FOREST STEWARDSHIP COUNCIL

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1 FOREST STEWARDSHIP COUNCIL Using certification to maintain credibility and create value ForestWood Conference, Auckland 16 March 2016 Adam Beaumont CEO, FSC Australia

2 Today Context 1. Who are we and why do we exist? 2. What do we do? 3. What s makes you credible? 4. Why get certified? 5. How do you get the most out of certification? 1. Growth / Export 2. Competition 3. Bio-economy 4. Traceability 5. Illegal logging 6. Trust

3 Key points: WHO ARE WE & WHY DO WE EXIST? Post RIO 92 Established Chamber Governance In NZ, 4 chamber SDG (Māori) Member led, including NZFOA Mission focused

4 WHO ARE WE & WHY DO WE EXIST? MISSION Forest governance and economic systems in many parts of the world provide greater incentives for deforestation, forest degradation and related social inequities than they do for responsible forest management. Forests For All Forever FSC shall promote environmentally appropriate, socially beneficial, and economically viable management of the world s forests. CORE CHALLENGE! Key points: Global Strategic Plan Clarifies our role Ensure our direction fits current challenges 2050 BEACON A new forest paradigm realized The true value of forests is recognized and fully incorporated into society worldwide Aspiration: Turn the Tide FSC is the leading catalyst and defining force for improved forest management and market transformation, shifting the global forest trend toward sustainable use, conservation, restoration, and respect for all. Objective: 20 BY 2020 The FSC share of global forestbased trade is 20%.

5 WHO ARE WE & WHY DO WE EXIST? Forests For All Forever A new FSC shall promote environmentally appropriate, MISSION paradigm for forests and people socially beneficial, and economically viable FSC envisions a future where the majority management of people of the world s forests. recognise that the health of humanity and the health of forests are deeply and profoundly intertwined.! CORE And they act on this understanding in the way they CHALLENGE conduct their lives. Forest governance and economic systems in many parts of the world provide greater incentives for deforestation, forest degradation and related social inequities than they do for responsible forest management. Key points: 2050 Vision True value of forests recognised Value incorporated into global society 2050 BEACON A new forest paradigm realized The true value of forests is recognized and fully incorporated into society worldwide Aspiration: Turn the Tide FSC is the leading catalyst and defining force for improved forest management and market transformation, shifting the global forest trend toward sustainable use, conservation, restoration, and respect for all. Objective: 20 BY 2020 The FSC share of global forestbased trade is 20%.

6 WHO ARE WE & WHY DO WE EXIST? Forests For All Forever FSC shall promote environmentally appropriate, MISSION socially beneficial, and economically viable Overarching strategic goal: management of the world s forests. Reach 20% of global forest trade by 2020 Forest governance and economic systems in many parts of the world provide greater incentives for deforestation, forest degradation and related social inequities than they do for! CORE The objective will require more than doubling CHALLENGE FSC s market impact in the next five years, achieving it will forever change the relationship between society and forests and serve as a tipping point for moving directly A new forest toward the 2050 Beacon. paradigm realized responsible forest management BEACON The true value of forests is recognized and fully incorporated into society worldwide. Key points: Aim: 20% of global trade by : 8% worlds annual cut is FSC 2015: 17% of roundwood product is FSC Market-based system requires market success Growth whilst maintaining credibility 2020 Aspiration: Turn the Tide FSC is the leading catalyst and defining force for improved forest management and market transformation, shifting the global forest trend toward sustainable use, conservation, restoration, and respect for all. Objective: 20 BY 2020 The FSC share of global forestbased trade is 20%.

7 Key points: Sets forest management standards 10 Principles & Criteria, consistent world wide Stakeholder focused Market based label Independent auditors certify WHAT DO WE DO?

8 WHAT DO WE DO? Key points: 25,000 different products, condoms to coffins 30,000 businesses Certify range of timber products Increasing focus on non-timber products & fibre Moving in ecosystem services

9 Key points: >100 countries 188 million ha 30,000 CoC certificates What do we do?

10 WHAT DO WE DO IN NZ? > million > million >5-25 million >1-5 million 200,000-1,000,000 FSC CoC Certificate Holders (processors) Key points: Chain of Custody Certificate holders 150 certified businesses Concentration in Auckland FSC office in Auckland FSC CoC Certificate Holders (traders) Trader > million Trader > million Trader >1-5 million Trader <200,

11 Key points: Certified Forest Management 19 certified forest managers E.g. Timberlands, Blakely Pacific etc 70% of forests certified amongst highest in the world More certified area NZ then Australia WHAT DO WE DO IN NZ? >250, , ,000 50, ,000 25,000-50,000 5,000-25,000 FSC Certificate Holders (Forest Managers) by area (ha) <5,

12 Key points: Consumers & public trust impacting supply chains Assurance and credibility are linked Credible to who? WHAT S MAKES YOU CREDIBLE? engagement independance ASSURANCE consistency trust audit honesty reliability transparency safety quality verification guaranteed

13 WHAT S MAKES YOU CREDIBLE? Key points: > 550 Labels Product vs process attributes FSC awareness doubled in 2yrs 1 in 5 in NZ 7 to 9 in Europe

14 WHAT S MAKES YOU CREDIBLE? SALE Production / extraction Primary processing Transportation / distribution Secondary processing Retail Use Disposal Public focus Pressure was previously directed at forest product companies

15 WHAT S MAKES YOU CREDIBLE? SALE Production / extraction Primary processing Transportation / distribution Secondary processing Retail Use Disposal Public focus Focus is now on companies to adopt environmental purchasing policies not just consumers

16 Key points: Large retail brands want supply chain assurance Trust comes with transparency and engagement ISEAL members must meet these principles WHAT S MAKES YOU CREDIBLE? ISEAL Credibility Principles Sustainability Improvement Relevance Rigour Engagement Transparency Truthfulness Impartiality Accessibility Efficiency

17 WHAT S MAKES YOU CREDIBLE? Key points: Global research show certification very trusted Company advertising least trusted

18 WHAT S MAKES YOU CREDIBLE? On a product Websites/blogs Word of mouth through friends/family Advertising Social media At work Media Supermarket Catalogues Product reviews At your/your child s school Hardware store In store signs/posters Radio Letters/Envelopes/Bills Some other way Can't remember / not sure Where do you learn about FSC? 7% 5% 5% 5% 4% 3% 3% 2% 1% 1% 1% 0% 0% 0% 4% 23% Key points: 2015 NZ survey 1 in 4 look for a product label Majority understand what FSC is Label the product 39%

19 Key points: 4 in 5 businesses say label adds value Many businesses say customers require it Point of difference in crowded markets Assurance to investors / 3 rd parties WHY GET CERTIFIED? Market access Brand and corporate image 3rd party assurance Market differentiation

20 WHY GET CERTIFIED? Likelihood of consumer to purchase with FSC logo Hygiene products 36% 28% 21% Wooden furniture 36% 26% 21% DIY 38% 26% 21% 11% 13% 11% Total more likely 60% 60% 58% Key points: NZ survey results 3 in 5 more likely to buy with an FSC logo Growing focus by ethical / sustainable shoppers Office/School supplies 39% 26% 22% 10% 57% Printed Materials 41% 27% 20% 9% 56% Packaging 41% 25% 21% 9% 55% 0% 20% 40% 60% 80% 100% Much less likely A little less likely A little more likely Much more likely Less likely Neither more or less likely More likely

21 Key points: 5 countries represent 80% of NZ export China, Australia, Korea, Japan & India Top 5: 20% Global FSC businesses Top 5: 71% Asia FSC businesses Source: Dec 2014 NZ Exports WHY GET CERTIFIED? Country NZ exports into 71% of the Asian FSC market % Asian FSC businesses Asian second fastest growing FSC market in the world % World FSC businesses Average CoC Growth (past 2-years) China % Australia - 1 1% Japan % Korea % India % Total 71% 20% Avg 10% p.a.

22 How do you get the most out of certification? Key points: Use new branding 2013 study shows influence moves from 29% to 54% with new branding 1 in 2 extremely or very influenced by new branding

23 Key points: Use the label to position your brand Use new branding Sell it as a feature, not a benefit How do you get the most out of certification?

24 Forest Stewardship Council FSC New Zealand Cyrielle Durand - c.durand@nz.fsc.org Level 3, Custom Street East 10 Auckland Central 1010 New Zealand nz.fsc.org FSC F FSC A.C. All rights reserved Forest Stewardship Council FSC Australia Adam Beaumont a.beaumont@au.fsc.org Level 1, 458 Swanston Street Carlton, VIC 3053 Australia au.fsc.org 24