BCTS Forestry Certification Experience Provincial Leadership Forum November 19, 2008

BCTS Certification  100% of BCTS operations are ISO 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

BCTS Certification Key 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 3 rd party verification

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

BCTS Certification  Current Plans for BCTS SFM Certification 08/0909/1010/11 85% 90% 95% 85% 90% 95%  Current BCTS SFM Certification - About 74% of Volume ~ 11.8 million m3 - 9 Business Areas - About 70:30 CSA:SFI

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

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)

BCTS – Chain Of Custody (CoC)  BCTS does not hold CoC but supports CoC certification in three ways: 1. SFM Certification Information in Business Area Annual Sales Plans 2. SFM Certification confirmation statement in the TSL Document 3. SFM Declaration (credit transfer) letter included in TSL tender package

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

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

BCTS Certification Contacts  Jim Sutherland, RPF – Director, Forestry  Rein Kahlke, RPF – Certification Off  Tavis McDonald, RPF – Sustainability Off

Certification Implications to BCTS Operations  EMS has provided a management system that has supported: - Efficiency (Checklists) - Roles and Responsibilities - Communications - Staff, Licensees, Agencies - Continuous Improvement

Certification Implications to BCTS Operations  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

Certification Implications to BCTS Operations  Increased Workload and Costs  Demands on Management Information Systems  Poorer or less sophisticated operators leaving program

Certification Implications to BCTS Planning  Support/Complement FRPA –Non-statutory support documentation –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)

Certification Implications to BCTS Planning  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

Certification Implications to BCTS Practices  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

Certification Implications to BCTS Practices  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)

Certification Implications to BCTS Opportuniities  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

Certification Implications to BCTS Opportunities  Better alignment with, and use of, Management Information Systems  Increased trust by public/stakeholder/first nations  Better integration with business processes

Certification Implications to BCTS Opportunities  OTHER???