PEFC UKANNUAL REPORT

CONTENTS01 CHAIRMAN’S REPORT

02 MARKET OUTREACH

04 PUBLIC AFFAIRS

05 PROMOTING CERTIFIED TIMBER

06 PEFC INTERNATIONAL’S ACTIVITIES

07 DEMAND FOR CERTIFICATION

08 BOARD OF DIRECTORS

10 ACCOUNTS

13 PEFC PROGRESS IN ASIA

PEFC UK LIMITED

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BOARD OF DIRECTORSHugh Miller, Chairman

01HUGH MILLER OBE, CHAIRMAN, PEFC UK

and the advantages it offers to businesses across a range of sectors from packaging to biomass has remained at the heart of our marketing activities. We are encouraged that PEFC brand recognition continues to grow with leading companies across the UK increasingly using the PEFC logo on product to provide their customers with assurances of responsible sourcing.

November saw the UK team head off to the warmer climes of Kuala Lumpur for the inaugural PEFC forest

incorporated the 18th General Assembly, a two-day Stakeholder meeting and a full programme of sidebar events in addition to a system development workshop. Eleven countries from three continents participated in the second PEFC sustainable forest management system development workshop. It

from Cameroon, India, Indonesia, Japan,

Vietnam with representatives of PEFC members from Belarus, Malaysia, Spain and PEFC International.

UK was the January event to celebrate Kingsgate House, a seven-storey

residential project in West London,

project in the world to achieve PEFC

both PEFC UK and the contractor Willmott Dixon and it is hoped that where they lead, other developers will follow. As the majority of solid wood solutions

Glulam are made from timber sourced

projects using these materials should

achievable.

As ever thanks are due to the many individuals and organisations that enable PEFC to achieve so much in the UK with relatively modest resources. I would like to thank the Finnish Forest Foundation

to our marketing and communications

Heritage Envelopes for helping PEFC keep its stationery bill in check and to the Premier Paper Group for their generous donation of the paper used to

world.

I would like to record my appreciation to my fellow Board members for the time they have generously devoted to our affairs over the past year. Finally, I would like to thank the PEFC UK team

Hilary Khawam who continue to work so diligently to take the organisation forward.

CHAIRMAN’S REPORT

365DAYS

OF SUSTAINABILITYbrought to you by PEFC www.pefc.org PEFC/01-00-01

2014CALENDAR

Welcome to the 2014 Annual Report.

Over the past year, the PEFC team has

been working tirelessly to raise the

“Thanks are also due ... to the Premier Paper Group for their generous donation of the paper used to print

featuring images of

the world.”

02MARKET OUTREACH

Construction scheme

In January, Kingsgate House, a seven-storey residential project in West London

project in the world to achieve PEFC

for both PEFC UK and Willmott Dixon and it is hoped that the project will help raise awareness of PEFC’s Project

and construction projects using these

to Willmott Dixon at a CPD event which was held in January at the Building

PEFC UK has used two important UK trade shows to demonstrate its global reach over the past twelve months.

Exhibiting alongside the North American Sustainable Forestry Initiative (SFI) and

Both shows provided excellent platforms for PEFC and its partners to engage with a broad range of stakeholders from around the world.

Goes to Scottish Visitor Centre

Magazine awards were held in

were established to celebrate some

which were judged to use timber to its fullest potential. PEFC, SFI and the

sponsored the Commercial Project of the Year Award, which was won by the

Abbotsford Visitor Reception Building. Abbotsford is the world-famous home built for Sir Walter Scott in the Scottish

was conceived as a modern version of a gate lodge by Edinburgh-based

building comprises a reinforced concrete basement and specialist structural timber frame with timber weatherboard cladding and curtain walling to external walls with a Sedum green roof system.

TIMBER AND CONSTRUCTION

Abbotsford

Ecobuild 2014

03

PEFC UK co-sponsored a Royal Forestry Society Award for the

RFS is the UK’s largest forestry education charity and has almost

organisations from the North West were invited to enter projects aimed at increasing young people’s understanding and appreciation of the environmental, social and economic potential of forests.

Education Award for Excellence in Forestry was Millbrook Primary

school introduced the forest school

initiative into the curriculum four years ago as a way of developing the social and emotional aspects of children’s learning, helping them

outdoor environment more.

NEW PUBLICATIONSFROM PEFC

Trade in Asia

All three publications can be

Why Labels Matter

BRINGING THE HIGHEST ASSURANCESOF SUSTAINABILITY TO YOURCONSTRUCTION SCHEME

PEFC PROJECT CERTIFICATION

Last year, PEFC published a revised Chain of Custody standard to ensure

to demonstrate compliance with

stakeholder event therefore concentrated on the responsible sourcing of forest products and the

more about the European Regulation and how leading companies and organisations are implementing it. Speakers from a range of sectors shared their experiences including Michael Kearney, National

compliance in the UK), Steve Cook

of Willmott Dixon and chair of the UK Contractors Group Materials Working Group, Nina Happonen of Metsaboard and Jacqueline Macalister of McDonalds Europe. Alun Watkins of PEFC UK explained

due diligence requirements.

STAKEHOLDER ENGAGEMENT

FORESTRY

Photo © Les Starling

Jacqueline Macalister

04

As in previous years, the focus behind PEFC’s engagement with public and private sectors was linked to the most topical issues and focused on key

concentrated on the implementation and

ongoing implementation of the

sustainability criteria for biomass in

WHITEHALL – DEFRA, DECC AND GOVERNMENT PROCUREMENT SERVICE

Energy and Climate Change (DECC) adopted a new biomass sustainability

Procurement Policy Principles which recognise both PEFC and FSC as providing assurances of sustainable sourcing.

PEFC met with both Defra to

amendments to the Forest Law

Partnership Agreements and sustainable

PEFC with an opportunity to be updated on the Grown in Britain initiative. PEFC and representatives of Grown in Britain discussed how sustainable forest

alongside the Grown in Britain standard.

PEFC also met with the Government Procurement Service to discuss

the frameworks developed by the Government Procurement Service and to encourage the adoption of inclusive timber policies in key Government Agencies.

DEVOLVED AND LOCAL GOVERNMENTS

In previous years, PEFC has held a series of engagement meetings with decision-makers and policy-makers in the Devolved Governments. Following engagement with elected representatives

outreach to Scotland Excel, the Centre of Procurement Expertise for local authorities in Scotland.

Discussions at the meeting with Scotland Excel centred on the tendering process for providing evidence of Chain

participating in public sector procurement processes in Scotland.

LOOKING AHEAD

scheduled to start towards the end

opportunity for issue-led engagement with relevant stakeholders. In preparation, PEFC will continue intelligence gathering and bi-annual meetings with Defra to

developments and the implementation of

By consistently widening our public affairs outreach, PEFC will continue its

responsible timber procurement and sustainable forest management are understood, implemented and enforced across all levels of Government in the UK.

PEFC’S PUBLIC AFFAIRS OUTREACH

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across the UK construction landscape is the growth and increased use of engineered timber products and solid wood building solutions such as Cross Laminated

recognised as a popular and fashionable way to build strong, sustainable and stable structures as well as bringing a striking architectural dimension to modern building design.

core. Kingsgate House, a seven-storey residential scheme located on the King’s

project in the world to achieve PEFC

KINGSGATE HOUSE & PROJECT CERTIFICATIONDesigned by Horden Cherry Lee Architects (HCL) and built by main contractor Willmott

affordable residential units and contains

KLH UK.

PROMOTING THE USE OF TIMBER

WOOD AWARDS 2014

for PEFC and the lessons learned from the procurement and building process, including the promotion of the project, will

forward everywhere.

sustainable building, achieving Code for

carbon and renewable alternative to steel

in a residential area of London. It saved both time and money and also increased the amount of embodied carbon on the scheme.

After a detailed and rigorous auditing

‘legal and sustainable’ and the scheme

provides robust independent assurance that all timber used on the project is from legal and sustainable sources in line with the Government’s timber procurement policy.

sustainable forestry by sending a positive message down the supply chain back to the forest that there is a market preference

06

global industry networks, such as the Consumer Goods Forum (CGF), more

their members as providing assurances of responsible sourcing. Additionally,

of the world’s leading forest, paper and packaging companies who are members of the Forest Solutions Group of the World Business Council for Sustainable Development. PEFC also features in the Soft Commodities’ Compact, an initiative

industry trade soft commodities, for example timber, palm oil and soy, using criteria to achieve zero net deforestation in the soft commodities’ supply chains by

is the result of collaboration between the Banking Environment Initiative and the Consumer Goods Forum, with advice from the World Wildlife Fund, to establish how the banking industry can help achieve this goal.

It is developments such as these which illustrate the broad acceptance of our work; demonstrate to forest owners and forest-processing companies alike the

huge potential to transform the way timber and timber products are produced and

processed towards shared sustainability objectives.

But there is even more to come as we shift up a gear. Asia’s growing population and increasing purchasing power are shaping the world’s forestry, timber trade and consumption landscape. We have been

for years, from standard setting to system administration and compliance

results of our commitment to the region. China, the world’s largest manufacturer of forest products, recently achieved PEFC endorsement for the China Forest

substantially increase the uptake of PEFC

management both in China and in the

have already achieved PEFC endorsement; Indonesia has applied for it; New Zealand is soon to follow; and many other countries in the region are currently developing their systems, including India, Japan, Myanmar, Nepal, the Philippines, South Korea and

forces in motion, we are moving closer

sustainable forest management, with all

forest biodiversity, sustaining livelihoods, and contributing to rural development and poverty alleviation.

PEFC INTERNATIONALBEN GUNNEBERG, SECRETARY GENERAL, PEFC COUNCIL

Minister of Plantation Industries and Commodities, YB DATUK AMAR DOUGLAS UGGAH EMBAS welcomes delegates to the 2013 Kuala Lumpur General Assembly

point. We are now at a stage where over 258

where almost 16,000 companies have their

07GROWTH OF FORESTRY AND COC

GLOBAL GROWTH IN PEFC-CERTIFIED FOREST AREA

BREAKDOWN OF CERTIFIED FOREST AREA BY CONTINENT

UK CHAIN OF CUSTODY AND PEFC LOGO LICENSES

GLOBAL GROWTH IN CHAIN OF CUSTODY NUMBERS

0

2005 2006 20132012201120102009

YEAR

20082007

50

100

150

200

Certi

fied

fore

st ar

ea (m

. ha)

250

300

187.7 193.8

258.0237.0231.0226.8223.5217.4

194.4

2005 2006 20132012201120102009

YEAR

20082007

Num

ber o

f CoC

Cer

tifica

tes

0

2000

4000

6000

8000

10000

23622901

99449548

78147688

6166

4420

3545

2005 2006 20132012201120102009

YEAR

logo licenses

chain of custody numbers

20082007

Num

ber o

f Hold

ers /

Con

tract

s

0

300

600

900

1200

1500

Europe: 79,109,526

North America: 155,257,021

Central and South America: 3,659,468Oceania: 10,451,490

Asia: 4,649,912

TOTAL253m ha

61.3%

4.1%1.8%

31.3%

1.4%

08BOARD OF DIRECTORS

HUGHMILLER

JOHN SANDERSON

STEVE COOK

09

ROSSBRADSHAW

JULIA GRIFFIN

ROB SHAW

MARK WEATHERBED

PAT BURKE DAVID

LESLIE

10STATEMENT OF DIRECTORS’ RESPONSIBILITIES

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

AUDITORS

AUDITED ACCOUNTS

DIRECTORS

R Shaw

2012

11REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF PEFC UK LIMITED

RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS

OPINION ON FINANCIAL STATEMENTS

OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

FOR YEAR ENDING 31ST JULY 2013

12

2%

26%

7%

36%23%

6%

£450,902

BREAKDOWN OF PEFC UK LTD EXPENDITURE FOR THE YEAR ENDED 31ST JULY 2013

PEFC UK INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31ST JULY 2013

INCOME AND EXPENDITURE

SUBSCRIPTIONS AND SPONSORSHIPS

ADVERTISING, COMMUNICATIONS AND CONSULTANTS

TRAVEL, SUBSISTENCE & SUNDRY EXPENSES

PEFC COUNCIL FEES

OFFICE, RENT, SALARIES &

ADMINISTRATION

MEETINGS, INCLUDING BOARD AND AGM

£ £

484,031 449,347

48,851 58,214

41,518 58,473

13PROGRESS IN ASIA-PACIFIC

Forests in Asia are critically

PEFC UK

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PEFC COUNCIL

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