FSC Group Certification

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FSC Group Certification

• An Introduction to Forest Stewardship Council
  (FSC) Group Certification

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Why Should We Care About Certification?

• Sustainability is a Mega Trend for this
  century.
• Product Sourcing (Where, How, Who) is a very real
  concern for the more affluent segment of the
  consumer market.
• Production to Global Standards now occurs for
  almost every product found in the world
  marketplace.
• Southern foresters and landowners must adapt or
  our wood products companies and therefore
  landowners will get left behind by other areas of
  the world who do play the game.

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Certification Pathways

• FSC (Worldwide)

• PEFC (Worldwide)
• SFI (North America)

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Certified Acres by Region 2011
Region Total Forest Ac. SFI Certified Tree Farm Certified FSC Certified
Minn., Wis., Mich. 52.2 mil 16.0 mil 3.6 mil 17.0 mil
Maine, NH, New York 41.2 mil 7.6 mil 1.8 mil 6.6 mil
La., Ark., Miss. 52.7 mil 7.9 mil 4.1 mil 1.8 mil
Ga., SC, NC 56 mil 4.7 mil 3.4 mil 17,320 ac total !!!
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Who is the Forest Stewardship Council (FSC)?

• Established in 1993 in response to concerns about
  global deforestation especially tropical
  hardwoods.
• World Wildlife Fund (UK) unhappiness with the
  Earth Summit of 1992 in Rio.
• Disappointment with world wide governments to
  reach consensus led to an independent,
  non-governmental, not-for-profit type structure.
• Worldwide with a Democratic structured General
  Assembly. (Environmental, Social, Economic
  chambers, equal representation between Northern
  Southern Hemispheres)
• FSC has few employees. It sets standards and
  authorizes certifiers. Landowners hires
  Certifiers or 3rd Party Auditors.
• 361 million acres certified worldwide.

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Structural Differences Between FSC vs. SFI (PEFC)

• The people behind the scenes for each
  certifying scheme. ( environmental groups FSC
  vs. industry groups SFI or hardwood industry
  FSC vs. softwood industry SFI
• Focus of the standards (social FSC vs.
  industrial forestry SFI, natural forests FSC
  vs. planted forests SFI
• Brand recognition, what is the marketplace asking
  for. FSC holds a 2 to 1 advantage in COC
  certificates or end users worldwide vs. PEFC.

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Implementation on the GroundFSC vs. Tree Farm
or SFI

• Because FSC was developed with the third-world
  tropical forests in mind, it places more emphasis
  on the social aspects of forest management. Ie.
  outside stakeholders, benefits to the community,
  labor.
• Monitoring is a major component of the FSC
  system.
• Proof of sustainability, ie. allowable cut
  determination and implementation is very
  important. Volumes grown and harvested must be
  reported.
• True Plantation Forestry is tricky with FSC,
  cover type conversion not allowed in many cases.

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Why FSC Group Certification?

• Because of the cost to hire third-party auditors,
  Group Membership is the only cost effective means
  for a small landowner to become certified.
• The Group Manager and his personnel are available
  to offer advice and make recommendations to aid
  in compliance with FSC principles and criteria.
• Recordkeeping and auditing is managed at the
  group level saving landowners/managers time.
• Potential exists in marketing efforts as small
  landowners combined in a Group may act as a type
  of Cooperative with possible branding power.

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Key Certification Terminology

• Certifying Body Organization accredited by FSC
  to perform audits of Forest Management/COC and
  issue FSC Certificates Certificate is
  authorization number.
• COC (Chain-of-Custody) Mechanism to track
  forest products through different stages of
  production ie. from origin to end use.
• Group Entity Legally authorized organization
  that holds FSC certificate on behalf of Group
  Members.
• Group Manager Person appointed by Group Entity
  to supervise and act on behalf of the Group.
• Group Member Landowner that consents in writing
  to FSC Principles and Group Procedures.
• Standards - The complete set of FSC Principles,
  Criteria and Indicators that are used to assess
  Forest Management practices.

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Types of FSC Group Structures

• Type I Shared Management responsibilities
  between Manager Member.
• Type II Manager in charge of all members
  management.
• Consulting Forester Model The consultant forms
  the Group and actively manages his clients
  lands. (Type II)
• Industry Model A primary wood products
  manufacturer funds a CFM type program where
  company foresters and/or contract consultants are
  Group Managers. Usually assists in land
  management. (May be Type I but usually Type II)
• Association Model Trade association, Government
  Agency or Conservation Org. acts as Group
  Manager, may or may not actively assist in
  landowner management. (May be Type I or II)
• GreenLink Model Independent Group Manager
  assists Landowners and Consultants but does not
  actively manage individual landowner properties.
  (Type I)

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Can Your Clients Lands Qualify for FSC?Yes
No

• If they manage for the long term.
• If you have professional maps and planning.
• If their lands have diversity of cover types and
  ages.
• If you and they keep good records.
• If both of you do not mind change, new thinking.

• If they like to cut out and get out.
  
• If you or they fly by the seat of your pants.
• If they prefer to clearcut tracts wall to wall
  and plant loblolly on all soils.
• If you and they hate to document what you do.
• If you think mgmt. standards are pointless.

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How to Form a FSC Group

• General Requirements
• Must be a Legal Entity authorized to do business.
• Comply with Legal Obligations, fees, taxes etc.
• Written Public Policy Commitment to FSC
  Principles Criteria.
• Group Entity must design training needs and
  communication strategy necessary to implement.

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Group Formation - Continued

• Defined Responsibilities
• Document division of responsibilities between
  Group Entity and Group Members (planning,
  monitoring, harvesting, marketing etc.)
• Group Entity has to appoint Group Manager
• Group Entity and staff must demonstrate knowledge
  of Group Procedures and FSC standards.

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Group Formation - Continued

• Procedures - Must be written for
• Organizational structure
• Designation of Responsibilities.
• Rules regarding eligibility
• Withdrawal/Suspension
• Corrective Action Process (CAR)
• Procedures for accepting New Members
• Complaints Process
• Also must have Internal Control systems, Define
  Personnel requirements, and evaluation process
  for applicants.

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Group Formation - Continued

• Informed Consent Process
• Prospective Members need access to FSC standards
• Explanation of Certifying Body process.
• Explanation of Right of Access to members
  personal records.
• Explanation of Public Information Requirement.
• Members obligations, also group managers.
• Cost of membership.
• This understanding or consent must be
  acknowledged in writing through a formal Consent
  Declaration or Member Agreement.

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Additional Group Requirements

• Record Keeping
• Define Group Size and Area of Work
• Internal Monitoring Requirements and Control
  Systems
• Chain of Custody (COC) Procedures

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How are the FSC Principles analyzed for
compliance?

1. Each Principle has numerous Criteria that are
   used to judge whether a Principle is being met.
2. For each Criteria, then there are Indicators or
   specific variables that tell whether a Criteria
   is met in a regional context and that also
   specifically states desired management outcomes.
3. Finally a Verifier is an example of a way in
   which a forest management condition can be
   assessed to determine whether an Indicator has
   been met.

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Example of a Principle being met.

• Principle 5 Benefits from the Forest (Forest
  Management operations shall encourage the
  efficient use of the forests multiple products
  and services to ensure economic viability and a
  wide range of environmental social benefits.)
  Focus is on making efficient use of harvested
  resources and maintaining the capacity of the
  forest to provide long-term economic, social and
  environmental benefits.
• Criterion 5.6 The rate of harvest of forest
  products shall not exceed levels which can be
  permanently sustained.
• Indicator 5.6a Sustained Yield harvest level
  documented in management plan. Verifier Mgmt
  plan, is info correct?
• Indicator 5.6b Average annual harvest levels,
  over 10 year rolling periods, do not exceed
  calculated sustained yield. Verifier Audit of
  yearly activity reports to calculate harvest
  levels.

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Management Plan Requirements(Appropriate to
Scale)

• Management Objectives
• Description of forest resources land use and
  ownership status, socio-economic conditions,
  profile of adjacent lands
• Detailed stand maps including protected sites.
• Calculation of growth, annual harvest rates,
  species selection
• Silvicultural systems and harvest method
  justification.
• Provisions for monitoring growth and activities.
• Environmental safeguards required, ex. BMPs.
• Plans for identifying and protecting
  rare,threatened or endangered species. Also
  protection of cultural sites.

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What is GreenLink?

• GreenLink Forest Resources LLC was founded by
  Chester Kearse Jr. to serve as the group entity
  or group manager for the GreenLink Forest
  Stewards Group, a Forest Stewardship Council
  (FSC) certified group.
• The GreenLink Forest Stewards group offers cost
  effective FSC certification and chain-of-custody
  for small and medium size landowners.
• GreenLink offers truly independent FSC Group
  Certification because there is no direct
  affiliation whatsoever with any industry,
  conservation, or forestland management
  organization.

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How does GreenLink Function?

• GreenLink Forest Resources LLC is Group Manager
  and FSC Group Certificate holder. (SW-FM/COC
  005677)
• Group manager acts only as the gatekeeper or
  liaison with the Certifying Body (Smartwood) and
  FSC.
• Landowner and/or resource professional are
  responsible for their own individual forestland
  management.
• Group manager informs, advises, and inspects to
  make sure standards are being met by landowners.
• Group manager maintains the group records, pays
  for audits and provides the chain-of-custody to
  the members of the GreenLink Forest Stewards
  Group.

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What Landowners Does GreenLink Serve?

• GreenLink is approved to operate in the Coastal
  Plain and Piedmont regions of Georgia, South
  Carolina and North Carolina.
• GreenLink is divided into 2 subsets for auditing
  and management purposes. 1) Small Family Forests
  lt1000 ha (2470acres) and 2) Large Landowner
  subset, 2470 acres up to 20,000 acres.
• Only forested acres are certified on a property
  and each legal entity is considered a unique
  forest.
• All forms of private ownership are eligible.
• The forest must be a working forest.
• GreenLink reserves the exclusive right to
  determine membership.

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What Benefits does a Landowner Receive?

• Inexpensive FSC Chain-of-Custody certification
  may or may not command a premium in the
  marketplace.
• Detailed record keeping archive by GreenLink.
  Harvest monitoring and management activity
  reports required yearly.
• Third-party review by GreenLink personnel and
  independent FSC auditors continuous improvement
  and peer reviewed back-up for land managers that
  is strictly confidential.
• Access to a region specific forest management
  reference document that smaller landowners can
  refer to for detailed information regarding
  topics such as growth yield, integrated pest
  management, silvicultural procedures, BMPs, soil
  type determination, as examples.
• Potential Marketing Opportunities under the
  GreenLink Brand.

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What does membership cost?

• One time initial enrollment, assessment and
  certification fee of 1.00 per forested acre.
• Annual management fee (currently .35/acre) that
  is fixed for a five-year period following
  enrollment.
• Example 650 acre tract has a GIS map showing
  600 acres of timberland and 50 acres of fields,
  pond and cabin. Therefore 600 acres are FSC
  certified.
• Year 1 600 acres X 1.35/acre 810
• Year 2 600 acres X .35/acre 210
• Year 3 600 acres X .35/acre 210
• Year 4 600 acres X .35/acre 210
• Year 5 600 acres X .35/acre 210
• Total Cost over first 5 years 1,650/5yrs/600ac.
• Average Annual Cost .55/acre/year

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What Does the Group Manager Do?

• Organizes and maintains the Group to FSC
  standards
• Develops and maintains the procedures for Group
  operation.
• Maintains the records of the group and
  specifically archives the monitoring reports of
  individual members.
• Assists and trains landowners and their forestry
  professionals with compliance issues.
• Arranges and pays for third-party audits, group
  certification.
• Assists in broad marketing efforts for the group.
• Monitors individual group members compliance.

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What are the Landowner Responsibilities?

• Manage his/her property to FSC standards.
• Contact the Group Manager for clarification if
  uncertainties arise about the appropriateness of
  a forest management practice.
• Make their property and forest management records
  (non-proprietary information only) available to
  GreenLink and/or third-party auditor(s).
• Sign required membership participation documents.
• Remit membership fees in a timely manner.
• Assess and formally report management activities
  on at least a yearly basis.

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In Summary

• If your clients are a good Land Stewards, you do
  not mind paperwork, and you welcome peer review
  of your forest management, then FSC certification
  may be something to consider.
• It seems to be the way the world is going and our
  paper companies need to source more and more FSC
  wood fiber in a region with little currently
  available.
• GreenLink Forest Stewards or other FSC Groups
  offer a cost effective way to obtain FSC
  certification.