1. BCTS Forestry Certification Experience Provincial Leadership Forum November 19, 2008

2. BCTS Certification  100% of BCTS operations are ISO 14001 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

3. 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

4. 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

5. 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

6. 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

7. 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)

8. 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

9. BCTS – Certification Experience  Implementing a range of certification standards has presented some challenges  Some areas of specific pressure for FSC  ISO 14001 EMS has laid a good foundation supporting both our business and SFM certification

10. 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

11. BCTS Certification Contacts  Jim Sutherland, RPF – Director, Forestry 250-398-0058 jim.d.sutherland@gov.bc.ca jim.d.sutherland@gov.bc.ca  Rein Kahlke, RPF – Certification Off. 250-550-2247 rein.kahlke@gov.bc.ca rein.kahlke@gov.bc.ca  Tavis McDonald, RPF – Sustainability Off. 250-638-5172 tavis.mcdonald@gov.bc.ca tavis.mcdonald@gov.bc.ca

12. www.for.gov.bc.ca/bcts/

13. 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

14. 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

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

16. 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)

17. 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

18. 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

19. 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)

20. 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

21. 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

22. Certification Implications to BCTS Opportunities  OTHER???