SFI 2022 Summary Audit Report

Ahlstrom-Munksjo NA Specialty Solutions LLC

The company SFI representative is Travis

Zydzik.

AUDIT PROCESS

During the period of November 28, 2022 to

December 21, 2022, underwent a

recertification audit to the Sustainable Forestry

Initiative

(SFI

) 2022 Fiber Sourcing (FS)

Standard.

The registration cycle is over five years with

surveillance audits conducted annually. The

audit assessed active and/or completed

harvest operations through interviews with the

company staff and contractors. The audit also

assessed the SFI documentation and records

at the company’s office including stakeholder

and Indigenous people communication.

The SFI program third-party audit was

undertaken by SAI Global. SAI Global is an

independent third-party registrar that is

accredited by the ANSI National Accreditation

Board (ANAB) Standard ensuring the integrity

and credibility of the audit process.

THE AUDIT TEAM

The SAI Global audit team who performed the

audit consisted of Matt Tormohlen, audit team

leader. Mr. Tormohlen is the owner of Northern

Shores Resource Mgmt., LLC, a company

which provides environmental, social and

supply chain traceability evaluations and

consultation for companies seeking certification

to various sustainability standards. Mr.

Tormohlen has acted as Lead Auditor on over

500 such evaluations. Mr. Tormohlen also

manages non-industrial private forestland

properties throughout the Lake States.

REGISTRATION TYPE

MULTI-SITE / GROUP EVALUATION

☒ Not applicable. The certification is not a multi-

site or group.

Certificate Type SFI 2022 Forest Management

Standard

SFI 2022 Fiber Sourcing Standard

Single site

☐ ☒

CERTIFIED ORGANIZATION’S FIBER PROCUREMENT AND/OR MANUFACTURING

OPERATIONS

Manufacturing operations Ahlstrom-Munksjö utilizes conifer and hardwood chips in manufacturing

of various grades of paper products. Fiber is procured through

Gatewood, sawmill residuals

and market pulp. The majority of the

gatewood is purchased as roundwood and the remaining as residual

chips. Fiber is sourced from within the US from the states of Wisconsin,

Michigan and occasionally Minnesota.

Fiber sourcing program The SFI Fiber Sourcing certificate applies to Ahlstrom-Munksjö’

s two

primary producer mills located in Kaukauna (Thilmany) and Mosinee,

Wisconsin.

Although there are two physical mill locations which receive roundwood

and

sawmill residuals via the Fiber Sourcing program, all sourcing

activities are managed by a single and centralized Fiber Sourcing

program, via the Kaukauna site.

Purchased stumpage The organization does not have a purchased stumpage program.

Verifiable monitoring system The organization operates a centralized document control system

(DCS), which provides indicator specific processes for the monitoring of

the

Fiber Sourcing system. The DCS is available to all involved

personnel via the Info tree intranet system and is subject to any updates

recommended/required from the results of the internal audit.

The organization actively participates in applicable state SIC meetings,

completes representative sample field audits of gatewood harvest

areas, with detailed inspection notes and follow-

up actions as needed.

System-wide internal audits summari

ze the results of the multiple

monitoring programs (field audits, DDS updates, etc.) maintained by the

organization and presents any relevant findings during management

review sessions.

Procurement area WI/MN/MI

CERTIFIED ORGANIZATION’S ASSESSMENT FOR FORESTS WITH EXCEPTIONAL

CONSERVATION VALUES

The organization has opted to utilize the FECV assessment as developed by the state SIC. Due to the

regional similarities of the Lake States (MI, MN, WI), the SICs of the representative states collaborated

on the assessment, which was made available with a final revision date of November, 2022. The

NatureServe database was utilized to identify the presence of G1/G2 species and ecosystems, with

emphasis placed on those species and ecosystems which had the potential to be negatively impacted

by forest management. Those species and ecosystems were than ranked in terms of “Impacted”,

“Possibly Impacted” and “No Impact”, based on the professional determinations of SIC members with

appropriate knowledge and expertise on wildlife ecology, biology and forestry. Species lacking

existing/sufficient BMPs are identified as “Impacted.” “Possibly Impacted” species included those

species that had both positive AND negative impacts associated with Forest Management.

The results of the assessment determined seven species and three ecosystems which were determined

to be either “impacted” or “potentially impacted” in at least one of the three Lake States identified in this

assessment. The assessment provides summaries of these identified species and ecosystems,

including identification, general location, how to secure proprietary specific locations, specific threats,

mitigation and sources for more information. This information will be incorporated into QLP logger

continuing education and SIC landowner manuals.

SCOPE OF CERTIFICATION

Click or tap here to enter text.The scope of certifcation has changed since the last public summary

report. The changes are that the organization was audited to the updated Objectives of the SFI 2022

Fiber Sourcing standard.

AUDIT PROCESS

During this audit, the audit team evaluated the company against the objectives listed in Table 1. The

evidence of compliance observed is listed in Table 2. Both tables are found in the section Evidence of

Conformity to the SFI 2022 Fiber Sourcing Standard.

A sample of field review sites were chosen from a list of active sites and sites where activities were

completed since the last audit. The site choice also considered activity type, and risk factors, related to

the audit objectives selected for review, as well as the opportunity to verify implementation of corrective

actions for previous non-conformities.

SUBSTITUTE INDICATORS

☒ Not applicable. No substitute indictors were evaluated during this audit.

COMPLAINTS

No complaints have been received.

AUDIT TIME, SITES AND ACTIVITIES AUDITED

Audit Activity Duration in days

Off-site preparation 1

On-site audit 1

Off-site audit 0

Field audit 2

Sites Activities audited

1 – “Willow Pine” Second thinning of Red pine plantation - NIPF

- Harvest trees identified with orange paint

- Flat terrain with sandy soil and no water/wetland areas

within or directly adjacent to harvest polygon.

- Frozen ground conditions and no residual rutting.

- Very minimal logging damage to residual stand, with

operator taking great care to minimize skid trails.

- Excellent utilization of harvested products, with

merchandising occurring for pine CNS (random length)

and pulpwood.

2- “Town of Minocqua” Regeneration Harvest of Red pine plantation (< 5 acres) - NIPF

Existing pine plantation that had never been thinned

previously and was no longer feasible to be thinned due to

stem/canopy ratio and risk of windthrow.

- Advanced regeneration

maintained within the stand and

sufficient seed source present along harvest boundaries

from directly adjacent mature red and white pine.

- Cultural area (cemetary) within harvest polygon identified

with flagging and protected.

- Flat terrain and frozen groun

d conditions, no residual

rutting observed.

- Interview with logging contractor on active job determined

appropriate PPE and knowledge of spill response

requirements per WI BMPs.

No water/wetland areas observed within or directly

adjacent to harvest area.

3 – “Pelican River” Single Tree Selection for uneven aged management of Northern

hardwoods stand

- Marked thinning of mature hardwood stand with

inclusions of mature Aspen identified for coppice.

- Residual stocking matches WI DNR Silvicultural

handbook recommendations for post-harvest conditions.

- Frozen ground conditions, no rutting observed.

- SMZ established along intermittent stream in

conformance with WI BMP guidelines. Field assessment

of the course of the SMZ determined that harvesting

operations had respected the boundary as “no entry.” No

tops observed as felled into SMZ boundary

- Multiple product sorts present on landing site, exhibiting

adequate merchandising to maximize value.

- Interview with logging contractor on active job determined

appropriate PPE and knowledge of spill response

requirements per WI BMPs.

4 – “Emmer Tract” Single Tree Selection for uneven aged management of Northern

hardwoods stand

- Marked thinning of mature hardwood stand.

- Residual stocking matches WI DNR Silvicultural

handbook recommendations for post-harvest conditions.

- Frozen ground conditions, no rutting observed.

- This sale had recently been finalized/closed out. All

harvested products had been hauled, exhibiting minimal

waste post-harvest.

- Residual stand exhibited very minimal stem damage post-

harvest.

SUMMARY OF FINDINGS

Definitions for findings can be found in Appendix 1.

Non-conformance(s) identified during this audit

☒ Not applicable. No non-conformances were identified.

List of new indicators for the 2022 transition:

PM 1.2 Ind 1, 2, 3 PM 3.2 Ind 2 PM 5.1 Ind 2 PM 6.2 Ind 2i, j, k

PM 11.1 Ind. All PM 11.3 Ind. All PM 11.4 Ind. All PM 11.5 Ind. All

Opportunities for improvement

PM 1.2, Indicator 1.2.1

The organization has elected to utilize the FECV assessment as completed by the SFI FECV Lake States Working

Group. This process was finalized in Nov., 2022 and has not yet been fully provided to wood producers.

OFI #1: Consider more timely processing and communication of standard enhancements.

PM 2.2, Indicator 2.2.1

Interviews with forestry staff and active contractors determined knowledgeable of the WI BMP requirements for

Spill Kit presence on active harvests. The AHL-FS-06 Non-Certified RW Supplier Audit Form reviews for the

presence of spills/leaks during the roundwood supplier audit. Review of completed Supplier Audit Forms

determined pro-active identification of minor leaks if present. The checklist does not include the verification of the

presence of an actual spill kit.

OFI #2: Consider additional verification of spill prevention/remediation processes for wood producers.

Exceptional management practices

☒ Not applicable. No exceptional practices were identified.

Status of previous audit non-conformance(s)

☒ Not applicable. No non-conformities were raised during the previous audit.

CERTIFICATION DECISION SFI 2022 FIBER SOURCING STANDARD

Recertification Audit

Based on the results of this audit to the SFI 2022 Fiber Sourcing standard, it has been determined that

the management system is effectively implemented and meets the requirements relative to the scope

of registration and audit criteria.

No Minor issued to the new 2022 indicators

☒

For this recertification audit, a recommendation to maintain the certification is made to SAI Global

EVIDENCE OF CONFORMITY TO SFI 2022 FIBER SOURCING STANDARD

Table 1 Objectives Audited

1.4 Fiber Sourcing Standard Principles

☒

Objective 1 Biodiversity in Fiber Sourcing ☒

Objective 2 Adherence to Best Management Practices ☒

Objective 3

Use of Qualified Resource and Qualified Logging Professionals and

Certified Logging Companies

☒

Objective 4 Legal and Regulatory Compliance ☒

Objective 5 Forestry Research, Science, and Technology ☒

Objective 6 Training and Education ☒

Objective 7 Community Involvement and Landowner Outreach ☒

Objective 8 Public Land Management Responsibilities

☐

Objective 9 Communications and Public Reporting ☒

Objective 10 Management Review and Continual Improvement ☒

Objective 11 Avoid Controversial Sources ☒

Table 2 Evidence Observed

Objective 1 Biodiversity in Fiber Sourcing

Program for conservation of biodiversity ☒

Forest With Exceptional Conservation Value

Assessment

☒

Program to address Forests with Exceptional

Conservation Value

☒

Objective 2

Adherence to Best Management Practices

Agreements / contracts for use of best

management practices

☒

Wet/adverse weather plans or guidelines

☒

Fiber Sourcing policies

☒

BMP monitoring records / evaluation / use

☒

☐

Objective 3 Use of Qualified Resource and Qualified

Logging Professionals and Certified Logging

Companies

Promotion of qualified logging professionals

☒

List of qualified logging professionals ☒

Agreements / contracts for use of qualified

logging professionals

☒

Objective 4

Legal and Regulatory Compliance

Laws, legislation, regulations records ☒

Regulatory action information ☒

Corrective action logs

☒

Monitoring of legal requirements ☒

Social policy

☒

Health and safety manual and/or employee

policy manual

☒

Objective 5 Forestry Research, Science, and

Technology

Support for research and science

☒

Research and discussion papers ☒

Communication on research / implementation

of research

☐

Research knowledge transfer participation /

communication

☒

Climate model monitoring information ☐

Objective 6

Training and Education

SFI policy / written policies

☒

Roles and responsibilities documents ☒

Training agenda

☒

Training records (staff and contractors)

☒

QLP continuing education criteria and delivery

mechanisms

☒

Objective 7 Community Involvement and Landowner

Outreach

SFI Annual Report

☒

SFI and company websites ☒

SFI brochure

☒

SFI Implementation Committee

(participation/support)

☒

Voluntary market-based incentive program

information / participation

☒

Outreach to forest landowners regarding

certification

☒

Education/community involvement records ☒

SFI Implementation Committee non-

conformance process information

☐

Objective 8

Public Land Management Responsibilities

Multi-licensee and/or government meeting

minutes

☐

Stakeholder communication

☐

Objective 9 Communications and Public

Reporting

☐

Summary audit report posting in SFI database

☒

Current and past SFI Annual Progress Report

and submission information

☒

SFI Annual Progress Report data summary

records

☒

Objective 10 Management Review and Continual

Improvement

Internal audit records

☒

Annual management review records

☒

Objective 11 Avoid Controversial Sources

Due diligence system

☒

Risk assessment ☒

Complaint procedure ☒

Risk mitigation measures

☐

DEFINITIONS

Major Non-Conformances

Pervasive or critical to the achievement of the SFI objectives

All major non-conformances require an action plan to be implemented by the auditee within 90 days of

an initial/Recertification audit or certification cannot be achieved. During a surveillance audit, an

unresolved major nonconformity will lead to the suspension of the certificate.

Minor Non-Conformances

Isolated incidents that are non-critical but must be addressed before the next surveillance audit to

maintain compliance to the SFI standard. Non resolved minor non-conformance will be escalated to a

major non-conformance.

Opportunity for Improvement

Are not non-conformances but are comments on specific areas where improvements can be made.

Exceptional Practices

Creative and unusual management practice worth mentioning.

MULTI-SITE / GROUP SAMPLING APPROACH

Where the multi-site / group organization

maintains an internal audit program, which has

been determined to be reliable, the SAI Global

sampling approach is as follows:

n = number of sites:

i. √(n) for initial certification audits

ii. 0.6 √(n) for surveillance audits

iii. 0.8 √(n) for re-registration audits

The central office function is audited annually.

Where the multi-site / group organization did not

maintain its internal audit program, the SAI Global

sampling approach is as follows:

n = number of sites:

√(n)

The central office function is audited annually.

SAI Global certifies forest companies to ISO 14001, SFI Forest Management, SFI Chain of Custody, SFI Fiber Sourcing, SFI Certified

Sourcing, PEFC Chain of Custody, FSC

Forest Management, and FSC

Chain of Custody.

The group, led by Sylvain Frappier, Global programme manager - Forestry, consists of a highly qualified team of professional foresters,

technical and industry experts.

Contact SAI Global Assurance for more information.

Company Contact

Travis Zydzik

Certification manager

Travis.Zydzik@ahlstrom-munksjo.com

This report may only be reproduced by the intended

client, with the express consent of SAI Global.

Information in this issue is of a general nature with

respect to audit findings and is not intended to be

acted upon without appropriate professional advice.