BCTS Forestry Certification Experience

1. BCTS Forestry Certification Experience Provincial Leadership Forum November 19, 2008

2. BCTS Certification • 100% of BCTS operations are ISO 14001 Certified – Individual Business Area Certificates based on corporate Environmental Management System (EMS) • Goal of 100% of BCTS operations for SFM Certification to either Canadian Standards Association (CSA), Sustainable Forestry Initiative (SFI) or Forest Stewardship Council (FSC) standards

3. BCTS CertificationKey Drivers – Certification • Corporate commitment to sound environmental and sustainable forest Management- linkage between strategic (LUP) and operational plans (FSP)- provide for public, stakeholder, FN involvement - Meet public, stakeholder, FN expectation - Sustainably Managed Forests - Environmental Management - Credible 3rd party verification

4. BCTS CertificationKey Drivers – SFM Certification • Customer Chain - Market Access- Procurement Policies • Forest Industry Partnerships • Consistent with Safety Objectives and Program • MPS Cost Representation • Due diligence framework

5. BCTS Certification • Current Plans for BCTS SFM Certification 08/09 09/10 10/11 85% 90% 95% • Current BCTS SFM Certification- About 74% of Volume ~ 11.8 million m3 - 9 Business Areas- About 70:30 CSA:SFI

6. BCTS Certification • Projected BCTS SFM Certification Breakdown by Standard:CSA - 54% SFI – 45% FSC - 1% • July 2008 BC SFM Certification Breakdown by Standard:*CSA – 63% SFI – 35% FSC – 2%* BC Market Outreach Network “Third Party Certification in British Columbia” July 2008

7. Choice of Certification Standard • Customer/market preferences and acceptance • MPS – representation of Forest Industry • Costs and benefits • Opportunities for partnering/efficiency considerations • Alignment with forest management initiatives and land use decisions (e.g. Ecosystem Based Management (EBM) on the coast) • Other (e.g. feasibility)

8. BCTS – Chain Of Custody (CoC) • BCTS does not hold CoC but supports CoC certification in three ways: • SFM Certification Information in Business Area Annual Sales Plans • SFM Certification confirmation statement in the TSL Document • SFM Declaration (credit transfer) letter included in TSL tender package

9. BCTS – Certification Experience • Implementing a range of certification standards has presented some challenges • Some areas of specific pressure for FSC • ISO 14001 EMS has laid a good foundation supporting both our business and SFM certification

10. BCTS – Certification Experience • Initially viewed by staff as an additional layer but evidence of integration occurring • Definite Workload and Cost Implications • No evidence of a premium for certified wood reflected in bids • Has had a number of positive impacts on operations and practices

11. BCTS Certification Contacts • Jim Sutherland, RPF – Director, Forestry 250-398-0058jim.d.sutherland@gov.bc.ca • Rein Kahlke, RPF – Certification Off. 250-550-2247rein.kahlke@gov.bc.ca • Tavis McDonald, RPF – Sustainability Off. 250-638-5172tavis.mcdonald@gov.bc.ca

12. www.for.gov.bc.ca/bcts/

13. Certification Implications to BCTSOperations • EMS has provided a management system that has supported: - Efficiency (Checklists) - Roles and Responsibilities - Communications - Staff, Licensees, Agencies - Continuous Improvement

14. Certification Implications to BCTSOperations • Due Diligence Framework & Documentation for audits and investigations • Increased Market Acceptance • Improved Risk Perception of BCTS by FPB, C&E • Supported implementation of other legislation e.g. SAR, TDG

15. Certification Implications to BCTSOperations • Increased Workload and Costs • Demands on Management Information Systems • Poorer or less sophisticated operatorsleaving program

16. Certification Implications to BCTSPlanning • Support/Complement FRPA –Non-statutory support documentation • Enhanced awareness of and attention to other values (in and outside of statutory framework) e.g. species at risk, carbon • Increased engagement with public, first nations and stakeholders (CSA)

17. Certification Implications to BCTSPlanning • Increased credibility (variable) • Increased communication and collaboration with other operators • Increased Workload and Costs • Increased comfort for TSMs but little evidence of easier plan approvals

18. Certification Implications to BCTSPractices • Increased awareness of staff and licensees of SFM objectives, risks, targets etc • Reduced incidences of FRPA Non-Compliance • Increased inspections regime, monitoring and reporting (less Risk) • Better communication with C&E

19. Certification Implications to BCTSPractices • Increased alignment of practices with site plan and FSP • Improved field practices (e.g. fuel management) through standard requirements and/or CI • No significant changes in forest management regimes required to meet Standards (FRPA)

20. Certification Implications to BCTSOpportuniities • Reduced audit and inspection by other parties – C&E, FPB • Greater integration of Certification with FRPA model - e.g. SFMP & FSP - e.g. FREP and C&I reporting • Streamlined plan approvals

21. Certification Implications to BCTSOpportunities • Better alignment with, and use of, Management Information Systems • Increased trust by public/stakeholder/first nations • Better integration with business processes

22. Certification Implications to BCTSOpportunities • OTHER???