FSC Group Certification

1. FSC Group Certification An Introduction to Forest Stewardship Council (FSC) Group Certification

2. Why Should We Care About Certification? Sustainability is a ‘Mega Trend’ for this century. Product Sourcing (Where, How, Who) is a very real concern for the more affluent segment of the consumer market. Production to ‘Global Standards’ now occurs for almost every product found in the world marketplace. Southern foresters and landowners must adapt or our wood products companies and therefore landowners will get left behind by other areas of the world who do ‘play the game’.

3. FSC (Worldwide) PEFC (Worldwide) SFI (North America) ATFS ( United States) Certification Pathways

4. Certified Acres by Region 2011

5. Who is the Forest Stewardship Council (FSC)? • Established in 1993 in response to concerns about global deforestation especially tropical hardwoods. • World Wildlife Fund (UK) unhappiness with the Earth Summit of 1992 in Rio. • Disappointment with world wide governments to reach consensus led to an independent, non-governmental, not-for-profit type structure. • Worldwide with a Democratic structured General Assembly. (Environmental, Social, Economic chambers, equal representation between Northern & Southern Hemispheres) • FSC has few employees. It sets standards and authorizes certifiers. Landowners hires Certifiers or 3rd Party Auditors. • 361 million acres certified worldwide.

6. Structural Differences Between FSC vs. SFI (PEFC) The people ‘behind the scenes’ for each certifying scheme. ( environmental groups [FSC] vs. industry groups [SFI] or hardwood industry [FSC] vs. softwood industry [SFI] Focus of the standards (social [FSC] vs. industrial forestry [SFI], natural forests [FSC] vs. planted forests [SFI] Brand recognition, what is the marketplace asking for. FSC holds a 2 to 1 advantage in COC certificates or ‘end users worldwide vs. PEFC.’

7. Implementation on the GroundFSC vs. Tree Farm or SFI Because FSC was developed with the third-world tropical forests in mind, it places more emphasis on the social aspects of forest management. Ie. outside stakeholders, benefits to the community, labor. Monitoring is a major component of the FSC system. Proof of sustainability, ie. allowable cut determination and implementation is very important. Volumes grown and harvested must be reported. True ‘Plantation Forestry’ is ‘tricky’ with FSC, cover type conversion not allowed in many cases.

8. Why FSC Group Certification? • Because of the cost to hire third-party auditors, Group Membership is the only cost effective means for a small landowner to become certified. • The Group Manager and his personnel are available to offer advice and make recommendations to aid in compliance with FSC principles and criteria. • Recordkeeping and auditing is managed at the group level saving landowners/managers time. • Potential exists in marketing efforts as small landowners combined in a Group may act as a type of Cooperative with possible ‘branding’ power.

9. Key Certification Terminology • Certifying Body – Organization accredited by FSC to perform audits of Forest Management/COC and issue FSC Certificates – Certificate is authorization number. • COC (Chain-of-Custody) – Mechanism to track forest products through different stages of production ie. from origin to end use. • Group Entity – Legally authorized organization that holds FSC certificate on behalf of Group Members. • Group Manager – Person appointed by Group Entity to supervise and act on behalf of the Group. • Group Member – Landowner that consents in writing to FSC Principles and Group Procedures. • Standards - The complete set of FSC Principles, Criteria and Indicators that are used to assess Forest Management practices.

10. Types of FSC Group Structures • Type I = Shared Management responsibilities between Manager & Member. • Type II = Manager in charge of all members’ management. • Consulting Forester Model – The consultant forms the Group and actively manages his clients’ lands. (Type II) • Industry Model – A primary wood products manufacturer funds a CFM type program where company foresters and/or contract consultants are Group Managers. Usually assists in land management. (May be Type I but usually Type II) • Association Model – Trade association, Government Agency or Conservation Org. acts as Group Manager, may or may not actively assist in landowner management. (May be Type I or II) • GreenLink Model – Independent Group Manager assists Landowners and Consultants but does not actively manage individual landowner properties. (Type I)

11. If they manage for the long term. If you have professional maps and planning. If their lands have diversity of cover types and ages. If you and they keep good records. If both of you do not mind change, new thinking. If they like to cut out and get out. If you or they fly by the seat of your pants. If they prefer to clearcut tracts wall to wall and plant loblolly on all soils. If you and they hate to document what you do. If you think mgmt. standards are pointless. Can Your Clients Lands Qualify for FSC?YesNo

12. How to Form a FSC Group • General Requirements • Must be a Legal Entity authorized to do business. • Comply with Legal Obligations, fees, taxes etc. • Written Public Policy Commitment to FSC Principles & Criteria. • Group Entity must design training needs and communication strategy necessary to implement.

13. Group Formation - Continued • Defined Responsibilities • Document division of responsibilities between Group Entity and Group Members (planning, monitoring, harvesting, marketing etc.) • Group Entity has to appoint Group Manager • Group Entity and staff must demonstrate knowledge of Group Procedures and FSC standards.

14. Group Formation - Continued • Procedures - Must be written for: • Organizational structure • Designation of Responsibilities. • Rules regarding eligibility • Withdrawal/Suspension • Corrective Action Process (CAR) • Procedures for accepting New Members • Complaints Process • Also must have Internal Control systems, Define Personnel requirements, and evaluation process for applicants.

15. Group Formation - Continued • Informed Consent Process • Prospective Members need access to FSC standards • Explanation of Certifying Body process. • Explanation of ‘Right of Access’ to members personal records. • Explanation of Public Information Requirement. • Member’s obligations, also group manager’s. • Cost of membership. • This understanding or consent must be acknowledged in writing through a formal ‘Consent Declaration or Member Agreement.’

16. Additional Group Requirements • Record Keeping • Define Group Size and Area of Work • Internal Monitoring Requirements and Control Systems • Chain of Custody (COC) Procedures

17. How are the FSC Principles analyzed for compliance? • Each Principle has numerous Criteria that are used to judge whether a Principle is being met. • For each Criteria, then there are Indicators or specific variables that tell whether a Criteria is met in a regional context and that also specifically states desired management outcomes. • Finally a Verifier is an example of a way in which a forest management condition can be assessed to determine whether an Indicator has been met.

18. Example of a Principle being met. • Principle #5 – Benefits from the Forest(Forest Management operations shall encourage the efficient use of the forests multiple products and services to ensure economic viability and a wide range of environmental & social benefits.) Focus is on making efficient use of harvested resources and maintaining the capacity of the forest to provide long-term economic, social and environmental benefits. • Criterion 5.6 – The rate of harvest of forest products shall not exceed levels which can be permanently sustained. • Indicator 5.6a – Sustained Yield harvest level documented in management plan. Verifier – Mgmt plan, is info correct? • Indicator 5.6b – Average annual harvest levels, over 10 year rolling periods, do not exceed calculated sustained yield. Verifier – Audit of yearly activity reports to calculate harvest levels.

19. Management Plan Requirements(Appropriate to Scale) • Management Objectives • Description of forest resources; land use and ownership status, socio-economic conditions, profile of adjacent lands • Detailed stand maps including protected sites. • Calculation of growth, annual harvest rates, species selection • Silvicultural systems and harvest method justification. • Provisions for monitoring growth and activities. • Environmental safeguards required, ex. BMP’s. • Plans for identifying and protecting rare,threatened or endangered species. Also protection of cultural sites.

20. What is GreenLink? GreenLink Forest Resources LLC was founded by Chester Kearse Jr. to serve as the group entity or group manager for the GreenLink Forest Stewards Group, a Forest Stewardship Council (FSC) certified group. The GreenLink Forest Stewards group offers cost effective FSC certification and chain-of-custody for small and medium size landowners. GreenLink offers truly ‘independent’ FSC Group Certification because there is no direct affiliation whatsoever with any industry, conservation, or forestland management organization.

21. How does GreenLink Function? • GreenLink Forest Resources LLC is Group Manager and FSC Group Certificate holder. (SW-FM/COC 005677) • Group manager acts only as the gatekeeper or liaison with the Certifying Body (Smartwood) and FSC. • Landowner and/or resource professional are responsible for their own individual forestland management. • Group manager informs, advises, and inspects to make sure standards are being met by landowners. • Group manager maintains the group records, pays for audits and provides the chain-of-custody to the members of the GreenLink Forest Stewards Group.

22. What Landowners Does GreenLink Serve? • GreenLink is approved to operate in the Coastal Plain and Piedmont regions of Georgia, South Carolina and North Carolina. • GreenLink is divided into 2 subsets for auditing and management purposes. 1) Small Family Forests <1000 ha (2470acres) and 2) Large Landowner subset, 2470 acres up to 20,000 acres. • Only ‘forested’ acres are certified on a property and each legal entity is considered a unique forest. • All forms of private ownership are eligible. • The forest must be a ‘working’ forest. • GreenLink reserves the exclusive right to determine membership.

23. What Benefits does a Landowner Receive? • Inexpensive FSC Chain-of-Custody certification; may or may not command a premium in the marketplace. • Detailed record keeping archive by GreenLink. Harvest monitoring and management activity reports required yearly. • Third-party review by GreenLink personnel and independent FSC auditors; continuous improvement and peer reviewed back-up for land managers that is strictly confidential. • Access to a region specific forest management reference document that smaller landowners can refer to for detailed information regarding topics such as growth & yield, integrated pest management, silvicultural procedures, BMP’s, soil type determination, as examples. • Potential Marketing Opportunities under the GreenLink Brand.

24. What does membership cost? • One time initial enrollment, assessment and certification fee of $1.00 per ‘forested’ acre. • Annual management fee (currently $.35/acre) that is fixed for a five-year period following enrollment. • Example: 650 acre tract has a GIS map showing 600 acres of timberland and 50 acres of fields, pond and cabin. Therefore 600 acres are FSC certified. Year 1 – 600 acres X $1.35/acre = $810 Year 2 – 600 acres X $.35/acre = $210 Year 3 – 600 acres X $.35/acre = $210 Year 4 – 600 acres X $.35/acre = $210 Year 5 – 600 acres X $.35/acre = $210 Total Cost over first 5 years =$1,650/5yrs/600ac. Average Annual Cost =$.55/acre/year

25. What Does the Group Manager Do? • Organizes and maintains the Group to FSC standards • Develops and maintains the procedures for Group operation. • Maintains the records of the group and specifically archives the monitoring reports of individual members. • Assists and trains landowners and their forestry professionals with compliance issues. • Arranges and pays for third-party audits, group certification. • Assists in broad marketing efforts for the group. • Monitors individual group member’s compliance.

26. What are the Landowner Responsibilities? • Manage his/her property to FSC standards. • Contact the Group Manager for clarification if uncertainties arise about the appropriateness of a forest management practice. • Make their property and forest management records (non-proprietary information only) available to GreenLink and/or third-party auditor(s). • Sign required membership participation documents. • Remit membership fees in a timely manner. • Assess and formally report management activities on at least a yearly basis.

27. In Summary • If your clients are a good Land Stewards, you do not mind paperwork, and you welcome peer review of your forest management, then FSC certification may be something to consider. • It seems to be the way the world is going and our paper companies need to source more and more FSC wood fiber in a region with little currently available. • GreenLink Forest Stewards or other FSC Groups offer a cost effective way to obtain FSC certification.