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FSC-certified forest in Lakeview, Oregon Courtesy of Collins Pine Company. Ian Hanna ian@nnrg.org 360-379-9421 x2. FSC Western Hardwood Markets An Update on Supply, COC Options, & Drivers June 20, 2009. Major themes. The FSC market has changed
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FSC-certified forest in Lakeview, Oregon Courtesy of Collins Pine Company Ian Hanna ian@nnrg.org 360-379-9421 x2 FSC Western Hardwood Markets An Update on Supply, COC Options, & Drivers June 20, 2009
Major themes The FSC market has changed Fundamental business forces are driving FSC growth FSC is supply limited in the West
FSC Certification • Market-based, non-regulatory forest conservation tool • World’s most comprehensive forest management standards • Buyers create positive change through their purchasing • Third-party verification of forest management practices, chain-of-custody, and product labeling Forest Management Chain of Custody certification Product Labeling
Global foundation, global impact 3 chamber membership Environmental, Social, Economic Global North & South 280.3 million acres certified 13,469 chain-of-custody certificates in 82 countries
What sets FSC apart: open, diverse membership and balanced, consensus-based standards and governance
Supply Chain Growth Chain of Custody Certificates – US Building & Furniture vs. Paper & printing * 2,721 total FSC chain-of-custody certificates in U.S. which is currently 6 times the # of certificates of the nearest system (SFI) CA – 450; OR – 150; WA - 111
Certified Forest Growth Chain of Custody Certificates - US * 2,721 total FSC chain-of-custody certificates in U.S. which is nearly 6 times the # of certificates of the nearest system (SFI)
FSC-certified forestland in the US WA: 332,841 ME: 3,365,701 VT: 197,651 OR:987,501 MN: 6,096,827 NY: 1,056,501 NH: 186,297 WI: 4,977,304 MA: 623,652 CT: 7,840 ID: 669,370 MI: 4,570,027 PA: 2,280,967 NJ: 241,523 IN: 150,000 MD: 81,511 MO: 159,583 CA: 984,035 TN 193,423 NC: 1,896,140 AR: 478,819 MS: 345,854 SC: 6,425 HI: 34,600 LA: 582,530 Total of 30.6 million acres as of June 2009
How FSC works • Set standards (IC) • Forest management • Chain-of-custody • Accredit certifying bodies (ASI) • Authorize product labelling (GD)
FSC-certified product origins • FSC-certified wood and pulp can originate from: • FSC certified forests (FM) • Post consumer recycled content • Combination of FSC-certified wood fiber, recycled content and other ‘controlled’ sources (5 key screens).
The Label The FSC check tree logo identifies FSC-certified products This FSC product group contains 100% FSC certified materials These FSC Product groups contains a mixture of FSC certified material and other controlled sources This FSC product group contains 100% post-consumer reclaimed material
Certification Roles • FSC • Certifiers • Group Manager (group rules changing) • Forest or Supplier (FM or COC)
COC Certifiers • SCS • SmartWood • SGS • Bureau Veritas • GFA/American Green Business • Sustainable Northwest (group only)
Claim Options • Transfer system • Easiest administratively • Percentage system • 70% minimum on solid products • 50% on chip and fiber through 2009 • Credit system • No minimum threshold • Based on conversion factors
US marketplace trends • Fortune 500 via brand value (McD)/risk reduction (IKEA) • Critical mass of FSC-labeled products (5%?) • Virgin and recycled paper • ENGO engagement in consumer marketing • National branding and tools • Group certification a la NNRG • Stepwise approaches a la NWFA • Lacey Act amendment • USGBC/LEED MRc7 benchmark • FSC Northwest – Supply analysis/market development
US Market Leaders • BUILDING • LEED, BuiltGreen, Earth Advantage, Build It Green • Home Depot, Lowe’s, regional suppliers • NWFA RPP • Columbia, Collins, Potlatch, US States • PAPER • Williams Sonoma, REI, Limited Brands • Staples, Kinkos, Scholastic, HSBC • Domtar, Mohawk, Grays Harbor, NewLeaf • PACKAGING • Tetra Pak, Curtis, others • FURNITURE • Crate & Barrel, Walmart, Pier One • OTHER • Guitars: Gibson, Martin, Taylor, Fender
FSC is a business strategy Invest in strategy and at least one staff person Get them involved in networks* Think in terms of differentiation – you are marketing a new product Offer regular product lines Position for new product flows (OESF/PC, NCF/Pref Pros, ODF?) Incentives have to flow to forest managers
Resources www.fscus.org www.fsc.org www.fsc-info.org www.nnrg.org ian@nnrg.org 360-379-9421 x 2