The Global State of Forest Certification

1. The Global State of Forest Certification Ben Gunneberg, Secretary General, PEFC International

2. Sustainable Forest ManagementHow we define SFM

3. What is Forest Certification? • Market-based, voluntary tool to promote sustainable forest management • Components: • Standards (Sustainable Forest Management, Chain of Custody) • System of Verification (Certification, Accreditation) • Logos and Claims (Promotion) • Processes: • Local forest dialogue • Consensus driven • Multi-stakeholder • Inclusive

4. Forest CertificationTwo global systems Globally, two systems, PEFC and FSC, promote sustainable forest management through certification against requirements developed through their respective standard setting processes. • PEFC - Programme for the Endorsement of Forest Certification is a global alliance of independent national forest certification systems and considered “bottom-up”. • FSC - is an international membership organization with a network of FSC National Offices, FSC National Representatives and FSC National Focal Points and considered “top-down”.

5. Two Global SystemsDifferences & Similarities • History/Origin • Approaches • Requirements • Governance

6. Certified Forest Area, by System

7. Certification GloballyProgress so far • 28% of the world’s industrial roundwood supply is certified • 60% of the total area certified to PEFC • 10% of the world’s forests are certified 10% 28% 60%

8. Benefits of Forest CertificationDirect benefits • Codification of best practice in the forest sector • Implementation of sustainable forest management • Assurances of legality, sustainability and traceability • Market access & incentives/demand for certified products

9. What is PEFC?Programme for the Endorsement of Forest Certification • Global, not-for-profit, non-governmental organization • World's largest forest certification systemwith 60% of the certified forest area • Alliance of national certification systems which meet PEFC’s globally recognized Sustainability Benchmarks • Required or recommended by public and private procurement policies globally • The PEFC label is only available on certified products, giving responsible companies unique access to a trusted label

10. PEFC GloballyCurrent Expansion and Outlook

11. Benefits of Forest CertificationDirect benefits • Codification of best practice in the forest sector • Implementation of sustainable forest management • Assurances of legality, sustainability and traceability • Market access & incentives/demand for certified products

12. Market DemandBusinesses request certification: CGF Consumer Goods Forum • one of the largest global industry networks is pledging to achieve zero net deforestation by 2020. • to achieve this goal and to help promote sustainable forest management, the CGF recommends companies purchase products that are certified by e.g. PEFC.

13. Market DemandBusinesses request certification: WBCSD World Business Council for Sustainable Development • The WBCSD is a CEO-led organization made up of some of the world’s leading corporations. • “WBCSD members are committed to promote certification to forest owners, encouraging full utilization of existing forest certification systems, such as PEFC, throughout the forest products value chain.” James Griffiths, Managing Director, WBCSD

14. Market DemandSelected Procurement Policies and Guidelines • PEFC is recognized by the Belgian, British, Danish, Dutch, Finnish, French, German, Japanese, and Swiss TimberProcurement Policies; EC Guidelines on Green Public Procurement • EU Ecolabel, European Retail Environmental Sustainability Code • Green Building Councils (incl. Australia, Italy, Singapore), the Code for Sustainable Homes, BREEAM (Netherlands, UK) and SKA rating (UK)

15. Sustainability ClaimsConsumers want evidence on-product A 2013 survey by the Association for Consumer Research (GfK) found that • 80% of German citizens believe that companies making sustainability claims must be able to provide proof. Association for Consumer Research 2013 (treee.es/1dvUahs) A 2013 study by Cone Communications identified • on-package messages (on the package or label) as the most effective communication channel Cone Communications Social Impact Study (treee.es/1gcLXMo)

16. Environmental InformationConsumers trust labels Growing demand for environmental information on packaging: • 54% of consumers trust environmental labels • 37% of consumers regularly search for environmental logos on food packaging • Purchasing a environmentally-friendly packaged product is a key environmental action that consumers engage in Environmental Research 2013: A Global Study of the Attitudes of Consumers and Influencers (treee.es/env-trends)

17. Sources of InformationLabels most trusted source “Consumers […] look to certification seals or labels on product packaging (40%) as the most trusted source of information about whether a product is environmentally and socially responsible.” 2012 Regeneration Consumer Survey (treee.es/regen-study)

18. Consumer RecognitionDo you know the PEFC label? Germany: Growing Recognition Selected Country Surveys Source: * Mobium Group (2012) ** Firefly MilwardBrown (2013) *** ifop (2013) Source: GfK (2011-2013)

19. The PEFC Label

20. Benefits of Forest CertificationDirect benefits • Codification of best practice in the forest sector • Implementation of sustainable forest management • Assurances of legality, sustainability and traceability • Market access & incentives/demand for certified products

21. Chain of Custody (CoC)Sustainability & Traceability • establishes the link from the forest to the market, by assuring that wood and wood-based products can be traced back to PEFC-certified forests and non-controversial sources • certificates are issued by independent certification bodies, after an on-site audit of a company against the international PEFC Chain of Custody standard • is precondition for use of the PEFC labels to promote products in the marketplace • available globally • allows for “PEFC Certified” claim

22. CoC & Legality VerificationLegality & Regulatory Requirements (EUTR, Lacey Act) • PEFC Due Diligence System (DDS) certification (integral to PEFC CoC certification) • three elements: • Information (tree species & country/region/FMU of origin) • Risk Assessment • Risk Mitigation • can be used to demonstrate compliance with regulatory requirements such as the EU Timber Regulation (EUTR); Lacey Act • allows for “PEFC Controlled Sources” claim

23. Benefits of Forest CertificationDirect benefits • Codification of best practice in the forest sector • Implementation of sustainable forest management • Assurances of legality, sustainability and traceability • Market access & incentives/demand for certified products

24. Responsible Forest ManagementPEFC certification promotes sustainability Healthy Forests • Maintain and increase the health and vitality of forest ecosystems, biodiversity • Protect ecologically important forest areas, wildlife, waterways, and soil • Prohibit forest conversions; no certification of plantations established by conversions • Avoid genetically modified trees, most hazardous chemicals • Prevent unauthorized activities such as illegal logging Healthy Communities • Promote the long term health and well-being of forest communities • Respect forests’ multiple functions, give due regard to the role of forestry in rural development • Involve forest communities, forest-dependent people in forest management • Recognize indigenous people’s rights, incl. free, prior and informed consent • Protect sites with recognized specific historical, cultural or spiritual significance • Safeguardareas fundamental to meeting the basic needs of local communities Healthy Workers • Comply with all fundamental ILO conventions; safe working conditions • Consideration of new opportunities for employment

26. Group CertificationMaking certification accessible and affordable • Alternative approach to individual certification • Allowing multiple forest owners to become certified as a Group • Share the financial costs of obtaining certification • A Group Entity represents the individual forest owners, with the overall responsibility for ensuring conformity of forest management in the certified area with the PEFC requirements • Also available for PEFC Chain of Custody certification

27. In SummaryWhat forest certification delivers Forest Management Delivers sustainable wood raw material that is: • legal:wood is harvested in compliance with local legislation and international agreements • from well managed forests:are safeguarding environmental, social & economic values • traceable:the raw material supply chain is verified from the forest to the finished product Chain of Custody

28. Benefits of Forest CertificationDirect benefits • Codification of best practice in the forest sector • Implementation of sustainable forest management • Assurances of legality, sustainability and traceability • Market access & incentives/demand for certified products

29. PEFC’s Bottom-Up Approach Approval by members Revision required General Assembly Application for assessment

30. PEFC’s Bottom-Up Approach • Forest certification standards are country specific • adaptation of local forest conditions – ecological, tenure • adaptation to the local legislation • integration of needs and expectations of local stakeholders • consideration of development priorities • National ownership of YOUR certification scheme • Flexibility to meet PEFC requirements in a relevant way • Mutual recognition of your scheme regionally and internationally • Regular systematic revision of the standard and criteria at national level • reflect developments in forest practices, research • reflect values of society

31. Scheme Development Support • Ongoing technical support & guidance to approx. 20 countries developing national certification schemes

32. PEFC Projects

33. PEFC Initiatives 33

34. Benefits of Forest CertificationDirect benefits • Codification of best practice in the forest sector • Implementation of sustainable forest management • Assurances of legality, sustainability and traceability • Market access & incentives/demand for certified products

35. Benefits of Forest CertificationHidden benefits • Institutionalized best practices • Give value to forest resources • Quantifies SFM (Sustainable Forest Management) • Social benefits (incl. social justice, preservation of culture, social harmony) • Socioeconomic benefits (incl. rural/community development, NWFP – non-wood forest products) • Can be used for integrated landscape planning • Integration into other sustainability initiatives / commodity certification • Ongoing multi-stakeholder dialogues • Contributes to capacity building • Inclusion of all interested stakeholders

36. Forest Certification Dichotomy Forest certification Supply-side needs Demand-side requirements

37. Conclusion Forest certification contributes many elements to improving forest sustainability One of the most robust ‘eco-labels’ out there! Forest certification is not the panacea, but contributes to tackling a wide variety of issues & challenges Dialogue will be an essential component to bridging supply side realities with market requirements Principled Pragmatism is the name of the game

38. Thank You!