Choose FSC certified wood and paper - FSC Benefits for...

Choose FSC® certified wood and paperDiscover the benefits for your business

From a good idea to a global market toolThe Forest Stewardship Council® (FSC®) was formed in 1993, and the issue of the first certificates for sustainable forest management followed shortly afterwards. This ground-breaking act had a profound impact not only on the practice of commercial forestry but also on the expectations of consumers and the companies that produce and distribute forest products. Being able to buy products with an FSC label gave consumers the chance to make a positive difference around the world, allowing them to feel the connection between the product they had bought and the forest floor and the people who live and work there.

Since 1993, FSC has grown into the forest certification scheme with the most certificate holders worldwide. There are now more than 27,000 Forest Management and Chain of Custody certificate holders, and almost 180,000 million ha of forest is FSC certified worldwide. In twenty years, an ethical idea has been transformed into a globally-recognized, trusted brand in the market.

But despite this huge success, the need for certification has never been stronger. Climate change is probably the biggest threat facing life on the planet, and its impacts are being felt first and most strongly by the poorest, traditional communities.

Sustainable forestry is one of the most effective means to mitigate climate change. Trees absorb carbon dioxide (CO2) from the atmosphere as they grow. When harvested, carbon is stored in every piece of furniture, timber-framed house and piece of paper. And FSC certification ensures responsible management of forests with new trees growing, absorbing more carbon – a prerequisite to upholding the cycle. At the same time, FSC certification requires the maintenance or enhancement of the biodiversity of forests and demands that communities depending on these forests benefit from the forestry operations.

Introduction

Front page picture: The Maritime Youthhouse, Copenhagen, Denmark © Paolo Rosselli

Wood - when purchased from a sustainable source like FSC - is a great raw material. It is environmentally friendly and renewable. And there are many more reasons to prefer certified wood or paper.

This report has been designed to support different players in the market to explain the benefits of certified wood, not only from an environmental and social perspective, but also from the perspective of companies, in particular industries.

© Johan Spanner

1 Carbon benefits

Trees absorb CO2 as they grow. While most

other processed materials cause carbon emissions, wood products store absorbed carbon, contributing to climate change mitigation. Every cubic meter of wood stores roughly 0.9 tons of CO2,

1 and building with wood extends the time that this CO2 is kept out of the atmosphere. If the wood has been harvested from an FSC certified forest, the management plan ensures regeneration and the growth of new trees. Also forest soils function as carbon sinks. Currently, claims about carbon are beyond the scope of FSC certification. In order to make carbon claims about forest products, a carbon accounting methodology should complement FSC certification.

2 Using less energy

Needing little more than sunlight and

rainfall to grow, wood has the lowest embodied energy of any mainstream building material. For example, producing steel requires 24 times the energy needed to produce wood.2 Concrete can emit 0.14 tons of CO2 per cubic meter produced,3 while an equivalent amount of wood actively absorbs and stores 0.9 tons,4 arriving at the construction gate with negative carbon balance, reducing both energy input costs and greenhouse gas emissions. Every cubic meter of wood used as substitute for other materials displaces an average of 1.1 tons CO2. If this is added to the 0.9 tons of CO2 stored, then each cubic meter can save a total of 2 tons of CO2.

5

3 Performance

Wood has the best thermal insulation

properties of any mainstream construction material on the market: five times better than concrete, 10 times better than brick and 350 times better than steel.6 A 2.5 cm timber board has better thermal resistance than an 11.4 cm brick wall.7 So, as well as cutting energy use in manufacture and construction, the properties of wood also help improve energy performance throughout the life of a building. Governments are increasingly legislating for improved thermal efficiency and lower energy consumption.8 Wood is a simple, long-lasting and effective way of complying with new rules.

4 A renewable resource

Wood is the only renewable mainstream building material.* If it is sourced from FSC certified forests, buyers and sellers can rest assured that their wood products are not only renewable, but at the same time that they come from forests that are being managed responsibly, taking into account both the environment and the people that live and work in and around the forest. Wood is also a reusable resource and its recycling needs less energy in comparison to other materials such as steel or aluminum. When wood cannot be reused for other products, it can be used as fossil fuel for energy production.

5 A thing of beauty, and utility

Wood is an attractive, practical and long-lasting material. It is flexible, adaptable, versatile and natural. It can be used for flooring, paneling, ceilings and floors, as well as furniture, fencing, building frames, cladding and much more. FSC certified wood is used in more than 400 product groups worldwide. Research has demonstrated that when used in buildings and interiors, wood is perceived as warm, relaxing, comfortable and welcoming, and it is believed that it creates a healthy environment, thus contributing to our well-being.9

Why use FSC wood?

“The FSC label gives corporations and consumers the assurance that the wood and wood-based products they purchase were sourced responsibly.”

The Nature Conservancy11

*In recent years bamboo is emerging as a renewable building material, and FSC certified bamboo is increasingly becoming available in the marketplace.

A ten percent increase in timber-framed buildings across Europe would produce enough CO2 savings to account for about 25 percent of the reduction in greenhouse gas emissions prescribed by the Kyoto Protocol.10

Every cubic meter

of wood used

as substitute for

other construction

materials on

average displaces

1.1 tons of CO2

and stores another

0.9 tons.1

© Christian Delbert

References

1. Beyer, G., Defays, M., Fischer, M., Fletcher, J., de Munck, E., de Jaeger, F., Van Riet, C., Vandeweghe, K. and Wijnendaele, K. 2011.Tackle Climate Change: Use Wood.[e-book] Brussels, CEI-Bois. Available at: http://www.cei-bois.org/files/FINAL_-_BoA_-_EN_-_2011_text_and_cover.pdf, p. 14, [accessed 20 January 2014].

2. Confor, 2011. Written evidence submitted for UK Government Natural Environment White Paper 42. [online] Available at: http://www.publications.parliament.uk/pa/cm201012/cmselect/cmenvfru/writev/whitepaper/m42.htm, [accessed 20 January 2014].

3. Confor, 2011. Written evidence submitted for UK Government Natural Environment White Paper 42. [online] Available at: http://www.publications.parliament.uk/pa/cm201012/cmselect/cmenvfru/writev/whitepaper/m42.htm, [accessed 20 January 2014].

4. Beyer, G., Defays, M., Fischer, M., Fletcher, J., de Munck, E., de Jaeger, F., Van Riet, C., Vandeweghe, K. and Wijnendaele, K. 2011.Tackle Climate Change: Use Wood.[e-book] Brussels, CEI-Bois. Available at: http://www.cei-bois.org/files/FINAL_-_BoA_-_EN_-_2011_text_and_cover.pdf, p. 38, [accessed 20 January].

5. Frühwald, A., Welling, J. and Scharai-Rad, M. 2003. Comparison of wood products and major substitutes with respect to environmental and energy balances. Seminar for the Sound Use of Wood, ECE/FAO, Poiana Brasov, Romania, 24–27 March 2003

6. Wood for Good, 2011. The Timber Industry Manifesto. Available at: http://www.woodforgood.com/about, p. 4, [accessed 20 January 2014].



9. Rice, J., Kozak, R.A., Meitner, M.J., and Cohen, D.H. 2006. Appearance wood products and psychological well-being. Wood and Fiber Science 38(4): 657–658. Available at: http://web.forestry.ubc.ca/sbml/pdfs/Value%20Added%20Wood%20Products/Appearance%20Wood%20Products%20and%20Psychological%20Well%20Being_Rice%20e.pdf, [accessed 29 January 2014].

10. Frühwald, A., Welling, J. and Scharai-Rad, M. 2003. Comparison of wood products and major substitutes with respect to environmental and energy balances. Seminar for the Sound Use of Wood, ECE/FAO, Poiana Brasov, Romania, 24–27 March 2003

11. Hurd, J. Everyday Environmentalist. [online] The Nature Conservancy. Available at: http://www.nature.org/greenliving/gogreen/everydayenvironmentalist/buy-fsc-its-good-wood.xml, [accessed 20 January 2014].

Kragerø Spa & Resort, Kragerø, Norway © Kebony ASA

1 Raise standards

FSC certification acts as a catalyst for improving

standards in forest management. It brings economic benefits by opening up new markets, social benefits to workers and local people, and environmental benefits to biodiversity and ecosystems. It is the only forest certification scheme backed by environmental NGOs like Greenpeace and the World Wide Fund for Nature (WWF), and sets a benchmark for forest companies and communities to follow.

2 Create business benefits

Research shows that FSC certification can bring improved market access, higher revenues and enhanced public image.1 Through the FSC certification process, producer companies and forest owners can access new markets and gain a stronger, more diverse customer base, thereby increasing revenues. Retailers and suppliers can strengthen their reputation, provide assurance about ethical and environmental product standards and forge stronger links with their own customer base.

3 Connect with the consumer

FSC provides a connection between the forest and the end user. Certification allows consumers to be confident that the products they are buying come from a responsible source. FSC’s credibility is a great brand benefit, enhancing reputation and marketing possibilities.

Why seek FSC® certification?

“We believe that FSC is the most credible global forest certification system (...) That’s why we recommend FSC to consumers, businesses, policymakers and forest managers.”

World Wide Fund for Nature (WWF), Australia website 4

4 Fight climate change

By creating a market for sustainable forest products and highlighting the dangers of poor forestry practice, FSC prohibits illegal logging, forest degradation and deforestation in certified areas, all of which can contribute to climate change mitigation.2 On average, certified forestry operations designate 16 percent of their total forest area as strict reserves.3

5 Get ahead of governmental requirements

A growing number of countries and regions, such as the EU, USA and Australia have legislation banning the trade and use of illegally harvested timber and derived products. For FSC, respecting all relevant laws is the first of its 10 principles and part of the certification and auditing process. FSC certification vastly reduces the risk of being confronted with illegal timber.

Furthermore, national, regional and local governments increasingly reference FSC as one way to comply with their public procurement policies as they seek products that support sustainable forest management.

“Belonging to FSC is a way for Pan Pac to demonstrate that it is pro-active in environmental stewardship. It is a fantastic logo. It [the FSC logo] says we are doing a good job and it’s supported by a comprehensive public FSC audit summary document for those that want to know more. FSC is well-recognised all over the world and has strong endorsement by many environmental groups. Our customers know what it means and consumers are increasingly becoming aware so we don’t have to explain it.”

Brett Gilmore, Environmental and Technical Advisor, Pan Pac Forest Products Limited, a forestry and

timber company from New Zealand

Research has

shown that FSC

certification can

bring improved

market access,

higher revenues

and enhanced

public image.1

© Lewis Lumber Products

References

1. Cashore, B., Gale, F., Meidinger, E. and Newsom, D. (Eds) 2006. Confronting Sustainability: Forest Certification in Developing and Transitioning Countries. Yale School of Forestry and Environmental Studies Publication Series Report No. 8, New Haven, Yale Publishing Services Center.A list of other relevant studies can be found at: http://www.whyfsc.com/index1.asp?menu=4&sub=103, [accessed 29 January 2014] and in FSC, 2009. “FSC reflected in scientific and professional literature. Literature study on the outcomes and impacts of FSC certification. Available at: http://www.fsc.be/uploads/documenten/overfscfm/impactsreportkarmann2009.pdf, [accessed 29 January 2014].

2. Forest Stewardship Council, 2011. Celebrating Success: Stories of FSC certification, Bonn, FSC International Center. Available at: https://ic.fsc.org/success-stories.350.htm, [accessed 29 January 2014].

3. NEPCon, 2009. Rainforest Alliance: FSC certification ensures wildlife sanctuaries. [online] Available at: http://www.nepcon.net/2542/English/HOME/News_2009/March/RA_study_shows_benefits/, [accessed 21 January 2014].

4. 4. WWF Australia. Choose good wood through the Forest Stewardship Council [online] Available at: http://www.wwf.org.au/our_work/saving_the_natural_world/forests/solutions/forest_certification/fsc/, [accessed 21 January 2014].

© Forest Stewardship Council A.C.

FSC is environmentally appropriateForests are home to some of the most varied, diverse ecosystems on the planet. As well as providing a range of ecosystem services to local areas, they also act as global carbon sinks as they store carbon.

Yet despite increased awareness of their vital role in the survival of the planet, deforestation and forest degradation remain major problems. As well as destroying natural habitats and threatening species survival, CO2 emissions from deforestation and other land-use changes accounted for 10 percent of all emissions from

human activities for the period 2002-2011.1 The financial costs are also high: illegal logging is estimated to cost governments in timber-producing countries around Euro (€) 10–15 billion every year in lost revenue.2

FSC certified forest management practices actively help protect and enhance these vital resources. They ensure that the rate at which forest products are extracted does not exceed the rate at which they re-grow, and that they can regenerate at a level which can be permanently sustained. The management

plans FSC certified companies are required to provide commit forestry businesses to long-term objectives, treating the forests as renewable resources, not short-term profit centers.

This approach helps conserve ancient habitats as well as create new ones. FSC certification, along with the continual monitoring of forest management practices it enforces, has helped drive up standards in forestry around the world and been proven to enhance habitats and protect wildlife.3

The FSC® approach

Responsible forest management is at the heart of the Forest Stewardship Council® (FSC) approach. But gaining FSC certification means taking care of more than just trees. FSC recognizes that forests include the people and communities who depend on them for their livelihoods, as well as the vast array of biodiversity sustained by forest ecosystems. In the following you can read about what FSC certification is about and what you contribute to when sourcing FSC certified materials or products. As the image suggests FSC certification consists of three pillars:

• FSC is environmentally appropriate

• FSC is socially beneficial

• FSC is economically viable

Environment

Economy

Social

The three pillars of the FSC system

The FSC® approachCarbon capture and storage

Forests play a critical role in regulating the Earth’s climate. Trees capture CO2 as they grow, storing carbon in their wood, and releasing oxygen. This makes forests some of the biggest carbon sinks on the planet.

FSC promotes all ecological functions of forests, which should all be preserved and strengthened, with carbon storage being one of them. Trees absorb most atmospheric CO2 when they are growing, and absorption rates decrease as they age. Regular harvesting and regrowth therefore increases the potential for carbon sequestration. As the UN Intergovernmental Panel on Climate Change states, “a sustainable forest management strategy aimed at […] increasing forest carbon stocks, while producing an annual sustained yield of timber, […] will generate the largest sustained mitigation benefit.”4

Harvested wood products act as carbon stores in their own right. They lock up roughly one ton of CO2 per cubic meter of timber for the duration of their lifetime while more stocks are planted and growing. To put this into perspective, in 2011 the average European had a carbon footprint of 7.5 tons of CO2 per year;5 increasing the use of timber products could reduce this substantially. When used in construction, wood products can be substitutes for other, more carbon intensive materials such as steel and concrete, making further carbon savings throughout their life.

Illegal logging is estimated to cost governments in timber-producing countries around €10–15 billion every year in lost revenue.2

© Uwe Sayer

FSC certification brings better wildlife management

The forests of Gabon support some of the largest populations of lowland gorillas, chimpanzees and elephants in the world. It is therefore essential that wildlife is well managed in productive forestry areas such as in the Congo Basin area of the country.

Hunting for bushmeat and ivory poaching form the major threats to wildlife living in and around Gabon’s national parks. If forestry concession areas in the parks are not properly controlled, they can provide easy access for poachers who target these threatened species for the market value of their trophies.

A study by the Wildlife Conservation Society of Gabon showed that FSC certified companies brought direct benefits for the conservation of these species. Controlling road access, monitoring vehicles and providing domestic meat at prices competitive with bushmeat were just a few of the means of reducing the pressure of hunting.6

A report from WWF shows that the benefits of FSC certification for wildlife habitat conservation can also be seen in other parts of the world, noting that “in contrast to other forms of logging, FSC certified logging offers increased assurance that the appropriate habitat for great apes will be maintained. The Western gorillas and Bornean orangutans in particular can be found in high densities in well-managed FSC certified concessions.”7

© Kathryn Bakken

FSC is socially beneficialAbout 350 million of the world’s people, including 60 million indigenous people, directly depend on forests for their daily subsistence and long-term survival.8 Deforestation and poor forestry management can have a devastating impact on their livelihoods. Yet deforestation often has economic causes, with many forests being cleared to grow cash crops or create space for livestock, reflecting the widespread view that agriculture is - in the short term - more profitable than forestry.9

FSC certification demands that local communities and indigenous people benefit from forestry operations and that their rights and interests are protected.

Local community members must be provided with opportunities for employment and training so that they can earn a sustainable income. Providing an economic return from sustainable forest management can remove the economic incentives for forest communities to clear forest land for other purposes.

Ensuring that local people benefit from forests is vital to long-term sustainable forest management. FSC certification carries this principle throughout the supply chain, making sure that workers are treated fairly and ethically at every stage.

The impact of FSC certification in developing countries has

1. helped to secure or improve environmental services in certified forests;

2. improved worker conditions within certified forests;

3. acted to reduce social conflict in and around certified forests;

4. helped in securing land tenure and usufruct rights (in certified community forests);

5. improved the image of the forest management enterprise locally and in associated markets;

6. provided greater access to premium timber markets (where they exist); and

7. helped promote sustainable forest management more generally through dialogue between the private sector, government bodies, non-governmental organizations and civil society.

Spilsbury, M.J (2005)10

350 million people around the globe depend on the world’s forests.8

60 million, or 17 percent, of them are indigenous people.8

FSC certification demands that local communities and indigenous people benefit from forestry operations and that their rights and interests are protected.

The community of Kikole in Tanzania built a water pump from the revenues of the wood sold from the FSC certified forests surrounding the village. © FSC Denmark

FSC is economically viableAs awareness of deforestation and its impacts grows, more and more producers, traders and retailers are specifying FSC certified products to show their corporate social responsibility credentials. They want to prove to their customers that they only buy the most ethically sourced, environmentally responsible materials available.

The FSC logo on materials gives assurance that they are part of the solution to deforestation, not part of the cause. All material from an FSC certified forest is accompanied by a Chain of Custody certificate. This shows not only that it has come from a responsibly managed source, but also that at every stage in the chain of processing, manufacturing and trading, the

FSC certified wood product has been kept separate from uncertified products – or only mixed in approved ways – to ensure that the supply to the consumer is indeed FSC certified.

This Chain of Custody is the backbone of the FSC approach. It shows how the products are properly ‘stewarded’ from the forest to the customer.

FSC certified materials help businesses retain existing customers while also attracting new ones, meaning producers, traders, manufacturers and retailers all benefit. The greater the demand for FSC certified products, the greater the benefits which cascade back down through the chain, right into the heart of the forest itself.

Improved market access

Despite difficult economic conditions in many countries in recent years, demand for goods branded as ethical has continued to grow. In the UK, demand for ethical products rose from British Pounds (£) 16 billion in 2000 to £47.2 billion in 2011, an increase of 194 percent. During the same period, the demand for sustainable timber and paper in the UK grew at a rate of 171 percent, rising from £629 million in 2000 to £1,706 million in 2011.11 Third party certification systems such as FSC help maintain credibility in these markets, ensuring against ‘greenwashing’ and spurious claims to sustainable production.

Chain of Custody Growth

The number of FSC Chain of Custody certificates is steadily increasing. In 2009 a total of 11,834 companies held a chain of custody certificate. Compared to 2013 that number grew by about 120 percent to 26,049 certificates. For more facts and figures visit the FSC website: https://ic.fsc.org/facts-figures.19.htm.

This graph shows the increase in chain of custody certificates from 2009 - 2013 by continent.

Africa Asia Europe Americas Oceania

217

46299

164

2,165

6,267

5,633

13,395

3,720

5,761

Chain of Custody

FSC chain of custody certification verifies material from FSC certified forests through the whole process of production – from the forest to processing companies, manufacturers and distributors, all the way to the consumer. This verification allows companies to label their FSC certified products, which in turn enables consumers to identify and choose products that support responsible forest management.


The FSC Global Market Surveys in 201112 and 201213, with 5,032 and 4,595 respondents respectively, show that:

98%of FSC certificate holders plan to renew or keep their certification.

90%agree to the statement that certification helps to increase the environmental value of forests, while not ignoring the economic values.

80%have seen positive changes in the demand for FSC certified products and materials in their industry.

64%expect to source more FSC certified material to meet rising demand.

Country Percent Survey

Australia 15% 2012, Mobium Group

Belgium 31% 2011, Listen Media

Denmark 35% 2012, FDB

France 15% 2010, IFOP

Germany 28% 2011, PEFC Germany

The Netherlands

71% 2009, Heliview

Hong Kong 29% 2011, WWF

Sweden 14% 2012, Tetra Pak

Switzerland 68% 2011, WWF

UK 43% 2011, GfKNOP

USA 21% 2011, FSC US

Numbers based on prompted awareness

UK BelgiumSwitzerland Denmark

2009 - 2011

The recognition of the FSC logo is increasing. As an example the awareness of the FSC logo in the UK has gone from 24 per cent in 2009 to 43 per cent in 2011.

Market recognition

A series of studies implemented in different countries in recent years show that the FSC logo is increasingly recognized around the world, and more and more consumers rely on the logo for assurance of responsible sourcing. The following rates of prompted awareness of the FSC logo were found in consumer surveys carried out in 16 countries.

The graph (below) shows the increase in recognition of the FSC logo in four different countries in the period between 2009 and 2011.

24%

43%

13%

31%

67%

68%

28%

35%

Carlos and the trees

Carlos Peralta lives in Honduras and earns a living as a woodcutter. He is a partner in the forest cooperative COATLAHL near La Ceiba in eastern

Honduras . FSC certification of the forest where he works has meant an economic recovery for

Carlos and his fellow workers, at the same time as preserving their forest for future generations.

“When I was 15,” says Carlos,

“my elder brother Hector taught me how to use a chainsaw. That way, I was able to support my

family by cutting down trees. He was also the one who got me engaged in a local forest group that sells wood from Rio Viejo – the village where I was born. Hector left the group because the sales were poor, but the rest of us continued, and in 1997 we decided to concentrate our efforts on getting FSC certification for our forest.”

But the FSC certification did not give the expected access to international markets straight away and the forest group needed help from an experienced partner. They did not have any knowledge or experience of selling certified wood, and on top of this they faced the huge

“Our story proves that it is possible to change things for the better - both for nature and for the people.”

Carlos Peralta, partner at forest cooperative COATLAHL

© Miriam Dalsgaard

Social and community case study

© Miriam Dalsgaard

challenge of illegal logging, which lowered the prices of timber to a minimum, while ruthlessly exploiting the forests.

“The prospects for our small forest group did not look good,” Carlos continues, “and we came close to giving up. But then we got an offer that changed everything. The Danish environmental organization, Forests of the World, paid us a visit and helped us with both the certification process and with finding Danish companies interested in buying FSC certified wood.”

Thanks to the help of Forests of the World, things look different

today, both for the group and for the forest. Carlos explains: “Now, we get a better price for our timber and experience a demand for non-traditional species of timber which makes the forest much more valuable to us.” The FSC certification of the forest area has given the group a further incentive to protect their forest land better than in that past. This is both to maintain their FSC certification, and because they cannot afford to have anyone stealing their valuable species. The group has introduced a clear marking of the forest area and patrols the boundaries to keep out settlers and illegal woodcutters. As a result, the amount of illegal logging in the

area has decreased, making the economics of forest management more sustainable for the workers.

“I can now afford to buy a house and to send my daughter Yasmin to school,” Carlos says. “There is still a lot of illegal and unsustainable forestry in Honduras, but our story proves that it is possible to change things for the better – both for nature and for the people.”

The story of Precious Woods

Tropical forests are among the most diverse and ecologically important ecosystems on Earth, and also among the most endangered. FSC certification helps to enhance, preserve and

expand tropical forestry areas by managing them responsibly.

It is better for forests, better for the environment and better for people. The story of Precious Woods is an example of the impact FSC can have in tropical areas. However, there

are currently too few of these examples, because certification

in the tropics has proven more difficult than in temperate and boreal forests. FSC is determined to increase its impact in the tropics considerably in the coming years, and increased demand for FSC certified tropical products can certainly help.

Precious Woods is a world leader in sustainable management and production in tropical forests. Its core activities consist of reforestation, sustainable management of tropical forests, timber processing and trading of FSC certified timber products.

Formed in 1990, the Switzerland-based company established its first sustainable forest management operations in the Amazon in 1994, and in 1997

Precious Woods employs more than 1 150 people worldwide and has subsidiaries in Brazil, Gabon, The Netherlands and Switzerland.

Photo to come

© Luca Zanetti, Precious Woods

Case study: Tropical Forest Management

became the first company in Brazil to receive FSC certification. Now, Precious Woods employs more than 1,150 people worldwide and has subsidiaries in Brazil, Gabon, The Netherlands and Switzerland.

“It has always been our mission to

help, permanently preserve and enhance tropical forests through sustainable management,” says Stefan Meinhardt, Chief Operations Officer of Precious Woods. “Working to an FSC certified standard means we can prove to our customers that they are helping us achieve this mission.”

In Brazil and Gabon, the company manages more than 1.1 million hectares of tropical forest, producing sawn timber, veneers and molded and manufactured products.

Managing the forest sustainably means harvesting not more than two or three trees per hectare

during each rotation cycle of 25 years and applying low-impact logging techniques, which leave surrounding plants undamaged and the forest canopy mostly intact.

A forest management plan with a full inventory of harvest trees guarantees that the natural

composition of tree species is not altered and biodiversity is maintained. Areas with high ecological value as well as areas around rivers are designated as protection zones. Access to the forest is also tightly controlled to prevent illegal logging, hunting of endangered species and outbreaks of fire.

However, sustainable forest management means taking care of more than just the trees. “Sustainable management is about creating economic, social and ecological value in equal measure,” says Meinhardt. “If we don’t meet the needs of the people in the area, we will not meet the needs of the

forest or the needs of our business.”

As required by FSC standards, most of Precious Woods’ workers are local to its operations, allowing the company to provide jobs, training and other services to strengthen local community structures.

The employees are trained on more than just their jobs. In addition to specific vocational and health and safety training, a three week course is held in Brazil every year covering wider issues, such as HIV/AIDS, drug and alcohol abuse, first aid, and communication skills. At Precious Woods’ Centro Florestal in the state of Amazonas, the company trains its workers and provides information for outsiders. The center allows visitors from all over the world, including customers, politicians, environmentalists and school children, to see the company’s production methods first hand and learn more about sustainable forestry.

As required by FSC standards, most of Precious Woods’ workers are local to its operations, allowing the company to provide jobs, training and other services to strengthen local community structures.

In Brazil and Gabon, the company manages more than 1.1 million hectares of tropical forest, producing sawn timber, veneers and molded and manufactured products.

People’s rights

Precious Woods separates the areas within its property for which local communities have legal or customary rights of use. The boundaries of these areas are established in consultation with the local communities involved. Precious Woods does not pursue forestry activities in any areas inhabited by nomadic indigenous people.

Low-carbon energy and carbon credits

In Brazil, Precious Woods fuels a nine megawatt biomass power plant with about 90,000 tons of residual wood waste from its sawmill every year. This replaces diesel in the supply of electricity for the sawmill, as well as providing electricity

for the 70,000 inhabitants of Itacoatiara, the nearby town.

The biomass power plant is the first biomass-to-energy project registered under the Clean Development Mechanism of the Kyoto Protocol to use 100 per cent FSC certified wood. The power plant avoids sending wood waste to landfill – which generates methane – and reduces emissions by around 150,000 tons of CO2 per year. This is the same as the total aircraft emissions of 68 planes crossing the Atlantic Ocean.

Securing market position despite the global financial crisis

Traded on the Swiss OTC market, Precious Woods’ financial reports for 2011 and

2012 show that despite a depressed global economic situation, especially in the major European markets, the company has diversified its customer portfolio, expanded its product range and laid the foundations for important new markets in the future. Commitment to FSC principles is an attractive factor in encouraging new investors and retaining longer-term shareholders as it shows the company has taken steps to insure against future reputational and regulatory risks.


Precious Woods fuels a nine megawatt biomass power plant with about 100,000 tons of residual wood waste from its sawmill.

This replaces diesel in the supply of electricity for the sawmill, as well as providing electricity for the 70,000 inhabitants of Itacoatiara, the nearby town.


Pan Pac Forest Products Ltd is a fully-integrated forestry and timber products company based in the Hawkes Bay region of New Zealand, where it has the cutting rights to over 30,000 hectares of plantation forests in five locations.

The company was established in 1971, and in 2007 became wholly owned by Oji Paper, one of the largest pulp and paper producers in Japan and one of the largest

forest products groups in the world. Pan Pac annually produces around 260,000 air dried tons of pulp and 435,000 m3 of lumber. The company also exports wood chips and logs. Product is exported to 13 countries, with

Japan and China being major markets. Oji is a major customer of pulp, lumber and chips.

The company has a workforce of

more than 350 permanent staff and over 450 people contracted to assist in forestry, harvesting and transport operations.

Meeting the increasing demand for FSC certified products

Pan Pac’s forestry operations have been FSC certified since 2001. The driver for certification was internal pressure from parent company Oji, and external pressure from other customers, said Brett Gilmore, Environmental and Technical Adviser at the company. Gilmore notes that “a lot of our customers are regulated already and if not, they see it happening soon. New Zealand is a small country, but we have a lot of wood. Inevitably, most of our

“The initial driver was the market, but it did not take long before the business recognized the broader benefits of what we were doing.”Brett Gilmore, Environmental and Technical Adviser, Pan Pac

FSC certified plantation forestryCase study:

Pan Pac Forest

Products

© Pan Pac Forest Products Limited

sales are going to be exports and we have to meet the regulations and expectations of the rest of the world.”

While most of the company’s output is exported to Asia, much of it is then remanufactured and exported to Europe or the US, where customers, particularly large retailers, are demanding certification to show consumers and environmental groups that they are considering the environment in their wood sourcing.

Asked how FSC certification affected the business, Gilmore

said that it “led to major changes in how we managed some aspects of our business at first, but after a couple of years it just became part of what we do”. While the company always sought to be a considerate neighbor and focused on health and safety and environmental stewardship, the FSC process formalized these aspects. FSC certification pushed the company into being more proactive with regard to social and cultural factors, he added.

“The initial driver was the market,

but it did not take long before the business recognized the broader benefits of what we were doing,” Gilmore said.

Audits as a risk management tool

The company’s performance with regard to its FSC requirements is audited every year, with a more comprehensive audit every five years. The five-year audit sees three auditors visit the company over five days, while the annual reviews involve one auditor over three days.

The company spent significant amounts of money bringing its monitoring and reporting systems up to FSC standard, Gilmore said, but it was worth it. “We made major changes in how we managed our business, particularly in relation to the environment, but putting the time in up-front just saves so much time later on.

“I actually find the auditor assessments really useful when it comes to making business improvements. It is a great risk management tool,” he added.

Being FSC certified means the company must have well managed forest pratices. This includes understanding forest dynamics, health and impacts of harvesting. It also means knowing what to do if there is an environmental incident such as an oil spill, and the impact of its operations on factors ranging from archaeological sites to water courses, sediment and soil erosion.

One consequence of FSC certification is that the company engages with the local community much more than it did in the past, on issues ranging from the hours of operation and routes of logging trucks to cultural issues.

Slow but steady

Pan Pac has taken a “slow but steady” approach to FSC certification, starting with a focus on its forest operations and then extending coverage to its own sawmill and its export sales. With its parent company becoming increasingly demanding on the certification of products, Pan Pac’s lumber and pulp mills hold the Chain of Custody certificate covering the manufacturing of product through to completion, providing a guarantee about the production of FSC certified products and allowing the wood the company produces to be traced all the way back to the forest it came from – something that is increasingly important to customers.

“I actually find the auditor assessments really useful when it comes to making business improvements. It is a great risk management tool.”

Brett Gilmore, Environmental and Technical Adviser, Pan Pac

References

1. Global Carbon Project, 2013. Global Carbon Budget Highlights. Available at:http://www.tfl.net PresentationHandouts/GCP%20-%20Carbon%20Budget.pdf, [accessed 28 January 2014].

2. European Commission, 2007. Report on additional options to combat illegal logging. Commission Staff Working Document. [online] Brussels, European Commission. Available at: http://ec.europa.eu/environment/forests/pdf/impact_assessment.pdf, [accessed January 21 2014].


4. Intergovernmental Panel on Climate Change, 2007. Climate Change 2007: Working Group III: Mitigation of Climate Change. [online] Available at: http://www.ipcc.ch/publications_and_data/ar4/wg3/en/ch9s9-es.html, [accessed 21 January 2014].

5. European Commission, 2012. Trends in Global CO2 emissions. Brussels, European Commission’s Joint Research Centre and the Hague, Netherlands Environmental Assessment Agency, p. 6. Available at: http://ec.europa.eu/dgs/jrc/index.cfm?id=2300&obj_id=3360&dt_code=PRL&lang=en, [accessed 21 January 2014].


7. Van Kreveld, A. and Roerhorst, I., 2008. Great Apes and Logging. Zeist, World Wildlife Fund. Available at: https://ic.fsc.org/download.great-apes-logging.a-572.pdf ,[accessed 21 January 2014].

8. Food and Agriculture Organization, 2012. Forests at the Heart of a Sustainable Future. Key messages from FAO’s State of the World’s Forests 2012. Rome, FAO. Available at: http://foris.fao.org/static/sofo/SOFO2012_executiveSummary.pdf, [accessed 21 January 2014].

9. NASA Earth Observatory. Causes of Deforestation: Direct Causes [online] Available at: http://earthobservatory.nasa.gov/Features/Deforestation/deforestation_update3.php,[ accessed 21 January 2014].

10. Spilsbury, M.J., 2005. The sustainability of forest management: assessing the impact of CIFOR criteria and indicators research. Impact Assessment Papers No. 4. Bogor, CIFOR. Available at: http://www.cifor.cgiar.org/publications/pdf_files/Books/BSpilsbury0503.pdf, [accessed January 21 2014].

11. The Co-operative Group, 2012. The Ethical Consumer Report 2012. Manchester, The Co-operative Group. Available at: http://www.ethicalconsumer.org/linkclick.aspx?fileticket=96yXzu8nyrc%3D&tabid=1557, [accessed January 21 2014].

12. Forest Stewardship Council, 2011. FSC Global Market Survey 2011. Bonn, FSC International Center. Available at: https://ic.fsc.org/market-information.345.htm, [accessed January 21 2014].

13. Forest Stewardship Council, 2013. FSC Global Market Survey 2012. Bonn, FSC International Center. Available at: https://ic.fsc.org/market-information.345.htm, [accessed January 21 2014].

© FSC Denmark

Wood is a wonderful building material – beautiful to look at, easy to work with, renewable, and recyclable, carbon-efficient, low-energy and high-performance.

With the embodied energy needed for constructing buildings accounting for 5 to 10 percent of global carbon emissions and the energy needed for heating, lighting, cooling and ventilating buildings responsible for around

40 percent of global carbon emissions,1 the construction industry and policymakers have recognized that more environmentally-efficient materials and methods need to be adopted. Wood compares favorably to other common construction materials across many environmental indicators.

FSC certified timber should be a strong pillar for a more sustainable building industry. Not only does FSC certification guarantee the use of environmentally appropriate forest management practices in the production of wood for construction, but it is also increasingly useful for companies participating in the green building industry, as well as helping ensure compliance with changing timber regulations.

Carbon emissions

Concrete and steel dominate the global market in construction materials. Yet, producing steel is 24 times as energy-intensive as producing wood, while concrete can emit 0.14 tons of CO2 per cubic meter produced.2 By contrast, timber absorbs

approximately 0.9 tons of CO2 per cubic meter,3 storing the carbon for the duration of its lifespan. As this carbon store of harvested timber remains stable while more trees are grown to replace those that have been harvested, a net carbon reduction is achieved.

The net CO2 emissions of different building materials vary greatly during their life cycle. Whereas wood-based construction materials such as timber, plywood, particle boards and hardboards absorb carbon, mineral-based construction materials like gypsum board, limestone and red bricks and metal-based construction materials such as steel plates and rolls, steel I-beams and aluminum façade elements cause significant carbon emissions during their life cycle.4 And because wood can often be recycled, there is good potential for extending the duration of its carbon sequestration capacity. For these reasons, wood can help businesses in the construction industry to comply with the many environmental regulations they face.

ConstructionSustainable building with FSC certified wood

Construction and lifetime use of energy for heating, lighting, cooling and ventilation of buildings accounts for 45-50% of global carbon emissions.1

CO2

Wood has excellent thermal insulation properties and can therefore cut the heating or cooling costs of a building.

“The subjective impression that wood products perform better than competing products with respect to the environment can be scientifically proved.” 5

Lewis Glucksman Gallery, University College Cork, Cork, Ireland © Precious Woods

Resource depletion and pollution

Wood is a renewable material, whereas most other mainstream construction materials – such as metals*, concrete and PVC – are not. Supply of some of these materials, particularly petroleum-

based plastics, is facing a crisis as shrinking reserves of non-renewable resources contrast starkly with rapidly growing demand. The Food and Agriculture Organization of the United Nations concludes that in terms of resource availability, wood from sustainable forest management systems is to be preferred over similar products made of non-renewable material.6

The residues of many petroleum-based plastics are environmental pollutants. By contrast, residues from the forest and wood industry do not pollute the environment and can often themselves be re-used as raw materials or renewable fuel. In addition, as more forests are managed responsibly, the long-term availability of wood can be ensured.

Environmental impacts of different construction materials

A 2010 study published by the Canadian Wood Council compared the environmental effects embodied in the structure and the envelope of three similar houses, one designed primarily using wood, one using concrete and one using steel. The results show that for the first 20 years, in comparison with the wood design, the steel and concrete designs respectively:

• embodied 26 percent and 57 percent more energy

• emitted 34 percent and 81 percent more greenhouse gases

• released 24 percent and 47 percent more air pollution

• discharged 4 and 3.5 times more water pollution

• used 11 percent and 81 percent more resources from a weighted resource use perspective

• produced 8 percent and 23 percent more solid wastes.7

The results of a Life Cycle Assessment published in 2002 comparing the environmental impacts of solid wood, linoleum and vinyl flooring materials (see comparisons on the next page) show that flooring made of wood has lower energy use and CO2 emissions than the other materials. It also performs better in other environmental impact

categories.8

A study conducted by Forestry Commission Scotland shows that increasing the amount of timber in buildings by replacing materials such as concrete and steel can lead to a reduction of up to 86 percent in greenhouse gas emissions.9

Performance

It is not just for environmental reasons that people use wood to build with. Quicker to work with, constructing buildings using wood is also not as weather-dependent as constructing with many other materials, so it can reduce the time and costs of building a property. Wooden structures can also be pre-engineered offsite, using the highest levels of quality control and accuracy, which can make construction more efficient.

Wood has excellent thermal insulation properties and can therefore cut the heating or cooling costs of a building10; it is commonly used in Passivhaus energy-efficient buildings. Wood-frame buildings can easily be changed to adapt to new needs and thus extend their life, and wood can be re-used in new buildings.11 Wood is more earthquake resilient than concrete. And, wood can contribute to a better inner-room climate as it absorbs moisture from the air when the humidity level in a space is high, releasing it when the humidity level is low. In addition, wooden products tend to not emit any harmful vapors, thus also in this sense contributing to a healthy inner-room climate.12

As more forests are managed responsibly, the long-term availability of wood can be ensured.

* Nowadays, some metal construction materials such as steel and aluminum are highly recyclable.

Replacing materials such as concrete and steel can lead to a reduction of up to 86 percent in greenhouse gas emissions.9

© auremar

Life Cycle Assesment comparing different window frame materials

Materials compared

The following graphs show the results of a Life Cycle Assessment (LCA) comparing the environmental impacts of windows made either of aluminum, PVC or wood.13 LCA is a widely accepted method to assess the potential environmental impacts of a product or service throughout its lifetime (i.e. from raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling). The results show that wood windows perform better in terms of environmental impacts compared to the commonly used alternatives of aluminum or PVC.

Aluminum

PVC

Wood

The global warming potential of wood is 20% lower than aluminum and 9,9% lower than PVC (kg CO2-eq.)

20%

1089

996

906

The eutrophication potential of wood is 45% lower than aluminum and 55% lower than PVC (kg phosphate-eq.)

55%

0,2

9

0,3

1

0,2

0

The acidification potential of wood is 138% lower than aluminum and 119% lower than PVC (kg SO2-eq.)

138%

5

4,6

2,1

The photochemical ozone creation potential of wood is 44% lower than aluminum and 69% lower than PVC (kg ethene-eq.)

69%

2,3

2,7

1,6

The London 2012 Olympic Games

High-profile projects such as the London 2012 Olympic Games are a stunning showcase for the possibilities of wood. More than two-thirds of the wood used to build the Olympic Park was FSC certified. The iconic Olympic Velodrome used 56 km of Siberian Pine for the surface of the cycling track, all of which came from FSC certified sources.14

In order to meet its target of maximizing the use of legal and sustainable timber, the Olympic Development Authority created a Timber Management Plan and a Timber Supplier Panel, which all contractors on the Olympic Park were obliged to use. As Charles Thwaites, Executive Director of FSC UK, comments: “When a project of this magnitude can place high environmental standards at its heart, it should surely encourage others to strive to do the same. We hope that an increased awareness of FSC and greater demand for sustainably sourced timber and paper will be one of the enduring legacies of London 2012.”

The London Olympic Velodrome, England © Olympic Delivery Authority

Durability

When it comes to durability, a study of buildings demolished in Minneapolis and St. Paul, USA showed that wood buildings had a very long lifespan. Sixty-three percent of the wood buildings demolished were over 50 years old and the majority were past the age of 75.15 Furthermore, because the reasons for demolition were related to changing land values, lack of suitability for current needs and lack of maintenance of non-structural components, rather than performance, the study showed that structural systems made from wood were fully capable of meeting the longevity expectations of buildings.16 According to the Canadian Wood Council, with an understanding of how to protect wood from decay and fire, wood buildings can be expected to last for as long as we

wish.17

No-maintenance wood materials

As with all construction materials, more understanding is needed of how to keep wood from decaying in order to make buildings last longer. New methods of pressure impregnation mean that it is now possible to build with wood that does not require any maintenance – without the use of toxic chemicals which have traditionally been used in the pressure-impregnating of wood. This further increases the competitive credentials of wood as a green alternative to steel or concrete.

People’s positive response to wood

Some research indicates that there is a link between our perceived well-being and the

use of wooden objects and finishings in interiors. A Canadian study from 2006 suggests that “people’s response to wood is, for the most part, extremely positive, with subjects generally showing a strong preference for rooms containing many wood details. There also appears to be a strong belief that the use of wood can help to create healthy environments, and commonly evoked descriptions for wooden rooms include ‘warm’, ‘comfortable’, ‘relaxing’, ‘natural’ and ‘inviting’.”18

Recent years have seen the emergence of a trend in ‘green living,’ reflecting a need felt by many consumers for a more eco-conscious and healthy lifestyle. This trend includes a preference for natural materials such as wood for interiors, furnishings and houses.

W

Wood structures are not as weather dependant as other building materials.

Wood has excellent thermal insulation properties.10

ood contributes to a better inner room climate

Wood contributes to a better inner room climate.12

The Bullitt Center in Seattle Seattle’s Bullitt Center showcases the possibilities of wood construction techniques. Using wood from the nearby forests of the Pacific Northwest, the 50,000 square foot building uses heavy timber framing for the upper four floors, which is still uncommon for new commercial buildings. By using timber framing over a concrete base, the Bullitt Center is combining the materials wisdom of historic construction techniques with the benefits of modern engineering. All of the wood in the Bullitt Center is FSC certified and sourced from within a 600 mile radius, helping it to achieve its aim of being the greenest commercial building in the world. 19

“The goal of the Bullitt Center is to change the way buildings are designed, built and operated to improve long-term environmental performance and promote broader implementation of energy efficiency, renewable energy and other green building technologies,” states the website of the Bullitt Center. The Center is owned by the Bullitt Foundation, which developed the building and supports environmental projects throughout the Northwest USA.

The building uses glued laminated timbers,20 which can not only be designed and engineered for a long lifespan, but create incentives to use smaller, second-growth timber and reduce market pressure on rare old-growth forests. FSC strictly protects rare old-growth forests and their rich ecosystems. 21

The Bullitt Center, Seattle, USA © Ben Benschneider

A new trend towards ‘green living’ is emerging and includes a preference for natural materials such as wood for interiors, furnishings and houses.

One of the disadvantages commonly associated with wood for outdoor use is its susceptibility to the weather. Traditionally, wood has been weatherproofed through the regular application of chemical treatments.

In recent years, Norwegian company Kebony has commercially applied a new technology that modifies wood in an environmentally-friendly manner in order to prevent decay and improve performance and appearance. With this technology, FSC certified wood is made more durable, harder and more stable using liquids from bio-waste material. The durability of the wood is achieved without the drawbacks that come with traditional environmentally unfriendly impregnation methods.

‘Kebonized’ wood carries the Swan Eco-label, the official sustainability eco-label of the Nordic countries. It provides an alternative to hardwoods from

tropical regions as it is very resistant to weather and wear, has a strong decay resistance and a long lifespan. According to the company, Kebonized wood lasts seven to nine times as long as the original wood of the

same species and requires no maintenance. It can be used for many different purposes, but is especially suitable for cladding and decking.

“One of the advantages of Kebony is that it is real wood, and not a composite product involving plastics, as many alternative construction materials in decking and cladding are,” says Jan T. Nielsen, Director

of Marketing at Kebony. “It is therefore of consistent quality, and the waste it produces is not poisonous. At the end of its lifecycle, Kebony can be burnt in a fireplace without any negative side effects.”

Kebony uses FSC certified wood. Nielsen explains why they chose FSC: “We view FSC as an organization that does a proper job and it is the strongest standard in the market we are working in. As we are importing wood into the EU, we know that when our wood is FSC certified we can rest assured that it supports us complying with the new EU Timber Regulation.”

The wood lasts seven to nine times as long as the original wood of the same species and requires no maintenance.

© Kebony ASA

Making wood lastCase study:

Kebony

FSC in green building schemes

The construction of buildings complying with the standards of various green building schemes has boomed in recent years and proved to be an important driver for FSC certification. Ratings systems such as the USA’s Leadership in Energy and Environmental Design (LEED) and the UK’s Building Research Establishment’s Environmental

Assessment Method provide credits – and thus, market incentives – for FSC certified products.

In the USA for example, green building represented 25 percent of all new construction activity in 2010, and the value of all green building construction starts was up 50 per cent from 2008 to 2010.22 Every day, the LEED program certifyiws 1.5 million square feet of building space, and 54,000 projects with a total

of nearly 10.1 billion square feet of building space are participating in the program.23 In McGraw-Hill’s database of 60,000 LEED project specifications, collected annually, FSC certified wood was found to be the most frequently specified green-building product.24

Around the world, many public procurement policies make certification a pre-requisite for selecting suppliers of construction materials.

© Grocon PTY LTD

Grocon’s Pixel building in Melbourne, Australia has earned the countries’ first FSC full project certification, serving as a world-leading showcase for responsibly sourced wood as a green building material. 60 % of the building’s wood was sourced from FSC certified forests with the balance of wood from reclaimed sources.

Since 2008, the USA’s Lacey Act prohibits the trade and use of illegally-harvested timber, both imported and domestically produced.

Countries having adopted a green public procurement policy (detailed description on the following page)

National and international regulations on wood

Around the world, many public procurement policies make certification a pre-requisite for selecting suppliers of construction materials. In the UK, for example, timber procurement by central and local government – which accounts for around 40 percent of the UK market25 – is covered by a sustainable timber procurement policy, which recognizes FSC and Programme for the Endorsement of Forest Certification (PEFC) certified timber. And there are many other examples of laws and regulations

governing the purchase of legal and sustainable wood-based products (see table overleaf).

A key example is the European Union Timber Regulation (EUTR)26, which came into force on 3 March 2013, and is designed to prevent illegally-logged timber to be placed on the European market. The EUTR exposes importers of illegal timber or products derived from these to serious penalties and obliges them to have a “due diligence system” in place to routinely control the legality of the imported products. Products from verifiable sources with full chain of custody certification are recognized as in lowest risk categories. FSC certification

can be used by such importers as part of their due diligence system.27

Australian legislation will follow the EU approach by requiring a due diligence system, of which the specifics will be formulated before November 2015. In this case, there is a good chance that FSC certification will be recognized as an automatic proof of compliance with the due diligence requirements. Since 2008, the USA’s Lacey Act prohibits the trade and use of illegally-harvested timber, both imported and domestically produced. Similar legislation in Switzerland demands transparency about the origin and species of imported timber.

New Zealand Japan

Country Products Mandatory for... Voluntary for...FSC specifically?*

Austria** Wood products Federal government (departments and agencies/non-departmental public bodies)

Devolved states and communities

Yes

Belgium** Wood products Federal government (departments and agencies)

Provinces and communities. The Walloon Region has a policy solely for paper.

Yes

Denmark** Wood and paper Central government and local authorities

Yes

Estonia** Wood products Central government and local authorities

Yes

Finland*** Wood and wood products

Central government by 2015. Municipal and local governments: 50% of all procurement by 2015.

Yes

France** Timber only Public buyers No

Germany** Wood products (excl. paper and paper products)

Federal institutions Yes

Japan*** Wood and wood products

Central levels of ministries and agencies, diet, courts and independent administrative institutions

Local governments Yes

Green public procurement policies for sustainable wood-based products.

In the following table an overview is provided of countries that have adopted public procurement policies for sustainable wood-based products. The actual number of countries having such a policy may be higher as more and more countries are adopting green public procurement policies nowadays.

Public procurement policies

* This refers to whether or not FSC certification is explicitly accepted as sufficient proof that wood-based products come from sustainable / responsible sources ** WWF: Internal survey in the network of WWF, 201228 *** Central Point of Expertise on Timber (CPET)29

Country Products Mandatory for... Voluntary for...FSC specifically?*

Latvia** Timber products Policy is voluntary No

Lithuania** Timber used in construction or in the production of paper, furniture, wall panels, thermal insulation or windows.

Contracting authorities conducting public procurement

No

Malta** Graphic Paper (100%) Furniture (10-30%) Construction (10-30%) Thermal Insulation (10-30%) Wall Panels (10-30%) Windows, Glazed Doors and Skylight (10-30%)

Mandatory for graphic paper

Yes

Netherlands** Timber and paper A 100% sustainable procurement by 2015

Yes

New Zealand*** Timber and timber products

Public Service Departments, The NZ Defence Force and NZ Police

Yes

Romania** Wood products Policy is mandatory No

United Kingdom**

Timber and wood products

Central Government departments, their executive agencies and Non-Departmental Public Bodies

Local authorities and the wider public sector in England.

Similar policies in Scotland, Wales and Northern Ireland.

Yes

References

1. Edwards, B., Mitigation: The Built Environment and Climate Change. Architect.com Sustainability Hub. [online] Available at: http://www.architecture.com/SustainabilityHub/Designstrategies/Introduction/1-0-3-Mitigationthebuiltenvironmentandclimatechange.aspx , [accessed 21 January 2014].

2. Confor, 2011. Written evidence submitted for UK Government Natural Environment White Paper 42. [online] Available at: http://www.publications.parliament.uk/pa/cm201012/cmselect/cmenvfru/writev/whitepaper/m42.htm , [accessed 20 January 2014].

3. Beyer, G., Defays, M., Fischer, M., Fletcher, J., de Munck, E., de Jaeger, F., Van Riet, C., Vandeweghe, K. and Wijnendaele, K. 2011. Tackle Climate Change: Use Wood. [e-book] Brussels, CEI-Bois. Available at: http://www.cei-bois.org/files/FINAL_-_BoA_-_EN_-_2011_text_and_cover.pdf, p. 38, [accessed 20 January 2014].


5. Scharai-Rad, M. and Welling, J., 2002. Environmental and Energy Balances of Wood Products and Substitutes. Rome, Food and Agriculture Organization. Available at: http://www.fao.org/docrep/004/Y3609E/Y3609E00, [accessed 21 January 2014].


7. Canadian Wood Council, 2010. Energy and the Environment in Residential Construction. Ottawa, Canadian Wood Council. Available at: http://www.softwoodlumber.org/pdfs/EnergyAndEnvironment.pdf, [accessed 22 January 2014].


9. Edinburgh Centre for Carbon Management, 2006. Forestry Commission Scotland Greenhouse Gas Emissions: Comparison Carbon Benefits of Timber in Construction. Edinburgh, Forestry Commission Scotland. Available at: http://www.forestry.gov.uk/pdf/Carbonbenefitsoftimberinconstruction.pdf/$file/Carbonbenefitsoftimberinconstruction.pdf, [accessed 22 January 2014].

10. Wood for Good. Why choose wood? [online] Available at: http://woodforgood.com/why-choose-wood, [accessed 22 January 2014].


12. WoodWORKS!, 2012. Wood in healthcare. [e-book] Available at: http://www.naturallywood.com/sites/default/files/Wood-in-Healthcare.pdf, [accessed 22 January 2014].


14. Forest Stewardship Council, 2012. Going Green for the Games: London Olympic Park becomes officially FSC® certified.[online] Available at: https://ic.fsc.org/market-news.332.8.htm, [accessed 22 January 2014].

15. Wood Products Council, 2008. Durability and Service Life. Wood Design and Buildings Series. Washington, Wood Products Council. Available at: http://www.softwoodlumber.org/pdfs/wood-design-durability-service-life-fact-sheet.pdf, [accessed 22 January 2014].

16. Woodworks. Why wood? Durability and adaptability. [online] Available at: http://woodworks.org/why-wood/durability-adaptability/,[ accessed 22 January 2014].

17. Canadian Wood Council. Wood’s Heritage.[online] Available at: http://www.durable-wood.com/index.php/en/design-with-wood/durability/wood-s-heritage, [accessed 22 January 2014].

18. Rice, J., Kozak, R.A., Meitner, M.J., and Cohen, D.H. 2006. Appearance wood products and psychological well-being. Wood and Fiber Science 38(4): 657–658. Available at: http://web.forestry.ubc.ca/sbml/pdfs/Value%20Added%20Wood%20Products/Appearance%20Wood%20Products%20and%20Psychological%20Well%20Being_Rice%20e.pdf, [accessed 29 January 2014].

19. Kahn, B., 2013. Bullitt Center earns FSC project certification. [online] Available at: http://bullittcenter.org/news/blog/bullitt-center-earns-fsc-project-certification, [accessed on 22 January 2014].

20. Alter, L., 2013. Is the Bullitt Center the world’s greenest building? [online] Available at: http://www.treehugger.com/green-architecture/bullitt-center-worlds-greenest-building.html, [accessed 30 January 2014]Available at:.

21. Bullitt Foundation [online] Available at: http://www.bullittcenter.org/, [accessed 30 January 2014].

22. McGraw-Hill Construction, 2010. Green Building Market Grows 50% in Two Years despite Recession, Says McGraw-Hill Construction Report. [online] Available at: http://construction.com/aboutus/2010/1112pr.asp, [accessed 22 January 2014].

23. U.S. Green Building Council. About USGBC [online] Available at: http://www.usgbc.org/about, [accessed 22 January 2014].

24. FSC U.S. Green building. [online] Available at: https://us.fsc.org/green-building.209.htm, [accessed 22 January 2014].

25. Moss, N., 2010. The UK government timber procurement policy [online] Available at: http://www.thenbs.com/topics/environment/articles/ukgovernmenttimberprocurementpolicybreeam.asp , [accessed 22 January 2014].

26. European Commission, Timber regulation [online ] Available at: http://ec.europa.eu/environment/forests/timber_regulation.htm, [accessed 22 January 2014].

27. Forest Stewardship Council, EU Timber Regulation [online] Available at: https://ic.fsc.org/timber-regulation.46.htm, [accessed 22 January 2014].

28. WWF, 2012. [unpublished survey].

29. For Finland: Ministry of Employment and the Economy, 2010. Strategic Programme for the Forest Sector. Finnish National Public Procurement Policy for Wood-based Products. Available at: http://www.cpet.org.uk/uk-government-timber-procurement-policy/files/Finnish_National_Public_Procurement_Policy_for_Wood-Based_Products.pdf, [accessed 22 January 2014]; for Japan: Central Point of Expertise on Timber. Government procurement of timber in Japan. [online] Available at: http://www.cpet.org.uk/uk-government-timber-procurement-policy/international-context/international-policies-1/japan,[ accessed 22 January 2014] and for New Zealand: Central Point of Expertise on Timber. Government procurement of timber in New Zealand [online] Available at: http://www.cpet.org.uk/uk-government-timber-procurement-policy/international-context/international-policies-1/new-zealand, [accessed January 2014].

Retail

The world’s retailers are part of a major industry; in the US alone, the retail sector is estimated to include one million stores.1 Deloitte’s 2013 Global Powers of Retailing Report presents findings on the 250 largest retailers in the world, representing 94 percent of the retail industry. It shows that the global retail industry has continued to grow, despite global economic difficulties. In 2011 it generated a revenue of US$4,271 trillion, of which 23.8 percent came from foreign markets. Furthermore, the companies report that they maintained a 3.8 percent composite net profit margin in 2011.

The study also shows that the

increase in retail demand has grown particularly for companies in emerging markets such as Africa, the Middle East, Latin America and parts of the Asia Pacific region. These markets are characterized by a growing middle class and young populations.2

Increasing demand for green consumer goods

An increasing number of retailers of all sizes incorporate green strategies in their businesses or are interested in doing so. A 2009 survey by Retail Systems

Research investigating 94 retailers worldwide stated that 48 percent would describe the importance of their work with green initiatives as a “strategic initiative” for the enterprise, and 22 percent as a “tactical initiative” in certain areas of the business. Ten percent reported that they were investigating green initiatives, while 62 percent believed that customers expected them to focus on green initiatives.3

The demand for sustainable products and the pressure on retailers to implement sustainability programs are also increasing.

Market recognition

The FSC logo is increasingly recognized around the world, and more and more consumers rely on the logo for assurance of responsible sourcing. The following rates of prompted awareness of the FSC logo were found in consumer surveys carried out in 16 countries.


The Netherlands

71% 2009, Heliview

Hong Kong 29% 2011, WWF

Switzerland 68% 2011, WWF

UK 43% 2011, GfKNOP

USA 19% 2011, FSC US


Australia 15% 2012, Mobium Group

Belgium 31% 2011, Listen Media

Denmark 35% 2012, FDB

France 15% 2010, IFOP

Germany 28% 2011, PEFC Germany

Numbers based on prompted awareness

From forest to shelf with FSC

Studies4 show that companies develop and strengthen their sustainability programs because of requests from relevant stakeholders. The top four stakeholders pressuring companies to take those steps are:

• Employees

• Competitors

• Governments

• Customers

The building supplies store “Coop Building + Hobby”. © Coop Genossenschaft

A Retail Sustainability Report from 2013 conducted by the Retail Industry Leaders Association shows that companies choose to develop and strengthen their sustainability programs because of requests from relevant stakeholders. The top four stakeholders pressuring companies to take those steps are employees, competitors, governments and customers.4

According to a study by the Centre for Retail Research on behalf of Kelkoo, there is a emerging market for green consumer goods in Europe. The study shows that the value of this market is set to double to €114 billion by 2015.5

Taking a closer look at the UK, the development in the market for ethical goods and services has also been positive in recent years, remaining resilient despite the economic downturn. In the UK, the total value of ethical markets has increased from £35.5

billion in 2007 to £47.2 billion in 2011. Furthermore, consumers show concern for a company’s responsible reputation, with half of UK consumers basing their decision to buy a product on reputation, and 41 per cent using reputation as a basis for recommending a company to others. UK consumers are also spending an increasing amount on ethical goods. In 2000, the average ethical annual spend per UK household was £291, which had increased to £989 by 2011. Spending on sustainable timber and paper grew by three percent from 2010 to 2011.6

Why choose FSC?

More and more consumers are choosing green goods when shopping, and FSC certified companies are feeling this increasing demand. From a global perspective, awareness of the FSC label has increased since 2009. FSC’s 2011 Global Market Survey reveals that two thirds of the respondents – 5,032 FSC certificate holders from 109 countries – had observed

a higher awareness about responsible forestry and FSC, and an increased demand for certified products. Three quarters of respondents based in the global South had experienced increased demand, while 65 per cent of those based in the global North had seen an improvement.7

The increase in demand for FSC certified products has also been noted in Europe. According to a survey conducted by FSC Denmark in 2013, 67 percent of Danish companies working with FSC are very satisfied or satisfied with their FSC certificate or trademark license. Furthermore, 37 percent experienced an increase in demand for FSC certified products within the previous 12 months, while 27 percent experienced it as stable. The primary source of demand was other companies (64 percent), followed by private consumers (28 percent). Fifty-six percent of the certified companies experienced FSC as a pre-condition for doing business.8

Further surveys show that several European countries experienced an increase in the recognition

Global demand for FSC certified products

FSC’s 2011 Global Market Survey reveals that two thirds of the respondents – 5,032 FSC certificate holders from 109 countries – had observed a higher awareness about responsible forestry and FSC, and an increased demand for certified products. Three quarters of respondents based in the global South had experienced increased demand, while 65 percent of those based in the global North had seen an improvement.

There is an emerging market for green consumer goods in Europe. A study shows that its market value is set to double to €114 billion by 2015.5

of the FSC logo alongside an increase in the demand for FSC certified products. In the UK, 33 percent of consumers have knowingly bought FSC labeled products, and in Denmark 35 percent know the FSC label.9

FSC is growing outside Europe as well. The Asian market potential for FSC certified products has grown and it is expected that this growth will continue. Awareness of the label among consumers has also increased. In Hong Kong, 29 percent recognized the FSC label in 2011, compared to only 11 percent in 2008.10

Worldwide, more and more retailers are choosing FSC certified products as part of their portfolio. The FSC label is an easy way of showing customers that they are buying a product derived from forest operations

that protect the rights of the workers and local communities while maintaining the forest biodiversity and wildlife. Retailers can give consumers confidence that they are ‘doing their bit’ towards becoming more sustainable by buying products from responsibly-managed forests. As more retailers sign up, more consumers become aware, more suppliers perceive the business case for meeting

the standard and ultimately, more forest resources are certified. By committing to sell only responsibly-sourced timber, packaging and paper, retailers not only gain a reputational benefit for themselves, but may also be able to win new business as governments and other large procurers impose minimum standards on suppliers they buy from.

The majority of US respondents thought it to be “very important” or “somewhat important” that companies are environmentally friendly or “green”.11

The ImagePower Green Brands Survey from 201111 shows that:

• Consumers in Australia, France, the United Kingdom, and the United States cited packaging as their primary source of information on green brands and a major factor in determining what they will purchase.

• In China, France, and Germany, consumers rely on certification marks to help them decide whether a product is green.

Somewhat important, 56%

Undecided, 3%

Very unimportant 9%

Somewhat unimportant,

15%

Very important, 17%

48 % 62%48%

of retailers worldwide describe the importance of their work with green initiatives as a strategic initiative.3

of retailers worldwide believe that consumers expect them to focus on green initiatives.3

Kingfisher is Europe’s largest home improvement retailer. Its retail brands offer products for the homemaker, serious DIYers and trade professionals.Timber is one of its most important natural resources. In 2012/13, the company sold

6.4 million m3 of roundwood equivalent, comparable to an estimated forest area the size of Switzerland.

B&Q, the UK home improvement chain and part of the Kingfisher Group, was a founding member

of FSC, and in 1993 became one of the first retailers to develop a responsible timber policy. At an early stage, the company announced plans to work towards procuring all of its timber from sustainable sources.

Building strategic relationships

In 2011, B&Q UK reached this target. It now buys timber for more than 16,000 products from independently certified sources,

most of them FSC certified, making it the first major UK retailer to reach this landmark. Across the entire Kingfisher group, 89 percent of reported timber volume sold came from proven well-managed or recycled sources.

Kingfisher’s next challenge is to extend its achievement across all of its operating companies. This has led it to reappraise its relationships with suppliers, several of which have grasped FSC’s importance to the company and responded by building strategic relationships that ensure transparency and resource security.

As Europe’s largest home improvement retailer, every week millions of people buy products to make their homes better. Kingfisher’s purpose is to help create ‘Better Homes, Better Lives’. Homes use substantial amounts of energy and raw materials to keep them warm and comfortable, so increasingly,

“B&Q UK is a founding partner of FSC and in February 2011 became the first major UK retailer to only source timber products from proven responsible sources.”

Kingfisher plc website12

© Kingfisher

Retailing timber from responsible sourcesCase study: Kingfisher

Retailers working together to support the EU timber regulation

Kingfisher has learned that it cannot do everything on its own. As well as its work with WWF, the Tropical Forest Trust and Rainforest Alliance, in 2010, the company invited IKEA, Marks and Spencer, and Carrefour to join it in forming the Timber Retail Coalition to support EU-wide regulations to control the import of illegally-logged timber.

The European Union Timber Regulation came into force in 2013, making it against the law to sell illegally-harvested timber and timber products within the EU. The members of the Timber Retail Consortium have come together to raise awareness of the need for clear and workable practices so that customers can be confident this is the case.

These developments show how the retail sector is anticipating and staying ahead of changes in regulation and growing consumer expectation and pressure. FSC can be an active partner in helping these schemes to develop.

Kingfisher has pledged that by 2020:

All products containing tropical

hardwood will either be FSC certified or endorsed by schemes working towards FSC certification

None of its products will be sourced

from materials linked to tropical deforestation

All timber and paper used throughout its

operations will be from responsible sources

‘better homes’ must mean homes that are more efficient and more sustainable.

‘Net Positive’ is the company’s ambition to contribute positively to some of the big challenges facing the world, while creating a more valuable and sustainable business for their stakeholders. With Net Positive, Kingfisher is committing to make a positive contribution in four areas: timber, energy, innovation and communities.

In practice this means: not just preventing deforestation but working towards net reforestation; Kingfisher has pledged that by 2020 all timber and paper used throughout its operations (product, stores, packaging, goods not for resale) will be from responsible sources. In addition, the company has set a target that all products containing tropical hardwood will either be FSC certified or endorsed by schemes working towards FSC certification, and that none of its products will be

sourced from materials linked to tropical deforestation.

All Kingfisher UK and French operating companies have met the tropical hardwood target for purchased goods and have undertaken to determine the origin of all materials that could contribute to deforestation, such as palm oil and leather – a project which they hope to have completed by 2015.

Traceability is key

From Kingfisher’s point of view, traceability is key to the success of the certification process. To be able to tell its customers that it sells only sustainably sourced timber, the company must be able to measure progress and check sources of supply. FSC certification plays an important role in building such resilient supply chains.

1

2

3

References

1. Weber, A. Retail Industry Analysis 2014 - Cost & Trends [online] Available at: https://www.franchisehelp.com/industry-reports/retail-industry-report/, [accessed 28 January 2014].

2. Deloitte, 2013. Global Powers of Retailing 2013. New York, Deloitte. Available at: http://www.deloitte.com/assets/Dcom-Australia/Local%20Assets/Documents/Industries/Consumer%20business/Deloitte_Global_Powers_of_Retail_2013.pdf, [accessed 22 January 2014].

3. Kilcourse, B. and Rowen, S. 2009. Real-World Green: The Role of Environmental Savings in Retail. Retail Systems Research. Available at: http://www.rila.org/sustainability/sustreport/sustainability-report-landing-page/Documents/RetailSustainabilityReport.pdf, [accessed 22 January 2014].

4. Retail Industry Leaders Association, 2013. 2013 Retail Sustainability Report: Fueling Continuous Development. Arlington, RILA. Available at: http://www.sustainablebrands.com/digital_learning/white-paper/2013-rila-sustainability-report-fueling-continuous-development, p. 36, [accessed 30 January 2014].

5. PressUK, 2010. European consumers pay 46% more for green retail products. [online] Available at: http://press.kelkoo.co.uk/european-consumers-pay-46-more-for-green-retail-products.html, [accessed 22 January 2014].

6. The Co-operative Group, 2012. The Ethical Consumer Markets Report 2012. Manchester, The Co-operative Group. Available at: http://www.co-operative.coop/corporate/Investors/Publications/Ethical-Consumerism-Report/ , [accessed 22 January 2014].

7. Forest Stewardship Council, 2011. FSC Global Market Survey 2011. Bonn, FSC International Center. Available at: https://ic.fsc.org/market-information.345.htm, [accessed 22 January 2014].

8. FSC Denmark, 2013. FSC Markedsundersøgelse 2013. Available at: http://dk.fsc.org/undersgelser-om-fsc.43.htm, [accessed 22 January 2014].

9. Forest Stewardship Council, [unpublished survey].

10. WWF-Hong Kong, 2012. Tree Change [online] Available at: http://www.wwf.org.hk/en/reslib/publications/aboutlife_2012autumn/?8522/Tree-Change, [accessed 30 January 2014].

11. 2011. Green brands, global insights 2011. Available at: http://www.landor.com/pdfs/k9/GB2011_Pamphlet_8June2011.pdf, [accessed January 23 2014].

12. B&Q, 2011. B&Q becomes first retailer to buy 100% responsibly sourced wood [online] Available at: http://media.diy.com/2011/02/18/bq-becomes-first-retailer-to-buy-100-responsibly-sourced-wood/, [accessed 23 January 2014].


Packaging

Most packaging is disposable. The EU and many other markets have regulations and targets in place to minimize the environmental impact and increase recycling rates for waste from packaging.1 Packaging companies therefore have to demonstrate the highest environmental credentials and show that their products are responsibly sourced, as well as renewable, reusable and recyclable. FSC certification is a valuable tool for this.

The packaging industry

The global consumer packaging market is valued at approximately US$400 billion. A closer look at packaging consumption by region reveals that Asia, the Middle East and Africa comprise 34 percent, Europe 34 percent,

North America 27 percent and Latin America 5 percent. Russia, India, Brazil and China are estimated to be the source of about 30 percent of global demand, a proportion that will increase as their economies develop further. Packaging sales in these emerging markets are expected to continue to show strong growth because, due to a growing middle class, increased consumption and demand for consumer goods is driving the demand for more sophisticated packaging. 2

The packaging sector can be divided into six main categories. The category with the largest market share is paper and board (34 percent), followed by rigid plastics such as tubs, pots and jars (27 percent), glass (11 percent), flexible plastic (10 percent), beverage cans (6 percent) and others (12 percent).3

Paper for the environment

A large proportion of packaging – paper, board, card, sacking, and other fibrous materials – is derived from forest products. The supply chains for forest-derived packaging materials – as opposed to aluminum, steel or other sources – are less energy-intensive than their competitors, giving them a lower carbon footprint. A report by the Danish Environmental Ministry comparing the environmental impacts of different packaging materials – paper, cardboard, glass, PET plastic, PVC, steel and aluminum – concluded that the CO2 emissions per kg of paper and cardboard packaging were much lower than those of the non-wood based packaging materials.4

Paper and board, 34%

Rigid plastics, 27%

Beverage cans, 6%

Flexible plastics, 10%

Glass, 11%

Others, 12%

The packaging sectorPaper and board has the largest market share in the packaging industry.3

Moving towards responsible packaging with FSC

According to a 2007 survey on packaging by PaperImpact,

nine out of ten European consumers would choose paper-based packaging or

labels over other materials.5

© gpointstudio

Beverage cartons tend to have fewer environmental impacts in terms of greenhouse gas emissions, fossil resource consumption and acidification than alternative beverage packaging such as PET plastic and glass bottles.6 Moreover, paper packaging, especially

paper cartons, can also be characterized as the most practical choice, being strong, light and versatile.7

Furthermore, most paper and paper-based packaging are completely recyclable and biodegradable. Paper is the most recycled material in Europe,8 while in the US nearly 80 percent of paper mills depend on paper recycling programs to supply the raw materials to make new paper.9 Not only does

recycling reduce greenhouse gas emissions and conserve natural resources, it also saves landfill space.10

When it comes to the consumer, paper is regarded as being more environmentally friendly than competing materials. According to a 2007 survey on packaging by PaperImpact, nine out of ten European consumers would choose paper-based packaging or labels over other materials. At the same time, 87 percent of the respondents agreed that paper packaging was more convenient and environmentally friendly than other types of packaging. For this reason, 93 percent thought that manufacturers should use more paper-based packaging and labels.11

Many large retailers are now banning plastic bags at their outlets, while countries such as Ireland have introduced a plastic bag tax. In Italy, non-biodegradable plastic bags have been prohibited, and Bangladesh, Taiwan and Singapore are taking steps to minimize plastic bag use.12 Paper and paper-based packaging does not come under this kind of pressure.

Why choose FSC?

As the packaging industry faces a worldwide demand for paper and board, and because the number of times paper can be recycled is limited, wood is constantly needed as a source for the production of packaging. This makes sustainable management of forests an essential requirement for the packaging industry. Through its high standards of responsible forestry, FSC ensures an economically viable and constant flow of timber for the industry, while maintaining forest biodiversity and securing the rights of forest communities and indigenous people.

The FSC label is a clearly recognizable logo that packaging producers can pass on to their customers – often large retailers – and ultimately, to the consumer. It demonstrates that the original material has not come from illegally logged or environmentally destructive sources. While paper items can easily be recycled, FSC also has a specific label to show when they have been made from already recycled content.

Most paper and paper-based packaging are completely recyclable and biodegradable.

A 2007 PaperImpact survey shows that 90 percent of European

consumers would choose paper-based

packaging or labels over other materials.11

The same survey shows that 87 percent of European consumers agree that paper packaging is more convenient and environmentally friendly than other types of packaging.

Case study: Klabin SA

Klabin SA is the largest producer and exporter of packaging paper in Brazil. The company has seen the advantage of environmental best practice in its own processes. In 1998, it was the first company from the paper and pulp sectors in the Americas to have its forests certified by FSC, making it more competitive across all of its product ranges in national and international markets which are becoming increasingly demanding about the origin of the forest products they consume.

As one of the biggest producers and exporters of cartonboard in the country, all of Klabin’s cartonboard mills have FSC chain of custody certification, and the company was the first in Latin America to be granted certification for the chain of

custody of its industrial sacks, which are biodegradable, recyclable and produced from forests planted specifically for this purpose.

The success of this program means that Klabin has an interest in expanding its forest base, aligning its interests with small and medium-sized farmers, with whom it works in its forestry incentive program.

“FSC recognition, along with the quality and technology employed in its production process, lends added protection to the products and brands of its customers,” a company spokesperson said.

“Our ongoing pledge is to do more with less, aware that gains in efficiency are a significant advantage for a company committed to sustainable development.”

Klabin was the first company from the paper and pulp sectors in the Americas to have its forests certified by FSC.

Doing more with lessCase study: Klabin SA

© Klabin SA

The LEGO Group is the world’s third largest manufacturer of play materials and it has always focused on producing safe

and high quality products. To minimize its environmental impact the company constantly works to find new and better ways to reduce, reuse and recycle always from its manufacturing process. With a recycling rate

of 88 percent of its waste in 2012, the LEGO Group is serious about reducing its environmental impact.

Three steps for a better planet

Annually, the LEGO Group uses more than 80,000 tons of paper-based products for packaging

and print materials. Although these numbers imply complex sourcing models and production chains, in 2011 the LEGO Group decided that from 2015 the company would exclusively use FSC certified mix paper. This was the last step in a three point plan that included the following:

1. Overall reduction of the size of product packaging;

2. Use a high amount of recycled paper; and

3. Increased use of FSC certified paper.

The three stage policy covers all of the LEGO Group’s products worldwide, including pulp-based materials used for the packages and their contents or the building instructions enclosed

“We decided on FSC through a cautious selection process, and we believe it to be the right decision for us as it matches our company values.”

Jes Faltum, Director, Environmental Sustainability, the LEGO Group

© The LEGO Group

The shift to FSC certified packagingCase study: The LEGO

Group

in the boxes. At the same time, the company also requires their licensed partners to use FSC certified paper. “It is our intent that we will only source material from suppliers that do not contribute to deforestation,” says Tim Brooks, Senior Director, Environmental Sustainability.

Smaller boxes easier on the environment

In 2011, the LEGO Group conducted consumer study to learn more about consumers’ reactions to reduced box sizes. In selected stores in Germany and the US, customers were presented with two different box sizes with exactly the same content and design on the box. More than 400,000 boxes of LEGO® products were involved, and the result was clear: consumers did not change purchase preference or behavior based on the shift in size, and the LEGO Group decided to move forward and reduce the sizes of

the boxes. In 2013, most new products launched are packed in smaller boxes, and by 2015 all LEGO products on the market will be packed in the smaller boxes. The change will reduce the CO2 impact from packaging by about

10 percent, and the smaller boxes will make it possible to save approximately 18 percent of the cardboard used for LEGO boxes.

“We are introducing the smaller boxes to reduce our impact on the environment and we hope that consumers will like the visible change. We think it makes sense to consumers, for our business and because we have an ambition to affect our planet positively. We have a responsibility towards our planet, our surroundings and the generations to come,” says Jørgen Vig Knudstrop, CEO of the LEGO Group.

The LEGO Group addresses deforestation

For the LEGO Group, FSC certification was chosen after much investigation of certification schemes.

“FSC is one of the most widely recognized initiatives to prevent deforestation. One of the

founders of FSC is Greenpeace, and the World Wide Fund for Nature recommends FSC. We decided on FSC through a cautious selection process, and we currently believe it to be the right decision for us as it matches

our company values. For other companies the solution might be a different one,” says Jes Faltum, Director, Environmental Sustainability.

FSC labeled boxes on the shelves

However, such a policy change had to be implemented in the production chain and the LEGO Group needed time to work with its suppliers to realize its new policy. In the second year after the decision was taken, the company was firmly on its way to achieve the targets with most of its packaging already being certified. By the end of 2014, the LEGO Group expects the first FSC-labeled boxes of toys to appear in stores around the world.

“We have a responsibility towards our planet, our surroundings and the generations to come.”

Jørgen Vig Knudstrop, CEO, the LEGO Group

The LEGO Group’s three step policy:

Overall reduction of the size of product packaging

Use a high amount of recycled paper

Increase the use of FSC certified paper

1

2

3

References

1. European Commission. Waste. [online] Available at: http://ec.europa.eu/environment/waste/, [accessed 23 January 2014].

2. Ernst and Young, 2013. Unwrapping the Packaging Industry: Seven Factors for Success. London, Ernst and Young. Available at: http://www.ey.com/Publication/vwLUAssets/Unwrapping_the_packaging_industry_%E2%80%93_seven_factors_for_success/$FILE/EY_Unwrapping_the_packaging_industry_-_seven_success_factors.pdf ,[accessed 23 January 2014].

3. Ernst and Young, 2013. Unwrapping the Packaging Industry: Seven Factors for Success. London, Ernst and Young. Available at: http://www.ey.com/Publication/vwLUAssets/Unwrapping_the_packaging_industry_%E2%80%93_seven_factors_for_success/$FILE/EY_Unwrapping_the_packaging_industry_-_seven_success_factors.pdf , [accessed 23 January 2014].

4. Reid, H., Huq, S., Inkinen, A., MacGregor, J., Macqueen, D., Mayers, J., Murray, L. and Tipper, R., 2004. Using Wood Products to mitigate Climate Change. A review of evidence and key issues for sustainable development. London, International Institute for Environment and Development and Edinburgh, the Edinburgh Centre for Carbon Management. Available at: http://www.fao.org/fileadmin/user_upload/rome2007/docs/Using_wood_products_to_mitigate_climate_change.pdf, pp. 46–47, [accessed 23 January 2014].

5. Confederation of European Paper Industries, 2012. Myths and Realities. [online] Brussels, CEPI. Available at: http://www.cepi.org/system/files/public/documents/myths_realities/Myths_and_realities.pdf, [accessed 23 January 2014].

6. Von Falkenstein, E., Wellenreuther, F. and Detzel, A., 2010. LCA studies comparing beverage cartons and alternative packaging: can overall conclusions be drawn? International Journal of Life Cycle Assessment 15: 938–945.

7. Confederation of European Paper Industries, 2012. Myths and Realities. Brussels, CEPI. Available at: http://www.cepi.org/system/files/public/documents/myths_realities/Myths_and_realities.pdf, [accessed 23 January 2014].


9. U.S. Environmental Protection Agency, 2013. Paper recycling [online] Available at: http://www.epa.gov/wastes/conserve/materials/paper/basics/index.htm#use, [accessed 23 January 2014].

10. United States Environmental Protection Agency. Paper Recycling. [online] Available at: http://www.epa.gov/wastes/conserve/materials/paper/basics/index.htm#benefits, [accessed 23 January 2014].


12. Planet Ark, 2012. Plastic Bag Reduction around the World [online] Available at: http://plasticbags.planetark.org/gov/othercountries.cfm, [accessed 23 January 2014].


Paper and publishing

Paper is one of the most important items in the forestry products portfolio. Around 11 percent of the wood extracted from the world’s forests is used by the paper industry,1 which annually produces 400 million tons of paper. The USA, Canada, Japan and China account for more than half of this production.2 The Confederation of European Paper Industries (CEPI) reports that the 2011 turnover in the pulp and paper industry in Europe alone was €81 billion.3 According to WWF, more than one million tons of paper are used every day, and in emerging markets such as China this consumption is steadily increasing.4

This means that the industry must meet a substantial demand for paper. Despite modern technology, paper-based media are still very popular, even among young consumers. A study of 734

Europeans between the age of 16 and 26 shows that 80.5 percent think that paper is useful and necessary, and that they “need it around.”5 According to the World Association of Newspapers and News Publishers, over 2.5 billion people worldwide read print newspapers at least once a week.6 The global publishing market – including books, newspapers and magazines – reached a value of US$244.4 billion in 2011, and is projected to reach US$273 billion by 2016, an increase in value of 11.7 percent. Books are the largest segment of this market, accounting for 36.9 percent of its total value.7

Both the paper and publishing industries rely on thriving forests to meet demand. Deforestation and unsustainable forestry are a threat both to the world’s forests and to the industry itself.

Why choose FSC?

As the paper industry depends on forests to provide the raw material for production, a long-term management plan and halt in deforestation are key. Through responsible management of forests, the FSC certification

system ensures that no more trees are harvested than the forest itself can manage to reproduce, thus securing a

constant source of raw material.

FSC proves to be beneficial not only when it comes to ensuring a continuous supply of raw material. Although consumers regard paper and paper products as an important part of their everyday lives, many also feel that the paper industry plays a big role when it comes to irresponsible forestry. A survey of 5,000 European and US consumers conducted in 2011 showed that 76 percent believed that there was a connection between the paper industry and the loss of tropical rainforest, and 73 percent regarded paper as the product having the biggest impact on forests.8

The paper industry annually produces 400 million tons of paper.2

$244,4 bn

$273 bn

The global publishing market – including books, newspapers and magazines – reached a value of US$244.4 billion in 2011, and is projected to reach US$ 273 billion by 2016, an increase in value of 11.7 percent.7

Value growth

Source sustainably with FSC

According to WWF every day 1 million tons of paper is used globally.4 That is the equivalent of 500 Boeing 747 aircrafts.

© Africa Studio

In light of these findings, the value of the FSC logo as a way of reassuring consumers that the paper comes from sustainable forestry with the highest environmental and social production credentials becomes clear.

The industry itself has already taken several steps towards more sustainable and environmentally-friendly paper production. In Europe, 92.2 percent of forests managed by European pulp and paper companies are certified either by FSC or the Programme for the Endorsement of Forest Certification. In addition, 54 percent of the energy used in European paper mills is renewable, while 95 percent of the paper industry’s on-site electricity use is produced through co-generation (combined heat and power).10 In Europe, 72 percent of consumed paper is sent for recycling and 90 percent of newspapers are printed on

recycled paper. In addition, 90 percent of corrugated boxes in Europe are made from recycled fibers.11 Furthermore CEPI reports that while paper production in Europe increased by 46 percent between 1991 and 2010, and the use of virgin fiber increased by 19 percent, use of recycled fiber has nearly doubled, with an 89 percent increase,12 taking advantage of paper’s excellent environmental credentials. Both recycled and virgin paper are biodegradable, recyclable and, if they carry the FSC logo, come from responsible and renewable sources.

Nothing wrong with responsibly using certified paper and paper products

While some people think that using fewer forest products

will protect forests, this is not necessarily the case. Especially when they are privately owned, pressure to convert forests to non-forest uses increases if there is diminished demand for forest products.

Paper is both biodegradable and easily recyclable, and as long as the paper products are derived from responsibly managed forests there is nothing wrong with using them. Wood is a sustainable material in that it is a renewable source, and also has the benefit of storing carbon, thereby contributing to the reduction of global warming.

Although consumers regard paper and paper products as an important part of their everyday lives, many also feel that the paper industry plays a big role when it comes to irresponsible forestry.8

The consumer prefers paperA survey of 4,500 European consumers in 2011 shows that:

thought that “reading from paper is nicer than reading off a screen.” That rate rose to 83 percent for consumers between the ages of 18 and 24. 74 percent – and 78 percent of 18 to 24 year olds – found paper more pleasant to handle and touch than other media.9

80%

Mondi, an international packaging and paper group, relies on healthy, functioning ecosystems to source wood for the production of uncoated

fine paper and containerboard. Ensuring that the company meets the requirements of responsible forestry practices, from the management of its own forests through to the procurement of wood and fibre through the supply chain, is Mondi’s fundamental business imperative. The sustainability of resources will ensure this continued access, and the ability to continue to meet customer requirements.

The adoption of voluntary standards plays an important role in the development of internal skills and resources, monitoring and validation and in Mondi’s drive towards continuous improvement, while third party certification is a critical component of its ‘license to trade’, and an ever-increasing requirement within the industry.

Mondi owns or leases 305,952 hectares of land in South Africa, of which 202,466 hectares – around 66 percent – are planted

with hardwoods and softwoods. The Group also leases and manages 2.1 million hectares of boreal forests in Russia. All of its leased, owned and managed

land is FSC certified. In 2012, 522,260 hectares (25 percent) of the Russian landholdings and 76,398 hectares (25 percent) of the landholdings in South Africa were set aside for conservation.

Mondi also supports and uses FSC and other standards for

wood and fibre purchased. In 2012, a total of 46 percent of wood supplied to Mondi processing plants was from FSC certified sources and another 19 percent from other certified sources, an improvement of 8 percent against 2010. Their potential wood self-sufficiency (wood sourced from our FSC certified owned or leased forests) is 53.2 percent.

Furthermore, the company is aiming to get all of its mills certified to chain of custody standards by the end of 2013. This means it will have long term access to sustainable fiber and will allow its customers to be confident that the products they buy can be traced back to responsibly managed forests.

Mondi is integrated across the supply chain, from the responsible management of forests, through the production and marketing of packaging and paper products to the recycling of these products.

“Ensuring that we meet the requirements of responsible forestry practices, from the management of our own forests through to the procurement of our wood and fiber through the supply chain, is a fundamental business imperative.”

Mondi Sustainable Development Report, 2012

© Mondi plc

Responsible forestry as a fundamental business imperative

Case study: Mondi

References


2. WWF. About pulp & paper production and use [online] Available at: http://wwf.panda.org/what_we_do/footprint/forestry/sustainablepulppaper/aboutpulppaperproductionuse/, [accessed 23 January 2014].

3. Confederation of European Paper Industries, 2011. Key Statistics 2011. Brussels, CEPI. Available at: http://www.cepi.org/system/files/public/documents/publications/statistics/Key%20Statistics%202011%20FINAL.pdf, p. 3, [accessed 23 January 2014].

4. WWF. About pulp & paper production and use [online] Available at: http://wwf.panda.org/what_we_do/footprint/forestry/sustainablepulppaper/aboutpulppaperproductionuse/, [accessed 23 January 2014].

5. Confederation of European Paper Industries, 2012. Millenial Survey on Paper Use and Consumption: Summary of Study findings. Brussels, CEPI. Available at: http://www.cepi.org/system/files/public/documents/publications/recycling/2012/Millenial_Study_summary_final-20120213-00001-01-E.pdf, p. 2, [accessed 23 January 2014].

6. American Forest and Paper Association, 2013. Documenting the Value of Paper: Literature Review. Washington, AFAPA. Available at: http://www.afandpa.org/docs/default-source/default-document-library/documenting-the-value-of-paper-report.pdf?sfvrsn=0, [accessed 23 January 2014].

7. Marketline, 2012. Publishing: Global Industry Guide [online]. Available at: http://www.reportlinker.com/p0185031-summary/Publishing-Global-Industry-Guide.html, [accessed 23 January 2014].

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