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SUPPLY CHAIN TRANSPARENCY

CALIFORNIA TRANSPARENCY IN SUPPLY CHAINS ACT OF 2010 (SENATE BILL 657) DISCLOSURE

On January 1, 2012, the California Transparency in Supply Chains Act of 2010 (the “Act”) went into effect in the State of California. This law was designed to increase the amount of information made available by manufacturers and retail sellers regarding their efforts (if any) to address the issue of slavery and human trafficking thereby allowing consumers to make more informed choices regarding the products they buy and the companies they choose to support.

Mendocino Forest Products Company, LLC, and its affiliated companies (together “Mendocino Forest Products”), is a manufacturer and distributor of redwood and Douglas-fir lumber.  It provides a unique mix of products for outdoor living and home improvement projects, including materials that are obtained from environmentally responsible sources.  Located in Northern California, Mendocino Forest Products is committed to sourcing and manufacturing environmentally responsible products whenever possible. The company maintains chain-of-custody certification for its sawmill and distribution operations through the Forest Stewardship Council® (“FSC®”), the leading certification standard for healthy, well-managed forests worldwide. FSC® certification ensures that products come from responsibly managed forests that provide environmental, social and economic benefits.

Mendocino Forest Products’ supply chain involves acquiring logs, lumber and other materials necessary for the operations of its manufacturing facilities. In Mendocino Forest Products’ experience, this type of supply chain is not inherently susceptible to violations of slavery and human trafficking laws.  Notwithstanding this limited risk, Mendocino Forest Products recognizes and respects all laws designed to protect its and its suppliers’ employees, including, but not limited to, those laws that require it and its suppliers to treat workers fairly, to provide a safe and to protect the quality of the workers’ work environment.

  1. All of Mendocino Forest Products’ suppliers are expected to operate their businesses consistent with all laws, which may include, among others, laws that require them to treat workers fairly and to provide workers with a safe and healthy work environment.  For these reasons and because this type of supply chain is not inherently susceptible to violations of slavery and human trafficking laws, at this time, Mendocino Forest Products does not verify its supply chain to evaluate and address risks of human trafficking and slavery.
  2. Mendocino Forest Products relies on members of its supply chain to self-audit, as represented in their own disclosures required under the Act and/or their own codes of conduct. Mendocino Forest Products has the right to terminate its relationships with its suppliers if, for example, the supplier fails to comply with any law governing its business operations, including but not limited to, laws that require them to treat workers fairly, and to provide workers with a safe and healthy work environment. For these reasons and because this type of supply chain is not inherently susceptible to violations of slavery and human trafficking laws, at this time, Mendocino Forest Products does not audit its suppliers to evaluate compliance with the laws regarding slavery and human trafficking of the country or countries in which they are doing business.
  3. Mendocino Forest Products has the right to terminate its relationships with its suppliers if, for example, the supplier fails to comply with any law governing its business operations, including but not limited to, laws that require them to treat workers fairly, and to provide workers with a safe and healthy work environment.   For these reasons and because this type of supply chain is not inherently susceptible to violations of slavery and human trafficking laws, at this time, Mendocino Forest Products does not require members of its supply chain to certify that materials provided to Mendocino Forest Products comply with the laws regarding slavery and human trafficking of the country or countries in which they are doing business.
  4. Mendocino Forest Products maintains its rights against any supplier found to be in violation of applicable laws, including terminating its contracts with members of its supply chain without cause.

Mendocino Forest Products also maintains accountability procedures for and demands commitment to its standards for business ethics, integrity and values by each of its employees and relies on its robust Code of Conduct to set forth expectations for every employee.  During orientation, each and every employee is provided with a copy of its Mendocino Forest Products’ Code of Conduct, and each is required to certify that they adhere to the Code of Conduct.  Any employee who violates the spirit or letter of the Mendocino Forest Products’ Code of Conduct is subject to disciplinary action up to and including termination of his/her employment.

Mendocino Forest Products takes seriously all potential legal and Code of Conduct violations, and encourages all persons subject to its Code of Conduct to preserve Mendocino Forest Products’ standards for business ethics and integrity by reporting suspected Code of Conduct violations and submitting comments, complaints and concerns regarding safety, human resources, and ethics to their employer, supervisors and/or human resources representative.