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Addressing

Deforestation:
joining forces to
stimulate
demand for
sustainable
forest products
5th PEFC Stakeholder Dialogue
Paris
November 20th, 2015
William Street
Chair
PEFC International
www.pefc.org

PEFC would like to thank the sponsors of


PEFC Forest Certification Week:
Mets Group

PEFC Portugal/CFFP

and our hosts, PEFC France

Suzano Pulp and Paper

Safety briefingAND CELL PHONES


If for any reason we need to evacuate, please leave the
room by the marked exit doors.
Our assemble point is outside the front of the hotel.
Please stay calm and follow the guidance of the PEFC
staff.

AND PLEASE TURN YOUR


CELL PHONE OFF!!!
3

Our Agenda today has a consumer &


supply-chain focus for forest products and
forest certification services
Consumer goods & deforestation
Latest research from Forest Trends & UK
Government on commodity & market drivers
Consumer perceptions & behaviour
3 experts looking at the latest evidence base
Engaging consumers on sustainability
6 cases from different actors on understanding
needs & changing behaviour
Emerging initiatives & alliances
4 knowledge blasts on new innovations
Designing forest product supply-chains fully supported
by certification solutions - to inform PEFC strategy
9 breakout groups getting your insights on
scale-up challenges & opportunities
4

Materials & Process


In your information folder
Participants workbook program, speakers,
notes and the two breakout exercises
Key audience questions
4 throughout the day
Vote by standing-up for the answer that you
agree with
Breakout groups (14:45-16:15)
9 groups each with a PEFC staff facilitator
You will getting a PEFC number card as you
leave for lunch
KEEP IT or REMEMBER the # so you know
where to go and who your facilitator is
5

Special guest

M. Jean-Yves CAULLET
Chairman of Office National des Forts (ONF)
Deput de lAssemble Nationale

Audience survey question 1


Please respond to this statement:
Forest certification is currently being effectively
used to support sustainable supply chains &
brands, promote a sustainable forest industry and
combat deforestation.
Answer options are: When asked, stand-up for the
answer you agreement with:
1. Yes, I think it is
2. I have mix views on its use & leverage
3. No, it is definitely not

Session 1
Consumer Goods &
Deforestation: An
Anaylsis of the
Extent & Nature of
Illegality in Forest
Conversion for
Agriculture &
Timber Plantations
Key Note:
Kerstin Canby
Director Forest Trade &
Finance
Forest Trends
www.pefc.org

Consumer Goods and Deforestation


Analysis of Extent and Nature of Illegality in Forest
Conversion for Agriculture and Timber Plantations
5th PEFC Stakeholder Meeting

20 November 2014

Kerstin Canby
Forest Trade & Finance
Forest Trends

Outline

Consumer Goods and Deforestation Report

Summary of report findings


Methodology
Conversion Timber
Agricultural Commodities

Update on China and Greater Mekong region

Results: Summary

* Midpoint estimates used in sensitivity analyses *


11/20/2014

Illegality in major countries

11/20/2014

Scope of Impact
Deforestation: 21m ha of tropical forests illegally cleared
2000-2012 in order to supply agro-commodities for export
Climate change: Emissions from illegal deforestataion
from commercial agriculture average 1.47 gigatonnes CO2
per year equivalent to EUs annual fossil fuel-based
emissions
Trade: Value of agro-commodities produced on land
illegally converted from tropical forests estimated at $61
billion / year. Largest buyers: EU, China, India, Russia, US
11/20/2014

Results: Sensitivity analysis

11/20/2014

Results: Commodity exports

11/20/2014

Definition of Legality / Illegality


Legality determined by laws & regulations of producer
countries, at the time of deforestation
Illegalities of past 20-30 years only, directly or
indirectly caused by commercial agriculture
Does not include international commitments (ILO
169, UNDRIP, etc)
Does not include customary rights unrecognized by
statutory law

11/20/2014

Definition of Legality / Illegality


Only focuses on violations with large impact
Issuing of licenses / permit
Corruption / bribery
Example PNG: Parliamentary Inquiry found 90% Special
Agriculture and Business Leases (SABLs) obtained
through corrupt/fraudulent means

Clearance
No permit, permit non-compliance, in advance of permit
Clearance in prohibited zones
Failure to compensate affected communities
11/20/2014

Conversion Timber

Tropical timber in global markets being sourced from


land clearance projects

13% low

31% medium

49% high scenario

Role of conversion timber in the profitability of


agricultural development projects

Are the legality issues different from conventional


forest concessions?

More emphasis on early processes of land acquisition,


auctions, permitting, degazetting of forest estate
11/20/2014

Conversion Timber

Mechanisms designed to address illegal logging


were designed in the 1990s and early 2000s before
agricultural land boom

Certification standards and legality verification schemes


VPAs now focussing on this, or are being reviewed

Engagement of agricultural ministries or land


management

11/20/2014

Agricultural Commodities

Calls to replicate FLEGT mechanisms for illegal


agricultural commodities

Impatience with voluntary approaches (RoundTables, RSPO,


voluntary Zero Deforestation commitments

Very different dynamics politically

EUTR, Lacey, VPA processes

Fewer number actors, major multi-nationals who are producers /


traders / processors, more money, more political

Private sector interest in asking governments to get their legal


house in order > basic improvements in investment climate
11/20/2014

Agricultural Commodities

Will the land be forever illegal?

Informal processes for conflict resolution


Blanket amnesty
Fines
Offsets

11/20/2014

Outline

Update on China and Greater Mekong region

China: timber product imports by volume


and product type
100

m3 RWE Millions

80

60

40

20

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Logs

Sawnwood

Wood chips

Veneer sheet

Charcoal

Particleboard

Wood furniture

Fiberboard

Plywood

Other

China: timber product exports by volume


and product type
60.0

m3 RWE

Millions

50.0

40.0

30.0

20.0

10.0

0.0

2000

Plywood

2001

2002

Furniture

2003

2004

Fiberboard

2005

2006

Flooring

2007

Other

2008

2009

Joinery

2010

2011

Lumber

2012

2013

Veneer Sheet

11/20/2014

China: Rosewood Imports


800

other

Volume 1000 m3

700

DRC

600

Mozambique

500

Lao PDR
Myanmar

400

Nicaragua

300

Ghana

200

Togo

100

Benin

Gambia
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Vietnam

China: Rosewood Furniture Exports


450'000

Quantity

400'000
350'000

other

300'000

France
Macau

250'000

United States

200'000

Hong Kong

150'000

Taiwan

100'000

Singapore

50'000
0

Japan
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

China: Timber product imports by volume


and source country
120

m3 RWE Millions

100

80

60

40

20

0
2000

2001

Russia
Vietnam
European Union
Indonesia

2002

2003

2004

2005

2006

Canada
United States
Australia
Papua New Guinea

2007

2008

2009

2010

New Zealand
Thailand
Africa
Other

2011

2012

2013

China: Hardwood log imports


14

Middle East/Central Asia


Other Oceania

12

Latin America/Caribbean

Millions

10

m3

Other Asia

North America
Europe
Other Africa
Malaysia

Equatorial Guinea
Cameroon

Congo
Myanmar

Russia
Solomon Islands

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Papua New Guinea

EU-27 timber imports by region and


exposure to 3rd party verification (2011)

Includes all products in CN44 (wood) and wood products in CN94 (furniture).
Based on FII Ltd/European TTF analysis of Eurostat and data derived from certification/legality system websites and Keurhout

Legality of China Wood Supply

Illegal harvest not problem


in domestic supply main
issue is rights of local
people

Bigger question: how to


handle imports from high
risk countries?

Legality of China Wood Supply

Illegal harvest not problem


in domestic supply main
issue is rights of local
people

Bigger question: how to


handle imports from high
risk countries?

Legality of China Wood Supply

International laws (EUTR, US Lacey) are obliging


traders to question government documents in countries
that are unable or unwilling to enforce their own laws

This is not in the draft China State Forest


Administration Timber Legality Verification System

Chinese Forest Management System has just been


endorsement by PEFC this year

Challenge uptake of FMSystem linked to chain-ofcustody and leading to on-label logo use

Vietnam the next China

Ministry of Industry
and Trade,
November 2014:
temporary ban on
import of logs and
sawntimber from
Laos and Cambodia
starting Dec 8, 2014

Thank you
Kerstin Canby
kcanby@forest-trends.org
www.forest-trends.org

Session 2 Understanding
Consumers
Behavior, Perception
& Expectations for
Sustainable Products
Looking at the
Evidence Base
Session chair :
Julian Walker-Palin
PEFC International Board

www.pefc.org

Panel 2: The latest on consumer behaviour


research and baseline surveys, including
forest products
Laura Babbs, Sustainability
Manager, ASDA UK

UK retailer perspective based on


regular customer surveys

Elizabeth Pastore-Reiss,
President, EthiCity & Greenflex

France & Western European


perspective

Donna Harman, President,


American Forest & Paper
Association

North American perspective

Q & A + Panel discussion

10

Asda sustainability research


our customer insight
Laura Babbs

Contents
Little introduction to Asda
Our vision
Customer panel
Customers and sustainability
Customers and products
Customers and timber

About Asda
Weve got history
Founded in 1960s in Leeds, where were still head
quartered
Weve got scale
Over 180,000 Asda colleagues
Over 560 stores
Weve got reach
Over 18 million shoppers served per week in store
Over 98% of UK homes served through our home
shopping business

Our sustainability vision

We believe sustainable
living is for everyone, no
matter who they are and
what their income.

Our business is committed to delivering


great value at everyday low prices. For
us, sustainability is part of that value.
Weve worked hard for many
years to reduce our environmental
impacts and, as a result, our costs.
Were listening to what our customers
care about and they want us to help
them lead greener lives.

Asda customer panel


20,000 customer panel, with average response rates of
between 6-9,000 responses

37%

63%

10%

2%
82%
6%

68% primary, 32%


secondary shopper

Customer know their minds

I set the sustainability


agenda

Green is normal

The green choice


shouldnt cost more

I shop green

I expect to be greener
in the future

Products, products, products


Green effects buying decisions in some
areas but not others
Local sourcing is the most important
issue for customers
Confusion around sustainability
terminology
Customers are the least interested in
sustainability issues related to clothing,
home, garden & DIY

Timber
91% of customers agree that wood and paper based
products should be sourced from sustainably
managed forests

90% of customers think that packaging


should be sourced from sustainably
managed forests

59% of customers think products sourced from


sustainably managed forests should have an
independent product label

A word of caution

What does this mean for you?

This is not a fad or trend


our customers expect to
be greener in the future

Messaging needs to be clear


and consistent there is
already confusion around
terminology

The vast majority


of people care
about sustainability

Need to be cautious around


what customers say and what
they buy

Timber sustainability is important to


customers however, this ranks below
other retail sustainability issues

Consumer perceptions
and behaviors for
sustainable products
Le 24 juin 2014

N o v e m b e r 2 0 th, 2 0 1 4

MAIN EUROPEAN TRENDS

MAIN EUROPEAN TRENDS


Avoid environmentally
unfriendly products

Buy environmentally
friendly products

(Often + All the time)

(Often + All the time)

37%

40%

38%

34%

27%

46%

25%

36%

The extra cost of environmentally

18%

22%

friendly products is not worth it for me

27%

28%

(Often + All the time)

BUYERS OF WOOD-DERIVED PRODUCT


(FRANCE)
CONSOMMATION RESPONSABLE

ENTREPRISES

Garantee

Garantee

Garantee

Garantee

Reconciliation

Garantee

Reconciliation

Thank you

Elizabeth Pastore-Reiss

Understanding Consumers Behavior, Perception


& Expectations for Sustainable Products:
North American Perspective
Donna Harman
AF&PA President and CEO

AF&PA Overview
Advances sustainable pulp, paper,
packaging and wood products industry
4% of U.S. manufacturing GDP
210 billion USD in products/year
Top 10 manufacturing employer in 47
states

Our Products

Sustainability

Millennial Research Findings


Packaging is fundamental
Convenience is key
Paper-based packaging is:
Considered the most environmentallyfriendly packaging option
Expected to become more prominent

Conservation minded
Emotional value of paper

Atmospherics
Negative Pressures
Misconceptions of
how paper is made

Value imbalance of
paper vs. trees

Functionality
preference for digital
media

Belief that using paper is


wasteful

Acceptance and Use of Paper

Strong
preference for
paper products
over plastic

Nostalgia and
emotional
connection

The renewability
and recyclability of
paper is consistent
across grades

Strengths and Assets

Some belief
that paper and
technology can
coexist

Effective
messages that
correct faulty
environmental
perceptions

Top Messages

Consumer Choice Impact Research

Moving the Needle


Messages showed improvements in views of the value of paper,
and people more inclined to use/choose paper products

Heightened
preference for
paper

Understand
renewable and
recyclable
nature of paper

Purchaser
Chooses
Paper

Improved
perception of
companies
using paper

New Public Awareness Program

Wood Products Promotion Program

Choosing Wood Products


Recognition of positive life-cycle attributes
Outreach to architects and specifiers change
attitudes
Canadian research on mental health
attributes from wood buildings
New product potential from wood-based
nonmaterial
Bio-based products of all types -- energy,
chemicals, etc.

Donna Harman
AF&PA President and CEO
Visit us online at:
afandpa.org
Follow us on Twitter:
@DonnaHarmanAFPA
@ForestandPaper

Audience survey question 2


Please answer this question:
Is the evidence on consumer preferences for
sustainable products compelling enough to
mainstream and accelerate demand for certified
forest products?

11

Answer options are: When asked, stand-up for the


answer you agreement with:
1. I am convinced, scaling up certification is a
key opportunity for our sector
2. Not yet, certification is still only a niche
opportunity in a few sensitive markets
3. Evidence remains weak, the certification
business case still needs to be built and
communicated

Session 3
Successful
Approaches for
Engaging
Consumers on
Sustainability
Learning from
Innovative
Solutions
Session chair :
Julian Walker-Palin
PEFC International Board

www.pefc.org

Panel 3: Highlighting experiences in understanding


& influencing consumer perceptions & building
awareness on sustainability, including forest products
Julia Young, Manager, Global Forest & NGO perspective on transforming
markets and consumer actions
Trade Network, WWF UK
Claire Tutenuit, Enterprises pour
lEnvironnement

French business NGO perspective on


stimulating and responding to
consumer demand

Jorge Cajazeira, Director Institutional


Affairs, Suzano Pulp & paper

Global pulp & paper company


perspective

Irina Coup, Dveloppement Durable,


Maisons du Monde

Retailer perspective

Duncan Brack, Associate Senior


Fellow, Chatham House

Governments as customers and the


role of public procurement

Michael Buckley, Managing Director,


Turnstone Singapore

B2B wood promotion and


communications in Asia

Q & A + Panel discussion

13

Safeguarding the natural world

ENGAGING
CONSUMERS ON
SUSTAINABILITY

Julia Young
Manager GFTN-UK
WWF-UK
20th November 2014

Panda facts

+100

+5,000

WWF is in over
100 countries, on
5 continents

WWF has over


5,000 staff worldwide

1961

+5M

WWF was founded


In 1961

WWF has over


5 million supporters

24 November 2014

Reduce our impact


Added together, the demands made by each and every one of us
humanity's Ecological Footprint are far too much for our planet.
50% too much, in fact

TRANSPARENCY
AWARENESS
DIFFERENTIATION

404 Million Hectares of forest globally


certified under FSC and PEFC combined
Pressure to improve forest management
practices where these have caused forest
loss, and to undertake restoration
Slow but increasing customer awareness
Communicate to people in so they can make
the right choices
Understand whether you are supporting
sustainability with what you invest in
24 November 2014

PEFC in the future


Engaging consumers on sustainability is a global story
To be recognized as a credible scheme for sustainable forest management
across the board, an action plan is required to establish balanced social,
environmental and economic governance, nationally and
internationally
PEFC can also contribute to a sustainable future for forests through
accreditation requirements for Forest Management Certification
Set the highest standards for transparency, as this drives improvements
in forest management and engagement of stakeholders by being stricter
and more transparent in making information on surveillance audits,
audit reports, and resolution of complaints public in a timely way
As PEFC grows in areas where forest governance, and the capacity of civil
society to engage, are still relatively weak, it must act to safeguard
resources fundamental for satisfying the basic necessities of local
communities or indigenous peoples, through engagement with them
24 November 2014

Empower people with credibility

PEFC Stakeholders Dialogue


20 November 2014

APC

24/11/2014

EpE, French partner of the WBCSD


Some forty French and international companies
A shared vision and commitment :
better integrate environment into strategies and management
Our mission: exchange of good practices, dialogues, methods

14-129-APC

24/11/2014

Consumer engagement activities


An ECO Enterprises-Consumers-ONG dialogue
In the hierarchy of consumers priorities, environment /
climate change is last; health, money and social status are
on top; benefit for customer comes in the middle

An experience on mobility: Autolib


Difficult anticipation of behavioral waves such as the
one on-going in mobility

Labelling: buildings, recycled materials,


Beware any confusion!

Few members sell forest products


Sequana on paper
Saint-Gobain on wood products for buildings: certification
means access to certain markets
3

14-129-APC

24/11/2014

Key success factors ?

Simplicity
Transparency

TRUST

Integrity
Cost of products

14-129-APC

24/11/2014

Possible take-out for PEFC


Work on reputation on the three counts
Simplicity on objectives: more wood / more
biodiversity / more carbon capture ?
Transparency: clarify management
principles, certification procedures, third
party role, pedagogy to visiting public
Integrity: produce more examples of well
managed forests, control estovers,
5

14-129-APC

24/11/2014

Connecting Forests with Consumers


Building Credible Reputation through Sustainability and
Certification Programs

USO PBLICO

Ph.D. Jorge E. Reis Cajazeira


Institutional Director
PEFC 2014 General Assembly

COMPANY OVERVIEW

Suzano produces pulp from 100% renewable


planted eucalyptus forests.
Our operations are present in 7 countries. We
export to more than 60 countries worldwide
High quality certified products are delivered due
to excellence in forest and industrial
management.
This is all made possible through an proactive
dialogue with our stakeholders (NGOs,
syndicates, government and community leaders).

Suzano Operations Worldwide

*figures of last 12 months ending on 6/30/2012

Inequality

Global

ISO
Greenpeace

WBCSD/ FSG

The Forest
Dialogue

WWF

Clients
FSC (Board of

Directors)

National

TNC
CI
FSC
PEFC/CER
FLOR

Local/State
Forest
Forums

Brazilian Forest
Dialogue
Research Institutes
Greenpeace
WWF Brazil
Forest Associations
Communi
ties

NGOs

Government
Boddies

PEFC

Suzano
Dialogu
e

SUSTAINABILITY IS IN OUR BLOOD


Operational and protected areas

40% of Suzanos territory is designated for preservation, within


this area there are three different types of biomes: Amazon, Atlantic
Rainforest, Cerrado (brazilian savannah).
MA, PI e TO
Total: 445.000 ha

Area
(hectares)

Preservation Area
(hectares)

Tocantins

15.000

8.000

Piau

33.000

18.000

Minas Gerais

36.000

16.000

Espirito Santo

56.000

18.000

Bahia

173.000

63.000

So Paulo

187.000

62.000

Maranho

397.000

173.000

Total

897.000

358.000

State (Brazil
only)

BA, ES e MG
Total: 265.000 ha

SP
Total: 187.000 ha

Ref. Sep2014

SUSTAINABILITY
Corporative Level

Intelligence

US$ 6.400.000
(Social investment
indicator for 2013)

Sustainability performance indicators

Monitoring of social/environmental commitments


from financial support agreements
(BNDES, ECAs)

ABTCP 2014 Social


Responsibility award
For the creation of
communitarian councils

Participation in Sustainability Forums and Awards


(FGV, WBSCD, FSC, WWF, IB)

Suzanos emissions inventory

Climate Change

Carbon management

GHG Emissions Inventory

Carbon Footprint (Bahia and Maranho in 2014)

New technology impacts analysis

927'483

tCOe

932'884

826'496

2011

2012

2013

A very rare cougar couple spotted in


Suzanos protected area in Maranho

SUSTAINABILITY

Where we Act & Some Numbers

Where do we Act

Environmental permits

Legislation/certification attendance (ex: new forest

1.442 species identified (mammals and


birds)

code, waste management law)

Forests operations technical support


Environmental program management
(water, flora, fauna, soil, archeology)

14 main rivers
where water
monitoring is
carried out

Environmental education
Participation in Conservation Units Councils

Participation in forums and conservation units councils

High Conservation Value Forests management

OUR COMMITMENT TO SUSTAINABILITY TRANSLATES


INTO:
100% OF OUR PRODUCTIVE FORESTS ARE DOUBLE
CERTIFIED
LARGEST SET OF CERTIFIED MILLS AND DISTRIBUTORS
IN LATIN AMERICA (29 SITES IN TOTAL)
100% OF OUR PRODUCTS ARE FSC CERTIFIED

This is not Enough


To demonstrate our commitment to sustainability
and our respect to the consumers right to
choose, we are announcing this:

Suzano will certify all its Distributing


Centers and Mills under CERFLOR/PEFC
COC by December 2015

Regarding ISO ...


An opportunity to PEFC
ISO will focus on non-certified forest products
Legal
DDS compliance for non-certified/controlled
materials
Community Wood
Non-traditional products (cork, bambu etc.)
ISO will help to ensure traceability where
PEFC still is not possible/present (i.e. Africa)

THANK YOU

PEFC
November 20th, 2014
Irina Coup EUTR manager

Who we are
240 shops : France, Spain,
Italy, Belgium, Luxembourg,
Germany and Switzerland
20 new shops per year
A website :
www.maisonsdumonde.com
3 catalogues : Indoor ,
Outdoor and Junior
5000 furniture items
A strong CSR policy

How we depend on forests

Teak
Mahogany
Sheesham
Mango
Acacia
Oak
Walnut
Elm
etc

What we can do
Which label and what for?

Charity to have a better conscious?

Can we trust Asian companies?

What do my client think?

How to be proactive

More responsible products


602 items PEFC
380 items FSC
23 items TFT
200 items QR
133 items with
recycled wood
54,2%
of our wooden furniture
are certified or traced

Supplier MDM

1) Map
2) Audit
3) Certify

4) Communicate

DSC_3490-2

www.maisonsdumonde.com
www.developpementdurable.maisonsdumonde.com

Promoting legal and sustainable timber:


The role of public procurement policy

Duncan Brack (Associate Fellow, Chatham House)

PEFC Stakeholder Dialogue, Paris, 20 November 2014

Public procurement policy: general


Use of governments purchasing power in market to
achieve outcomes examples as far back as nineteenth
century
Public procurement accounts for average 12% GDP
Though split central / regional / local

Chatham House | The Royal Institute of International Affairs

Public procurement policy: timber


Public sector major purchaser of timber products:
Paper and packaging
Furniture (office, street, park)
Timber for construction and maintenance (social housing,
schools, hospitals )

Product-specific data generally lacking, but is clear


significant impact in some sectors, e.g.:
UK office furniture, 3050% purchased by public sector
Harbour and flood defences

Also can have knock-on effects (2040%?)

Chatham House | The Royal Institute of International Affairs

Timber procurement policies


Public procurement policy used for timber since 1970s
FLEGT Action Plan stimulated development
Voluntary EU Green Procurement Policy process
Common criteria, now 20 product groups

2008: 9 countries
2014: more than 25 countries (19 in EU)
Many examples of regional and local governments,
major public projects (e.g. London Olympics)

Chatham House | The Royal Institute of International Affairs

Objectives and criteria


Mostly aiming to purchase legal and sustainable timber
Some countries develop own criteria for legal and
sustainable
Some use certification scheme criteria
In either case, criteria generally satisfied through
certification schemes, so market impact may be similar
Though also note impact on certification schemes

Some use wider range of evidence

Chatham House | The Royal Institute of International Affairs

National timber procurement policies


Comprehensive criteria-based:
Belgium, Denmark, Luxembourg, Netherlands, UK

Simpler scheme/document-based:
Australia, Austria, China, Finland, France, Germany, Italy,
Japan, Latvia, Lithuania, Mexico, New Zealand, Norway,
Spain, Sweden, Switzerland

EU GPP-based:
Bulgaria, Cyprus, Czech Republic, Malta, Slovenia

Italics: voluntary policy


Not all policies cover all product categories

Chatham House | The Royal Institute of International Affairs

Impacts
Impact on penetration of certified timber products
UK:
2008 study: certified products 80% of market (domestic and
imported) up from 55% in 2005
2010 study: identified TPP as one of drivers

Netherlands:
Timber: 13% (2005) 34% (2008) 68% (2011)
Paper: 33% (2011)

2011 ETTF survey: public sector and commercial big


buyers main drivers for demand for certified products

Chatham House | The Royal Institute of International Affairs

Conclusions
Timber procurement policies are useful tools in helping
to steer the market
Can be developed and introduced relatively quickly
Send signal to market, reinforce other actors

Promotion, communication, support for buyers necessary


(e.g. CPET in UK)
Appear to have impact in terms of increasing market
share of certified (FSC and PEFC) products
Comprehensive criteria-based policies have advantages
Positive impact on schemes themselves
More difficult to draw up, but plenty of models

Useful lessons from timber for procurement policy for


other products (e.g. palm oil)
Chatham House | The Royal Institute of International Affairs

Thank you

Chatham House | The Royal Institute of International Affairs

B2B Wood Promotion and


Communications in Asia
Michael Buckley MPhil, FIWSc
Paris, November 2014
TURNSTONE
Communications
PROMOTING WOOD

Turnstone Communications Pte Ltd,


Singapore
Promoting Wood
Private consultancy - working exclusively in the forest
products and wood industry sector on behalf of
governments, associations, companies and clients,
mainly in Asia.
Personnel and associates have specific experience in
the forest products sector and wood industries, as well
as in publishing and market sectors.
TURNSTONE
Communications
PROMOTING WOOD

Turnstones Motivation
Belief in Clients
Examples:
Genuine sustainability of American hardwoods
(AHEC)
Need for uniform grading system to maximise forest
yield (NHLA)
Necessity to communicate issues (GTF)
Benefits of national forest certification (PEFC)
Efforts in forestry responsibility (MTC/MTCC)
TURNSTONE
Communications
PROMOTING WOOD

Turnstone Strategy & Tactics


Working inside media, providing the most reliable data and
information, offering high quality, authoritative copy and
directly connecting media with clients. Networking within
the forestry and manufacturing sector and participation
within industry events
Objectives include:
Raising Profile with PR and Brand Building
Identifying Opportunities for Promotion
Alerting Media to Industry Issues
Educating Journalists as the Route to Consumers
TURNSTONE
Communications
PROMOTING WOOD

The Asian Market for Wood

Production from local natural forests is decreasing,


due to restrictions and poor husbandry in the past
Production from new plantations is producing
fiber, but not much quality solid wood
Consumption of wood products is growing as
populations and standard of living increase
Environmental awareness and concern is slow

TURNSTONE
Communications
PROMOTING WOOD

What consumers care about in Asia


depends on where they are and who
they are

The wealthy in Indonesia are very different from


the rich Chinese, but money is key for most Asians
at all levels of society
So price comes before the environment
But, Asians are becoming more savvy and are
slowly learning about environmental issues
Education is of vital importance to Asian
communities and teachers and media are often illinformed about forests
TURNSTONE
Communications
PROMOTING WOOD

What is driving wood & paper


products consumption in Asia?
Economic growth is dynamic
Consumption of all materials is rising
Growth of a new middle class and
improving standards of living are the
main drivers, which is turning many
Asian producers from exporting towards
local distribution, especially since 2008

6 out of 11 of the worlds fastest growing middle classes are


in Asia. But the big one affecting wood supply and demand
TURNSTONE
Communications
PROMOTING WOOD

Middle Class in Developing Countries Could Reach 616 Million


Households By 2020, Up 138% From 2009 Levels
25% of households in these countries are middle class. By 2020, this could
increase to 49% and the impact on food consumption will be large Developing
countries with fastest growing middle class

China
India
12
Brazil
9
Indonesia
Russia
7
Egypt
6
Thailand
5
Mexico
4
Turkey
3
Vietnam
Philippines 3
2
Iran
2
Poland
Nigeria 1

25

234
60

2009 levels

50

75

Proj gains by 2020

100 125 150 175 200 225 250 275 300 325 350

Households with real PPP incomes greater than $20,000 (in millions)
Source: Global Insights Global Consumer Markets data as analyzed by OGA

According to the Shanghai Timber Trade


Association's market report, China's softwood
timber imports have experienced an increase of
141.1% in the last five years.
While China's domestically-produced timber only increased by 2.3%
in 2013, the amount of imported timber grew 18%.
Within one year (2012 - 2013) North America's softwood timber
import to China increased by 50%!

TURNSTONE
Communications
PROMOTING WOOD

What impact has so far been


achieved in Asia?

Widespread coverage in B2B media


Many editors and journalists now know about
PEFC
Participation by PEFC in industry shows
Presentations at conferences and seminars
PEFC included in forest certification debates

PEFC even made front covers.


TURNSTONE
Communications
PROMOTING WOOD

2013 Nov

2014 Oct

11

Architecture

Construction

12

B2B PR

13

Given that PEFC is the worlds largest certification system, it is a strong


option for Asia, so some recommendations are:
Continue to inform a wide range of forest industry players - from forest
resource management to manufacturing industries - as to the market
opportunities and choices that PEFC endorsed materials can offer
Inform and lobby governments about the national and international
benefits of national certification endorsed by PEFC
Explain to professionals why PEFC is both similar and different to FSC
Communicate to trade & industry in Asian countries yet without a
national scheme, how they can use and benefit from PEFC CoC

TURNSTONE
Communications
PROMOTING WOOD

Further information about Turnstone:


www.turnstonesingapore.com

Thank you!

TURNSTONE
Communications
PROMOTING WOOD

Audience survey question 3


Please respond to this statement:
Consumers can be effectively engaged on
sustainability and, more importantly, tools like
certification can help change perceptions & buying
behavior.
Answer options are: When asked, stand-up for the
answer you agreement with:
1. Yes and these cases prove it
2. I am not convinced yet this happens in some
specific products and markets only
3. No because consumers dont care about
their impacts enough to change what they buy.
14

Session 4: Emerging
Initiatives & Alliances
Addressing
Deforestation through
Promoting
Sustainable
Production,
Consumption & Trade
Session chair :
James Griffiths
PEFC International

www.pefc.org

Panel 4: Knowledge blasts on impactful


solutions for sustainable supply chains
getting ready for breakout groups sessions!
Kathy Abusow, CEO, Sustainable
Forestry Initiative
Hans Stout, Program Director,
IDH
Sabine Ritter, Executive Vice
President Sustainability, The
Consumer Goods Forum (CGF)

Fiber sourcing from non-certified


forests
Sustainable Trade Initiative on
Pulp & Paper for the Indonesian
forest sector
CGFs Zero Net Deforestation
Commitment, Activation Toolkit &
Tropical Forest Alliance 2020

Gary Dunning, Executive Director, Sustainable landscape and


The Forests Dialogue
supply chains for food, feed, fiber
& fuel
Key points summary

16

Session 5:
Discussion
Groups Identifying
Opportunities for
Action &
Collaboration to
Scale-up Forest
Certification
Session chair :
James Griffiths
PEFC International

www.pefc.org

9 breakout groups to discuss & design forest


certification solutions for sustainable supply
chains

18

14:30 14:45

James Griffiths, PEFC


International

Introduce discussion group session and


tasks

14:45 15:15

Thorsten Arndt, PEFC


International
Discussion Groups Exercise One

15:15 16:15

Discussion Groups Exercise Two

Latest consumer insights on forest


certification
Forest certification is transforming from a
choice influencing to a choice editing
solution
Develop a practical & scalable supply chain
model or example that fully uses forest
certification

16:15 16:30

Break for relocations/


comfort stop

Re-assemble in plenary room

16:30 17:15
17:15 17:30

James Griffiths, PEFC


International
Ben Gunneberg, PEFC
Secretary General & CEO

Report back sessions & discussion


Final reflections & wrap up
Final audience survey question

Global Consumer
Survey
Thorsten Arndt
Head of Communication
PEFC International

www.pefc.org

Survey design

20

Client:

PEFC International, Genve.

Subject:

PEFC Label.

Method:

GfK GLOBO BUS - ONLINE.

Sample:

1,000 men and women aged 16+ years in each


country: Australia, Austria, Brazil, China, Finland,
France, Germany, Italy, Japan, Spain, Sweden, UK
and USA.

Fieldwork:

15th to 31th October 2014.

My shopping choices of opting for a labeled product can


make a positive difference to the worlds forest

6%

4%
26%

5 - I strongly agree
4
3

30%

34%

21

1 - I strongly
disagree

Do you actively look for forest certification


labels?

29%

Yes
No

71%

22

What reassures you most that environmental


considerations have been taken into account?
Label certifying ethical
considerations

54

Country of origin ("Made in")

30

Brand

23

24

Recommendations of family/
friends

17

Media recommendation - TV,


press, newspaper

16

Would you prefer companies to label products?

15%
4%
Yes
No
Don't know

81%

24

Do you know these labels?

Any label (net)

None
PEFC
Any label (net)

PEFC
ASF / CERFLOR / CFCC / SFI

None

25

10

20

30

40

50

60

Do you trust these labels?


Mean
Value

PEFC

15

23

49

3,4

7 6

(ASF / CERFLOR / CFCC / SFI)

is a label I can trust


5 - I strongly agree
4
3
2
1 - I strongly disagree

FSC
is a label I can trust

26

14

24

49

7 6

3,3

Summary
Consumers agree that their shopping choice can
make a positive difference
Almost 1/3 of all consumers state that they actively
look for a certification label
PEFC is the most trusted global certification system
Consumers trust certification labels and expect
companies to label products

27

Thank you
Thorsten Arndt
Head of Communication
PEFC International

www.pefc.org

Two exercises to generate inputs to


inform and influence PEFC development
How can we address deforestation through stimulating demand for
sustainable forest products?
14:45 - 15:15

Exercise One

15:15 - 16:15

Exercise Two

Is forest certification transforming from a choice


influencing to a choice editing solution? In other
words .. from a NICE to have ----- to a MUST have from
VOLUNTARY to MANDATORY
Leveraging what you heard today and the expertise in
your group:

Develop a practical & scalable supply chain model or


example that fully uses forest certification and
addresses deforestation

Outline what key actors, actions & resources are


needed to scale-up certification along the supply
chain

These two exercises are outlined in your participants workbook in your


delegates folder
Your facilitator will capture key points and report them back
PEFC will keep all worksheets for planning
29

Break out groups do you still have


your PEFC playing card?
Group Facilitator

30

Room

Gary Dunning, The Forests Dialogue

Salon Carot

Richard Laity, PEFC SE Asia

Salon Carot

Sheam Satkuru-Granzella, MTCC &


PEFC International

Salon Carot

Hannah Price, PEFC International

Salon Dufy

Michael Buckley, PEFC International

Salon Dufy

Christian Kammer, PEFC International

Salon Dufy

Johan Vlieger, PEFC International

Salon Dufy

Remi Sournia, PEFC International

Salon Dufy

Xavier Noyon, PEFC International

Salon Dufy

Break out groups report backs &


discussion
Exercise Is Forest certification transforming
One
from a choice influencing to a
choice editing solution from a
NICE to HAVE to a MUST HAVE?
Exercise Scalable supply chain models &
Two
examples that fully uses forest
certification to ensure sustainability
while addressing deforestation

31

Audience survey question 4


Based on what you have heard and discussed today,
please answer this slightly amended Q1:
Forest certification can be more effectively used to
engage with consumers by fully supporting
sustainable supply chains & brands while also
promoting a sustainable forest industry and
combating deforestation.
Answer options are: When asked, stand-up for the
answer you agreement with:
1. Yes, I know it can
2. I still have mix views on its use & leverage
3. No, it can only ever have limited impact
32

Reflections
Factors outside of the forest sector are significant drivers of
deforestation
Consumers
expect products to be sustainably sourced and
retailers to provide them, though not willing/able to pay
more
expect companies to communicate sustainable
sourcing through labels such as PEFC; labels are more
trusted than brands
(Consumer Goods) Companies
Use certification to help manage supply chain risks
Utilize procurement policies and commitments
(individually & collectively)
Benefit from labels to communicate responsible
sourcing

33

Reflections
Governments
Have major impact through combined
purchasing power and policy frameworks
Are increasingly moving from legal to
sustainable
Public-private partnerships
Increasing number of initiatives in multiple
sectors addressing sustainable sourcing and
deforestation challenge
Forest certification is part of the solution
34

Reflections
Forest certification proven tool, yet there is a need
for
Scale it up to ensure supply & benefits to
forests and those dependent on them
better collaboration/integration with related
sustainability standards (cross-sector,
landscape level)
all actors along the entire value chain to
better communicate & label

35

The PEFC Response


We take away three key areas for us to reflect on:
What further actions beyond supplying certified fibre
can PEFC take to be a stronger force against illegal
fibre in the supply chain?
What role can PEFC play to reduce the conversion of
forests to agricultural land and other uses?
What role must PEFC play in consumer education?

36

PEFC would like to thank the sponsors of


PEFC Forest Certification Week & our Cocktail
reception
Mets Group

PEFC Portugal/CFFP

and our hosts, PEFC France

37

Suzano Pulp and Paper

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