RESTALK ANCIENT FOREST FRIENDLY

AND NEXT GENERATION SOLUTION POLICY

[IMONDAY NOVEMBER 16TH 2020]

Restalk is committed to playing a leadership role in scaling pulping technology and capacity

for next generation solutions production for paper/packaging, that utilizes a feedstock

alternative to Ancient and Endangered Forests. We are also committed to supporting supply

chain solutions that promote responsible environmental and ethical practices in

manufacturing, and the protection of global ecosystems including Ancient and Endangered

Forests.

Restalk recognizes that business leadership and long-term success must consider the

environment. Consequently, Restalk is dedicated to building environmental awareness about

these issues among customers, employees, suppliers and peers.

Conserving Ancient and Endangered Forests and Ecosystems

Restalk provides a clear solution to inputs originating from the world’s Ancient and

i

Endangered Forests , by scaling a low footprint pulping technology designed to process

agricultural fibres into pulp for paper and packaging. As such we are helping to protect the

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world’s remaining Ancient and Endangered Forests including the Canadian and Russian

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Boreal Forests; Coastal Temperate Rainforests ; tropical forests and peat lands of

Indonesia , the Amazon and West Africa, and the protection of biodiversity and ecosystems iv

contained within these forests.

As the issue of Ancient and Endangered Forest fibre in packaging, paper and cellulosic

fabrics gains increasing awareness among global retailers, brands, designers and producers,

Restalk will work with suppliers, Canopy and businesses that have Canopy policies in place

to support the protection of Ancient and Endangered Forests and forward solutions to reduce

demand on the world’s forests. We will prioritize paper making partners who avoid sourcing

from Ancient and Endangered Forests to maximize availability of paper and packaging that

meets the purchasing preferences of Canopy’s policy signatories.

Innovation and Development

Restalk is scaling a process for making pulp that uses hemp fibres and significantly reduced

energy, water and chemical inputs compared to conventional pulping processes and

eliminates effluents. The pulp created brings what was once considered waste back into the

economic cycle and is itself recyclable. This provides Restalk customers with a guarantee

that the company is not sourcing from controversial sources including wood from: illegal

logging , endangered species habitat, logging in contravention of First Nations/indigenous v

peoples’ rights or in contravention of Free, Prior or Informed Consent (FPIC).

Advance Joint Conservation Solutions

Restalk supports the implementation of visionary agreements in key forest areas, such as the

Canadian Boreal Forests, Coastal Temperate Rainforests and Indonesia. We look to Canopy

to identify opportunities to encourage existing and new initiatives that seek to protect the

world’s remaining ancient and endangered forests.

Reduce our Carbon Footprint

Restalk aims to reduce our company’s own greenhouse gas emissions. Where possible will

play a role in mitigating climate change by participating in initiatives that reduce the loss of

biogenic carbon from carbon-rich forests (e.g. ancient old growth temperate rainforests and

forests growing on peat lands) by encouraging the development of products made within a

circular mode of production.

Pollution Prevention

Conventional pulp production is a resource-intensive process that can lead to air and water

emissions that impact overall environmental quality. Restalk is scaling a technology for pulp

production that reduces overall emissions, does not use harmful chemicals that cannot be

recycled in a closed process, minimizes air and water pollution, and maximizes water-use

efficiency.

Internal Paper and Packaging

Restalk is committed to improved efficiency in paper use in its own operations, and to

reducing waste. We are committed to ensuring that any paper and packaging we use does

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not include fibre sourced from Ancient and Endangered Forests . In line with Restalk’s own

business production, we source agricultural residue and/or 100% post recycled content

paper and packaging products. vii

If any of our paper and packaging suppliers are found to be

sourcing from Ancient and Endangered Forests we will engage them to change practices

and/or re-evaluate our relationship with them.

Promote Industry Leadership

Restalk recognizes the benefit of creating environmental awareness amongst its team,

customers, and partners. The company will work to highlight our environmental efforts on our

website, in public communications and social media, and in partnership with stakeholders.

Strong Certification and Forest Management Standards

Restalk fully supports responsible forest management practices that protect biodiversity and

ecosystem integrity, provide long-term social and economic benefits to communities, and

facilitate a stable, sustainable supply chain and climate of operational certainty. If any of our

business partners, clients or suppliers are using forest products we will encourage them to

preference fibre certified to the Forest Stewardship Council (FSC) standard outside of

Ancient and Endangered forests if virgin fibre is needed and until alternatives to virgin wood-

based products are available.

We also support the adoption of Roundtable on Sustainable Biomaterials certification

throughout our entire alternative fibre supply chain.

CEO Benjamin Cassou

Date: 11/16/2020

i

Ancient and endangered forests are defined as intact forest landscape mosaics, naturally rare forest types, forest types that have been made rare due to

human activity, and/or other forests that are ecologically critical for the protection of biological diversity. Ecological components of endangered forests are:

Intact forest landscapes; Remnant forests and restoration cores; Landscape connectivity; Rare forest types; Forests of high species richness; Forests

containing high concentrations of rare and endangered species; Forests of high endemism; Core habitat for focal species; Forests exhibiting rare ecological

and evolutionary phenomena. As a starting point to geographically locate ancient and endangered forests, maps of High Conservation Value Forests (HCVF),

as defined by the Forest Stewardship Council (FSC), and of intact forest landscapes (IFL), can be used and paired with maps of other key ecological values

like the habitat range of key endangered species and forests containing high concentrations of terrestrial carbon and High Carbon Stocks (HCS). (The Wye

River Coalition’s Endangered Forests: High Conservation Value Forests Protection – Guidance for Corporate Commitments. This has been reviewed by

conservation groups, corporations, and scientists such as Dr. Jim Strittholt, President and Executive Director of the Conservation Biology Institute, and has

been adopted by corporations for their forest sourcing policies). Key endangered forests globally are the Canadian and Russian Boreal Forests; Coastal

Temperate Rainforests of British Columbia, Alaska and Chile; Tropical forests and peat lands of Indonesia, the Amazon and West Africa. For more information

on the definitions of ancient and endangered forests, please go to: http://canopyplanet.org/solutions/ancient-forest-friendly/the-science-behind-the-ancient-

forest-friendly-brand/

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Protection of Boreal Forests where the largest remaining tracts of forests are located worldwide is critical. Canada’s Boreal Forest contains the largest

source of unfrozen freshwater world-wide and are part of the world’s largest terrestrial carbon sink – equivalent to 26 years worth of global fossil fuel use.

Canopy is committed to working collaboratively on the establishment of new protected areas, the protection of endangered species and the implementation of

sustainable harvesting in Canada’s Boreal Forest.iii

Conservation solutions are now finalized in the Great Bear Rainforest, located in coastal temperate rainforests that originally covered 0.2% of the planet,

and where now less than 25% of the original forests remain. On February 1st, 2016 the Government of British Columbia, First Nations, environmental

organizations and the forest industry announced 38% protection in the Great Bear Rainforest and an ecosystem-based management approach that will see

85% of this region off limits to logging. Provided these agreements hold – sustainable sourcing has been accomplished in this ancient and endangered forest.

We encourage ongoing verification of this through renewal of Forest Stewardship Council certification. British Columbia’s last stands of coastal temperate

rainforests on Vancouver Island are not currently afforded the same future. We look forward to supporting and encouraging protection for landscapes of hope

on BC’s Vancouver Island.

Indonesia experiences the second highest rate of deforestation among tropical countries, with the island of Sumatra standing out due to the intensive forest iv

clearing that has resulted in the conversion of 70% of the island's forested area (FAO Forest Assessment 2010; Margono, B.A. et al. 2012)

Legal forest management is management that complies with all applicable international, national, and local laws, including environmental, forestry, and civil v

rights laws and treaties.

vi

https://canopyplanet.org/tools/forestmapper/

vii

See Canopy’s Paper Steps: http://canopyplanet.org/resources/the-paper-steps/