Kompan Environmental Protection

Brno, CZ 2017

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Environmental objectives incorporated in all KOMPAN Production System areas ENERGY PERFORMANCE CERTIFICATE OF THE BUILDING issued according to Act No. 406/2000 Coll., about energy

management, and Directive No. 78/2013 Coll., (document attached) 2016 – Kompan passed Energy audit acc. to Act. no. 406/2000 Coll. (technical evaluation of the effectiveness

of energy utilization in the building) based on the Energy Efficiency Directive 2012/27/EU (document attached)

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KOMPAN Integrated Management System (IMS)

ISO 9001:2008 – Quality Management System (QMS)ISO 14001:2004 – Environmental Management System (EMS)OHSAS 18001:2007 - Safety Management System (SMS)

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Environmental Policy

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The KOMPAN Environmental policy is based on environmental considerations, and forms an integral part of the decisions madeby the Management.

KOMPAN is committed to a continuous improvement of its environmental profile and the prevention of environmental pollutionContinuous improvements within the environmental areas is part of the activities of all departmentsEmployees are constantly encouraged to take part in environmental control, ensuring the further development of both the employees andKOMPAN.

KOMPAN is committed to comply with valid laws and other requirements relevant to environmental protectionWhenever possible, KOMPAN uses wood from FSC-certified sources, and avoids suppliers who provide wood fromquestionable/controversial sources.Consequently, KOMPAN’s products are manufactured from materials and by technologies which have a minimal impact on theenvironment. Materials used by the company are evaluated on the basis of their impact on the environment before they are deemedacceptable for use. KOMPAN strives to meet customer and society demands for anti-pollution products.KOMPAN contributes to, internally as well as externally, the development of environmentally justifiable technologies, materials,management procedures and behavior.KOMPAN constantly ensures that the environment is not impacted in a negative manner by the activities of the company. Furthermore,external companies doing business with KOMPAN are also expected to live up to the environmental policy.

As a part of a continuous improvement process, KOMPAN sets and reviews environmental objectives and targets.KOMPAN carries out continuous environmental audits of its control system, ensuring that environmental policies and goals are constantlyimproved and adapted to society's demands.KOMPAN makes a constant effort to minimise the consumption of resources by informing and training employees about the company'senvironmental impact, and encouraging them to actively participate in the continuous improvement process.

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Environmental Protection

KOMPAN Group has subscribed to the principles of the United Nations Global Compact (www.unglobalcompact.org).

KOMPAN expects all its businesses to comply with the UN principles in addition to the laws of the countries where its

businesses are located.

KOMPAN Suppliers have to sign a contract document called CODE OF CONDUCT as a proof of strong commitment to economic, environmental and socially sustainable development. The procedures used in KOMPAN for the evaluation of suppliers for their Third Party Products Catalogues include supplieraudits over several aspects of the vendor manufacturing processes including environmental policies.

Green LogisticsKOMPAN is committed to improving its environmental performance and the sustainability of its operations as a whole. With a Life Cycle Thinking approach to sustainability, it is necessary to consider the whole supply chain which must invariably includethe logistics network that supports the supply chain. KOMPAN’s main transport provider is willing to share necessaryinformation (like technology used, fuel consumption etc.) as this will help KOMPAN calculate the overal environmental impactthroughout the value chain of the products.

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Environmental ProtectionKOMPAN Instruction “KI024 Environmental aspects evaluation”

Environmental aspects are indentified by EMS working team for relevant objects and equipment, and also processes,

products and services. The head of the working team creates the Register of environmental aspects which includes processes, objects,

equipment, activities, products and services, their environmental aspects and impacts on environment, and a responsible person

who can influence enviromental impact. In case of significant environmental aspect the corrective action is done immediately.

The Register is reviewed once a year.

KOMPAN Instruction “KI075 EMS monitoring and measuring”

This document referes to relevant Chapters of the Czech Standards and defines the environmental impact, minimum period of measurement,

monitored parameter, limit value of monitored parameter, name of document/record of measuring and responsible authority/person.

KOMPAN Instruction “KI096 Rules for scrap handling” refers to the CZ Waste Act 185/2001 Coll. and Decree 381/2001 Coll, Waste

Catalogue and describes responsibilities for single areas, rules for collecting, sorting and disposal of waste materials including special

procedures for “hazardous waste”. Records for each individual waste production are continuously done by the QCI Manager who is also

responsible for annual records and reporting.

Rules for waste handling – this document is valid for all KOMPAN employees and employees of third parties carrying out activities within

KOMPAN premises. The generated waste is sorted and filled into the deployed collection means.

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Certified wood:

Pine Wood 85 % Hard Wood 100 %Robinia Wood 5 %

KOMPAN FSC Certificate

FSC certification provides assurance for the responsible origin of timber products

25 % of total processed volume of wood is FSC certified

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Environmental Protection - InvestmentCNC factory and wood shop – building E1

Plastic and wooden chips exhausted from the CNC factory are separatedand sold to external companies for future recycling.

2008 Exhausting and air filtration system installation (Pohorelice)• investment 4.5 M CZK i.e. 166 000 EUR

2011Re-installation of exhausting in E1 Brno• investment 2 M CZK i.e. 72 600 EUR

2012Extension of exhausting system for CNC5 • investment 1 M CZK i.e. 37.000 EURExtension of sucking for wood drilling• investment 30 000 CZK i.e. 1 200 EUR

2015Installation of a retaining container for elimination of secondary dustiness from exhausting system (CNC and wood shop) • investment 115 000 CZK i.e. 4 260 EUR

2016Extension of sucking for CNC1 wood and plastics chips separation• investment 90 000 CZK i.e. 3 300 EUR

TOTAL: 284 360 EUR

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Environmental Protection - InvestmentRobinia factory – building E2

2015 Exhausting and air filtration system installation• investment 1.973 M CZK i.e. 73 000 EUR

Installation of briquetting press for wooden waste• investment 700 000 CZK i.e. 26 000 EUR

Installation of air humidification system in production hall• investment 1.2 M CZK i.e. 44 000 EUR

2016Installation of 2 wacuum cleaner in raw woodand exhausting system extension• investment 200 000 CZK i.e. 7 400 EUR

2 suction desks installation to reduce dust(working environment improvement)• investment 215 000 CZK i.e. 7 960 EUR

TOTAL: 158 360 EUR

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Waste managementperformed under contract with company SUEZ – the global leader in waste and water management with focus on a more efficient use and protection of resources.

In 2015 more than 90% of waste was either recycled ortransformed into secondary raw materials and created new sources of energy.

Reducing and Recycling of Waste

90.1%

9.9%

WASTE UTILIZATION

recycling incl. alternative usage for heating landfill