A Wood Products Company’s Response to the

Business Environment

presented to

Overview

Introduction to The Collins Companies

Do the Right Thing

Forest Stewardship Council

The Natural Step

More Q&A

Founded in Pennsylvania in 1855

Began sustainable forest management in California, 1940

500 one-acre permanent growth plots determine annual growth

Privately-held company

Values and ethics determine forest management and operating philosophies

Headquartered in Portland, Oregon

Softwood Lumber: dimension, industrial, commonsHardwood Lumber and millwork (cherry, red & hard maple, poplar, red & white oak, birch, beech and ash)Particleboard: western pineTruWood Siding and Trim

Six manufacturing plants

900+ employees

FSC News & Views, Jan. 2005

Certification

Collins Pennsylvania Forest (PA) 126,000 acres in 1994

Collins Lakeview Forest (OR, CA) 75,000 acres in 1998

Collins Almanor Forest (CA) 94,000 acres in 1993

A Paradigm for Sustainable Wood Products

Company Vision StatementDo the Right Thing

Forest Certification Forest Stewardship Council

The Natural StepJourney to Sustainability

Collins’ Vision Statement

Do The Right ThingPassion for Improvement

Powerful Teams

Premier Customer Service

Sustain All Resources

Profit is Vital

CollinsWood® is The Collins

Companies product line of Forest Stewardship Council certified products

Key Points of FSC Certification

• Market driven approach to offer an incentive for good forest management.

• Chain of custody certification to insure consumers receive wood from these forests.

• Independent audit of forest management plans & practices for:

•Timber resource sustainability•Forest ecosystem maintenance•Socio-economic contribution & impact

• FSC principles and criteria developed in early 90’s

What it means in our forest.

Sustainable - cut no more than nature replenishes, about 1.7% per year; rely on natural regeneration, except in special circumstances

Diversity: multiage & multispecies

Set aside zones, wetlands, wildlife habitats

Contribution to the local community

Remove the dead and dying, diseased and deformed

Leave the trees that are “in the prime of their lives”

FSC Certification-The Why, for the Collins Co’s

Fit our corporate cultureAs a business, you must differentiate yourselves from your competition based on your strengths

There is a market segment that values it

Certification is a growing market force

Media coverage of rainforest destruction Visibility of current forest management

practices: clear cuts, slides, river quality, etc. Societal distrust of self-proclamations Heightened sense of social and

environmental responsibility Desire to push forest products industry to

improve forest management practices Maintain market access: green building

programs (LEED, Earth Advantage, etc.)

FSC Certification-The Why, for the industry

Certification – by whom?

Competing agendas: FSC Certification SFI Program from AF&PA (industry-sponsored) ISO 14001 (International Standards Org for EMS) Other national and regional programs:

Canadian’s CSA Pan European, expanding to global - PERC Indonesia Finnish Forest Certification System UK Woodland Assurance Scheme

Certification & the Market Big Box home centers are pushing their vendors to

use FSC certified products in the products they sell.

Big Boxes are buying FSC certified products.

US Green Building Council *LEED Standards are creating a pull though demand, particularly in with municipalities and education.

Hillsdale Library – LEED Gold

*Leadership in Energy and Environmental Design

Certification & the Market

Epler HallPortland State University Buildings

• LEED Silver Rating, USGBC• Tax credits

Broadway Housing

Certification & the Market

OHSU takes green building higher

Green engineering starts in Portland, spreads worldwide

December ‘05

OHSU 's Center for Health & Healing at South Waterfront – Shooting for LEED Platinum!

Examples of “second & third party” certification:

Certification – The Marketing of Integrity

www.eco-label.org

The First Name in …

The Collins Companies was the first forest products company in the US to:

Become FSC certified Collins Almanor Forest and Chester,CA Sawmill

Implement the principles of The Natural Step

Non-profit that uses a science-based, systems framewok to help us understand and move towards sustainability.

Vision: a global shift to ecological and social sustainability.

The Natural Step engages in training and consulting, research and development, and community outreach.

Four System Conditions

Reducing our dependence on mining and fossil fuels.

Reducing our dependence on unnatural substances. (synthetics)

Reducing our dependence on nature consuming activities.

Increasing efficiencies

1. What we take from the Earth’s crust

2. What we make in the lab

3. What we maintain from land and sea

4. How efficient and equitable we are

Understanding The Natural Step System Conditions

TNS FRAMEWORK

View of the Current Situation (The "Funnel")

Increasing demandfor building products

Decreasing supplyof non-renewablebuilding products

Bank of America FoundationBaugh ConstructionCity of PortlandThe Collins CompaniesGerding/Edlen Development Co.MetroMultnomah CountyNeil Kelly Co.

TNS Founding Members in PDX

NIKE Inc.Norm ThompsonNorthwest Earth InstitutePacifiCorpPortland General ElectricRejuvenation Inc.University of Portland

Ankrom Moisan ArchitectsAshforth Pacific, Inc.BOORA ArchitectsCarleton Hart ArchitectureCollege Housing NorthwestDupont Flooring SystemsFletcher Farr AyotteGBD Architects, Inc.

TNS Sustaining Members in PDX

Hewlett PackardInnerspace Office SolutionsKPFF Consulting EngineersLSW Architects, PCMahlum ArchitectsMelvin Mark CompaniesMithunMt. Hood Meadows

Northwest Energy Efficiency AllianceNW NaturalOregon DEQPAE Consulting EngineersPendleton Woolen MillsPortland State Portland State UniversityUniversityProgressive Investment Management

TNS Sustaining Members in PDX

Re:Source OregonSERA ArchitectsShoreBank PacificSoderstrom ArchitectsSRG PartnershipThompson Vaivoda & AssociatesTri-MetURS CorporationYost Grube Hall ArchitectureZimmer-Gunsul-Frasca Partnership

Unsustainable Society

The Natural Cycle(Sustainable)

1997 Adopted The Natural Step JTS implemented

1998 Klamath Falls 1999 Kane Hardwoods 2001 Collins Pine & Freemont Sawmill 2002 Builder’s Supply 2006 Becoming integrated into how we think,

no longer a stand-alone program at some facilities “JTS moments” being recorded

Collins’ Journey to Sustainability

JTS Structure

E T ea m PET

R ecycle W ET

Adopt-A-H ighw a y Journey Aw a reness (JAT )

C lea n Air (C AT ) Prod.Pkg.& D esign (PP& D T )

JT SPlant Facilitator, 4 Unit Coordinators & Portland Coordinator

R. Hamilton W. Yee D. Craver K. Mieloszyk M. Badorek C. Bailey

M. Martinez

N. Genge

G. Morosin

C. Beagle

T. Huntley

T. Wagenblast

M. Igou

C. MorganS. Theriault

R. Walker

S. Revis

S. Fisher

T. Sims

S. Williams

B. Lockett

B. Larimore

R. Keady

E. PoppeT. DeVore J. Lynch

J. Lowther

T. WilsonT. Cole

E Team WET PET Recycle Highway JAT PD&PT CAT Newsletter

L. McNerney

S. Kennedy

V.P. / G.M.

HB PB PW COM

C. Grenz

Grant search

Portland Sustainability Team - PST

JTS Structure

Process flow

JTS Teams

JTS Core Team

HBMike

Negrevski

PWLynn

Davison

PBDonn Jensen

ComDale Slate

John Lynch Eric Poppe Tom Cole Ted DeVore

Develop Plans & Projects; present status monthly to JTS Core team.

Review & approve team P&Ps; manage & coordinate all JTS activities; maintain continuity activities; develop eco indicators; track results.

Coordinate JTS activities with unit contact and get approval to proceed or continue.

Unit approval of JTS activities on monthly basis.

Multi - team activities take place withstatus and results reported back to JTS core team.

JTS Multi-Team ActivitiesUnit/Plant

Repeatmonthly

Steps:

JTS Process Flow

E-T

eam

PET

WET CAT

JAT Adopt a-Hwy.

PD

& P

TR

ecyc

le

Product

Waste

Energy

Materials

Water Air

Community

JTS Teams

GrantWriting

SustainabilityMatters

WE2T

Reusing condensate reduced water usage by about 6 million gallons per year

Savings $35K/yr

Water conservation contestWater Facts bulletinsDryer discharge used to irrigate landscaping

PET

PET forms used to aid purchase of sustainable products

Created plant-wide listing of 1050 *MSDS sheets to be used to review product use, etc.

*Material Safety Data Sheets

Recycle

Set up to recycle more cardboard - new dumpsters created

Sent >372 cubic yards of cardboard to recycle

New signage for 13 office recycle stations.

Began using 100% recycled paper in copy and fax machines

Eliminate Waste to LandfillsEliminate Waste to Landfills

Successful Activities in Progress

Reuse hardboard defect boards

Opportunities: Reduce paper waste Increase recycle efforts

JAT-Educate and inspire employees

Be the proactive information and knowledge source for employees to:

* Learn about sustainability methods and principles

* Get Involved in activities at work and at home which will have a positive impact on our planet.

JTS UniversityKlamath Falls Campus

JAT - Community Support

Share knowledge and experience

• Schools• Organizations• Neighborhoods

Involvement in community activities which promote a sustainable society

Be a good model to the local community

Particleboard - Capital Projects

Reintroduced sander dust into manufacturing of more particleboard instead of burning it in boiler.

Shut down boiler #7

547 tons less emissionsReduced fiber needs

$562,550/year savings

HammermillReplaced 6 Pallmann with 1 Bliss Hammermill motorElectrical savings over 3 million kwh/year or about $118,200/yr

Energy Team Projects

Making steam traps efficient Estimated savings of $25K/year due to reduction

in natural gas, electricity to pump water and chemicals

Install automatic lighting controls in truck loading area

Savings >21K kwh/yr or $804/yr Reusing condensate from veneer dryer to create

flash steam to treat vault blocks Savings >175,200 million btu/yr or $152K/yr

Operational Projects

Vendor letter regarding biodegradable packaging 2-sided calendar saving $198 ~ Replace compressed air with fan in Caul Blow Off System

Saving >517K kwh/yr or $18K/yr Pallets, eggcrates and cores to be reused by vendors Recycled metals revenue last 9 mos. $5,640 Remnants of old chip inventories sold to *Biomass: $18K

profit Pilot lighting project in storeroom increases lighting while

using less power

*Company in Medford that burns for energy

Portland OfficePortland Sustainability Team Mandate

Coordinate all JTS teams company-wideFocus on reducing & recycling in Portland office

Biodegradable bin in kitchens (coffee/tea grinds) Toner/copier cartridges Transparencies Batteries Paper recycling & reduce advertising mail Separation of glass/tin/plastic Recycled content in printer/copier paper

Functions of Ecometrics

Promote awareness.Track and benchmark

performance.

Eco Indicators

Electricity Usage

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.5

Au

g-9

8

Oct

-98

Dec

-98

Feb

-99

Ap

r-99

Jun

-99

Au

g-9

9

Oct

-99

Dec

-99

Feb

-00

Ap

r-00

Jun

-00

Au

g-0

0

Oct

-00

Dec

-00

Feb

-01

Ap

r-01

Jun

e-01

Au

g-0

1

Indicator

HB (MKW / M 7/ 16)

PB (MKW / M 3/ 4) COM (MKW / Total Prod.)

Functions of Ecometrics

Promote awareness.Track and benchmark

performance.Directs you to specific process

steps for troubleshooting and improvements.

Functions of Ecometrics

Promote awareness.Track and benchmark performance.Directs you to specific process steps

for troubleshooting and improvements.

Prioritize - Guide JTS projectsInfluence the outcome…

How TNS/JTS has improved our triple bottom line (social, environmental and financial)

1998 Klamath Falls: Various projects, sander dust reuse, heat exchanger, new 300 hp motor… => $ 750,000 + savings /year

2001 Kane: Replacing old compressors with new and mill sawdust sold => $ 81,000 savings / year

2001 Chester: More efficient use of log yard transportation methods and equipment => $ 42,000 savings / year

2001 Portland Office: Double sided printing, junk mail returned, less paper faxing => $ 818 savings / year

2002 Lakeview and Klamath Falls: Energy efficiency with back pressure turbine => $ 500,000 savings /year

Natural Step Total Savings => $ 1,373,818 / year Total savings to date ~ $3 million+

“What you make is what you save.”

What has TNS/JTS cost us?(social, environmental and financial)

Costs not well documented Seminars Salary Travel Capital costs (not included, deducted from savings) Volunteer time for committees not counted

Natural Step Total Costs ≈ $50,000/yearTotal costs to date ≈ $200,000

We have the power to make business a truly sustainable practice.

It is about changing your mind set - making a paradigm shift, then acting upon it.

"Unless someone like you cares a whole awful lot,Nothing is going to get better. It's not."

— Dr. Seuss, The Lorax

How you can influence sustainable development

Educate yourselves on the issues. Get involved with TNS, committees,

etc. Incorporate sustainability as part of

what you, and your organization, stand for.

Educate your clients & friends on the issues

The Natural Step www.naturalstep.org

Oregon Natural Step Network www.ortns.org

Collins “links” page www.CollinsWood.com Contact Lee Jimerson, ljimerson@collinsco.com

Educational & Support Resources