Preferential PurchasePolicies

Tim Gray

The technical preparation of this document has been theresponsibility of the World Wildlife Fund (WWF CentralAmerica), with financial and technical support from:

• The Forestry Management and CommunityCertification Project of WWF Bolivia with fundsfrom the Swedish International DevelopmentAuthority (SIDA).

• The World Bank / WWF Alliance for ForestConservation and Sustainable Use.

• Nature for Life Foundation (NPV).• The Protected Areas and Green Markets

Component (APM) of the Regional EnvironmentalProgram for Central America (PROARCA). This isa project of the Central American Commission forEnvironment and Development (CCAD), financedby the United States Agency for InternationalDevelopment (USAID), and executed by The NatureConservancy (TNC), World Wildlife Fund and theRainforest Alliance (RA).

The proposals and ideas presented are not necessarily those of thesponsoring institutions, nor do they represent their official policies.

This publication is possible, in part, due to the support from the RegionalOffice for Sustainable Development, Latin America and CaribbeanDivision of the United States Agency for International Development(USAID) and The Nature Conservancy, under the terms of DonationAgreement No. 596-A-00-01-00116-00. The opinions expressed here arethose of the authors and do not necessarily reflect the viewpoint of USAID.

The denominations used in this publication and the way in which thepresented data appear do not imply, on behalf of the sponsoringinstitutions, any judgment about the legal status of the nations, territories,cities, or zones, or of their authorities, or of the delimitation of theirboundaries or limits. Similarly, the material and the geographicalreferences in this report do not imply the expression of any opinion aboutthe legal status of any nation, territory or area, or of anything concerningthe delimitation of their boundaries or limits.

This publication is part ofWWF Central America’s workto increase demand forcertified forest products in theCentral American region.

Production:Cinthya Flores y Laura SequeiraCommunications DepartmentWWF Central AmericaWorld Wildlife FundPhone: +506 234 8434Fax: +506 253 4927Email: info@wwfca.orgP.O. box: 629-2350 San Francisco de Dos Ríos, Costa RicaWebsite: www.wwfca.org

Design and illustrations: Rafael Esquivel Salgado

Editor:Elizabeth Mora

Photos:Cinthya FloresEzequiel BecerraGreenwood/Madera VerdeManuel EsquivelRSA Design GroupScott LandisJanja Eke

Printing:© 2004 WWF Central AmericaAll rights reserved.ISBN number 9968-825-10-7

As a contribution to nature conserva-tion, WWF Central America has select-ed for this publication Kimberly paperwhich is chlorine- free, and has 35 %of ecological paper,15 % of fiber postconsumer and 25% of cotton.

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CONTENTS

About PROARCA/APM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Presentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

1. Project Rationale and Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

2. Summary of Project Results . . . . . . . . . . . . . . . . . . . . . . . . . . .10

3. Project Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123.1 Identification of Markets for Certified Wood Products

from Central America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123.2 FSC Certified Producers Action Plan . . . . . . . . . . . . . . . . . . . . . . . . . .123.3 Review of Private Sector Purchase Policies . . . . . . . . . . . . . . . . . . . . .183.4 Review of Government Purchase Policies . . . . . . . . . . . . . . . . . . . . . .23

4. Partner Identification in the Hotel Industry . . . . . . . . .284.1 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .284.2 Hotel Action Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .344.3 Hotels Chain Profiles and Opportunities . . . . . . . . . . . . . . . . . . . . . . .364.4 Best Bets and Next Steps with the Hotel Industry . . . . . . . . . . . . . . .43

5. Partner Identification in Government . . . . . . . . . . . . . . . .455.1 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .455.2 Action Plan for Working with Government . . . . . . . . . . . . . . . . . . . . .50

5.2.1 Central Purchase Preference Policy . . . . . . . . . . . . . . . . . . . . . .505.2.2 Certification for Sustainable Tourism Program . . . . . . . . . . . . .51

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52A) Review Committee Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52B) Author Biography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54C) Hotels Certified by the Certification for Sustainable

Tourism Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55D) Explanatory notes and bibliographical references . . . . . . . . . . . . . . . .57

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PROARCA/APM is a five-year initiative of the CCAD supported by theUnited States Agency for International Development (USAID) andexecuted by TNC, WWF and the Rainforest Alliance. Its objective is tocontribute to improving management in the Mesoamerican BiologicalCorridor (CBM), and it focuses on two components:

Intermediate Result 1 (IR1): Improvement of administration andmanagement in protected areas. This is comprised of three fields ofaction.

1) The development of effective alliances for administration andmanagement in protected areas (legal framework, strengtheningof governments, NGOs, and communities).

2) Improvement of financial administration and management inprotected areas (planning and increasing investment).

3) The application of best management practices (ecoregionalplanning, effectiveness in management and biologicalmonitoring).

Intermediate Result 2 (IR2): Green marketing of“environmentally friendly” products and services. This consists ofthe following fields of action: forestry, agriculture, sustainable tourism andcoastal and marine products. It contains two sub-components:

1) Increase in the availability of certified products (outreach and anincrease in regional capacities).

2) Effective alliances for the marketing of certified products andservices (dissemination of information about supply and demand,methodologies for certification, and accreditation systems).

The project focuses on four areas considered to be key functionallandscapes within the MBC that are prioritized under the CentralAmerican Convention on Biodiversity:

Gulf of Honduras (Belize, Guatemala, Honduras)Gulf of Fonseca (El Salvador, Honduras, Nicaragua)The Mosquitia (Honduras and Nicaragua)Amistad-Cahuita-Río Cañas (Costa Rica, Panama)

The tasks developed by PROARCA/APM in the functional landscapes willserve as cases for systematically documenting methods and experiencesand, in this way, contribute to the development of regional policies.

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PRESENTATION

This document was prepared with broad participation from variousentrepreneurs dedicated to the production of wood products certified bythe FSC and the Costa Rican tourism sector. Their experiences andvisions helped to determine where we should direct our efforts onincreasing demand for certified forestry products in Costa Rica. The localsituation was analyzed using global experiences in the development ofPreferential Purchase Policies (PPP) as practical tools for awakening theinterest of independent, voluntary consumers in the realm of forestrycertification.

Although there are quantitative data on the tangible impacts of PPP(e.g. increase in sales and volume used), the impression is that they arepowerful mechanisms that not only demonstrate the commitment of agovernment or a business with sustainable production systems, but theystimulate the producers that have adopted these systems as a marketingstrategy. And, even though many people doubt that changes can bemade in consumer preferences, in Central America it is already beingshown that the establishment and implementation of PPP can havesubstantial influence.

To date, the following Costa Rican companies have signed on asPPP volunteers: 1) Constructora JIREH, S.A., 2) Grupo de Diseño yArquitectura RSA, Costa Rica, 3) Asociación microempresarios Turísticosdel Gran Área Metropolitana (AMIGAM), along with four Nicaraguancompanies: 1) Hotel Holiday Inn Managua, 2) Exchange, S.A., 3) EcoForestal Desarrollo and 4) Muebles Lolo Morales. It is hoped that thiscontribution from Mr. Tim Gray will help expand the use of PPP in theCosta Rican government, the tourism/hotelier sector of Costa Rica, andin other sectors in the Central American region. WWF Central America iscommitted to the implementation of PPP in the entire region as apragmatic conservation strategy that will link those who protect the forestwith the consumers of their products.

Steve GretzingerForest Director

WWF Central America

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PROJECT RATIONALE AND GOALS

At a global scale, independent forest certification has emerged as apreferred mechanism to conserve biodiversity, and encourage socialand economic development. The concept holds the promise ofbeing able to harness the power of the free market to encouragethe conservation, rather than destruction, of large areas ofEarth’s forests. In terms of global acceptance by varied producersas applied to diverse forest types, the leading organization in thiseffort is the Forest Stewardship Council (FSC).1

The success of the FSC at increasing the area of forestcertified under its sustainable management regime is impressiveand continues to increase.2 However, there is a growing concernthat market-place demand for certified wood products is notkeeping pace with the supply that has become available fromcertified lands. This reality discourages existing certifiedproducers and makes it more difficult to demonstrate tangiblemarket benefits to prospective participants. It is felt by manythat this lack of demand threatens the long-term viability of theFSC program in many parts of the world.3

There is a growing global effort to address this demandshortfall. Conservation groups and trade organizations areencouraging corporations and governments to establish woodpurchase preference policies (PPPs) that favor the use of certifiedwood products in purchasing/bid-filling decisions. Organizationssuch as Metafore (previously known as the Certified ForestProducts Council), the Global Forest and Trade Network (GFTN)and the World Wide Fund for Nature (WWF) have beeninstrumental in moving these initiatives forward. There has beensome success and experience in developing and implementing PPPsin North America and Europe, however, there is less experience todate in Central America.

The Mesoamerican and Caribbean Wood Group (Jagwood+)has recently been formed with support by WWF Central America.

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Condominios Los Sueños, Guanacaste, Costa Rica.

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This network is designed to serve the needs of the producers thatoperate on over 700,000 hectares that have been certified toindependently verified standards throughout the region. Part of thenetwork’s planned activities is to link these producers withdomestic and international consumers of certified wood.

The idea for this project evolved from recent discussionsbetween regional certified producers and WWF Central Americastaff that revealed that there are less than optimal sales of certifiedwood products to international and domestic markets. Twoopportunities to address this problem appeared to be present inCosta Rica.

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The first was the recent (Spring 2002) central governmentdecree favoring the purchase of certified wood products for allgovernment projects. The other was recognition that the size andgrowth of the Costa Rican hotel industry made it a possiblecandidate for the development of PPPs favoring certified woodproducts. To further explore the barriers to sales and opportunitiesfor improvement the following project goals were developed.

1- Examine existing markets for Central American certifiedproducers and determine the most effective opportunities toincrease demand domestically and internationally.

2- Evaluate the experience of other jurisdictions inimplementing private and public sector purchase preferencepolicies for certified wood products.

3- Identify the ‘best bets’ for establishing purchase preferencepolicies within the Costa Rican hotel industry andgovernment.

4- Develop an Action Plan for each of the sectors movingforward.

This report presents the results of these efforts and includessome details of other opportunities that were identified throughresearch. Considerable detail has been included in the text andappendices in expectation that this document will be used to informthe work of the program as it moves forward.

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SUMMARY OF PROJECT RESULTS

The results obtained from this project confirm that there is a needto increase domestic markets for certified wood products and thatthere are significant opportunities to establish certified wood PPPswithin the Costa Rican hotel industry and government. Theseinclude:

• An immediate opportunity to create a purchase policy with aboutique hotel organization;

• An immediate opportunity to develop certified woodpurchase policies with wooden souvenir retailers;

• An opportunity to link and/or integrate a purchase policyprogram into the existing government-supportedCertification for Sustainable Tourism Program;

• An opportunity to involve certified wood products in thebuilding of a high profile biodiversity museum in Panama.

In addition, other results outline a longer-term strategy forWWF and Jagwood+ members to engage other members of thehotel industry, government and other possible partners. Theseelements include:

• A summary of strategic advice for certified Central Americanwood producers wishing to expand their markets;

• Identification of key actions to help link potential domesticpurchasers with certified suppliers;

• Identification of the key components of successful privatesector purchase preference policies;

• Details and key findings of a survey of nineteen GlobalForest and Trade Network member groups regardingimplementation of government purchase preference policies;

• Action Plans for developing purchase preference policieswithin the hotel industry and government.

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The ability to take advantage of the opportunities identified inthis report will require that WWF or Jagwood+ employ a newdedicated staff person. This person should be familiar withindependent forest and wood product certification, the hotelindustry and the Costa Rican governmental system. A term of sixmonths would provide for the achievement of significant resultsfrom immediate opportunities.

Furniture made by Exchange S.A., available at “Simply Wood”. Store inNicaragua.

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PROJECT BACKGROUND

3.1 Identification of Markets for Certified Wood Products fromCentral America

One of the key questions for any of the Costa Rican (and CentralAmerican) certified producers is where to best target the sale oftheir wood products. North America and Europe loom large withtheir huge markets and voracious demand for all types of woodproducts, making them seem like the logical choice (the UnitedStates in particular is the largest consumer of wood products onEarth).4 However, does the raw size of these markets alone meanthat all certified producers should seek to deliver their products intothem? The answer, it seems, is “it depends”.

Several Central American companies have had considerablesuccess selling to U.S. consumers. Portico, the Costa Rican-based,Canadian-owned door manufacturer, sells all of its production intothe U.S. market,5 and PanAmerican Woods, a Costa Ricanmanufacturer of hardwood floors and other products has soldsignificant quantities of its FSC certified flooring to Home Depot aswell as B & Q in England.6 PanAmerican Woods has been verysuccessful in securing offshore customers and currently 90 to 95%of their production is being shipped out of Costa Rica.7 However,many people who have worked with domestic producers in CentralAmerica point out that there are significant hurdles to overcome toreach the European and North American markets, and in fact thesemay not be the best places for some domestic companies to seek toplace their products.

Challenges faced in exporting Central American woodproducts into U.S. markets include.8

• Unfamiliarity of the U.S. consumer with the tree speciesand/or physical properties of the product being offered;

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• Competition within a market that already has a large degreeof product choice;

• The wood product (especially commodity products likedimensional lumber) needs to meet U.S. grading andengineering standards;

• Quality (including low defect rates and adequacy to kiln-drying) needs to be high and consistent;

• Delivery schedules must be consistently met (these can beimpaired by long shipping distances);

• U.S. customer expectation to pay for goods after delivery on30 to 90 day credit, rather than through the Letter of Creditformat widely preferred in Latin America;

• Any products entering a commodity-goods market (such asdimensional lumber) will have their price determined by thatmarket; cost-recovery is not part of pricing. Goods, therefore,may obtain a lower price than can be obtained in LatinAmerica;

• Export taxes.

These challenges will also be encountered in the Europeanmarket, with the following additions9:

• Europe lacks common building codes and standards, so theengineering and standards requirements of the U.S. marketare compounded by the number of countries you wish to sellto; and

• Shipping times from Central America can be long, causingunacceptable product delivery delays.

Furthermore, other non-export related problems common tomany forest companies in Central America include securing thedomestic or international financing necessary for plant upgrades;developing and introducing new product lines or species; and/ordemonstrating the utility of these species in new applications.

Given these challenges, it is not surprising that some CentralAmerican companies have run into problems securing sales ininternational markets. Once companies have secured initial sales,they do not always have the experience and the resourcesnecessary to maintain the required business relationships. Forexample, several Costa Rican producers of products ranging fromfurniture to flooring have secured initial U.S. orders, only to lose

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these customers when quality, business-to-business relations ordelivery schedules could not be maintained.10 This can be attributedto limited marketing, sales, and production oversight capacitywithin many Central American companies.11

It has also been observed by many producers that acquiringcertification in itself does not secure sales. This view is reinforcedby those who have studied the development of certified woodmarkets at an international scale.12 They concur that certificationcan confer a competitive advantage, but only if these other businessattributes are successfully addressed, as well.

Opportunities to receive higher than the standard market pricefor similar uncertified products also vary. A study of producers andprocessors completed for FSC International in 2001 found that50.4% of respondents report receiving price premiums for certifiedproducts at least some of the time. Reports of higher prices for FSCcertified material were more common from participants located

Noah Landis on a “Green Wood” chair at a restaurant on Roatan, Honduras.

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higher up the processing chain (i.e. retailers and secondarymanufacturers that sell directly to the consumer). It appears thatvery few forest owners and managers are receiving a premium,whereas many processors and retailers are.13 Conversely, it hasbeen reported that large customers such as Home Depot do not nowgenerally pay a preferential price but did so when they firstdeveloped their PPPs for certain product lines when the supply ofcertified wood products was limited. When higher, more attractiveprices are not paid for a certified product; independent certificationloses its attraction, since it forces the producer to absorb alladditional costs associated with the certification process.

The general belief expressed by experienced observers toproducers of tropical wood products is that they should not expecta higher price for independently certified products to persist (or toappear), but rather to become the price of entry into the growingcertification market14. In fact, many of the Central Americanproducers that have obtained FSC certification15 have been motivatedby the knowledge that their ability to enter the current NorthAmerican and European market could be hampered if they lackedFSC certification.16 The conclusion that can be drawn is that all ofthe obstacles to exporting certified wood products are the same asthose for uncertified products, and thus action plans to obtain accessto these markets must contain FSC certification as only one of thenecessary activities.

Strategies for overcoming some of these obstacles to exporthave been identified by the Latin American Center forCompetitiveness and Sustainable Development (CIMS). Researchby this organization has shown that the following actions can helpprepare Central American companies for increasing sales into U.S.or European markets.

• Focus on consistently producing a high-quality product;• Avoid entering into “commodities” markets unless your

company is capable of consistently producing high volumesof product with a very low cost structure;

• Educate the local financial sector regarding the requirementfor longer periods to actualize return on investment in thewood industry;

• Differentiate your product from others and “add value”;• Develop special markets;

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• Learn more about your customer and potential markets;• Become independently certified; and• Develop local markets.17

For Central American certified companies there are someobvious advantages to seeking domestic or regional markets whilesimultaneously addressing requirements for export. Theseadvantages include low shipping costs, higher domestic prices forcommodity-type products, and familiar business-to-businessrelationships (including similar expectations regarding creditarrangements). This is likely to be largely true for most of LatinAmerica, and in countries like Brazil the very large domesticdemand for wood significantly reduces the need to immediatelyseek export markets.

Research and interviews indicate that the majority of CostaRican FSC certified producers currently are selling most, or all, oftheir production in these local markets (Portico and PanAmericanbeing notable exceptions). Consumers include furnituremanufacturers (at least one of which is currently exporting high-end specialty products to the U.S.)18, and construction firms. Theseconstruction firms are involved in the full range of projects that arecurrently underway in Costa Rica. These include, for example,remodeling of the Volvo sales office in San José, a new hotel inPunta Leona (near Jacó), renovations to Barceló’s Los Delfineshotel,19 and Marriott’s Los Sueños facility.

By all reports obtained to date, the FSC certified producers inCosta Rica are not obtaining higher prices for domestic sales, norare they getting preferential access to customers that areunavailable to their uncertified competitors. In fact, there appearsto be a complete lack of market demand for certified productswithin Costa Rica at the present time, and even where certifiedwood is being used, no profile is afforded to it.20

This situation is best illustrated by an example. MaderasCultivadas de Costa Rica (MCC) sold FSC certified wood to doorand cabinet makers involved in the building of Marriott’s LosSueños Hotel project, near Jacó. However, these companies did nothave FSC Chain of Custody certification and the hotel did notrequest the use of certified wood. As a result no profile was givento the fact that a significant component of this hotel contains FSCcertified wood.21

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There have been some reports that some manufacturers such asfurniture makers would use the FSC label but the price of an FSCChain of Custody authorization is too high. Prices for thisauthorization in Central America vary between one and fivethousand U.S. dollars depending on the size and the complexity ofthe company.22 While significant, these fees do not seem to beextraordinary, and it can be reasonably expected that they would bewillingly paid if the manufacturer believed that they would bringsome sales advantage that would be commensurate. The lack ofChain of Custody manufacturers and the general lack of demand forthe FSC label at the producer level have also been reported fromSouth American countries.23

In summary, some Central American certified producers aremaking significant export sales while others are making efforts toovercome some of the obstacles that they have experienced to date.However, evidence suggests that significant sales advantages forexisting certified producers could be obtained by developingdomestic and regional demand. Section 4.0 identifies likely targetsfor such development.

3.2 FSC Certified Producers Action Plan

As efforts are made to increase the domestic demand forindependently certified wood, it will be necessary to enhance theinformation currently available concerning the several aspects ofthe certified wood supply within Costa Rica and throughout the restof Central America. Having this information available will help tofacilitate development and implementation of PPPs becauseWWF/Jagwood+ will be able to quickly match wood needs withexisting or potential supply. Gathering this information will requirethe cooperation of existing certified producers and it is likely thatsome protocol concerning the privacy of this information may berequired as it will likely be considered confidential. Thisinformation should include:

• Names and locations of current domestic retailers andwholesalers of independently certified wood.

• Volumes available by species and product type through thesesources and at different times (i.e. seasonal or annual avail-ability).

• Names of secondary manufactures (such as furniture companies,cabinet and trim makers etc.) who are currently buying certified

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wood but do not have Chain of Custody certification.• Range of products that these companies are currently and/or

capable of producing.• Volumes and species of certified woods being sold to these

secondary manufactures.

3.3 Review of Private Sector Purchase Policies

The Global Forest and Trade Network (GFTN) lists nineteenexisting or developing national or multinational forest and tradenetworks (FTNs). These include the newly formed Jagwood+which operates in Central America and the Caribbean. The originand early evolution of these networks were as small groups ofleading consumers (chiefly retailers) committed to the purchase ofindependently certified products as they became available to themarketplace. Later in the 1990s public controversies over loggingin threatened forests and pressure campaigns by environmentalnon-governmental organizations (ENGOs) led to increasednumbers of large retailers making public commitments to purchasewood from certified well-managed forests.

These groups continue to grow and expand their focus toinclude producers as well as consumers, now counting over 700companies as members. In the case of North America, thisevolution has gone one step further, and certified forest productproducers have now formed their own industry association as theCertified Wood and Paper Association. For wood consumingcompanies, PPPs formalize commitments to purchase certifiedproducts. These policies usually specify a preference for thepurchase of certified wood as it becomes available (often in astepwise fashion, by a particular date, and by within in particularprice-difference window).

A broad spectrum of large companies has adopted PPPs. InNorth America these include clothing retailer GAP, office supplygiant Staples, coffee chain Starbucks, Canadian hardware and lumberretailer Revy, and home building supplies retail giant Home Depot.24

The exact content of the PPPs used by these companies varies widely,from short public statements of preference for sustainable wood, tocomplex internal programs to ensure progress.

A particularly evolved example of this process exists at IKEA,the large Scandinavian wood furniture firm. The global home

Certified wood can be applied for multiple purposes in construction.

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furnishings retailer has developed a four-step “staircase” process thatit applies to all of its suppliers of products containing wood. Whensigning on as a supplier, the company must have in place an actionplan to reach level two and must be able to assure that its wood doesnot come from intact natural forests, or forests with high conservationvalues, unless these are independently verified as coming from well-managed forests (i.e. level four standard). Currently, only the FSCprotocol is considered to meet the standard of level four.25

At level two, the supplier must comply with “The IKEA Way ofPurchasing Home Furnishing Products” (this policy manual dealswith labor, environmental and legal standards), as well as withquality assurance protocols, and be able to show it is using an“acceptable solid wood source”.

Such a source must meet the following criteria: known origin,including region within country; compliance with domestic forestlegislation; not be sourced from a protected area unless it meets thelevel four standard or has been harvested in compliance with themanagement plan of the protected area; not be from plantationsestablished after November 1994 that have replaced natural forests;high value tropical tree species (e.g., teak, meranti, rosewood andmahagony) must be certified to a level four standard.

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Level three is called “4Wood” and refers to an IKEA authoredstandard for the region from which the wood originates. Its purposeis to promote the transition from the minimal requirements of thesecond level to sourcing from verified well-managed forests inlevel four. Level four is reached when the supplier is using FSCcertified wood products.

IKEA provides no time frames for moving through the steps,however, saying only that “IKEA will continuously monitor andevaluate the progress for the suppliers in the staircase mode26”. Ithas also taken on a considerable responsibility for actual standardsdevelopment (for level three) and is now in the process of hiring asignificant complement of forestry staff (nine were on-boardglobally at the end of 2000).27

An interesting example of successful purchase policydevelopment can be found at Home Depot. At this key company,the decision to adopt a PPP was made at the highest level ofmanagement (rather than by public relations staff as has occurred atsome companies).

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Ongoing leadership for program development was provided bykey staff who believed in the importance and utility of the program.Their work included the development of clear policies for companybuyers, including an internal rewards and feedback program toencourage success.28 Home Depot also reports its progress internallyby region and rewards merchants who increase their purchase ofcertified wood. This approach has been credited with creating andmotivating competition among merchants29.

The value of certified wood sales at Home Depot is perhaps thebest measure of success to date. US$15 million worth of productswere sold in 1999, the first year of policy implementation, and thisnumber jumped to $250 million by the end of 2002, making HomeDepot the largest retailer of FSC products in the United States.30

Norm Thompson Outfitters, a successful Oregon-basedAmerican outdoor apparel company, provide another interestingapproach from a different sector. They have used The Natural Stepframework31 as a template for their policy and have developed aprogram they call the “Sustainability Tool Kit Scorecard”. Thistoolkit is used in staff training, performance evaluation, productdevelopment and merchandizing. It also provides a method forassessing the overall sustainability of product lines.

The sustainability assessment is done using a scorecard thatassigns positive values to increasing levels of sustainability, andnegative points for products sourced or manufactured in a mannerthat harms the environment32. 2002 marked the first year wherebuyers were given the goal of improving their sustainability scoreby 10%. Their ability to meet this goal counts for 10 percent of theemployee's performance review (the remaining 90% is based ondemand, margin, and contribution)33.

However, despite its innovative nature the effectiveness of thisprogram at increasing purchase of certified products has been quitelimited. This is because while Norm Thompson carries some hardgoods made with wood, for the most part they sell finished goodsbought out of inventory. As a result Norm Thompson has indicateda need to pursue a longer-term strategy with existing vendors and aneed to keep finding new vendors who can develop products usingindependently certified sources.

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Conversely, purchase policies that are developed only with aneye to assuaging critics are often less than successful. Such policiesare often developed as a defensive tactic and have not given carefulthought toward what resources will be necessary for the policy to beeffective within the organization. It is worth noting that to determinethe scale of the success of large high profile firms one must go beyondtheir simply-worded public policy statements.34 This is because thesestatements themselves do not reveal the effectiveness of the internalimplementation program that they have developed.

Similarly, the lack of progress of lagging companies cannot beascertained from their public policy statements as these often readquite similar to those that have been implemented successfully. Nocomprehensive review of the effectiveness of PPPs has beencompleted.35 However, it is widely acknowledged by FTNparticipants that the wording of the policy is not the criticaldeterminant of whether a company successfully moves to purchaseFSC products. Instead, the factors that have been identified as key tosuccess are:

• A company must want to show leadership within its sector;• An individual or a small group of people within the company

must believe in the program (i.e., the program is not adefensive response to public pressure);

• An FTN (and/or consulting organization) works with thesekey people to design a program that will motivate staff withinthe company and lead to successful implementation; and

• The company provides the fiscal and staff resourcesnecessary to ensure that the program receives adequateattention and is integrated into corporate culture.

Recognition of these facts has lead the Belgian Forest andTrade Network to require that companies seeking to join thenetwork have developed programs to ensure ongoing improvementin their use of certified products. A multipoint “Action Plan” mustbe completed by applicant companies, and their answers determinetheir eligibility for acceptance to the network.36 Given what hasbeen learned working with companies in other jurisdictions, thisapproach clearly merits consideration by the Mesoamerican Forestand Trade Network.

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3.4 Review of Government Purchase Policies

Governments have also developed policies for preferential purchaseof certified wood products. The Costa Rican government has joinedthis effort through the recent passage of an executive decree thatfavors purchase of certified wood by the government and itsagencies.38 One of the goals of this project was to determine themost effective method to aid implementation of this decree. In orderto be most successful in this effort, a review of experiences in otherjurisdictions was undertaken. A multi-question survey wasdeveloped and sent to all nineteen operating GFTN member groups.This questionnaire sought to determine:

• The presence or absence of certified-wood-favoringgovernment purchase preference policies at the federal, stateand municipal levels;

• How many of these policies specifically favored FSCcertification;

• How long the purchase preference policies had been in effect;• What were the incentives that supported adoption of these

policies;• Have the policies been effective, and why (or why not); and;• Where purchase preference policies have been effective, to

gather information regarding the volume and/or value ofwood sold to date.

Twelve of the nineteen GFTN member groups responded to thequestionnaire. Highlights include:

• 11 report government purchase preference policies that favorpurchase of “sustainable wood” at one of the federal, state orlocal levels. An additional one reported that a federal policyis currently under development.

• 8 report policies at the municipal, 3 at the state and 3 at thefederal levels (Note that some FTNs reported policies atmultiple levels).

• 4 report purchase preference policies that specifically refer tothe FSC.

Key findings are provided in Table 1.

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Country Government purchase policies in effect? FSC specific?

Local, state or federal? How long in effect?

Great Britain Yes, federal but does not specify FSC.

Federal and some local. Federal since July 2000

Switzerland Yes, federal but does not specify FSC.

Some towns now have them. FTN now working to get three largest municipalities to adopt FSC policies.

1998

France Yes, local but not federal and not FSC specific.

Locals specify against tropical timber, not FSC specific.

Japan Yes, federal "Green purchasing law" but not FSC specific.

Federal and local governments now trying to develop implementation policies for range of products, not just wood. No mention of FSC.

2001

United States Yes. Municipal and state, no federal. Approx 2001 for most

Mesoamerican (Costa Rica)

Yes, central executive decree.

Orders all central gov’t departments and institutions to give purchase preference to wood certified by FSC and/or gov’t certification scheme.

Spring 2002

China (Hong Kong)

Yes, local Hong Kong but no FSC reference.

Existing are policies that ban tropical hardwoods and favor softwoods and plantations.

Unknown

Germany Yes and FSC specific. State, not federal. Since September 2002

Sweden Not yet. None yet in place

Australia Approx. 5 yearsYes, but not FSC specific. Local communities and federal government is considering it.

Yes. Small number of local authorities. 1 or 2 yearsSpain

Denmark Yes, local. Federal is under development.

Federally developed "tropical wood procurement guide" to be used by all public and public funded organizations. FSC will preferred source (gold star), other cert. systems lower and still-to-be-defined illegal as a "no-buy". Copenhagen is already ahead of federal initiative.

Spring 2003

A Committee for Ecologically Sustainable Procurement was appointed by the Swedish Government for the period 1998 to 2001. The Committee promoted public procurement as a means of achieving ecologically sustainable development. The Committee also drafted a model for developing procurement policies for both the local and state level.

Table 1.

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Country Why adopted?, who provided incentive?

Has it been effective? If so why, if not why not?

Value of FSC products purchased under the policy?

High profile ENGO pressure and free ENGO advice at local level.

ENGO pressure and US regulations.

ENGO pressure.

unknown.

ENGO pressure and the "green building" movement through the LEED program.

ENGO pressure and commitment of central Minister.

WWF Hong Kong now trying to promote move to FSC certified use of all timber types. Gov’t receptive but there is lack of Chinese FSC supply.

High profile ENGO pressure and publicity about unethical tropical timber harvest.

Political commitment of newly elected State government.

ENGO pressure, most PPP tend to be based on avoidance of wood from old growth forests.

ENGO pressure and government response to sustainable development and Agenda 21 implementation.

Federal policy states wood to be sourced from "legal and sustainable sources" but this has still not been defined. Not effective to date.

Unknown.

Unknown.

Very effective. Gov’t policies have done more to increase FSC wood use than most private sector.

Unknown.

Has purportedly reduced purchase of tropical timber.

Not particularly successful because PPPs have been not been set up to identify and support good forestry practices but rather to avoid the very worst practices.

No, because of lack of FSC supply and fact that some PPPs said FSC only when there was not enough supply.

Federal government claims £3.5 m has been spent but this is hard to substantiate given lack of definitions.

Unknown.

Unknown.

Unknown.

Much of demand has come from State Universities but no numbers exist on use to date.

Unknown.

Unknown.

Unknown value. Some small purchase of FSC tropical timber by City of Copenhagen. Likely between 80 and 240 K cubic meters/year.

Not yet available.

Unknown.

Unknown.

Unknown value but outdoor flooring, decking boards, fences, outdoor furniture and timber has been purchased for public construction.

Great Britain

Switzerland

France

Japan

United States

Meso-American (Costa Rica)

China (Hong Kong)

Germany

Australia

Sweden

Spain

Denmark

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The key findings from this survey are:

1- Government purchase preference policies are new. Allreported PPPs are of recent origin and, therefore, had littletime to prove or disprove their effectiveness. The earliestreported was adopted in 1998.

2- Governments have acted as the result of ENGO pressure.Eight of the eleven member groups reported that PPPs wereadopted as the result of public and political pressure fromenvironmental organizations. These policies weresometimes achieved through having been incorporated intothe policy platforms of newly elected governments orthrough changes within sitting governments. No membergroups reported any other driving force for purchase policyadoption.

3- The effectiveness of government purchase policies is largelyunknown. There is little awareness among GFTN membersof the degree to which these government PPPs have beeneffective or ineffective in increasing the use of certifiedwood. Information that is available is largely anecdotal andalmost all GFTN members reported little knowledge of theeffectiveness of the policies or expressed a view that theyhad had limited impact to date.

A notable exception came from North America where theCertified Forest Products Council expressed the view thatin the government PPPs were being effective. “Greenbuilding” programs are credited with some of this impact38;however, even in this case there has not been anyquantitative tracking of the value or volume of certifiedwood that has been consumed by governments that haveadopted PPPs. This may be a result of the lack of anyinternal mechanisms to encourage or reward employees fortracking and reporting such information.

4- The majority of government purchase preference policies donot specify FSC. Only four of the eleven FTNs reporting thepresence of PPPs indicate that these policies specify FSC.The lack of FSC preference is a legacy of the fact that manyof the purchase policies have been adopted to avoid the

The hotel industry can be highly benefited by using FSC certified wood.

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purchase of old growth or rare tropical woods. They aretherefore often structured to discourage purchase of theworst, but do little to encourage the purchase of the best.There is also a legitimate concern by some governmentalofficials that specifically referencing to one particularcertification scheme (versus specifying the characteristics ofan acceptable scheme) may be problematic from a free-tradeperspective.

5- Local governments or specific government programs may bethe best place to target the development of new purchasepreference policies. Much of the success reported forgovernment PPPs comes from either local or specificdepartments of state or federal governments. It appears thatimplementation at a smaller scale is achieved more readily.Perhaps at this scale one or a few dedicated staff can make adifference whereas in larger bureaucracies this is moredifficult to ensure. This situation contrasts markedly withthe private sector where the organizational structure of largecompanies favors top-down implementation led by seniorexecutives.

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PARTNER IDENTIFICATION IN THE HOTEL INDUSTRY

4.1 Background

When the goals for this project were being developed there wereseveral attributes of the Costa Rican hotel industry that made it alogical place to encourage use of certified wood products. Thesefactors included:

• Strong ongoing growth in both hotel infrastructure andtourist visitation;

• Significant wood use through ongoing hotel construction,expansion and renovation;

• Existing government and hotel publicity and marketingcampaigns aimed at the tourism consumer (often featuringclaims to ecosystem-friendly management);

• The possibility that Costa Rican hotels have high visitationrates by “certification sensitive” consumers and corporateclients.

The hotel industry in Costa Rica has experienced strong andsteady growth over the last ten years. Figure 1 shows the growth inthe number of hotel rooms since 1992, a 75% increase overall.39

This growth in hotel infrastructure corresponds with an 85% increasewith overall visitation to the country during the same period.

New hotel construction and upgrades use wood in forming,framing, floor and wall finishes and furniture. Informationavailable from producers indicates that wood produced from CostaRican forests (some of them FSC certified) has been used in thesevarious applications. Although many hotels have used, or are using,FSC-sourced wood to build or renovate, there is no evidence thatany of the hotels’ management are aware of this. For example, theowner of one hotel also owns an FSC certified manufacturing

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facility and has used its product in the hotel. However, no profile orpromotion of this fact has occurred within the hotel or inpromotional material.40 Currently there is no reason to think that thelack of interest in certification is deliberate. Rather it is more likelythat there is simply no awareness of the program.

The tropical hotel industry in general and the Costa Ricanindustry in particular, invest heavily in self-promotion and groupadvertising that features the natural environment. For example,Meliá, the large hotel chain, advertises its Playa Conchal locationas the “Green Jewel of Central America” and proclaims how theresort is “carved from the green forests of Costa Rica’s beautifulnorth-Pacific”.41 Others go further. Sí Como No, one of the five-member Small Distinctive Hotels of Costa Rica group, advertises“at this award winning eco-hotel you are transported into thecathedral-like sanctity and splendor of the rainforest, which madeManuel Antonio Beach a world famous adventure destination”.42

Similarly, government publications that support the touristindustry encourage foreigners to visit Costa Rica because of itsnatural beauty. Slogans such as “The Magic of Nature”43 and“Costa Rica: No Artificial Ingredients” headline informationalmaterials that encourage the foreign visitor to choose Costa Rica.Ecotourism is featured as one of five main activities for thevacationer to experience on the official government tourismwebsite.44

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Among the visitors to Costa Rica there may be a significantproportion that can be described as ecologically aware.Experience has shown that these are the type of consumers whosupport the consumption of certified wood products. They aredescribed as: western; financially secure; well-educated; and trend-setters who are concerned about deforestation, loss of biodiversity,climate change and desertification. They are likely to follow thepurchasing advice and analysis of ENGOs. They see certification“stamps” as proof of improvement in corporate performance.45

Many of these people are also travelers who profess concern aboutthe impact that tourism development itself is having on theenvironment.

This theme can be explored through review of a 2002 travel-consumer survey sponsored by the International HotelsEnvironment Initiative. This survey found that 90% of Britons,70% of Australians and 30% of Americans “believe tourismdevelopment is in danger of destroying the environment”.46 Thisstudy indicated that British and Australian respondents expect morefrom their hotels. Fifty-three percent of each (compared to only28% of Americans surveyed) are very likely to choose hotels withequipment like renewable power supplies and biologicalwastewater treatment systems. Australians particularly favorproperties which use recycled toilet paper and biodegradabletoiletries (50%), compared to only a quarter of the British and 13%of Americans.

The British are also keen on places which protect animal andmarine life (80%, as opposed to 60% of Americans). Ninety-sixpercent say they pay extra care when throwing away rubbish likelyto harm wildlife (75% Australia; 57% US). Interestingly, it is theAustralians who show most concern for nature, with 83%supporting hotels which avoid felling trees (compared to 32% ofpeople in the US).

The large differences in attitudes between tourists based oncountry of origin shown in this study may be of significance whendeveloping strategies for engaging hotels (and their clients) inCosta Rica. More information concerning the country of origin oftourists visiting Costa Rica over the last ten years is provided inFigure 2.

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This figure shows that a very significant proportion of theoverall increase in visitation during the last ten years is attributableto the United States. In fact the percentage increase (97%) invisitation from the U.S. is second in relative terms only to SouthAmerica (143%), and in absolute terms, the U.S. delivered 653,450more visitors than arrived from Central American nations, the nextclosest source, over the ten-year period. Visitor survey data alsoshow that many of the visitors from other Central Americancountries are likely to enter for business and professional reasonsand therefore the relative importance of the U.S. to overall tourismgrowth in Costa Rica becomes even more apparent.47

This is best illuminated by the fact that European visitation (theother location of origin from which visitors are likely to be, in thelarge majority, tourists) increased by 71% in comparison to the U.S.97%. In fact the number of new visitors from the U.S. eclipses thenumber of visitors from Europe by 278,297 by 2001, up from129,392 in 1992. This marks a 46% greater spread in U.S. vs.European visitation numbers by the end of the decade, andcumulatively means that the U.S. was the source of 1,290,974 morevisitors than Europe over the ten-year period.

The Costa Rican government tourism authority does not keeprecords of travelers who self-identify as “eco-tourists”48; however,activity surveys have been given to tourists asking them about thedifferent activities that they have undertaken such as wildlife

Figure 2. Increases in Costa Rican Visitation 1992 to 2001

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South America Europe Carribean and Other

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viewing, hiking, bird-watching, etc. The differences in attitudes ofU.S. residents from Britons indicated by the IHEI study aresupported by the data available concerning differences in the typesof activities undertaken by U.S. and European vacationers. Figure3 shows that European vacationers49 appear to select activitiesrelated to nature appreciation and viewing (hiking, bird-watching,volcano viewing, wildlife watching) at a rate considerably higherthan U.S. residents.

If the above described results from attitude surveys and activitystatistics of vacationers are even broadly valid then country-of-client-origin and their potential reaction to hotel purchasepreference program requires careful consideration.

It will be most important to determine the primary client pool of ahotel with which we are seeking to develop a PPP. Adifferent strategywill likely be required for communicating with U.S clients than thosefrom other countries. For example, it may be necessary to first investin educational efforts that reach a large portion of the tropical-vacation consuming public in the U.S. in order to increase theirawareness of environmental threats associated with tourism. This mayneed to be done in advance of trying to encourage their preference forhotels that are acting to reduce their environmental impact.

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Figure 3. Vacation Activities in Costa Rica, 2000

Americans 70,1 17 15 11,9 35,6 48,3 56,2 54,8 11,6 42,1

Europeans 85,2 9,8 4,5 16 29,7 75,6 77,3 82,4 24,9 68,1

Beachand sun Surfing Sport

Fishing

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CanopyTours

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On the ground in Costa Rica it is likely that many of the largehotel complexes that have recently appeared, especially along themid-Pacific coast, may be found to be catering to this large influxof U.S. visitors (this will need to be confirmed with themanagement of these hotels). As a result, these hotels may not bethe best first choice for initiating a relationship leading towardPPPs. This is especially true if we wish to ensure that the first fewrelationships established will result in demonstrable benefits to thehotels that have adopted these policies (more clients or, at the veryleast, positive client reaction).

However, it may be possible to apply direct public pressure onsome of these large international chains in the manner that has beensuccessful with large retailers and governments. This approach mayreduce the need for large-scale consumer education programs, ormay be integrated as part of this effort.

Conversely, broad-based educational groundwork may be lessnecessary with a European client base. Perhaps for these groups, aneducational or marketing program could move directly topromoting how PPPs for independently certified wood productssolve a problem about which they already have significantawareness and concern.

This may mean -given limited resources for large-scale U.S.focused educational effort and/or a strong public campaign aimedat the large chains- that it may be better to target domestic CostaRican efforts on hotels that are currently catering to a significantEuropean client base. The advisability of this approach isreinforced by another finding from the IHEI study. The surveyfound that 78% of Britons (others not asked) said that they wouldpay between £30 and £70 more for a two-week vacation if theyknew the hotel was environmentally responsible. It seems thatEuropeans may be the best clients to look to when seeking toreward a hotel or hotel chain with increased revenue and/orbookings following the adoption of a PPP for independentlycertified wood products.

Another avenue for approaching large hotel chains and/orcomplexes may be through determining the degree to which theirclient base is made up of large corporations making group bookingsfor conferences, seminars or training sessions. This is because

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environmental performance is also being reported as becoming akey decision factor for large corporations when evaluatinghospitality industry partners and suppliers, according to a surveyconducted by Radisson SAS Hotels & Resorts.50 The surveydiscovered that many of the company’s key corporate clients wereincluding the environment in their standard contracts expectingsuppliers to meet their demands by following eco-friendly andresponsible business directives. Companies like SAS, Nokia,Ericsson, Volvo and British Airways were surveyed and agreed thatthe environment influences their decisions regardingaccommodation partners for traveling staff. Radisson commentedin the conclusions of their study that by investing in theimplementation of high-standard environment protection practices,global corporations expect their partners to be equally resourcefuland proactive on “green” issues.

4.2 Hotel Action Plan

The following action plan has been developed to aid selection ofappropriate hotel chains. The approach provided here assumes acollaborative working relationship with a motivated company. Thistype of approach, as discussed above, may not be suited to chains thateither explicitly or implicitly reject interest in developing PPPs.These chains, however, may make suitable candidates for thedevelopment of public education programs concerning the threat ofindustrial tourism.

STEP A: Basic Information Collection and Pre-Screening.1- Determine the size of operations (larger chains are likely to

use more wood products and be capable of more or lesscontinuously sourcing wood for some location within theircompany. Smaller chains or specialty hotels may have aclient base that is more interested in certification);

2- Investigate the manner in which each chain has usedenvironmental awareness and positioning in their marketingand promotion (Do they advertise ecological interest andcommitment? Have they shown interest in other programssuch as Certification for Sustainable Tourism? (Seediscussion in section 4.3);

3- Review the environmental performance of hotel propertiesthrough local and federal government and local ENGOs andlabor organizations; and

4- Identify chains or individual hotels that may have

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motivated management or owners (Is there someone inmanagement who is possibly going to be enthusiastic aboutthe program?).

Based on a review of the information obtained from the fourquestions above, the second stage of contact, research anddiscussion is:

STEP B: Further Analysis and Beginning Discussions.1- Begin approaches to those hotels and/or chains which offer

the best combination of size, previous stated interest in theenvironment, and most likely to have interested andmotivated staff. Initial contact with staff is preferred usingpersonal contact and/or introduction.

2- Based on responses received, begin a process with the staffand ownership to further determine their degree of interestin the goals of forest certification (Do they think thismatters and that they can make a difference?).

3- If the answer to (2) above is yes, then determine:a- The nature of their client base (where are they coming

from?, what do they care about?, and what types ofaction by a hotel will be important to them? (as perabove discussion). This information may be available tothe hotel already or may need to be collected by them.

b- Past, present, and projected future wood use needs (howmuch and what type of FSC product are they likely toneed?).

c- Relationship of wood needs to available FSC supplies(can we match their needs to certified suppliersimmediately or is further effort necessary? (e.g., Chain ofCustody certification of existing suppliers).

d- The best mechanism for ensuring effectiveimplementation of a purchase preference program withinthe company.

4- Using the information collected above, develop a purchasepreference program that:a- Suits the purchasing needs of the hotel or chain of hotels.

Use templates available from other sectors.b- Describes how the purchase program will be

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implemented inside of the hotel or chain. This shouldinclude the following aspects:• Employee rewards/incentives for increasing FSC wood

use (as part of annual work plan objectives, for example).• A plan to encourage use of FSC certified wood by

existing suppliers (e.g. encourage existing furnituresuppliers to obtain FSC Chain of Custody certification)

• A purchase-tracking system to measure ongoingeffectiveness of the policy, to feed into any rewards andincentive plan for employees and to be used in thecommunications described below.

c- Contains a communication component to reach the hotelchain’s customers. This could include in-housepromotion, web-site, and advertising and promotionalpublications. WWF Central America should work withthe chain in the design of this program.

4.3 Hotels Chain Profiles and Opportunities

To date several hotel chains have been reviewed using some or allof the criteria described in Step A above. These are: Best Western,Barceló, Sol Meliá, Marriott, Hilton, Four Seasons, and SmallDistinctive Hotels of Costa Rica (SDH). All except SDH areinternational chains with operations in Costa Rica. These hotelsrepresent a small fraction of the 370 reported “tourist lodges” in thecountry but likely contain a higher proportion of the three, four andfive star accommodations that make up 68% of the country’s14,190 tourist-focused hotel rooms.

These hotels also report higher occupancy rates than lowerrated hotels throughout the year, and are therefore more likely to bemaking a profit (they report 51%, 54% and 59% respectively forstar levels three, four and five versus 30%, and 27%, respectively,for levels one and two).51 If other criteria described in the ActionPlan above can be met, it is more likely that these profitableoperations will be in a better position to work with WWF todevelop PPPs for certified wood.

Best WesternBest Western has six hotels in Costa Rica. These are located atQuepos, Tamarindo, San José, Liberia, Heredia, and Jacó.52 Best

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Western describes itself as the largest hotel chain on Earth (butprovides no statistics concerning total numbers, locations,employees, etc). The Best Western Costa Rica website includes noinformation concerning corporate responsibility or environmentalpolicy commitments. A similar absence of information is evident onthe international site. This absence may be attributable to the factthat Best Western is a non-profit association of member hotels, eachof which is independently owned and operated. It is likely that theassociation has developed little environmental policy. The JacóBeach and San José locations, however, have been certified underthe CST program (see discussion of this program in Section 4.4).No meetings have been held with company management to discussthe opportunity for implementing a PPP for independently certifiedwood products.

BarcelóBarceló operates 142 hotels in 20 countries. In Costa Rica, thischain owns or manages eight locations, with the first beingestablished in 1990. These are: Parque del Lago, San José Palacio,La Amapola, Playa Tambor, Los Delfines, Rincón del Valle, PlayaLangosta and Rancho Río Perlas. Ownership is through the SpanishBarceló family who is represented in Costa Rica by GuillermoBarceló. One of their operations, Playa Langosta, is owned by aSwiss businessman Werner Fuchs who also owns ConstructoraTisa, a large construction firm53.

The publicity produced by Barceló often emphasizes nature,sustainable development and ecological protection54. Theconstruction of the Playa Tambor facility in 1992 causedconsiderable controversy. A local environmental group (ASCONA,the Association for the Protection of Nature) accused Barceló ofpoor labor and environmental practices. Some of these views werepublished in Condé Naste Traveller and The Explore Costa RicaGuide. Barceló responded to one of these articles by threateninglegal action against the publisher and author55. A review of how thisissue was resolved would need to be undertaken as part ofbeginning any discussions with Barceló.

A review of photographs of Barceló’s facilities reveals the useof significant amounts of wood in furniture, post and beamconstruction of some buildings and in cabinetry. Three of theirlocations have been certified under the CST program (Parque el

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Lago, San José Palacio, and La Amapola). No meetings have beenheld with hotel staff to discuss this theme56.

Sol MeliáSol Meliá is a Spain-based corporation and describes itself as the“leading hotel company in Spain, Latin America and the Caribbean,the third largest hotel company in Europe and number ten in theworld ranking.” Sol Meliá is also the largest resort hotel chain in theworld. The company provides more than 350 hotels in 30 countriesunder its Meliá Hotels, TRYP Hotels, Sol Hotels and ParadisusResorts brands57. Sol Meliá operates four hotels in Costa Rica. Theseare: Meliá Cariari in San José; Meliá Tryp Corobici in San José; SolPlaya Hermosa in Playa Hermosa, and Meliá Playa Conchal in PlayaConchal58.

Sol Meliá’s environmental policy sates that “Sol Meliá is fullyaware of the importance of the principles of sustainabledevelopment and is fully committed to carrying out its business withmaximum respect for the natural environment, promotingenvironmental management as a key company philosophy.” It goeson to elaborate a paragraph or two under each of the following sub-headings: general commitment; co-responsibility; co-operation;effective communication; constant improvement; and optimizationand respect for resources. None of these sections contains specificpolicy commitments or planned actions.

The section on natural resource use states that “Optimumconsumption (moderate and efficient) of natural resources andrespect for cultural resources (local community, employees, andway of life) of each Sol Meliá location is an ideal that must besought by all of us in the company so that it becomes the veryessence of Sol Meliá.” There is also mention of a Social Action Planthat has programs grouped into four different areas: products andservices; employee and customer participation; insertion of thedisabled and disadvantaged; and donation of used assets.

No references to implementation methods or procedures areincluded. Sol Meliá also indicates that their Playa Conchal locationhas received two awards for environmental management. The firstwas the 2001 award of the Ecological Blue Flag for assistance inensuring that beaches comply with cleanliness and environmentalconservation requirements59. The other was a certification by

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Audubon International (no relation to the Audubon Society), anaward for the Garra de León Golf Course at the Meliá Playa Conchalfor its maintenance standards. The certification is the first ever givento a golf course in Costa Rica or Latin America. The Meliá Cariariand the Sol Playa Hermosa locations have CST certification. Nomeetings have been held regarding the use of independently-certified wood by Meliá60.

MarriottMarriott International Inc. is a large U.S.-based public corporationwith over 2,600 properties in 64 countries. In 2001 they reportedsales of US$20 billion and employed 142,500 people. OtherMarriott-owned brands include Renaissance Hotels, Ritz-CarletonHotels, and Ramada International Hotels. Marriott operates threefacilities within Costa Rica. These are the Courtyard and MarriottCosta Rica Hotels, both in San José, and Los Sueños Resort at PlayaHerradura.

Marriott states that they have “developed a comprehensivecompany-wide policy to promote business practices that helppreserve the environment. ECHO (Environmentally ConsciousHospitality Operations) provides guidelines for all of our facilities,and our goals are to ‘reduce—reuse—recycle’ as much as we can”.

These furniture is produced by “La Mueblería” as certified industry of the groupExchange S.A., Nicaragua.

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Marriott international runs a “Supplier Diversity” program thatseeks to encourage local community purchases for each of itsbusiness units61. This program may be a logical entry point forrelationship building for FSC certified suppliers.

In 2001, Marriott extended a relationship between one of itsbrands and Habitat for Humanity to its global network. Costa Ricanstaff has been participating in the program through donation ofvolunteer time. This link to the building industry may be of somevalue when discussing certification with them62. The Marriott CostaRica Hotel in San José has CST certification. No personal contactshave been made yet with senior management in Costa Rica to discussthe issue63.

HiltonHilton Hospitality Inc. is an American based public corporationwith 499 hotels world-wide. Hilton claims that globally they haveachieved 98% brand awareness64. Hilton operates only one hotelcomplex in Costa Rica. This is the Hampton Inn and Suites facilitynear the Airport in San José. Their website states that “Hilton Groupis committed to protecting the environment and seeks to continuallyimprove its environmental performance”. In 2001 they developed anew group-wide environmental policy that includes commitmentson energy, water, waste, and raw materials and purchasing.

The Raw Materials and Purchasing Policy section states that“environmental concerns are taken into account during theselection of products and materials for use in our premises. Thisconcept is now being formalized as part of the ‘EnvironmentalConstruction Standards’ for Hilton International.” This policy isthe most logical starting point for a discussion of their purchaseof certified wood products. Hilton is part of the InternationalHotels Environmental Initiative (source of some of the surveywork presented in the previous section). The Hampton Inn hasCST certification. No approach to management has been madeto date.

Four SeasonsFour Seasons Hotels Inc. is a mid-sized Canadian-based hotelcorporation with 58 properties in North America, Europe, theMiddle East and Asia Pacific65. Four Seasons has no existingproperties in Costa Rica, but in 2000 announced that they were

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investing US$105 million in a hotel complex on the PapagayoPeninsula of Costa Rica's northern Pacific coast. Located in theProvince of Guanacaste, the resort will be developed byEcodesarrollo Papagayo and associates in conjunction with FourSeasons. It will be a part of a larger planned residential resortcommunity encompassing over 2,000 acres of the peninsula. It is 16kilometers from the Liberia International Airport.

Slated to open in 2003, the hotel will have 170 guest rooms andsuites plus 40 villa units. In addition, the property will offer twodining venues plus poolside dining, a full-service spa and healthclub, four tennis courts and a tennis center, fresh-water swimmingpools and water sports facilities. An as yet unnamed leadingdesigner will create a Four Seasons championship golf course, andguests will also have access to two additional golf courses. Amarina and possibly a casino are on the drawing board for themaster resort project.66

The history of the Papagayo peninsula project is acontroversial one. By 1995 it had attracted so much opposition thatthe incoming Figueres government cancelled it67. This projectrepresents a re-birth of at least part of the original proposal, butwould require further investigation to determine if it would make agood partner for FSC purchase preference policy development. Noapproach to management has been made to date.

Small Distinctive Hotels of Costa RicaSmall Distinctive Hotels of Costa Rica (SDH) is an association ofsmall independent hotels in Costa Rica that undertake jointmarketing and promotional activities. Each hotel has separateownership68. The five members of the group include Sí Como No inManuel Antonio, Grano de Oro in San José, Capitán Suizo inTamarindo, Villas Caletas in Jacó, and Casa Turire on theReventazón River near Cartago; Florblanca Resort, from thesouthern Nicoya Peninsula, has just joined as a new member but isnot yet included in promotional material or the website69.

Sí Como No in particular, emphasizes its sensitivity toenvironmental concerns and describes itself on its website as an“Eco-Hotel”. Their promotional material strongly emphasizes itsproximity to Manuel Antonio National Park, its ownership of a 30acre private nature reserve and butterfly garden and the diversity of

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monkeys and other wildlife that abound in its grounds70. Sí Como Noand Casa Turire are both certified by the CST program.

Sí Como No is also an important supporter of ASCOMOTI, anenvironmental group dedicated to the conservation of the squirrelmonkey, an endangered species that makes the forests of theManuel Antonio area its home. This direct financial support of alocal forest habitat conservation initiative is unusual.

As an outcome of discussions with Russ Jensen, the residentmanager at Sí Como No and with Mauricio Almerich, theManager of Marketing and Sales at Hotel Villa Caletas, apresentation was given on March 19th, 2003 to the owners ofseveral of the SDH hotels71. The presentation provided anoverview of forest conservation threats, forest certification, and adiscussion tailored to the business interests of SDH72. Theresponse from those present was uniformly positive and authoritywas given by the hotel owners to Mauricio Almerich to work withWWF to develop a PPP as quickly as is feasible.

Mathew Cook the executive director of ASCOMOTI is alsointerested in helping to move the program forward. Mathew thinksthat there may be an opportunity for WWF and ASCOMOTI towork together to create a local market for certified wooden souvenirproducts. This would involve working with local store owners todevelop purchase policies and also to help them source certifiedwood for their existing suppliers or locate others who can meet theproduct requirements and already have independent certification(e.g., producers in the Mayan Biosphere Reserve in Guatemala).

In the longer term, he would like to see forests in the ManuelAntonio area become independently certified and become thesource of wood for the souvenir stores and for hotels. To furtherexplore this possibility a presentation was made on March 21st,2003 to a group that included management from two giftware storesand staff from ASCOMOTI73. There was strong interest expressedby all present in proceeding with the development of a PPP. It isworth noting that Regalame Gallery indicated that wooden ware isthe largest volume souvenir sold by the store.

A key challenge will be to find cocobolo (Dalbergia sp.) or asuitable substitute to supply the artisans in the Sarchí region where

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these stores do almost all their purchasing. ASCOMOTI staff alsoexpressed a strong desire to partner wherever possible on thisproject. They would clearly like to be involved in helping to expandthe program, link it to conservation of habitat for the squirrelmonkey and participate in any promotional activities.

4.4 Best Bets and Next Steps with the Hotel Industry

Based on information gathered to date, Small Distinctive Hotels ofCosta Rica shows the most promise to explore the development ofa PPP for independently certified wood products. Their size (notinternational, but with a significant domestic presence), stated anddemonstrated interest in conservation initiatives (at least by somemembers), and early commitments from a self-motivatedmanagement and ownership are very positive. It is also likely thatthe guest profiles may match the demographic with whom it will beeasier to effectively communicate. This and other aspects of thepreviously described Action Plan must be addressed as therelationship with SDH develops.

Of the international chains reviewed, Sol Meliá appears to offerthe greatest opportunity to move forward in developing andadopting a PPP for independently certified wood products. Theyhave four large hotels in Costa Rica, they are also Spain-based andlikely have high brand recognition there (Spanish citizens are themost abundant European visitors to Costa Rica74) and elsewhere inEurope, and thus attract a high percentage of clients of Europeanorigin. This would likely mean that their client base would respondfavorably to a PPP. Their participation in the Ecological Blue Flagbeach program and the CST certification of two of their locationsare also encouraging.

They also have in place a Social Action Plan that contains acomponent that addresses sustainable products and have obtainedenvironmental management certifications for many of theirproperties in other parts of the globe (but not, so far, within CostaRica).

Another significant opportunity to “expand the net” and seekout hotels that are interested in this program is to become moreinvolved with the Certification of Sustainable Tourism (CST)program.

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PARTNER IDENTIFICATION IN GOVERNMENT

5.1 Background

The value of the Costa Rican tourism industry as a source of exportrevenue has never been higher (US$1.28 billion in 2001), fareclipsing the second place finisher, electronic microstructures(computer chips), and all agricultural products combined. Fully25% of all export dollars earned in 2001 was attributed to thetourism industry75. The importance of Costa Rica’s “green”reputation to maintaining and increasing this revenue flow is notlost on the central government. Great efforts are made by CostaRican diplomats to extol the virtues of domestic environmentalinitiatives to the foreign press and governments76, and anygovernment action that is seen to hinder this industry is widelyunpopular within the country77.

Given these realities it is not that surprising that Costa Ricais one of the few countries in the world to have created a centralPPP for sustainably produced wood (with specifically referencesto FSC). However, both the domestic enforcement experience forother environmental laws and policies, as well as federal levelexperience in other countries (as shown through the GFTN membersurvey) give cause for concern about how effective a federal decreeis likely to be at increasing the purchase of certified wood.

This concern is reinforced by current circumstances. Theorganization of rural forest companies (JUNAFORCA) had askedfor the intervention of the Costa Rican central Tribunal of Justiceagainst the decree. They asserted that governmental efforts to givefavor to those who are certified had put them at a competitivedisadvantage78. FUNDECOR, an ENGO in Costa Rica’s CentralValley region with a significant interest in FSC, has made one of its

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program priorities to aid the small JUNAFORCA companies inobtaining FSC certification so that they will become supporters,rather than opponents, of the federal decree.

The current state of “non-enforcement” of the purchasepreference decree is not necessarily all bad. It may provide thetime to carry out some work with government at the political andbureaucratic level that will ensure that it will work properly. Theexperience with government and private sector purchase policies inother jurisdictions indicates that successful implementation islargely dependent on how “elegantly” it is integrated into the day-to-day responsibilities of the staff responsible for implementation.The period of time before the decree is actually implemented can beused to develop an implementation plan in conjunction withMinistry of Environment staff.

This plan should contain elements drawn from successfulgovernment and private sector programs in other jurisdictionsand sectors. In particular the implementation procedures need toinclude mechanisms through which staff participates in setting

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their annual performance targets, and rewarding them formeeting or exceeding established goals. To make this aspectpossible will require the development of a tracking system so thatthe amount of certified material being purchased can be recorded.

There may also be a possibility of sourcing some recentlyacquired grant money to aid the small forest operators whocurrently oppose the decree. In October 2002, the GermanReconstruction and Development Bank gave a US$10 million grantto Costa Rica for biodiversity conservation. The EnvironmentMinister announced that it has been earmarked for the nationalPayment for Environmental Services program79. This program paysowners of forested lands for the ecological services that their forestsprovide. There could be a natural link between this program and theencouragement of forest certification for small landowners,whereby such certification could be seen as the evidence that theywill continue to provide the ecological services paid for by theprogram.

Another opportunity exists in the ongoing construction of thenew international airport in San José. This government projectprovides a high visibility location for the showcasing ofindependently certified wood products.

There may also be a significant opportunity for placement ofindependently certified wood in a high profile project that will getunderway in 2003. The government of Panama has recently decidedto build a US$40 million, 2,400 square meter museum to highlightthe biodiversity of tropical America80; Slated for completion by2006 and located in the Canal Zone, this museum would be animportant opportunity for promoting forest certification regardlessof its designer.

However, Panama has successfully negotiated a commissionwith Frank Gehry, perhaps the world’s most celebratedcontemporary architect. Gehry’s previous works, especially hisrecent Guggenheim Museum masterpiece in Bilbao, Spain, havetaken the architecture world by storm. It is likely that the Panamamuseum when completed will attract international attention,commentary and visitation. It could also offer an unparalleledopportunity to highlight the use of independently certified woodproducts. It is likely that given its desire to be seen as the “green”

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country of Central America, the government of Costa Rica couldbecome more active in moving forward on its decree and/or otherforest certification related initiatives if it saw that certified woodwould be playing a significant role in the green marketing of thePanamanian museum project.

Contact with people involved in this project has been initiatedby a number of WWF staff and there has been interest demonstratedby Patrick Dillon, the executive architect working for GehryPartners LLP in Panama. He has indicated that although thebuilding itself will use little wood, there may be opportunities indisplay cabinetry and interior finishes. In addition, the gardens willfeature opportunities for educational displays (to be developed inconjunction with the Smithsonian Institute).

He has indicated that the landscape architect (Edwina von Gal)is interested on including information in the educational displaysand/or signage in the gardens. The display and cabinetry designwork has been awarded to Bruce Mau architects of Toronto,Canada. WWF-U.S. has spoken with these architects and they havestated an interest in using certified wood. Patrick Dillon has beensent FSC materials and has indicated that he will be in contact withboth Gehry’s design team, the landscape designer, and FundaciónAmador, the Panamanian sponsor and fundraiser for the project.

While work is underway to ensure that the purchase policydecree is effective, there is also another sector within the CostaRican government that demonstrates significant short and long-term opportunities for collaborative work to encourage greateruse of independently certified wood. This is the Certification forSustainable Tourism (CST) Program.

The CST is a program of the Department of Natural Resourcesof the Costa Rican Tourism Board and the Costa Rica NationalAccreditation Commission. It is voluntary and is fully funded bythe Costa Rican government; therefore hotels using it are notrequired to pay a fee for accreditation81. CST has recently beenrecognized by the World Tourism Organization.

The CST program categorizes and certifies each tourismcompany according to the degree to which its operations complywith a set of guidelines for sustainability. To do this, the program

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uses a rating system where tourism companies (especially thoseoffering lodging) are rated using criteria under four broad headings:physical biological parameters; infrastructure and services; externalclients; and socio-economic environment82. The actual ratings arecompleted by CST staff working with hotel management using amanual with twenty descriptors and 153 individual questions.Certification permits the use of the CST label on promotionalmaterial and within hotel establishments. Re-examinations areundertaken every two years, and there are currently fifty-nine hotelscertified83.

The use of sustainably produced wood is not currently oneof the aspects of hotel management that is specifically addressedby the CST certification. However, the Hotel Facilities sectionincludes “formulation of policies” and “general suppliesconsumption” categories that are seen as appropriate locationsto address use of certified wood84. Integration into a largerprogram has been demonstrated to be successful at encouraginguse of certified wood in other jurisdictions.

The LEED program of the U.S. Green Building Councilassigns only a small bonus for the use of FSC wood and yet hasbeen highly successful at encouraging certified wood use. CST

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staff have demonstrated willingness to discuss integration of forestcertification into their criteria, and have agreed to immediatelystart distributing information concerning certified suppliers and toinclude WWF and Jagwood+ in workshops where they will belinking producers of “green” products with businesses CSTcertified and others interested in becoming certified (theseworkshops will take place later in 2003).

In summary, the Certification of Sustainable Tourism programhas several attributes that make it an ideal partner for WWF and/orJagwood+ to work with. These include:

• The Certification for Sustainable Tourism program is up andoperating and already focuses on one of the primary private-sector audiences (hotels);

• CST has dedicated, motivated staff and government fundingwhich will help to ensure continuity;

• There is a natural place for purchase preference policies forcertified wood products to be included within CST’s existingcertification evaluation procedures;

• Upcoming CST workshops will bring together hotel clientswith producers of “green” goods. This is an ideal place forcertified producers within Jagwood+ to link with new customers;

• CST staff is supportive of the FSC certification program andhave agreed to help in any way possible. Currently they aredistributing information and supplier lists; and

• Linkage with CST would be beneficial for upcoming com-munity presentations involving the PROARCA/APMprogram85.

5.2 Action Plan for Working with Government

In the coming months, WWF staff will undertake different actionsto encourage increased certified wood use within Costa Ricangovernment programs.

5.2.1 Central Purchase Preference Policy

• WWF along with FUNDECOR will determine the mosteffective method for moving the small forest operators tobecoming certified and thus ending their opposition to thecentral purchase preference decree86.

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• Use the current period of non-enforcement to work withCosta Rican Environment Ministry staff on animplementation plan/policy for the executive purchasepreference policy decree.

• Determine if some of the funds recently donated by theGerman Federal Reconstruction and Development Bank forbiodiversity conservation can be used to help implement thepurchase preference decree.

• Work to ensure that the Panama Biodiversity Museum usesand gives profile to certified wood. One WWF staff personneeds to take on this responsibility, including consolidation ofall contact with the Gehry design team.

• Investigate, through the Costa Rican Chamber of Engineersand Architects, whether there are any large upcoming CostaRican government projects that could use and profile certifiedwood (such as the construction and expansion of JuanSantamaria airport).

5.2.2 Certification for Sustainable Tourism Program

• Make contact with senior staff at ICT to determine the mosteffective mechanism to revise the CST evaluation manualand/or criteria to include specific reference to the use ofcertified wood products.

• Coordinate with ICT staff to ensure that producer members ofJagwood+ will be present at the upcoming CST vendor-sellerworkshops.

• Set up a protocol with ICT staff to ensure that promotionalmaterials and lists of certified wood sources are kept stockedat ICT offices.

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APPENDIX

A. Review Committee Membership

The following people were selected to sit on the project reviewcommittee based on their experience with PPPs, the Central Americanwood industry, forest certification, and/or tourism and hotels.

1- Kristin Bonner, Certified Forests Products Council, UnitedStates.

2- Darron Collins, Former Regional Forest Coordinator- LatinAmerica, WWF-U.S., United States.

3- Séfora Cerrato, Department of Natural Resources, CostaRican Tourism Board.

4- Abby Daniell, General Manager, Tico Times, Costa Rica.

5- Cinthya Flores, Communications Officer, WWF CentralAmerica, Costa Rica.

6- David Ford, Executive Director, Certified Forest ProductsCouncil, United States.

7- Fidel Girón, Gibor S.A., Guatemala.

8- Carlos García, Former WWF Central America’s staff.

9- Steve Gretzinger, Forest Director, WWF Central America,Costa Rica.

10- Javier Mateo, Former Coordinator, Environmental Scienceand Policy, Organization for Tropical Studies, Costa Rica.

11- Quint Newcomer, PhD Candidate, Yale University, UnitedStates.

12- Pablo Ramos, Former staff, WWF México.

13- Margaret Renström, GFTN, Sweden.

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14- Mauro Salazar, Regional Forest Advisor, WWF CentralAmerica, Guatemala.

15- Ronald Sanabria, Director, Sustainable Tourism, RainforestAlliance, Costa Rica.

16- Justin Stead, Executive Director, Global Forest and TradeNetwork, Great Britain.

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B. Author Biography

Tim Gray is a biologist with 13 years experience in forest policydevelopment and analysis; land-use planning; protected areasdesign and management; media and donor relations; andmanagement of non-governmental organizations. He obtained aH.BSc. in biology from Wilfrid Laurier University in Waterloo,Ontario and a M.Sc. in Botany and Environmental Studies from theUniversity of Toronto.

He has been appointed to several government forest policydevelopment committees and has extensive experience in thedevelopment of regional standards for the Forest StewardshipCouncil. He currently sits as a board member of Global ForestWatch Canada, The Ontario Forest Accord Advisory Board,University of Toronto Faculty of Forestry Advisory Board, and theWildlife Conservation Society (Canada).

Tim lives in Toronto, Ontario, Canada and can be contacted atthe address below.

Tim GrayCPAWS-Wildlands League401 Richmond Street West, Suite 380Toronto, Ontario, CanadaM5V 3A8(416) 971 9453tjgray3@hotmail.com

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Hotels H H H H

AlajuelaArenal Observatory LodgeVilla Blanca

HerediaHerradura HotelRosa Blanca Country Inn

PuntarenasLapa Ríos

Hotels H H H

AlajuelaEl Rodeo Country InnLa Laguna del Lagarto

GuanacastePunta Islita Hotel

HerediaCariari Meliá ConferenceCenter & Golf ResortCosta Rica MarriottRara Avis

C. Hotels Certified by the Certification for SustainableTourism Program

Downloaded from CST website www.turismo-sostenible.com

The CST Program was developed by the Department of NaturalResources of the Costa Rica Tourist Board and the Costa RicaNational Accreditation Commission. Registered Trademark, Licence No 54321

This site was created thanks to support from: PROARCA/CAPAS CCAD - USAID ©1999-2002 Certification for Sustainable Tourism(CST)

info@turismo-sostenible.co.crTelephone: +506 223-1733, ext. 247Fax: +506 258-2912PO Box: 777-1000San José, Costa Rica Design by: Fundación Acceso This site is continually updated.Last modified: 05/January/2003

Complete List of Hotels, by Number of Stars (59 hotels found)

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LimónAlmendros y Corales

PuntarenasBelmarEcolodge San LuisPunta Leona Beach ResortSí Como No

San JoséApartotel Los YosesHotel 1492 Jade y OroRosa del Paseo

Hotels H H

AlajuelaHampton InnTabacón Resort

GuanacastePueblo DoradoHacienda La PacíficaVilla Baula

HerediaBougainvilleaSelva Verde Lodge

PuntarenasSapo DoradoVilla VerdeCaribbean Village FiestaPuntarenasJacó Beach Best WesternTulemar

San JoséAmstel Escazú Country InnEl SesteoEuropaParque del Lago (Barceló)Sabana B&B

San José Palacio BarcelóVillas del Río

Hotels H

AlajuelaArenal Vista Lodge Best WesternBosques de ChachaguaLa GarzaLas Cabañitas Resort

CartagoCasa Turire

GuanacasteColinas del NorteJoya SureñaBlue Bay Club PapagayoCabinas Las Olas S.R.El OcotalGuanamarIguanazulLas TortugasSol Playa Hermosa

HerediaLa Quinta de SarapiquíCountry Inn

LimónAtlántida Lodge

PuntarenasVilla LapasCabinas Pedro MiguelDivisamarLa Amapola (Barceló)

San JoséSan Gildar

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D) Explanatory notes and bibliographical references

1 WWF supports all independent and credible certification programs which

meet specific criteria including: voluntary (non-obligatory) application as a

free-market incentive, broad sector involvement in standards development,

global applicability to all forest types and owners in all nations, product

labelling program, transparent evaluation process, and independent

management. To date, WWF considers the FSC system as that which best

meets such criteria, but collaborates with, and actively encourages, other

certification programs to continue improving to meet such criteria.

2 Globally, as of March 1, 2003, there are 34.5 million hectares of forest

certified to meet FSC standards. (Forest Stewardship Council U.S. News

and Views 3(4): March 2003).

3 The reverse of this problem exists in North America where large wood

retailers have developed FSC favoring purchase preference policies but have

been unable to source sufficient certified supply to meet their requirements.

4 Justin Stead, Executive Director, Global Forest and Trade Network in

presentation at GFTN Americas meeting, San Jose, Costa Rica, November

2002.

5 Rick Kellso, Wood Marketing and Sales Consultant, Southern Exchange, an

Oregon-based wood brokerage with experience in Mexico, Brazil and

Central America. Personal communication.

6 Abby Daniell, former marketing and sales executive for Comercialización

de Maderas Costarricenses, (CMC), a Costa Rican based firm founded in

1996 to develop a vertically integrated certified forest products company.

Interview on November, 22nd, 2002.

7 Andrés Martén, General Manager, PanAmerican Woods. Interview on

January 14th, 2003, San José, Costa Rica.

8 Rick Kellso, Southern Exchange, in presentation at GFTN Americas

meeting, San José, Costa Rica, November 2002.

9 Chris Van der Goot, Director, ECOHOUT, Netherlands, in presentation at

GFTN Americas meeting, San José, Costa Rica, November 2002.

10 Abby Daniell, former CMC executive, interview, San José, Costa Rica,

November 22nd, 2002.

11 Quint Newcomer, former CMC staff, response to email questions, Dec. 6th

2002.

12 David Ford, CFPC, Jason Grant, CWPA, Lawrence Pratt, INCAE, in

presentation at WWF-GFTN Americas Meeting. San Jose, Costa Rica, Nov.

18th 2002.

13 From: Report on the Questionnaire to Assess the Impacts of the FSC

Percentage Based Claims Policy, ProForest, 2001. Prepared for the Forest

Stewardship Council International.

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14 The market for certified wood is growing at 10% annually in the U.S. and

7% in Holland. Lawrence Pratt, Director, Latin American Center for

Competitiveness and Sustainable Development (CIMS), in presentation at

WWF-GFTN Americas Meeting. San Jose, Costa Rica, Nov. 18th 2002.

15 It should be noted that to date, the FSC is the only voluntary and

independent certification scheme being implemented by forest producers

and manufacturers located in Central America.

16 Quint Newcomer, written response to enquiry, December 6th, 2002.

17 Lawrence Pratt, Director, CIMS, in presentation at GFTN Americas

meeting, San José, Costa Rica, November 2002.

18 FSC certified producer Maderas Cultivadas de Costa Rica is currently

selling melina to Muebles Antrée. This successful furniture manufacturer is

exporting luxury furniture and architectural woodwork to the United States.

However, Muebles Antreé does not have an FSC Chain of Custody

certificate.

19 Cristian Días, Maderas Cultivadas de Costa Rica. Interview December

10th, 2002, San José, Costa Rica.

20 Interviews with the senior management of Costa Rican FSC certified

producers, such as Maderas Cultivadas and Flor y Fauna, indicate that none

of their Costa Rican customers has shown any interest or preference for the

fact that their products are certified.

21 Geovanny López Alfaro, Maderas Cultivadas de Costa Rica. Interview

November 19th, 2002, Alajuela, Costa Rica.

22 Cynthia Loría, Coordinadora Oficina Regional, Smartwood. Written reply to

enquiry. November 30th, 2002.

23 Walter Zweede, Brazilian FTN, indicates that Brazilian FSC certified

producers are not labelling their products as they have had no interest in

such from their current customers.

24 A complete and updated list of companies with “wood purchasing policies”

in Canada and the United States can be found at www.forestethics.org.

These companies include those that have developed comprehensive wood

purchase policies and those which have committed to not buying wood from

“endangered forests”.

25 It is important to note that definitions for “intact natural forests” and “high

conservation value forests” are still in the process of being refined for

practical application.

26 The “staircase” model, also know as the “step wise approach”, or the

“Modular Verification and Implementation Certification approach”, is being

developed by WWF and PROFOREST, in conjuntion with IKEA/WWF

Central America is also developing a model for use with Nicaraguan

companies and communities interested in gradually achieving FSC

certification via a transitional approach.

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27 IKEA International A/S (2001) IKEA, Environmental and Social Issues.

Pags. 14-15.

28 David Ford, CFPC and Jason Grant, CWPC, personal communications.

29 Kristin Bonner, CFPC, personal communication.

30 Wall Street Journal, January 2nd, 2003 as reported in Forest Stewardship

Council, U.S. News and Views, 3(1): 1.

31 The Natural Step program is a stepwise program to aid companies move

toward sustainable business practices. Source: www.bsr.org; [also at

www.naturalstep.org].

32 For example, Norm Thompson’s system assigns the highest score for wood

products that are FSC certified and/or made from recycled wood while the

most negative score is assigned to wood that is CCA treated, wood with

resourcinol adhesives, virgin clearcut old growth/endangered species, or

mahogany.

33 Derek Smith, Corporate Sustainability Manager, reply to written questions,

March 1st, 2003. For more information see Norm Thompson Outfitter’s

website (www.normthompson.com).

34 Home Depot’s public statement on wood purchase preference is “Home

Depot will give preference to the purchase of wood and wood products

originating from certified well managed forests wherever feasible”.

35 Kristin Bonner of CFPC indicates that no review of the effectiveness of

policy wording has been done because of lack of resources to do so;

however, staff at CFPC is aware of who is moving forward and who is not.

36 Lode Devos, Forest and Trade Network Belgium, personal communication.

37 Text of executive decree: Article 9º—The suppliers and contractors of

furniture and other materials used in building and expanding governmental

facilities, and who work with certified products will be preferred, under

equitable conditions, to those who don't. If providing a hundred percent

certified products is not possible, priority will be given to those who offer

the biggest amount of certified forest products. Miguel Ángel Rodríguez

Echeverría, former President of the Republic. The former Minister of

Environment and Energy, Elizabeth Odio Benito.

38 Kristin Bonner, CFPC personal communication February 27th, 2003. The

LEED Program (Leadership in Energy and Environmental Design) Green

Building Rating System™ is a voluntary, consensus-based national standard

for developing high-performance, sustainable buildings. LEED™ was

created to:

• define "green building" by establishing a common standard of

measurement

• promote integrated, whole-building design practices

• recognize environmental leadership in the building industry

• stimulate green competition

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• raise consumer awareness of green building benefits

• transform the building market

LEED provides a complete framework for assessing building performance

and meeting sustainability goals. Based on well-founded scientific

standards, LEED emphasizes state of the art strategies for sustainable site

development, water savings, energy efficiency, materials selection and

indoor environmental quality. LEED recognizes achievements and promotes

expertise in green building through a comprehensive system offering project

certification, professional accreditation, training and practical resources.

Source: www.usgbc.org.

39 Data source: Área de Empresas y Servicios Turísticos, Departamento de

Fomento, Instituto Costarricense de Turismo, Costa Rican Tourism Board

website: www.visitcostarica.com

40 Ecoplaya Hotel has the same ownership as Flor y Fauna lumber. The hotel

has used FSC certified hardwood flooring. Glen Montes, Manager, Flor y

Fauna, written response to enquiry, Dec. 14th 2002.

41 Advertisement in: Exploring Costa Rica 2003, 11th Edition, Tico Times.

42 Source:website: www.sicomono.com

43 Costa Rica: Magia de la Naturaleza, Tourist Map. Instituto Costarricense de

Turismo.

44 Source: official website of the Costa Rican Tourism Board:

www.visitcostarica.com.

45 Lawrence Pratt, Director, CIMS, in presentation WWF-GFTN Americas

meeting, San José, Costa Rica, Nov. 19th 2002.

46 The travel-consumer study was conducted by interviewing approximately

300 travelers in airports in Britain, Australia and the U.S. The International

Hotels Environment Initiative (IHEI) was established as a non-profit

program in 1992 by chief executives of the world’s leading hotel groups.

Providing IHEI’s leadership and funding are senior executives from 11

multi-national hotel groups, between them representing 68 brands, hotels on

five continents and two million rooms. Also supporting the initiative are

hotel brands and partners around the world. Web site www.un.org/esa/

sustdev/viaprofiles/IHEI.html

47 Latin American visitors (51.8%) reported entering Costa Rica for “business

or professional reasons” vs. 20.7% of U.S. visitors during the same period

in 2000. Source: Encuesta dirigida a NO RESIDENTES en Costa Rica,

Aeropuerto Internacional Juan Santamaría, Costa Rican Tourism Board.

48 Luis Madrigal, Instituto Costarricense de Turismo, reply to written request,

February 27th, 2003.

49 A 67.3% of U.S. and 78.6% of European visitors said that they were entering

Costa Rica for purposes of “pleasure, rest or vacation” during an ICT survey

of entrants conducted in 2000. The remainder of visitors was entering for

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business, to visit family and/or friends, or other undeclared reasons.

50 Radisson Hotels & Resorts and its parent company Carlson Hospitality

Worldwide includes 813 hotel and resort locations representing 137,830

guest rooms in 63 countries plus six luxury cruise ships sailing worldwide.

Source: www.asiatraveltips.com.

51 2001 Annual Report. Costa Rica Tourism Board. Occupancy figures based

on a sample of 36 hotels. Complete file located at report2001.pdf

52 Source: www.bestwesterncostarica.com.

53 “Fiesta en el Barceló”, Internacional 506 (revista). Pages 46-47, Third

Edition, Year 1, 2000.

54 "During these ten years, Barceló Playa Tambor facility has greatly

contributed to the development of the region, to the improvement of its

ecology, to the community welfare and modernization of services such as

water, surface and air transportation, showing respect for Nature". A

message from Guillermo Cabrer, Director General of Barceló Central

America, in a tenth anniversary promotional brochure for Playa Tambor,

Nov. 2002.

55 Source: www.catch22.com

56 Letter sent to: Jorge Salgado, General Manager, Barceló Hoteles, La Uruca.

January 21st, 2003.

57 Source: www.solmelia.com

58 Source: www.costaricahotelsdiscover.com/hotel/groups/lodging_central_

pacific.htm.

59 The Ecological Blue Flag program was jointly developed by the Costa Rican

water institute (AyA) and the Costa Rican Tourism Board (ICT). This

program ranks beaches for quality of: ocean water, water for consumption,

beach sanitary conditions, safety, environmental education and

administration. The award is given to beaches, not hotels individually.

Source: Cámara Costarricense de Hoteles, web: www.costaricanhotels.com.

60 Josephina Serra, Environmental Coordinator, Sol Meliá. Written response to

enquiry. March 10th, 2003.

61 Source: www.marriott.com/corporateinfo/supplier.

62 Source: www.marriott.com/corporateinfo/culture/communityPrograms.

63 Letter was sent to: Steve Redkoles, General Manager Marriott Hotels,

Rivera de Belén, January 24th, 2003.

64 Source: www.hilton.com.

65 Source: www.fourseasons.com

66 Four Seasons to Build New Resort in Costa Rica, The Timeshare Beat,

October 20th, 2000.

67 Jerry Courvisanos and Ameeta Jain, 2001 Ecotourism in Costa Rica: An

Economic Framework of Analysis, School of Economics, University of

Tasmania.

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68 Russ Jensen, Resident Manager, Sí Como No Hotel. Interview Dec. 18th,

2002.

69 Susan Money, owner of Florblanca, personal communication at meeting of

SDHCR, March 19th, 2003. San José, Costa Rica.

70 Sí Como No Hotel website: www.sicomono.com.

71 Maurcio Aymerich also acts as facilitator and meeting organizer for

SDHCR.

72 Meeting attendees were: Eldon Cooke, Hotel Grano de Oro; Susan Money,

Florblanca Resort; Denis Roy, Villa Caletas; and Mauricio Aymerich. Eldon

Cooke led the group in endorsing the development of an FSC purchase

preference policy for all of SDHCR.

73 Meeting attendees were Lorraine Champagne, Regalame Gallery; Milo

Belkins, La Botánica; Matt Cook, Exec. Dir. ASCOMOTI; Juan Pablo

Agüero, Forestry Engineer ASCOMOTI; and Rosa Arecheverro, Vela Bar.

74 2001 Annual Report, Costa Rican Tourist Board.

75 2001 Annual Report. Costa Rican Tourism Board.

76 This activity sometimes draws the ire of Costa Rican citizens who complain

that many of the environmental pronouncements, laws and policies

trumpeted by the central government are meant to hide the fact that little

action is underway on the ground to enforce these laws or address rampant

destruction of forests, rivers and oceans. This view was most recently

expressed in the lead editorial of La Nación newspaper (Environmental

guarantees? Natural resources sacked because of state inaction, La Nación,

February 25th, 2003)

77 The Figueres Administration was elected in 1994 on a mandate to address

the slowdown in the tourism industry and to address growing concerns that

environmental problems were threatening the sustainability of this important

industry. Jerry Courvisanos and Ameeta Jain, 2001 Ecotourism in Costa

Rica: An Economic Framework of Analysis, School of Economics,

University of Tasmania.

78 Carlos Herrera, FUNDECOR, written reply to question, March 3rd, 2003.

79 Germany grants $10 million to Costa Rica La Nación, October 19th, 2002.

80 Yasmín Montoya, “Un Gehry para Panamá”, La Nación, December 11th,

2002, pag. 3.

81 Ronald Sanabria, Director, Sustainable Tourism, Rainforest Alliance.

Personal communication, February 8th, 2003.

82 Source: www.turismo-sostenible.co.cr/EN/sobreCST/contact.shtml.

83 A complete list of CST certified hotels is provided in Appendix C.

84 Sefora Cerrato, ICT-CST assessor, personal communication in interview,

San José, February 17th, 2003.

85 There will be a series of workshops presented to a) community groups and

local government, and b) entrepreneurs. These workshops will be in

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Caribbean coastal communities. WWF has been invited to participate in

these meetings and present information on FSC certification.

PROARCA/APM is a USAID-funded joint Central America-wide

conservation program for the CCAD, comprised by WWF, The Nature

Conservancy and the Rainforest Alliance. WWF is leading the green markets

component of the project covering the forestry, tourism agriculture and

marine sectors, and has subcontracted the Rainforest Alliance to work

specifically on tourism issues including the development of the CST

program for regional application. Ronald Sanabria, Director or Sustainable

Tourism, Rainforest Alliance. Interview, February 8th, 2003.

86 As of August 7th, 2003, both FUNDECOR and WWF Central America have

committed to working with JUNAFORCA on this issue and the opposition

is no longer evident.

WWF Central AmericaTelephone: +506 234 4834Fax: +506 253 4927E-mail: info@wwfca.orgP.O. Box: 629-2350San Francisco de Dos Ríos,San José, Costa Rica

WWF is the world’s largest and most experienced independentconservation organization, with more than 5 million supportersand a global network active in over a 100 countries.

WWF’s mission is to stop the degradation of the planet’s naturalenvironment and to build a future in which humans live in harmonywith nature, by:

• Conserving the world’s biological diversity • Ensuring that the use of renewable natural resources is

sustainable • Promoting the reduction of pollution and wasteful consumption