GreenLink Forest Stewards

1
GreenLink Forest Stewards

• Landowner Guidelines For FSC Group Membership

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Concern for the Environment

• Wealth effect --- Affluence allows one to be
  concerned about things other than filling ones
  stomach.
• Health effect --- Concern about where the
  products we consume come from, organic food has
  now trickled over into organic wood.
• Population effect --- Concern about whether our
  planet can sustainably support continue
  population growth what will be the impacts on
  the overall environment and aesthetic qualities
  of life.

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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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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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Why FSC Certification?

• Our regions paper mills need FSC certified fiber
  to maintain market share. FSC is unique from SFI
  with FSC holding a 4 to 1 advantage in
  marketplace.
• Brand identification for forest commodity
  products. GreenLinks certifying body is
  Smartwood (Rainforest Alliance) so FSC and RA
  trademarks are available.
• FSC is a worldwide recognized forest stewardship
  standard, particularly by conservation groups.
• Independent 3rd party audits assure landowners
  that their property is well-managed, provides
  strong back-up for land managers.
• Certification can be useful for conservation
  easements or entering new markets such as carbon
  credits.

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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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The Power of Branding

• Forest Stewardship Council (FSC)
• Rainforest Alliance Smartwood Program
  

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October 10, 2011 Kimberly-Clark Becomes First
U.S. Branded Consumer Tissue Maker to Adopt
Forest Stewardship Council's Sustainable Fiber
Sourcing Standards Kleenex and Scott Naturals
Brand Consumer Products Carry FSC Label DALLAS,
October 10, 2011-Kimberly-Clark Corporation
(NYSE KMB) today announced it is the first U.S.
tissue maker to offer branded consumer tissue
products that meet the rigorous sustainable
sourcing requirements of the Forest Stewardship
Council (FSC). Kimberly-Clark's Kleenex brand
facial tissue and Scott Naturals brand products
sold in North America now include fiber sourced
from suppliers who have been independently
certified to follow the highest standards in
forestry management while also protecting high
conservation-value forests and habitat. Consumers
can now identify FSC-certified Kleenex and Scott
brand products by the FSC label on every
package. "This action is a major milestone in
K-C's sustainability journey and a significant
step forward in the consumer adoption of
FSC-certified fiber for bathroom tissue, facial
tissue and paper towels," said Suhas Apte, vice
president - global sustainability. "K-C's
commitment to FSC certification for its Kleenex
and Scott Naturals brands will grow the demand
for sustainably sourced fiber and will encourage
more suppliers to practice responsible forest
management."
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Why 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 the
  GreenLink Forest Stewards Group that is part of
  the Smartwood program.

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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 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.

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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. 70 acres
  is the minimum size forest eligible for
  membership.
• 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 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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How is FSC different from Tree Farm or SFI
Certification?

• 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.
• Plantation forestry is tricky with FSC,
  covertype conversion not allowed in most cases.

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FSC has 10 Principles of Forest Stewardship
versus Tree Farms 8 Standards of Sustainability

• FSC
• Compliance with Laws, FSC
• Tenure Use Rights
• Indigenous Peoples Rights
• Community Relations, Workers Rights
• Benefits from the Forest
• Environmental Impact
• Management Plan
• Monitoring Assessment
• Maintenance of HCVF
• Plantations

• Tree farm
• Commitment to Sustainable Forestry
• Compliance with Laws
• Reforestation Afforestation
• Air, Water, and Soil Protection
• Fish, Wildlife and Biodiversity
• Protection of Biological Biodiversity
• Protection of Special Sites
• Forest Aesthetics

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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 criterion, then there are indicators or
   specific variables that tell whether a criterion
   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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Things you must know.

• FSC Principles
• Audit Process
• Management Plan requirements
• Monitoring requirements
• Chain-of-Custody requirements
• Leaving the Group
• Corrective Action Request Process (CAR)
• Suspension or Expulsion
• Complaints Process

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FSC Principles

1. Compliance with Laws and FSC Principles
   Forest Management shall respect all applicable
   laws of the country (USA) in which they occur and
   international treaties to which the country (USA)
   is a signatory, and comply with all FSC
   Principles and Criteria.

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1. Tenure and Use Rights and Responsibilities
   Long term tenure and use rights to the land and
   forest resources shall be clearly defined,
   documented and legally established.
2. Indigenous Peoples Rights
   The legal and customary rights of
   indigenous peoples to own, use and manage their
   lands and resources shall be recognized and
   respected.
3. Community Relations and Workers Rights
   Forest management operations shall maintain or
   enhance the long-term social and economic well
   being of forest workers and local communities.

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1. 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 and
   social benefits.
2. Environmental Impacts
   Forest management shall conserve
   biological diversity and its associated values,
   water resources, soils, and unique and fragile
   ecosystems and landscapes, and, by so doing,
   maintain the ecological functions and integrity
   of the forest.

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• Management Plan
  A management plan appropriate to
  scale and intensity of operations shall be
  written, implemented and kept up-to-date. The
  long-term objectives of management, and the means
  of achieving them, shall be clearly defined.
• Monitoring and Assessment
  Monitoring shall be conducted appropriate
  to scale and intensity of management to assess
  the conditions of forest, yields of forest
  products, chain-of-custody, management
  activities, and their social and environmental
  impacts.

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1. Maintenance of High Conservation Value Forests
   (HCVF)
   Management activities in high conservation
   value forests shall maintain or enhance the
   attributes which define such forests. Decisions
   regarding HCVFs shall always be considered in
   the context of a precautionary approach.
2. Plantations
   In addition to compliance with
   the above principles, plantations should
   complement the management of, reduce pressures on
   and promote the restoration and conservation of
   natural forests.

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Audit Process

• Auditing for compliance is the key aspect of any
  forest certification scheme.
• Forest Stewardship Council sets out Principles
  and Criteria while independent certifying bodies
  approved by FSC actually perform the auditing.
  GreenLink uses Smartwood.
• You must allow GreenLink and Smartwood access to
  your property for audit inspections.
• Properties selected for audit in the GreenLink
  Forest Stewards Group for a particular year are
  random and based on a statistical sampling model.
• Information collected during an audit is strictly
  confidential and auditors or GreenLink personnel
  have no legal rights or jurisdiction over a
  landowner whatsoever.

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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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Monitoring Requirements

• Internal Group Monitoring vs. Property Level
  Reporting
• Internal Group Monitoring is conducted by
  GreenLink personnel to verify compliance, educate
  and advise, so that potential problems are
  avoided during the formal audit process. Large
  Landowners are visited yearly while the smallest
  landowners will be visited at least once over a 3
  year period.
• Property level monitoring and reporting is done
  by Landowners or their Forestry Professionals. A
  yearly forest activities report is required and a
  harvest report/checklist must be filed with
  GreenLink after each individual harvest
  operation.

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Chain - of - Custody

• Chain-of-Custody (COC) refers to the process of
  tracking forest products from individual forests
  into the production process so that end-users can
  be assured the wood products they purchase are
  from sustainable, certifed forests.
• You will be entitled to use the GreenLink Forest
  Stewards (COC) number.
• However, you must follow exactly the rules
  involving contracts and/or purchase orders as
  outlined in the GreenLink Member Handbook to
  assure the integrity of the process.

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If You Wish to Leave the Group

• You may choose to leave the Group at any time
  with no obligations whatsoever. However
  membership and management fees will not be
  refunded by GreenLink.
• If you choose to move to another FSC group then
  GreenLink will assist in file transfers.
• If you choose to leave, then a letter stating the
  reasons for withdrawal and the date of effective
  withdrawal is required

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Corrective Action Request (CAR)

• This is a formal process to address landowner
  deficiencies found by a GreenLink Internal
  Monitor or Certifying Body Auditor.
• GreenLink Manager follows 3 Steps 1)
  Formally record the problem and communicate with
  the landowner or representative. 2) Follow-up
  with Landowner to see that he has studied the
  problem and has a plan for resolution. 3)
  Confirmation that the problem has been resolved.
• A CAR Form is issued to the Landowner so that all
  the details of the problems are outlined and the
  process followed correctly.

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Suspension or Expulsion

• Failure to correct a CAR, failure to pay fees,
  improper use of the chain-of-custody number are
  examples of issues that may warrant suspension or
  expulsion.
• Member will be notified by certified letter and
  60 day suspension starts immediately. Manager
  has option to extend suspension longer than 60
  days. Chain-of-Custody cannot be used while in
  suspension.
• If a member cannot rectify the problem then
  expulsion occurs.

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Complaints

• If a Group Member has a complaint against the
  Group Manager then he/she can submit the
  complaint in writing and with a follow-up phone
  call.
• The Group Manager will respond within 30 days.
• If the Member is not satisfied with the response,
  then the Member and Manager will abide by the
  decision of the Complaint Resolution Committee, a
  committee made up of 3 retired forestry
  professionals not affiliated in any other way
  with GreenLink.
• The Complaint Resolution Committee will also be
  called upon for consultation should outside
  parties file a complaint against the entire Group

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What If You Are Interested?

1. Understanding this presentation is Step 1, ask
   questions !!!!
2. Show you can meet the pre-enrollment criteria
   including a management plan that meets FSC
   requirements.
3. Review the GreenLink Handbook understand and ask
   more questions about how the group operates.
4. Finally, there is an on-the-ground inspection of
   the property by the GreenLink Group Manager to
   assess eligibility before sign-up.

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In Summary

• If you are a good Land Steward, do not mind
  paperwork, and would like 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 offers a cost effective
  and independent way to obtain FSC certification.