We Produce by Adding Positive Value to the Environment We Make Progress by Contributing to Our Stakeholders Appendix several benefits, including waste reduction, lower greenhouse gas emissions, and preservation of natural resources. Ensuring our actions align with sustainability principles is crucial for fostering an environmentally friendly wood industry. Use of Residues as Raw Materials It is of great importance to highlight our practices within the framework of circular economy and responsible resource management. One of the important steps we have taken within the scope of our sustainable production process is to produce chipboard from post-consumer wood and all wood waste generated in our production lines. Our chipboard product contains 30% residues. Chipboard, a primary raw material produced from recycled materials, comes from two sources. One is waste generated at our wood-based board facilities. These consist of MDF/damaged chipboard and offcuts. The other comes from post-consumer furniture, doors, worktops, etc. These are collected and meticulously separated by external companies having relevant permits as part of the municipal waste management system. These wastes are then sent to the Silva Polski Recycling, a part of the Kronospan group, and returned as ready-made raw materials sourced from post- consumer wood. At Kronospan Mielec, we contribute to sustainable practices by adopting the appropriate management approach of waste materials. It is crucial to highlight our practices within the circular economy and responsible resource management. Our timber savings have increased over the years with residues being used as raw materials. Amount of Saving Timber (tonne) 2022-2023 304,527 2021-2022 227,174 2020-2021 133,131 304,527 tonnes timber savings Use of Other Waste Recycling of Ash and Slag Waste At Kronospan Mielec, we recycle ash and slag waste as part of the circular economy. Among the waste generated at our facility, slag accounts for the largest volume. Our emphasis is therefore on the responsible reuse of this waste. We also supply our slag and ash waste to authorised buyers who reprocess these to rehabilitate degraded areas. This waste category, including slags, bottom ashes, and boiler dust produced in our boilers and dryers, is recycled to be used in the reprocessing of the former sand pit area. We transfer this waste to an external entity in accordance with waste regulations and the BDO tool. This area, which is filled with waste, will be used as an agricultural area after the recultivation task is completed. In addition to all these activities, we provide training in environmental protection to newly hired employees on their first day at work. This training, provided by the Environmental Protection Manager and our Environmental Protection Specialist, emphasises the proper separation of waste and contributes to waste management awareness. The number of people receiving training each year matches our workforce. We raise awareness not only among our employees but also among our suppliers about waste management. Hence, our suppliers are expected to pack the materials into OSB boards when they place orders. Our environmental unit, consisting of an environmental protection manager and an environmental protection specialist, deals with waste. While we report once a year in line with national regulations, we also prepare internal reports monthly. We Produce by Adding Positive Value to the Environment 77