest to manufacturing to final export. We trace both our raw material and processed timber back to the country of harvest. Any timber handled by Woodbois in any form requires a certificate of origin – neither ourselves nor our logistics providers or customers will handle timber that does not have a certificate of origin identifying its country of harvest. In collaboration with South Africa-based WorkPool, we have developed software allowing our trading and operations teams to collect all trading-related data, from inputting a simple sales or supplier enquiry all the way through to issuing invoices. This software allows us to quickly identify any supplier with out-of-date documentation, so we can remove them from our supply chain until their paperwork has been renewed. 54 54 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS ENGAGING WITH LOCAL COMMUNITIES Woodbois is dedicated to fostering strong relationships with In March 2022, the Woodbois team spent three weeks in the largest neighbouring communities, recognising their essential role villages in the Ekembele and Yeno zones to carry out restoration in providing a skilled workforce, establishing local business work. The first project was the restoration of the land around the partnerships, and ensuring responsible stewardship of natural Kembele dispensary, allowing for better access for villagers. The resources. Woodbois upholds its commitment to conducting second project involved the restoration of the Kembele football We are committed to: business with integrity and promoting shared prosperity through pitch, enabling the local football team and young schoolchildren to • • • • Enabling sustainable use of non-timber forest products regular financial contributions to a fund that is co-managed by engage in sports activities. (NTFPs) by local communities. community representatives, local government, and the Ministry of In October 2021, Woodbois began the "Route Mouila Mimongo" Free prior and informed consent (FPIC), and the inclusion of Water and Forests, in accordance with the Gabonese Forestry Code. road project to improve travel conditions for the local community. indigenous peoples. These contributions support critical community-led development The 50 km journey used to take up to three days, which was Respecting legal and customary land tenure rights. initiatives, thereby promoting sustainable development in the region. completely isolating for rural communities who needed access to Providing business and work opportunities for local In a typical example of Woodbois' community-focused efforts, the the forest for harvesting, and safe routes to other nearby villages. communities. company delivered tools and equipment to the village of Mboukou in March 2022 in order to aid the community in construction and wood Our commitments apply to all suppliers. collection activities. The project involved sustainably resurfacing 126 km of road in a way that preserves the local environment28 and does not impact the area’s biodiversity29. The two-phase project also included the renovation of bridges, plantation grounds and a local community Specific initiatives Woodbois is adopting include: • Maintaining regular communication with local communities. Installing safety signs in the forest to ensure the security of • RESTORATION AND COLLABORATION Woodbois has a dedicated team that regularly visits the villages surrounding our concession. This team ensures that our work does court. Before nearby villagers, who should have free, safe access to the not negatively affect the communities and addresses any raised forest. concerns to improve our collaboration and maintain community • Listening to and communicating with local communities in safety during our forest operations and trucking activities. We are order to understand their needs and concerns. committed to being accessible to the communities when needed and sharing benefits as outlined in our "cahier de charges." Our teams are actively engaged in community consultations to In a recent effort to promote safety and mutual understanding in ensure we respect local customs and our contributions have the forest concession, Woodbois conducted a visit to Yeno village to meaningful value (our FPIC procedure is reported in the report address concerns related to safety issues that have arisen between annex). This commitment extends to respecting legal and traditional truck drivers and villagers. As both parties rely on daily access to land rights. For example, our forest concessions are a direct result the forest for various purposes, we endeavoured to identify and of community consultations. Local stakeholders help designate implement a solution that would be safe and equitable for all. After and map agricultural land for local use, dedicate areas for specific We also make regular financial contributions to a fund co-managed crops and provide education and information related to the by community representatives, local government, and the Ministry of hunting seasons. In some cases, we have established contractual Water and Forests in accordance with the Gabonese Forestry Code. agreements with communities to ensure we respect and align with Alongside the road work, Woodbois Gabon has also undertaken local needs and customs. Woodbois is also financially contributing several social projects such as the renovation of local community to the development of villages Saint-Martin and Mboukou. courts, football pitches, and dispensaries. 55 55 55 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS GLOBAL EVENT PARTICIPATION Woodbois maintains an active presence at International Woodshows where the wood & woodworking Industry's key players showcase their innovative technologies, production scenarios, large-scale machinery, and products. These events serve as an excellent platform for suppliers, manufacturers, and companies dealing in timber products and related machinery and tools to exhibit their offerings, learn from peers within the industry and to initiate and cement business relationships. MAPUTO INTERNATIONAL TRADE FAIR (#FACIM) DUBAI WOODSHOW Our strong focus on the growth markets of the Middle East Woodbois was delighted to receive a visit from and North Africa, means that our sales team ensures a visible Mozambique’s president, H.E. Filipe Nyusi, at its stand at presence at the annual Dubai Woodshow. Held at the World FACIM 2022. FACIM, a multi-sectoral Trade Fair organised by Trade Centre in Dubai, the event is the largest in the region IPEX - Institute for Support to Export - is aimed at stimulating and is attended by many of the region’s key wood purchasing consumption and economic integration in Mozambique's managers and professionals. growing economy by providing a platform for international exhibitors to connect with local businesses. In addition to promoting economic growth, FACIM also plays a role in promoting sustainability in the wood industry by showcasing innovative and environmentally friendly technologies, production methods, and products. 56 56 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS ALGERIA WOOD TECH AFRICA CLIMATE WEEK The International fair of Wood, Woodworking, Equipment and Members of the team have also attended sustainable forest Technologies. management and climate related conferences both online Held at the SAFEX in Algiers (maritime pines), the exhibition and in person. A particular highlight given our work in Gabon is under the patronage of the Minister of Industry and brings was Africa Climate Week which was held in held in the together key players in the wood and woodworking sector, capital, Libreville, in September 2022 which provided a forum which Woodbois is delighted to be a part of. for governments, private sector leaders and civil society to discuss regional solutions to climate change and to forge partnerships. The TimberShow in Nantes, France, has become a prominent event in the wood building landscape, providing a platform for French and international experts to discuss current issues in the wood industry. The fair is an excellent barometer of the sector and plays a vital role in promoting sustainability in the wood industry by showcasing innovative and environmentally friendly solutions. 57 57 57 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS NATURAL CAPITAL MATERIAL ISSUES STRATEGIC PRIORITIES SDGS - - - - - Climate change. Biodiversity. Protection of land (soil and water safety). Greenhouse gas emissions. Energy usage. 1. Protect forests from illegal harvesting. 2. Preserve animal habitats and biodiversity. 3. Employ soil and peat management best practice. 4. Integrate activities to enable transition to net zero emissions. FIREFIGHTING At Woodbois, we believe the best approach to reducing the risk of wildfires is preventative firefighting. Our proactive three-pronged approach – effective weed control, firebreak construction and ring-hoed trees – drastically reduces fuel loads prior to the dry season. By engaging local communities to identify potential hot spots, we ensure fires are kept to a minimum. Our preventative approach is extremely effective; Woodbois has never lost a single tree to fire in any of its project areas. Natural capital is the central focus of our business, therefore we face significant material issues including climate change, protection of biodiversity, protection of land (and ensuring soil and water safety), greenhouse gas emissions and overall energy usage. As such, responsible and ethical forestry sits at the heart of our operations, driving our key priorities of protecting forests from illegal harvesting, preserving animal habitats and biodiversity, employing soil management best practice, and integrating activities to enable a transition to net zero emissions. In 2019, Woodbois began using Global Forest Watch, an online platform that provides data and tools for monitoring forests. By taking data from various satellites, Global Forest Watch can give real-time information on forest fires and other potential deforestation situations. 58 58 WOODBOIS LTD | Integrated Report 2022 APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS E N E R G Y C O N S U M P T I O N 2019 2020 2021 2022 Energy consumption within the organisation. Diesel consumption on the ground and in processing facilities. Energy consumption within the organisation. Diesel consumption on the ground and in processing facilities. Energy consumption within the organisation. Petrol consumption on the ground and in processing facilities. Energy consumption within the organisation. Total energy consumption from fuels (diesel, petrol) L GJ GJ GJ 839,836 682,631 991,496 1,502,240 30,150 24,506 33,314 54,081 281 201 52 174 30,431 24,708 33,367 54,255 m3 of logs harvested 34,361 18,810 28,000 59,471 Energy intensity. Total energy (fuels and electricity) intensity ratio per final production (logs). GJ/m3 0.89 1.31 1.19 0.91 We are committed to: • Protecting forest areas against deforestation, degradation and conversion for unauthorised or illegal resource use, settlement and other prohibited activities. • Restoring non-compliant deforestation and conversion. • Implementing a landscape-level approach to preserving animal habitats and biodiversity. • Permitting no hunting, or permitting sustainable hunting and fishing only. • Ensuring present and future potential plantation timber suppliers do not plant on peat land. • Adopting the High Carbon Stock approach to any future potential plantation timber suppliers. Our commitments apply to all suppliers. As of 2022, the Company does not have any peat land area in its landbank. Our carbon analysis from 2022 shows an increase in direct and indirect GHG emissions compared to 2021, which is a result of higher energy consumption due to increased timber production. However, we have also seen a decrease in emissions intensity, indicating that our energy efficiency measures had a positive impact on our carbon footprint during 2022. We will continue to monitor our emissions and energy consumption closely as we strive to balance the needs of our business with our commitment to environmental sustainability. 59 WOODBOIS LTD | Integrated Report 2022 E M I S S I O N A N A LY S I S 2020 2021 2022 Delta (%) GRI 305-1 Direct (Scope 1) GHG emissions for use of fuels. tCO2e 1,849 2,664.93 4,048.86 52% Biomass converted into energy. tonnes 1,250 1,840,00 2,024 10% GRI 305-1 Other indirect (Scope 1) GHG emissions: on-site biomass incineration. tCO2e 72.94 88.30 118.11 34% Volume of logs harvested. m³ 18,810.00 28,000.00 59,471 112% GRI 305-4 Total GHG emissions intensity. tCO2e/m³ logs 0.098 0.095 0.07 -16% Volume of Woodbois' produced timber (veneer, sawn timber). m³ 9,357.00 16,964.00 24,349 27% GRI 305-4 Total GHG emissions intensity. tCO2e/m³ timber 0.20 0.16 0.17 6% Diesel assumed to be 100% mineral diesel Petrol assumed to be 100% mineral petrol. Biomass assumed to be wood chips GHG Protocol Website: "NCASI Spreadsheets for Calculating GHG Emissions from Wood Products Manufacturing Facilities Workbook Version 1.0" APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS TRANSPARENCY Woodbois ranked eighth among 100 timber and pulp companies in 2022’s annual Sustainability Policy Transparency Toolkit (SPOTT) ESG policy transparency assessments. The assessment was conducted on companies controlling over 44 million hectares of land in the timber and pulp industries worldwide. We are proud to be highly ranked in the ZSL SPOTT companies' transparency assessment, and maintain our core commitment to transparency and sustainability, forest management and climate change. 60 60 WOODBOIS LTD | Integrated Report 2022 Woodbois is committed to responsible and ethical forestry. Our contribution: Our forest management and responsible sourcing practices have a direct impact on SDG 15 and on our ability to preserve the forest environment while supplying wood and wood products in the long term. Poor management practices could affect the potential of the lands where we operate, reducing the positive impact on local communities in terms of resources and job opportunities. We aim to grow our activities while recognising the needs and customary rights of local communities and indigenous peoples. By pursuing sustainable forest management, Woodbois aims to enhance the benefits healthy forests bring to our ecosystems and help reduce the negative effects of climate change on forests and forest-dependent people. • We protect our forests to reduce deforestation and degradation. • We take firm action against deforestation, harvesting fewer trees than management plans permit, and working on a 23-year rotation plan that ensures the regrowth of harvested forest and maximises carbon absorption. • We work closely with governments and local communities to address illegal activities, helping to ensure that forests are protected and that their productive capacity is optimised in the long term. • We strictly follow both national and international regulations and standards for flora and fauna protection (CITES, IUCN), and commit to zero conversion of natural forests. • To avoid unsustainable and non-compliant use of forest resources, Woodbois donates a significant volume of timber to local communities. • By sourcing and manufacturing wood and wood products we offer an alternative to less sustainable products. Woodbois' commitment to zero deforestation or zero conversion of natural ecosystems applies to all suppliers. APPENDIX & REFERENCES COVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS In 2022, Woodbois remained committed to and compliant with forest regulation. However, if any non-compliant deforestation or conversion occurs in the future, the company remains committed to restoring the affected areas. Woodbois is collaborating with the Gabonese government to ensure that by 2025, the company will not tolerate any form of deforestation. The collaboration aims to promote sustainable and responsible management of our forest concession while preserving biodiversity. Investigations revealed five types of illegal activities threatening the preservation of the forest resources, and the directive focuses on combating poaching and illegal logging. Our goals include identifying risk areas, developing strategies to combat illegal activities, establishing collaborative relationships with stakeholders and evaluating the actions' relevance. A functional wildlife unit will monitor all measures set out in the wildlife protection plan. The plan is to set up a gate at the entrance of the concession, awareness panels, campaigns to educate local populations, internal regulations for game hunting and prohibiting transport of meat in company vehicles. In light of climate change, Woodbois constantly monitors specific parameters over time. This includes tracking temperature increases that may affect the local flora and fauna dynamics, as well as rainfall changes that could result in flooding and soil saturation. biodiversity while carrying out its activities. This includes the implementation of the company's Environmental Policy, specifically Point 7 of the Social Policy signed on October 10, 2006, which pertains to the preservation of biological diversity in forest titles. The management of Woodbois is fully committed to adhering to these policies. Our commitment: • Best management practices for soils and peat to minimise the use of chemicals, including pesticides and chemical fertilisers, and no use of World Health Organisation (WHO) Class 1A and 1B pesticides and chemicals listed under the Stockholm Convention and Rotterdam Convention. • Reduced-impact logging. • Zero burning in the forest. • Protecting natural waterways with buffer zones. • Developing a complete climate change risk assessment. This includes identifying climate-related risks that are relevant to the company, and proposing measures that should be made at the forest management unit in Gabon. • Developing a Natural Capital Assessment based on the protocol provided by the Natural Capital Coalition. We are engaging with consultants who can help us perform more detailed High Conservation Value (HCV) and Social and Environmental Impact (SEIAs) assessments. In 2022, Woodbois committed to upholding its pledge to protect fauna and flora and to maintain respect for Our commitments apply to all suppliers. 61 WOODBOIS LTD | Integrated Report 2022 APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS WATER AND WASTEWATER MANAGEMENT In October 2021, Woodbois commissioned SEEG, the state- run water and electricity utilities company in Gabon, to carry out a study of the well at its sawmill in Gabon. Woodbois wanted to verify it was not polluting the well with waste, oil or biohazards. The result, provided by an independent third party lab following the WHO guidelines for drinkable water, found the water to be drinkable, with a PH equivalent to Perrier water (i.e. 5.5). View the report (En) https://www.woodbois.com/wp-content/uploads/SEEG-Water- analysis-english-version.pdf View the report (Fr) https://www.woodbois.com/wp-content/uploads/seeg-water- analysis.pdf As Gabon is renowned for its two heavy rain seasons, our facilities are equipped with drainage and gutters adapted to accommodate large amounts of water. The water collected is directed as far as possible from the operation and process area using gravity to evacuate it. In 2023 we intend to add more decanters close to our garage area to capture even more waste and to use part of this water as “grey water” for our commodities. Woodbois applies strict environmental rules and has written procedures to mitigate the risks of pollution in every area of process, and in the forest, to avoid water and soil contamination. Details of these procedures are available on demand. 62 62 WOODBOIS LTD | Integrated Report 2022 APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS WASTE MANAGEMENT MINIMISING THE IMPACT OF LOGGING ROADS Woodbois does not use chemicals or pesticides to manage Woodbois minimises the impact of logging roads by basing Crucially, harvesting only takes place along carefully laid waste. Wood waste is used as biofuel for the veneer factory main tracks, wherever possible, on existing roads and out skid trails. After harvesting, skid trails are rehabilitated and kilning operations (2,024 tonnes in 2022). traditional trails. Our forest management plan creates new to avoid permanent soil compaction and roads are closed roads efficiently and carefully, with infrastructure dimensions to prevent poaching and illegal settlements. In just a few USE OF CHEMICALS minimised as much as possible while adhering to safety months, skid trails and harvesting gaps are covered by tree and sunlight rules. Watercourse crossings are constructed regeneration, while roads disappear after a few years due to without raising the water level, which could potentially lead to the natural regeneration of pioneer tree species. Woodbois is flooding upstream and the destruction of forest. Bridges and committed to using best-in-class practices to minimise the other structures are planned and constructed according to impact of logging on the surrounding environment. varying seasonal flows. 0% Woodbois does not use chemicals in any forestry, sawmill or veneer operations, including chlorine or chlorine compounds, pesticides and chemical fertilisers (such as World Health Organisation Class 1A and 1B pesticides or chemicals listed under the Stockholm Convention and Rotterdam Convention). To capture and dispose of pests, we use an integrated management approach with non- chemical devices. 63 WOODBOIS LTD | Integrated Report 2022 APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS PARTNERSHIP WITH WORLD FOREST ID 19 percent of the European Union's wood imports are sourced illegally. At Woodbois, we ensure the selective cutting of commercial species by carefully quantifying and locating appropriate forest resources. We place a In May 2022 Woodbois entered into a partnership with particular emphasis on social aspects and protecting World Forest ID, which is building an extensive global library natural biodiversity. To track our operations, we tag and of reference samples from various forest regions, for use in geo-monitor each tree, enabling us to actively monitor cross verification. This partnership enhances the traceability tree species, volume, and quality. We also protect non- and identification of timber originating from our forest production areas from illegal logging activities. We believe concessions in Gabon. that sustainability requires balance. As such, we strive to With World Forest ID's science-based analyses, we can achieve equilibrium between our economic objectives and provide irrefutable verification of species identification and our environmental and social responsibilities. origin, allowing us to prove that the wood we sell originates from our concessions and to confirm the botanical species. This partnership with World Forest ID is a critical building block in our suite of services for the sustainable management of Africa's forests and is a significant step towards creating a more transparent and sustainable timber industry in Africa. COMMITMENT TO SUSTAINABLE HARVESTING BLESSINGS FROM LOCAL COMMUNITIES IN GABON As a company, we are committed to protecting and respecting the natural environments in which we operate. We understand that the forest is sacred for the local community, and we recognise the importance of community engagement and shared prosperity. With this in mind, we are honoured to receive a blessing from the dignitaries of According to Interpol, the illegal timber industry is valued at Mossighe village for our new concession. $152 billion annually and ranks as the world's third largest This blessing is confirmation of our efforts to foster criminal sector after drugs and counterfeit goods. As the sustainable relationships and create mutual benefits for global wood trade has expanded, so has the awareness all stakeholders, while striving to reduce the environmental of its illegal component. The WWF estimates that 16 to impact of our global operations. 64 64 WOODBOIS LTD | Integrated Report 2022 Forest Id collector taking a sample of a woodbois’ concession tree for origin of verification and traceability. Alain Diounga, Woodbois’ ESG Manager invited to the blessing ceremony in the Mossighe community temple. APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS WOODBOIS’ APPROACH TO ENHANCING ECONOMIC AND NATURE CAPITAL IMPACT FSC CERTIFICATION 1 . C E R T I F I C AT I O N O F N AT U R A L F O R E S T S The Company is currently working with Silvaterra on the process of FSC certification. 5 . E X PA N D P R O D U C T I O N C A PA C I T Y A N D H E C TA R E S O F F O R E S T U N D E R M A N A G E M E N T Woodbois wishes to increase its hectares under management to further enhance the benefits to all stakeholders. 1 5 2 4 3 2 . R E F O R E S TAT I O N I N T H E F O R M O F P L A N TAT I O N O R N AT U R A L F O R E S T A L O N G S I D E PA R T N E R S Woodbois is exploring reforestation solutions for available degraded land to identify carbon credit / offsetting opportunities. 4 . R E D U C E T I M B E R WA S T E In moving along the value chain, Woodbois seeks to reduce its waste. 3 . C A P I TA L E X P E N D I T U R E T O M O V E F U R T H E R A L O N G T I M B E R VA L U E C H A I N Woodbois has extensively expanded its sawmill and has built a veneer factory in Mouila. The Company has committed to investing more capital to move along the value chain providing more skilled work for the local community. Woodbois is dedicated to promoting sustainable forestry practices in Gabon and has made significant progress towards achieving full forest certification. The Ngounié and Nyanga Forests Programme exemplifies the company's commitment to balancing economic growth with social and environmental responsibility. As part of this effort, the company is working towards merging all of its concessions in Gabon into a single, FSC certified concession area which will not only improve environmental, social, and economic performance but also build upon existing management practices and enhance management oversight of forest activities. Additionally, Woodbois has taken further steps to ensure responsible forestry practices through the commissioning of High Conservation Value (HCV) and Biodiversity reports. These reports will provide a comprehensive assessment of the forest's ecological, social, and cultural values, and further inform our management practices. We are confident that the results of these reports will contribute significantly to our 2023/4 forest certification process and that many of the positive outcomes highlighted in future Integrated Reports will be a direct result of the implementation of recommendations from these reports. 65 WOODBOIS LTD | Integrated Report 2022 APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS REFORESTATION AND CARBON CREDIT DIVISION Woodbois established its carbon division in 2021 with the aim of developing a project implementation model that can simultaneously deliver environmental, social and economic value. In Q2 2023 Woodbois was awarded more than 50,000 In 2022, the Voluntary Carbon Markets (VCM) continued hectares of unutilised land in Gabon to undertake a to demonstrate their ability to provide near-term climate voluntary carbon credit afforestation project. The company solutions, as the notional value traded in the market plans to start a four-year pilot on a 2,000-hectare portion surpassed $1 billion for the second consecutive year. of the area, and in total the project is estimated to generate the growth of up to 50 million trees, mainly of the indigenous This achievement marks a continued trend of growing okoumé species. The project could potentially sequester confidence in the VCM among investors and businesses more than 30 million tonnes of CO2 during the first 40 years seeking to take meaningful action on climate change. and the first carbon credits are expected to be issued in COP27's agenda prioritised the role of nature-based 2028. solutions (NbS) in both climate mitigation and adaptation, and recognised the importance of sustainable forestry We are excited to have been awarded in principle our management in combating climate change. The private first Afforestation/Carbon Sequestration project from the sector is expected to propose dual strategies for managing Government of Gabon. The project aims to regenerate risks associated with both climate change and biodiversity Okoume in savannah areas, which are contiguous to loss, which could include commitments to using NbS. forests, by introducing local pioneer species and preventing fires. This approach will create a forest rich in Okoume, NbS have been shown to have the practical potential to an important tree species in the economy of Gabon and deliver significant emission reductions, equivalent to one- the daily life of rural populations. The afforestation project third of the global target set in Paris. Furthermore, NbS, will also have significant positive impacts on biodiversity including sustainable forestry management practices, can and water resources services. The new forest will increase deliver significant environmental and social co-benefits the diversity of ecosystems in southern Gabon and have a at lower cost than technological solutions. Capitalising root network that improves soil structure, increases water on this potential will require a coherent effort between absorption, storage and filtration, and reduces surface governments, the financial sector, and business actors to runoff. Forests also stabilise soils, reduce erosion, and deliver projects at a new pace and scale while prioritising infiltration into groundwater, thereby benefiting downstream sustainable forestry management practices. users who depend on the water. Moreover, forests ‘consume’ 66 66 WOODBOIS LTD | Integrated Report 2022 APPENDIX & REFERENCES COVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS more water than most other types of vegetation, thereby and eventually the creation of village nurseries. We are reducing runoff and promoting better water infiltration to excited to be at the forefront of landscape afforestation and rivers and/or aquifers. The afforestation project will create will seek to work with other African governments to replicate approximately 1,000 permanent jobs on average over the first projects of this kind across the region. As a company, ten years of planting and 250 over the 40 years of the project, we believe in the importance of sustainable forestry and not including the jobs that will be created for the exploitation environmental protection, and we are committed to playing and processing of wood. This project will benefit small our part in building a more sustainable future for all. businesses and service providers in Ndende and Tchibanga, and supply contracts will be concluded with farmers for the Extensive due-diligence carried out as part of the project supply of bananas, cassava, and other staple foods. The feasibility process confirmed the attractiveness of Gabon as transfer of technical skills to local people is also a major a project jurisdiction. Well-aligned development objectives, positive effect of the establishment of plantations. Initial and supportive policy, and prime environmental conditions all continuing training in planting and maintenance techniques contribute to a unique project development setting. is one aspect of this as well as training in nursery techniques, The economic advantages were recognised in a recent OECD paper that compared 166 countries based on the cost efficiency of forest carbon sequestration; Gabon ranked first in the afforestation category30. 67 WOODBOIS LTD | Integrated Report 2022 APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS Our reforestation project also serves as a crucial element of our community engagement efforts. We are committed to making a positive contribution to social progress and the regional economy by creating jobs, providing training, and empowering employees to lead initiatives for local action. REFORESTATION PROJECT PROCESS • Project developer coordinates with the Government to secure long term concession • Native species used to restore efficient ecological system CO-BENEFIT • Positive environmental impact on biodiversity, soil and water quality, and CO2 sequestration • Poverty alleviation, skilling and stable employment for local communities • Capability building and educating in sustainable practices • Reduced migration from project geographies Gabon is one of the world’s most densely-forested countries, with a unique bioclimate suited to rapid tree growth and optimal CO2 sequestration. The Gabonese Government has demonstrated a keen appreciation for the environment, addressing deforestation, investing in green industries, and engaging with international sustainability programmes. 68 68 WOODBOIS LTD | Integrated Report 2022 Photosynthetic carbon capture is the most reliable and cost- effective method available today for restricting the rise of atmospheric CO2 concentrations. The Intergovernmental Panel on Climate Change (IPCC) suggests new forest projects could sequester 25% of the CO2 required to maintain the 2°C temperature goal. OUR REFORESTATION EFFORTS IN MOZAMBIQUE In 2022 we maintained our established planted areas of Woodbois’ reforestation project in Mozambique, which began in 2017 with 35 hectares in Madeiras and now cover a total of 107 hectares. The project is managed by Eng. Macedo Uachuacho and supported by Woodbois’ head office in Maputo, with 10 employees currently working on the project. We have a permanent nursery in place to support seedling irrigation, and we only plant species that are native to each concession and their surrounding communities. Since the project began in 2017, we have planted over 14,000 trees of different species, and the first seedlings are now between five and six metres tall. We submit a comprehensive report on our activities and progress to the Ministry of Forestry authorities at the end of each month. WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS APPENDIX MANAGEMENT PLAN FOR MOZAMBIQUE 69 69 69 WOODBOIS LTD | Integrated Report 2022 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS 70 WOODBOIS LTD | Integrated Report 2022 APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS THE VALUE CREATION PROCESS AS PER THE INTEGRATED REPORTING FRAMEWORK EXTERNAL ENVIRONMENT PURPOSE, MISSION, VISION RISKS AND OPPORTUNITIES STRATEGY AND RESOURCE ALLOCATION BUSINESS MODEL BUSINESS ACTIVITIES OUTPUTS OUTCOMES (POSITIVE AND NEGATIVE OVER THE SHORT, MEDIUM AND LONG TERM) INPUTS PERFORMANCE OUTLOOK FINANCIAL MANUFACTURED INTELLECTUAL HUMAN SOCIAL AND RELATIONSHIP NATURAL FINANCIAL MANUFACTURED INTELLECTUAL HUMAN SOCIAL AND RELATIONSHIP NATURAL 71 71 WOODBOIS LTD | Integrated Report 2022 VALUE CREATION, PRESERVATION OR EROSION OVER TIME WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESGOVERNANCECOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS ESG INDICATORS GRI INDICATORS D E S C R I P T I O N GRI 102-1 Name of the organization. GRI 102-2 Activities, brands, products and services. a. A description of the organization’s activities. b. Primary brands, products and services, including an explanation of any products or services that are banned in certain markets. GRI 102-3 Location of the organization’s headquarters. GRI 102-4 GRI 102-5 GRI 102-8 GRI 102-8 GRI 102-8 GRI 102-8 GRI 102-8 GRI 102-8 GRI 102-8 GRI 102-8 GRI 102-8 GRI 102-8 GRI 102-8 GRI 102-8 GRI 102-8 GRI 102-8 GRI 102-14 GRI 102-20 GRI 102-47 GRI 102-50 GRI 201-1 GRI 201-1 GRI 201-1 GRI 201-1 GRI 201-2 GRI 201-3 GRI 201-4 GRI 202-1 Location of operations. a. Number of countries where the organization operates, and the names of countries where it has significant operations and/or that are relevant to the topics covered in the report. Ownership and legal form. a. Nature of ownership and legal form. Scale of the organization. i. Total number of employees. Information on employees and other workers. a. Total number of men. Information on employees and other workers. a. Total number of women. Information on employees and other workers. a. % of women. Information on employees and other workers. a. % of men. Information on employees and other workers. a. Total number of people in senior manager positions. Information on employees and other workers. a. Total number of women in senior manager positions. Information on employees and other workers. a. Board members. Information on employees and other workers. a. Women in board positions. Information on employees and other workers. a. % of women in board positions. Information on employees and other workers. a. % of women in senior management positions. Information on employees and other workers. a. Total number of permanent employees working in the production facilities in Gabon and Mozambique. Information on employees and other workers. a. Total number of fixed-term and seasonal employees working in the production facilities in Gabon and Mozambique. Information on employees and other workers. a. % of fixed-term and seasonal employees working in the production facilities in Gabon and Mozambique. Statement from senior decision-maker. a. A statement from the most senior decision-maker of the organization (such as CEO, chair or equivalent senior position) about the relevance of sustainability to the organization and its strategy for addressing sustainability. Executive-level responsibility for economic, environmental and social topics. a. Whether the organization has appointed an executive-level position or positions with responsibility for economic, environmental and social topics. b. Whether post holders report directly to the highest governance body. List of material topics. a. A list of the material topics identified in the process for defining report content. Reporting period. Direct economic value generated and distributed. i. Direct economic value generated: revenues. Economic growth. Direct economic value distributed. Salaries paid. Direct economic value distributed. Salaries paid in Africa. Direct economic value generated and distributed. Investment in management plans. Investment in environmental licences. Investment in HSE equipment. Ratios of standard entry level wage by gender compared to local minimum wage (average % above minimum wage). 72 WOODBOIS LTD | Integrated Report 2022 U N I T 2 0 2 2 NA NA NA NA NA Number Number Number % % Number Number Number Number % % Number Number % Page Page Page NA US$ % US$ US$ US$ US$ US$ % Woodbois LTD Woodbois Limited is a leading producer, processor and manufacturer of sustainable African hardwoods and hardwood products supplied to a global customer base. Woodbois also supplies industrial timber and timber products into Africa, and is a trusted supplier of diverse, internationally sourced sustainable timber and timber products to customers around the world. London, UK; Port Louis, Mauritius; Copenhagen, Denmark. Woodbois manages and operates natural forest concessions in Gabon and Mozambique and has production facilities in both countries. Our trading team is based in Copenhagen with African operations in Gabon and Mozambique, including an extended network of suppliers. Woodbois Limited is a holding company listed on the AIM section of the London Stock Exchange. 467 404 63 13% 87% 13 5 5 1 20% 38% 67 380 85% Letter from Paul Dolan. Governance. Materiality analysis. The current report refers to the financial year from January to December 2022 $23,108,000 32% $4,276,097 $3,015,097 $235,496 $132,945 $7,396 Woodbois pays 27% in Gabon and 35% in Mozambique above the local minimum wage. APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. Page GRI INDICATORS D E S C R I P T I O N GRI 203-1 Infrastructure investments and services supported. Investments per capita (per number of employees). Gabon GRI 302-1 GRI 302-1 GRI 302-1 GRI 302-1 GRI 302-1 GRI 302-1 GRI 302-1 GRI 304-1 GRI 304-1 GRI 304-1 GRI 304-1 GRI 304-1 GRI 304-1 GRI 304-2 GRI 304-2 GRI 304-2 GRI 304-2 GRI 304-2 GRI 304-2 GRI 304-2 GRI 304-2 GRI 304-2 GRI 304-3 GRI 305-1 GRI 305-1 GRI 305-4 GRI 305-4 GRI 306-2 GRI 306-2 GRI 306-2 GRI 402-1 GRI 403-9 GRI 403-10 GRI 403-9 Energy consumption within the organization. Diesel consumption on the ground and in processing facilities. Energy consumption within the organization. Diesel consumption on the ground and in processing facilities. Energy consumption within the organization. Petrol consumption on the ground and in processing facilities. Energy consumption within the organization. Petrol consumption on the ground and in processing facilities. Energy consumption within the organization. Total energy consumption from fuels (diesel, petrol). Energy consumption within the organization. Total energy consumption from fuels (diesel, petrol). Energy intensity. Total energy (fuels and electricity) intensity ratio per volume of logs harvested. Total forest land. Operational forest land (forest management plans). Area with actual harvesting. Area dedicated to conservation. Shared community, conservation and multi-use. Construction of new manufacturing plants. Use of current manufacturing plants. Introduction of non-native or invasive species. Volume of logs harvested. Harvesting intensity ratio per hectare. Volume of Woodbois' produced timber. (veneer, sawn timber) Volume of third party timber traded. (logs, veneer, sawn timber) Volume of timber traded including third party and Woodbois. (logs, veneer, sawn timber) Sawmills providing third-party timber supplies Habitats protected or restored (Mozambique). IUCN Red List species and national conservation list species with habitats in areas affected by operations. Flora. IUCN Red List species and national conservation list species with habitats in areas affected by operations. Fauna. National conservation list species on the concession in Gabon. Flora. National conservation list species on the concession in Gabon. Fauna. Direct (Scope 1) GHG emissions for use of fuels. Other indirect (Scope 1) GHG emissions: on-site biomass incineration. Total GHG emissions intensity. Total GHG emissions intensity. Recovered downgraded wood provided to the community. Lumber donated to the community. Biomass converted into energy. GRI 404-1 Minimum notice periods regarding operational changes. GRI 404-1 GRI 403-10 GRI 403-9 GRI 404-1 GRI 404-1 Work-related injuries (Gabon and Mozambique). Work-related injuries (Gabon and Mozambique). Loss time due to injuries. Work-related fatalities (Gabon and Mozambique). Total hours of training per year (Gabon). Average hours of training per year per employee (Gabon). 73 73 WOODBOIS LTD | Integrated Report 2022 U N I T US$ US$ LTS GJ LTS GJ LTS GJ GJ/m3 ha ha ha ha ha Page Number Number m3 m3/ha m3 m3 m3 Number ha Number Number Number Number tCO2e tCO2e tCO2/m3 logs tCO2/m3 timber Tonnes m3 Tonnes Number in weeks Number Days Number Hours Hours 2 0 2 2 $3,900,000 $9,176 $1,502,240 $54,081 $4,830 $174 $1,507,070 $54,255 0.91 Our facilities. 480,482 407,661 8,108 52,314 73,469 Manufacturing capital. 2 0 59,471 7.33 24,349 12,266 35,245 34 107 13 11 5 8 4,049 118.11 0.07 0.17 500 1,000 2,024 Mozambique: 4 weeks for permanent and fixed-term employees. No period required for seasonal employees. Gabon: 3 months for permanent employees, until end of the month for fixed-term employees. No period required for seasonal employees 117 88 days 0 1,872 4.2 WOODBOIS LTD | Integrated Report 2022APPENDIX & REFERENCESCOVER MESSAGE FROM THE CEO ABOUT THIS REPORT ABOUT WOODBOIS OUR BUSINESS MODEL THE CAPITALS REFERENCES 1. 2. 3. 4. 5. 6. 7. 8. 9. https://www.integratedreporting.org/news/ifrs-foundation-completes-consolidation-with-value-reporting-foundation/ https://opentimberportal.org https://pfbc-cbfp.org/home.html https://www.londonstockexchange.com/news-article/WBI/membership-of-the-european-forest-institute/15154730 https://www.atibt.org/en https://worldforestid.org/ https://www.iwpawood.org/ https://nhla.com/ https://materiality.sasb.org 10. https://www.nielsen.com/eu/en/insights/article/2015/the-sustainability-imperative/ 11. https://climatefocus.com/wp-content/uploads/2022/11/2022RegionalExecSummary_ENG.pdf 12. https://forestdeclaration.org/wp-content/uploads/2022/11/2022RegionalAssessment_ENG.pdf 13. https://www.bloomberg.com/news/articles/2022-11-10/deforestation-surges-in-world-s-no-2-tropical-forest-congo-basin#selection-4419.0-4419.47 14. https://earth.org/global-deforestation-2022/ 15. https://www.fao.org/3/cb9360en/online/cb9360en.html 16. https://www.fao.org/3/cb9360en/online/src/html/key-messages.html 17. https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/How_Forestry_contributes_to_the_AfDB_High_5_Priorities.pdf 18. https://earth.org/deforestation-in-africa 19. https://www.bcg.com/publications/2020/the-staggering-value-of-forests-and-how-to-save-them 20. https://www.un.org/esa/forests/wp-content/uploads/2021/08/Global-Forest-Goals-Report-2021.pdf 21. https://omybag.nl/blogs/articles/carbon-offsetting-vs-carbon-insetting 22. https://sustainabledevelopment.un.org/?menu=1300 23. https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/How_Forestry_contributes_to_the_AfDB_High_5_Priorities.pdf 24. https://docs.wbcsd.org/2019/07/WBCSD_Forest_Sector_SDG_Roadmap.pdf 25. https://wageindicator.org/salary/minimum-wage/mozambique 26. https://blogs.worldbank.org/africacan/gabon-revises-legislation-protect-women-and-increase-their-economic-role 27. Plan Annuel d’Opérations 2022 – AAC 2 – UFG 2 – UFA Lynn-Timber 28. https://link.springer.com/article/10.1007/s40725-016-0044-x 29. https://documents.worldbank.org/curated/en/385081483595950470/111634-WP-PUBLIC-BIODIVERSITY-CONSERVATION-IN-ROAD-PROJECTS.doc 30. OECD. 2021. A global analysis of the cost-efficiency of forest carbon sequestration. 74 WOODBOIS LTD | Integrated Report 2022 APPENDIX & REFERENCES

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