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Forest Stewardship Council

® FSC, A.C. All rights reserved

The market for timber, paper and pulp in the Asia Pacific - challenges faced in meeting the two pronged challenge of meeting demand and sustainability

May 2012

Alistair Monument FSC Asia Pacific Regional Director [email protected]


® FSC, A.C. All rights reserved 2

Forest Stewardship Council (FSC) •  An independent, non-governmental, not for profit organization

guided by its multi-stakeholder membership

•  Founded in 1993 after the 1992 UN Conference on Sustainable Development, by concerned business representatives, social groups, and environmental organizations to promote:

•  environmentally appropriate,

•  socially beneficial, and

•  economically viable

…management of the world's forests



FSC does this through…

•  Setting standards for responsible forest and plantation management

•  An accreditation/certification system to monitor adherence to FSC standards

•  A product labeling system that rewards responsible forest and plantation managers



Global FSC certified forest area: by region

Source: Map FSC Denmark 10/10 Regional values FSC IC 04/16/12

North America 38.34% of total certified

areas

(57,780,547 ha)

204 certificates

South America & Caribbean 7.51% of total certified areas

(11,318,440 ha)

229 certificates

Africa 4,84% of total certified areas

(7,296,514 ha)

47 certificates

Europe 44.16% of total certified areas

(66,538,637 ha)

465 certificates Asia 3.44% of total certified areas

(5,190,505 ha)

145 certificates

Oceania 1.70 % of total certified areas

(2,568,660 ha)

35 certificates

Total certified area: 150,693,303 ha in 80 countries

Forest Management certificates: 1125

FSC National Representation: 65 countries



Support from business and NGOs



FSC Certified supplier companies

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

2005 2006 2007 2008 2009 2010

•  Worldwide 23,038 FSC Chain of Custody Certificates

•  107 countries

•  Growth since 2006 helped by mixed label

(as of 16 April 2012)



FSC Market impact



Market drivers

-  Corporate image -  Stakeholder pressure

-  Green Building -  International policy

-  Sense of stewardship -  Trusted brand

Private Procurement

Public Regulations

Consumer Awareness



FSC Market value in Europe

19 23 24

36

1117 19

25

0510152025303540

2007 2008 2009 2010

Perc

enta

ge o

f UK

C

onsu

mer

s

Recognise the logo

Knowingly buy FSC products

•  UK logo recognition up to 43% in 2011



FSC market value in Asia Pacific

Data source: WWF-Hong Kong

11% 15% 16%

29%

0%

5%

10%

15%

20%

25%

30%

35%

2008 2009 2010 2011

Perc

enta

ge o

f HK

ci

tizen

s

•  Unprompted awareness of FSC in Japan in 2011: 23%



•  HSBC use FSC-certified paper in corporate publications, marketing materials, MPF annual member statements

•  Specify suppliers to use paper products made from FSC paper wherever possible

Sustainable Finance •  HSBC requires Forest Sector clients to be

independently certified •  Use FSC as benchmark for legality and

sustainability



FSC and Responsible Procurement •  UK Government Timber Procurement Policy

•  The Department for Environment, Food and Rural Affairs www.defra.gov.uk

•  The Central Point for Expertise on Timber Procurement: www.proforest.net/cpet

•  London Olympic Games 2012 •  Sochi Olympic Games 2014

•  UK BREEAM and EcoHomes/COSH give points for FSC •  U.S. Green Building Council’s Leadership in Energy and

Environmental Design (LEED) www.usgbc.org.

•  Hong Kong Building Environmental Assessment Method (BEAM) www.hk-beam.org.hk



FSC and Australia Green Star

•  Green Star Timber Credit •  “One point where at least 95% (by cost) of all timber used in the

building and construction works is certified by a forest certification scheme that meets the GBCA’s ‘Essential’ criteria for forest certification; or is from a reused source;; or is sourced from a combination of both”

•  “Forest Certification Schemes that comply with the Essential Criteria must be accredited by the Forest Stewardship Council (FSC) International or Programme for the Endorsement of Forest Certification (PEFC).”



FSC Asia Pacific Regional Office

•  In Hong Kong from January 2011 focusing on: •  System oversight/credibility

•  Network development

•  Government relations/advocacy

•  Key accounts/companies

•  Using FSC as a market based tool to influence purchasing practices of companies in Asia Pacific and provide incentives for improved forest management in Asia Pacific and elsewhere



Asia Pacific market demand for forest products

0

50000

100000

150000

200000

250000

300000

350000

2002 2004 2006 2008 2010

Am

ount

(1,0

00 m

3 / t

onne

s)

Solid wood

Industrial roundwood Sawnwood Wood-based panels

0 20000 40000 60000 80000

100000 120000 140000 160000 180000

2002 2004 2006 2008 2010

Am

ount

(1,0

00 m

3 / t

onne

s)

Paper and pulp

Pulp for paper Paper and paperboard

FAO, 2003-2011



FSC development in Asia Pacific region

•  Asia Pacific is the region with fastest FSC growth. •  Now more Chain of Custody certificates in Asia Pacific

than North America

•  Since January 2011, •  Certified forest area increased 42.99% (+2,306,817ha) •  Chain of Custody certificates increased 20.94% (+919)



Asia Pacific

5.14% of global certified areas

FSC forest area: 7,672,382 ha

FM certificates: 180

China

(2,714,811 ha)

49 certificates

Indonesia

(985,333 ha)

16 certificates

Australia

(972,046 ha)

13 certificates

New Zealand

(1,499,592 ha)

18 certificates

Malaysia

(501,751 ha)

7 certificates

Japan

(389,354 ha)

36 certificates

As of 16/4/2012

FSC certified forest area in Asia Pacific



FSC CoC certificates in Asia Pacific

Total: 5372 (as of 16 April 2012)



FSC Network in Asia Pacific

•  Regional Office in Hong Kong

•  National Offices in Australia, Japan

•  National Representatives in China, India,

•  National Focal Points Sri Lanka, Nepal and Fiji

•  FSC Standard Development Groups in Malaysia, Papua New Guinea and New Zealand

•  Network development activities in Indonesia, South Korea, Taiwan, Vietnam

•  Coordinated fundraising, in particular for standard development



Challenges in Asia Pacific

•  Challenges for FSC uptake in the region •  How to maintain the credibility of FSC? •  How to meet demand? (2 new certificates daily) •  How to connect buyers and sellers? •  How to get the public choosing FSC?

? ? ? ?



How to maintain the credibility of FSC? •  Oversight of the market

•  Working with ASI, certification bodies and certificate holders to monitor trademark use, credibility of claims and deal with fraud

•  Trademark usage for non-certificate holders

•  System governing the trademark usage by non-certificate holders

•  Online Claims Platform •  Traceability of each transaction

•  Fiber Testing



How to meet demand?

•  Provide conditions for new forest certification

•  Support the development of new standards

•  Working with business, governments, NGOs and other stakeholders to development new FSC national standards

•  Develop the FSC Network •  Sub-regional activities •  Developing capacity in regions

•  Government advocacy •  Agreements with government agencies



How to connect buyers and sellers? •  Support key accounts

•  Dedicated staff across the region

•  FSC Marketplace •  Portal for linking buyers with suppliers

operational Q3 2012.

•  Green Building Standards •  Worked with green building standards to

ensure FSC materials can obtain credits



How to get the public choosing FSC?

•  Market awareness programs

•  With NGOs and companies

•  Marketing materials •  New market friendly website,

templates, and factsheets

•  Partner events •  Business events and governmental

events to promote FSC



China

•  China Working Group since 2007 •  MoU signed with regulator in 2009 •  In transition from National Working

Group to a Full National Office •  3 full time FSC staff •  Dedicated program to address

trademark misuse and fraud •  Growing domestic market for FSC

label



Certified suppliers in China and Hong Kong



Indonesia •  High rates of deforestation •  Conversion to oil palm and pulp

plantations •  Huge carbon emissions •  Potential for FSC to make a huge

difference •  FSC Standard process starting in 2012 •  FSC National Representation •  Smallholders program •  Ecosystem Services Program, including

carbon



FSC Policy of Association •  FSC rules to protect its brand •  FSC disassociated from APP in 2007 •  Ongoing NGO campaigns against APP

and others •  Greenpeace solution •  Establish targets and timelines for

reducing the use of paper and packaging and increasing the use of recycled fibre. Where this is not possible, use virgin fibre that is Forest Stewardship Council (FSC) certified



Demonstrated impacts of FSC on the ground

Environmental

- biodiversity, restoration, chemicals, GMOs, water, High Conservation Values, forest conversion, reduced carbon emissions

Social

-  health and safety, indigenous peoples rights, community rights, development

Economic

- market access, brand value, premiums



FSC certification and biomass in Borneo

•  FSC certification increases biodiversity and lowers carbon emissions

• finds the following report: • “Landscape-Level Evaluation of Carbon and Biodiversity in

the Tropical Rain forests of Deramakot Forest Reserve, Sabah, Malaysia”



FSC certification and biomass comparison



Well-‐managed, FSC-‐cer1fied responsible logging concessions in Africa and South East Asia can support

healthy and growing great ape popula1ons.

finds the following report: Great Apes and Logging (2009)

Great Apes and logging


® FSC, A.C. All rights reserved 33 • FSC Presentation June 21, 2012 · 33

• The posi1ve environmental and socio-‐economic impacts of FSC-‐cer1fica1on on pine and

eucalyptus planta1ons in Brazil outweigh the costs of cer1fica1on

• finds the report: • Impact Assessment of FSC-‐cer8fica8on on Forest Enterprises

• in Southern Brazil (2008). Source: A.L. Novaes Keppe, A. C. de Lima, M. Corrêa Alves, R. Fernando Maule, G

Sparovek. (2008).

Impact of FSC certified plantations in Brazil


® FSC, A.C. All rights reserved 34 • FSC Presentation June 21, 2012 · 34

Source: A.L. Novaes Keppe, A. C. de Lima, M. Corrêa Alves, R. Fernando Maule, G Sparovek. (2008). Impact Assessment of FSC-‐cer3fica3on on Forest Enterprises in Southern Brazil

Impact assessment of FSC certified plantations in Brazil

Posi1ve Impact of FSC-‐Cer1fica1on Problems related to FSC-‐Cer1fica1on

Worker’s quality of life. Compliance with unrealisLc federal laws.

Compliance with work laws. Cost of cerLficaLon. Work health and safety. Much Lme spent on documentaLon. More sustainable forest management.

To get subcontractors to adapt to standard.

PosiLve mindset on natural resource preservaLon. -‐

Community relaLons. -‐ Access to foreign markets -‐ Closer client relaLonships -‐



Thank you Alistair Monument FSC Asia Pacific Regional Director email: [email protected] office: (+852) 3557 6029 mobile: (+852) 9687 7073 skype: alistair.monument www.fsc.org

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