FSC: Lessons from a Trusted Environmental Brand

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FSC Lessons from a Trusted Environmental Brand

• Michael P. Washburn, Ph.D.
• Washburn Consulting
• October 18, 2006
• Pocantico Hills

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Whats the problem?

• Illegal logging
• Species loss
• Ecological decline
• Supporting social conflict
• Violence
• Water pollution
• Climate change

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What is FSC?

• Global
• Non-profit
• Independent
• Stakeholder driven
• Market based
• Rigorous
• Credible
• Valued in market

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History

• Formed following 1992 Earth Summit
• Created to provide tool for reducing
  deforestation
• Other models for protecting forests were not
  succeeding
• Conceived as global system from the outset

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FSC Principles

• Compliance with Laws
• Tenure and Use Rights and Responsibilities
• Indigenous Peoples Rights
• Community Relations and Workers Rights
• Benefits from the Forest
• Environmental Impact
• Management Plan
• Monitoring and Assessment
• High Conservation Value Forests
• Plantations

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Standards

• Protect water
• Protect wildlife
• Protect communities
• Protect consumers
• Protect good forestry

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Chain-of-Custody

• Forests are certified according to FSCs
  Principles and Criteria.
• Sound management and harvesting practices are
  followed as trees are cut.
• Harvested trees are transported to an
  FSC-certified mill, where logs are made into
  FSC-certified lumber, veneer, pulp, and other raw
  materials.
• FSC-certified manufacturers use FSC-certified raw
  materials to make wood and paper products.
• FSC-labeled products are transported to stores
  worldwide.
• Consumers purchase products with the FSC label.
• Support for sound forest management grows, and
  the demand for FSC-certified products increases,
  each time the cycle is completed.

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Members

• Environmental Organizations
• Civil Society, Community and Indigenous Groups
• Forest Products Companies
• 3 Chamber System provides balanced standards
  and governance

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Other Systems

• FSC spurred creation of competitors
• No other system is viewed as having the same
  rigor and credibility
• No other system supported by FSCs diversity of
  stakeholders
• FSC views other systems as positive and as part
  of market transformation

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Certified Acres

• Acreage under certification is growing rapidly
• Markets for certified products are growing
• Awareness of social and environmental impacts
  growing
• Markets are being empowered by choices

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FSC Improves Performance

• 2005 studies by World Wildlife Fund and
  Rainforest Alliance show
• Improved protection for biodiversity
• Improved worker conditions
• Better planning
• Improved financial performance

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Users of the Tool

• Environmental groups
• Forest managers
• Product manufacturers
• Consumers with visible brands
• Companies with CSR commitments
• Community forestry organizations
• Individual consumers

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How FSC Grows

• FSC brand helps companies brand green
• Users can tell a story of being responsible
  consumers
• Competition among brands drives more uptake
• More companies enter COC
• More acres enter system

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Paper-Related Certificates

• CSR commitments drive uptake
• Annual reports are very visible and help convey
  brand
• Merchants, printers, mills are all key players

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Green Building Industry

• Solid wood in buildings accounts for 40 of U.S.
  fiber use
• LEED is the largest driver for FSC globally
• FSC enables wood to be viewed as a green building
  product

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Market Structure

• Large buyers can move markets
• Do-It-Yourself chains are customers of interest,
  but retail buyers are hard to reach
• Limited dollars are focused on high-volume buyers

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Trends

• U.S. land values changing
• Fiber sourced offshore
• Labor rules less stringent in many countries
• U.S. market is largest in the world today
• Largest tomorrow?

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Forests climate

• We know there is a link
• We need good measures
• FSC is well established as a measure
• Markets for forest carbon are growing
• Carbon may exceed fiber in market value in
  certain regions

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