forest stewardship council – united states fsc western hardwood markets an update on supply, coc...

Forest Stewardship Council – United States

FSC Western Hardwood MarketsAn Update on Supply, COC Options, & Drivers

June 20, 2009

FSC-certified forest in Lakeview, OregonCourtesy of Collins Pine Company

Ian [email protected]

360-379-9421 x2


Major themes

• The FSC market has changed

• Fundamental business forces are driving FSC growth

• FSC is supply limited in the West


FSC Certification

• Market-based, non-regulatory forest conservation tool

• World’s most comprehensive forest management standards

• Buyers create positive change through their purchasing

• Third-party verification of forest management practices, chain-of-custody, and product labeling

Forest Management

Chain of Custody certification

Product Labeling


Global foundation, global impact

3 chamber membershipEnvironmental, Social,

EconomicGlobal North & South

280.3 million acres certified13,469 chain-of-custody

certificates in 82 countries


What sets FSC apart: open, diverse membership and balanced, consensus-based standards and governance


Supply Chain Growth

* 2,721 total FSC chain-of-custody certificates in U.S. which is currently 6 times the # of certificates of the nearest system (SFI)

Chain of Custody Certificates – USBuilding & Furniture vs. Paper & printing

CA – 450; OR – 150; WA - 111


Certified Forest Growth

* 2,721 total FSC chain-of-custody certificates in U.S. which is nearly 6 times the # of certificates of the nearest system (SFI)

Chain of Custody Certificates - US


Total of 30.6 million acres as of June 2009

AR: 478,819

CA: 984,035

MA: 623,652CT: 7,840

ID: 669,370

IN: 150,000

LA: 582,530

MD: 81,511

ME: 3,365,701

MI: 4,570,027

MN: 6,096,827

MO: 159,583

MS: 345,854

NH: 186,297

NJ: 241,523

NY: 1,056,501

OR: 987,501

PA: 2,280,967

SC: 6,425

TN 193,423

VT: 197,651

WA: 332,841

WI: 4,977,304

HI: 34,600

NC: 1,896,140

FSC-certified forestland in the US


How FSC works

• Set standards (IC)Forest

managementChain-of-custody

• Accredit certifying bodies (ASI)

• Authorize product labelling (GD)


FSC-certified product origins

FSC-certified wood and pulp can originate from:

• FSC certified forests (FM)

• Post consumer recycled content

• Combination of FSC-certified wood fiber, recycled content and other ‘controlled’ sources (5 key screens).


The Label

The FSC check tree logo identifies FSC-certified products

These FSC Product groups contains a mixture of FSC certified material and other controlled sources

This FSC product group contains 100% FSC certified materials

This FSC product group contains 100% post-consumer reclaimed material


Certification Roles

• FSC

• Certifiers

• Group Manager (group rules changing)

• Forest or Supplier (FM or COC)


COC Certifiers

• SCS

• SmartWood

• SGS

• Bureau Veritas

• GFA/American Green Business

• Sustainable Northwest (group only)


Claim Options

• Transfer system• Easiest administratively

• Percentage system• 70% minimum on solid products

• 50% on chip and fiber through 2009

• Credit system• No minimum threshold

• Based on conversion factors


US marketplace trends• Fortune 500 via brand value (McD)/risk

reduction (IKEA)

• Critical mass of FSC-labeled products (5%?)

• Virgin and recycled paper

• ENGO engagement in consumer marketing

• National branding and tools

• Group certification a la NNRG

• Stepwise approaches a la NWFA

• Lacey Act amendment

• USGBC/LEED MRc7 benchmark

• FSC Northwest – Supply analysis/market development


BUILDING• LEED, BuiltGreen, Earth Advantage, Build It

Green• Home Depot, Lowe’s, regional suppliers• NWFA RPP• Columbia, Collins, Potlatch, US States

PAPER• Williams Sonoma, REI, Limited Brands• Staples, Kinkos, Scholastic, HSBC• Domtar, Mohawk, Grays Harbor, NewLeaf

PACKAGING• Tetra Pak, Curtis, others

FURNITURE• Crate & Barrel, Walmart, Pier One

OTHER• Guitars: Gibson, Martin, Taylor, Fender

US Market Leaders


FSC is a business strategy

Invest in strategy and at least one staff person

Get them involved in networks*

Think in terms of differentiation – you are marketing a new product

Offer regular product lines

Position for new product flows (OESF/PC, NCF/Pref Pros, ODF?)

Incentives have to flow to forest managers


Resources

• www.fscus.org

• www.fsc.org

• www.fsc-info.org

• www.nnrg.org

• [email protected] 360-379-9421 x 2


WOOD IS GREENWOOD IS GREEN

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