SFI 2022 Certified Sourcing Standard

SFI 2022 CERTIFIED

SOURCING STANDARD

SECTION 5

forests.org

SFI 2022 CERTIFIED SOURCING STANDARD

PART 1: SCOPE AND PURPOSE 2

PART 2: NORMATIVE AND INFORMATIVE REFERENCES 2

PART 3: CALCULATING THE CERTIFIED SOURCING CLAIM 3

PART 4: ORGANIZATIONS OUTSIDE THE UNITED STATES AND CANADA 3

PART 5: CERTIFIED SOURCING DEFINITION 4

PART 6: SALE OF PRODUCTS 4

PART 7: DUE DILIGENCE SYSTEM TO AVOID CONTROVERSIAL SOURCES 5

PART 8: MINIMUM MANAGEMENT SYSTEM REQUIREMENTS 6

PART 9: APPLICATION REQUIREMENTS 8

SFI 2022 CERTIFIED SOURCING STANDARD | 1/8

1.1 SCOPE

This section describes the requirements for Certied Organizations, both primary producers and secondary producers, in the United States or Canada

sourcing SFI Certied Sourcing inputs to make an SFI Certied Sourcing claim. Primary or secondary producers with operations outside of the United

States and Canada should refer to Part 4 of this standard.

Certied Organizations with a valid SFI Chain-of-Custody certicate may use their Chain-of-Custody procedures to account for SFI Certied Sourcing

content and apply the SFI Certied Sourcing label.

A secondary producer must meet all the requirements in the SFI Certied Sourcing Standard to use the SFI Certied Sourcing Label, provided they

do not also hold a SFI Chain-of-Custody Certicate. This includes Part 7. Due Diligence System to Avoid Controversial Sources and Part 8. Minimum

Management System.

1.2 PURPOSE

The purpose of this section is to describe the requirements Certied Organizations must meet to manufacture product with a SFI Certied

Sourcing claim.

1.3 LABEL

This label applies to this section.

2.1 NORMATIVE

The following normative SFI standards are referenced in this document and can be found on the SFI Inc. website at www.forests.org:

i. ISO/IEC 17065:2012 — Conformity Assessment — Requirements for bodies certifying product, process and services

ii. Sections 2 and 3 — SFI 2022 Standards and Rules

iii. Section 6 — Rules for Use of SFI On-Product Labels and Off-Product Marks

iv. Section 8 — SFI Policies

v. Section 10 — Appendix 1: Audits of Multi-Site Organizations

 vi. Section14—SFIDenitions

2.2 INFORMATIVE

The following informative documents are referenced in this section and can be found on the SFI Inc. website at www.forests.org:

i. Section 4 — SFI 2022 Chain-of-Custody Standard

ii. Section 7 — Guidance to SFI 2022 Standards

iii. Section 10 — SFI 2022 Audit Procedures and Auditor Qualications and Accreditation

iv. ISO 9001:2015 Quality management systems — Requirements

 v. ISO14001:2015EnvironmentalManagementSystems—Specicationwithguidanceforuse

GENERAL

PART 1: SCOPE AND PURPOSE

PART 2: NORMATIVE AND INFORMATIVE REFERENCES

SFI-00001

www.forests.org

2/8 | SFI 2022 CERTIFIED SOURCING STANDARD

3.1 Primary producers are manufacturing units that produce forest products (wood, paper, pulp, or composite products) and source 50% or more (by

weight) of their wood-based raw materials directly from primary sources. They must account for 100% of their primary sources as coming from

certied sourcing.

If a primary producersourcesarefromcompany-ownedorcompany-controlledlands,thoselandsmustbethird-partycertiedtotheSFI 2022

Forest Management Standard.

3.2 Secondary producers are manufacturing units that produce forest products and source 50% or more by weight of their wood-based raw materials

from secondary sources.Theymustaccountforatleasttwo-thirdsbyweightofthewoodorwoodberintheproduct(s)ormanufacturingunitas

coming from certied sourcing. The other one-third cannot come from controversial sources.

3.3 Calculation of percentage for use of the certied sourcing claim or label and information in sales documentation is as follows:

3.3.1 Primary producers shall always demonstrate conformance with the requirements of 3.1, which means 100% certied sourcing for

every product group.

a. If less than 5% by weight of a manufacturing unit’s raw material supply comes from secondary sources, these sources are

considereddeminimisandnocerticationofthisportionisrequiredifallisfromU.S.orCanadiansources.

b. A primary producer that sources more than 5% of their raw material from secondary sources (the remaining raw material is from

primarysourcesthatarecertiedtothe SFI Fiber Sourcing Standard’s requirements), is required to meet Part 3, Creating a

certied sourcing Claim, Part 7. Due Diligence System to Avoid Controversial Sources and Part 8. Minimum Management System.

3.3.2 Secondary producers shall specify how they will meet the requirements of 3.2 to conform to the two-thirds rule. They may base the

calculation on a product group or time period, which cannot exceed one quarter. The percentage may be calculated as:

   a.RollingAveragePercentage—Thepercentagecalculatedforwoodberconsumedduring,forexample,thepreviousfourquarters

or 12 months. The period over which the rolling average is calculated shall not exceed one year.

   b.SimplePercentage—Thepercentagecalculatedforwoodberconsumedinthespecicproduct group.

3.3.3 In all cases, the Certied Organization must demonstrate that the requirements of 3.1 and/or 3.2 are met before the claim or label

canbeusedinrelationtoaspecicproduct group or time period.

3.3.4 A secondary producer may use the certied sourcing claim or label on products from a single manufacturing unit as long as the

specicsupplyforthatproduct(s)orforthatmanufacturingunitmeetsallthecontentrequirementssetoutinthisdocument.

3.3.5 The sourcing requirement may be met either at the product line or manufacturing unit level.

3.4 SFI Certied Sourcing Claim: Fiber that conforms with Objectives 1-11 of Section 3, and/or from pre-consumer recycled content, and/or from

post-consumer recycled content, and/or from an acceptable forest management standard.

3.4.1 Certied sourcing claimvericationcanoccurbyaprimary producer’s Section 3 — SFI Fiber Sourcing Standard certicateorSection4

— SFI Chain-of-Custody Standardcerticate,asecondary producer’s SFI Chain-of-Custody StandardcerticateorSFI Certied Sourcing

Standard certicateor,aninvoice,billoflading,shippingdocument,letter,orotherformsofcommunicationsavailabletothecustomer.

4.1 A primary producer or secondary producer outside the United States and Canada must successfully complete an annual audit by an accredited

SFI certication body against the requirements of the SFI 2022 Certied Sourcing Standard.

4.2 A primary producer outside the United States and Canada must account for 100% of its primary sources as coming from certied sourcing.

4.3 A secondary produceroutsidetheUnitedStatesandCanadamustaccountforatleasttwo-thirdsbyweightofthewoodorwoodberinthe

product(s) or manufacturing unit as coming from certied sourcing. The other one-third cannot come from controversial sources.

4.4 An Certied Organization utilizing de minimis amounts of materials sourced from outside of the United States and Canada in their product(s)

must conform to the requirements of the SFI Certied Sourcing Standard — Part 7 Due Diligence System to Avoid Controversial Sources.

GENERAL

PART 3: CALCULATING THE CERTIFIED SOURCING CLAIM

PART 4: ORGANIZATIONS OUTSIDE THE UNITED STATES AND CANADA

SFI 2022 CERTIFIED SOURCING STANDARD | 3/8

Certied sourcingisdenedasrawmaterialsourcedfromthefollowingsourcesconrmedbyacertication body:

5.1 Fiber that conforms with Objectives 1-11 of Section 3 — SFI 2022 Fiber Sourcing Standard’s requirements.

5.2 Pre-Consumer Recycled Content: Forest and tree-based material recovered from waste during a manufacturing process. Excluded is reutilization

of materials such as rework, regrind or scrap generated in a process and capable of being reclaimed within the same process that generated it.

Excluded are by-products resulting from primary production processes, such as sawmilling by-products (sawdust, chips, bark, etc.) or forestry

residues (bark, chips from branches, roots, etc.) as they are not considered waste.

Any claims about pre-consumer recycled content by Certied Organizations or label users shall be accurate and consistent with applicable law.

Certied Organizations and label users are encouraged to consult the U.S. Federal Trade Commission’s guidelines on environmental claims in

product advertising and communication and the guidelines on environmental labeling and advertising issued by the Fair Business Practices

Branch of Industry Canada’s Competition Bureau, as appropriate, and to seek additional information and direction from national accreditation

bodies, national standards bodies and national, state and provincial consumer protection and competition laws.

5.3 Post-consumer recycled content: Forest and tree-based material generated by households or by commercial, industrial, and institutional facilities

in their role as end-users of the product which can no longer be used for its intended purpose. This includes returns of material from the

distribution chain and material from salvage from demolition.

Any claims about post-consumer recycled content by Certied Organizations and label users shall be accurate and consistent with applicable

law. Certied Organizations and label users are encouraged to consult the U.S. Federal Trade Commission’s guidelines on environmental claims

in product advertising and communication and the guidelines on environmental labeling and advertising issued by the Fair Business Practices

Branch of Industry Canada’s Competition Bureau, as appropriate, and to seek additional information and direction from national accreditation

bodies, national standards bodies, and national, state and provincial consumer protection and competition laws.

5.4 Certied forest content, whichincludescontentfromspecicforesttractsthatarethird-partycertiedtoconformwiththeSFI 2022 Forest

Management Standard’s Objectives 1-17 requirements or other acceptable forest management standards (e.g., CAN/CSA-Z809 and American Tree

Farm System).

The organization shall establish adequate measures to ensure that the labeled products do not come from controversial sources. See Part 7 on due

diligence system to avoid controversial sources.

6.1 If requested to provide a SFI certied sourcing claim, the Certied Organizationcan,atthepointofsaleortransferofthecertiedproductsto

thenextentityinthesupplychain,providecustomerswithwritteninformationconrmingthesupplier’scertiedstatusandanofcialSFIclaim

statement. This can be in the form of, but not limited to, an invoice, bill of lading, shipping document, letter, or other forms of communications

available to the customer at the time of the sale of the product.

6.2 When claims are communicated, the Certied Organizationshallensurethatdocumentationofthecertiedproductsclearlystatesatleastthe

following information:

a. Certied Organization’s identicationandSFI 2022 Certied Sourcing Standard or SFI 2022 Chain-of-Custody Standardcerticate

number,

b. manufacturing facility(s) supplying the product(s) covered by the claim,

c. range of dates for manufacture of the product(s) covered by under the claim,

d. description of product(s) covered by the claim,

   e.anofcialSFI claim statement:

i. SFI X% Certied Sourcing or SFI Certied Sourcing

6.3 If the Certied Organization uses the logo, both on-product and off-product usage shall be carried out according to the terms and conditions of

the SFI Ofce of Label Use and Licensing and the Section 6 — Rules for Use of SFI On-Product Labels and Off Product Marks, in the SFI 2022

Standards and Rules document.

PART 5: CERTIFIED SOURCING DEFINITION

PART 6: SALE OF PRODUCTS

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PART 7: DUE DILIGENCE SYSTEM TO AVOID CONTROVERSIAL SOURCES

7.1 DEFINITION OF CONTROVERSIAL SOURCES:

a. Forest activities that are not in compliance with applicable state, provincial, federal, or international laws.

b. Forest activities that are contributing to regional declines in habitat conservation and species protection (including biodiversity and

special sites, Alliance for Zero Extinction sites and key biodiversity areas threatened and endangered species).

c. Conversion sources originating from regions experiencing forest area decline.

d. Forest activities where the spirit of the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights

at work (1998) are not met.

e. Forest activities where the spirit of the United Nations Declaration on the Rights of Indigenous Peoples (2007) are not met.

f. Fiber sourced from areas without effective social laws.

g. Illegal Logging including trade in CITES (The Convention on International Trade in Endangered Species of Wild Fauna and Flora)

listed species.

h. Conict Timber

   i. Geneticallymodiedtreesviaforest tree biotechnology.

7.2 ACCESS TO INFORMATION

7.2.1 The Certied Organization shall collect information on the source of the forest-based product, through a due diligence system to

address the likelihood of sourcing from controversial sources. This includes:

   a.Identicationoftreespecies,orlistoftreespeciespotentiallyincluded,bytheircommonnameandortheirscienticname

where applicable.

b. Country or region of harvest of the material.

c. If requested by their customer, provide the information required in a. and b.

Recycled content is exempt from a due diligence system to address the likelihood of sourcing from controversial sources.

7.2.2 The Certied Organization can consider forest-based products low risk and exempt from due diligence when:

a. Procured from a supplier with a valid SFI Section 2 (SFI 2022 Forest Management Standard)certicate,orotheracceptable forest

management standards,thatclearlyindicatesthatthesourceiswithinthescopeofthecertication;or

b. Procured from a supplier with a valid SFI Section 3 (SFI 2022 Fiber Sourcing Standard)certicatethatclearlyindicatesthatthe

sourceiswithinthescopeofthecerticationand/ortheduediligencesystem;or

c. Procured from a supplier with a valid SFI Section 4 (SFI 2022 Chain-of-Custody Standard), or other credible Chain-of-Custody

standardcerticateand/orduediligencesystem;or

d. Procured from a supplier with a valid SFI Section 5 (SFI 2022 Certied Sourcing Standard)certicateand/orduediligencesystem.

7.3 DEVELOP AND IMPLEMENT A DUE DILIGENCE SYSTEM

7.3.1 The Certied Organization shall develop and implement a due diligence system (DDS) to assess and manage the risk of sourcing

forest-based products from controversial sources in accordance with the requirements of this standard.

7.3.2 The DDS risk assessment shall classify material into low- and high-risk categories.

7.3.3 The risk assessment shall be carried out at the regional level unless risk is consistent at the national level.

7.3.4 The Certied Organization shall review, and if necessary, revise its risk ratings on at least an annual basis.

7.3.5 The Certied Organizationshallconductariskassessmentbeforethersttimeofdeliveryforeachnewregionofsupply.

7.4 SUBSTANTIATED CONCERNS DUE TO ORGANIZATION’S RISK ASSESSMENT

7.4.1 The Certied Organization shall have a program to assess any substantiated concern. A substantiated concern is information supported

by proof or evidence, indicating that forest-based material originates in controversial sources. Substantiated concerns can be concerns

by third parties, as well as concerns of the organization itself.

7.4.2 The Certied Organizationshallupdateitsriskassessmenttoreectsubstantiatedconcernsassociatedwitharegionoforigin

identiedthroughinternaldataorpublicdata.

SFI 2022 CERTIFIED SOURCING STANDARD | 5/8

7.5 MANAGEMENT OF HIGH-RISK FOREST-BASED PRODUCTS

7.5.1 Where the risk assessment determines high risk, the Certied Organization shall implement a program to mitigate such risk and require

a signed contract and/or self-declaration that the supplied forest-based product does not originate from controversial sources.

7.5.2 Foreachsupplysourcewheretheriskishigh,theriskassessmentshallalsoidentifythespecicveriablecontrolsthatthesupplierhas

in place to substantially reduce the risk of sourcing forest-based products from controversial sources.

7.5.3 Where a Certied Organization receives forest-based products, and then learns these forest-based products are from controversial

sources, if possible, these forest-based products shall be segregated and prevented from entering the supply chain. If forest-based

producthasalreadyenteredthebersupplysystemandcannotbesegregatedadditionalcorrectivemeasuresshallbeimplemented

to avoid future controversial sources.Ifsubsequentvericationdemonstratesthattheriskofthisberoriginatingfrom controversial

sources is low, these forest-based products can re-enter the supply chain.

7.5.4 The Certied Organization shallidentifytheveriablemeasuresitmustimplementacrossthefullsupplychainforeachsourceofsupply

identiedashighrisktoensurethatthesupplyisnotfromcontroversial sources which will include:

   a.assessingtheoperatingeffectivenessofveriablemeasures,througheld-basedverication.

   b.fordirectsources,includeeldanddocumentvericationofcontroversial sources risk factors back to the forest units from which

berissourced.

   c.forindirectsources,includesiteanddocumentvericationofsuppliers(suchaslumbersuppliers,chipsuppliersandwoodyards)to

establish the absence of controversial sourcesriskfactorsintheirinputsandsample-basedeldvericationoftheirsupplysources

backtotheforestunitsfromwhichtheysourceber.

7.5.5 Wheresamplingisconductedaspartofthevericationprogram,thesamplingprogramshouldberiskbasedtodrawvalidconclusions

acrossallberinputs.

7.6 AVOIDANCE OF CONTROVERSIAL SOURCES

7.6.1 Wheretheveriablemeasuresarenotconsideredtobeeffectiveinreducingtheriskofreceivingberfromcontroversial sources to low,

berfromthesesourcesshallbeavoided.

A primary producer certiedtothe SFI 2022 Fiber Sourcing Standard (Section 3, Objectives 1-11), meets the minimum management systems

requirementsspeciedinPart8ofSFI 2022 Certied Sourcing Standard.

8.1 GENERAL REQUIREMENTS

The Certied Organization shall operate a management system in accordance with the following elements of this standard, which ensure correct

implementation and maintenance of the certied sourcing process. The management system shall be appropriate to the type, range and volume of work

performed.

Note: A Certied Organization’s quality (ISO 9001:2015) or environmental (ISO 14001:2015) management system can be used to meet the minimum

requirementsforthemanagementsystemdenedinthisstandard.

8.2 RESPONSIBILITIES AND AUTHORITIES FOR CERTIFIED SOURCING

8.2.1 The Certied Organization’s managementshalldeneanddocumentitscommitmenttoimplementandmaintainthecertied sourcing

requirements, and make this available to its personnel, suppliers, customers, and other interested parties.

8.2.2 The Certied Organization’s management shall appoint a member of the management who, irrespective of other responsibilities, shall

have overall responsibility and authority for the certied sourcing.

8.2.3 The Certied Organization’smanagementshallcarryoutaregularperiodicreviewofthecertiedsourcinganditscompliancewiththe

requirements of this standard.

PART 8: MINIMUM MANAGEMENT SYSTEM REQUIREMENTS

6/8 | SFI 2022 CERTIFIED SOURCING STANDARD

8.2.4 The Certied Organization shalldemonstrateitscommitmenttocomplywiththesocial,healthandsafetyrequirementsdenedinthis

standard, including the spirt of ILO Declaration on Fundamental Principles and Rights at Work (1998).

8.2.5 The Certied Organization shall identify personnel performing work affecting the implementation and maintenance of the certied

sourcing, and establish and set responsibilities and authorities relating to the certied sourcing process:

   a.rawmaterialprocurementandidenticationofthecertied sourcing;

   b.productsaleandlabeling;

   c.recordkeeping;and

d. internal audits and nonconformity control.

8.2.6 The Certied Organization shall have a system to comply with all applicable social laws at the federal, provincial, state, and local

levels in the country in which the Certied Organization operates. This includes having a policy demonstrating compliance with social

laws, such as those covering civil rights, equal employment opportunities, anti-discrimination and anti-harassment measures, workers’

compensation, Indigenous Peoples’ rights, workers’ and communities’ right to know, prevailing wages, workers’ right to organize and

occupational health and safety.

8.3 DOCUMENTED PROCEDURES

The Certied Organization’s procedures for the certied sourcing shall be documented, and include at least the following elements:

   a.descriptionoftherawmaterialowwithintheproductionprocess;

   b.organizationstructure,responsibilitiesandauthoritiesrelatingtochainofcustody;and

c. procedures for the certied sourcing process covering all requirements of this standard.

8.4 RECORD KEEPING

8.4.1 The Certied Organization shall establish and maintain records to provide evidence it has conformed to the requirements of this

standard and its certied sourcingproceduresareeffectiveandefcient.TheCertied Organization shall keep at least the following:

a. records of all suppliers of certied sourcingmaterial,includinginformationtoconrmrequirementsatthesupplierlevelaremet;

b. records of all purchased certied sourcingrawmaterial;

c. records of all certied sourcing productssold;

   d.recordsofinternalaudits,nonconformitieswhichoccurredandcorrectiveactionstaken;and

e. records of top management’s periodic review of compliance with certied sourcing requirements.

8.4.2 The organization shall maintain the records for a minimum period of three years unless stated otherwise by law.

8.5 RESOURCE MANAGEMENT

8.5.1 Human Resources/Personnel:

The Certied Organization shall ensure that all personnel performing work affecting the implementation and maintenance of the

certied sourcing shall be competent based on appropriate training, education, skills and experience.

8.5.2 Technical Facilities:

The Certied Organization shall identify, provide, and maintain the infrastructure and technical facilities needed for effective

implementation and maintenance of the organization’s certied sourcing to meet the requirements of this standard.

8.6 INTERNAL AUDIT AND MANAGEMENT REVIEW

8.6.1 The Certied Organizationshallconductinternalauditsatleastannually,andpriortotheinitialcerticationaudit,coveringall

requirements of this standard and establish corrective and preventive measures if required.

8.6.2 The Certied Organization shall conduct the internal audit in accordance with the following requirements:

a. The internal audit shall be undertaken by personnel that have adequate knowledge of the SFI 2022 Certied Sourcing Standard;

   b.Off-siteinterviewsanddeskauditsarepermissible;

   c.Iftherehavebeennoinputsoroutputsforasiteormanufacturingfacilityoverthepastyear,internalauditsarenotrequired;

d. If a site or manufacturing facility has had no sales of SFI certied sourcing products over that past year, internal audits are

notrequired;

SFI 2022 CERTIFIED SOURCING STANDARD | 7/8

e. Internal audits are to assess overall organizational conformance and internal audit documentation can consist of one consolidated

internalauditchecklistand/orreport;and

   f.Wherenonconformitiesareidentiedduringtheinternalauditprocess,acorrectiveactionplanshallbedevelopedatthesiteand/or

organizational level.

8.6.3 Where the Certied Organization has outsourced activities within the scope of its certied sourcing the organization shall develop

procedures for the audit of these contractors including a written agreement with all outsource contractors that states:

a. the Certied Organizationmaintainslegalownershipofallinputmaterialtobeincludedintheoutsourcedprocesses;

   b.thematerialsorproductscoveredbythecertiedorganization’sSFI 2022 Certied Sourcing Standardcerticateareclearlyidentied

fromothermaterialsorproducts;

c. the certied organization reserves the right for the SFI-accredited certication bodytoaudittheoutsourcingcontractororoperation;and

d. records of inputs/outputs are available.

8.6.4 The internal audit of outsource contractors may be conducted remotely.

8.6.5 Wheretherearesufcientoutsourcecontractorstheinternalauditmayuseasamplingapproachforthesecontractors.

8.6.6 The Certied Organization shall have its rationale for remote audits and its sampling procedure audited by its certication body.

8.6.7 The results of internal audits shall be reported to management for review during the annual management review.

8.6.8 The Certied Organization shall establish procedures for dealing with complaints from suppliers, customers, and other parties relating to its

certiedsourcingsystem.

9.1 Primary producers must submit to the SFI Ofce of Label Use and Licensing:

9.1.1 A copy of their annual SFI 2022 Forest Management Standard and/or SFI 2022 Fiber Sourcing Standard public audit summary report

issuedbyanSFIcerticationbody.

9.2 Primary or secondary producers outside the United States and Canada must submit to the SFI Ofce of Label Use and Licensing:

9.2.1 SpecicexamplesofproposedSFI on-product label use and related promotional literature to the SFI Ofce of Label Use and Licensing, in

keeping with the SFI Section 6 — Rules for Use of SFI On-Product Labels and Off-Product Marks.

PART 9: APPLICATION REQUIREMENTS

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