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Friday, 12 July 2013
FSC delivers diverse business value

(© George C Gress, The Nature Conservancy)© George C Gress, The Nature Conservancy

July 12, 2013

Early in the development of LEED v4, there was an aggressive effort by some to lower standards for forest products. Since “all wood is good,” these folks argued, all wood should be equally treated for credit in LEED. FSC recognizes the many inherent potential environmental benefits of wood but sought to ensure that, when it comes to raw material extraction, only leadership standards with key environmental requirements should be recognized. We are glad the USGBC membership overwhelmingly agreed.  

Now that LEED v4 standards are settled, an orchestrated campaign has emerged to ban LEED in state and federal government capital projects. And one tactic of the campaign is to raise questions about the benefits of FSC certification.  Because stakeholders have been asking us for a response, we have developed a brief summary about some of the business benefits of FSC certification: 

  • FSC helps to protect forests for future generations. Among other distinctive and critical standards requirements, FSC is the only certification system that prohibits conversion of natural forests to plantations or non-forest uses. FSC clearly protects high conservation value forests, including rare old growth. For companies committed to responsible forest management, FSC is a unique and important tool to achieve their objectives. 
  • In a recent survey of FSC-certified companies, 98 percent of respondents (n=4,595) said they plan to keep or renew their FSC certification going forward. Among the companies that know FSC best, there is clear business value. 
  • A recent study by a former harvest operator at Weyerhaeuser found that FSC would harm the timber industry because it “reduced the acres available for timber harvests” and reduced “operating flexibility” for forest managers. The purpose of a certification system is to establish a set of standards that represent responsible management. FSC requires much more than legal management alone, including larger buffers along streams, set-asides to protect rare old growth forest and endangered species protection. These requirements frequently result in fewer trees being harvested and more ecosystem structure, or “natural capital,” left intact. 
  • The business case for FSC is not built on volume of fiber or board-feet of logs alone. These factors matter, but they are only a piece of the value a landowner can generate. Access to markets, enhanced reputation, reduced supply chain risk and new customers are other benefits of FSC. These benefits were not considered in the study above, nor were the values associated with ecosystem services, such as clean water to drink or air to breathe. In the Southeast, family forest owners are gaining access to markets they would not otherwise have, and in many cases, they are receiving premiums for their FSC-certified wood and fiber.
  • A recent article in the New York Times explores how two companies – TetraPak and Office Depot – create value by using FSC. And with two thirds of its fiber use in 2012 from FSC certified or recycled sources, Kimberly-Clark has made FSC a central part of its business strategy.   

As a leadership standard, we do not expect that every forest will earn FSC certification. Like LEED, FSC intentionally sets the bar high.

Competition is what FSC is all about. We use the power of the market to promote responsible forest management. FSC certified companies use their certification to differentiate themselves and compete as leaders, many with good success. But competition breaks down where information is imperfect. If people are misled to believe that all certification systems are equivalent, or to believe that FSC is all cost and no benefit, competition falters.  

Ultimately FSC forest management goes well beyond legal requirements alone. That costs money – both in terms of audit costs and “reduced acres available for timber harvests.” Like organic food, FSC-certified products can cost more to produce. But the higher level of social and environmental performance drives huge business value to thousands of businesses around the world. That is the reason FSC continues to experience dramatic and enduring growth.