Supplier Qualification At CHEP, we continuously strive to provide our customers with the best products and services. We can achieve this by partnering with strategic suppliers that can deliver the best overall value to our business. With that in mind we have developed very comprehensive guidelines for qualifying suppliers and once these guidelines are met, a potential supplier can be classified as a preferred partner for CHEP. Some important components of our supplier qualification, such as with Lumber Suppliers, focuses on the lumber we use to build and repair our pallets. Warranting specific mention in relation to lumber supplier qualification, CHEP will not seek to source forest products from: Forests or forest product suppliers where CHEP is not confident that the supplier is complying with all relevant national legislation relating to the trade in forest products. High-conservation-value forests where these are recognized nationally or regionally, unless these forests are progressing towards credible forest certification in a transparent and timely manner. Protected areas, parks or similar areas where harvesting operations are not complementary to responsible forest management. Forests which are in areas of armed conflict or civil unrest where there is a direct relationship between the forest products trade and the funding of such conflicts. To ensure these goals are achieved CHEP will: Qualify and monitor suppliers of lumber. Work to improve the level of compliance against this policy. Another critical component of our strategy is the capital equipment used at CHEP plants for the repair and manufacturing of CHEP pallets as well as the services utilized to service and manage them. Before any pooling equipment is sent to our customers we make sure that they meet or exceed quality standards; this requires high quality equipment and expert services from our supplier base. Our supplier qualification process utilizes industry best practices as well as internally developed tools with the purpose of not only identifying potential suppliers but also certifying that they meet our very strict guidelines. At CHEP we believe that only through strong partnerships, built on trust, integrity and mutual respect, can we mutually succeed.