Risk Management Systems

We have a disciplined process for setting companywide strategic direction for environmental, health and safety, social and public policy matters. This direction-setting process guides company behavior on market-driven issues such as climate change and endangered forests.

Supporting the direction-setting process are systems that give our senior management team information to make good decisions and effectively implement them.

• Our Systems
• Our Management Structures
• Environment, Health and Safety Policies
• Internal Controls

OUR SYSTEMS

Our primary systems for evaluating potential sustainability risks and implementing leadership direction are:

• Internal audits, which are conducted to ensure environmental compliance with government regulations, voluntary standards and company policies.
• Environmental management systems, which provide a disciplined approach to implementing our environmental policy and evaluating performance results.
• The Weyerhaeuser Safety Strategy, Safe from the Start, which lays out the framework of our safety strategy and the five elements of world-class safety.
• The Safety and Health Information Management System, which enables us to report incidents. With the resulting investigation information, we track the progress of corrective actions, analyze company trends, and identify potential future risks in health and safety performance.
• The Health and Safety Exchange, which assesses a facility's ability to identify, manage and control health and safety risks.

OUR MANAGEMENT STRUCTURES

All managers share responsibility for implementing policy on environmental and social matters. They are supported by our management structures:

• Staff professionals in health, safety and environment, as well as public and regulatory affairs, who provide technical expertise to evaluate our performance; identify opportunities, risks and external trends that could affect the company; and provide recommendations to establish optimum performance.
• Cross-functional issue-management teams that recommend strategy and manage our response to environmental, health and safety, sustainability and public policy issues.
• Our senior management team reviews sustainability performance annually, approves company policies or positions and reviews effectiveness of our strategy and results.
• The Board of Directors Governance and Corporate Responsibility Committee’s charter provides oversight and direction on the Company’s sustainability strategy and reviews our sustainability performance and progress towards goals on an annual basis.

ENVIRONMENT, HEALTH AND SAFETY POLICIES

Our health and safety policy reflects a company commitment based on caring for our employees. The policy brings focus to accountability, and is aligned with our safety strategy. See the Health and Safety Policy section for more information. Our environmental policy outlines our expectations for all of our businesses to be responsible environmental stewards. In 2010, we modified the policy to include our commitment to reduce waste. See the Environmental Core Policy for more information.

To support these policies, managers and employees need to understand what both the law and the company require of them, as well as have the knowledge and tools to succeed. Our competency standard for employees with environment, health and safety responsibilities outlines the competencies needed at our operations. Our corporate Environmental, Health, Safety and Sustainability group provides training and other resources to help maintain and improve subject matter expertise in our operations.

INTERNAL CONTROLS

To help ensure that shareholders receive accurate financial information, the Sarbanes-Oxley act of 2002 requires public companies to assess their internal control structures and procedures for financial reporting and to disclose any material weakness in these controls. Our assessment is audited by an independent public accounting firm. The first report, which was due for the 2004 fiscal year, concluded our internal controls were effective and identified no material weaknesses. Subsequent reports for each fiscal year since 2004, including 2011, also concluded that our internal controls were effective and identified no material weaknesses.