December 1, 2010
Dear LP Stakeholders,
At LP, sustainability is not a fad or a distraction. It means doing
business according to the highest ethical standards in a way that
protects the environment, embraces our social responsibilities, and
builds economic prosperity today and for future generations.
I like to think about sustainability simply as leaving things better
than you found them. Some recent highlights of our achievements through
mid-2010:
- We have experienced unprecedented turmoil in the housing market,
directly effecting demand for our building products. With a strong
balance sheet entering the most recent downturn, our approach to
sustaining LP’s long-term economic value for shareholders, employees and
communities had been to practice prudent financial management, and cut costs while continuing to invest capital
in modernization of existing mills and construction of expanded
production capability. In the second quarter of 2008, as the depth and
duration of the housing downturn continued and global recession took
hold, we shifted to a more defensive posture in order to preserve cash
and significantly improve our operating results for 2009 and beyond.
- During this market downturn, we’ve had to make some difficult
choices to protect the long-term viability of our company. An
unfortunate consequence of reduced product demand has been short-term
and temporary layoffs at most mills, and the indefinite curtailment or
closure of a few others.
- In spite of challenging markets, we have made continual progress
in safety and have become the safest company in our industry. In 2007,
LP was named one of the 10 Safest Companies in America.
In October, 2009 APA
awarded LP the distinction of Safest Company in the Industry for 2008.
And we continue to improve.
- LP expanded our Lean Six Sigma (LSS)
program companywide in 2007. With its structured approach to process
improvement and reducing waste, it has helped us make wiser use of
scarce resources, returned millions of dollars in cost savings, and
provided LP people with valuable development opportunities in spite of
constrained market conditions.
- We have certified 100% of our North American facilities to the Sustainable Forestry Initiative.
In March of 2009, LP added dual SFI and PEFC chain-of-custody
certification to eight of our Engineered Wood Products, Siding and
OSB mills.
- LP's Environmental Management System,
unique in our industry, has been implemented in all North American
facilities. We are proud of our record of compliance and efforts to make
strong environmental performance a competitive advantage.
- We are well ahead of schedule to meet our commitment to reduce greenhouse gases by 12% from a 2000 baseline.
- LP’s engineered products from sustainable sources, including our
new Laminated Strand Lumber products, are providing the sustainability
benefits customers are asking for. Our innovative, energy-saving
TechShield® Radiant Barrier products have grown despite housing market
conditions. Our expanded SmartSide® product offering makes highly
durable siding and trim products available in many shapes and sizes,
including a new finger-jointed trim for long-length applications that
makes especially efficient use of renewable natural resources.
Finally, LP’s people continued to do great work in our communities, building relationships and garnering awards in shelter, environmental, and social programs in areas where we work and live.
We invite you to delve in to this site to see what
LP is doing in our efforts to leave things better than we found them at
our workplace, in our communities, on our planet, and for our
shareholders.