Sustainability CIRCULAR ECONOMY continued TIMBER Timber is a renewable resource and plays an important role in offsetting greenhouse gas emissions as it captures carbon naturally. Overlogging, illegal deforestation and unethical practices in harvesting and transportation cause harm to people and the environment. At Dunelm all products must meet minimum legal requirements and suppliers must provide full transparency of source, together with supporting documentation. Suppliers must also work progressively towards Dunelm’s ‘More Responsibly Sourced Timber’ standard. Vulnerable, endangered and critically endangered species may not be used, and timber from former forest land may only be used if established before 1994. We assess our supp calyhinbaeocosd n untry of origin, species and governance standards to establish the risk of harm to people’s health, safety and wellbeing, and of illegal deforestation to the environment. To meet Dunelm’s ‘More Responsibly Sourced Timber’ standard, all Dunelm own brand products must either be certified to timber We work with an independent team of experts to programmes, such as Forest Stewardship Council collect, review and risk assess all suppliers of own (FSC) or Programme for Endorsement of Forest brand products containing timber and require Certification (PEFC) or the supply chain must be each supply chain to be assessed at least once located in a country with a low inherent risk rating. a year, or more frequently if the structure of the supply chain changes. We provide training and guidance via a third party to all our suppliers on the implementation of this policy and how to reduce the risk of non-compliance. We will measure and report on supplier performance and compliance annually against our policy, which is available on our corporate website. POLICY Our current targets are for 100% of timber to come from legally harvested sources, and for at least 50% of all timber inour own brand products to comply with our ‘More Responsibly Sourced Timber’ standard by 2025. In FY21, 86% of timber products assessed against the European Union Timber Regulation had no specified risk and we re-sourced supply routes where risk was identified. At FY21, around 10% of our timber supply chains qualified as being ‘More Responsibly Sourced’. Around 100 of our products are fully certified to FSC standards. 60 DUNELM GROUP PLCANNUAL REPORT & ACCOUNTS 2021