ENVIRONMENTALLY SUSTAINABLE PRODUCTS AND PRODUCTION PROCESSES 1. All Zanat’s products are made of natural, renewable, and sustainably sourced materials. Our wood comes from sustainably managed sources, located close to our company. Bosnia has one of the most abundant wood resources in Europe with 64% of its territory covered by forests. We purchase wood from sustainably managed forests, but we also buy much of our timber—such as walnut and cherry logs—from privately owned orchards. The use of old fruit-bearing trees, which are regularly planted on existing agricultural land, not only helps reduce carbon emissions, but reduces the impact of logging on indigenous forests, whose preservation is essential to biodiversity. When we use other materials, they must be natural and sustainable. We use natural leather, fabrics, wool and other materials sourced from companies that meet European environmental standards. 2. For every single tree that is cut to make a Zanat product, we are committed to plant three new ones. In 2021, we decided that we can and ought to do more than just source trees from sustainable sources. We partnered up with a local forestry management company in our town to contribute to their reforestation activities. They produce more tree seedling materials than they can plant and we are mobilizing volunteers from companies, organizations and clubs to take part in reforestation. This spring we are replanting a forest destroyed by fire. Every year we will publish figures on the approximate number of trees we used (based on average size) and the number of trees we planted. 3. We make lifelong products because a product’s longevity is a key determinant of its environmental impact. We aim to design and produce objects that can last a lifetime or even become a heirloom piece, like numerous pieces of traditional furniture produced by the Nikšić family have already become. Zanat is decidedly not driven by trends. Our focus is on timeless values: extraordinary design, quality natural materials and exceptional craftsmanship. 4. We strive to minimize waste that stems from production and product packaging. In our factory there is no wood waste. Smaller pieces of wood are utilized to make accessories and pieces of furniture like the Ombra tables. Scrap wood and sawdust is burnt in a special chamber to produce energy that is used to kiln-dry raw timber and heat the company during winter months. When it comes to product packaging, Zanat uses only biodegradable materials for accessory packaging, and we plan to eliminate any non-degradable packaging materials by 2022. 5. We contribute to other environmental causes in our community: Zanat actively contributed to endemic trout species conservation efforts in the Neretva river. Members of the Nikšić family have supported efforts to designate no fishing and catch and release zones. We have also supported efforts to prevent the construction of hydroelectric power plans, which would have a significant effect on environment and indigenous sh species. Zanat financially supported a sh hatchery which was the first one to successfully hatch and raise the endemic soft-lip trout.