® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 1 Forest Stewardship Council FSC - Changing world forestry Roberto S. Waack Chairman of the Board

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 2 an independent, non-governmental not for profit multi-stakeholder organization FSC

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 3 Founded in 1993 in the wake of the Rio-1992 by concerned business representatives, social groups and environmental organizations FSC’s history

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 4 to promote environmentally appropriate, socially beneficial and economically viable management of the world's forests FSC was established

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 5 Setting standards that reflect agreed principles for responsible forest management Accreditation/certification system that monitors compliance with FSC standards A product labelling system that rewards responsible forest managers Together: A market driven mechanism to improve forest management worldwide FSC does so through

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 6 FSC certification Forest management –S/Env/Ec certification –FSC Principles and Criteria Chain of Custody (CoC) –traceability

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 7 FSC Principles and Criteria International forest management standard Applicable to all types of forests worldwide 10 Principles and 56 Criteria Consideration of scale and intensity Local indicators

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 8 Principle 1 – Legislation Applicable laws International conventions Payment of fees and taxes Commitment to the FSC Principles and Criteria

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 9 Principle 2 – Land tenure Long term forest tenure Community rights Resolution of disputes

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 10 Principle 3 – Indigenous Peoples Free and informed consent Forest management and IP resources Protection of special sites Traditional knowledge

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 11 Principle 4 – Communities and Workers Social impacts and planning Local employment Health and safety ILO Core Conventions Dispute resolution

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 12 Principle 5 – Economic benefits Long term viability Efficiency and local processing Diversification Other services Sustainable harvest rate

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 13 Principle 6 – Environmental impact Impact assessment Protection of rare or endangered species Maintenance of ecological functions –Regeneration –Biodiversity –Natural cycles Set aside areas

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 14 Principle 6 – Environmental impact Soil erosion and water quality Use of pesticides No genetically modified organisms Waste disposal Biological control and exotic species Conversion to other land uses

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 15 Principle 7 – Planning Clear and detailed management plan Periodic revision Training Public summary

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 16 Principle 8 – Monitoring and Evaluation Long term monitoring program –Forest growth, forest health –Fauna and flora –Environmental and social impacts –Productivity, costs and efficiency Production control Adoption of monitoring results Public summary

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 17 Principle 9 – High value areas High Conservation Value Forests –Social, environmental or economic Mapping –Stakeholder consultation Measures to maintain or enhance Public summary Annual monitoring

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 18 Principle 10 – Plantations Reduce pressure on natural forests Promote conservation and restoration of natural forests Diversity Soil fertility Annual monitoring Conversion clause – November 1994

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 19

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 20 Top Countries – FSC forests (ha) March 30, 2009

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 21 March 30, 2009

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 22 Canada26,596,498 Russia18,957,686 United States11,030,495 Sweden 9,713,520 Poland 6,364,926 Brazil 5,479,531 Top Countries – FSC forests (ha) March 30, 2009

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 23 March 30, 2009

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 24 Certified forests - Biomes Tropical/ subtropical

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 25 Certified forests - Type

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 26 Certified forests - Tenure Private

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 27 FSC Chain of Custody Link between FSC forests and products

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 28 United States2,745 United Kingdom1,629 Japan 897 Germany 839 Canada 684 The Netherlands 669 China 662 Top Countries - CoC certificates

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 29 Growth 2007*2008**Growth (yr) Forest Management (ha) 93,918,950105,450,874 17% Chain of Custody (#) 7,68311,111 63% Total certificates (#) 8,59612,054 57% * December 4, 2007 ** October 24, 2008

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 30 FSC Chain of Custody Growth # Cert4,37011,111154% Chain of custody certificates in 91 countries Strong influence from demand in North America, Western Europe and China Printing and publishing sectors

April 2009 Stats Month YYYY

Growth of FM and FM/COC (ha)

Growth of FM and FM/COC

Growth CoC

Growth CoC - continent

Monthly Growth %

Growth # CoC

Growth % CoC

Area by CB CBFullnameTotal Smartwood53,204,818 QUALIFOR, SGS South Africa19,694,601 Scientific Certification Services10,431,542 GFA Consulting8,719,692 Soil Association6,839,058 Bureau Veritas5,361,084 Det Norske Veritas3,471,466 KPMG1,831,964 Europartner1,811,154 Control Union808,910 QMI-SAI729,104 ICILA317,392 Institut für Marktökologie229,735 Swiss Association for Quality and Management Systems18,201 Grand Total113,468,723

Forest Stewardship Council (FSC) A.C. Calle Margarita Maza de Juárez 422 Colonia Centro Oaxaca CP Mexico T F

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 42 GOAL 1: Leadership in globally responsible forest management GOAL 2: Equitable access to its systems GOAL 3: Integrity and Credibility of the FSC system GOAL 4: Business value GOAL 5: Strong network to ensure delivery FSC Global Strategy

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 43

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 44 Private procurement policies –Retailers, publishers, banks –Economic benefits –Corporate image –Stakeholder pressure Growing consumer awareness Drivers

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 45 Private procurement Home Depot Lowes Ikea

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 46 Publishers Harper Collins Random House Scholastic Otto

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 47 Banks HSBC Citibank Rabobank ABN-AMRO JPMorganChase

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 48 Public procurement UK The Netherlands Denmark Germany Belgium France

In 2007, 56% of the Swiss population recognized the FSC label when prompted. Unprompted, i.e. spontaneous recognition reached 21%. The large majority of people (65%) recognized the label from in-store advertising. In Denmark, there was a level of 33% unprompted label recognition in Source: FSC Switzerland Source: FSC Denmark Prompted recognition in the Netherlands rose from 67% in 2007 to 69% in Unprompted recognition is at 21%. The FSC trademark is fourth in a ranking of the Netherlands’ best-known quality assurance trademarks. Source: FSC UK A survey commissioned by FSC UK in 2009 found that one person in four (24%) has seen the Forest Stewardship Council’s tick-tree logo. Once the scheme was explained, 54% of those questioned stated that they would probably choose FSC products in the future. Source: FSC Netherlands Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 49 Brand recognition

Forest Stewardship Council Value ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · Survey: 87% of respondents intended to renew their FSC certificates

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 51 Reason for FSC certification –Market leadership: 91% –Client request: 74% Benefit of FSC certification –Improved reputation: 82% –Access to new clients: 74% –Access to new markets: 66% 2008 Survey

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 52 Importance in the last 24 months –Increased: 60% –Stayed the same: 24% –Decreased: 7% FSC provides business value: 78% –Client retention 2008 Survey

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 53

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 54 Thank you

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 55 Back Up

Forest Stewardship Council ® FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 56 FSC labels

FOREST MANAGEMENT – AREA DIVISION 25 or 30 APUs (Annual Production Unit) The forest grown m³ per year Harvest is 30 m³ per year After 30 years the forest replaces the harvested biomass Every year one APU is explored and afterwards is closed After 30 years the APU can be explored again Sustainable Forest Management Plan ‘Plano de Manejo Florestal Sustentável – PMFS’

FOREST MANAGEMENT – APU & PARCELS An APU is sub divided in blocks of by meters and each block is again sub-divided in areas of 250 by 400 meters, called ‘Parcels’ Operational aareas 873,53 ha Camp site / Working area 0,50 ha Operational restriction area 375,54 ha Permanent Preservation 151,58 ha Parcels limit N Blocks limits N Inventory – permanent parcels N Water courses N Roads N Further limits N Escale1: Date05/2001 MY1 – Year1

Every and each parcel has its operational and permanent preservation areas. Every tree with significant economic value and diameter over 40 cm are located on the map, with information over specie, volume and shift quality Parcels N Rivers N Main roads N Scale1:1.000 Date05/2001 MU1 – Year1 G12 Red Angelin Quadrant Sustainable Forest Management Plan FOREST MANAGEMENT

Drag trails are defined, always aiming the minimum impact Operational Areas Inappropriate areas Permanent preservation Scale1: Date07/2002 Sustainable Forest Management Plan Riverbank Roads and Patios Permanent Parcel DAP FOREST MANAGEMENT

The log stock yard in the forest are defined Parcels N Rivers N Main roads N Escale1:1.000 Date05/2001 MU1 – Year1 G12 Quadrant Sustainable Forest Management Plan Red Angelin