Welcome to the PEFC Annual Report 2009. In addition to the statutory information containedin this year’s Annual Report, we have sought to provide a flavour of the various activities that PEFC hasbeen engaged in over the past year.Ensuring that the PEFC scheme complies with influential government and private sector procurementpolicies is a key priority so regular engagement with policy makers is vital – see pages 10-13 for furtherdetails.PEFC UK also takes its role as one of the PEFC family’s twenty five endorsed schemes very seriously.For more information on our standard setting and policy development work – see pages 14-15.Finally, as certification is a voluntary market-based instrument to improve the management of theworld’s forests, we recognise that growing demand for certified products must be a priority if we areto add value for our members who have invested in the programme through the notification fee. Thehighlights of our market outreach programme are summarised on pages 16-17.
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N G S U S T A I N A B L E F O R E S T M A N A G E M E N T Promoting Sustainable Forest Management and Invitation to the 8th Annual General Meeting, 23 June 2009 at the Hotel Novotel, London Tower Bridge and reception aboard the Lady Daphne, moored at St Katharine’s Dock, London EC3 PEFC UK Limited Jupiter House, High Street, Tattenhall, Cheshire, CH3 9PX United Kingdom Telephone 01829 770438 Email [email protected]Web www.pefc.co.uk PEFC - 16-1-1 PEFC UK Ltd
Transcript
p r o m o t i n g s u s t a i n a b l e f o r e s t m a n a g e m e n t
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Promoting Sustainable Forest Management
and invitation to the 8th annual general meeting, 23 June 2009 at the Hotel novotel, london tower bridge
and reception aboard the lady Daphne, moored at st Katharine’s Dock, london eC3
or alternatively if you wish to send recorded apologies:
pefC uK limited
High street
tattenhall
Cheshire CH3 9pX
telephone: 01829 770 438
Web: www.pefc.co.uk
a g e n D a
1 apologies received
2 to adopt the minutes of the seventh annual general
meeting held on the 8th July 2008 at the neC
birmingham (see inside back cover)
3 matters arising
4 to receive the Chairman’s report (see page 4)
5 to adopt the unaudited accounts for the year ending
31st July 2008 (see pages 5-9)
6 to consider a verbal report on the current financial
position, as at the date of the meeting
7 to appoint mmg Chartered accountants 78-84 bell
street Dundee DD1 1rQ as Company secretary and
reporting accountants and authorise the Directors to
fix their remuneration
8 to receive a verbal update on the present membership,
Chain of Custody certificates, logo usage licence
contracts and notification of Certification bodies
9 to receive a verbal report on the current status
and role of the pefC uK Certification scheme for
sustainable forest management
10 to review the re-appointments of the Chairman and
Directors
11 to conduct a general discussion on matters and key
issues related to the present and future activities of
pefC uK ltd
12 any other business
13 Date of the next annual general meeting.
notice of the 8th annual general meeting of
pefC uK limited 3.00pm, tuesday 23 June 2009
all members of pefC uK ltd are invited to the 8th annual general meeting which will
be held at the novotel london tower bridge Hotel, 10 pepys street, london eC3.
P E F C U K L T D a n n u a l r e p o r t 2 0 0 9
4
We in the uK are proud to have played a part in this success
story. in february, pefC uK reached the milestone 1000 chain
of custody mark – 20% of the global total. there has been a
corresponding growth in demand for the use of the pefC logo
with over 700 licences now being issued to uK companies.
government procurement continues to be a key factor in driving
demand for sustainable timber. We were therefore delighted to
learn in December, that following a detailed bi-annual review of
forest certification systems by the government’s Central point
of expertise on timber (Cpet), the uK government confirmed
that pefC sustainable forest management certification continues
to provide an assurance that its certified timber-based products
originate from legal and sustainable sources. the olympic
Delivery authority followed Cpet procurement advice so it is
therefore reassuring that all the timber used in 2012 london
olympics projects will be sourced from responsibly-managed
forests certified to either the fsC or pefC schemes.
the pefC uK Certification scheme for sustainable forest
management was re-endorsed by pefC Council last year.
the revision of the uK national forest standard is now being
prepared by the forestry Commission and during the summer
months of 2009, the consultation process with all stakeholders
will continue. the requirements of the revised forest standard
will in turn be fed into the uK Woodland assurance standard,
which is the central building block of the pefC uK Certification
scheme.
the introduction of the notification fee in 2008, which is levied on
all Chain of Custody holders, has meant that pefC uK’s financial
position has been significantly improved. although we made a
small trading loss last year, the forecast of income now covers
all the anticipated outgoings which include the cost of operating
the business and meeting our international obligations in relation
to the fees which pefC uK is required to pay pefC Council.
in addition to the monies we raise through the notification fee
to finance our activities, pefC uK is indebted to the finnish
forest foundation and pefC in both norway and sweden for
their generous financial contributions towards our marketing and
communications programme.
it has been another busy year on the communications front with
pefC strengthening its marketing and communications resources
through the appointment of Collins scott marketing at the end
of 2008. more information about these activities can be found
later in the report.
i would like to express my appreciation for all the hard work
which the board has devoted to our affairs over the past year.
the board met on four occasions during the past twelve months
and individual Directors have also represented pefC at many
events and meetings throughout the year. i would also like to
express my thanks to both Heritage envelopes and antalis for
supplying complimentary stationery, enabling us to ensure that
all the materials we use are from pefC-certified sources. finally,
i would like to thank Willie Walker and Hilary Khawam for their
hard work during the year.
agenda item 4
the Chairman’s report
as the tenth anniversary of pefC’s establishment approaches, it is perhaps
worth reflecting how far the organisation has come and how much it has
achieved. since its inception in 1999 as the pan european forest certification
scheme, membership has grown from the original eleven founding european
countries to become a truly global scheme encompassing thirty four countries
on four continents; with endorsed schemes accounting for 220 million
hectares of certified forest. the number of chain of custody certificates is
approaching 5,000 and over 30,000 logo licences have been issued.
Peter Latham Chairman pefC uK ltd
p r o m o t i n g s u s t a i n a b l e f o r e s t m a n a g e m e n t
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pefC uK limited (a company limited by guarantee)
registered number: sC209443
Chairman
peter D l latham
Directors
Wb Walker
g skinner
prof Hg miller obe
Jf bardsley
pDl latham
rn bradshaw
(see biographies on page 18)
Secretaries and Reporting Accountant
David Jt mcKenzie Ca
unit 1, James Keiller buildings
32-34 mains loan
Dundee DD4 7bt
Bankers
the royal bank of scotland
36 st andrew square
edinburgh eH2 2Yb
Solicitors
anderson strathern Ws
28 Castle street
edinburgh eH2 3pX
Registered Office
unit 1, James Keiller buildings
32-34 mains loan
Dundee DD4 7bt
National Secretary’s Office
Jupiter House
High street
tattenhall
Cheshire CH3 9pX
agenda item 5
unaudited accounts for the Year ending 31st July 2008
Directors’ report
the directors present their report and the unaudited financial statements for the year ended 31 July 2008.
Statement of directors’ responsibilities
Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of the surplus or deficit for that period.
in preparing those financial statements, the directors are required to
l select suitable accounting policies and then apply them consistently
l make judgements and estimates that are reasonable and prudent
l state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements
l prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
the directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time, the financial position of the company to enable them to ensure that the financial statements comply with the Companies act 1985. they are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the detection and prevention of fraud and other irregularities.
Principal activities and review of the business
the company, which is limited by guarantee, has been formed to establish a certification system for woodlands and work processing wood products and to promote woodlands and wood products.
Future developments
the Company will continue to operate in the promotion and development of sustainable forestry within the uK and will continue to encourage the use of pefC certified timber and timber products through certified Chain of Custody. the programme to improve market recognition of the pefC programme within the uK has continued. the revision of the pefC uK scheme for sustainable forest management has been re-endorsed by the general assembly pefC in 2008.
p r o m o t i n g s u s t a i n a b l e f o r e s t m a n a g e m e n t
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Directors
the directors who served during the year and up to the date of this report are listed on page 5.
Accountant
David Jt mcKenzie, Chartered accountant, is retiring and does not offer himself for re-appointment. the Directors wish to thank him for
his work over the years.
Small company special provisions
the report of the directors has been prepared in accordance with the special provisions of part Vii of the Companies act 1985 relating to small companies.
this report was approved by the board on 4 february 2009 and
signed on its behalf by Wb Walker, Director.
agenda item 5
unaudited accounts for the Year ending 31st July 2008
P E F C U K L T D a n n u a l r e p o r t 2 0 0 8
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accountant’s reportaccountant’s report, to the directors of pefC limited, on the
unaudited accounts.
in accordance with the engagement letter dated 17 august 2004,
and in order to assist you to fulfil your duties under the Companies
act 1985, i have prepared the accounts of the company on pages 7
to 9 from the accounting records and information and explanations
given to me.
this report is made to the Company’s board of Directors, as a
body, in accordance with my engagement letter. my work has
been undertaken to enable me to prepare the accounts on behalf
of the company’s board of Directors and for no other purposes.
to the fullest extent permitted by law, i do not accept or assume
responsibility to anyone other than the company and the company’s
board of Directors, as a body, for this report.
i have carried out this engagement in accordance with best practice
guidance issued by the institute of Chartered accountants of
scotland and have complied with the ethical guidance laid down
by the institute relating to members undertaking the preparation of
accounts.
You have acknowledged on the balance sheet for the year ended 31
July 2007 your duty to ensure that the company has kept proper
accounting records and to prepare accounts that give a true and
a fair view under the Companies act 1985. You consider that the
company is exempt from the requirements of an audit for the year.
i have not been instructed to carry out an audit of the accounts. for
this reason, i have not verified the accuracy or completeness of the
accounting records or information and explanations you have given
to me and i do not, therefore, express any opinion on the accounts.
David Jt mcKenzie
Chartered accountant
unit 1, James Keiller buildings
32-34 mains loan
Dundee DD4 7bt
4 February 2009
for the Year ending 31st July 2008
p r o m o t i n g s u s t a i n a b l e f o r e s t m a n a g e m e n t
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balance sheet as at 31 July 2008
Note 2008 2007
£ £ £ £
Fixed Assets 3 - - - -
Current Assets
Cash at bank 18,494 25,578
Debtors 58,441 40,201
76,935 65,779
Current Liabilities
Creditors: amounts falling due
within one year 2 42,454 8,281
34,481 57,498
Net Current Assets
Net Assets 34,481 57,498
Capital and Reserves
revenue reserve 4 34,481 57,498
Surplus Funds 34,481 57,498
the directors are satisfied that the company is entitled to exemption under section 249a(1) of the Companies act 1985 and that no member
or members have requested an audit pursuant to section 249b(2) of the act.
the directors acknowledge their responsibilities for:
i) ensuring that the company keeps proper accounting records which comply with section 221 of the Companies act 1985; and
ii) preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its profit
or loss for the financial year in accordance with section 226 of the Companies act 1985, and which otherwise comply with the requirements
of this act relating to accounts, so far as applicable to this company.
the accounts have been prepared in accordance with the special provisions relating to small companies within part Vii of the Companies act
1985.
Wb Walker Director
4 February 2009
agenda item 5
unaudited accounts
P E F C U K L T D a n n u a l r e p o r t 2 0 0 9
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Accounting policies
the accounts were prepared under the historical cost convention and in accordance with the financial reporting standard for smaller
entities (effective January 2005)
the company has taken advantage of the exemption in frs1 from the requirement to produce a cash flow statement on the grounds
that it is a small company.
Turnover
turnover represents subscriptions and donations received from members in support of the company.
in the year to 31 July 2008, none of the company’s turnover was derived from markets outside the united Kingdom (2007 - none)
Tangible fixed assets and depreciation
tangible fixed assets, other than freehold land and buildings, are depreciated over their anticipated useful lives at the following
annual rates.
office equipment 25% straight line
Company limited by guarantee
every ordinary member of the company undertakes to contribute to the assets of the company in the event of its being would up while
he is a member or, within one year after he ceases to be a member, such amount as may be required not exceeding £1.
Deferred Taxation
provision is made for taxation deferred as a result of material timing differences between the incidence of income and expenditure for
taxation and accounts purposes.
profit and loss account for the year ended 31 July 2008
Notes 2008 2007
£ £
Turnover 264,342 89,295
administrative expenses 288,468 68,043
Operating Profit/(Loss) (24,126) 21,152
interest receivable 1,109 700
Profit/(loss) on ordinary activities before taxation (23,017) 21,952
taxation 0 1,267
Retained Profit/(Loss) for the year 4 (23,017) 20,685
1
notes to the accounts for the year ended 31 July 2008
P E F C U K L T D a n n u a l r e p o r t 2 0 0 8
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p r o m o t i n g s u s t a i n a b l e f o r e s t m a n a g e m e n t
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p r o m o t i n g s u s t a i n a b l e f o r e s t m a n a g e m e n t
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2
3
4
5
2008 2007
£ £
Creditors: amounts falling due within one year
other Creditors 46,412 1,000
Fixed Assets
Cost
as at 1 august 2007 - 1,716
additions -
Disposals 1,716
As at 31 July 2008 - -
Depreciation
as at 1 august 2007 858
additions - -
Disposals - 858
as at 31 July 2008 - -
Net Book Value
at 31 July 2008 - -
at 31 July 2007 - 858
Revenue Reserve
at 1 august 57,498 36,813
retained profit/(loss) (23,017) 20,685
At 31 July 34,481 57,498
Related Party Transactions
one of the directors, William b Walker, has received a payment of £39,000 as a result of his work as national secretary (2007 - £20,500).
Directors are able to reclaim legitimate out-of-pocket expenses.
notes to the accounts continued
agenda item 5
unaudited accounts continued
The drive for legal and sustainable timber
illegal logging accounts for nearly three-quarters of log
production in indonesia and around a half of all the
logs that come out of Cameroon. We all know that
deforestation is associated with around 18% of
global greenhouse gas emissions.
the loss of revenue due to illegal logging directly
costs governments $5 billion, and the economies
of producing economies $10 billion annually.
these figures are quite jaw dropping and they
probably only touch on the true effects of the
problem. they don’t provide us with
a full appreciation of what happens
across the piece, because forests are
complex systems, but they hold our
natural environment in balance.
BIODIVERSITY
at the core of what we’re talking about here is the destruction
of entire ecosystems. 80% of terrestrial biodiversity is housed in
forests. they are key to the survival of millions of people- including
some of the very poorest.
these systems matter because plants and wildlife power the
world’s ecosystems. they purify the air we breathe. they provide
us with the food we eat and with the water we drink. about 4.6
billion people depend for all or some of their water on supplies
from forests.
above all, this matters because forests can help to regulate our
climate. the importance of forests as carbon sinks across the
globe is clear: they have potential to store 638 gigatonnes of
carbon. that’s more carbon than the entire atmosphere.
CLIMATE CHANGE
Conserving and creating sustainable forests remain amongst
the most effective means of limiting global emissions. the first
commitment period of the Kyoto protocol (ending in 2012) does
not contain measures to reward forest conservation or improved
forest management in the tropics. so it’s critical that any future
action plan to mitigate climate change includes the effective and
sustainable management of ecosystems – particularly our forests.
the uK is committed to a finding a solution. We are working
bilaterally and with international organisations to develop pilot
projects to resolve methodological differences. We remain
committed to achieving a decision in Copenhagen that will integrate
forestry into the Climate Change deal, and thus treat emissions from forestry in the same way as those from other sectors.
We’re only just beginning to understand the crucial role that biodiversity plays in mitigating climate change. Continued biodiversity loss doesn’t only affect the globe’s fantastic variety of natural life. it also hampers the world’s ability to sustain and heal itself. biodiversity and forest ecosystems can play a significant role in supporting adaptation to climate change. one example is the importance of mangroves as coastal buffers to extreme weather.
in fact following the asian tsunami of 2004 some of the affected countries have launched programmes to plant mangroves along their coasts as a natural buffer. indonesia has earmarked 600,000 hectares of mangrove for revitalisation, and in the northern province of aceh, where the tsunami killed more than 110,000 people; plans include the replanting of at least 30,000 hectares with the trees as a buffer against future waves.
‘REDD’ MECHANISMS
i think this example demonstrates how crucial it is for us to better understand the relationship between ecosystems and climate change. this is particularly relevant when we are designing reDD (reduced emissions from Deforestation and Degradation) mechanisms. i am pleased that the uK is taking a lead on this issue, and my Chief scientist, Dr bob Watson is currently leading a group of experts who are looking at the links between biodiversity and climate change and coming up with practical measures on how to integrate biodiversity concerns into climate change mitigation mechanisms. the first output of this work has already been taken up for discussion in the un climate Convention.
ECONOMIC IMPACT
but it’s not just the environmental impacts of illegal logging on our changing climate and biodiversity that need to be addressed. illegal logging and deforestation have a wider impact on society as a whole, robbing some of the world’s poorest people of their livelihoods and undermining social and economic development.
they also undermine the legitimate forestry sector by distorting world markets and encouraging corruption in both importing and exporting countries. it’s also invariably associated with other types of crime and can even displace both animal and human communities.
the drivers of deforestation are different for every country, and often for different forests within those countries! it cuts across national boundaries, so it requires international action. Deforestation will continue as long as the market incentive is to cut down forests without consideration of their real value to communities, to host countries and to the global environment.
everyone here knows that illegal logging is also a complex
business. and naturally as a consequence there’s no one simple
P E F C U K L T D a n n u a l r e p o r t 2 0 0 8
In January, Huw Irranca Davies MP, Minister for the
Natural and Marine Environment, Wildlife and Rural
Affairs, gave the following speech to the Chatham
House Illegal Logging Stakeholder Forum...
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The drive for legal and sustainable timber
answer. our solutions need to acknowledge this complexity, and take advantage of it. the emerging flegt agreements are just one example of where we are harnessing these differences to tailor-make really innovative approaches.
efforts to address this problem must be underpinned by a combination of effective governance in forest countries; and by consumer countries, including my own, ensuring a market exists for legal and sustainable timber. i am keenly aware that as the world’s fourth largest importer of timber the uK is in a strong position to do something about this problem.
UK GOVERNMENT PROCUREMENT
from a domestic point of view we realise that we have to get our own house in order before we can start telling others how they should deal with this problem. for the last eight years central departments of government in the uK have only sourced timber products from forests and plantations that have been legally harvested. and from april 2009, we will only source timber from sustainable and legal sources, or flegt-licensed timber.
this sends an important signal to everyone that we are serious. We want to demonstrate how our behaviour as governments, not just on timber but on a range of public procurement issues can lead the way. We are also heavily involved in international bilateral and multi-lateral discussions looking to tackle this illegal trade.
DUE DILIGENCE
it’s an issue that’s a priority for both Defra and DfiD: that’s why we are working hard to reach agreement on the proposed new ‘Due Diligence’ regulation. this regulation is trying to do something really interesting. it aims to change behaviour. it targets trade flows into the eu, and aims to embed responsible practice across the operators. our aim is for this new system to take account of what i hear is a bedrock of good practice in this area by uK companies and organisations. the uK wants to continue to lead efforts by example.
so you see change is really beginning to happen. as with most things there’s still more to do. one of our goals must be to establish a level playing field for businesses using imported timber. Cheap illegal timber is no good for anyone. if we eliminate it from the market the demand for it dries up. if there’s no demand then there’s no need for anyone to supply it.
UK LEADERSHIP
so it’s imperative that all concerned continue the dialogue at local, national and international level to tackle this issue. for our part we will continue to explore ways of taking national and international action to stop this problem. the opportunity is there for the uK to take the lead. We’re heading in the right direction. i believe the collective will is there for us to succeed. the prize of this success
is not only environmental but social and economic too.
p r o m o t i n g s u s t a i n a b l e f o r e s t m a n a g e m e n t
government procurementSolène Le Doze UK Government’s timber procurement policy
awareness coordinator
an update on the uK developments on timber
procurement and the european forest law enforcement,
governance and trade (flegt) action plan by the
Central point of expertise on timber (Cpet).
Close to 20% of carbon dioxide emissions are caused by
deforestation, and curbing this is a highly cost effective way
of reducing greenhouse gas emissions (stern report, 2006).
illegal logging is a major contributor to the global problem of
deforestation. tackling illegal logging and the associated trade is a
very complex issue that is often linked with failures of governance.
as the 4th largest net importer of timber and timber products, the
uK government has in the past taken a range of actions to address
this issue.
CHANGE TO GOVERNMENT POLICY
procurement is amongst others, one way of using market forces
to achieve an incentive towards more sustainable behaviour. on
1 april 2009, the uK government’s timber procurement policy
changed. it now requires that only timber and wood derived
products originating either from independently verifiable legal
and sustainable sources, or from a licensed flegt partner, will
be demanded for use on the government estate. this policy
is mandatory for all Central government Departments, their
executives agencies and non-Departmental public bodies.
autonomous organisations that receive public funding are also
encouraged to adopt this policy.
C P E T
Cpet supports Defra in implementing this policy, by providing
support to public buyers and their suppliers, free of charge,
through training, a helpline, and a website. this year, Cpet, in
a joint approach with WWf-uK and the timber trade federation
(ttf) will also focus particularly on local authorities who account
for the purchase of between 20 and 30% of the timber products in
the uK. pefC and fsC certificates are accepted, among others, as
proof of compliance with the uK government’s timber procurement
policy. for more information on the policy and how to comply with
it, please visit the Cpet website: www.proforest.net/cpet.the uK
is very keen to share experience on timber procurement issues
with other european member states. continued overleaf
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european Commission recognitionin its green public procurement guidelines published in 2008, the
european Commission recognised pefC as one of the certification
schemes providing purchasers with assurances of legal and
sustainable sourcing of virgin fibre for copying and graphic paper.
Chain of custody certificates for either pefC or fsC certified virgin
fibre are accepted as proof of compliance with the Commission’s
green public procurement policy.
london 2012 sustainable Development strategy targets timberPeter Bonfield olympic Delivery authority
the olympic Delivery authority (oDa) set a number of challenging
targets to support the use of more sustainable construction
materials in the sporting venues and across the olympic park
for the london 2012 olympic and paralympic games. Key
sustainability objectives include:
l responsible sourcing of materials;
l low embodied environmental impacts;
l low waste and high recycled content.
as part of this strategy, the oDa announced in march 2008 that
only sustainable timber will be used during the construction of the
olympic park venues and infrastructure.
the groundbreaking plan to help ensure that all timber used on the
construction project is from fully traceable legal and sustainable
sources is an important part of helping make london 2012 a
‘green games’.
a framework for the responsible sourcing of timber is unprecedented
for a project of this size and scale. However, working closely with
the timber and construction industries it is an opportunity to break
new ground in sustainable sourcing.
the oDa has signed up 16 timber suppliers who make up
a dedicated ‘timber supplier panel’. the panel will supply the
significant volumes of hardwood, softwood, plywood, softwood
timber and other products required by oDa’s contractors and their
suppliers. the timber supply panel has been put in place in early
FOREST LAW ENFORCEMENT (FLEGT)
the uK is also engaged in the european union’s (eu) flegt action
plan. the flegt action plan includes seven key components as
support to tropical timber producer countries, acknowledging
that a range of demand and supply side measures are needed
to adequately address the problem of illegal logging. flegt aims
to address illegal logging, contributes to achieving the wider
objective of sustainable forest management and promotes good
governance in the forestry sector including through using the eu
public sector’s buying power to stimulate the international markets
for legal timber. the key features of the plan are the bilateral
Voluntary partnership agreements (Vpas) and the proposed Due
Diligence regulation.
Vpas are signed with the aim of ensuring that specific timber
products exported to the eu from the partner countries have
been legally produced. the first Vpa was signed with ghana
in september 2008. indonesia, malaysia, Cameroon, Congo
brazzaville and liberia are currently negotiating agreements. the
uK is currently working to implement a scheme for the verification
of flegt licences and will consult publicly on the options for this
later this year.
EU DUE DILIGENCE REGULATION
the european Commission released its proposal for additional
legislation to support the flegt process, the Due Diligence
regulation in october 2008. the proposal requires operators first
placing timber and timber products on the Community market to
exercise due diligence, using a risk-based approach, to minimise
the risk of placing illegal timber on the Community market. the
uK is now working with eu partners in considering this proposal,
and is working with the european parliament who will be voting
on the current draft of the regulation on april 24th.
DEFRA PARTNERSHIP WITH UK TIMBER TRADE
Defra are also working closely with the timber trade to ensure that
the many existing examples of best practice by the progressive
uK timber industry in establishing monitoring systems are taken
into account, and provide the basis for those required under this
new legislation. rachel butler the uK ttf’s Head of sustainability
emphasises: “Having made due diligence a condition of
membership last summer, we trust our members are both ahead
of the game and in readiness for the proposed eu legislation. the
uK ttf fully supports an eu wide ban on illegal timber products
to level the playing field to support traders and suppliers who are
doing the right thing.”
it is a reiterated commitment from the uK government to combat
illegal logging internationally and to promote sustainable timber as
a truly renewable resource.
The drive for legal and sustainable timber continued
p r o m o t i n g s u s t a i n a b l e f o r e s t m a n a g e m e n t
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b&Q leads the Way in responsible procurementin 2008, after a considerable commitment of time and energy,
b&Q, britain’s largest home improvement retailer, gained chain-
of-custody certification for both forest stewardship Council (fsC)
and programme for the endorsement of forest Certification (pefC)
schemes.
the award of the pefC Chain of Custody certificate followed a
rigorous external audit of b&Q’s procurement and internal controls
of pefC certified wood products, against the pefC requirements.
Chain-of-custody records the path that wood products take from the
forest to the final consumer. it includes all stages of manufacture,
transport and distribution and identifies the movement of the
product from one link in the supply chain to the next. it is achieved
by each link in the chain having a management system that can
demonstrate how certified wood products are identified and
controlled throughout the time that the product is in ownership. as
a result, b&Q can now ensure that all its certified wood and paper
products come from proven virgin or recycled sources according to
the requirements of either the fsC or pefC schemes.
Chain-of-custody certification was the next step in the company’s
long history of sustainability. b&Q is proud to provide its customers
with an assurance that every purchase bearing the fsC or pefC
logo has been produced in such a way as to avoid wood from areas
where the management practices damage ancient forests, harm
wildlife or jeopardise the future of the people whose livelihoods
depend on the forest.
new environmental regulations in the construction industry
make it ever more important for trades people to prove they are
using sustainable materials for building projects, so b&Q’s chain-
of-custody accreditation brings real benefits to its customers.
underlining b&Q’s commitment to responsible sourcing,
Diarmuid Walsh, Director of building and Decorative for b&Q said
“sustainability has always been hugely important to us and we are
delighted to see that our efforts to achieve certification have paid
off. We are passionate about using responsibly-sourced materials
wherever possible.”
pefC applauds the company’s efforts. b&Q has been a leader
in corporate social responsibility and timber certification for
many years. We are delighted that this commitment is further
demonstrated by the attainment of pefC certification and
particularly impressed by b&Q’s efforts to inform customers about
the importance of purchasing wood from sustainably managed
forests. given the positive contribution that forests can make
to tackling issues such as climate change, b&Q’s dedication to
providing sustainable solutions is admirable and sets an excellent
example for others to follow.
The drive for legal and sustainable timber continued
2009 following an open tendering process in mid to late 2008.
oDa’s tier 1 contractors and through them their subcontractors
are now required to use the panel for sourcing timber and wood
products. this is a key innovation that should help provide a
robust mechanism that facilitates oDa’s goals of using only legal
and sustainably sourced wood products across the project.
oDa have aligned with the Department for environment, food and
rural affairs (Defra) policy for legal and sustainably sourced timber
and wood products supported by their Central point of expertise
in timber (Cpet). Defra’s policy recently (at the beginning of april
2009) moved to requiring both legal and sustainably sourced
timber to be used across government procurement. the oDa
approach allows the use of pefC certified products amongst the
other schemes approved by Defra and Cpet.
the timber supplier panel will help the oDa’s contractors meet
these obligations in providing legal and sustainable timber by
keeping records that can trace products from their source right
through the supply chain to the olympic park site. the timber
suppliers will also have to ensure that they have comprehensive
certification and sufficient auditing in place to ensure standards
are met.
the use of wood based materials is being closely monitored and
the outcomes from the project will be communicated widely to the
public and private sectors.
P E F C U K L T D a n n u a l r e p o r t 2 0 0 8
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Standards and Policy updates
pefC secretary general’s reportBen Gunneberg secretary general pefC Council
Demand for certified forest products is increasing
despite the global credit crunch. accordingly, it is
essential that supply can meet increasing consumer
demand.
pefC Council is pleased to announce the endorsement of the
national forest certification system for russia. the greatest
potential for area growth for all certification schemes is now in
russia, and we estimate that within the next ten years about 100
million hectares will become certified to both pefC and fsC forest
certification systems, significantly contributing to the globally
traded certified wood fibre basket. it is worth noting that the
gabonese and malaysian schemes have nearly completed their
endorsement process, and subject to endorsement, will be the
first national pefC schemes in africa and asia supplying into the
global as well as local market place.
on the supply side, pefC international has also been active in
giving development advice and input into both the developing
Chinese and the indian forest certification schemes. furthermore,
both the Chilean and australian schemes have nearly completed
their re-endorsement process (held every 5 years) against pefC’s
sustainability benchmark requirements. in addition, training
courses for certifiers, auditors, and companies have been provided
in China and Japan.
as pefC is the only international scheme that re-assesses its
endorsed scheme every five years, it is fitting that at international
level our requirements too are reviewed and revised to ensure that
they reflect the latest scientific developments, best practices, and
stakeholder expectations. We have therefore just announced a two
year revision process focussing on our sustainability benchmarks
and welcome all stakeholder input. in addition, we are now in the
second and final year of the revision of the international chain of
custody standard.
as an umbrella for numerous independent national schemes, one
of the challenges is to ensure that customers are kept fully informed
of our latest developments and are
able to supply their customers with
facts and assurances about pefC.
a communications working group
of european national schemes has
started working on coordinating
messaging, activities, and attendance
at events. similar work is also taking
place in north america.
Companies are keen to have the
planned logo usage toolkit and we
expect to be able to launch it in april. it will follow the revised
corporate design guidelines and will provide practical advice on
using the pefC logo.
further on the communications front, we are completely revising
our website to make it customer-friendly as recommended in
the 2008 governance review. the redesigned website will be
launched later this year. for members, we have already greatly
expanded the intranet and included new features such as a
photo library, an events calendar and discussion fora on various
topics and activities to ensure better information and knowledge
exchange.
an action plan for the implementation of the governance review
recommendations over a two year period has been approved by
the board and invitations have been issued for one of the key
recommendations, the stakeholder forum, which will enable
pefC to engage with a range of stakeholders with whom it has not
effectively engaged to date.
pefC has been active in providing input into public procurement
policies around the world and requests by governments and
customers for information. senior staff have met with international
companies, and participated in several interviews for Dutch and
finnish newspapers and will also be highlighted in a finnish
women’s magazine.
uK forestry and Certificationthe uK is in the unique situation that the national forestry
Certification standard (uKWas) is endorsed by both pefC and
fsC and can be applied by both schemes, as a demonstration
of sustainable forest management of our forests. uKWas is
fundamentally based on the uK forest standard, which sets
out the approach to forestry in the four constituent countries to
sustainable forest management and it sets standards, provides
p r o m o t i n g s u s t a i n a b l e f o r e s t m a n a g e m e n t
15
a basis for regulation and monitoring and indicated sources for
guidance. this standard, now in the process of a major revision
through an open and consensual process, provides an up to date
statement and overview of forestry and links to the delivery of the
uK’s international obligations.
uKWas will similarly commence its second five year revision during
the course of 2009 and pefC uK will continue to support the work
of the steering group and ensure that the revised Certification
standard meets and fully addresses all the requirements set out
by pefC to enable the pefC uK Certification scheme to remain as
a fully endorsed pefC programme.
pefC is very aware that for forests to become certified, the cost and
administration requirements can be a disincentive to the smaller
