PEFC UK Ltd

Alun Watkins
Hilary Khawam

Promoting
Sustainable Forest
Management

www.pefc.org #pefc
 Fantastic Forests

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 Fantastic products from forests

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 No products without harvesting

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 Peoples' association with use of wood-based
products

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 Forest Benefits
Why are forests so important?

Forest are home to 2 out of 3 living

species

1.6 billion people (1 in 5 ) in the world

rely on forest resources for their
livelihoods

350 million of these people live directly

around forests

Sustainable forest management

makes a difference

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 Why Forest Certification Matters
Helps prevent
illegal logging Maintains and increases
the health and vitality
of forest eco-systems

Promotes
Protects
safe working
ecologically
conditions
important
forest areas

Recognises the role

forests play in rural
Promotes the long-term
development
well-being of forest
communities

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 Why Forests Matter

12-15 million hectares of forest are lost every year

Two key causes of deforestation:

1. Conversion - wood fibre, palm & soy plus infrastructure
2. Degradation - fires, illegal & unsustainable logging, fuel wood
harvesting and climate change

This brings five key issues:

1. Reduced biodiversity
2. Release of Greenhouse gas emissions
3. Disruption of water cycles
4. Increased soil erosion & run off
5. Impacts on local communities
Certification offers a potential solution PEFC and FSC are
the two global certification schemes
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 About PEFC

Global, not-for-profit, non-governmental organisation established in 1999

Alliance of national forest certification systems with global representation

300 million hectares of forests are certified by 38 PEFC-endorsed national

schemes

World's largest forest certification system and provider of sustainably

managed wood-based products such as timber and paper

The only global certification system utilising globally recognised ISO/IAF

mechanism for compliance verification

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 What PEFC Stands For

"We are committed to conserving forests and

their invaluable biodiversity, and the communities
and families that own, work, and live in and
around forests.
William Street, former Chairman, PEFC

PEFCs Vision:
"A world in which people manage forests sustainably.

PEFCs Mission:
"To give society confidence that people manage forests
sustainably."

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 Role of Forest Certification
Sustainable forest management contributes positively to
tackling global challenges such as climate change, poverty
alleviation, water management issues and loss of
biodiversity.

Forest certification
Provides evidence for sustainable forest management
through third-party certification
Provides forest owners with access to markets demanding
certified products
Encourages sharing of knowledge and best practice and
continuous improvement
Assists in securing forest benefits for the long term.
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 Responsible Forest Management
PEFC certification promotes sustainability
Healthy Forests
Maintain and increase the health and vitality of forest ecosystems, biodiversity
Protect ecologically important forest areas, wildlife, waterways, and soil
Prohibit forest conversions; no certification of plantations established by conversions
Avoid genetically modified trees, most hazardous chemicals
Prevent unauthorised activities such as illegal logging

Healthy Communities
Promote the long term health and well-being of forest communities
Respect forests multiple functions, give due regard to the role of forestry in rural development
Involve forest communities, forest-dependent people in forest management
Recognise indigenous peoples rights, incl. free, prior and informed consent
Protect sites with recognised specific historical, cultural or spiritual significance
Safeguard areas fundamental to meeting the basic needs of local communities

Healthy Workers
Comply with all fundamental ILO conventions; safe working conditions
Consideration of new opportunities for employment

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 Panel of
Experts

Approval by members

International
Board
Global public
consultation Sustainability recommend-
ation
Benchmarks Revision required

Multi-
Independent stakeholder
assessment process

Consens-
Pilot testing
National based
Standard decision
Application for assessment making

National
public
consultation
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 PEFC and FSC

PEFC FSC
Bottom up approach Top down approach

Sustainability benchmarks Principles and Criteria set by

based on global guidelines and FSC
criteria
Accreditation by UKAS and IAF Accreditation by ASI and ISEAL

Balanced representation based Three chamber system social

on UN Agenda 21 environment and economic

Both schemes have the same overall goal and provide

equivalent assurances of sustainability

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 Global Growth of the PEFC Alliance

2016
2009 PEFC members with endorsed systems
PEFC members progressing towards endorsement
Countries actively developing systems
15 As of January
June 2016
2009
 Certified Forest Area by Country
Country Certified Area (ha) Country Certified Area (ha)

Argentina 22,524 Italy 811,040

Australia 26,578,998 Japan 23,728
Austria 2,983,873 Latvia 1,683,604
Belarus 8,710,234 Luxembourg 33,756
Belgium 299,500 Malaysia 4,034,697
Brazil 2,721,113 Norway 7,380,750
Canada (CSA) 41,912,506 Poland 7,252,197
Canada (SFI) 89,201,055 Portugal 256,884
Chile 1,908,549 Russia 12,039,345
China 5,835,980 Slovak Republic 1,245,921
Czech Republic 1,780,258 Slovenia 45,351
Denmark 256,700 Spain 1,967,418
Estonia 1,174,151 Sweden 11,549,700
Finland 16,571,224 Switzerland 208,949
France 8,206,117 United Kingdom 1,410,288
Germany 7,386,453 USA (ATFS) 7,672,192
Indonesia 1,846,064 USA (SFI) 25,580,472
Ireland 376,108 Uruguay 601,909
Total 301,569,608

Data: December 2016

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 Certification The Global Picture
Progress to date

28% 60% 10%

28% of the worlds 60% of the total area 10% of the worlds forests
industrial roundwood certified to PEFC are certified
supply is certified

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 Behind the Label
The nuts & bolts of PEFC 2 areas

Forest Management Chain of Custody

Delivers sustainable wood raw material that is:

legal: wood is harvested in compliance with local legislation and international agreements
from well managed forests: safeguarding environmental, social & economic values
traceable: the raw material supply chain is verified from the forest to the finished product

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 Chain of Custodies by Country

Country Country Country Country

Argentina 9 France 2021 Netherlands 454 Sultanate ofOman 1
Australia 196 Germany 1689 New Zealand 27 Sweden 212
Austria 465 Greece 1 Norway 74 Switzerland 51
Belarus 8 Hungary 17 Papua NewGuinea 1 Taiwan 9
Belgium 294 India 13 Paraguay 1 Thailand 12
Bolivia 1 Indonesia 24 Peru 9 Tunisia 1
Bosnia and Herzegovina 2 Ireland 41 Philippines 2 Turkey 24
Brazil 65 Israel 6 Poland 163 Ukraine 1
Bulgaria 6 Italy 711 Portugal 109 United ArabEmirates 25
Canada 188 Japan 204 Romania 21 United Kingdom 1180
Chile 63 Latvia 43 Russia 17 USA (PEFCCoC) 3
China 287 Lebanon 1 Saudi Arabia 2 Uruguay 270
Colombia 1 Lithuania 9 Singapore 27 Vietnam 5
Croatia 5 Luxembourg 18 SlovakRepublic 69 Total: 10,976
Czech Republic 181 Macau 8 Slovenia 41
Denmark 95 Malaysia 353 South Africa 4
Dominican Republic 1 Mexico 5 South Korea 3
Estonia 64 Monaco 1 Spain 835
Finland 225 Morocco 1 Sri Lanka 1

Data: December 2016

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 PEFC ST 2002 Responsibilities

PEFC Council

Board of Directors Secretariat

Chain of Custody and Labelling

Working Group

Task Forces
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 Work in Progress

Guidance for social requirements

Full revision of all PEFC standards by Nov 2017

Greenhouse gas calculation Transfer of data

Cross site volume project

No placement of significant risk material on the market
Internal audit sampling

100% Road Map

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 Chain of Custody Documentation

PEFC ST 2002:2013: Chain of Custody of Forest Based

Products - Requirements

PEFC GD 2001:2014: Chain of Custody of Forest-Based

Products - Guidance for Use

PEFC ST 2003:2012: Requirements for Certification Bodies

operating Certification against the PEFC International Chain of
Custody Standard

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 Chain of Custody - Scope

Chain of Custody
Process of transferring information on origin of raw
material to information on origin of an organisations
products.

Requirements apply to:

Material entering Chain of Custody product group
Claimed products to the customer

Any other materials/products are not in the scope of the

organisation's Chain of Custody system.

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 Structure of PEFC ST 2002:2013

4
Identification of material category

5
Minimum Due Diligence System requirements

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Chain of Custody method

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Sales and communication on claimed product

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Minimum management system requirements

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Social, health and safety requirements

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 Requirements for input / output
information

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 Incoming Delivery?
Check your supplier's status

(Access to) Copy of certificate

Check:
Current status
valid
suspended
expired
Withdrawn

http://www.pefc.org/find-certified/certified-certificates)
Scope

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 Defining Controversial Sources

Illegal
GMO use Conversion
Harvesting
Forest operations Utilising genetically Converting forest to
High environmental modified forest-based other vegetation type
values organisms Conversion of
Protected & primary forest to
endangered species plantations
Health & labour
issues of workers
Property, tenure &
use rights
Taxes, royalties,
trade & customs

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 PEFCs Due Diligence System

The PEFC Due Diligence System applies to all certificate holders

Reason: availability of tree-species and origin information required

at any point in PEFC Chain of Custody

Background

PEFC's positioning in "legality and responsible sourcing" issue

No regional exception, same requirements for all
Retailer/end-user feedback
Unpredictable material flow between Europe and other areas

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 PEFCs Due Diligence System

Certified material NOT exempt from Due Diligence System

Information on species and origin is required

Certified material EXEMPT from Risk Assessment

Applies to PEFC Certified & PEFC Controlled Sources
PEFC claim demonstrates "negligible risk" by default
Provided no substantiated comments / complaints were raised

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 Formal PEFC Claims

X% PEFC Certified

PEFC Controlled Sources

Any other claim invalid!

PEFC Mix

PEFC Pure

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 PEFC Claims

PEFC Chain of Custody Working Group Conclusion

"X% PEFC" allowed as abbreviation

Benefit of new COC is PEFC Controlled Sources

claim on invoice

Claims (and labelling) on product itself should be

limited to PEFC Certified products

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 PEFC Logo Types of use

ON-PRODUCT OFF-PRODUCT
Use on the tangible certified Any use other than on-
product itself product e.g.

Use on the packaging of the Promotional

certified product
Educational
Use on documentation
referring to the product:
Invoice
delivery note
advertisement
brochure

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 The PEFC Label Generator
The PEFC Label Generator makes it easier
and quicker for companies, forest owners
and uncertified entities to create PEFC
labels.

This easy-to-use and intuitive online tool creates PEFC

labels in a matter of minutes and provides everything
needed to put a PEFC label on products or promotional
materials.

The PEFC logo and labels are globally trusted marks,

assisting businesses, consumers, forest owners and
managers, and other stakeholders in identifying and
promoting merchandise and goods from forests that are
managed sustainably.
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 PEFC Label Generator

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 PEFC Label - Certified

Minimum 70% certified material content

Maximum 85% recycled material content

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 PEFC Label Promotional Use

Can be used by any PEFC

Logo User Group

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 PEFC Label Colour Options

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 PEFC Logo - Frame

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 Different Colour

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 PEFC Project Certification

Project Chain of
Custody certification
enables a claim to be
made about the PEFC
certified material used
within a defined
Project.

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 Market Drivers for PEFC
Certified Products

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 Market Drivers for Certification
Legislation
Consumers
Public
procurement

Financial Industry
sector commitments

44 Corporate procurement
 Legislation

EU Timber Regulation 2013

The Lacey Act 2008 (amended)

Australia Illegal Logging

Prohibition Act 2012

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 Public Sector Procurement

Central Point of Expertise on Timber

Timber Procurement Assessment

Committee

European Green Public Procurement

EU Eco Label

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 Timber Procurement Policy
The following measures within our guidance are contractual for all fit-out work across our
estate:
Sustainability Requirement
Timber Procurement
Water-efficient sanitary equipment
Site waste management
Energy-efficient lighting
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Action Required
Confirm that all timber products are legally and responsibly
sourced in accordance with the UK Governments Timber
Procurement Policy
http://www.cpet.org.uk/uk-government-timber-procurement-
policy
Where sanitary fittings are being replaced or upgraded, select options such
as:
Dual and / or low flush WCs
Waterless urinals
Low flow taps with automatic shut off
Ensure that a fit-out waste management plan is developed in line with the waste
hierarchy to identify key fit-out waste streams and additional options for reuse,
recycling or other management. Above all, avoid sending waste to landfill.
Minimise energy demand associated with artificial lighting requirements, particularly
during daylight hours.
Select energy-efficient lighting options - for example, LED fittings should be used
where appropriate
 Timber Procurement Policy

TIMBER PURCHASING REQUIREMENTS

Type of Timber Requirements

Softwood FSC / PEFC / CSA / SFI certified softwoods only [Note: coppiced
material is exempt]
Temperate FSC / PEFC / CSA / SFI certified temperate hardwoods only
hardwood [Note: coppiced material is exempt].
Tropical Tropical hardwood will not be purchased unless it is an
hardwood operational necessity.

A business case must be completed for all potential applications /

uses of tropical hardwood and senior management approval will
be needed before any purchases can be made.

If tropical hardwood is purchased, it must be FSC / PEFC / CSA /

SFI / MTCC certified whenever possible. If certified timber is not
available, credible evidence must be obtained which
demonstrates legality, sustainability and traceability through the
supply chain.

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 Local Authority Procurement

Haringey Council will only accept CoC

certification if it is from a Government approved
programme. These are from the Forest
Stewardship Council and Programme for the
Endorsement of Forest Certification.

Purchase of Transparently and Sustainably Sourced Timber Central

Procurement 27 February 2012

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 Industry Commitments

World Business Council for

Sustainable Development

Consumer Goods Forum

The Sustainability Consortium

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 Industry Commitments - Timber

http://www.supplychainschool.co.uk

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 Corporate Procurement

Use virgin materials from forests that are verifiably

legal, responsibly managed.................... The Forest
Stewardship Council (FSC) or the Programme for
the Endorsement of Forest Certification (PEFC)
endorsed national forest certification systems can
be used as a way to verify that a forest source is
responsibly managed
PepsiCo will continuously work with its
suppliers to be environmentally sustainable in
their practices by following credible forestry
standards and ensuring their fiber purchasing
is only from sources that support responsible
forest management.

[] all Lipton tea packs in Europe

are certified via PEFC.

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 Corporate Procurement

In Europe, we took a big step in 2015 with the sourcing

of solid board from certified sources. In total, more than
60% of all solid and corrugated board purchased for
Europe was either PEFC (Programme for the
Endorsement of Forest Certification) or FSC (Forest
Stewardship Council) certified.

2015 Sustainability Report

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 Corporate Procurement

We recognise and
support the Forest
Stewardship Council
(FSC) and PEFC (The
Programme for the
Endorsement of Forest
Certification). We strive
towards all sources of
timber to be FSC and or
PEFC compliant by 2018.

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 Corporate Procurement

You shall ensure that you, and that your contractors, agents or
factories source timber and paper from sustainably managed
forests such as certified by the Programme for the
Endorsement of Forest Certification (PEFC) or Forest
Stewardship Council (FSC). Goods complying with these
codes must be labelled accordingly.

Where suppliers offer FSC or PEFC

products, full evidence of a formal
Chain of Custody must be in place for
product claims to be made.

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 Corporate Procurement

93 per cent of the wood used to make our

own-brand products in 2014/15 (excluding
our own brand nappies) was from FSC,
Programme for the Endorsement of Forest
Certification (PEFC), or recycled sources.

We are committed to the principle of

sustainability in our paper and wood
product sourcing. All of our own label
toilet paper, tissue and kitchen towel is
made from recycled material or fibres
from well-managed forests certified by
the Forest Stewardship Council (FSC),
or by the Programme for the
Endorsement of Forest Certification
(PEFC).
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 Corporate Procurement

All wood fibre materials in our

products will be from recycled
sources OR traceable forest sources
that are independently certified to a
credible standard (FSC or PEFC).

Target Progress
100% of our own brand timber and Almost achieved: 95% of our
paper products will be sustainably own brand timber and paper
sourced by year end 2015/16. products are sustainably
sourced (FSC-certified; PEFC-
certified, recycled or by-product
as defined by the Waitrose timber
policy)
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 Corporate Procurement
Our long term aim is to have all timber materials used in the production of
furniture products credibly and ethically sourced from verified well-
managed forests under a Chain of Custody program (FSC or PEFC
certificates). We also encourage the certification of all timber as much as
possible.

Whilst we move towards full Chain of Custody Certification (COC), we will

engage with suppliers that are already part of FSC, PEFC or V-Legal
schemes, as well as encouraging our existing supplier base to use certified
timbers and COC, so that we can demonstrate our commitment to control.
Dunelm wants to only purchase legally sourced timber. We are actively
moving towards certified materials, and sustainably sourced timber products
as soon as we possibly can.

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 Financial Services Sector

Banking Environment Initiative

The Soft Commodities Compact, in support of CGF goals. Result

of two years of extensive collaboration between the BEI and the
CGF, with advice from WWF.

The Compact includes a commitment for banks to raise the

standards they expect of certain clients in high risk geographies.
Compact banks will confirm that customer operations have
achieved the same internationally recognized means of
verification that the CGF is prioritizing: This includes PEFC for
timber.

Signatories include: Barclays, BNY Mellon, China Construction Bank, Deutsche

Bank, Lloyds Banking Group, Nomura, Northern Trust, Santander, Sumitomo Mitsui
Banking Corporation and Westpac.
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 Financial Services Sector

Global Businesses must close relationships, as soon as

possible, with Non-Compliant customers, including:

Customers expelled from FSC or PEFC (including those who

terminate their membership during complaints investigations) or
whose certification is withdrawn

Customers with major areas of non-compliance under FSC or

PEFC

Forestry Policy 2014

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 Consumer Demand

What reassures you most that environmental considerations

have been taken into account?

Label certifying ethical

54%
considerations

Country of origin ("Made in") 30%

Brand 24%

Recommendations of
17%
family/friends
Media recommendation - TV,
16%
press, newspaper

61 Source: PEFC/GfK Global Consumer Survey (Nov 2014)

 Consumer Demand

Mean
Value

3,4
PEFC (
15 23 49 7 6
is a label I can trust 5 - I strongly agree
4
3
2
1 - I strongly disagree

FSC 14 24 49 7 6 3,3
is a label I can trust

15%
Would you prefer 4%
companies to label Yes

products? No
81% Don't know

62 Source: PEFC/GfK Global Consumer Survey (Nov 2014)

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 Benefits for Your Business
Advantages of PEFC certification & labelling

Meet expectations
The PEFC label allows your company to demonstrate environmental
and social responsibility to customers
Procurement policies by governments and companies are increasingly
specifying certification as a key requirement.

Secure supply
Secure your supply of sustainably sourced material with the assurance
that the raw material used in your packaging originates from legal and
sustainable sources, aligned with regulatory requirements such as
EUTR
There is a larger quantity of material certified to PEFC than any other
forest certification system, providing you with competitive options.

Position your business

The PEFC label allows consumers and customers alike to value your
companys engagement towards sustainability
PEFC facilitates access to an increasingly discerning market.

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