THE MARKETPLACE FOR CERTIFIED
FOREST PRODUCTS - RETAILERS SET THE TONE
7 August 1998
The general purpose of certification is the improvement and
documentation of forest management practices. Certification
schemes exist or are being developed in a number of countries in
North America and Europe. Currently, products from a scheme
developed by the Forest Stewardship Council, an international,
non-governmental organization, are visible in several European
marketplaces.
What is a "certified forest product"? It is a forest
product bearing a certificate which demonstrates, in a verifiable
manner, that it comes from a forest which is managed sustainably.
Certification is a way in which consumers and retailers can check
the suppliers of goods. It is also a means for good forest
managers to promote their products.
However defining what exactly is meant by "sustainably
managed," and setting up fair and credible systems to verify
that a product is in fact produced sustainably, poses many
problems and has been the cause of much tension in the forest
sector, at all levels.
A special chapter in this year's Timber Bulletin "Forest Products Annual Market Review" from the UN/ECE
Timber Committee outlines the current state of the marketplace
for certified forest products (see abstract in Annex).
For any further information please contact:
Mr. Ed Pepke
Timber Section
Trade Division
United Nations Economic Commission for Europe
Palais des Nations, Bureau 390
CH - 1211 Geneva 10, Switzerland
Telephone: + 41 22 917 2872
Fax: + 41 22 917 0041
E-Mail: [email protected]
Website: http://www.unece.org/trade/timber
Will certification save our forests?
There are now several active certification schemes in the ECE
region with many others, especially in western Europe, under
development. These schemes are generally designed to improve as
well as document forest management practices. The UN/ECE Timber
Committee is questioning the markets for certified forest
products.
The Forest Stewardship Council (FSC), an environmental,
non-governmental organization associated with the WWF, has
created a performance-based, third-party certification scheme.
This scheme requires processors to assure that they keep
certified and non-certified materials separate. This allows
products to carry an FSC logo or ecolabel that is designed to
communicate to consumers that the product comes from a
well-managed forest. FSC labeled products are becoming evident in
the retail sector in the United Kingdom and they are beginning to
appear in several other European countries.
Some companies and landowners are becoming involved with
certification because they see potential advantages.
Certification can allow them to communicate more credibly with
customers and the general public. They also are able to use
certification to enhance their image with stakeholders. Offering
certified products can provide companies improved access to
markets. Although it has been inconsistent so far, companies can
sometimes get higher prices for certified products.
Final consumers are currently not actively demanding certified
forest products. Rather, demand is originating from retailers and
their suppliers in a few key countries.
Retailers have begun cooperating to form buyers' groups with a
commitment to buy certified forest products whenever possible.
For example, the most established buyers' group, the 1995+ Group,
in the United Kingdom has over 85 members. Participation is
driven by a variety of factors including a corporate ethic of
"doing the right thing", obtaining assistance in
dealing with forestry issues, perceived competitive advantage,
and risk aversion. Retailer associations are also forming in
other countries.
There is also demand for certified products coming from
governments at various levels from local to national. Some
companies operating outside of buyers' groups are also demanding
certified forest products. For example, some high-end retailers
in the U.S. want to have the fixtures in their new stores made
from certified wood.
Although it is clear that there is a niche market for
certified forest products, it is impossible to quantify the
production, trade, and consumption trends due to the absence of
reliable statistics. Though demand appears to be growing,
certified products are still a minor part of the global industry.
Despite the high profile nature of certification, there are a
number of factors that are limiting the growth of the
marketplace. If general consumers become interested in certified
products it could significantly increase demand. However, few
consumers currently know anything about forest certification or
certified products.
Supply is another limiting factor. Those companies that want
to buy certified products often have difficulty finding them.
Some of the companies in the 1995+ Group have a very serious
commitment to buying 100% certified products by the year 2000.
However, it has been very difficult for them to develop the
necessary supply to begin meeting this commitment.
Although certified forest products are still a minor part of
the forest products industry, their impact is important.
Following developments in this marketplace will be critical for
industry and governments alike. In the meantime the Timber
Committee is following the development of the markets for
certified forest products, both the demand and the supply, and
they will be a topic for discussion in their next session on 29
September 1998.