1. www.woodfloorrg.comWood Floor Resource Group is a Registered Provider with TheAmerican Institute of Architects Continuing Education Systems.Credit earned on completion of this program will be reported to CESRecords for AIA members. Certificates of Completion for non-AIAmembers are available on request.This program is registered with AIA/CES for continuing professionaleducation. As such, it does not include content that may be deemed orconstrued to be an approval or endorsement by the AIA of anymaterial of construction or any method or manner of handling, using,distributing, or dealing in any material or product. Questions relatedto specific materials, methods, and services will be addressed at theconclusion of this presentation.

2. www.woodfloorrg.comForest Certification What does it really mean? www.woodfloorrg.com

3. Copyright Materials This presentation is protected by US and International copyright laws. Reproduction, distribution, display anduse of the presentation without written permission of the speaker is prohibited. Wood Floor Resource Group 2007 www.woodfloorrg.com

4. Learning Objectives Understand the goals and history of forest certification Understand the differences between the major forestcertification systems in North America Understand the role of the green building movement infostering market transformation in the forest products industry bysupporting credible and stringent forest certification.

5. Forest Certification Sets standards for forest management Establishes procedures for verification Labels products Connects demand to managed forests Is officially intended to provide quality assurance

6. Forest CertificationThe Competitive LandscapeToday several systems compete in the U.S. and Canada Confusing!!!

7. Brief History of Forest Certification 0 2.5 5 7.5 10 No Forest Average Forest Perfect Forest Management Management Management SFI FSC etc.1993 FSC launched (largely by environmental groups) toidentify and drive leadership forestry1994-95 Forest products industry in U.S. (SFI), Canada (CSA), andEurope (PEFC) launch competing systems in effort to co-opt FSC,defend status quo1995 to present FSC and industry-based systems compete,driving improvements in the latter, compromises in the former

8. Non-profit, global, HQ in Bonne, Germany (www.fsc.org) National Initiatives, FSC US in DC (www.fscus.org) Origins: mostly ENGOs, the most progressive forest products companies, UK retailers Forest Stewardship Council WWF, Collins Companies, EcoTimber, B&QCurrent drivers: LEED, corporate purchasing policies, ENGO support andpressure

9. Currently governed by DC non-profit SFB (www.aboutsfi.org) Part of PEFC, European-based, global through mutual recognition (www.pefc.org) Origins: AF&PA and its member companies Weyerhaeuser, International Paper, GP, LP, Boise Cascade, etc.Current drivers: AF&PA and its member companies, some governmentpurchasing programs, Green Globes CPET

10. Program of Canadian Standards Association (www.csa-international.org) Non-profit HQd in Toronto Also part of PEFC Origins: Canadian forest industry and trade associations Interfor, MacMillan Bloedel, Canadian Wood Council, etc.Current drivers: Canadian forest industry, some government purchasingprograms, Green Globes

11. Comparing FSC & SFI/CSA/etc.Lots of comparisons have been done over the yearsMost current: Yale Report for USGBChttp://www.yale.edu/forestcertification/usgbc.htm EEM Inc Report http://www.marketsinitiative.org/resourcesWebsites: www.woodfloorrg.com www.metafore.org www.dontbuysfi.com

12. Comparing FSC & SFI/CSA/etc. FSC SFI CSA Prohibits the use of Yes No No genetically modified trees Prevents the conversion of Yes No No natural forest to plantations (with a few exceptions) Annual Allowable Cut per 0.43 m3/ha 1.27 m3/ha 0.75 m3/ha hectare (2.47 acres) Maximum clearcut size Regional Regulatory limits Provincial standards established by regulatory (Pacific Region state or requirements must be met provincial law (BC province 40 acres max. (120 acres max. 100 acres avg. avg., WA state max. Coast & Natural forest 240 acres max. S. interior; 60 acres max. BC province 150 acres max. Plantation See CSA) N. & S. Interior) 80 acres max.)

13. Comparing FSC & SFI/CSA/etc. FSC SFI CSA Pesticides Promotes non- Standard calls Has a public chemical for minimizing participation methods of chemical use process pest required to where management, achieve pesticide use includes management may be parameters on objectives, addressed, prohibited local laws local pesticides apply regulations High Conservation Value Prescribes No explicit Conserve Forest precautionary protection of ecosystem approach. old growth. diversity at the Regional Manage landscape standards add lands of level. detail. ecologic significance in a manner that recognizes their special qualities.

14. Comparing FSC & SFI/CSA/etc. FSC SFI CSA Labeling and FSC 100% label 100% of the fiber CSA 100% label Chain of Custody FSC Mixed Sources comes from SFI Minimum 70% label certified forests Content from a (non-certified At least x% of the fiber comes from SFI Certified Forest component certified forests label controlled) FSC recycled label 100% Recovered fiber Illegal wood No illegally logged No harvest in No harvest in wood allowed. Risk protected areas protected areas Registry under (e.g. parks) (e.g. parks) development. Governance Board and SFB governs; Technical committee membership members include determines standard; divided into Social, representatives members include industry government, Environmental, and from industry, academia, general Economic academia, some interests chambers conservation NGOs

15. Comparing FSC & SFI/CSA/etc. FSC SFI CSA Total land area covered 225 million 128 million 183 million worldwide by certifications acres acres acres (August 2007) Scope of application Worldwide US & Canada Canada Key supporters Many large Major US Sectors of the international forest industry Canadian ENGOs to the companies forest industry exclusion of and trade other systems. Growing associations industry and market support Key detractors Major US and Rejected as Numerous Canadian lately as NGOs claim forest October 2005 standard needs companies by key improvement and their trade conservation associations NGOs

16. Who are the Players in FSC Certification? Forest Stewardship Council The Forest Stewardship Council Sets standards, accredits certifiers Accredited 3rd-Party Certifiers SmartWood, Scientific Certification Systems, SGS, WoodMark, Silva Forest Foundation, and others perform audits and issue certificates Certified companies and their products

17. FSC Certified Forests in North America FSC Certified Forests North America: 21.01M acres North America: 70 Mha 2 Countries % of global total: 31.23% 126 certificates % of of June 2007) (as global total certified area: 30.85%

18. Rate of increase of FSC endorsed forest over time (Jun 97 Jun 07) 90,000,000 80,000,000 70,000,000 Tropical/Sub-tropicalFSC certified area in ha 60,000,000 Temperate 50,000,000 Boreal 40,000,000 30,000,000 20,000,000 10,000,000 0 Ju 02 Ju 01 J u 97 Ju 98 J u 99 J u 00 J u 03 Ju 04 J u 05 Ju 06 D 97 D 98 D 99 D 00 D 01 D 02 D 03 D 04 D 06 07 D 05 - - - - - - - - - - n- n- n- n- n- n- n- n- n- n- n- ec ec ec ec ec ec ec ec ec ec JuAs of June 2007 FSC22.5 M acres in US; 225 M acres globally (Texas * 1.5; Alaska * .5) in 886 sites in 76countries.

19. FSC and LEED About 30% of LEED projects have achieved MR 7 The ForestStewardship Council

20. Certified Wood and LEED: Framing the Issues 0 2.5 5 7.5 10 No Forest Average Forest Perfect ForestManagement Management Management Quality of Forest Management 03 on the quality scale Illegal cut-and-run logging forest mining no management or replanting Forest conversion to agriculture, cattle pasture, or semi-desert

21. Is Illegal logging a Real Problem? You Bet It Is! Eastern Europe Estonia 50% of production Latvia 20% of production Russia 15-60% of production 15-50% of exports Africa Cameroon 30-65% of production Equatorial Guinea 30% of production Gabon 30% of production Ghana 30-50% of production Liberia 30-100% of production Source: WWFs Keep It Legal Guide

22. E & SE Asia China 30-50% of production 30-32% of export products Malaysia 5% of production 70% of log imports Indonesia 60-80% of production 55% of plywood exports 100% of log exports Papua New Guinea 20% of production 65% of log exportsLatin America Brazil 15-37% of production Ecuador 70% of production Peru 70-90% of production > 90% of exports (mahogany)

23. Illegal logging = Road Building

24. Roads = Colonization

25. Colonization = Slash and Burn = Deforestation

26. The Result

27. Tropical Deforestation, Global Warming, and USGBCs Carbon-Neutrality GoalsGlobal Canopy Programme Report (May 2007) Burning of tropical forests #2 source of CO2 emissions Daily emissions equivalent of flying 7 million people from London to New YorkIf were serious about tackling climate change, itsnot enough to build energy-efficient, green-powered buildings we also need to combatillegal logging and the burning of tropical forests

28. Certified Wood and LEED: Framing the Issues 0 2.5 5 7.5 10 No Forest Average Forest Perfect ForestManagement Management Management Quality of Forest Management 3-7 on the quality scale Legal industrial forestry (e.g. SFI, CSA, etc.) Driven largely by short-term profit objectives Tree farms converting ecosystems into monocultures Heavy reliance on chemicals herbicides and fertilizers Log and flog clear the forest, sell the land for real estate development Little regard for biodiversity or high-conservation value forests (outside of parks)

29. Large-scale conversion of natural forests to monoculture tree farms is NOT sustainable Large-scale clear-cutting of natural forest generally means: Habitat destruction Soil erosion Damage to rivers, streams Loss of biodiversity Reduced wood quality Loss of recreational value

30. SFI certified logging, SWWashington, 2006

31. SFI certified logging, Vancouver Island SFI certified logging, Oregon Coast Range

32. SFI certified logging, Montana 2004SFI certified logging, Tennessee 2003

33. Top: SFI compliant logging, Oregon coast range, 2000Bottom: SFI certified logging, WeyCo, SW Washington, 2005

34. Certified Wood and LEED: Framing the Issues 0 2.5 5 7.5 10 No Forest Average Forest Perfect ForestManagement Management Management Quality of Forest Management 7-10 on the quality scale Leadership forestry Triple bottom line Long-term tenure & management plans Natural forests managed to preserve ecosystem values and environmental services Plantation management preserves soil and water quality, limits chemical use Plantations complement rather than replace natural forests

35. LEED-Driven Market Transformationof the Forest Products Industry Industrial forestry LEED SFI, CSA, PEFC Illegal logging FSC forestry 0 2.5 5 7.5 10 No Forest Average Forest Perfect Forest Management Management Management

36. A risingA rising sea liftssea boats all liftsall boats B o i se International Paper Forest Management Weyerhaeuser SeaSFI/CSA/PEFC etc

37. Basic Principles1) Forests are crucial for global environmental health andsustainability reservoirs of biodiversity and providers ofenvironmental services2) A leadership standard in green building should protectforests by only rewarding a leadership standard in forestmanagement3) No illegal wood belongs on a green building project,and the green building movement should actively combatillegal logging to help stem tropical deforestation4) Sustainable is more important than renewable; all bio-basedmaterials should be sustainably produced

38. Recommendations to USGBC1) LEED should continue to reward only FSC or its equivalent FSC 2 points, SFI 1 point is not a solution -- undermines market transformation, 15 years of progress in forest certification Establish the benchmark for what constitutes FSC equivalency, review periodically2) LEED should continue to treat wood separately from other bio-based materials Forests are special Most other bio-based materials are agricultural products3) A new LEED prerequisite should require that all wood used onLEED projects be legal Wood from high-risk regions should have to be verified legal in order to be used on LEED projects SFI/CSA/PEFC have weaknesses in their labeling and chain of custody requirements, but if addressed their labels = products of legal industrial forestry and could satisfy prerequisite4) All bio-based materials should have to meet minimumsustainability standards to be rewarded by LEED MR 6 currently rewards rapidly renewable materials, but from a sustainability standpoint, rapid growth matters little All bio-based materials should be held to standards that address sustainability

39. Get Involved!If you support our recommendations:1) Visit www.workingforests.com andwww.credibleforestcertification.org for more info2) Spread the word to your local USGBC chapter colleagues andleadership3) Voice your opinion to the USGBC leaders decidingthe future of the wood credit: Nadav Malin, MR TAG Chair nadav@buildinggreen.com Rick Fedrizzi, USGBC CEO rfedrizzi@usgbc.org4) Stay in touch with us as we track the process Terry Campbell terry@forestproductssolutions.com Jason Grant jgrant@woodfloorrg.com