1. Reclaimed Inputs FSC-STD-40-007 Version 1-0 Supplementary standard to CoC FSC-STD-40-004 Version: 02 Oct 2008

2. 2 TOPICS 132 Introduction to FSC-STD-40-007 Applicability Effective Dates Definitions & Examples The Standard Complete Overview CB Auditing of Reclaimed Suppliers

3. 3 132 Introduction to FSC-STD-40-007 FSC Standard for Sourcing Reclaimed Material for Use in FSC Product Groups or FSC-certified Projects

4. 4 Applicability FSC-STD-40-007 applies to any Organization using reclaimed inputs in its FSC Product Groups Post-consumer reclaimed inputs Pre-consumer FSC Mixed Product Groups FSC Recycled Product Groups NOT applicable to FSC Recycled inputs from FSC-certified suppliers For:

5. 5 Effective Dates 1 st April 2008 Required for all new assessments, all companies 1 st January 2009 Required for all annual audits, all reassessments, all companies Systems for reclaimed inputs shall meet 40-007 requirements when the Organization is evaluated against 40-004V2:

6. 6 Definitions Post-consumer: reclaimed from a consumer or commercial product that has been used for its intended purpose by individuals, households, or by commercial, industrial, institutional facilities. Pre-consumer: reclaimed from a process of secondary manufacture or further downstream industry in which the material has not been intentionally produced. Reclaimed material: material that demonstrably would have been otherwise disposed of as waste or used for energy recovery.

7. 7 ExamplesPOST-consumer Commercial transport packaging Pallets, crates, cases *Must be at the end of useful life! Demolition/ deconstruction debris From buildings such as timbers, joists, doors, flooring, moulding, cabinet fixtures, lumber Damaged or rejected products Products or fixtures removed from sites based on damages or other rejections Other used products Telephone poles, railroad ties, furniture, cabinets Solid Wood Materials NOT reclaimed: By-products capable of being reused in the same manufacturing process Co-products from primary manufacturingPRE-consumer Damaged or rejected stock Products not sold or returned due to damage, overstock; surplus products (items not used for intended purpose) Manufacturing by-products secondary Off-cuts, sawdust, shavings generated during secondary manufacturing processes

8. 8 ExamplesPOST-consumer Commercial transport packaging Boxes, wrappers Commercial/ residential waste Direct mail, office paper, print outs, magazines, newspapers Fiber Materials NOT reclaimed: Mill broke, butt rolls, dry paper trimmings/other dry and wet paper by-products at the paper mill Forest debris remaining from harvest or otherwise collectedPRE-consumer Manufacturing by-products secondary Printer and bindery trim and scrap, scrap from packaging manufacture, converter scrap, generated during secondary manufacturing processes Damaged or rejected stock Merchant returns, items unfit for distribution Surplus stock Over issue publications, discontinued items

9. 9 132 The Standard Complete Overview

10. 10 1. Input Specifications 1.1 Ensure reclaimed inputs are described in purchase and delivery documentation in accordance with Annexes I and II DefineDefine reclaimed inputs based on FSC definitions and examples provided purchasing systemUse clear language in purchasing system to specify post- vs. pre- consumer supplier documentationEnsure supplier documentation provides a clear description of the input to verify it as post- or pre- consumer

11. 11 2. Supplier Audit Program 2.1 Specify the evidence for the reclaimed category: Identify the documents and other evidence demonstrating reclaimed materials comply with standard requirementsIdentify the documents and other evidence demonstrating reclaimed materials comply with standard requirements Provide rationale for this evidenceProvide rationale for this evidence DocumentsDocuments may be supplier product descriptions, supplier invoice, supplier shipping documents, agreement/contract with supplier Other evidenceOther evidence may be pictures, reports, on- site investigations, declarations RationaleRationale provides the company’s reasons behind this evidence as support of the reclaimed category

12. 12 2. Supplier Audit Program 2.2 Specify and implement supplier audit program to verify authenticity of evidence (at least annual) 2.3 Specify personnel and qualifications / training measures to carry out supplier audits Frequency Intensity Auditors Auditor qualifications and training Implement supplier audits prior to or soon after receiving reclaimed inputs for use in FSC products *External auditors (including CBs) may be hired to conduct the audit program Specify audit program in documented procedures including

13. 13 3. Supplier Audits 3.1 Auditors shall demonstrate expertise and competence in implementing the audits Expertise and competence Expertise and competence are verified through: Interviews Written reports

14. 14 3. Supplier Audits 3.2 On-site visits to supplier sites: y = 0.8√x y = number of sites to visit x = total number of sites across all suppliers Sample is alternating and representative in terms of: Geographic distribution Geographic distribution Activities and/or products Activities and/or products Size and/or annual production Size and/or annual production [Supplier site “ any facility acting as physical point of delivery of the material received by the organization ” ] Audit program Audit program shall demonstrate a sampling minimum that meets the FSC equation and selection process

15. 15 3. Supplier Audits 3.3 Supplier audits shall be conducted in timely fashion after receipt of the reclaimed material 3.4 Auditor shall check and verify authenticity of evidence pertaining to the inputs, in terms of Quantity Quantity Quality Quality Compliance with FSC definitions and examples for post- or pre- consumer reclaimed Compliance with FSC definitions and examples for post- or pre- consumer reclaimed “Timely fashion”“Timely fashion” has not been defined, but needs to proceed shortly following use of the inputs for FSC products Compliance with FSC definitionsCompliance with FSC definitions is the key aspect to the supplier audit program

16. 16 4. Verification by the Certification Body 4.1 Required documents and other evidence are available to CB auditors 4.2 Supplier audit records and reports: –Include findings of the audit –Experience & qualifications of the auditor(s) –Are maintained for 5 years 4.3 Supplier audit records are available to SW auditors Documents and other evidenceDocuments and other evidence are reviewed for adequacy to support the reclaimed classification Supplier audit recordsSupplier audit records are reviewed to verify the audit process, auditor expertise, findings to support reclaimed classification

17. 17 TOPICS 132 CB Auditing of Reclaimed Suppliers

18. 18 CB shall conduct on-site audits of reclaimed suppliers: 20% sampling of supplier sites audited in the Organization ’ s sample20% sampling of supplier sites audited in the Organization ’ s sample Implemented with first annual audit (but not at the assessment phase)Implemented with first annual audit (but not at the assessment phase) CB audit functions to confirm the results of the Organization ’ s auditCB audit functions to confirm the results of the Organization ’ s audit CB audit sampling not necessary when the Organization has hired a CB to conduct all audits Audit Evaluation (FSC-STD-20-011)

19. 19 LINK TO EXERCISE 7. Exercises Note: you must exit presentation mode and double-click on the ‘word’ icon to open exercise

20. 20 THANK YOU!