Perception vs. Reality

1. Perception vs. Reality Scott Jones CEO, Forest Landowners Association SC Forestry Association Annual Meeting Thursday October 31, 2013; Grove Park Inn, Asheville, NC

2. Forest Landowners Association • Founded in 1941 to be the leading organization promoting the rights of all private forest landowners. • 48 states • 43 million acres

3. FLA believes that security of property rights is paramount. …the only way for society to enjoy …benefits forests provide and protect the environment …smaller, more efficient and less intrusive government.

4. Current Issues facing Mgmt. Issues are born in several areas and decision are driven by varying factors. 1) Congress and Administration 2) Courts 3) Markets 4) Customers – becoming the new regulators

6. Congress and Administration • Debt • Deficit • Spending • Courts • Government Shutdown

7. Courts • ENGO’s continue to litigate • The Chamber of Commerce Reports from 2009 to 2012, a total of 71 lawsuits were settled under circumstances categorized as sue and settle cases under the Chamber’s definition. These cases include EPA settlements under the Clean Air Act and the Clean Water Act, along with key Fish and Wildlife Service (FWS) settlements under the Endangered Species Act. • Significantly, settlement of these cases directly resulted in more than 100 new federal rules, many of which are major rules with estimated compliance costs of more than $100 million annually. (Source: Chamber of Commerce)

8. Advocacy Group Rankings Most Frequent Environmental Group Plaintiffs Source: U.S. Chamber of Commerce

9. Markets • Regulation • Customers

10. Customers • Becoming the new regulators

11. PERCEPTION

12. PERCEPTION IS REALITY

19. Whose Message is Reaching Congress, the media and the general public?

20. Customers as Regulators ENGO persuasion drives customer demand and risk management with forest products. • Emerging Energy Markets – UK and EU energy policy • Corporate Social Responsibility (CSR) standards

21. Pellet Markets • UK standards currently allow US Wood to participate • EU crafting standards but have not finalized • Could represent 10% of US wood consumption but the key is how the standards are written.

22. Corporate Social Responsibility • Environmental Community has worked in this area for many years. • Impact? • KFC Campaign • Kimberly-Clark • Kraft • Burger King • Nestle • Walmart • Unilever • Xerox • Adidas • Timberland • Nike • McDonalds • Mattel

24. Bloomberg: All publications and office paper are 100% FSC and all 18 global office buildings are LEED certified Domtar: 100% fiber sources FSC certified. Coca-cola: corrugated cardboard 100% FSC. Working for full FSC of all virgin materials for every product Arcadia Publishing: Publishes 700 new titles per year. Manufactures in South Carolina. Tiffany’s: 100% of paper suppliers of Tiffany Blue bags and Tiffany Blue Boxes are FSC certified & all print pieces including catalogs are 100% FSC Estee Lauder: Forest Stewardship Council-certified wood for their wooden makeup pencils. 100% FSC Certified Source: Corporate Sustainability Reports

25. 100% certified materials (achieved or reaching) w/ preference for FSC Source: Corporate Sustainability Reports

26. Certified Content with no preference towards single program Johnson & Johnson: 97% of paper-based packaging and 92% of office paper contains at least 30% post-consumer recycled (PCR) content or fiber from certified forests. Ford: Uses wood, which comes from a certified forests on several interior applications in Ford & Lincoln North American vehicles. JPMorgan Chase 97% of paper purchased in US and Canada contained sustainably certified fiber. Rock-Tenn: 100% chain of custody certifications by 2020. They will accept SFI, FSC, and PEFC. Sources: Corporate Sustainability Reports Certified Content with no preference towards any ONE program Source: Corporate Sustainability Reports

27. There is a need for a reality Check

30. U.S. Housing Demographics U.S. in 1900 U.S. in 2000 Population: 76 million Population: 281 million Median Income: $490/yr Median Income: $45,000 Housing Starts: 189,000 Housing Starts: 1.6 million

31. Problems and Solutions • How did we get to this point? • How do we change the perception of private forests as a problem?

32. The Forestry Community a fragmented constituency?

33. The forestry community has failed to unite in a message or advocacy effort and have created many small wheels of advocacy which are hard to follow for landowners and make them become engaged.

34. There is no one place on the web that serves as the voice of the nation’s private forest landowners. How We Get There Create a powerful website designed to inform and engage the forestry community and inform the media, policy makers and general public.

36. The Audience • Policy Makers and their staff • Media • Forest Landowners • General Public

37. Community Website • Creates ONE go to site for information on issues related to private forestry that will serve both policy makers and forestry stakeholders; • Mobilizes stakeholders to take action and become advocates; • Creates a united messaging campaign on the benefits of forests and the forestry industry

38. Partnerships are the key

39. Thank You!