Ein Glück für unseren Wald PEFC certification: Market developments and trends Oslo, 1 June, Jan Mertens Marketing Manager PEFC Germany 1 // 42
Agenda Introduction Development from a macro perspective: Certification at international level Development from a micro perspective: Certification in Germany Trends: Market Drivers Brands & certified products in the market 2 // 56
Introduction Introduction 3 // 56
Introduction What is PEFC? Global, not-for-profit association powered by 46 national forest certification organizations and 29 international stakeholder members World's leading forest certification system, offering the largest choice of sustainably-sourced timber and wood-based products PEFC specifically considers the unique needs of small and family forest owners while being equally used by large landowners as well 4 // 42
Introduction What is PEFC? Global, not-for-profit association powered by 46 national forest certification organizations and 29 international stakeholder members World's leading forest certification system, offering the largest choice of sustainably-sourced timber and wood-based products PEFC specifically considers the unique needs of small and family forest owners while being equally used by large landowners as well 5 // 42
Introduction What is PEFC? Global, not-for-profit association powered by 46 national forest certification organizations and 29 international stakeholder members World's leading forest certification system, offering the largest choice of sustainably-sourced timber and wood-based products PEFC specifically considers the unique needs of small and family forest owners while being used by large landowners as well 6 // 42
Macro Perspective - International Development from a macro perspective: Certification at international level 7 // 42
Macro Perspective - International Global Growth of the PEFC Alliance 1999 2002 2004 2009 2014 2017 As As of December of May 2017 1999 2004 2009 2014 2002 PEFC members with endorsed systems PEFC members progressing towards endorsement Countries actively developing systems 8 8 // 42
Macro Perspective - International Growth of international certified forest area 500,0 450,0 400,0 350,0 300,0 250,0 200,0 FSC PEFC 150,0 100,0 50,0 0,0 In mio. ha 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 curren tly FSC 18 22 25 30 40 50 70 85 95 108 115 134,4 147,8 169,3 190,8 183,1 186,4 192,0 PEFC 0,0 32,4 41,1 46,1 50,9 55,3 187,7 193,8 194,4 217,7 223,5 229,6 245,1 237,4 253,1 263,2 272,0 303,1 9 // 42
Macro Perspective - International Top Ten Certified Forest Area Country Cer;fied Area (ha) Canada 131,113,561 United States 33,252,664 Australia 26,578,998 Finland 16,571,224 Russia 12,039,345 Sweden 11,549,700 Belarus 8,710,234 France 8,206,117 Germany 7,386,453 Norway 7,380,750 10 10 // 42
Macro Perspective - International PEFC Chain of Custody Growth International 12 000 10 000 9529 10 909 10 591 10 744 9996 8797 Number of CoC certificates 8 000 6 000 4 000 2 000 0 59 463 1100 1905 2362 2901 3545 4420 6166 7688 11 Year 11 // 42
Macro Perspective - International PEFC Chain of Custody: Share by Region Central & South America 2 % North America 4 % Asia 9 % Africa Oceania 0 % 2 % 12 Europe 83 % 12 // 42
Micro Perspective - Germany Development from a micro perspective: Certification in Germany 13 // 42
Micro Perspective - Germany PEFC certified forest area in Germany Total Area: Two thirds of the forest area in Germany are PEFC certified, i.e. more than 7.3 million hectares (18 million acres). State Forest: The state forests belonging to the states are entirely PEFC certified. 230,000 Forest Owners: 3,900 private forest holdings, 850 forestry associations and 2,800 communal forests are PEFC certified. 14 // 42
Micro Perspective - Germany PEFC the system for ALL types of forest owners FSC 1,1 3 500 000 3 000 000 only FSC PEFC+FSC PEFC 7,3 2 500 000 only PEFC Hectares 2 000 000 1 500 000 1 000 000 500 000 0 State Forests Communal Private Forests Forests only FSC 40 483 181 316 15 636 PEFC+FSC 810 398 28 713 0 only PEFC 2 459 116 1 217 534 2 804 083 15 // 42
Micro Perspective - Germany PEFC Chain of Custody Growth Germany PEFC-CoC-certified companies in Germany 2187 2341 2000 1776 1953 1962 2012 Number of CoC certificates 1500 1000 525 637 683 778 1029 1305 1537 500 374 0 172 19 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Year 16 16 // 42
Micro Perspective - Germany PEFC & FSC Chain of Custody Ratio Germany 5000 4500 4000 3500 Number of CoC certificates 3000 2500 2000 1500 1000 500 FSC PEFC 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 FSC 1887 2030 2140 2183 2208 PEFC 19 172 374 525 637 683 778 1029 1305 1537 1776 1953 1962 2012 2187 2341 Year 17 17 // 42
Micro Perspective - Germany Expenses 2016 PEFC Germany (plan) PEFCC 17 % Staff 31 % Other 14 % 95 203 350 000 662 000 302 000 508 000 On-Site-Audits 24 % PR & Marketing 14 % On-Site-Audits PR Staff PEFCC Administration Forests Reports Reg. Working Groups Contractors Rent Meetings Others = 2.074.000 Staff: 5 colleagues in the office 1 accountant 7 regional assistants 18 // 42
Trends Trends: Market Drivers 19 // 42
Trends Market drivers for certification Legislation Consumers Public procurement Finance Private commitments Private procurement 20 // 42
Trends Who drives demand? 8 billion Consumers 300-500 companies (70% of trade) Millions of Forest Value Chain Actors 21 21 // 42
Trends Corporate Drivers Associations Consumer Goods Forum one of the largest global industry networks, is pledging to achieve zero net deforestation by 2020. World Business Council for Sustainable Development A CEO-led organization made up of some of the world s leading corporations, encouraging full utilization of existing forest certification systems, such as PEFC, throughout the forest products value chain Banking Environment Initiative Commitment for banks to raise the standards they expect of certain clients in high risk geographies. Signatories include: Barclays, BNY Mellon, China Construction Bank, Deutsche Bank, Lloyds Banking Group, Nomura, Northern Trust, Santander and more. 22 // 42
Trends Consumers: Certification labels communicate trust What reassures you most that environmental considera;ons have been taken into account? Label cer?fying ethical considera?ons Country of origin ("Made in ") Brand Recommenda?ons of family/ friends Media recommenda?on - TV, press, newspaper 30 % 24 % 17 % 16 % 54 % Source: PEFC/GfK Global Consumer Survey (Nov 2014) 23 // 42
Trends Certification labels: recognition & trust of global consumers Would you prefer companies to label products? 4 % 15 % 81 % Yes No Don't know Mean Value PEFC (ASF / CERFLOR / CFCC / SFI) is a label I can trust 15 23 49 7 6 3,4 5 - I strongly agree 4 3 2 FSC 14 24 49 7 6 1 - I strongly disagree 3,3 is a label I can trust Source: PEFC/GfK Global Consumer Survey (Nov 2014) 24 // 42
Trends Brand awareness among consumers Germany Do you know this label? By the name or have you ever seen it? GfK-Survey 2014, 1.000 German ci?zens over 18 yrs old 25 // 42
Trends Brand awareness among consumers Germany Do you know this label? By the name or have you ever seen it? 26 // 42
Trends PEFC performs well in independent reviews WWF Certification Assessment Tool (CAT) forest certification systems assessment against WWF mission and objectives Standard Strength : PEFC appreciates that WWF finds its forest management standards closely aligned with WWF priorities (PEFC: 70%, FSC: 76%) UK Public Procurement CPET Compliance scores: PEFC: 96%, FSC: 94% Dutch Public Procurement TPAC Top scores on SFM, CoC 27 27 // 42
Trends Public Procurement Policy Federal Gov. The German Federal Government supports the certification of sustainably managed forests and will continue to use only wood from certified stands in its procurement measures: Wood products procured by the federal administration must demonstrably come from legal and sustainable forest management. The bidder must furnish proof of this by presenting a certificate of FSC or PEFC, a comparable certificate or by producing individual specifications. Comparable certificates or individual specifications are accepted if the bidder can prove that the criteria of FSC or PEFC that apply to the respective country of origin have been met. (January 2007) 28 // 42
Trends German Public Procurement Policy State Gov. 29 // 42
Trends Federal Ministry for Building and Consumer Protection Assessment System for Sustainable Building 30 // 42
Trends Third party influencers 31 // 42
Brands & Products Brands & certified products in the market 32 // 42
Brands & Products 33 // 42
Brands & Products 34 // 42
Brands & Products Office paper 35 // 44
Brands & Products Laminate flooring 36 // 44
Brands & Products Food: Coffee filters 37 // 44
Brands & Products Packaging: Bakery bags 38 // 44
Brands & Products Packaging: Pizza Hut cups 39 // 44
Brands & Products Packaging: tea bags 40 // 44
Brands & Products Packaging: Coca Cola cans 41 // 44
Brands & Products Packaging: Krombacher beer bottles 42 // 44
Brands & Products Packaging: cigarettes 43 // 44
For more info: www.pefc.de Thank you very much for your attention! 44 // 42