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An Overview of Rayonier -Southeast Forest Resources’ Sustainable Forestry® Initiative (SFI) Program: 

An Overview of Rayonier -Southeast Forest Resources’ Sustainable Forestry® Initiative (SFI) Program Dan Roach Land Services Manager 2003 BELL Conference July 18, 2003

Discussion Outline: 

Discussion Outline What is Rayonier? What is the SFI program? Who is participating in the SFI program? How does Rayonier implement SFI? Why third-party certification?

What is Rayonier?: 

What is Rayonier? International Forest Products Company Core businesses: Timberland Management & Performance Fibers Manage over 2 million acres of timberland in FL, GA, AL, SC, WA, New Zealand & Tasmania Two performance fiber mills (dissolving pulp, photographic film) Three sawmills Additional operations in South America, Europe, Asia and Australia Headquartered in Jacksonville, FL

What is Rayonier – Southeast Forest Resources?: 

What is Rayonier – Southeast Forest Resources? Division that manages 1.6 million acres of timberland in FL, GA, AL & SC Business strategy: maximize NPV* of every acre of timberland sustainably Third-party SFI Certified 25 Forests ranging from 10,000 to 160,000 acres Headquarters @ Fernandina Beach, FL * NPV = Net Present Value

What is the SFI Program?: 

What is the SFI Program? Definition: Comprehensive system of principles, objectives and performance measures that integrates the perpetual growing and harvesting of trees with the protection of wildlife, plants, soil, water quality and unique areas Assurance that sustainable forestry practices are being used Largest sustainable forestry certification program in the world Input from a variety of stakeholders – including environmental groups, public officials, academia, industry An objective, independent, credible, third party program

SFI Standard: 

SFI Standard Principles (6) Basic practices Objectives (11) Fundamental goals of SFI Performance Measures (41) Means of judging if objectives are being met Core Indicators (118) Common to all verification Assess conformance to SFI performance measures

SFI Program Principles (6): 

Sustainable Forestry: meet the needs of the present while ensuring the future of the forests for generations Responsible Practices (economically, environmentally & socially) Forest Health and Productivity (protection from insects, disease, fire; improved yields, ) Protection of Special Sites (biological, cultural, historical, & geological) Legal Compliance Continual Improvement SFI Program Principles (6)

SFI Participants & Beginnings : 

SFI Participants & Beginnings The SFI program was originally sponsored by the American Forest & Paper Association 204 program participants Participants represent (in US): 84% of paper production 50% of solid wood production 85% of structural panel production and 90% of industrial timberland in U.S. Awarded 1 of 22 Business Awards for Sustainable Development by the UN in 2002 (Johannesburg, S. Africa)

SFI is One of the World’s Largest Sustainable Forestry Certification Programs: 

SFI is One of the World’s Largest Sustainable Forestry Certification Programs

Sustainable Forestry Board: 

Sustainable Forestry Board The SFI program is governed by a multi-stakeholder board (SFB) - 15 members, 66% from diverse non-industry groups: 1/3 environmental/conservation (The Nature Conservancy, Conservation Fund) 1/3 public officials/professional/academic (SAF, Univ. WA) 1/3 industry/landowners Separate entity that oversees the SFI program SFB’s (Sustainable Forestry Board) role in SFI: Owns SFI Standards and Verification Procedures Accreditation & Auditor Review Dispute Resolution & Quality Control

Independent External Review Panel (ERP) Members *: 

Independent External Review Panel (ERP) Members * The Nature Conservancy National Wild Turkey Federation The Conservation Fund Ruffed Grouse Society Department of the Interior American Bird Conservancy Wildlife Management Institute Auburn University Wildlife Management Institute PA Bureau of Forestry Policy Center of NACD USDA Forest Service International Paper Company Texas A&M University The Sampson Group Louisiana State Forester Society of the Protection of NH Forests *As of October, 2002

SFI Program Participants: 

SFI Program Participants U.S. & Canadian Forest Products Companies (Rayonier, IP, Plum Creek, Smurfit Stone Container, G-P, etc.) Conservation Groups (e.g., The Conservation Fund, Society for the Protection of NH Forests) Public Agencies Universities (e.g., Clemson, Yale, NC State, Duke)

SFI Program Supporters: 

SFI Program Supporters American Forests American Tree Farm System® American Legislative Exchange Council The Conservation Fund Council of State Governments Ducks Unlimited Longleaf Alliance Nat’l Asc. of Professional Forestry Schools & Colleges National Association of State Foresters National Fish and Wildlife Foundation *one environmental/conservation position on the SFB has not yet been filled

SFI Program Supporters (cont’d): 

SFI Program Supporters (cont’d) National Wild Turkey Federation National Woodland Owners Association Pulp and Paper Workers Resource Council Quail Unlimited Rocky Mountain Elk Foundation Ruffed Grouse Society Society of American Foresters The Wildlife Society USDA Cooperative State Research Wildlife Management Institute *one environmental/conservation position on the SFB has not yet been filled

Rayonier’s Implementation of the SFI Standard: 

Rayonier’s Implementation of the SFI Standard

Slide17: 

Ensure Long-term Forest Productivity Prompt reforestation (after harvest): Re-plant within 1 year (Rayonier reforests 78% within 1 year) Re-plant within 2 years (Rayonier reforests 100% within 2 years) Protect and maintain forest soil and productivity (mandatory BMP’s, streamside buffer zones, weekly checks) Protect forests from damaging agents (insects, disease, fire, etc.) Support forest research with: - in-house research staff - participation in eight university co-ops Ensure sustainable harvest levels - scheduling harvests using GIS (Geographic Information Systems, genetic algorithms) - growth & yield modeling (Net Present Value calculations on all harvests)

Slide18: 

Protect Water Quality Strict adherence to Best Management Practices (BMP’s) Protect all perennial streams and lakes by delineating buffers BMP training required for employees and contractors Weekly, written monitoring of BMP compliance on all sites

Slide19: 

Enhance Wildlife Habitat & Conserve Biodiversity Protect food, perch or nest trees Not harvesting unique groups of trees/other vegetation Prescribed burning, thinning to improve habitat Leave at least 20% of wetland stands uncut within harvest area Protect threatened and endangered species and their habitat (GIS layer) Required training for all field employees Incorporate wildlife concerns (corridors, etc.) into harvest scheduling

Slide20: 

Manage Impact on Visual Quality Visual buffers along high-traffic roads Actual average harvest size (’02) of 54 acres Three-year Green-Up requirement: No stand of trees is cut until trees on the adjoining areas are 3 years old or 5 feet tall

Slide21: 

Protect Special Sites Identify, plan and manage appropriately Involve independent experts – NatureServe Work with natural heritage and conservation organizations to identify, map and conserve Catalog in GIS and map Examples: Threatened & endangered species habitats State Champion trees Indian mounds Cemeteries Sink holes Fort sites Old homesteads

Why Third-Party Certification?: 

Why Third-Party Certification? - Assures public that forests are being managed sustainably - Gives investors confidence that their investment is being managed wisely - Responding to need identified by retailers - Addresses NGO’s concerns regarding retailers procurement policies - Rayonier – 3rd party certified since August, 2001 - Able to use on-product labeling

Slide23: 

On-Product Labeling Primary Producers Manufacturers of forest products (wood, paper, pulp, etc.) sourcing 50% or more of a manufacturing unit’s raw materials from primary sources. Secondary Producers Manufacturers of forest products sourcing more than 50% of a manufacturing unit’s raw materials from secondary sources. Secondary producers include manufacturers of finished forest products such as plywood, furniture, windows, magazines or catalogs.

For more information:: 

For more information: www.aboutsfi.org www.aboutsfb.org www.abouterp.org www.afandpa.org

Objectives Implementation: 

Broaden Practice of Sustainable Forestry Written policies and plans adopting SFI principles – sustainable harvest levels, soil & water protection, wildlife & biodiversity enhancement, staff training, etc. Recreation/education through hunting leases, wildlife management areas, public education (PLT), tours, etc. Objectives Implementation

Slide27: 

Promote Community SFI Participation Public outreach such as: Project Learning Tree Project Wild School programs Temperate Forest Foundation Teachers Tours Tours, presentations, field demonstrations, brochures, forums BELL Conference participation

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