Craig Howard, RPF, CEA(SFM) March 31, 2009

1. Craig Howard, RPF, CEA(SFM) March 31, 2009

2. Two gold medal Olympians • Michael Phelps – the greatest Olympian ever • Ross Rebagliati – the accidental snow boarder • The common denominator…. • Drugs and gold medals

3. Blood test by IOC – very credible • Medal stripped • “I probably inhaled some second hand smoke” • Medal returned • Gets a national endorsement contract • Successful real estate developer • Named one the five most influential British Columbians. • We should all be punished like this…

4. Wins 14medals • Fastest human ever • Caught on camera phone (not credible) • Apology • Suspended from swimming • “I engaged in behaviour which was regrettable and demonstrated bad judgment. I’m 23 years old and despite the successes I’ve had in the pool, I acted in a youthful and inappropriate way, not in a manner people have come to expect from me. For this, I am sorry. I promise my fans and the public it will not happen again,” • We should all be rewarded like this ??

5. I’m glad there wasn’t Utube when I was 23

7. 10 years and counting • Still fussing about who’s is biggest • COC and area certified are reciprocal • Observations • Forest management • COC • Is any body making money because of this? • Are forests better managed? • Other stuff

8. Its about 1.7% of land mass, 7.1% of global forests…

9. Curling • Junior hockey • Skeleton • Forest certification • Sometimes its good to see if anyone is following before loudly declaring leadership…

13. Areacertified COC certificates

14. FSC may soon be able to claim the most rigorous environmental standard and the most companies that have gone broke • SFI remarkably slow on label use • The market likes FSC

15. Good standard • Great marketing • ENGO’s are strategic • Warm and fuzzy appeal • Different ethical standard of approaching the market place

16. 20 Billion USD in 2008 (FSC) • Follows the bioproducts supply chain • Remember Home Depot? • Paper sector has gone wild

18. It’s a chain • Forest • Mill • Distributor • Processor • Customer

19. 1 forest certificate ($50k) • 1 annual forest audit ($10k) • 5 mill certificates ($5k x 5) • 20 distributor certificates ($3k x 25) • 100 processor certificates ($2k x 100)

20. Initial forest certification revenue = $50k • Annual forest surveillance revenue = $10k • Annual COC revenues = $ 300k • 81 companies certified in Canada

21. Clearly…. The auditors are • Forest Managers – scant evidence of upcharge for certified wood • Mill managers – not much • Distributors – some modest regional upcharge, but not as much as 100% recycled paper • Processors – not much

22. Making money? • Benefits: • Market access • Customer relations • Public relations • Confidence in the sustainability of the bioproduct

23. Making money? • Benefits • The sustainable forestry story follows the chain of custody • The most effective tool I have ever witnessed for talking about good forestry

24. Modest performance improvement • Declining marginal ROI • Hard to fix something that is really good • Plants • Animal • Air • Water • Soil

25. Other stuff • 93% of COC clients reaudited in 2009 have made major capital investment • Large majority are good on revenue and profit • No credit issues evident • Employment reductions are modest • “Certification won’t make a good business but a good business gets certified….”

26. Certification demands improvement in ecological performance • Now into the era of marginal, and largely undetectable ecological improvement • Cost/benefit?

27. Other stuff • All look at ecology • Miniscule consideration of economy • Haircuts on the Titanic?

28. All but 4 states • 19 primaries • Excellent adventure!!!