We are committed to responsibly sourcing the raw materials used to make our lumber and plywood while meeting customer demand for quality.

The raw materials for lumber and plywood include logs from our own company lands, logs from other private industrial and family-owned landowners, and from public agency landowners. No matter where these logs originate, we commit that they are sourced in a manner that protects the values these forests provide.

Some of the logs we use come from land that is certified to either SFI or FSC standards including our own ownership, other industrial landowners that have chosen to be certified, and some state and county agency lands. Given approximately 90% of the world’s forests are not certified, however, both SFI and FSC have systems in place to ensure responsible procurement occurs when purchasing fiber from non-certified lands. We use both SFI Fiber Sourcing and FSC Chain of Custody programs to assure our customers and stakeholders that the wood we purchase to make our products originates from responsible sources.

All seven of our facilities are certified to the SFI Fiber Sourcing standard, which provides structure to how we, as an SFI Program Participant purchase fiber from both certified and non-certified forestland. This standard is designed to extend the positive reach of sustainable forestry information and practices to landowners on such topics as forest regeneration, forestry best management practices for water quality, wildlife and biodiversity, use of professional logging contractors, and avoiding controversial sources such as illegal logging.

The 2022 SFI Fiber Sourcing Standard has 13 Principles, 11 Objectives, 29 Performance Measures and 59 Indicators, all designed to promote responsible procurement. In addition to sharing sustainable forestry information with landowners, we also must demonstrate adherence to all federal, state, and local forestry laws, invest in forestry research, science, and technology, and develop verifiable monitoring systems to evaluate the use of best management practices across the geographic area where we procure wood.

In 2022, 100% of the timber consumption at all our wood products facilities was SFI Fiber Sourcing certified. Our Gwinn, Michigan, and Warren and Waldo, Arkansas facilities are also FSC Chain of Custody certified. We track the path of our products from the forest through the supply chain, ensuring that FSC-certified material is identified from non-certified material throughout that chain. In addition, FSC certification requires that wood that is procured from land not FSC certified falls under the FSC Controlled Wood standard. The Controlled Wood standard requires that the non-certified wood we purchase does not come from undesirable sources. FSC considers all the following undesirable sources: illegally harvested forests; forests that were harvested in violation of traditional and civil rights; forests where high conservation values are threatened by management activities; natural forests that were converted to non-forest uses; and forests with genetically modified trees.

In 2022, 59% of timber consumption at all our wood products facilities was FSC Chain of Custody certified, and 100% of the timber consumption at our Gwinn, Warren, and Waldo facilities was FSC Chain of Custody certified. In 2022, 35% of timber consumption at all our wood products facilities was FSC Controlled Wood certified.

We have traceability systems at all wood products facilities based on our SFI Fiber Sourcing procedures. Our SFI procedures are designed to ensure that our sourcing is from legal and responsible sources with emphasis on uncertified sources. We track all log purchases to section, township, and range, with the only exception being two remote concentration yards where we know state and county of origin only. In every case, we have a system to assess the risk that logs could be acquired from illegal logging sources that includes communications with suppliers, contract documentation, and maintenance of records. We identify and address any significant risks.

Our risk assessment procedures, plan implementation and results are evaluated in internal and third-party audits. We have not identified any issues with illegal sourcing. In addition, we have policies and procedures designed to promote compliance with all applicable chain of custody laws and to extend legal compliance throughout our supply chain. Our procedures for ensuring chain of custody legal compliance are internally and externally audited and we have also not identified any material issues with legal compliance. All our sourcing is verified to be from legal, responsible sources and produced by trained logging contractors.

PotlatchDeltic understands the importance of good forest stewardship not only on our own land but also with the many other landowners we work with. This stewardship plays a key role in our commitment to sustainability for our shareholders, customers, communities in which we operate, and numerous other stakeholders.