SCIENTIFIC CERTIFICATION SYSTEMS Lou Pezet Lead Auditor, Chain-of-Custody Certification Services

1. SCIENTIFIC CERTIFICATION SYSTEMS Lou Pezet Lead Auditor, Chain-of-Custody Certification Services lpezet@comcast.net Tel 313 585 1011 Fax 313 389 4996 www.scscertified.com

2. FSC Print & Sustainability FSC Introduction Ford Educational Center, Detroit Zoo April 22, 2008 Louis M. Pezet Lead Auditor, Chain-of-Custody Certification Services Scientific Certification Systems www.scscertified.com

3. FOREST STEWARDSHIP COUNCIL • Global membership organization founded in 1993 • Environmental, social, economic chamber consensus on principles and criteria of responsible forest management • System built around 3rd party verification • Certifiers accredited for forest management and chain-of-custody

4. What is the Goal of the Forest Stewardship? The goal of FSC is to promote environmentally responsible, socially beneficial and economically viable management of the world's forests by establishing a worldwide standard of recognized and respected Principles of Forest Stewardship.

5. FSC Principles for Forest Stewardship. • #1: Compliance with laws and FSC Principles • #2: Tenure and use rights and responsibilities • #3: Indigenous peoples' rights • #4: Community relations and worker's rights • #5: Benefits from the forest • #6: Environnemental impact • #7: Management plan • #8: Monitoring and assessment • #9: Maintenance of high conservation value forests • #10: Plantations

6. SCIENTIFIC CERTIFICATION SYSTEMS • Leader in 3rd party environmental certification • Founded in 1983, Forest Management since 1991 • Internationally renown innovator in the development of certification systems • Founding member of the Forest Stewardship Council • FSC portfolio: - 67 Forest Management certificates - 520 current COC certificates - 32 countries

7. SCS Certification Programs & Brands

8. SCS Accredited Certification Programs The Marine Stewardship Council (MSC) is a non-governmental organization whose purpose is to preserve marine resources worldwide The Forest Stewardship Council (FSC) is an international non-profit organization founded in 1993 to support environmentally appropriate, socially beneficial, and economically viable management of the world's forests. The National Organic Program (NOP), directed by USDA, establishes standards for the production and handling of organic products (food and non-food).

9. SOURCE VERIFICATION AND REPEATING CLAIMS • Chain of Custody matches inputs to outputs based on a “yes” or “no” type certification status • Source verification employs 3rd party auditing of suppliers to monitor the totality of inputs into a product line on a batch, random sample or line-item basis • Preferred vendor programs institutionalizes continuous improvement against company driven standards, in a manner that allows the pass-through of claims to customers

10. What is FSC-Certified Product? • The definition of FSC-certified product has evolved and expanded over the past 9 years • Prior to 1998 and the advent of “percentage based claims,” “FSC-Certified” meant product manufactured from wood fiber exclusively sourced from forests holding a FSC FM certificate; that is, 100% certified content • From 1998 to 2004: FSC-certified product was manufactured either exclusively from FSC certified wood fiber or a combination of certified, uncertified fiber and “neutral” fibers; minimum certified content of between 17.5% and 30%

11. Chain of Custody Certification • CoC certification exists because FSC is a label-based scheme • The driver is truth in advertising • CoC certification confirms that handlers/processors of certified product along the value chain can maintain the integrity of certified supplies • CoC certification audits for manufacturers are currently conducted against either of two FSC Standards • By the end of 2007, the old CoC Standard will be phased out • For printers, the basics of certification will remain the same • Certification is awarded under 5-year contracts, subject to annual audits

12. CoC Certification (cont.) • Approximately 6,000 CoC certificate holders, worldwide, in 70+ countries

13. Chain of Custody Certificates by Sector

14. The Paper Sector: Most Active FSC CoC Sector over the Past 3 Years • One out of three new CoC certificates issued in North America in the past 3 years are in the paper chain; the strength of this sector shows no sign of abating (there are 32,000 print shops just in the U.S.) • At present, there are approximately: • 160 certs issued to paper manufacturers • 75 certs issued to paper distributors • 500+ certs issued to printers • 100+ certs issued to pulp manufacturers and traders

15. Certification process • Application • Documented Control System (DCS) preparation • On-site audit • Certification • CoC registration number is assigned • Monitoring • Annual audits • On-going communication • Logo approvals • Standards advice

16. Other Areas of Concern to Print Companies • Time frame for certification • ~4 weeks from date of application, depending on readiness and number of facilities • Cost • Logo approvals • SCS guidelines for proper logo use and steps to logo approval will assist the process • If correct steps are followed, SCS returns logo approvals within same day

17. Examples of FSC On-Product Labels

18. For More Information • www.certifiedwood.org • www.fsc.org • www.fsc-info.org • www.fscus.org/paper/ • http://papercalculator.org • www.greenpressinitiative.org • www.scscertified.com

19. CONCLUSIONS • FSC COC offers a kind of “turn-key” transparency – if you can play by the FSC rules then you should • Source Verification can also be achieved in-house through standards development and 3rd party supplier audits • SCS can be your partner in program design and in 3rd party auditing.

20. SCIENTIFIC CERTIFICATION SYSTEMS Lou Pezet Lead Auditor, Chain-of-Custody Certification Services lpezet@comcast.net Tel 313 585 1011 Fax 313 389 4996 www.scscertified.com