This Due Diligence Statement outlines the sourcing, traceability, and compliance procedures applied by QUERCUS PARKET in relation to the procurement of oak (Quercus robur) and ash (Fraxinus excelsior) logs used in its production processes.

All timber processed by QUERCUS PARKET originates from legally harvested forests within Southeast Europe, primarily:

• Republic of Serbia

• Republic of Croatia

• Bosnia and Herzegovina

• Romania

The principal sourcing area is the Morović forest (Serbia), managed by the state enterprise JP Vojvodinašume, with which the company maintains a continuous supply relationship since 1997.

Additional sourcing is conducted through verified and long-standing suppliers operating within the region.

All suppliers are subject to strict verification procedures, including:

• Confirmation of legal harvesting rights and documentation

• Verification of forest management authority (state or licensed private operators)

• Assessment of supplier track record and reliability

• Ongoing monitoring of supplier compliance

• Where applicable, timber is sourced from FSC-certified forests or forests operating under equivalent sustainable management frameworks.

QUERCUS PARKET maintains full compliance with all relevant international timber regulations, including:

• EUTR (EU Timber Regulation)

• EUDR (EU Deforestation Regulation)

• UKTR (UK Timber Regulation)

• US Lacey Act

All timber is legally harvested, documented, and traceable from forest to final processing facility.

The company operates a comprehensive traceability system ensuring:

• Identification of origin at forest and compartment level

• Documentation of transport (waybills, delivery notes, invoices)

• Internal tracking from log yard to final product

• Segregation of certified and non-certified material where applicable

• All incoming logs are recorded and controlled through internal inventory and production systems.

QUERCUS PARKET conducts continuous risk assessment across its supply chain, focusing on:

• Country and regional risk levels

• Species-specific risks

• Supplier credibility and documentation integrity

Mitigation measures include:

• Preference for state-managed forests and long-term contracts

• Multi-supplier sourcing strategy to reduce dependency

• Physical verification of timber deliveries

• Ongoing compliance checks and documentation audits

The overall risk of illegal or non-compliant timber entering the supply chain is assessed as low.

The company is committed to responsible forest utilization and environmental stewardship by:

• Prioritizing sustainably managed forests

• Supporting long-term forest regeneration practices

• Minimizing waste through efficient processing

• Ensuring compliance with international environmental standards

QUERCUS PARKET confirms that all oak and ash logs used in its operations are sourced in full compliance with applicable legal and environmental requirements. The company maintains a robust due diligence system that ensures transparency, traceability, and long-term sustainability across its entire supply chain.