Environmental Policy

P.T. JAYA RAYA TRASINDO is committed to being the leader in supply chain management for the building products we distribute. We are committed to providing world-class service to our customers, embracing five fundamental values in all that we do:

Importance of People and Relationships
Integrity
Customer Focus
Speed
Innovation

Integral to providing the best possible service to our customers and our role as a leader in delivering building products and solutions is the belief that our business should contribute to the conservation of natural resources upon which our industry depends. P.T. JAYA RAYA TRASINDO is committed to creating connections between people, products, and markets to conserve, protect and restore our natural resources. As a cornerstone of that commitment, P.T. JAYA RAYA TRASINDO. will pursue a Responsible Wood Purchasing Program to promote the development of markets for environmentally responsible forest products and manage and reduce our industry's environmental impacts. Through our Responsible Wood Purchasing Program, P.T. JAYA RAYA TRASINDO. will deliver on a promise to our customers to deliver high performance. These quality materials do not contribute to the degradation of forests and other natural systems.

PREAMBLE

P.T. JAYA RAYA TRASINDO recognizes that we have a responsibility to the environment and, in particular, a commitment to promote the sustainable management, conservation, protection and restoration of the world's forests. As a leader in the building products sector, P.T. JAYA RAYA TRASINDO is positioned to influence the supply and demand in the global market for wood-based building products and thus contribute to developing environmental solutions that affect responsible forest management. P.T. JAYA RAYA TRASINDO fully supports responsible forest management practices that promote ecosystem sustainability and long-term social and economic benefits.

P.T. JAYA RAYA TRASINDO will achieve this policy through a stepwise approach to responsible purchasing of forest products, believing that this is a pragmatic and workable mechanism. P.T. JAYA RAYA TRASINDO will prefer to do business with legitimately certified suppliers or participants in stepwise programs to obtain legitimate certification in places such as Indonesia, where support from responsible buyers is key to a sustainable market for wood products.

Toward these ends, P.T. JAYA RAYA TRASINDO hereby establishes the following policy commitments:

POLICY

Explanation: Traceability in the forest product supply chain is crucial to assessing whether or not the forest products used were derived through environmentally responsible means. P.T. JAYA RAYA TRASINDO will work with all vendors and associated suppliers to trace the origin of our products. P.T. JAYA RAYA TRASINDO will attempt to determine not just where our current products were purchased but where they were harvested, taking into account the possible necessity for third-party verification.

P.T. JAYA RAYA TRASINDO will require that all vendors and associated suppliers demonstrate compliance with all legal requirements for forest management, harvest, manufacturing and trade, with third party verification in areas/trades we determine as high risk.

Explanation: P.T. JAYA RAYA TRASINDO will ensure no market advantage is realized by entities that circumvent the law and encourage support for forest conservation, protection and environmental law enforcement mechanisms.

P.T. JAYA RAYA TRASINDO will work with our suppliers towards eliminating its purchase of wood, paper and other forest products from high conservation value forests unless these operations are legitimately certified or committed to progressing towards certification within a reasonable time frame and in accordance with a written action plan.

Explanation: P.T. JAYA RAYA TRASINDO intends to expedite the transition away from forest harvesting practices that lead to environmental degradation and will embrace a scientifically legitimate, land-based assessment to identify and appropriately manage forests that contain exceptional ecological value. P.T. JAYA RAYA TRASINDO will remain aware of controversial source areas that internal and external stakeholders may locate.

P.T. JAYA RAYA TRASINDO will give purchasing preference to products from legitimately certified, well-managed forests and those from suppliers who have committed to progress towards legitimate certification.

Explanation: P.T. JAYA RAYA TRASINDO intends to promote the development of markets for environmentally preferable products by supporting certification of best management practices through the purchase of legitimately certified forest products. P.T. JAYA RAYA TRASINDO will encourage sourcing products from forests committed to a time-bound and transparent stepwise process to achieve legitimate certification.

P.T. JAYA RAYA TRASINDO will promote the efficient use of wood, paper and other forest products.

Explanation: P.T. JAYA RAYA TRASINDO intends to contribute to efforts that maximize the use of the entire fibre resource.

P.T. JAYA RAYA TRASINDO will publish and distribute a corporate responsibility report to interested stakeholders, which will detail our progress in implementing this policy and commitment to continuous improvement.

Explanation: P.T. JAYA RAYA TRASINDO will seek to maintain open communications and collaborative relationships with all stakeholders interested in our environmental performance by providing standardized information about our environmental performance on an annual basis. P.T. JAYA RAYA TRASINDO will seek the views of key stakeholders when assessing the implementation of this policy and related programs and in the development of new policies and targets.

*1 In evaluating the legitimacy of certification schemes, P.T. JAYA RAYA TRASINDO will: (i) consult with critical environmental and social organizations for their opinions on acceptable standards for forest management in the applicable region; (ii) consider the compatibility of forest management standards with economic, ecological, and equity criteria; and (iii) seek independent verification of compliance with these standards.