Supply Base Report: Magic Grove LLC

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Supply Base Report:

Magic Grove LLC

Main (Initial) Audit

www.sbp-cert.org

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C o m p l e t e d i n a c c o r d a n c e w i t h t h e S u p p l y B a s e R e p o r t T e m p l a t e V e r s i o n 1 . 4

For further information on the SBP Framework and to view the full set of documentation see www.sbp-cert.org

Document history

Version 1.0: published 26 March 2015 Version 1.1 published 22 February 2016 Version 1.2 published 23 June 2016

Version 1.3 published 14 January 2019; re-published 3 April 2020 Version 1.4 published 22 October 2020

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1 Overview

Producer name: Magic Grove LLC

Producer address: Marshal Govorov street, 198097 St. Petersburg, Russia

SBP Certificate Code: SBP-09-14

Geographic position: 59.884659, 30.277878

Primary contact: Alexey Litvinov, +7-921-938-06-49,[email protected]

Company website: http://fuelchips.ru/

Date report finalised: 25 Jun 2021

Close of last CB audit: 05 Sep 2021

Name of CB: Forest Certification LLC

SBP Standard(s) used: SBP Standard 2: Verification of SBP-compliant Feedstock, SBP Standard 4: Chain of Custody, SBP Standard 5: Collection and Communication of Data Instruction, Instruction Document 5E: Collection and Communication of Energy and Carbon Data 1.4

Weblink to Standard(s) used: https://sbp-cert.org/documents/standards-documents/standards

SBP Endorsed Regional Risk Assessment: Not applicable

Weblink to SBR on Company website: http://fuelchips.ru/nashi-partnyoryi/resursnaya-baza-ooo-medzhik- grouv

Indicate how the current evaluation fits within the cycle of Supply Base Evaluations Main (Initial)

Evaluation

First Surveillance

Second Surveillance

Third Surveillance

Fourth

Surveillance Re-assessment

☒ ☐ ☐ ☐ ☐ ☐

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2 Description of the Supply Base 2.1 General description

Feedstock types: Primary

Includes Supply Base evaluation (SBE): No

Feedstock origin (countries): Russia

2.2 Description of countries included in the Supply Base

Country:Russia

Area/Region: Leningradskaya oblast,Gatchinskiy district,Lugskiy district

Exclusions: No

T h e s u p p l y b a s e o f w o o d r a w m a t e r i a l s f o r t h e p r o d u c t i o n p r o c e s s e s o f L L C " M a g i c G r o v e " i s l o c a t e d o n t h e t e r r i t o r y o f t h e N o r t h - W e s t F e d e r a l D i s t r i c t o f t h e R u s s i a n F e d e r a t i o n , i n p a r t i c u l a r - t h e L e n i n g r a d r e g i o n , L u g a d i s t r i c t ( L u g a f o r e s t r y ) a n d G a t c h i n s k y d i s t r i c t ( G a t c h i n s k o e f o r e s t r y ) .

T h e t o t a l a r e a o f f o r e s t l a n d s i n t h e L e n i n g r a d R e g i o n i s 5 8 9 8 t h o u s a n d h a , i n c l u d i n g f o r e s t l a n d s - 4 8 2 7 t h o u s a n d h a , o f w h i c h 4 6 6 7 t h o u s a n d h a a r e c o v e r e d w i t h f o r e s t v e g e t a t i o n . F o r e s t c o v e r - 5 5 . 6 % ; t h e t o t a l s t a n d i n g t i m b e r s t o c k i s 8 2 5 m i l l i o n m 3 . T h e s h a r e o f b u r n t a r e a s i n t h e t o t a l f o r e s t a r e a i s 0 . 1 2 2 % , t h e s h a r e o f f e l l i n g i s 0 . 9 3 % . T h e L e n i n g r a d R e g i o n i s o n e o f t h e m a i n z o n e s f o r t h e d e v e l o p m e n t o f l o g g i n g , w o o d w o r k i n g a n d t i m b e r e x p o r t i n t h e n o r t h w e s t o f R u s s i a . T h e a r e a o f t h e r e g i o n ' s f o r e s t s i n e x p l o i t e d u s e i s 3 1 0 9 . 4 t h o u s a n d h e c t a r e s . T h e b a s i s o f f o r e s t s i s m a d e u p o f c o n i f e r o u s s t a n d s , a m o n g w h i c h p i n e f o r e s t s p r e d o m i n a t e , o c c u p y i n g 4 0 % o f t h e f o r e s t e d a r e a . A b o u t a t h i r d o f t h e f o r e s t s a r e s p r u c e f o r e s t s , a q u a r t e r a r e b i r c h f o r e s t s . T h e a v e r a g e a g e o f t h e p l a n t i n g s i s a l i t t l e o v e r 6 0 y e a r s , a n d t h e a v e r a g e s t o c k p e r 1 h e c t a r e o f t h e o p e r a t i o n a l f u n d i s 2 4 6 m 3 .

T h e l a n d s o f t h e f o r e s t f u n d o f R u s s i a a r e i n f e d e r a l o w n e r s h i p a n d c o n s i s t o f f o r e s t r i e s a n d f o r e s t p a r k s .

T h e L u g a f o r e s t r y o f t h e L e n i n g r a d R e g i o n ( h e r e i n a f t e r r e f e r r e d t o a s t h e f o r e s t r y ) i s l o c a t e d i n t h e s o u t h e r n p a r t o f t h e L e n i n g r a d R e g i o n o n t h e t e r r i t o r y o f t h e L u g a M u n i c i p a l D i s t r i c t . T h e t o t a l a r e a o f t h e f o r e s t r y i s 3 7 0 , 4 2 4 . 0 h a . T h e f o r e s t r y i s d o m i n a t e d b y c o m m e r c i a l f o r e s t s ( 5 6 % ) . P r o t e c t i v e f o r e s t s ( 4 4 % ) a r e r e p r e s e n t e d b y p r o t e c t i v e f o r e s t b e l t s ( 5 % ) ; f o r e s t s l o c a t e d i n w a t e r p r o t e c t i o n z o n e s ( 1 % ) ; f o r e s t s , f o r b i d d e n f o r e s t b e l t s , ( 1 4 % ) ; s p a w n i n g b e l t s ( 8 % ) .

G a t c h i n s k o e f o r e s t r y o f t h e L e n i n g r a d R e g i o n i s l o c a t e d i n t h e s o u t h w e s t e r n p a r t o f t h e L e n i n g r a d r e g i o n o n t h e t e r r i t o r y o f t h e m u n i c i p a l f o r m a t i o n G a t c h i n s k y M u n i c i p a l D i s t r i c t . T h e t o t a l a r e a o f t h e f o r e s t r y i s 1 8 6 9 9 1 h e c t a r e s . . T h e f o r e s t r y i s d o m i n a t e d b y p r o t e c t i v e f o r e s t s ( 6 4 % ) , p r o d u c t i o n f o r e s t s m a k e u p 3 6 % . T h e f o r e s t r y i n c l u d e s a s p e c i a l l y p r o t e c t e d n a t u r a l a r e a ( h e r e i n a f t e r - S P N A ) o f f e d e r a l s i g n i f i c a n c e , 4 S P N A o f r e g i o n a l s i g n i f i c a n c e a n d 3 p r o j e c t e d S P N A .

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T h e r e s o u r c e b a s e o f L L C " M a g i c G r o v e " i n c l u d e s t h e l e a s e a r e a s o f o n e F S C c e r t i f i e d s u p p l i e r a n d o n e n o n - c e r t i f i e d s u p p l i e r .

L L C " M a g i c G r o v e " i s e n g a g e d i n t h e p r o d u c t i o n o f S B P - c o n t r o l l e d b i o m a s s ( f u e l c h i p s ) f r o m w o o d r a w m a t e r i a l s a n d w a s t e f o r c o n t i n u o u s c u t - t o - l e n g t h h a r v e s t i n g a n d f o r h a r v e s t i n g s m a l l - s i z e d t i m b e r . C h i p p i n g o p e r a t i o n s a r e c a r r i e d o u t e i t h e r " o n t h e a l l o t m e n t ( n e a r t h e s t u m p ) " o r " i n t h e u p p e r w a r e h o u s e ( n e a r t h e r o a d ) " . F o r t h e p r o d u c t i o n o f S B P p r o d u c t s , c o n i f e r o u s a n d d e c i d u o u s s p e c i e s a r e u s e d - p i n e , s p r u c e , a s p e n , b i r c h , a l d e r .

2.3 Actions taken to promote certification amongst feedstock supplier

T h e a r e a o f f o r e s t s i n R u s s i a i s a b o u t 8 0 9 m i l l i o n h e c t a r e s ( 8 . 0 9 m i l l i o n k m ² ) , o r a b o u t 2 0 % o f a l l f o r e s t s i n t h e w o r l d ( i n t e r m s o f f o r e s t a r e a , R u s s i a r a n k s f i r s t i n t h e w o r l d ) . F o r e s t s c o v e r 4 6 . 6 % o f t h e t e r r i t o r y o f R u s s i a a n d h a v e a s i g n i f i c a n t i m p a c t o n t h e f o r m a t i o n o f i t s c l i m a t e . M o s t o f t h e c o u n t r y ' s f o r e s t s a r e o c c u p i e d b y c o n i f e r s . A b o u t 5 0 % o f t h e a r e a o f c o n i f e r s i s r e p r e s e n t e d b y m a t u r e a n d o v e r m a t u r e s t a n d s .

T h e l a n d s o f t h e f o r e s t f u n d o f R u s s i a a r e i n f e d e r a l o w n e r s h i p a n d c o n s i s t o f f o r e s t r i e s a n d f o r e s t p a r k s . F o r t h e p u r p o s e o f i n d u s t r i a l u s e o f f o r e s t s ( f i r s t o f a l l , h a r v e s t i n g o f f o r e s t r e s o u r c e s ) , f o r e s t p l o t s c a n b e l e a s e d . A t t h e s a m e t i m e , t h e t e n a n t i s o b l i g e d t o i n d e p e n d e n t l y e n s u r e s a n i t a r y a n d f i r e p r e v e n t i o n o f t h e f o r e s t , a s w e l l a s m e a s u r e s f o r t h e r e p r o d u c t i o n o f f o r e s t s .

A c c o r d i n g t o t h e i r i n t e n d e d p u r p o s e , f o r e s t s l o c a t e d o n t h e l a n d s o f t h e f o r e s t f u n d a r e s u b d i v i d e d i n t o p r o t e c t i v e ( h a v i n g a s p e c i a l e c o l o g i c a l v a l u e , o r s c i e n t i f i c o r h i s t o r i c a l v a l u e , f o r e s t b e l t s a l o n g t h e r o a d s ) , o p e r a t i o n a l a n d r e s e r v e .

2.4 Quantification of the Supply Base

Supply Base

a. Total Supply Base area (million ha): 0,08

b. Tenure by type (million ha):0.08 (Privately owned) c. Forest by type (million ha):0.08 (Boreal)

d. Forest by management type (million ha):0.08 (Managed natural) e. Certified forest by scheme (million ha):0.03 (FSC)

Describe the harvesting type which best describes how your material is sourced: Clearcutting Explanation: Input material is fuelwood, felling residues, fragments of trunks, branches and other logging waste.

Was the forest in the Supply Base managed for a purpose other than for energy markets? Yes - Majority

Explanation: The lease agreement for the forest area was concluded for the purpose of harvesting wood.

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For the forests in the Supply Base, is there an intention to retain, restock or encourage natural regeneration within 5 years of felling? Yes - Majority

Explanation: The lease agreement for the forest area provides for the obligation of the Lessee to carry out reforestation work.

Was the feedstock used in the biomass removed from a forest as part of a pest/disease control measure or a salvage operation? No

Explanation: The company does not use raw materials obtained as a result of pest control measures and during rescue operations

Feedstock

Reporting period from: 01 Jan 2021

Reporting period to: 31 May 2021

a. Total volume of Feedstock: 1-200,000 m3 b. Volume of primary feedstock: 1-200,000 m3

c. List percentage of primary feedstock, by the following categories.

- Certified to an SBP-approved Forest Management Scheme: 1% - 19%

- Not certified to an SBP-approved Forest Management Scheme: 80% - 100%

d. List of all the species in primary feedstock, including scientific name: Pinus sylvestris (pine);

Picea abies (spruce); Betula pendula (birch); Populus tremula (aspen); Alnus glutinosa (alder black);

Alnus incana (alder gray);

e. Is any of the feedstock used likely to have come from protected or threatened species? No

- Name of species: N/A

- Biomass proportion, by weight, that is likely to be composed of that species (%): N/A

f. Hardwood (i.e. broadleaf trees): specify proportion of biomass from (%): 5,00 g. Softwood (i.e. coniferous trees): specify proportion of biomass from (%): 95,00 h. Proportion of biomass composed of or derived from saw logs (%): 0,00

i. Specify the local regulations or industry standards that define saw logs: GOST 9463-88 j. Roundwood from final fellings from forests with > 40 yr rotation times - Average % volume of

fellings delivered to BP (%): N/A

k. Volume of primary feedstock from primary forest: 100 %

l. List percentage of primary feedstock from primary forest, by the following categories. Subdivide by SBP-approved Forest Management Schemes:

- Primary feedstock from primary forest certified to an SBP-approved Forest Management

Scheme: 1% - 19%

- Primary feedstock from primary forest not certified to an SBP-approved Forest Management

Scheme: 0%

m. Volume of secondary feedstock: 0 N/A

- Physical form of the feedstock: N/A

n. Volume of tertiary feedstock: 0 N/A

- Physical form of the feedstock: N/A

Proportion of feedstock sourced per type of claim during the reporting period

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Feedstock type Sourced by using Supply Base Evaluation (SBE) %

FSC % PEFC % SFI %

Primary 20,00 80,00 0,00 0,00

Secondary 0,00 0,00 0,00 0,00

Tertiary 0,00 0,00 0,00 0,00

Other 0,00 0,00 0,00 0,00

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3 Requirement for a Supply Base Evaluation

Is Supply Base Evaluation (SBE) is completed? No

N/A

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4 Supply Base Evaluation

4.1 Scope

Feedstock types included in SBE: N/A

SBP-endorsed Regional Risk Assessments used: Not applicable

List of countries and regions included in the SBE:

Country: N/A

Indicator with specified risk in the risk assessment used:

N/A

Specific risk description:

4.2 Justification

N/A

4.3 Results of risk assessment and Supplier Verification Programme

N/A

4.4 Conclusion

N/A

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5 Supply Base Evaluation process

N/A

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6 Stakeholder consultation

N/A

6.1 Response to stakeholder comments

N/A

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7 Mitigation measures

7.1 Mitigation measures

N/A

7.2 Monitoring and outcomes

N/A

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8 Detailed findings for indicators

Detailed findings for each Indicator are given in Annex 1 in case the Regional Risk Assessment (RRA) is not used.

Is RRA used? N/A

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9 Review of report

9.1 Peer review

N/A

9.2 Public or additional reviews

N/A

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10 Approval of report

Approval of Supply Base Report by senior management

Report Prepared by:

Molev Aleksandr manager 24 Jun 2021

Name Title Date

The undersigned persons confirm that I/we are members of the organisation’s senior management and do hereby affirm that the contents of this evaluation report were duly acknowledged by senior management as being accurate prior to approval and finalisation of the report.

Report approved by:

Litvinov Aleksey General director 25 Jun 2021

Name Title Date

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Annex 1: Detailed findings for Supply Base Evaluation indicators

N/A

Supply Base Report: Magic Grove LLC