GREEN GRADES PCA-BOISE INC.

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1 2015 GREEN GRADES PA P E R I N D U S T RY C O M PA N Y P R O F I L E S PCA-BOISE INC. PACKAGING CORPORATION OF AMERICA (PCA) is primarily a manufacturer of brown corrugated cardboard packaging and in 2013 was acquired Boise Inc., a manufacturer of a wide variety of packaging and paper products primarily white paper. The combination of Boise s primarily western footprint with PCA s existing mills across the US South makes PCA a significant player in the US South and one of the largest producers of containerboard and corrugated packaging products in the US. Based on its production capacity, PCA is the fourth largest producer of containerboard in the United States and the third largest producer of uncoated freesheet office papers in North America. Together in the region, Boise/PCA has corrugated mills in Valdosta, Georgia, DeRidder, Louisiana, Counce, Tennessee and a recycled paper mill in Jackson, Alabama. Currently, the companies have not yet integrated their procurement or certification systems, so the review will incorporate information from both organizations. Boise and PCA did not respond to this survey and all information in this report was derived from publicly available sources.

2 01 FOREST MANAGEMENT CERTIFICATION The Forest Stewardship Council (FSC) s global forest management certification system is the only certification that rigorously defends our forests from habitat destruction, consistently protects water quality, limits clearcutting and recognizes a range of forest ecosystem values. We consider a company s FSC status as a yardstick for measuring its movement towards responsible procurement practices. IT IS CLEAR THAT BOISE AND PCA take different approaches to forest management certification. While Boise acknowledges several different certification systems, they are FSC Chain of Custody certified at all their mills and produce a significant amount of FSC certified papers including many different FSC certified recycled products from their Louisiana mill. Boise is also a member of the FSC US and serves on various working groups and technical committees. On the other hand, PCA adheres solely to the SFI standard and currently has no FSC certifications at all. But there appear to be recent efforts to address expanding FSC Chain of Custody certification adopted in August But, at this time it does not appear that PCA has instituted FSC COC certification. Overall this leaves PCA at the bottom of the pack in the US South.

3 02 ENDANGERED FOREST PROTECTION Irreplaceable forests demand a singular standard of protection. The forests of the Southeastern US are some of the most biodiverse on the planet and include imperiled species habitats, old growth ecosystems, rare forest types, and other high conservation values. We measure the way a company s procurement processes reflect a solid understanding of and value for these truly irreplaceable environments. LEADERSHIP ON ENDANGERED forest issues requires understanding of the location of these forests in the company s wood and fiber purchasing footprint and a clear commitment to keep those last special places out of the supply chain. In the US South, the company does not have a publicly available clear commitment regarding protecting endangered forests and keeping them out of their supply chain. But as cited above, there appear to be recent efforts to address this issue through contractual language adopted in August 2014 which on its face applies to PCA and Boise wherein suppliers must not provide wood from forests where high conservation values are threatened. But, at this time it does not appear that PCA has instituted FSC COC certification or is producing FSC-certified product. On this issue, unfortunately, this puts the company at the bottom of the list for this criteria. 1

4 03 CONVERSION / MAINTENANCE OF NATURAL FORESTS In conservation terms, there is no substitute for a natural forest. Monoculture tree plantations cannot sustain the region s wildlife, biological diversity, water quality, nor can they replicate the carbon storage of natural forests. Plantations can be part of a responsible land use policy in the right context, but we assess a company s commitment to the preservation of the highest value forest landscape: the natural forest. THE COMPANY HAS NO CLEAR commitment stating no procurement of wood from the conversion of natural forests. Boise again has a different perspective that PCA. Boise does not accept wood from forest conversion to non-forest uses pursuant to its PEFC chain of custody work. PCA does not have any public position on this critical issue. But there appear to be recent efforts to address the issue of conversion through contractual language adopted in August 2014 which on its face applies to PCA and Boise wherein suppliers must not provide wood from natural forests that have been harvested for the purpose of converting the land to plantations or other non-forest use. But, at this time it does not appear that PCA has instituted FSC COC certification or is producing FSC-certified product. Overall, this puts the company at the bottom of the list for this criteria. 2

5 04 OVERALL WOOD BASKET STEWARDSHIP AND CONSERVATION INITIATIVES Change starts at the top. As the largest buyers of wood and fiber from the forests of the US South, the pulp and paper industry is uniquely positioned to lead environmental stewardship of the region s forests. We evaluate forest products companies on their financial commitment to funding conservation initiatives, their record of leveraging their influence with landowners as well as working closely with the conservation community including land trusts, nonprofits, universities and government agencies supporting on-the-ground conservation initiatives. BASED ON A REVIEW OF PUBLICLY available information, it is not clear if PCA/Boise is involved in any stewardship or conservation initiatives in the US South. Further, there is no information regarding the conservation efforts of PCA. Unfortunately, this puts the company at the bottom of the list for this emerging criteria. 3

6 05 FOREST CARBON MANAGEMENT Their ability to collect and store carbon make forests a powerful tool in the effort to combat climate change. But deforestation and degredation is the currently the second largest source of greenhouse gas emissions. Here in the United States, the pulp and paper industry is the third largest emitter of greenhouse gases. We gauge a company s commitment to responsible carbon management through its processes and policies. One of the biggest sustainability requirements of the 21st century is managing carbon to address climate change and forests must play a critical part in that effort. Forest management of the 21st century requires attention to maintaining carbon in forests. REGARDING THE NEW EMERGING METRIC of forest carbon management, PCA again lands at the back of the pack. Predecessor Boise Cascade was a member of EPA s former Climate Leaders program with a commitment to reduce overall greenhouse gas emissions by 10% through Like other companies PCA has invested to more efficiently use waste biomass in its processes and implemented a wastewater treatment program. There is no publicly available information regarding forest carbon initiatives beyond using biomass for energy at the facilities. PCA has not yet taken steps regarding understanding forest carbon sinks and carbon flows related to their procurement. Unfortunately this places the company at the bottom of the list along with many of its industry colleagues. 4

7 GREEN GRADES: PCA-BOISE INC. Meets all requirements Meets most requirements Meets some requirements Meets no requirements ENDANGERED FORESTS PROTECTION STEWARDSHIP & CONSERVATION FOREST MANAGEMENT CERTIFICATION MAINTENANCE OF NATURAL FORESTS/ CONVERSION FOREST CARBON MANAGEMENT PO Box 7645 Asheville, NC (828)

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