PERCEPTION VS. REALITYScott Jones

CEO, Forest Landowners Association

SC Forestry Association Annual Meeting

Thursday October 31, 2013; Grove Park Inn, Asheville, NC

Forest Landowners Association

Founded in 1941 to be the leading organization promoting the rights of all private forest landowners.

48 states

43 million acres

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.

Issues are born in several areas and decision are driven by varying factors.

1) Congress and Administration2) Courts3) Markets4) Customers – becoming the new regulators

Current Issues facing Mgmt.

Congress and Administration

Debt Deficit Spending Courts Government

Shutdown

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)

Advocacy Group Rankings Most Frequent Environmental Group Plaintiffs

Source: U.S. Chamber of Commerce

Markets

Regulation Customers

Customers

Becoming the new regulators

PERCEPTION

ISREALITY

PERCEPTION

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

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

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.

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

100% FSC CertifiedBloomberg: 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.

Source: Corporate Sustainability Reports

100% certified materials (achieved or reaching) w/ preference for FSC

Source: Corporate Sustainability Reports

Certified Content with no preference towards single program

Certified Content with no preference towards any ONE 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

Source: Corporate Sustainability Reports

There is a need for a realityCheck

U.S. in 1900 U.S. in 2000

U.S. Housing Demographics

Population: 76 million

Median Income: $490/yr

Housing Starts: 189,000

Population: 281 million

Median Income: $45,000

Housing Starts: 1.6 million

Problems and Solutions

How did we get to this point?

How do we change the perception of private forests as a problem?

The Forestry Community a fragmented constituency?

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.

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.

The Audience

Policy Makers and their staff

Media

Forest Landowners

General Public

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

Partnerships are the

key

Thank You!