2017 SFI Public Summary Report. BOISE CASCADE COMPANY Sustainable Forestry Initiative (SFI) Fiber Sourcing Standard. Date: November 30, 2017
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1 2017 SFI Public Summary Report BOISE CASCADE COMPANY Sustainable Forestry Initiative (SFI) Fiber Sourcing Standard Date: November 30, 2017 Project Scope and Objectives PricewaterhouseCoopers LLP (PwC) completed a Maintenance Assessment of Boise Cascade Company s ( the Company or Boise ) Regional Wood Fiber Sourcing operations in North America, which includes operations in Alabama, Georgia, Idaho, Louisiana, Montana, North Carolina, Oregon, South Carolina, Texas, Virginia, and Washington. The fiber sourcing activities are managed by the Central Office in Boise, Idaho. The Lead Assessor was Karen Boyd, EMS (LA). The audit team member was James Lucas, EMS (LA) of PwC. The audit team was accompanied by Brad Holt, Boise s SFI Representative, The primary objective of the assessment was to assess the Company s SFI fiber procurement management system and to evaluate the Company s implementation of the SFI Fiber Sourcing Standard in the field. Indicators All of the indicators in the SFI Fiber Sourcing Standard were within the scope of the assessment, except for Objectives 8, and since none of the land managed by the Company is public land and no fiber is procured outside of the United States or Canada. There were no substitute indicators. Assessment Process The sample for the 2017 assessment was chosen in the Eastern Region at the Thorsby, Alabama mill that includes the state of Alabama, and the Northeast Oregon Region (NEO), headquartered in La Grande, Oregon, which includes the states of Idaho, Oregon and Washington. The Company s fiber sourcing program in both locations is carried out by the respective wood procurement organizations, which provide raw material to Boise Cascade Company s solid wood product manufacturing facilities in Alabama and Oregon. On May 16, 2017, the assessment team conducted interviews and reviewed appropriate documentation to assess policies and procedures, and tested the implementation of SFI program requirements at the procurement office in Thorsby, Alabama. On the afternoon of May 16 and all day May 17, 2017, the assessment team conducted nine supplier interviews in Alabama. Three of the supplier interviews conducted were on active harvest sites. On May 23, 2017, the assessment team conducted interviews and reviewed appropriate documentation to assess policies and procedures, and tested the implementation of SFI program requirements at the Northeast Oregon Region office in La Grande, Oregon. On May 23 25, 2017, the assessment team conducted field visits of purchased stumpage and log purchases and performed supplier interviews in Idaho and Oregon. Ten supplier interviews were conducted: five conducted on-site with one being active. Five purchased stumpage tracts were visited on-site with one being active. 1
2 In total, the audit team spent 1 ½ days at the central office and 5 ½ days on-site for field assessments and supplier interviews. The audit report was dated November 30, Boise Cascade Company has a Regional certification that is divided into three geographical fiber sourcing regions: Eastern (Alabama, North Carolina and South Carolina), Western (Western Oregon, Northeast Oregon and Northeast Washington), and Louisiana Timberlands. PwC uses a rotational audit approach where the central office is audited annually and three geographical areas are sampled on a 3 year rotating schedule that conforms to the International Accreditation Forum Inc. s Mandatory Document 1. Summary of Conformance, Findings, and Good Management Practices Objective Performance Measure Evidence of Conformity Objective 1: Biodiversity in Fiber Sourcing Performance Measure 1.1. Promotion and conservation of biological diversity. documentation review confirm the organization s promotion and conservation of biological diversity. Thorsby s program includes the distribution of two biodiversity flyers: an Alabama specific flyer, and a new flyer that focuses on the North American Coastal Plain biodiversity hotspot that was designated in A biodiversity presentation was also developed for inhouse training and outside audiences. Boise's Northeast Oregon Region utilizes publications from the Oregon Forest Resources Institute to promote and conserve biological diversity. FECV's are located through the states' permitting system, and identified on maps and on the ground by state forestry personnel. Objective 2: Adherence to Best Management Practices Performance Measure 2.1. clearly define and implement policies to ensure that facility inventories and fiber sourcing activities do not compromise adherence to the principles of sustainable forestry. Evidence: Interviews with Boise staff, suppliers and loggers, and documentation review confirm Boise has a program that requires BMPs for both purchased stumpage tracts and delivered purchases that include written agreements, wet weather contingencies, written fiber sourcing policies and process for making the policies available to their wood suppliers. Boise monitors BMP compliance through an inspection process an complies the results which is shared with some loggers and the states where Boise is actively harvesting. One Opportunity for Improvement was identified related to this performance measure which involved communication of BMP monitoring results to all wood suppliers in order to maintain/improve BMP performance. Performance Measure 2.2. monitor the use of best management practices. Evidence: Interviews with Boise staff, suppliers and loggers, documentation review and on-site assessment confirm Boise has a verifiable monitoring system that includes the monitoring of purchased stumpage, random monitoring of delivered purchases, and review and follow-up of state BMP monitoring programs. One Opportunity for Improvement was identified related to this performance measure was related to communication of BMP results to all states, not limited to the more 2
3 Objective 3: Use of Qualified Resource and Qualified Logging Professionals Objective 4: Legal and Regulatory Compliance Objective 5. Forestry Research, Science and Technology active ones, from where wood is received and addition of suggested training topics to these communications. Performance Measure 3.1. Evidence: Interviews with Boise staff, suppliers and loggers and documentation review confirm Boise encourage landowners to promotes the use of qualified logging professionals and utilize the services of qualified resource professionals to forest landowners qualified logging through their contracts, contract terms and conditions, professionals, certified procurement policy and SFI implementation policy. logging professionals State lists of qualified logging professionals are (where available), qualified reviewed to verify training credentials. The Company resource professionals and strives for 100% use of qualified logging professionals to apply principles of and reviews progress as part of their annual sustainable forest Management Review. management to their lands. Performance Measure 4.1. documentation review of Risk Assessments comply with applicable demonstrated that Boise has determined the Eastern federal, provincial, state Region, which includes Thorsby, Alabama s and local forestry and procurement area, and the West Region, which includes related social and the Northeast Oregon Region s procurement area, to be environmental laws and "low risk" for acquiring material through illegal regulations and take steps logging. Contract requirements, verification of the to avoid illegal logging. source of delivered purchases, and monitoring of BMPs from both state and internal processes, and ongoing communications with suppliers also confirm "low risk". Processes are in place to address significant risk in the raw material supply if found. Performance Measure 4.2. take appropriate steps to comply with all applicable social laws at the federal, provincial, state and local levels in the country in which they Program Participant operates. Evidence: Interviews with Boise staff, suppliers and documentation review of written contracts confirm Boise employees have access to relevant laws and regulations through websites, contract language, state SIC participation and legal service providers. They achieve compliance with applicable laws through communication and enforcement of company policies, contract provisions, and contract monitoring. Performance Measure 5.1. Evidence: Interviews with Boise staff, outside stakeholders, and documentation review confirm Boise, individually and/or individually and through active state SIC participation, through cooperative efforts provides funding for various forest research activities involving SFI such as NCASI. Available climate change data is Implementation monitored, and employees have participated in training Committees, associations or on climate change impacts on wildlife and biodiversity. other partners provide inkind Boise Cascade Company does not engage in forest tree support or funding for biotechnology research. forest research to improve 3
4 Objective 6. Training and Education forest health, productivity, and sustainable management of forest resources, and the environmental benefits and performance of forest products. Performance Measure 5.2. individually and/or through cooperative efforts involving SFI Implementation Committees, associations or other partners develop or use state, provincial or regional analyses in support of their sustainable forestry programs. documentation review confirm Boise utilizes state forest action plans, FIA assessments, other research as well as state BMP implementation and conformance monitoring data to support their sustainable forestry programs. Performance Measure 5.3. documentation review confirm Boise monitors available individually and/or climate change data, and employees have participated through cooperative efforts in training on climate change impacts on wildlife and involving SFI biodiversity. Staff demonstrated awareness of climate Implementation change impacts on forests, wildlife and biological Committees, associations or diversity. other partners broaden the awareness of climate change impacts of forests, wildlife and biological diversity. Performance Measure 6.1. documentation review confirm the organization require appropriate requires appropriate training of employees and training of personnel and contractors in order to implement sustainable forestry contractors so that they are practices. competent to fulfill their responsibilities under the SFI Fiber Sourcing Standard. One Opportunity for Improvement was identified related to this performance measure related to raising the level of awareness about the SFI program and some of its requirements by logging contractor s staff. Performance Measure 6.2. work individually and/or with SFI Implementation Committees, logging or outside stakeholders confirms the organization s active participation in state SIC committees and support, through state SICs, initial training and continuing education classes for wood producers. 4
5 Objective 7. Community Involvement and Landowner Outreach forestry associations, or appropriate agencies or others in the forestry community to foster improvement in the professionalism of wood producers. Performance Measure 7.1. support and promote efforts by consulting foresters, state, provincial and federal agencies, state or local groups, professional societies, conservation organizations, Indigenous Peoples and governments, community groups, sporting organizations, labour, universities, extension agencies, the American Tree Farm System and/or other landowner cooperative programs to apply principles of sustainable forest management. outside stakeholders confirm Boise financially supports and actively participates in Alabama, Idaho, Oregon and Washington state SICs. Through SIC support and participation. All states assessed had landowner guides developed by the SIC committees. Letters to landowners and suppliers encourage certification and sustainable forestry practices. Letters to wood suppliers encourage distribution of landowner guides to landowners, which include principles of sustainable forestry and information on American Tree Farm System certification. Performance Measure 7.2. outside stakeholders and documentation review confirm Boise support and promote, at the employees actively engage with the public in numerous state, provincial or other outreach activities. Northeast Oregon has an employee appropriate levels, whose focus is the promotion of working forests to the mechanisms for public USFS and other groups and individuals. Boise outreach, education and personnel are actively involved in their respective home involvement related to communities. sustainable forest management. One Opportunity for Improvement was identified related to this performance measure related to inclusion of SFI information in public relations presentations and taking credit for all outreach activities that Boise has supported. Performance Measure 7.3. establish, at the state, provincial, or other appropriate levels, procedures to address concerns raised by loggers, consulting foresters, employees, unions, the public or other Program review of states SICs websites confirm the respective state SICs have processes in place to receive and respond to public inquiries about practices that appear inconsistent with this standard. 5
6 Objective 8. Public Land Management Responsibilitie s Objective 9. Communicatio ns and Public Reporting Objective 10. Management Review and Continual Improvement Participants regarding practices that appear inconsistent with the SFI Fiber Sourcing Standard principles and objectives. Performance Measure 8.1. Program Participants with forest management responsibilities on public lands shall participate in the development of public land planning and management processes. This Objective is not applicable. The Company does not have forest management responsibilities on public lands. Performance Measure 9.1. A Program Participant shall documentation review confirm the organization provide a summary audit provided a summary audit report prepared by their report, prepared by the certification body to SFI Inc. after the completion of certification body, to SFI their 2016 surveillance audit. Inc. after the successful completion of a certification, recertification or surveillance audit to the SFI Fiber Sourcing Standard. Performance Measure 9.2. report annually to SFI Inc. on their conformance with the SFI Fiber Sourcing Standard. documentation review confirm the organization has a process for collecting information for SFI's annual Progress Report and the 2016 SFI Progress Report was sent to SFI Inc. in a timely manner. Copies of past reports are maintained by the organization to document progress and improvements and demonstrate conformance to the standard. Performance Measure establish a management review system to examine findings and progress in implementing the SFI Fiber Sourcing Standard, to make appropriate improvements in programs, and to inform their employees of changes. documentation review confirm the Company has a management review system that includes commitments, programs and procedures to evaluate effectiveness of implementation of the SFI Fiber Sourcing Standard. Processes are in place to collect, review and report information to management regarding effectiveness in achieving standard objectives and performance measures. The Senior Management Review was conducted in 2016 per standard requirements. 6
7 Objective 11. Promote Conservation of Biological Diversity, Biodiversity Hotspots and High- Biodiversity Wilderness Areas Objective 12. Avoidance of Controversial Sources including Illegal Logging Objective 13. Avoidance of Controversial Sources including Fiber Sourced from Areas without Effective Social Laws Performance Measure ensure that their fiber sourcing programs support the principles of sustainable forestry, including efforts to promote conservation of biological diversity. documentation confirm the Northeast Oregon Region s raw material is sourced from the USA. Process and procedures are in place in the event that raw material is purchased from sources outside the USA and Canada. Performance Measure documentation confirm the Northeast Oregon Region s ensure that their fiber raw material is sourced from the USA. Process and sourcing programs support procedures are in place in the event that raw material is the principles of sustainable purchased from sources outside the USA and Canada. forestry, including efforts to reduce the risk of illegal logging. Performance Measure avoid controversial sources and encourage socially sound practices. Evidence: Interviews with Boise staff confirm the Northeast Oregon Region s raw material is sourced from the USA. Process and procedures are in place in the event that raw material is purchased from sources outside the USA and Canada. Good management practices are noted in the following areas: The level of supervision and oversight on USFS timber sales by Boise staff is very high, and it is clear that logging contractors are getting constant feedback on their performance. Boise's efforts in updating their North American DDS and Risk Assessment resulted in the discovery of the North American Coastal Plain biodiversity hotspot. Boise developed a flyer about the hotspot for educational purposes, and communicated the hotspot s existence to SFI and state SICs. One Boise operation has developed a probation and banned logger list in addition to their trained logger list. The probation list identifies new loggers or those who have expired training. The banned list identifies those who have been involved in inconsistent practice issues, have misused their mill entry credentials or have had logger training lapse beyond the probationary period. 7
8 One Boise operation s log purchase agreement contracting process is used as an opportunity to provide the log seller information on SFI. The contract package includes a printed copy of Boise s procurement policy and a letter with website references for additional information on sustainable forest management. Conclusion Boise has continued to maintain the requirements of the SFI Fiber Sourcing Standard and remains certified to the Standard. The Certificate can be can be obtained by contacting Brad Holt, Forest Certification Manager of Boise Cascade Company at BradHolt@bc.com or More information on Boise Cascade Company s sustainable forestry program can be found at: 8
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