29 INTEGRATED ANNUAL REPORT 2025 Traceability These certifications support robust traceability and help mitigate the risk of illegal logging through a Due Diligence System. As part of its ongoing compliance efforts, NCT is aligning its practices with the EUDR. This includes verifying timber sources using a geospatial database and capturing GPS coordinates in the field through the NCT App. Enhancements to the NCT Plantation Viewer and Oracle systems support this traceability. Satellite imagery and mapping tools further aid in verifying timber origins and biodiversity compliance. Pesticides To ensure environmentally responsible use of agrochemicals, NCT adheres to the FSC Pesticide Policy. This policy promotes the use of Integrated Pesticide Management (IPM), which prioritises non-chemical alternatives, such as pestresistant plant material and improved cultivation methods. Where pesticide use is necessary, Environmental and Social Risk Assessments (ESRA) are conducted to ensure safe and minimal-impact application. Research and Development In 2024, NCT funded several research initiatives to advance forestry science and operational excellence. Key projects included: • Near-Infrared Reflectance Spectroscopy (NIRS): Applied in nurseries to assess seedling and clonal propagation quality, rooting potential, and nutritional health. • Pest and Disease Research: Studied soil-insect pest complexes and the effectiveness of biological control agents against Acacia rust and Acacia mirid. • Long-Term Soil Monitoring: Continued support for industry-wide soil and litter monitoring to inform carbon accounting and sustainable land management. NCT also sustained investments in tree breeding through the Institute for Commercial Forestry Research (ICFR), focusing on both Acacia and Eucalyptus species. In 2024, trials included frost- and rust-tolerant Acacia clones, and high-potential Eucalyptus hybrids across various climatic zones. Tree Improvement and Clonal Trials NCT’s Hybrid Clone Consortium (HCC) achieved a record output of over 140,000 cuttings for trials across diverse regions. Fourteen clonal trials were planted, including Eucalyptus hybrids for pole production and a frost-tolerant Acacia trial. A new E. urophylla × E. grandis clone (UG 022) suited to both pulp and solid wood markets was introduced and will be available to members by 2026. Wood Property Testing Projects: • Pole suitability of E. grandis × E. grandis clones (GN 311, GN 350) • Pole suitability of E. grandis × E. longirostrata (GL 222) • Wood density ranking of E. grandis × E. smithii clones via resistograph testing
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