LP is a trademark of Louisiana-Pacific Corporation

LP’s EMS StoryOctober 3, 2003

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• Established January 5, 1973

• Based in Portland, Oregon

• One of the largest building products producers in North America

• Operates manufacturing facilities in:– United States– 5 Canadian Provinces– Chile

• Manage nearly 10 million acres of timberland • 2002 net sales: $2 billion

About LP...

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Pre-1993: “The Environmental Dark Ages”

• Strong “production” orientation

• Described ourselves as environmental leaders

– no systematic approach

– no clearly articulated vision• Government actions

– Clean Air Act Consent Decree (16 Facilities)– Suspension and Debarment Compliance

Agreement– District of Colorado Plea Agreement

• Significant fines and pollution control requirements

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Post-1993: “The Age of Enlightenment”

• LP leadership overhaul• Environmental improvement - a management priority• Formation of Corporate Environmental Department

(1993)• Development of Policy on Protection of the Environment

(1994)• Changing culture and expectations• EMS implementation and integration• Environmental awareness• Enforcing high standards• EMS teams and involvement of all employees

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Building LP’s EMS Through Training • Commitment to an enriched business environment

– Change Process and Communication (13,000+ trained) – Business Process Improvement (3,000+ trained) – Supervisory Training (1700+ trained)

• Basic environmental awareness and proficiencies – Compliance - A Personal Commitment (15,000+ trained)– Managing for Compliance Performance for Supervisors and Managers

(650+ trained)– Environmental Training Completed in 2002 (20,314 person hours of

training)

• Development of EMS proficiency– Policy on Protection of the Environment (15,000+ trained)– EMS Rollout Training (all employees in most facilities)

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Examples of Tools Used to Facilitate EMS Success

• Environmental Handbook for Employees

• Manager’s Environmental Handbook

• EMS Rollout Manual

• EMS Implementation Team Training Materials

• Facility and Corporate SOPs

• LP On-Target Assessment Program

• EMS Assessment Checklist

• On-line Environmental Databases

• Environmental Metrics and Goals

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Examples of Long-term Benefits & Results

• End of Corporate-Wide Penalty Programs

- Clean Air Act Consent Decree - Ended November 2001- Suspension and Debarment Compliance Agreement - Ended in June 2002 (ten

months early)- District of Colorado Plea Agreement/Probation - Ended in January 2003 (four

months early)

• First Green Permit in the US

• EPA’s Performance Track

• Clean Texas Program

• EPA ClimateWise Achievement Award

• EPA Energy Star Award

• California Waste Reduction Award

• EPA WasteWise Program Champion for 2002

EnvironmentalMetrics and Goals

RawData

InterpretedData

Status

1. Hours of Environmental Training

Goal = 2 hours per employee per year

20,314 personhours

2.26 hours per employee Exceeded goal

2. Notices of Violation

Goal = <10 (preferably 0)

9 9 Exceeded goal

3. Disposal to Landfill

Goal = 5% reduction per employee hours worked

190.2 millionpounds

49% reduction(11.10 lbs. per employee

hours worked)Exceeded goal

4. Environmentally-Related Cost Savings

Goal = As much as possible

$21.5 million$1.25

per employee hoursworked

Exceeded goal

5. Corrective Action Plans Completed

Goal = 80% completion of CAPs initiated byOctober 31st

23 open144 closed 86% completion Exceeded goal

6. Waste Minimization Projects Implemented

Goal = 15 projects started

64 64 Exceeded goal

Corporate-Wide Environmental Metrics and Goals Jan-Dec 2002

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MOVING FORWARD – THE GLOBAL EMS INITIATIVE

• Deep integration of EMS into the organization’s bottom-line financials

• Collection and transfer of good EMS resources and knowledge

• Contributors, interested parties, partners

• How organizations can become involved