Major Certified Forests of US

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A Wood Products Companys Response to the
Business Environment presented to
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Overview

• Introduction to The Collins Companies
• Do the Right Thing
• Forest Stewardship Council
• The Natural Step
• More QA

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• Founded in Pennsylvania in 1855
• Began sustainable forest management in
  California, 1940
• 500 one-acre permanent growth plots determine
  annual growth
• Privately-held company
• Values and ethics determine forest management and
  operating philosophies
• Headquartered in Portland, Oregon

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Six manufacturing plants 900 employees

• Softwood Lumber dimension, industrial, commons
• Hardwood Lumber and millwork (cherry, red hard
  maple, poplar, red white oak, birch, beech and
  ash)
• Particleboard western pine
• TruWood Siding and Trim

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FSC News Views, Jan. 2005
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Certification
Collins Pennsylvania Forest (PA) 126,000 acres
in 1994
Collins Almanor Forest (CA) 94,000 acres
in 1993
Collins Lakeview Forest (OR, CA) 75,000
acres in 1998
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A Paradigm for Sustainable Wood Products
Company Vision Statement Do the Right
Thing Forest Certification Forest Stewardship
Council The Natural Step Journey to
Sustainability

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Collins Vision Statement

• Do The Right Thing
• Passion for Improvement
• Powerful Teams
• Premier Customer Service
• Sustain All Resources
• Profit is Vital

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CollinsWood is The Collins Companies product
line of Forest Stewardship Council certified
products
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Key Points of FSC Certification

• FSC principles and criteria developed in early
  90s

• Independent audit of forest management plans
  practices for
• Timber resource sustainability
• Forest ecosystem maintenance
• Socio-economic contribution impact

• Chain of custody certification to insure
  consumers receive wood from these forests.

• Market driven approach to offer an incentive for
  good forest management.

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What it means in our forest.

• Sustainable - cut no more than nature
  replenishes, about 1.7 per year rely on natural
  regeneration, except in special circumstances
• Diversity multiage multispecies
• Set aside zones, wetlands, wildlife habitats
• Contribution to the local community
• Remove the dead and dying, diseased and deformed
• Leave the trees that are in the prime of their
  lives

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FSC Certification-The Why, for the Collins Cos

• Fit our corporate culture
• As a business, you must differentiate yourselves
  from your competition based on your strengths
• There is a market segment that values it
• Certification is a growing market force

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FSC Certification-The Why, for the industry

• Media coverage of rainforest destruction
• Visibility of current forest management
  practices clear cuts, slides, river quality,
  etc.
• Societal distrust of self-proclamations
• Heightened sense of social and environmental
  responsibility
• Desire to push forest products industry to
  improve forest management practices
• Maintain market access green building programs
  (LEED, Earth Advantage, etc.)

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Certification by whom?

• Competing agendas
• FSC Certification
• SFI Program from AFPA (industry-sponsored)
• ISO 14001 (International Standards Org for EMS)
• Other national and regional programs
• Canadians CSA
• Pan European, expanding to global - PERC
• Indonesia
• Finnish Forest Certification System
• UK Woodland Assurance Scheme

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Certification the Market

• Big Box home centers are pushing their vendors to
  use FSC certified products in the products they
  sell.
• Big Boxes are buying FSC certified products.

• US Green Building Council LEED Standards are
  creating a pull though demand, particularly in
  with municipalities and education.

Hillsdale Library LEED Gold
Leadership in Energy and Environmental Design
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Certification the Market

• Portland State University Buildings
• LEED Silver Rating, USGBC
• Tax credits

Epler Hall
Broadway Housing
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Certification the Market
December 05

• OHSU takes green building higher
• Green engineering starts in Portland, spreads
  worldwide

OHSU 's Center for Health Healing at South
Waterfront Shooting for LEED Platinum!
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Certification The Marketing of Integrity
Examples of second third party certification
www.eco-label.org
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The First Name in

• The Collins Companies was the first forest
  products company in the US to
• Become FSC certified Collins Almanor Forest and
  Chester,CA Sawmill
• Implement the principles of The Natural Step

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Non-profit that uses a science-based, systems
framewok to help us understand and move towards
sustainability. Vision a global shift to
ecological and social sustainability. The
Natural Step engages in training and consulting,
research and development, and community outreach.
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Four System Conditions
Reducing our dependence on mining and fossil
fuels. Reducing our dependence on unnatural
substances. (synthetics) Reducing our dependence
on nature consuming activities. Increasing
efficiencies
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Understanding The Natural Step System Conditions

• 1. What we take from the Earths crust
• 2. What we make in the lab
• 3. What we maintain from land and sea
• 4. How efficient and equitable we are

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TNS FRAMEWORK
View of the Current Situation (The "Funnel")

Increasing demand for building products
Decreasing supply of non-renewable building
products
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TNS Founding Members in PDX

• Bank of America Foundation
• Baugh Construction
• City of Portland
• The Collins Companies
• Gerding/Edlen Development Co.
• MetroMultnomah County
• Neil Kelly Co.

• NIKE Inc.
• Norm Thompson
• Northwest Earth Institute
• PacifiCorp
• Portland General Electric
• Rejuvenation Inc.
• University of Portland

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TNS Sustaining Members in PDX

• Ankrom Moisan Architects
• Ashforth Pacific, Inc.
• BOORA Architects
• Carleton Hart Architecture
• College Housing Northwest
• Dupont Flooring Systems
• Fletcher Farr Ayotte
• GBD Architects, Inc.

• Hewlett Packard
• Innerspace Office Solutions
• KPFF Consulting Engineers
• LSW Architects, PC
• Mahlum Architects
• Melvin Mark Companies
• Mithun
• Mt. Hood Meadows

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TNS Sustaining Members in PDX

• Northwest Energy Efficiency Alliance
• NW Natural
• Oregon DEQ
• PAE Consulting Engineers
• Pendleton Woolen Mills
• Portland State University
• Progressive Investment Management

• ReSource Oregon
• SERA Architects
• ShoreBank Pacific
• Soderstrom Architects
• SRG Partnership
• Thompson Vaivoda Associates
• Tri-Met
• URS Corporation
• Yost Grube Hall Architecture
• Zimmer-Gunsul-Frasca Partnership

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Unsustainable Society
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The Natural Cycle (Sustainable)
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Collins Journey to Sustainability

• 1997 Adopted The Natural Step
• JTS implemented
• 1998 Klamath Falls
• 1999 Kane Hardwoods
• 2001 Collins Pine Freemont Sawmill
• 2002 Builders Supply
• 2006 Becoming integrated into how we think, no
  longer a stand-alone program at some facilities
• JTS moments being recorded

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JTS Structure
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JTS Structure
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JTS Process Flow
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JTS Teams
Water
Air
WET
CAT
PD PT
E-Team
Product
Energy
PET
Waste
Materials
Recycle
Grant Writing
Sustainability Matters
JAT
Adopt a-Hwy.
Community
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WE2T

• Reusing condensate reduced water usage by about 6
  million gallons per year
• Savings 35K/yr
• Water conservation contest
• Water Facts bulletins
• Dryer discharge used to irrigate landscaping

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PET

• PET forms used to aid purchase of sustainable
  products
• Created plant-wide listing of 1050 MSDS sheets
  to be used to review product use, etc.
• Material Safety Data Sheets

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Recycle

• Set up to recycle more cardboard - new dumpsters
  created
• Sent gt372 cubic yards of cardboard to recycle
• New signage for 13 office recycle stations.
• Began using 100 recycled paper in copy and fax
  machines

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Eliminate Waste to Landfills

• Successful Activities in Progress
• Reuse hardboard defect boards
• Opportunities
• Reduce paper waste
• Increase recycle efforts

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JAT-Educate and inspire employees
JTS University Klamath Falls Campus

• Be the proactive information and knowledge source
  for employees to
• Learn about sustainability methods and
  principles
• Get Involved in activities at work and at home
  which will have a positive impact on our planet.

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JAT - Community Support

• Share knowledge and
  experience
• Schools
• Organizations
• Neighborhoods
• Involvement in community activities which promote
  a sustainable society
• Be a good model to the local community

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Particleboard - Capital Projects
Reintroduced sander dust into manufacturing of
more particleboard instead of burning it in
boiler. Shut down boiler 7 547 tons less
emissions Reduced fiber needs 562,550/year
savings Hammermill Replaced 6 Pallmann with 1
Bliss Hammermill motor Electrical savings over 3
million kwh/year or about 118,200/yr
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Energy Team Projects

• Making steam traps efficient
• Estimated savings of 25K/year due to reduction
  in natural gas, electricity to pump water and
  chemicals
• Install automatic lighting controls in truck
  loading area
• Savings gt21K kwh/yr or 804/yr
• Reusing condensate from veneer dryer to create
  flash steam to treat vault blocks
• Savings gt175,200 million btu/yr or 152K/yr

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Operational Projects

• Vendor letter regarding biodegradable packaging
• 2-sided calendar saving 198
• Replace compressed air with fan in Caul Blow Off
  System
• Saving gt517K kwh/yr or 18K/yr
• Pallets, eggcrates and cores to be reused by
  vendors
• Recycled metals revenue last 9 mos. 5,640
• Remnants of old chip inventories sold to
  Biomass 18K profit
• Pilot lighting project in storeroom increases
  lighting while using less power
• Company in Medford that burns for energy

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Portland Office

• Portland Sustainability Team Mandate
• Coordinate all JTS teams company-wide
• Focus on reducing recycling in Portland office
• Biodegradable bin in kitchens (coffee/tea grinds)
• Toner/copier cartridges
• Transparencies
• Batteries
• Paper recycling reduce advertising mail
• Separation of glass/tin/plastic
• Recycled content in printer/copier paper

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Functions of Ecometrics

• Promote awareness.
• Track and benchmark performance.

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Eco Indicators
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Functions of Ecometrics

• Promote awareness.
• Track and benchmark performance.
• Directs you to specific process steps for
  troubleshooting and improvements.

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Functions of Ecometrics

• Promote awareness.
• Track and benchmark performance.
• Directs you to specific process steps for
  troubleshooting and improvements.
• Prioritize - Guide JTS projects
• Influence the outcome

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How TNS/JTS has improved our triple bottom line
(social, environmental and financial)

• 1998 Klamath Falls Various projects, sander dust
  reuse, heat exchanger, new 300 hp motor gt
  750,000 savings /year
• 2001 Kane Replacing old compressors with new
  and mill sawdust sold gt 81,000 savings /
  year
• 2001 Chester More efficient use of log yard
  transportation methods and equipment gt 42,000
  savings / year
• 2001 Portland Office Double sided printing, junk
  mail returned, less paper faxing gt 818
  savings / year
• 2002 Lakeview and Klamath Falls Energy
  efficiency with back pressure turbine gt
  500,000 savings /year
• Natural Step Total Savings gt 1,373,818 / year
• Total savings to date 3 million
• What you make is what you save.

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What has TNS/JTS cost us?(social, environmental
and financial)

• Costs not well documented
• Seminars
• Salary
• Travel
• Capital costs (not included, deducted from
  savings)
• Volunteer time for committees not counted
• Natural Step Total Costs 50,000/year
• Total costs to date 200,000

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We have the power to make business a truly
sustainable practice. It is about changing your
mind set - making a paradigm shift, then acting
upon it.

"Unless someone like you cares a whole awful
lot,Nothing is going to get better. It's not."

Dr. Seuss, The Lorax
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How you can influence sustainable development

• Educate yourselves on the issues.
• Get involved with TNS, committees, etc.
• Incorporate sustainability as part of what you,
  and your organization, stand for.
• Educate your clients friends on the issues

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Educational Support Resources

• The Natural Step www.naturalstep.org
• Oregon Natural Step Network www.ortns.org
• Collins links page www.CollinsWood.com
• Contact Lee Jimerson, ljimerson_at_collinsco.com