An Overview of the Sustainable Forestry Initiative SFI Program

1. An Overview of the Sustainable Forestry Initiative? (SFI) Program Michael Virga Director, Sustainable Forestry Programs American Forest & Paper Association BIFMA Wood Certification Session October 21, 2002

2. SFISM : A Global Leader in Sustainable Forestry and Certification

3. Perceptions: Importance & Performance This graph summarizes much of the key public opinion research we developed under the Task Force. In the upper left quadrant are the issues related to forestry that the public views as very important to them, but in which they believe the industry performs poorly. The public views sustainable forestry, wildlife, protecting lakes and streams and protecting wilderness areas as high priorities, but they gave the industry low marks for performance in all four areas. In the upper right quadrant are issues the public assigns as important and which they believe the industry performs well. Our message of replanting has obviously had an impact, but clearly it alone does not mean sustainable forestry in the public mind. The positive position of recycling paper reflects our efforts in the area of recovery, proof of performanceand communications. Additional research conducted in 1997 confirmed these earlier findings and indicated that the SFISM program promotes responsible environmental policy favored by the public. This graph summarizes much of the key public opinion research we developed under the Task Force. In the upper left quadrant are the issues related to forestry that the public views as very important to them, but in which they believe the industry performs poorly. The public views sustainable forestry, wildlife, protecting lakes and streams and protecting wilderness areas as high priorities, but they gave the industry low marks for performance in all four areas. In the upper right quadrant are issues the public assigns as important and which they believe the industry performs well. Our message of replanting has obviously had an impact, but clearly it alone does not mean sustainable forestry in the public mind. The positive position of recycling paper reflects our efforts in the area of recovery, proof of performanceand communications. Additional research conducted in 1997 confirmed these earlier findings and indicated that the SFISM program promotes responsible environmental policy favored by the public.

4. Who’s driving it? Customers (under pressure) Environmental Groups Demands Rainforest Action Network (RAN) Forest Ethics Consumer not a driver

5. Situation Analysis 1999-2000 Detractors demonstrate against customers SFI credibility attacked SFI Governance challenged Dissatisfied customers

6. Customer Requests Independent Governance - with ENGO participation Enhanced Standard Third-Party Certification Consumer Communication Program On-product Label

7. Independent Governance The SFI program is governed by a multi-stakeholder board- industry in the minority 15 members, 66% from diverse non-industry groups: 1/3 environmental/conservation 1/3 public officials/professional/academic 1/3 industry/large landowners Separate Legal Entity - 501(c) 3 SFB plays a critical role in the program Manage SFI Standards and Verification Procedures Internal Accreditation & Auditor Review Dispute Resolution & Quality Control

8. Independent Governance Colin Moseley, Chair; Chairman, Simpson Timber Company Lawrence Selzer, First Vice Chairman; Senior VP, Conservation Fund William Banzhaf, Second Vice-Chairman; Executive Vice President, Society of American Foresters Allen Bedell, President, Circle B Logging, Inc. Rick R. Holley, CEO, Plum Creek Timber Company Skeet Burris, Non-industrial landowner, Cypress Bay Plantation John Cashwell, President, Seven Islands John Dillon, Chairman & CEO, International Paper Company Gerald Rose, Sustainable Forestry Consultant John Luke, President & CEO, MeadWestvaco Corporation Peter Seligman, Chairman & CEO, Conservation International David B. Thorud, Dean, College of Forest Resources, University of Washington Steve McCormick, CEO, Nature Conservancy Paul Portney, President, Resources for the Future James Gustav “Gus” Speth, Dean, Yale University School of Forestry & Environmental Studies

9. Enhanced Standard Verifiable Procurement System Internationally, must contribute to: Elimination of Illegal Logging Promote Conservation of Biodiversity Hotspots & Major Tropical Wilderness Areas In North America, must promote reforestation and use of BMP’s on non-controlled lands

10. Enhanced Standard Forests of Exceptional Conservation Value Must protect critically imperiled & imperiled species and communities collaborative process with NatureServe “G1’s & G2’s” Rankings based on rarity

11. 3rd Party Certification Consistent with international verification and auditing standards Based on ISO Procedures & Protocols 87 million acres certified or in the pipeline

12. Communications Retailer focused campaign A consumer friendly informational website: www.aboutsfi.org A significant public relations program Customizable in-store and cross promotional support

17. Situation Analysis 2002 Protest Threat Diminished Increased SFI Credibility Recognized NGO Support Increased Customer Comfort

18. Development of Procurement Policies Exclusive The Home Depot IKEA B&Q Inclusive Lowe’s MASCO Anderson Windows Pella Windows 84 Lumber Hallmark Cards AOL/Time Warner Payless Cashways Wickes Lumber Centex Homes Norm Thompson Outfitters Staples???

19. SFI