PEFC UK Ltd

Alun Watkins
Hilary Khawam

Promoting
Sustainable Forest
Management

www.pefc.org #pefc
 Fantastic Forests

2
 Fantastic Products from Forests

3
 No products without harvesting

4
 How people associate the use of
wood-based products

5
 Forest Benefits
Why are forests 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

6
 Why Forest Certification Matters
Helps prevent
illegal logging Maintains and increases
the health and vitality
of forest eco-systems

Promotes
Protects
safe working
ecologically
conditions
important
forest areas

Recognises the role

forests play in rural
Promotes the long-term
development
well-being of forest
communities

7
 Why Forests Matter

12-15 million hectares of forest are lost every year

Two key causes of deforestation:

1. Conversion - wood fibre, palm & soy plus infrastructure
2. Degradation - fires, illegal & unsustainable logging, fuel wood
harvesting and climate change

This brings five key issues:

1. Reduced biodiversity
2. Release of Greenhouse gas emissions
3. Disruption of water cycles
4. Increased soil erosion & run off
5. Impacts on local communities
Certification offers a potential solution – PEFC and FSC are
the two global certification schemes
8
 About PEFC

▪ Global, not-for-profit, non-governmental organisation – established in

1999

▪Alliance of national forest certification systems with global

representation

▪304 million hectares of forests are certified by 39 PEFC-endorsed

national schemes with 49 global members

▪World's largest forest certification system and provider of sustainably

managed wood-based products such as timber and paper

▪The only global certification system utilising globally recognised

ISO/IAF mechanism for compliance verification
9
 What PEFC Stands For

"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 former Chairman

PEFC’s Vision:
"A world in which people manage forests sustainably.“

PEFC’s Mission:
"To give society confidence that people manage forests
sustainably."

10
 Role of Forest Certification
Sustainable forest management contributes positively to
tackling global challenges such as climate change, poverty
alleviation, water management issues and loss of
biodiversity.

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 practice and
continuous improvement
• Assists in securing forest benefits for the long term.
11
 Responsible Forest Management
PEFC 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
• Recognise 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

12
 Panel of
Experts

Approval by members

International
Board
Global public
consultation Sustainability recommend-
ation
Benchmarks Revision required

Multi-
Independent stakeholder
assessment process

National Consens-
Pilot testing based decision
Application for assessment
Standard making

National public
consultation
13
Forest Cover and Loss
 Global Growth of the PEFC Alliance

2016
2009 PEFC members with endorsed systems
PEFC members progressing towards endorsement
Countries actively developing systems
15 As of January
June 2016
2009
 Certification – The Global Picture
Progress to date

28% 60% 10%

▪28% of the world’s ▪60% of the total area ▪10% of the world’s forests
industrial roundwood certified to PEFC are certified
supply is certified

16
 Certified Forest Area by Country
Country Certified Area (ha) Country Certified Area (ha)

Argentina 22,524 Japan 679,129

Australia 23,832,280 Latvia 1,700,889
Austria 3,081,518 Luxembourg 34,195
Belarus 8,710,234 Malaysia 4,119,249
Belgium 299,500 New Zealand 434,185
Brazil 3,072,628 Norway 7,380,750
Canada (CSA) 40,118,451 Poland 7,252,197
Canada (SFI) 90,818,877 Portugal 256,369
Chile 1,908,712 Russia 12,875,382
China 5,709,026 Slovak Republic 1,230,971
Czech Republic 1,811,407 Slovenia 49,204
Denmark 264,411 Spain 2,108,257
Estonia 1,174,511 Sweden 11,549,700
Finland 17,660,520 Switzerland 208,949
France 8,211,435 United Kingdom 1,409,761
Germany 7,398,828 USA (ATFS) 7,564,949
Indonesia 3,491,040 USA (SFI) 25,937,681
Ireland 376,108 Uruguay 619,168
Italy 828,952 Total 304,201,947
17
 Certified Area Growth
350.0

301.6 303.7
300.0
272.1
263.2
253.1
245.1
250.0 237.4
Certified forest area (million ha)

229.6
223.5
217.7

193.8 194.4
200.0 187.7

150.0

100.0

46.1 50.9 55.3

50.0 41.1
32.4

0.0
0.0

Year
18
 PEFC and FSC

PEFC FSC
Bottom up approach Top down approach

Sustainability benchmarks Principles and Criteria set by

based on global guidelines and FSC
criteria
Accreditation by UKAS and IAF Accreditation by ASI and ISEAL

Balanced representation based Three chamber system – social

on Rio Agenda 21 environment and economic

Both schemes have the same overall goal and provide

equivalent assurances of sustainability

19
 Behind the Label
The nuts & bolts of PEFC – 2 areas

Forest Management Chain of Custody

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

20
 Chain of Custody Numbers
by Country

Country Country Country Country

Argentina 10 Egypt 1 Malaysia 359 South Africa 5
Australia 194 Estonia 71 Mexico 7 Spain 880
Austria 470 Finland 232 Monaco 1 Sri Lanka 1
Bahrain 1 France 2033 Morocco 3 Sultanate of Oman 1
Belarus 9 Germany 1708 Netherlands 454 Sweden 212
Belgium 303 Greece 3 New Zealand 28 Switzerland 63
Bolivia 1 Hungary 21 Norway 75 Taiwan 8
Bosnia and Herzegovina 2 India 13 Papua New Guinea 1 Thailand 15
Brazil 50 Indonesia 32 Paraguay 1 Tunisia 1
Bulgaria 6 Ireland 39 Peru 10 Turkey 28
Canada 185 Israel 4 Philippines 4 United Arab Emirates 28
Chile 61 Italy 708 Poland 172 United Kingdom 1144
China 289 Japan 306 Portugal 133 USA (PEFC CoC) 259
Colombia 1 Korea, Republic of 3 Romania 24 Uruguay 3
Croatia 7 Laos 1 Russia 30 Vietnam 7
Cyprus 1 Latvia 49 Saudi Arabia 2 Total: 11,262
Czech Republic 212 Lebanon 1 Singapore 26
Denmark 100 Lithuania 11 Slovak Republic 79
Dominican Republic 1 Luxembourg 17 Slovenia 42

21
 PEFC ST 2002 Responsibilities

PEFC Council

Board of Directors Secretariat

Chain of Custody and Labelling

Working Group

Task Forces
22
 Work in Progress

• Guidance for social requirements

Full revision of all PEFC standards by Nov 2018

• «Greenhouse gas calculation» Transfer of data

• Cross site volume project

• No placement of significant risk material on the market
• Internal audit sampling

• 100% Road Map

23
 PEFC Standards Documentation

PEFC ST 2002:2013: Chain of Custody of Forest Based

Products - Requirements
PEFC GD 2001:2014: Chain of Custody of Forest-Based
Products - Guidance for Use

PEFC ST 2003:2012: Requirements for Certification Bodies

operating Certification against the PEFC International Chain of
Custody Standard

PEFC ST 1003:2010: Sustainable Forest Management

PEFC ST 2001:2008: PEFC Logo usage Rules

18
 Chain of Custody - Scope

Chain of Custody
Process of transferring information on origin of raw
material to information on origin of an organisation’s
products.

Requirements apply to:

• Material entering Chain of Custody product group
• Claimed products to the customer

Any other materials/products are not in the scope of the

organisation's Chain of Custody system.

25
 Structure of PEFC ST 2002:2013

4
• Identification of material category

5
• Minimum Due Diligence System requirements

6
• Chain of Custody method

7
• Sales and communication on claimed product

8
• Minimum management system requirements

9
• Social, health and safety requirements

20
 Requirements for input / output
information

27
 Incoming Delivery?
Check your supplier's status

• (Access to) Copy of certificate

• Check:
• Current status
• valid
• suspended
• expired
• withdrawn

http://www.pefc.org/find-certified/certified-certificates)
• Scope

28
 Defining Controversial Sources

Illegal
GMO use Conversion
Harvesting
• Forest operations • Utilising genetically • Converting forest to
• High environmental modified forest-based other vegetation type
values organisms • Conversion of
• Protected & primary forest to
endangered species plantations
• Health & labour
issues of workers
• Property, tenure &
use rights
• Taxes, royalties,
trade & customs

29
 PEFC’s Due Diligence System

The PEFC Due Diligence System applies to all certificate holders

Reason: availability of tree-species and origin information required

at any point in PEFC Chain of Custody

Background

• PEFC's positioning in "legality and responsible sourcing" issue

• No regional exception, same requirements for all
• Retailer/end-user feedback
• Unpredictable material flow between Europe and other areas

30
 PEFC’s Due Diligence System

• Certified material NOT exempt from Due Diligence System

• Information on species and origin is required

• Certified material EXEMPT from Risk Assessment

• Applies to PEFC Certified & PEFC Controlled Sources
• PEFC claim demonstrates "negligible risk" by default
• Provided no substantiated comments / complaints were raised

25
 Formal PEFC Claims

• X% PEFC Certified

• PEFC Controlled Sources

• Any other claim invalid!

PEFC Mix

PEFC Pure

26
 PEFC Claims

PEFC Chain of Custody Working Group Conclusion

• "X% PEFC" allowed as abbreviation

• Benefit of new COC is PEFC Controlled Sources

claim on invoice

• Claims (and labelling) on product itself should be

limited to PEFC Certified products

27
 PEFC Logo – Types of Use

ON-PRODUCT OFF-PRODUCT
• Use on the tangible certified • Any use other than on-
product itself product e.g.

• Use on the packaging of the • Promotional

certified product
• Educational
• Use on documentation
referring to the product:
• invoice
• advertisement
• brochure

34
 The PEFC Label Generator
The PEFC Label Generator makes it easier
and quicker for companies, forest owners
and uncertified entities to create PEFC
labels.

This easy-to-use and intuitive online tool creates PEFC

labels in a matter of minutes and provides everything
needed to put a PEFC label on products or promotional
materials.

The PEFC logo and labels are globally trusted marks,

assisting businesses, consumers, forest owners and
managers, and other stakeholders in identifying and
promoting merchandise and goods from forests that are
managed sustainably.
29
 PEFC Label Generator

36
 PEFC Label - Certified

• Minimum 70% certified material content

• Maximum 85% recycled material content

37
 PEFC Label – Promotional Use

Can be used by any PEFC

Logo User Group

38
 PEFC Label – Colour Options

39
 PEFC Logo - Frame

40
41
42
 Different Colour

43
44
 PEFC Project Certification

Project Chain of
Custody certification
enables a claim to be
made about the PEFC
certified material used
within a defined
Project.

45
 PEFC – Your Assurance of Responsible
Timber Sourcing
PEFC certification provides assurances
of responsible sourcing
PEFC is the world’s
20,000 certified largest forest
companies around the certification system
world supplying PEFC
certified products

PEFC promotes
sustainable forest
System of choice management
for small-scale
forest owners

An alliance of
39 national forest
certification systems
304 million hectares
of certified forests
Delivering
impacts in the forest
 Market Drivers for PEFC Certified
Products

47
 Market Drivers for Certification
Legislation
Consumers
Public
procurement

Financial Industry
sector commitments

48 Corporate procurement
 Legislation

EU Timber Regulation 2013

The Lacey Act 2008 (amended)

Australia Illegal Logging

Prohibition Act 2012

49
 Public Sector Procurement

Central Point of Expertise on Timber

Timber Procurement Assessment

Committee

European Green Public Procurement

EU Eco Label

50
 Timber Procurement Policy
The following measures within our guidance are contractual for all fit-out work across our
estate:
Sustainability Requirement
Timber Procurement
Water-efficient sanitary equipment
Site waste management
Energy-efficient lighting
51
Action Required
Confirm that all timber products are legally and responsibly
sourced in accordance with the UK Government’s Timber
Procurement Policy
http://www.cpet.org.uk/uk-government-timber-procurement-
policy
Where sanitary fittings are being replaced or upgraded, select options such
as:
• Dual and / or low flush WC’s
• Waterless urinals
• Low flow taps with automatic shut off
Ensure that a fit-out waste management plan is developed in line with the waste
hierarchy to identify key fit-out waste streams and additional options for reuse,
recycling or other management. Above all, avoid sending waste to landfill.
Minimise energy demand associated with artificial lighting requirements, particularly
during daylight hours.
Select energy-efficient lighting options - for example, LED fittings should be used
where appropriate
 Timber Procurement Policy

TIMBER PURCHASING REQUIREMENTS

Type of Timber Requirements

Softwood FSC / PEFC / CSA / SFI certified softwoods only [Note: coppiced
material is exempt]
Temperate FSC / PEFC / CSA / SFI certified temperate hardwoods only
hardwood [Note: coppiced material is exempt].
Tropical Tropical hardwood will not be purchased unless it is an
hardwood operational necessity.

A business case must be completed for all potential applications /

uses of tropical hardwood and senior management approval will
be needed before any purchases can be made.

If tropical hardwood is purchased, it must be FSC / PEFC / CSA /

SFI / MTCC certified whenever possible. If certified timber is
not available, credible evidence must be obtained which
demonstrates legality, sustainability and traceability through the
supply chain.

52
 Local Authority Procurement

“Haringey Council will only accept CoC

certification if it is from a Government
approved programme. These are from
the Forest Stewardship Council and
Programme for the Endorsement of
Forest Certification”.

Purchase of Transparently and Sustainably Sourced Timber

Central Procurement 27 February 2012 ©

53
 Industry Commitments - Paper &
Packaging

World Business Council for

Sustainable Development

Consumer Goods Forum

The Sustainability Consortium

54
 Industry Commitments - Timber

http://www.supplychainschool.co.uk

55
 Corporate Procurement

Use virgin materials from forests that are verifiably

legal, responsibly managed.................... The Forest
Stewardship Council (FSC) or the Programme for
the Endorsement of Forest Certification (PEFC)
endorsed national forest certification systems can
be used as a way to verify that a forest source is
responsibly managed
“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.”

“[…] all Lipton tea packs in Europe

are certified via PEFC.”

56
 Corporate Procurement

In Europe, we took a big step in 2015 with the sourcing

of solid board from certified sources. In total, more than
60% of all solid and corrugated board purchased for
Europe was either PEFC (Programme for the
Endorsement of Forest Certification) or FSC (Forest
Stewardship Council) certified.

2015 Sustainability Report

57
 Corporate Procurement
We recognise and
support the Forest
Stewardship Council
(FSC) and PEFC (The
Programme for the
Endorsement of Forest
Certification). We strive
towards all sources of
timber to be FSC and or
PEFC compliant by 2018.

58
 Corporate Procurement

93 per cent of the wood used to make our

own-brand products in 2014/15 (excluding
our own brand nappies) was from FSC,
Programme for the Endorsement of Forest
Certification (PEFC), or recycled sources.

“We are committed to the principle of

sustainability in our paper and wood
product sourcing. All of our own label
toilet paper, tissue and kitchen towel is
made from recycled material or fibres
from well-managed forests certified by
the Forest Stewardship Council (FSC),
or by the Programme for the
Endorsement of Forest Certification
(PEFC).
59
 Corporate Procurement

“All wood fibre materials in our

products will be from recycled
sources OR traceable forest sources
that are independently certified to a
credible standard (FSC or PEFC).”

Target Progress
100% of our own brand timber and Almost achieved: 95% of our
paper products will be sustainably own brand timber and paper
sourced by year end 2015/16. products are sustainably
sourced (FSC-certified; PEFC-
certified, recycled or by-product
as defined by the Waitrose timber
policy)
60
 Corporate Procurement

In December, Christmas-
themed coffee cups carrying
the PEFC label began to
appear in Greggs’
1,800 high street outlets.

Greggs sells more than 1

million cups Fairtrade coffee a
week

61
 Corporate Procurement
Our long term aim is to have all timber materials used in the production of
furniture products credibly and ethically sourced from verified well-
managed forests under a Chain of Custody program (FSC or PEFC
certificates). We also encourage the certification of all timber as much as
possible”.

Whilst we move towards full Chain of Custody Certification (COC), we will

engage with suppliers that are already part of FSC, PEFC or V-Legal
schemes, as well as encouraging our existing supplier base to use certified
timbers and COC, so that we can demonstrate our commitment to control.
Dunelm wants to only purchase legally sourced timber. We are actively
moving towards certified materials, and sustainably sourced timber products
as soon as we possibly can.

62
 Financial Services Sector

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.
63
 Financial Services Sector

“Global Businesses must close relationships, as soon as

possible, with Non-Compliant customers, including:

•Customers expelled from FSC or PEFC (including those who

terminate their membership during complaints investigations) or
whose certification is withdrawn

•Customers with major areas of non-compliance under FSC or

PEFC

Forestry Policy 2014

64
 Consumer Research
When purchasing a product or a service, which of the
following criteria reassure you the most that environmental
considerations and sustainable development had been taken
into account?

Label certifying ethical consideration 53%

Country of origin (i.e. made in the UK 35%

The brand 32%

Recommendations of family/friends 27%

Media recommendation (e.g. TV, press, newspaper, etc.) 22%

Don't know 11%

Other 4%

65 Source: PEFC/YouGov Global Consumer Survey 2017

 PEFC included in timber procurement
polices and environmental assessments
Recognised in government
timber procurement policy -
CPET
BREEAM

Supply Chain
Sustainability
School
US Green Building
Council LEED

Recognised in
corporate timber
procurement
policies

Next Generation
67
68
69
70
71
72
73
 Benefits for Your Business
Advantages of PEFC certification & labelling

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

74