The Certification Chain

Forestry Innovation Investment

MoFR Provincial Leadership ForumNovember 19, 2008

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Agenda

■ Who we are■ Certification context■ Forest certification in British Columbia and Canada■ Green building

Who we are

■ Forestry Innovation Investment: agency of the government of British Columbia

■ Mandate to promote B.C.’s sustainable forest practices and products around the world

www.bcforestinformation.com

Certification Context

Industry overview

■ Forestry is a key driver of economy – 15% of provincial economic activity

■ Forest companies directly employ 81,000 people in rural communities

■ 40% of provincial exports by value♦ more than 80% of output sold outside Canada in 2007

(including pulp and paper)

Global Procurement Trends

■ Trend towards national procurement policies and assessment criteria for timber.

■ Proof of legality and sustainability of forest products.■ Assessment criteria reference certification standards.■ Public procurement policies are being positioned as national

standards and act as a catalyst for private sector procurement■ FII working with industry and Canadian government to retain

access to markets

Global Green Building Trends

■ Globally, buildings are responsible for 20-40% of water consumption, energy use, greenhouse gas emission and solid waste generation

■ Life cycle assessment studies show that wood products yield clear environmental advantages

■ Green building rating systems (LEED, Green Globes, NAHB, in North America) are used by professionals to evaluate the environmental impact of structures.

■ Rating systems often rely on certification as assurance that wood used in buildings is coming from a sustainable source.

Certification in British Columbia

and Canada

_________________________________An overview

The B.C. and Canadian context

■ B.C. has one of the world’s strongest regulatory frameworks

for forestry, and enforces it

■ Against that backdrop of high standards, voluntary certification

provides an extra layer of assurance of well-managed forests

■ B.C. and Canadian governments recognize CSA, FSC, and

SFI certification systems

■ Within those systems there are really 2 types of certification

1. Certification of forest management

■ Assurance that forests are sustainably managed

2. Certification of chain-of-custody

A Chain of Custody:■ Provides a measure of the portion of a wood product that has

been sourced from a certified forest■ Provides assurance that any uncertified portion is from legal

and non-controversial sources.■ Provides the ability to use product labels and make

promotional claims

Standards recognized

All of the certification standards currently in use in B.C. and Canada promote the principles, criteria and objectives that are viewed as the basis of sustainable forest management around the world.

■ CSA (Canadian Standards Association)

■ FSC (Forest Stewardship Council)

■ SFI (Sustainable Forestry Initiative)

■ PEFC (Programme for Endorsement of Forest Certification)

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Mutual recognition of certification programs

4 Standards in Canada(includes one under development)

FSC International

GLOBAL ‘UMBRELLA’ PROGRAMS

Endorse national programs meeting a certain common level.

STANDARDS ENDORSED IN B.C.

and CANADA

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Achievements

■ The amount of land certified in B.C. and Canada has grown

rapidly

■ Virtually every major forest company has now achieved

certification…and certification is becoming a priority for small

forestry operators and private land owners

■ The fact that there is a choice of standards makes certification

more likely, and this strengthens forest management

■ Certified forests now cover most of of B.C.’s working forests

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Forest certification globally

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Choosing certified products

In North America■ CSA, FSC and SFI are supported by government and recognized in

the procurement strategies of retailers such as Centex Homes, BMHC, Hallmark Cards, Lowes, Office Depot, Staples, and Time/AOL

Globally■ France, Germany, Japan, New Zealand, Switzerland, the United

Kingdom, and the EU Parliament all consider FSC and PEFC certified wood to be legal and sustainable

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Supporting sustainable forest management

■ The major forest certifications standards recognized in Canada all promote sustainable forest management and provide assurance of well-managed forests (CSA, FSC, SFI)

■ Maintaining a choice in certification standards and a free market improves global forest management standards (competition is good)

■ Focus on the 90% of the world’s forests that are not certified.

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Conclusion

When choosing and using wood products, customers are looking for products from responsible and sustainable sources that embrace these principles:

Harvest legallyRegenerate promptlyReduce waste, and support recovery and recyclingReduce greenhouse gases and help fight climate changeWelcome independent scrutiny of how they manage forests