www.pefc.org

PEFC CouncilWorld Trade Center 110, route de l’Aéroport

CH-1215 GenevaSwitzerland

Tel. +41 22 799 45 40info@pefc.org

The Business Case for Using the PEFC LabelThe Business Case for Using the PEFC Label

Why Labels MatterWhy Labels Matter

www.pefc.org

PEFC CertificationYour Label of Trust

What is PEFC?Programme for the Endorsement of Forest Certification

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• Global alliance (not-for-profit association) of 41 grassroots-inspired national forest certification organizations

• World's leading forest certification system, offering the largest choice of sustainably-sourced timber and wood-based products

• The only global certification system utilizing globally recognized ISO/IAF mechanism for compliance verification

• PEFC specifically considers the unique needs of small and family forest owners while being equally used by large landowners

• PEFC is required or recommended by public and private procurement policies around the world

• Most trusted forest certification label globally by consumers

Forest Management Chain of Custody

Behind the labelWhat forest certification delivers

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Delivers sustainable wood raw material that is:

• legal: wood is harvested in compliance with local legislation and international agreements• from well managed forests: safeguarding environmental, social & economic values• traceable: the raw material supply chain is verified from the forest to the finished product

Market DemandForest owners/processors request certification

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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

Market DemandRetailers/consumer goods companies request certification

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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.

Market DemandThe finance sector requests certification

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Banking Environment Initiative

• The ‘Soft Commodities’ Compact, in support of CGF goals. Result of two years of extensive collaboration between the BEI and the CGF, with advice from WWF.

• The Compact includes a commitment for banks to raise the standards they expect of certain clients in high risk geographies. Compact banks will confirm that customer operations have achieved the same internationally recognized means of verification that the CGF is prioritizing: This includes PEFC for timber.

• Signatories include: Barclays, BNY Mellon, China Construction Bank, Deutsche Bank, Lloyds Banking Group, Nomura, Northern Trust, Santander, Sumitomo Mitsui Banking Corporation and Westpac.

Market DemandGovernments, private guidelines request certification

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Public Procurement Policies & Labels• Belgium, Denmark, Finland, France Germany,

Japan, Netherlands, Switzerland, UK…• European Green Public Procurement• EU Eco Label

Private Guidelines• European Retail Environmental Sustainability Code• Singapore Environmental Council• Multiple green buildings councils & associations

(Australia, Canada, Italy, Netherlands, Singapore, UK, US…)

Market DemandConsumers request certification

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16%

17%

24%

30%

54%

Media recommendation - TV,press, newspaper

Recommendations offamily/friends

Brand

Country of origin ("Made in…")

Label certifying ethicalconsiderations

What reassures you most that environmental considerations have been taken into account?

Source: PEFC/GfK Global Consumer Survey (Nov 2014)

Market DemandConsumers request certification; trust certification

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(AFS / CERFLOR / CFCC / SFI)

is a label I can trust

is a label I can trust

81%

4%15%

YesNoDon't know

MeanValue

3,4

3,3

Would you prefer companies to label products?

Source: PEFC/GfK Global Consumer Survey (Nov 2014)

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15

24

23

49

49

7

7

6

6

FSC

PEFC5 - I strongly agree

4

3

2

1 - I strongly disagree

Market AcceptanceMultinational companies using the PEFC label

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“[…] all Lipton tea packs in Europe are certified via PEFC.”

Unilever

“We are committed to purchasing timber and timber products for the UK market only from legal, sustainable sources.”

Tesco

“PepsiCo will continuously work with its suppliers to be environmentally sustainable in their practices by following credible forestry standards and ensuring their fiber purchasing is only from sources that support responsible forest management.”

PepsiCo

Benefits for Your BusinessAdvantages of PEFC certification & labelling

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• Meet expectations• The PEFC label allows your company to demonstrate its

environmental and social responsibility to customers.• Procurement policies by governments and companies are increasingly

specifying certification as a key requirement.

• Secure supply• Secure your supply of sustainably sourced material with the assurance

that the raw material used in your packaging originates from legal and sustainable sources, aligned with regulatory requirements such as EUTR.

• There is a larger quantity of material certified to PEFC than any other forest certification system, providing you with competitive options.

• Position your business• The PEFC label allows consumers and customers alike to value your

company’s engagement towards sustainability.• PEFC provides you with access to an increasingly discerning market.

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15

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18

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www.pefc.org

Supply AvailabilityPEFC – the World’s Largest Forest Certification System

Countries developing a system for eventual PEFC endorsement

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PEFC Certified Forest AreaCovering more than a quarter of a billion hectares

0

32.441.1 46.1 50.9 55.3

187.7193.8194.4

217.7223.5229.6

245.1237.4

253.1263.2

272.1275.3

0

50

100

150

200

250

300C

ertif

ied

fore

st a

rea

(milli

on h

a)

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PEFC Chain of Custody>10,000 certificates covering >17,000 companies

59463

1100

19052362

2901

3545

4420

6166

7688

8797

95299996

10'591 10'744 10'831

0

2000

4000

6000

8000

10000

12000N

o. o

f Cha

in o

f Cus

tody

cer

tific

ates

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CartonsSelected PEFC-certified suppliers

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Corrugated MaterialsSelected PEFC-certified suppliers

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www.pefc.org

Promoting SustainabilityPEFC Certification –Safeguarding the World’s Forests

Sustainable Forest ManagementHow we define SFM

“The stewardship and use of forests and forest lands in a way and at a rate that maintains their biodiversity, productivity, regeneration capacity, vitality and their potential to fulfil now and in the future, relevant ecological, economic and social functions at local, national and global levels, and that does not cause damage to other eco-systems”.

1993 Pan-European Ministerial Conference on the Protection of Forests in Europe (MCPFE)

• Sustainably managed forests are those whose management implements performance standards based on internationally agreed environmental, social and economic requirements

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SFM in Practice

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Forest BenefitsWhy forests are so important

• Forest are home to 2 out of 3 living species

• 1.6 billion people (1 in 5 persons) in the world rely on forest resources for their livelihoods

• 350 million of these people live directly around forests

• Sustainable forest management makes a difference

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Role of Forest CertificationThe contribution of PEFC

Sustainable forest management contributes positively to tackling societal challenges such as climate change, poverty alleviation, water management issues, biodiversity loss

Forest certification• Provides evidence for sustainable forest management

through third-party certification• Provides forest owners with access to markets demanding

certified products• Encourages sharing of knowledge and best practices,

continuous improvement• Assists in securing forest benefits long-term

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Small- and Family Forest OwnersPEFC: From smallholders, for smallholders

• “We are committed to conserving forests and their invaluable biodiversity, and the communities and families that own, work, and live in and around forests.”William Street, PEFC Chairman

• “The PEFC certification framework has brought significant numbers of small private non-industrial forest owners into the certification movement […]”UNECE/FAO

• “PEFC is the certification system of choice for small- and family forest owners globally. Many of them, like me, look for the PEFC label on products to see if the manufacturer is supporting us in our good work and endeavour to take care of our forests for future generations.”Lorenz Klein von Wisenberg, International Family Forestry Alliance (IFFA)

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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 unauthorised 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 recognised specific historical, cultural or spiritual significance• Safeguard areas 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

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40%

60%

Forest Certification GloballyProgress so far

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72%

28%

90%

10%

28% of industrial roundwood production

is certified

60% of total certified area is PEFC

10% of the world forests are certified

(UNECE/FAO 2013)

Your Commitment to SustainabilitySource responsibly, tell your story

You can demonstrate your commitment to responsible sourcing and help secure the future of the world’s forests by:

• Developing and implementing a procurement policy which recognizes or requires PEFC certification

• Ensuring your preferred packaging supplier offers PEFC-certified products or encourage them to obtain PEFC certification

• Use the PEFC logo on your product packaging as an assurance of responsible sourcing

• Communicating what the logo means to your customers

• Obtain PEFC certification for your company37

ConclusionsDemand for certification & labeling poised to increase

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• Significant, heightened interest & commitment to certification system development at national level; increase in supply expected to meet growing demand internationally particularly Europe, North America and Asian markets.

• Legislation, procurement policies (both public & private) and other sustainability initiatives continue to build awareness and demand for certification and products thereof.

• Market access, market demand and consumer recognition represent a clear business case for countries wishing to maintain their national identity and ownership of national systems at international level through PEFC.

In Summary - Brand Owners PEFC - Your assurance of responsible sourcing

• Packaging is essential for protecting products on their journey from factory to store and eventually to people’s homes.

• Consumers expect packaging to be responsibly-sourced, with minimal impact on the environment and the world’s forests.

• Labels such as PEFC’s are the most trusted source of information for consumers.

• PEFC certified packaging and the PEFC label communicates your responsibility to consumers – with each interaction they have with your product.

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In Summary – Packaging CompaniesPEFC - Your assurance of responsible sourcing

• All actors in the value chain increasingly expect packaging to be responsibly-sourced, with minimal impact on the environment and the world’s forests.

• In response, companies are increasingly looking to demonstrate that the fiber they use in their packaging comes from a certified sustainable source.

• By obtaining PEFC Chain of Custody certification and offering PEFC-certified material, you can provide your customers with a responsible choice, enabling them to fulfill market requirements and demonstrate their corporate commitment to sustainable sourcing.

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www.pefc.org

PEFC CouncilWorld Trade Center 110, route de l’AéroportCH-1215 GenevaSwitzerlandTel. +41 22 799 45 40info@pefc.org

Thank you!