Barry Graden, SFI Inc. Four State Forestry on the Grow Conference April 25, 2014 SFI: Progress Though Partnerships

Largest single forest certification standard in the world 248 Million acres certified in U.S. and Canada Conservation Research and Community Outreach More than 2,500 organizations involved in the SFI program A registered nonprofit, governed by a three-chamber board SFI Today

Growth by several measures: SFI Today

Why Invest in SFI Certification? Social License to Operate Credibility Market Access Competition Attraction to Investors International Appeal

Why Invest in SFI Certification?  Social License to Operate Credibility Market Access Competition Appeal to Investors International Appeal Society accepts certification as the proof- point of responsible forestry. On-product labels empower consumers to choose to support sustainable forestry.

Why Invest in SFI Certification? Social License to Operate  Credibility Market Access Competition Appeal to Investors International Appeal “Reputation Enhancement” at all points on the supply chain: Landowner to Brand-Owner.

Why Invest in SFI Certification? Social License to Operate Credibility  Market Access Competition Appeal to Investors International Appeal Certification becoming the ticket to enter the field of competition. Global producers increasingly favor certification in purchasing their policies.

Why Invest in SFI Certification? Social License to Operate Credibility Market Access  Competition Attraction to Investors International Appeal More landowners and mill operators are certifying to SFI; Differentiating themselves from the non-certified.

Why Invest in SFI Certification? Social License to Operate Credibility Market Access Competition  Attraction to Investors International Appeal As an investment strategy, forest management promotes diversification as a formula for long-term success and stability; Certification provides the credentials for verification.

Why Invest in SFI Certification? Social License to Operate Credibility Market Access Competition Attraction to Investors  International Appeal EU Timber Regulation recognizes forest certification as simplest and most credible tool for demonstrating legality and minimizing risk. World Business Council for Sustainable Development “recognizes and supports” forest certification by FSC, PEFC and SFI.

SFI Forest Partners ® Program

Objectives and Goals 1.Grow the certified forestland base 2.Facilitate the uptake of fiber from certified forestlands through the supply chain 5 million acres End of million acres End of 2017 SFI Forest Partners ® Program

Designed for currently uncertified lands and small mills Beginning in the U.S. South State- or Region-based Projects

SFI Forest Partners ® Program

How it Works: Coordinated Approach Reduces Costs through: –Same Certifying Body among participants –Synergies: Pre-assessments, back to back audits –Individual certificates for participants –Participants maintain certification going forward –SFI Forest Partners Program provides $ –Annual surveillance and recertification audits: Same pattern

SFI Forest Partners ® Program Funding from Forest Partners Program: Assessments - Gap analyses Consulting assistance for audit readiness Coordination and implementation of Initial Audits Innovation - Groups, pilot projects, etc. Operations—costs of travel, equipment, supplies.

SFI Forest Partners ® Program 103,000 acres certified Statement from SC Governor and State Forester in support of the state’s forestry practices and forest products industry First project completed: SC Similar opportunity in other states

St. Joe Timberland –Feb, 2014 –521,000 acres certified Timberland Investment Resources –March, 2014 –607,000 acres certified Progress through Partnerships! –Continuing to recruit new Project Participants SFI Forest Partners ® Program Additional Successes:

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