0343-A1
David Cartwright[1]
This submission to the XII World Forestry Congress is based on a report prepared by the author at the request and with the support of the C.P. Loewen Family Foundation Inc. The objective of the work undertaken was to capture the current state of, and further opportunities for, responsible wood sourcing and utilization for the wood-processing industry, with particular emphasis placed on the secondary sector of this industry.
The paper reviews the environmental movement’s global strategy and its accomplishments. An analysis of the primary forest industry’s response follows in terms of how it has modified its forest management practices in response to the marketplace pressures for increased protection of the environment. The mechanisms providing proof of these changes are analysed and defined. Emphasis is placed on the North American forest industry, particularly British Columbia, Canada. By identifying and defining marketplace reactions it was possible to suggest options available to the secondary wood manufacturers wishing to practice responsible wood utilization.
A responsible wood utilization programme requires the use of raw wood material originating from a forest managed on a sustainable basis that adheres to an acceptable certification system. Compliance with the selected sustainable forest management programme should be certified by an independent third party.
Responsible wood utilization requires proof of an efficient industrial process in which efforts have been made to minimize product wastage, implement a pollution control programme, and maximize the recycling of waste product or its conversion into useable energy.
A corporate policy should outline the steps taken to address environmental market pressures, particularly the threat of boycotts of the larger chain retail outlets.
Increased disposable incomes and higher levels of education have resulted in a growing concern for the environment that we live in, particularly in the more developed countries. The ability to communicate verbally and visually, on an ever-increasing global scale, has provided the means to make large segments of the population aware of the rapid and far-reaching changes to their physical environment. Forests, particularly their management and the harvesting of the resources that they offer, have become one of the key focuses of public attention. The environmental movement can take some credit for the changes in cultural values and beliefs about natural resources, which have, in turn, resulted in increased public pressure to preserve and protect forest ecosystem function.
In 1987, the United Nations World Commission on Environment and Development stated, in the ‘Brundtland Report’, that "the environment does not exist as a sphere separate from human actions, ambitions, needs - and attempts to defend it in isolation from human concerns have given the very word ‘environment’ a connotation of naivete in some political circles". This linkage between the needs of people and the future of the earth’s natural environment was subsequently recognised with the term sustainable development. The Commission defined sustainable development as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs."
The United Nations Conference on Environment and Development (Earth Summit) held in Rio de Janeiro, Brazil, in 1992 resulted in international acceptance at the highest political level of the linkage between human welfare and conservation of the environment.
In terms of forests a number of principles were stated at that conference including "The subject of forests is related to the entire range of environmental and development issues and opportunities, including the right to socio-economic development on a sustainable basis".
The terms "sustainable development" and "sustainability" are commonly used today in conservation and economic literature. The term "sustainable forest management" has received considerable attention and there has been much discussion on what the correct definition of this term should be. The concept most in line with the United Nations principle is "increased human welfare and aggregated benefits from the forests". This is closely aligned with FAO’s Strategic Plan for Forestry that provided the following objective "to enhance human well being through the sustainable management of the world’s trees and forests".
However, the recognition by the forest industry of the need to be more environmentally responsible took time to develop. The well funded, well organised, often confrontational, environmental movement was instrumental in changing the views and practices of this industry. Today it is generally accepted that forests should be managed on a sustainable basis following acceptable certified management systems, that forest products should be processed in an environmentally responsible manner, and that proof of these initiatives must be provided to the marketplace.
The "war in the woods" in the Pacific Northwest of North America was conventionally, and simplistically, seen as two coalitions with competing and polarised visions. On the one side were forest industry officials and workers, rural communities and forestry professionals defending industrial forestry, private property rights and a liberal capitalist political economy. On the other side were environmentalists promoting ecoforestry, communal forms of land tenure and participatory democratic institutions.
In British Columbia, Canada, the environmental movement sought to influence how the provincial government managed the forests under their jurisdiction by drawing public attention to key issues, often in a confrontational manner. In the US Pacific Northwest the movement concentrated on the protection of the northern spotted owl habitat and the recovery of several subspecies of salmon through the legal system.
In the early 1990’s the strategy of the environmental movement moved beyond the traditional strategy of influencing government through court action. It turned to the marketplace and began a concerted effort to influence consumer purchasing decisions in an effort to pressure corporations in their decisions affecting forest management practices.
Led by Greenpeace International, it first targeted key European consumers of British Columbia forest products by threatening a boycott of all products produced from raw materials originating from non-sustainable forests, particularly the coastal temperate forests. Following its success (in the form of a growing awareness of the issues and increased funding) it was then applied in the United States. The strategy targeted the largest US based retail outlets including The Home Depot, Lowe’s Companies Inc., Wickes Lumber, 84 Lumber, Centex Homes and Kaufman and Broad Builders.
The result of this "battle of the marketplace" has been more successful with the retail sector than with customers. In an effort to avoid confrontation most of the larger retail chains have now implemented programs that address the environmental movements demands. While the impact of this program on actual purchasing decisions was considered to be limited, the threat has provided the impetus needed by North American forest companies to modify their forest management practices in order to maintain market access for the products harvested from these forests.
By threatening a boycott of products sold through the large retail outlets in North America, the environmental movement affected the marketplace. While wood based products were the key target all products marketed through the chains were potentially impacted. In the late 1990s most of the larger retail chains had announced procurement policies that would phase out the purchase of wood originating from endangered forest types around the world.
In response to this change in the marketplace elements within the forest industry began to implement environmentally responsible programs. The concept of sustainable forest management is now the stated goal of the North American forestry industry. It has been vital in helping the industry meet the expectations of the marketplace by addressing the need to be environmentally responsible while retaining financial responsibility. This has had a significant impact on how forests are managed, forest products processed and the resulting products marketed.
The response to the growing awareness of the need to protect forest ecosystems has been far reaching both in terms of how forests are managed as well as how managers perceive this need. The principal change is the acceptance of the concept of sustainable forest management and the certification of forest management practices. However, there are other changes that have been and are being implemented by the forest industry in an effort to address the need to be seen to be practising responsible wood utilisation. These include waste minimisation programs, re-use and re-cycling of waste products, and the reporting of factual and accurate accomplishments and results to the marketplace and the customer.
Almost without exception, the primary forest companies have now implemented programs that lead towards the certification of their products. Secondary wood processors who manufacture products from materials purchased from a certified primary producer are also able to gain recognition for their products in the marketplace.
Sustainable forest management has received recognition in the marketplace as the acceptable goal for forestry. Canada was a global leader in terms of the development of a national standard for sustainable forest management. There are a variety of systems that accredit, standardise and certify sustainable forest management programs. At this time there is not yet a single system that is universally accepted by the leading forest product producers in Canada nor, for that matter, in the United States. Given that there is no universally accepted sustainable forest management program - and most likely there never will be given the diverse nature of the resource base and operating environment - it behoves each company to assess its particular situation. The source of the raw material utilised and the markets serviced are instrumental in the selection of the most appropriate sustainable forest management program.
According to the January 14, 2002 Coalition certification status report - which reports on the year ended December 31, 2001 - almost 93 million hectares of forest land across the country, representing an annual allowable cut of more than 94 million m3, have been certified. This represents over 52% of Canada's annual harvest and over 75% of Canada's managed forestlands.
The certification of forest products represents the principal marketplace interactive component of the overall process. It is this interaction with the consumer that can have a significant impact on the marketing decisions of wholesalers and on the buying decision of the customer.
If it is possible to certify a system for tracking the wood product from the forest to the marketplace (chain-of-custody) a label can be applied to the product informing consumers that the wood used originated from a certified primary wood producer. The tracking of the chain-of-custody is a technical operation that can vary from the very simple to the very complex. It requires that certified material be physically segregated from uncertified material. Upon completion of the chain-of-custody audit, the secondary manufacturers are certified and allowed to affix an ‘ecolabel’ to the certified product.
Both the primary and the secondary wood manufacturing sectors in British Columbia and other sectors of North America have, for some time, also emphasised waste reduction throughout the range of manufacturing steps. One of the more effective forms of waste minimisation is the increased use of smaller sections of wood products.
The emphasis on pollution control in the solid wood industry has tended to be placed on air, water and soil contamination. The reduction of wood waste has resulted in less material entering landfill sites. This is further decreased as a higher percentage of this waste is burned to generate heat and energy that is used in the manufacturing process. More sophisticated wood and waste burning systems have resulted in decreased contaminants being released into the air.
In Canada and other parts of the world there is a growing demand for recycled solid wood. Traditionally the demand has been for hardwood and softwood flooring and the larger sized timbers originating from older buildings that are scheduled for demolition. There is now a growing interest in other recycled wood products that include wooden pallet material, used plywood, railroad ties, telephone poles, barn boards, decking, siding and other products.
There are numerous possible definitions of responsible wood utilisation. A professional forester implementing a sustainable forest management program may have a definition that tends to concentrate on the maximum extraction of the raw material from the forest in a manner that assures the protection of the environment. A sawmill manager may consider that the definition of responsible wood utilisation should incorporate the concepts of log optimisation, waste minimisation, a safe and healthy work environment, pollution minimisation and the recycling of waste materials. A secondary wood processor may include in the definition raw material originating from a sustainably managed forest, high recovery factors, minimisation of pollution and the recycling of all waste products. An organised environmental group may place a greater emphasis on the protection of social values, wildlife, bio-diversity and the protection of old-growth forests.
The consuming public’s definition of responsible wood utilisation will, in all likelihood, tend to collectively reflect the messages that are being delivered in the marketplace by interested groups. The groups that appear to be most influential in the marketplace decisions at this time include a select group of retailers, organised groups that represent the environmental movement, and, more recently, organised groups that present the wood industry’s point of view.
The elements of a responsible wood utilisation program for a manufacturer of wood products covers variables that have an impact on the full life cycle of the product from the time it is harvested until its useable life has been completed and it is ready for recycling or disposal.
From a secondary wood processors perspective, the raw wood material used in the manufacturing process should originate from a forest that is managed on a sustainable basis. The sustainable forest management program should adhere to an accepted certification system. Adherence to the selected sustainable forest management program should be, preferentially, certified by an independent, qualified third party.
A claim, in the marketplace, of adherence to a responsible wood utilisation program has certain requirements. One of these is that the customer be provided with assurance that all products originate from raw material harvested from sustainably managed forests. A chain-of-custody program can provide the necessary assurance and can minimise the risk of unapproved raw material entering the manufacturing and re-manufacturing processes. A guarantee of this compliance can be provided in the form of a stamp, logo or a label.
Responsible wood utilisation also requires proof of an efficient industrial process in which all efforts have been made to minimise product wastage, maximise the recycling of waste product or its conversion into useable energy. It should be a process that has made every effort to minimise pollution of the environment including air and waterborne pollutants.
There is an increasing awareness of the need for manufacturers to be seen to be responsible throughout the life of the product including when it reaches the end of its useable life. Where possible company programs should include the acceptance of discarded products and the recycling of the materials or their disposal in an environmentally friendly fashion.
A final component of a responsible wood utilisation program is a policy that defines how the company will interact in the marketplace with the customer and the consumer. The marketing plan should include a policy statement that defines responsible wood utilisation and a comprehensive review of the steps taken by the company to attain this goal. Corporate transparency is an essential component of this program.
Companies involved in the forest and the wood products industries have one overriding interest: to remain a viable and competitive player in the marketplace. One of the first responses to the complex and ever changing challenges is the need to define "which wood to use" and, once this is done, define "how to use the wood". The growing availability of wood substitutes further complicates this decision. The marketplace needs answers to these and many other questions. To remain competitive, manufacturers must have a clear understanding of the customer’s requirements and desires. They must try to understand the forces that influence the decisions made by the retailers and their customers. The elements of a responsible wood utilisation program should reflect, where possible, these marketplace needs.
|
[1] Independent consultant,
2027 West 36 Ave., Vancouver, British Columbia, Canada V6M 1L1. Tel: (office) 604 891 1270; (residence) 604 266 0158; Email: [email protected] |