the global forest & trade network (gftn) is a...
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The Global Forest & Trade Network (GFTN) is a World Wildlife Fund (WWF) initiative designed to eliminate illegal logging and improve the management of valuable and threatened forests. By facilitating trade links between companies and communities that support responsible forestry, the GFTN creates market conditions that provide a tangible incentive for conserving forests. The GFTN is an affi liation of national and regional Forest & Trade Networks (FTNs) active in nearly 30 producer and consumer nations throughout Europe, Asia, Africa, and the Americas. The FTNs are comprised of forest-related businesses from all parts of the supply chain–forest owners and managers, manufacturers, distributors, and retailers–that have committed to increasing responsible use of forest resources and products.
What is the North American Forest & Trade Network?
GFTN’s North American Forest & Trade Network (NA-FTN) works with buyers in the United States to encourage them to use their purchasing power to se-cure environmentally sound management for the most valuable and threatened forests in which North America is a signifi cant consumer. Countries exporting large portions of wood products from valuable and threatened forests to the United States include Canada, Brazil, China, Indonesia, Malaysia, and Russia. WWF believes that retailers, distributors, and manufacturers in the United States can play a valuable role in driving improvements in forest management while enhancing their business model. For advice on how to get involved, please contact the North American Forest & Trade Network.
This guide is designed as a tool to help businesses implement purchasing policies that enhance forest management practices and eliminate illegal log-ging in valuable and threatened forest ecosystems around the world.
Suzanne Apple, Regional CoordinatorNorth American Forest & Trade NetworkWorld Wildlife [email protected]
Jennifer Biringer, ManagerNorth American Forest & Trade NetworkWorld Wildlife [email protected]
What is the Global Forest & Trade Network?
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table of contents
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© WWF-Canon / WWF-Switzerland/A. della Bella
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If You’re In Business, You’re In The Forest Business
What Does a Responsible Purchasing Policy Look Like?
Seven Steps For Developing a Responsible Purchasing Policy
Moving Forward
Making Responsible Purchasing Work For You
Developing a Baseline
Putting It All Together
Glossary
Appendix I: Promoting Credibly Certifi ed Products
Appendix II: Identifying High Conservation Value Forests
Appendix III: Other Resources
Appendix IV: WWF NA-FTN Forest Products Policy Template
Appendix V: Sample Action Plan
case
design
implementation
resources
table of contents
© WWF-Canon / WWF-Switzerland/A. della Bella
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Forests envelop the globe, providing life-supporting oxygen, clean water, and a wide range of wood, paper, medicine, and other products that improve people’s lives.
Renewable, biodegradable, and non-toxic, forest products can be environmentally friendly when they come from well-managed forests. But forest products are not always developed responsibly. Forest conversion, illegal logging, and other unsustainable practices pose a serious threat to the world’s forests. Govern-ment regulations alone do not always ensure that forests are well managed. For one thing, many areas of the world lack such regulations, and even when present, regulations can be circum-vented through corruption.
Trade in forest products is a global exercise, with forest products playing a role in nearly every business in the developed world. A growing number of business leaders recognize that their use of forest products–in their operations, capital projects, and product lines–requires certain respon-sibilities and purchasing behaviors.
There is a growing recognition among visionary leaders of the connection between purchasing decisions and logging practices. What a business buys and uses in terms of wood and paper affects how forests are managed or mismanaged, and what products are made available to meet business needs. Establishing responsible purchasing policies represents a direct means by which corporate consumers can help conserve biodiversity, enhance commu-nity well-being, and encourage other businesses to champion responsible purchasing of forest products.
There are many direct and indirect business benefi ts for implement-ing sensible, accountable wood and paper purchasing policies. These benefi ts include stronger supply chain relationships, enhanced brand integrity, increased customer loyalty, and gains in employee satisfaction and retention.
If you’re in business, you’re in the forest business
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Talented people prefer to work for companies whose actions align with their own values. In his book, The Sustainability Advantage, Bob Willard concludes that “20-39 percent of talented poten-tial recruits would care enough about the environ-mental image and reputation of a company to let it infl uence their decision to accept that company’s job offer.”1 Forests, in particular, paint a powerful, often emotional, environmental picture that people can relate to their personal experiences.
Consumers also respond positively to brands that refl ect their own personal values. Following a responsible purchasing policy provides an opportunity for a company to distinguish itself as an environmental leader and conscientious corporate citizen. One recent study by the Natural Marketing Institute estimated that about one-third of the U.S. adult population considers environ-mental and social issues when they make pur-chases. Most of these consumers prefer to make purchases from companies that share their values. Failure to take a leadership role in this area can have negative impacts on a company’s bottom line. A 2002 study by Cone Inc. found that 91 percent of consumers surveyed said they would consider switching brands because of negative corporate citizenship practices.2
A responsible purchasing policy improves a company’s supply chain by ensuring that wood and paper products will be available over the long term. Moreover, the strength and resilience of the supply chain can be improved over time if businesses align themselves with other busi-nesses possessing similar values related to forest product purchasing. This creates effi ciencies, improves business productivity by leveraging the expertise of venders, and increases the value of the brand as a forest-conscious business.
“...consumers prefer to make
purchases from companies
that share their values. Failure
to take a leadership role in
this area can have negative
impacts on a company’s
bottom line.”
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HOW?
How can businesses be sure that they are buying and using wood and paper products appropriately? Although there are numerous issues related to the use of forest products, a logical place to begin is with the sourcing of raw materials. Understanding raw material sources will allow a business to harness its purchasing practices in a way that preserves or enhances–rather than degrades–forests.
Additionally, knowing the source of for-est products is critical to assessing and mitigating risks. These risks include:
• supporting trade in illegally logged wood;
• violating international treaties that regulate trade in endangered or threatened timber species;
• supporting logging practices that negatively affect sensitive eco systems and local communities; and,
• destabilizing future raw material supplies.
Although monetary costs and benefi ts can be diffi cult to quantify, the bottom line is that addressing the uncertain-ties associated with forest product purchasing helps your company gain market share, enhance brand integrity, and improve supplier and stakeholder relationships.
As you move toward purchasing forest products in a more environmentally and socially responsible way, you may fi nd it helpful to familiarize yourself with terms such as credible certifi cation, chain of custody, and High Conserva-tion Value Forests. These and other key terms are explained in the Glossary section located at the end of this book.
This guide illustrates the relationship between businesses like yours and forests and forest products. It will help you develop responsible purchasing and use practices that will ensure forests’ ability to meet market demand–now and forever.
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A sound, comprehensive purchasing policy refl ects a company’s values and objectives, and addresses a number of key issues relevant to forest management and product use. Understanding important forest-related issues and how they apply to your company will help you develop a better purchasing policy. The review below introduces key concepts that allow companies to engage in constructive dialogue with suppliers and other stakeholders on the issue of environmentally responsible purchasing of forest products.
First and foremost, a buyer must determine where its wood comes from by tracing wood sources from forest fl oor to store shelf. An effective purchasing policy should address:
• the traceability of forest products within the supply chain;
• the elimination of products derived from illegally logged sources;
• the elimination of forest products sourced from high conserva tion value forests that are not credibly certifi ed or part of a program working toward credible certifi cation;
• the elimination of forest products sourced from forests that are being inappropriately cleared or converted;
• continuously raising the proportion of forest products that originate from well-managed, credibly certifi ed forests;
• the effi cient use of forest products; and,
• wood species choices and alternative materials.
What does a responsible purchasing policy look like?
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Traceability of forest products within the supply chain
Once you have made the decision to purchase forest products in a way that is environmentally and socially responsible, the fi rst step for business procurement personnel is to trace the origin of your current products. It’s important to fi nd out not necessarily where you purchased them, but where they were actually harvested.
The issue of traceability in the forest product supply chain is paramount to improving forest management practices. Without traceability, there is no true means for assessing whether or not the forest products used were derived through environmentally responsible means.
For solid wood products, the supply chain can be relatively straightforward, so it is often possible to identify the forest of origin. Tracing pulp and fi ber products back to the native forest is more challenging, but is still possible. Identifying the native forest for other forest products is much more diffi cult, however, because many primary mills manufacture their products using raw material from a variety of forests.
It’s important to consider the degree
Steps your company can take to trace the forest products in your supply chain
[1] Set up a database that identifi es the forest of origin, the species of product used, and the volume or value.
[2] Gather the necessary data from suppliers using a questionnaire.*
[3] Assess the environmental status of each product’s origin based on the information received and classify as either “unknown and unwanted” or “known.”
*a template supplier questionnaire is available from the WWF NAFTN.
of verifi cation required to confi rm that a supplier has given accurate information about a product’s origins. For low-risk areas, a simple self-declaration from the supplier may suffi ce. In high-risk situations, the degree of scrutiny and verifi cation required will be much greater, and third-party verifi cation may be required.
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Steps your company can take to reduce or eliminate illegally logged sources from your supply chain
[1] Be aware of regions with high rates of illegal logging and trade. Adjust purchasing practices to avoid buying forest products from these areas, unless documentation reveals responsible practices.
[2] Be aware of species with high rates of illegal harvest that are, in many cases, also illegal to trade.
[3] Buy products from forest management improvement programs where producers have committed to programs that will result in a certifi able standard of forestry within specifi c timeframes such as the WWF Forest & Trade Networks (see front insert).
[4] Require documentation such as a Bill of Lading, a packing list, a Certifi cate of Origin, a Phytosanitary certifi cate, a contract, or a commercial license to ensure the wood is not harvested in contravention of local, national, or international laws. The NA-FTN compiles a list of documents that should be available to buyers from producers in countries where illegal logging is a notable problem.
[5] Ask for third-party verifi cation that the raw material was harvested, sourced, processed, and transported in compliance with local, national, and international laws.
[6] Buy products from credibly certifi ed, well-managed forests that adhere to standards of legality, have product tracking mechanisms, and are third-party certifi ed.
Eliminate products derived from illegal sources
Once you’ve determined where the products you use were harvested, the next challenge is to reduce or eliminate the purchase and use of forest products from illegal or suspect sources. Using wood harvested through these means affects your business in several ways. It makes your business an unwilling participant in the global degradation of forests and communities; it creates price fl uctuations in the U.S. forest products market that can have an impact on future purchases; and it opens up your company to criticism from vocal environmental groups seeking long-term solutions to this global problem.
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Illegal logging is defi ned as timber that is harvested, transported, processed, bought, or sold in contraven-tion of local national and/or international laws. Illegal logging or forest crime includes:
• large- and small-scale timber theft;
• transfer pricing;
• tax law violation;
• illegal aspects of timber sourcing; and,
• use of bribery or deception to violate the terms of a forest concession agreement.
The World Bank estimates illegal logging in public lands worldwide is estimated to cause annual losses in assets and revenue in excess of US$10 billion. In addition to the loss of revenue to governments and ineffi ciency of resource use, illegal logging directly threatens ecosystems and biodiversity in protected areas and parks across the world.3 Illegal logging destroys forest ecosystems, robs national govern-ments and local communities of needed revenue, undercuts prices of legally harvested forest products on the world market, fi nances confl ict, and acts as a disincentive for sustainable forest management.
Steps your company can take regarding sensitive areas
[1] Understand the land-scape by becoming familiar with the different defi ni-tions and terms developed for sensitive forest areas. (See the Glossary for more information.)
[2] Use established resources to fi nd the latest information on identifying and mapping sensitive areas.
[3] Buy products from certi-fi ed well-managed forests that adhere to standards addressing sensitive forest areas at both global and management levels.
[4] Buy products from pro-ducers committed to a forest management improvement program that will result in a certifi able standard of forestry within specifi c timeframes.
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Avoid products from valuable forests that are not credibly certifi ed
As you begin to phase out purchasing from illegal or suspicious sources, your business procurement professional should seek out products that come from areas that are certi-fi ed as well-managed forests, rather than from sensitive forest areas.
Sensitive forest areas merit special attention because of their unique ecologi-cal or cultural attributes. Such forests include areas that have high species diversity and richness, sup-port endangered species, contain old trees, pro-vide value to the communities in which they grow, and represent other unique ecological or cultural values.
WWF refers to forests that embody these unique ecological, cultural, socio-economic, and aesthetic values as High Conservation Value Forests (HCVFs). Examples of HCVFs include areas that contain rare, threatened, or endangered ecosystems; provide basic but critical ecosystem services such as watershed protection or erosion control; are fun-damental to meeting the needs of local communities; and are critical to the traditional cultural identity of local communities. While the fi rst priority is to ensure that HCVFs are adequately represented in protected area systems, many HCVFs will continue to be managed outside protected areas where the goal is to maintain or enhance the HCVF. For more information on WWF’s approach to identifying HCVFs, refer to Appendix II.
A practical approach to identifying and integrating High Conservation ValueForests into purchasing practices
Many companies are assuming the responsibility for ensuring they are not contributing to the degradation of HCVFs through their purchasing. The identifi cation of HCVFs must be done at the national or local level where the scale of data is useful and where the interests of multiple stakeholders are taken into account. IKEA, a global retailer of furniture and household goods, has developed a practical methodology in collabora-tion with WWF to help identify HCVFs. “Identifying High Conservation Values at a National Level: A Practical Guide” is being used extensively around the world by companies in such places as Canada, Eastern Europe, Russia, Indonesia, and Latin America to guide the identifi cation of HCVFs (see: www.panda.org/forestandtrade).
Steps your company can take regarding sensitive areas
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Promote credibly certifi ed forests
Seek out products that come from forests that are certifi ed as well-managed, or where management is on track toward higher forestry standards. Being familiar with chain of custody, credible certifi cation, and well-managed forests (see Resources section) will help you make informed decisions on how your purchasing practices can promote responsible wood and paper purchasing. The practice of forestry varies at the global level from no management beyond the monetary value of timber to state-of-the-art management practices that take into account economic, social, and environmental values. Many countries lack the capac-ity to enforce forestry laws and engender an environment where forest management practices do not adequately address forest sustainability or long-term viabil-ity. This lack of proper manage-ment results in poor harvesting practices that often have adverse effects on water quality, fi sh and wildlife habitat, soil stability, wild-fi re risk, community livelihoods, and the integrity of the forest ecosystem itself.
Steps your companycan take to promotewell-managed forests
[1] Develop an understanding of what makes a credible certifi cation system. There are many different systems, and some may not have features that can pro-vide reliable assurance to companies that the raw material is derived from a well-managed forest. (For more information on the characteristics of credible certifi cation systems, please refer to Appendix I.)
[2] Buy products from well-managed forests that are certifi ed to standards that can meet the threshold of credibility.
[3] Buy products from producers commit-ted to a forest management improvement program that will result in a certifi able standard of forestry within a predeter-mined time frame.
[4] Incrementally increase the proportionof forest products that originate from well-managed, credibly certifi ed forests.
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Such poor forestry practices can be addressed by adhering to voluntary third-party certifi cation standards of performance for well-managed forests. There are several certifi cation systems available, but meeting certifi cation standards can be a challenge for many forest product producers that have no history of forest management.
WWF’s Global Forest and Trade Network (GFTN) has established production-oriented Forest and Trade Networks (FTNs) as a sourcing option for buyers. These groups provide support for forest product suppliers that are progressing toward credible certifi cation. This is known as a “Step-wise” approach to certifi cation. Such groups are made up of forest management companies and primary and secondary manu-facturers that have committed to having their forest lands or supply chain certifi ed within a designated timeframe. These companies agree to develop an action plan for achieving certifi cation and have consented to periodic audits to verify practices and progress.
For further information on credible certifi cation and the steps forest suppliers are taking to progress toward certifi cation, refer to Appendix I.
Use forest products effi ciently
Businesses can make a positive impact on their operations as well as the environment by incorporating daily practices that reduce waste and maximize performance of wood and paper.
While the world’s forests have the capacity to continue to produce an array of products to meet our collective needs, global wood consumption has tripled during the last century. Technology, packaging, and disposable products have all contributed to more than a six-fold increase in global paper use since 1950.4 Yet, 80 percent of the world’s population has yet to reach the level of paper use considered necessary to meet basic needs for literacy and communication.5
“While the world’s
forests have the
capacity to continue
to produce an ar-
ray of products to
meet our collective
needs, global wood
consumption has
tripled during the last
century.”
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As demand for wood and paper continues to grow, it is critical that we use these resources as effi ciently as possible. Businesses benefi t from resource effi ciency by reducing purchase, transportation, and disposal costs. In the case of excess or wasted wood in a typical construction project, the builder often pays for the wood four times—once to buy it, once to move it to the site, once to haul the excess off the site, and then again to dispose of it.
Steps your companycan take to use forestproducts more effi ciently
[1] Use paper with lower basis weight, also known as fi ber count, to reduce the volume of wood fi ber used without signifi cantly affecting paper quality. For example, Bank of America converted ATM receipt paper from 20-pound to 15-pound basis weight, saving the company $500,000 per year in storage, handling, transportation, and labor costs.
[2] Use engineered wood products instead of solid wood to lessen wood fi ber used without compromising strength and overall performance in buildings. A manufactured I-beam, for example, uses up to 50 percent less wood than a solid wood beam.
[3] Use salvaged or reclaimed wood from old buildings that can be reused directly or re-milled for new uses. The Home Depot, for example, collected old pallets and sold them to a company that used the discarded pallets to make medium-density fi berboard.
[4] Reduce the amount of paper used in daily offi ce operations through simple initiatives such as increased electronic communication, double-sided printing and copying, and the elimination of cover sheets and title pages.
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Choose materials wisely
Businesses have a variety of materials–from wood and paper to plastics and metals–to choose from for products, packaging, building projects, and daily offi ce operations. From an environmental or sustainability perspective, this myriad of material alternatives presents several opportunities.
Even when it comes to buying wood, companies face an array of options for determining which species are the most appropriate to use. For example, there are some species, such as mahogany and ramin, that are very popular among buyers, but are endangered and subject to regulations under the Convention on International Trade in Endangered Species. There are several species alternatives for decking, furniture, building construction, and other wood-based applications that can meet or exceed expectations, without negatively affecting global forests. Instead of mahogany, other underutilized species with the look and performance of the endangered hardwood can be used.
Steps your company can take to evaluate materials choices
[1] Develop a sustainability decision framework that refl ects the mission, vision, and values of your organization. The Natural Step offers one such framework that can help companies develop their own criteria, placing forest issues within a broader context of sustainability.
[2] Employ assessment tools to evaluate product alternatives for specifi c applications, such as life-cycle analysis, which is an ap-proach for evaluating the environmental impacts at every stage of life for a particular material and its alternatives.
[3] Select wood species and grades that promote the diversity of natural forests. There are many underutilized species and grades that can meet performance needs and promote ecologically diverse forests. Companies can subscribe to a database that lists different species and whether they are subject to particular laws regulating their trade.
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The practice of purchasing lesser-known species can help improve forest quality by reducing practices that emphasize taking one species from the forest.
Appendix III lists a number of resources that can help you craft a company policy that addresses the above issues.
Trade in Endangered SpeciesThe Convention on International Trade in Endangered Species (CITES) was enacted in 1975 with 80 member countries. CITES regulates trade in live animals, animal parts, ornamental plants, medicinal plant parts, and timber species. CITES seeks to identify imperiled species and create increasingly strong legal barriers to their harvest and trade depending on their conservation status.
For more information on tree species listed under CITES, go to: http://www.panda.org/about_wwf/what_we_do/species/what_we_do/policy_and_events/cites/cites.cfm.
Seven Steps for Developing a Responsible Purchasing Policy
A socially responsible and environmentally appropriate wood and paper purchasing policy makes clear a company’s commitment and intent to staff members, suppliers, customers, and other business stakeholders. It also provides guidance for implementing new purchas-ing initiatives and reporting on progress. Many well-known companies such as The Home Depot, Lowe’s, IKEA, Staples, and Offi ce Depot have wood and paper purchasing policies that address their commitment to environmental purchasing and highlight specifi c business objectives. These policies can be viewed by visiting the companies’ Web sites.
A wood and paper purchasing policy generally spells out a company’s objectives and preferences for the environmental, social, and economic attributes associated with the forest products they purchase. The following seven steps provide companies with an incremental approach for developing a sound wood and paper purchasing policy.
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Step 1: Defi ne objectives— As is true in any busi-ness endeavor, knowing what you want to achieve is critical for success. Are you implementing a purchasing policy to ensure forest health? Do you want to be in compliance with regulatory or environmental requirements? Do you want to maintain supply chain relationships that mesh with your company’s environ-mental and social mission? Whatever the objective or objectives, in order to suc-ceed, you need to make sure that your policy goals match your company goals.
Step 2: Conduct a pre-liminary audit — Many companies have no idea how much wood and paper they actually use, particu-larly if they are not in the forest products business. An important early step is to develop an understanding of where your company uses wood and paper. In addition to knowing where and how the forest products are used in the business, you should also pinpoint how much wood or paper is used company-wide, and which tree species are used to meet your needs. Knowing
the species will aid in your search to discover the origin of your forest products.
Make sure to include daily business operations and capital improvements, as well as product lines, in your audit. A preliminary audit can reveal the com-plexity of a company’s sup-ply chain and present ways to streamline it. Conducting an audit will help identify the types of products your company consumes and introduce opportunities to improve effi ciency.
Step 3: Engage internal stakeholders — Engage your internal stakeholders, such as product purchasing staff members and others who will be responsible for implementation of company practices and policy design.
Step 4: Engage suppliers — A company’s suppliers play an integral role in the successful development of a purchasing policy that is universally followed. Sup-pliers should be engaged early in discussions that cover current company purchasing practices related to wood and paper. They will also be valuable allies
“Suppliers should
be engaged early
in discussions that
cover current company
purchasing practices
related to wood and
paper. They will also be
valuable allies during
the process of devel-
oping the policy itself.”
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during the process of developing the policy itself. A supplier that knows what you want to achieve, how you hope to achieve it, and what must be done to help you will be instrumental in achieving your purchasing goals.
Early engagement with suppliers and vendors will identify some of the constraints they face, as well as oppor-tunities for improvement. In addition, preliminary discussions with your suppliers and vendors will reveal those who are most willing to help the com-pany meet its objectives. The NA-FTN can also provide a sample question-naire that can be used as a guide for engaging suppliers in your efforts to meet the challenges of becoming a responsible purchaser.
Step 5: Engage external stakeholders — Engage external stakeholders who have an interest in your company’s practices and the design of your policy. There may be community groups and environmental non-governmental or-ganizations (NGOs) that have a vested interest in your policy. You will need to weigh this input against your company objectives and ability to develop a policy that can be implemented. Some of these interest groups may also be able to provide technical assistance.
Step 6: Design policy — Craft a comprehensive policy that builds on the knowledge gained in the previous steps. A comprehensive wood and paper policy addresses the elimination
of products derived from illegal logging and avoids products harvested from valuable forests that are not credibly certifi ed. It also promotes the purchase of products from well-managed forests and supports purchases from sources that are progressing toward certifi ca-tion. Additionally, a comprehensive policy should address the development of practices that ensure effi cient prod-uct use, and the selection of materials using logical, consistent sustainability criteria.
Elements of an effective policy include defi ning preferences for the environ-mental sourcing of materials, setting measurable goals that facilitate con-tinuous improvement, and establishing purchasing guidelines for procurement personnel and vendors. Appendix V provides a template outlining the main elements of a responsible purchasing policy.
Step 7: Review policy — Prior to mak-ing your policy public, solicit input on the policy with a set of trusted advisors, suppliers, and others to identify any problems or opportunities missed.
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Moving Forward
Developing a policy is a challenging, yet rewarding and manageable process. Keep reminding yourself and everyone involved that this effort will position your company as a consistent, values-driven organization that is innovative, envi-ronmentally conscious, and effi ciently run. Integrating responsible wood and paper purchasing practices into your business operations improves supply chain relationships, builds customer allegiance, and keeps you ahead of criticism and governmental regulation related to wood and paper purchasing.
Your company will reap benefi ts if you:
• establish internal roles and responsibilities;
• communicate your objectives;
• engage suppliers and key stakeholders;
• address key issues in a way that conforms to your objectives; and,
• create a framework for regular monitoring and reporting on the progress made as a result of implementing the policy.
By following these steps, your company will serve as a prime example of business and environmental interests working together to ensure the coexistence of healthy forests, communities and corporations.
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End Notes
1 Willard, Bob. The Sustainability Advantage: Seven Business Case Benefi ts of a Triple Bottom Line. (Gabriola Island, BC New Society Publishers, 2002), p. 27.
2 Cone Inc. 2002 Cone Corporate Citizenship Study.
3 Contreras-Hermosilla, Arnoldo. ”Law compliance in the forestry sector: an overview, Vol. 1 of 1.” WBI Working Paper. The World Bank Group Web site:http://www-wds.worldbank.org/servlet/WDS_IBank_Servlet?pcont=details&eid=000009486_20040623172158
4 The WorldWatch Institute Web site: http://www.worldwatch.org/pubs/goodstuff/paper/
5 “Forest Futures, Population Action International, 2000, as cited in The Forest Industry in the 21st Century, Page 4, Drs. S. Howard and J. Stead, WWF International, March 2001.
© W
WF-
Cano
n / M
auri
RAUT
KARI
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Making responsible purchasing work for you
Your company has taken the major step of committing to purchase forest products responsibly. You’ve defi ned corporate objectives, consulted with your stakeholders, and drafted a responsible purchas-ing policy that will help you assess your company’s current purchasing practices as well as refi ne your practices for future forest product procurement.
While this policy is meant to help your company understand the difference between “good” and “bad” sources of wood, it is up to company leadership to determine the responsible options or alternatives for the forest products procured in your everyday operations. This requires a strategy for develop-ing a company-wide under-standing of what it means to be a responsible purchaser of forest products.
Being a responsible purchaser implies that a company has a systematic approach to determine that a wood product’s source is known and desirable based on the criteria laid out in the policy.
Bringing a Purchasing Policy to Life
Keys to a successfully implemented policy include:
• cooperation between those in charge of managing the policy and those implementing it on a daily basis;
• mechanisms in place for monitoring and classifying overall forest product purchases; and,
• processes for reporting on how your company is progressing against its objectives.
Characteristics of a Responsible Purchaser
• System to evaluate sources• Cooperation between different departments• Monitoring of forest product purchases
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A successful policy can best be achieved by developing a Responsible Purchasing Program. This document introduces a tested method for creating a Responsible Purchasing Program that is based on policy objectives and that integrates responsible purchasing into everyday business operations. This implementation guide leads busi-nesses through the development of a Responsible Purchasing Program that encourages widespread adoption by staff members and vendors.
• Defi ne and Delegate Responsibilities
• Develop a Baseline
• Assess Risk
• Establish Targets
• Monitor and Verify the Supply Chain
• Report Progress
• Reward Success
Defi ne and Delegate Responsibilities
While a wood and paper purchasing policy is generally adopted by senior management, imple-mentation requires involvement from all levels of the business. Management should clarify the roles and responsibilities of different departments and ensure the coordination of actions (e.g., consis-tent communication between environmental and purchasing departments).
One crucial ingredient for seamless transition to environmentally responsible purchasing is a company-wide communications plan. Appoint a staff person to develop a communications strategy that will bolster your efforts to involve and excite employees, suppliers, and stakehold-ers about this initiative. An effective communications plan outlines internal and external target audiences, presents a call to action, highlights roles and responsibilities, delivers key messages around the initiative, and provides strategic objectives with reachable goals.
Staff members should be given the knowledge and tools necessary to understand and implement the policy. Staff training should include a clear articulation of the company’s values, environ-mental and social objectives, relevant wood and paper purchasing issues, and an overview of the policy for suppliers and stakeholders. Staff members should also be given the latest product and policy information to help them make appropriate purchasing decisions.
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Develop a Baseline
Establishing a baseline involves auditing your forest products supply chain (from forest to store shelf) to determine a number of characteristics, such as total volume, certifi ed well-managed volume, and geographical source. This task can be carried out internally by those familiar with the objectives laid out in the policy, with assistance from your company’s suppliers. The process may be time consuming based on the probability that your suppliers will need to consult their suppliers and so on, all the way down the chain, to gather information on the forests of origin. Alternatively, you could hire a third-party auditor to coordinate this effort.
In the course of gathering supply chain data, you may fi nd it benefi cial to create a spreadsheet for housing and tracking the information in order to assess the environmental status of the product as ‘known’, ‘legal’, ‘progressing to certifi cation’ ’credibly certifi ed’, and/or ‘recycled’. Not only will a spreadsheet help you keep track of what is important, it will also help you track and monitor gaps that need to be addressed.
Conducting a baseline supply chain assessment enables your company to determine the status of your existing supply chain and what you need to do to make it conform to your newly developed purchasing policy. The assessment can also prove useful for identifying and acting on any potential risks, such as rapidly phasing out a current practice of purchasing of illegally harvested forest products.
The fi nal analysis offers useful data on your volume, broken down by known sources, unknown sources, geographical location, and the existence of third-party audited sources.
Best Practice: Consult External Sources of Knowledge
A mid-sized architectural fi rm had problems getting a complete picture of the practices throughout its supply chain because several suppliers were unwilling to answer questions.
When an environmental organiza-tion inquired about their progress, company executives explained some of the barriers they had been facing. Through its experience and contacts with several government offi cials, the environmental group was able to assist the company in assessing source legality and identifying some of the valuable forest ecosystems. This information proved helpful in addressing data gaps and gave the architecture fi rm a more comprehen-sive view of its supply chain.
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Assess Risk
The baseline assessment will bring to light any “red fl ags” in your current supply chain. Glaring issues could include an inability to trace a forest product you currently use to its forest of origin, or the discovery that it comes from a country with high levels of illegal logging or suspect harvesting prac-tices. In addition to assessing risks related to purchasing policy standards, the baseline data you gathered offers the opportunity to evaluate other potential risks, such as dependence on a particular species or sup-plier, and ineffi ciencies in your supply chain.
The assessment process is best conducted internally so that business objectives remain central to the effort. It is worth noting, however, that external stakeholders can be an excellent source of information in defi ning illegal logging, identifying regions sus-ceptible to illegal logging, identifying high conservation value forests, and evaluating the comprehensiveness of certifi cation systems. (For defi nitions of these terms, see the Glos-sary/Appendix at the back of this book.)
Finally, conducting a risk assessment rapidly educates employees and company leaders about where to focus resources, when to verify that suppliers are environmen-tally responsible, and when it is necessary to or cut loose less responsive vendors loose.
Establish Targets
Knowing where your wood or paper comes from is crucial to ensuring that the forestproducts you use are environmentally sound. Equally important, this knowledge will help you position your company as a leader in the area of responsible purchasing. In order to effectively carry out your policy, you need to establish targets that will provide your suppliers with benchmarks that they can review, discuss and implement to your benefi t.
The fi rst step is to set priorities or develop targets within a company action plan. Taking a step-wise, incremental approach to this process can often be useful.
Gathering Data• Supplier information – including name, procurement code (if used), and contact details• Products supplied – generic description of product• Timber species supplied – listing of common and scientifi c names of species• Environmental status – known, legal, in progress to certifi cation, certifi ed, and recycled • Volume supplied – amount in a measurable unit, such as cubic meters or tons
Best Practice: Consult External Sources of Knowledge
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Known
Legal Source
Progressing toward Certification
Credibly Certified
UNWANTED
The Importance of Setting the Right Target A comprehensive responsible purchasing policy has many time-dependent features, such as purchasing products derived from certifi ed well-managed forests and in-creasing the percentage of forest products purchased from those progressing toward certifi cation. It is important to establish targets that challenge your company, but not so much that they create paralysis or apathy. Yet, picking the “low-hanging fruit” doesn’t help you achieve environmental leadership goals or bolster your external reputation as an innovative company. A goal that’s too lofty—or one that’s not ag-gressive enough—might set you up to fail. That is why working with your purchasing staff members and suppliers is so vital to setting targets. They can help determine reality from pipe dream.
A home construction company learned a valuable lesson when it set targets that were overly ambitious. While it earned praise and recognition from many stakeholders, the procurement staff members could not meet the aggressive timeline. The company found itself in a defensive position when it reported the results of its progress. Rather than falling further behind on its targets, the company decided to reset them. Before doing this, however, the company re-engaged suppliers, stakeholders, and its internal purchasing agents. As a result, the company was able to develop new targets without substantially damaging its corporate reputation.
The step-wise approach improves your company’s supply chain link by link, making adjustments so that it will become compli-ant with your purchasing policy. Each step hinges on knowing the source of the wood or paper and determining whether it is desirable or undesirable based on purchasing policy objectives. The approach focuses fi rst on mitigating the likelihood that your supply is derived from risky sources, such as illegally logged or uncertifi ed operations in high conservation value forests. The next step is to continually increase the percentage of product that is progressing to certifi cation or already credibly certifi ed.
The Step-wise Approach
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The targets you establish should be:
• Specifi c. Focus on a particular issue, such as a commitment to eliminate ille-gally logged wood from the supply chain.
• Measurable. As an example, use percentage-based targets, such as “Increase certifi ed content by ___ percent.”
• Achievable. Make reasonable requests that your staff members, suppliers, and other stakeholders agree are attainable.
• Realistic. Outline what can be met and when it can be met. An incre-mental or phased approach may be more effective since your suppliers probably will be unable to completely shift practices in the near term to meet your company’s immediate needs.
• Time-bound. Set dates for achieve-ment, such as “Purchase all forest products used in operations from credibly certifi ed forests within three years.”
Monitor and Verify the Supply Chain
Clear internal monitoring systems are im-portant for verifying progress toward achiev-ing policy goals. Progress can be monitored using either outside assistance or internal tools such as periodic interviews and evalu-ation forms directed to both suppliers and internal procurement staff members. The end result is timely information on the status of your company’s progress, which can help determine the challenges met and new hurdles on the horizon.
The Benefi t of Working with Existing Suppliers A mid-sized home improvement company, discouraged over the quality of its supply chain, decided that the best approach was to drop a signifi cant number of its current suppliers and to try to fi nd new suppliers that already complied with its responsible purchasing policy. However, even collectively these new suppliers could not meet some of the needs of the company or its customers. As a result, the quality and overall competitiveness of some of the company’s forest product lines suffered.
Meanwhile, some of the suppliers the company chose not to drop were making progress toward helping the company meet its policy objectives. These experiences highlight the value of fi rst working with your existing suppliers rather than trying to sidestep the process by radically altering your supply chain.
The Step-wise Approach
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Tracking systems are also useful. A tracking system can be used to trace the raw material from the forest, through the various stages of production, to the end user. Tracking each log from the forest through the supply chain helps to ensure the wood comes from desirable forests.
Credible certifi cation systems have tracking mechanisms known as a “chain of custody.” This approach involves certifying each actor in the supply chain to ensure they have procedures in place to document and provide proof that the raw material originated from a well-managed forest.
Additionally, companies should implement a system for collecting documentation that provides proof of forest products’ origins.
Such documents include:
• a copy of a license illustrating that the company has a right to operate in the forest in question;
• a management plan showing trees, dimensions, and the area where the logs were harvested;
• a Bill of Lading identifying when and by whom the wood was exported;
• relevant contracts showing that the wood was harvested and exported appropriately; and,
• customs documentation from the country of origination and import showing that all taxes were paid and the forest products were legally exported.
It is important to note that the existence of these documents is not conclusive proof that wood products were harvested legally. In countries where illegal logging is prevalent, such as Indonesia, documents are commonly forged or purchased through corrupt activities. You can help yourself a great deal by doing research on those countries believed to be engaged
The Need for External Auditors
A large-sized home furnishings retailer maintained a detailed database and records to stay on top of how its purchasing practices were evolv-ing in response to its policy. The company decided not to have an external auditor verify the results. As a result, its claims lacked credibility with outside stakeholders.
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in illegal logging and other corrupt practices. Then you can determine if or how you can purchase products from these regions and still comply with your purchasing policy. By developing a close relationship with your supplier, as well as NGOs active in the coun-try in question, you can be more certain about the legality of the products you are using.
Report Progress
In addition to establishing an action plan with targets, it is important for companies to report progress made toward these policy targets. Reporting involves reviewing the data collected during the monitoring and verifi ca-tion process and comparing it to baseline supply chain targets to determine progress. The reporting process can also help your company determine what is working and what isn’t. This will drive whether or not current practices need to be modifi ed or if you can stay the course.
Producing an annual progress report is a useful way to keep staff members and other stakeholders up to date on what your com-pany is doing to comply with the purchasing policy. By keeping stakeholders informed, a business continues to demonstrate the com-mitment illustrated in its policies.
Reward Success
The fi nal step is to be proactive and acknowl-edge notable internal and external efforts. To encourage your staff members and suppliers to make signifi cant adjustments in order to help your company reach its goals, provide incentives or other forms of recognition. This will help maintain a successful responsible purchasing program. For example, institute a “Most Valuable Vendor” program that recog-nizes suppliers who helped you achieve tar-gets, or maintain an internal reward program for those on staff who implement procedures that comply with policy goals.
Putting it all together
Implementing a sustainable purchasing policy is an important step in the progression toward becoming a responsible corporate purchaser of forest products. Although becoming a responsible purchaser is not without its challenges, the rewards are many. Purchasing responsibly positions your orga-nization as a conscientious industry leader. This moves your company in a positive direction—away from criticism and ahead of governmental environmental regulation.
“Purchasing responsibly positions your organization as a conscientious industry leader. This moves your company in a positive direction—away from criticism and ahead of governmental environmental regulation.”
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Environmental awareness helps promote stronger relationships with your suppliers by streamlining the supply chain. Solid relationships with like-minded suppliers strengthen your company as well as your brand, fostering long-term growth and success.
The four steps below will ensure that you will not only implement a success-ful purchasing policy, but streamline your business operations in the area of wood and paper purchasing:
[1] Establish where your company is today and assess the strengths, weaknesses, opportunities, and risks of your current situation.
[2] Based on your risks and baseline position, develop measurable targets and make a commitment to attain them within a particular timeframe in an action plan.
[3] Prepare internal staff by assigning responsibilities and providing the knowledge and tools necessary to integrate the key elements of the policy into everyday activities.
[4] Develop procedures for tracking how your suppliers are carrying out your policy, and how they are contributing to it and to the targets your com-pany has set. Prepare annual reports to inform internal staff and external stakeholders of your progress.
The WWF North American Forest & Trade Network is committed to working with companies like yours to facilitate the process of developing and imple-menting a responsible purchasing policy and assisting your company in achieving its policy objectives.
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Bill of Lading–A document that establishes the terms of a contract between a shipper and a transporta-tion company under which freight is to be moved between specifi ed points for a specifi ed charge. Usually prepared by the shipper on forms issued by the carrier, it serves as a document of title, contract of carriage, and a receipt for goods.
Certifi cate of Origin–The chain-of-custody and product labeling components of a credible certifi cation program are designed to support the tracking of the wood fi ber from the forest fl oor to the point of sale, providing the end customer with a trustworthy audit trail that ensures the wood they are purchasing origi-nated from a certifi ed well-managed forest.
Certain certifi cation systems provide assurances on the origin of forest products. For example, the Forest Stewardship Council eco-label can only be used on products that can be documented as having originated in a certifi ed well-managed forest. “Chain-of-custody” certifi cation provides the paper trail to verify the certifi ed origin of the wood. Similarly, the SGS Certifi cation Support Pro-gram (CSP) serves to bridge the gap between current logging practices and forest certifi cation using a formal
auditing program that provides a step-wise approach in line with the WWF Global Forest & Trade Network (GFTN). The SGS CSP provides auditing of continual improvement based on an agreed schedule and allows trading of raw material and manufactured products under a CSP Certifi cate of Origin during develop-ment and implementation of the forest management system.
Chain-of-Custody–Chain-of-Custody provides the link between the certifi ed forest and the claim about the forest on the fi nal product. It is the path taken by raw materials, processed materials and products, from the forest to the consumer, including all successive stages of processing, transformation, manufacturing and distribution. Chain-of-Custody and certifi cation are an important insurance for all parties against controversial timber being traded.
Convention on International Trade in Endangered Species (CITES)–The Convention on Inter-national Trade in Endangered Species of Wild Fauna and Flora (CITES) sets controls on the international trade and movement of animal and plant species that have been, or may be, threatened due to excessive commercial exploitation.
Glossary
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Credible Certifi cation–Forest certifi cation is a system of forest monitoring, tracking and labeling timber, wood and pulp products and non-timber forest products. WWF has been involved in the certifi cation debate from the onset and through the World Bank/WWF Alliance for Forest Conservation and Sustainable Use has developed a set of criteria for evaluating the comprehensiveness of certifi cation systems. These criteria are:
• institutionally and politically adapted to local conditions;
• goal oriented and effective in reaching objectives;
• acceptable to all involved parties;
• based on performance standards defi ned at the national level that are compatible with generally accepted principles of sustainable forest management;
• based on objective and measur-able criteria;
• based on reliable and indepen-dent assessment;
• credible to major stakeholder groups (including consumers, pro-ducers, conservation NGOs, etc.);
• certifi cation decisions free of confl icts of interest from parties with vested interests;
• cost-effective;
• transparent; and,
• equitable access to all countries.
Forest & Trade Networks (FTNs)–National and regional WWF Forest & Trade Networks (FTNs) together make up the Global Forest & Trade Network. While FTNs share similar objectives and values, the na-ture of their focus and activities varies.
Demand-oriented FTNs, also called ‘Buyer FTNs’, consist primarily of retailers, distributors and specifi ers of forest products. Buyer FTN Partici-pants are committed to the respon-sible purchasing of forest products, promoting the trade in legally produced forest products, improving the standard of forest management around the world and supporting credible forest certifi cation.
Production-oriented FTNs, also called ‘Producer FTNs’, are com-prised primarily of forest owners or managers that are working towards or have already achieved credible forest certifi cation, and forest product processors and manufacturers that are working toward the exclusion of illegal timber from their supply
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chains and greater trade in credibly certifi ed forest products. Producer FTN Participants commit themselves to a time-bound action plan for the realization of credible certifi cation and the creation of a certifi ed supply chain. Their progress toward these goals is assessed periodically by a third party.
Global Forest & Trade Network (GFTN)–The GFTN is an affi liation of national and regional Forest & Trade Networks (FTNs), and is formally part of WWF. It is active in nearly 30 producer and consumer nations in Europe, Africa, the Americas and Asia. All FTNs are fundamentally similar in their objectives and values, and each consists of companies committed to practicing or support-ing responsible forestry. Several hundred companies are Participants of FTNs and by extension the GFTN, representing a wide range of actors that include forest owners, timber processors, construction companies, retailers and investors.
High Conservation Value Forests–High Conservation Value Forests (HCVFs) are forests of outstanding and critical importance due to their high environmental, socio-economic, biodiversity or landscape values. WWF is develop-ing and extending the HCVF concept in its wider protect-manage-restore program. HCVFs comprise the crucial forest areas and values that need
to be maintained or enhanced in a landscape. WWF has developed the Global 200 ecoregions for identifying endangered marine and terrestrial habitats. It serves as a useful initial guide for identifying potential HCVFs.
Illegal Logging–Illegal logging occurs when timber that is harvested, transported, processed, bought or sold in contravention of a country’s laws. It is important to note that WWF uses the term illegal logging and forest crime to include:
• large-and small-scale timber theft;
• transfer pricing;
• breaking tax laws;
• illegal aspects of timber sourcing; and,
• using bribery or deception to violate the terms of a forest concession agreement.
Non-governmental organiza-tions (NGOs)–A non-governmental organization (NGO) is an organization which is not a part of a government. Although the defi nition can technical-ly include for-profi t corporations, the term is generally restricted to social and cultural groups, whose primary goal is not commercial.
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North American Forest & Trade Network (NA-FTN)–The WWF NA-FTN is the North American arm of the Global Forest & Trade Network. It works with major purchasers of timber and wood products who make a public, documented commitment to responsible forestry and credible forest certifi cation. As Participants in the NA-FTN, these companies phase out all trade in wood from unknown, illegal and controversial sources within 5 years, and phase in trade in wood that is credibly certifi ed.
Phytosanitary certifi cate–A phytosanitary certifi cate is a docu-ment often required by many states and foreign countries for the import of nonprocessed, plant products. Export commodities (depending on the country or state) must meet cer-tain standards or criteria outlined by the importing country or state. These plant health requirements pertain to storage pests, plant diseases, chemi-cal treatments and weeds.
“Simply Legal” sources–Simply Legal sources require the follow-ing: full traceability (that is, known); full compliance with other aspects of the purchaser’s policy; second-party checks and systems, at the minimum, to ensure the legal right to harvest is established; all relevant chain of custody documentation routinely checked by the supplier and on occasion by the purchaser; ideally, third-party verifi cation
secured of broader legal compliance and of the chain of custody from forest to fi nal product.
“Simply Known” sources–Sim-ply Known sources are: traceable to an acceptable level with respect to the level of risk (usually For-est Management Unit level); and compliant with signifi cant aspects of the purchaser’s policy.
Step-wise–The Step-wise Approach to responsible forest management is structured in phases in order to better focus activities, provide incentive, and assess prog-ress of companies working toward credible forest certifi cation. The GFTN step-wise approach includes the following phases: ‘simply known’, ‘simply legal’, ‘progressing to certifi -cation’, and ‘credibly certifi ed’.
Well-managed forests–Accord-ing to WWF, well-managed forests are harvested in such a way that the range of associated goods and services the forest provides – non-timber forest products, environmen-tal services, biodiversity, spiritual values, recreational uses and so on – are not threatened. Credible certifi cation is a means of verifying that a forest is well-managed.
World Wildlife Fund (WWF) –Known worldwide by its panda logo, World Wildlife Fund (WWF) leads international efforts to protect
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endangered species and their habitats. Now in its fi fth decade, WWF works in more than 100 countries around the globe to conserve the diversity of life on earth. With nearly 1.2 million members in the U.S. and another 4 million worldwide, WWF is the world’s largest privately fi nanced conservation organi-zation. WWF’s mission is the conservation of nature. Using the best available scientifi c knowledge and advancing that knowledge where we can, we work to preserve the diversity and abundance of life on Earth and the health of ecological systems by
• protecting natural areas and wild populations of plants and animals, including endangered species;
• promoting sustainable approaches to the use of renewable natural resources; and,
• promoting more effi cient use of resources and energy and the maximum reduction of pollution.
WWF is committed to reversing the degradation of our planet’s natural envi-ronment, and to building a future in which human needs are met in harmony with nature. We recognize the critical relevance of human numbers, poverty, and consumption patterns to meeting these goals.
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This appendix discusses how the GFTN defi nes credible certifi cation systems and the steps producers take as part of an action plan to become certifi ed within a designated timeframe.
Defi ning Credible Certifi cation
Forest certifi cation is a system of forest monitoring, tracking, and labeling timber, wood, and pulp products, as well as non-timber forest products. The system aims to provide reliable information to forest product consumers, assuring them that the products are managed according to high environmental, social, and economic standards. Discussions about certifi cation began in the early 1990s. Over the last decade, various systems have developed to meet the requirements of different stakeholders.
WWF has been involved in the certifi cation debate from the onset, and through the World Bank/WWF Alliance for Forest Conservation and Sustainable Use, WWF has developed a set of criteria for evaluating the comprehensiveness of certifi cation systems. These criteria should be:
• institutionally and politically adapted to local conditions;• goal oriented and effective in reaching objectives;
• acceptable to all involved parties;• based on performance standards defi ned at the national level that are compatible with generally accepted principles of sustainable forest management;
• based on objective and measur-able criteria;
• based on reliable and indepen-dent assessment;
• credible to major stakeholder groups (including consumers, producers, conservation NGOs, etc.);
• certifi cation decisions that are free of confl icts of interest from parties with vested interests;
• cost-effective;
• transparent; and,
• equitable access to all countries.
Based on these criteria, WWF and the World Bank have developed a tool called the Questionnaire for Assessing the Comprehensiveness of Certifi cation Systems (QAAC). This tool can be used to assess a range of systems to determine which meet the threshold of credibility that will be supported by WWF and the World Bank.
Appendix I: Promoting Credibly Certifi ed Products
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How does a producer progress toward certifi cation of a source?
WWF has outlined a series of steps producers can take to develop the man-agement and operational capacity to become credibly certifi ed. A source that is progressing towards certifi cation has the following characteristics:
• Raw material sources are fully traceable
• A system of second-party checks and mechanisms has been imple-mented to ensure legal compliance and that all relevant chain of custody documentation is routinely checked by the supplier and occasionally by the purchaser
• Ideally, a system for third-party verifi cation of legal compliance and chain of custody from forest to fi nal product has been implemented
• A public policy commitment to achieve a credible standard of certifi ca-tion has been made
• A baseline audit or appraisal to determine that the forest is certifi able has been undertaken
• A time-bound action plan to achieve certifi cation through a series of steps has been initiated
• There is participation in regular monitoring to ensure progress is being made
• Partnerships have been formed with a credible program or organization to achieve the above objectives
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High Conservation Value Forests (HCVFs) are defi ned as forests of outstanding and critical importance due to their high environmental, socio-economic, biodiversity, or landscape values. WWF is develop-ing and extending the HCVF concept in its wider protect-manage-restore program. HCVFs comprise the cru-cial forest areas and values that need to be maintained or enhanced in a landscape. HCVFs are found across broad forest biomes (tropical to boreal), within a wide range of forest conditions (largely intact to largely fragmented), and in ecoregions with complete or under-represented protected area networks.
Although originally designed as a tool to help certifi cation, the HCVF concept is being extended to more general conservation planning, including the design of representa-tive networks of protected areas and buffer zones.
WWF believes the fi rst priority is to ensure that HCVFs are adequately represented in protected area sys-tems. In practice, many HCVFs will
continue to be managed outside pro-tected areas, and although approach-es will vary in these locations (e.g., enhanced management or long-term, “no-cut” reserves), attempts should always be made to maintain HCVF values. In regions where the forest is largely degraded, HCVF management should be consistent with a forest landscape restoration strategy that addresses ecological, social, and economic objectives. Two principles are paramount: (1) HCVFs are managed to maintain the attributes that are of high conserva-tion value and (2) management employs the precautionary principle, which requires that where the effects of extraction and other management are unknown, values are ensured through a cautious approach.
WWF calls on producers, retailers, investors in the forestry, agricultural, mining, and petroleum sectors, and governments to ensure that their activities do not promote the clearing or degradation of HCVFs. For more information on WWF’s approach to HCVFs, go to: http://www.panda.org/downloads/forests/po10hcvf.pdf
Appendix II: Identifying HighConservation Value Forests
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Credibly certifi ed forests
World Bank/WWF Alliance criteria for certifi cationhttp://www.forest-alliance.org
WWF Producer Groups http://www.panda.org/about_wwf/what_we_do/forests/what_we_do/management/gftn/index.cfm
Illegal logging
WWF position on illegal logging and forest crimehttp://www.panda.org/downloads/forests/po7illegalloggingandforestcrime.pdf
World Bank/WWF Alliance, “Technologies for Wood Tracking,” http://www.forest-alliance.org
Tropical Forest Trust, “Good Wood, Good Business,” http://www.tropicalforesttrust.com/reports.asp
Estimated rates of illegal logging around the world,http://www.panda.org/about_wwf/where_we_work/europe/problems/illegal_logging/illegal_logging_country_list.cfm
Convention on International Trade in Endangered Specieshttp://www.cites.org
Valuable forest ecosystems
WWF Global 200 Ecoregionshttp://www.panda.org/about_wwf/where_we_work/ecoregions/glob-al200/pages/home.htm
WWF and IKEA High Conservation Value Forest Toolkithttp://www.proforest.net/Publication/HCVF_pub.htm
Global Forest Watch,http://www.globalforestwatch.org/english/index.htm
The World Conservation Union (IUCN), http://www.iucn.org/
Using forest products effi ciently
Metafore, Recycled wood and paper (PDF), http://www.metafore.org/index.php?p=Action+Briefs&s=32
Metafore, Salvaged wood (PDF), http://www.metafore.org/index.php?p=Action+Briefs&s=32
Appendix III:Other Resources
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Choosing materials wisely
Metafore, Wood for Building Green http://www.metafore.org/downloads/green_guide_0403.pdf
Metafore, Life cycle analysis (PDF)http://www.metafore.org/index.php?p=Action+Briefs&s=32
Metafore, Wood grades (PDF) http://www.metafore.org/index.php?p=Action+Briefs&s=32
Metafore, Wood species (PDF) http://www.metafore.org/index.php?p=Action+Briefs&s=32
Metafore, Forest Cerifi cation Resource Centerhttp://www.www.certifi edwood.org
Other forest-related issues
WWF has published many position pieces outlining current issues that affect sustainable forest management around the globe. The following position papers (in PDF format) offer insight into a range of issues.
Forest conservationhttp://www.panda.org/downloads/forests/poforestconservation.pdf
Forest protected areas http://www.panda.org/downloads/forests/po1protectedareas_ehcr.pdf
Forest management outside protected areas http://www.panda.org/downloads/forests/po3aforestmanagementoutsidepas_m149.pdf
Convention on International Trade in Endangered Species http://www.cites.org
Forest landscape restorationhttp://www.panda.org/downloads/forests/po3fl r.pdf
Forest fi reshttp://www.panda.org/downloads/forests/po5fi res.pdf
Climate change and forest carbon sequestrationhttp://www.panda.org/downloads/forests/po6forestcarbonsequestration_8qt2.pdf
Forest plantationshttp://www.panda.org/downloads/forests/positionpaperonplantations.pdf
Converting forestlandshttp://www.panda.org/downloads/forests/po8forestconversion.pdf
Converting for soy plantationshttp://www.panda.org/downloads/forests/soyfi nal_cvtq.pdf
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Converting for oil palm plantationshttp://www.panda.org/downloads/forests/positionpaperonoilpalm.pdf
Landscape approachhttp://www.panda.org/downloads/forests/po11landscapeapproach.pdf
Forests and international tradehttp://www.panda.org/downloads/forests/po12forestsandtrade_vdvo.pdf
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Appendix IV: WWF NorthAmerican Forest & Trade Network
Forest Products Policy Template[NAME OF COMPANY] Forest Resources Policy
VISION STATEMENT
As a [public/business/opinion] and global leader, [NAME] is committed to leveraging its infl uence in the marketplace to conserve, protect and restore natural resources. As a cornerstone of that commitment, [NAME] will pursue a Responsible Wood / Paper / Forest Products Purchasing Program to promote the development of markets for environmentally responsible for-est products and to manage and reduce the environmental impacts of our industry.
PREAMBLE
[NAME] recognizes that leadership in the global marketplace carries a re-sponsibility to the environment and, in particular, a responsibility to promote the responsible management, conservation, protection and restoration of the world’s forests. [NAME] is a leader in [a market/public/opinion sector that is relevant]. Therefore, [NAME] is positioned to infl uence [supply and/or demand] in the market, and thus contribute to the development of environ-mental solutions that infl uence responsible forest management. [NAME] fully supports responsible forest management practices that promote ecosystem sustainability, biodiversity and long-term environmental, social and economic benefi ts.
[NAME] will achieve this policy through the means of a step-wise approach to responsible purchasing of forest products, believing that this is a pragmatic and workable mechanism.
[NAME] will participate in the WWF North American Forest & Trade Network as [NAME] believes that this mechanism provides the most credible and transparent means by which [NAME] can communicate its commitment.
Toward these ends, [NAME] hereby establishes the following policy commitments:
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POLICY
1. [NAME] will work with all vendors and associated suppliers to trace the origin of our current products.
Explanation: Traceability in the forest product supply chain is crucial to assessing whether or not the forest products used were derived through environmentally responsible means. [NAME] will attempt to determine not just where current products were purchased, but where they were grown, taking into account the possible necessity for third-party verifi cation.
2. [NAME] will require that all vendors and associated suppliers demonstrate compliance with all legal requirements for forest management, harvest, manufacturing and trade, with third party verifi cation in areas / trades we determine as high risk.
Explanation: [NAME] will work to ensure that no market advantage is realized by entities that circumvent the law, and encourage support for forest conserva-tion, protection and environmental law enforcement mechanisms.
3. [NAME] will reduce and by [DATE] eliminate its purchase of wood, paper and other forest products from controversial source areas, including areas with violations of indigenous rights, areas of armed confl ict, and the use of genetically modifi ed trees.
Explanation: [NAME] intends not to give support to regimes and practices that have a detrimental impact on civil society or the environment. [NAME] will remain aware of controversial source areas that may be identifi ed by internal and external stakeholders, and will adopt a precautionary approach regarding the use of genetically modifi ed trees, which pose risks to native species and may cause large-scale disruptions in the ecological food web. We will not source from forests which form part of Protected Areas or Parks.
4. [NAME] will reduce and by [DATE] eliminate its purchase of wood, paper and other forest products harvested from high con-servation value forests unless these operations are credibly certi-fi ed or committed to progressing towards certifi cation within a reasonable time frame. As part of this commitment, [NAME] will also phase out purchases from forests that are currently being converted to other land uses or have been converted since 1994.
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Explanation: [NAME] intends to expedite the transition away from forest harvesting practices that lead to environmental degradation and will embrace a scientifi cally credible, land-based assessment to identify and appropriately manage forests that contain exceptional environmental and social values.
5. [NAME] will promote the appropriate and effi cient use of wood, paper and other forest products.
Explanation: [NAME] intends to contribute to efforts that maximize use of the entire fi ber resource and assist in the reduction of per capita consumption.
6. [NAME] will advocate and incorporate the use of sustainabil-ity-based criteria in selecting alternative materials.
Explanation: [NAME] intends to support the expansion of the natural resource base and promote life-cycle assessment as a metric of environmental merit.
7. [NAME] will give purchasing preference to products from credibly certifi ed, well-managed forests and those from suppli-ers that have made a commitment to progress toward credible certifi cation.
Explanation: [NAME] intends to promote the development of markets for environmentally preferable products by supporting certifi cation of best man-agement practices through the purchase of credibly certifi ed forest products. [NAME] will promote the sourcing of products from forests which are com-mitted to a time-bound and transparent stepwise process to achieve credible certifi cation.
8. [NAME] will publish and distribute to interested stakeholders an annual report, which will detail our progress in implementing this policy and commitment to continuous improvement.
Explanation: [NAME] will seek to maintain open communications and col-laborative relationships with all stakeholders interested in our environmental performance by providing standardized information about our environmental performance on an annual basis. [NAME] will seek the views of key stakehold-ers when assessing performance of this policy and related programs and in the development of new policy and targets.
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Appendix V:Sample Responsible Action Plan
An action plan represents an important element of implementing your responsible purchasing policy. Such a plan will allow you to outline your targets and the actions you plan on taking within certain timeframes. Additionally, an action plan can be useful for communicating to internal and external stakeholders what are you doing and what needs to be done concerning policy compliance.
There are four broad areas a company can address to help you comply with the overall objectives of your policy.
[1] Reduce unwanted sources.
[2] Increase the known and legal sources that comply with your policy.
[3] Increase the volume of forest products from sources progress-ing to certifi cation.
[4] Increase the volume of forest products from credibly certifi ed sources.
For illustrative purposes, Table 1 (on the next page) outlines some sample targets for the fi ctional High Sierra Furniture Company in the fi rst three years of implementing its policy. Note that Year 0 repre-sents the baseline position of the company. The percentages represent where the company wants to be at the end of each year. The company’s baseline position is as follows:
• Unknown and unwanted sources account for 45 percent of the supply chain
• The source of 25 percent of the forest products in its supply chain is simply known
• The company has suffi cient proof that 25 percent of its sources are legal
• Suppliers committed to progressing toward certifi cation account for 5 percent
• None of the forest products in the company’s supply chain come from credibly certifi ed sources
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Table 1. High Sierra FurnitureCompany Baseline and Three-Year Targets
Category Year 0 Year 1 Year 2 Year 3
Unwanted sources 45% 0% 0% 0%
“Simply Known” sources 25% 20% 5% 0%
“Simply Legal” sources 25% 50% 35% 10%
Sources progressing to certifi cation
5% 15% 30% 40%
Credibly certifi ed sources 0% 15% 30% 50%
Based on the Year 1 targets, the following are some useful steps the company can take in each of the areas during the fi rst 12 months of the policy implementation phase.
Unwanted sources– The company aims to reduce unwanted sources to zero within the fi rst 12 months. It plans to implement the following measures to meet this target:
• Address data gaps with suppli-ers that returned questionnaires lacking source information.
• Re-engage suppliers that did not respond during the baseline data-gathering phase via telephone calls and discussions regarding the questionnaire.
• Conduct face-to-face meetings with suppliers to address their concerns regarding source data requests.
• De-list suppliers that refuse to make any good faith efforts to pro-vide information on forest source.
Known and legal sources– The company aims to increase the “known sources that comply with policy sources” to 50 percent within six months and increase the legal category to 50 percent within 12 months. It plans to implement the following measures to meet this target:
• Require all suppliers of known forest products to furnish docu-ments and assurances to confi rm that their products are from legal sources.
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• Contract a consultant to prepare a handbook for purchasing staff and suppliers that describes the types of legal documentation required and where and how to obtain it.
• Arrange or participate in workshops with suppliers and external stakeholders to discuss the operational issues involved with verifying the legality of forest products.
• Establish targets with each supplier to increase the proportion of forest products that come with legal documentation.
Sources progressing to certifi cation– The company aims to increase its volume of forest products supplied by companies that are progressing toward certifi cation in a reasonable timeframe. During the fi rst year of policy implementa-tion, the goal is an increase from 5 to 15 percent. It plans to implement the following measures to meet this target:
• Request that medium-to large-scale suppliers engage in a cred-ible progression process, such as the one available through a WWF FTN Producer’s Group.
• Require some suppliers to enter into an agreement with the company to commit to certifi ca-tion within a certain time frame.
• Identify potential new suppli-ers that are current members of a WWF FTN Producer Group.
Credibly certifi ed sources– During the fi rst year of policy implementation, the company aims to increase the percentage of cred-ibly certifi ed sources from 0 to 15 percent of total sources. It plans to implement the following measures to meet this target:
• Attend at least two trade shows that focus on the product offerings of credibly certifi ed suppliers.
• Identify potential new suppliers that offer credibly certifi ed forest products.
• Revise current scoring systems for purchasing to include and give substantial weight to products that are credibly certifi ed.
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