FSC Advancing Sustainable Forest Management through Responsible Investing in Financing Mechanisms WWF FAST

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1 FSC Advancing Sustainable Forest Management through Responsible Investing in Financing Mechanisms WWF FAST Roberto Silva Waack FSC Board of Directors FSC, A.C. All rights reserved September 2009

2 A short history Founded in 1993 in the wake of the 1992 UN Conference on Sustainable Development, by concerned business representatives, social groups, and environmental organizations. FSC, A.C. All rights reserved 2

3 FSC an independent, non-governmental not for profit multi-stakeholder organization FSC, A.C. All rights reserved FSC-SECR-0002 Presentation November 24, FSC, A.C. All rights reserved

4 FSC was established to promote environmentally appropriate, socially beneficial and economically viable management of the world's forests FSC, A.C. All rights reserved FSC-SECR-0002 Presentation November 24, FSC, A.C. All rights reserved

5 It does this through Setting standards that reflect agreed principles for responsible forest management An accreditation/certification system that monitors adherence to FSC standards A product labelling system that rewards responsible forest managers. FSC, A.C. All rights reserved 5

6 FSC certification Forest management S/Env/Ec certification FSC P&C Chain of Custody (CoC) traceability FSC, A.C. All rights reserved FSC-SECR-0002 Presentation November 24, FSC, A.C. All rights reserved 6

7 A truly global system North America ha (33.87%) Europe ha (46.05%) Asia ha (2.39%) South America & Caribbean ha (10.12%) Africa ha (6.14%) Oceania ha (1.44%) Data from 15 September 2009 More than 115 million hectares of certified forests in 82 countries FSC, A.C. All rights reserved 7

8 A truly global system more than 800 members from over 80 countries more than FSC certificate holders in the supply chain in 99 countries 18 FSC accredited certification bodies a network of strong partners and supporters around the world! FSC, A.C. All rights reserved 8

9 Demonstrated market strength 2001 Milan Reska 7% of world s productive forest are FSC certified Global market for FSC products tops 20 Billion USD and shows continued signs of growth FSC supply chain is strengthened with a record growth of 40% in 2007 FSC, A.C. All rights reserved 9

10 Forest Stewardship Council March 30, 2009 FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, FSC, A.C. All rights reserved 10

11 Growth of Forest Area - General (ha) 125,000, ,000,000 Hectares 115,000, ,000, ,000, ,000,000 95,000,000 90,000,000 85,000,000 80,000,000 82,237,218 82,606,784 84,899,710 86,120,647 88,093,930 88,776,490 88,967,706 92,695,839 93,559,137 92,442,689 97,207,132 96,729,654 95,919,886 96,675,950 98,101, ,476, ,722, ,279,812 98,519,146 99,622, ,039, ,730, ,969, ,247, ,833, ,809, ,050, ,500, ,374, ,199, ,171, ,376, ,006, ,349,034 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 FSC, A.C. All rights reserved 11 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09

12 Growth of CoC Certificates No. CoC certificates Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 FSC, A.C. All rights reserved 12

13 Certification by biomes FSC, A.C. All rights reserved 13

14 Forest Stewardship Council Brand recognition In 2007, 56% of the Swiss population recognized the FSC label when prompted. Unprompted, i.e. spontaneous recognition reached 21%. The large majority of people (65%) recognized the label from in-store advertising. Source: FSC Switzerland Prompted recognition in the Netherlands rose from 67% in 2007 to 69% in Unprompted recognition is at 21%. The FSC trademark is fourth in a ranking of the Netherlands best-known quality assurance trademarks. In Denmark, there was a level of 33% unprompted label recognition in Source: FSC Netherlands Source: FSC Denmark A survey commissioned by FSC UK in 2009 found that one person in four (24%) has seen the Forest Stewardship Council s tick-tree logo. Once the scheme was explained, 54% of those questioned stated that they would probably choose FSC products in the future. Source: FSC UK FSC, A.C. All rights reserved FSC-SECR-0002 Presentation March 30, FSC, A.C. All rights reserved 14

15 CLASSIC INVESTORS IN FORESTRY Strategic Institutional Forest Stewardship Council FORESTS Planted Forests Development Banks Hedge Funds Private Equity Natural Forests TIMOs Family Offices Individuals FSC, A.C. All rights reserved 15

16 RECENT INVESTORS IN FORESTRY Strategic Institutional Development Banks 1 Forest Stewardship Council FORESTS Planted Forests Hedge Funds Private Equity 2 3 Natural Forests TIMOs Family Offices Individuals 1- If very big, 2 speculative, 3 rarely FSC, A.C. All rights reserved 16

17 WHAT WE SEE NEXT INVESTORS IN FORESTRY Strategic Institutional Forest Stewardship Council FORESTS Planted Forests Development Banks Hedge Funds Private Equity Natural Forests TIMOs Family Offices Individuals FSC, A.C. All rights reserved 17

18 FSC & Finance sector Forest Stewardship Council Risk assessment (knowing risks / taking risks) Risk mitigation (moral and legal liabilities, independent yearly professional audits) Network (multistakeholder insertion) Modeling economics of forestry activities Identification of differentiated forestry players Reputation Traceability Compliance with PRI / SRI, FLEGT, Lacey Act and many public & private procurement policies Transition to new production paradigm (illegal to non predatory) Multiple use of forests (new markets ES, NTFP, clean energy) Enhancement of economic performance (premium price, access to the market, production processes & cost reduction, audits) FSC, A.C. All rights reserved 18

19 Thank you FSC, A.C. All rights reserved 19