PEFC UK

ANNUAL REPORT
 CONTENTS
01 CHAIRMAN’S REPORT 07 DEMAND FOR CERTIFICATION
Ross Bradshaw reflects on PEFC’s progress over the Key forest and Chain of Custody certification facts
past year and figures

02 MARKET OUTREACH 08 GOVERNANCE

Snapshot of PEFC’s market outreach activities to promote PEFC UK Board of Directors - providing industry
awareness of and drive demand for certified products expertise from a cross-section of stakeholder sectors

04 PEFC IN THE MARKETPLACE 10 ACCOUNTS

PEFC-certified products from a broad range of sectors are PEFC UK financial information for 2016-17
on sale in the UK marketplace
13 PEFC INTERNATIONAL PHOTO CONTEST
06 PEFC INTERNATIONAL’S ACTIVITIES PEFC held its first global photographic competition
Highlights of PEFC International’s activities in 2017 in 2017 and received some outstanding entries

PEFC UK LIMITED BOARD OF DIRECTORS

Programme for the Ross Bradshaw (Chairman)
Endorsement of Forest Steve Cook
Certification Julia Griffin
Sheffield Technology Parks Simon Hart
Cooper Buildings David Leslie
Arundel Street Anders Olsson
Sheffield S1 2NS Elisabeth Piveteau-Boley
John Sanderson
t +44 (0) 114 307 2334
Rob Shaw
e info@pefc.co.uk
w www.pefc.co.uk
See pages 8-9 for details
Registered in Scotland
Company Number 209443
CHAIRMAN’S REPORT
ROSS BRADSHAW, CHAIRMAN, PEFC UK
Welcome to PEFC UK’s 13th Annual Report.
2017 was another busy year for PEFC and the
coverage in the following pages aim to provide
a snapshot of PEFC’s progress and activities,
both at home and around the world.
As someone who makes his living trading in packaging materials, it
is always very encouraging to see the PEFC label appearing on an
ever growing range of consumer-facing products and packaging.
So, I was delighted to see the PEFC label appearing on Amazon
Fresh grocery bags last year. In opting to apply the PEFC label,
Amazon join such well-known brands as Zara, Selfridges and House
of Fraser in offering their customers a PEFC-certified, sustainable
paper alternative to plastic bags.
The PEFC label provides a visible sign of responsible sourcing to
their customers, and there is increasing recognition by consumers
of the role that forest certification plays in safeguarding the
world’s forests. A 2017 YouGov survey, conducted for PEFC in 21
countries with over 20,000 participants, found that more than two
out of three respondents considered forest certification labels such
as PEFC’s, important in promoting sustainable forest management.
While it is great to see the PEFC brand becoming better known in
the global market place, we must never lose sight of the purpose
of forest certification. It aims to provide a market incentive for
better forest management to help secure a healthy future for the
world’s forests. It was therefore fitting that the theme of our 2017
Annual Stakeholder Event held in July was ‘Why Forests Matter’.
01
The range of eco-system services that forests provide society was
illustrated with presentations showing the importance of forests for
rural development, carbon sequestration and biodiversity. The event,
which has now become the highlight of the PEFC UK year, featured
speakers from Asia, North America, Spain and the UK.
On the international front, PEFC continued to expand. The global area
of certified forest lands surpassed the 300-million-hectare threshold,
while Chain of Custody numbers stand at more than 20,000.
Membership also continued to grow and 2017 saw new national
members from Bulgaria, Republic of Congo and South Africa joining
the PEFC family, bringing the number of members to 49.
Back in the UK, the Board recognised that for many certified
companies, trading conditions remain challenging. It was therefore
agreed that rates for the annual notification fees would be frozen
for a fourth year in succession. There was therefore no increase
in notification fees for either UK Chain of Custody or Forest
Management certificate holders in 2018.
As ever, special thanks to the many individuals and organisations
that enable PEFC to achieve as much as it does in the UK. We
are particularly grateful for the ongoing support of the Finnish
Forest Foundation. Their
investment in our marketing and
communications activities has
done much to raise awareness
of the PEFC brand in the UK
marketplace.

I would also like to record my

appreciation to my fellow Board
members for the time they
have generously devoted to our
affairs over the past year. We
are fortunate indeed to benefit
from the wealth of expertise
and experience they bring to
the organisation. Finally, I would
like to thank the PEFC UK
team of Alun Watkins, Tracey
Reeve, Julia Cobham and Hilary
Khawam for their enthusiasm,
hard work and commitment to
Left to right: Mark Johnston, Melvin Gumal, Ana Renfigo
seeing PEFC go from strength
Abad, Peter Latham, Andrew Heald
to strength in the UK.
Speakers at our 2017 Annual Stakeholder Event
MARKET OUTREACH 02
The recognition of the PEFC label is growing around the world and more than 20,000 companies
are now Chain of Custody certified. A 2017 YouGov poll – conducted in 21 countries – surveyed
more than 20,000 people and found that two out of three respondents considered forest
certification labels important in promoting sustainable forest management. Raising awareness of
the assurances that PEFC certification brings remains a key objective for the PEFC UK team.
The following provides a snapshot of our market outreach activities over the past twelve months.

Forestry
Royal Forestry Society 2017 Awards
PEFC were proud sponsors of the Royal awareness, understanding and skills related
Forestry Society’s RFS Excellence in Forestry to the environmental, social and economic
Education and Learning Award for the seventh potential of trees, woodlands and forests and
year in succession. The Royal Forestry Society demonstrate the link between trees and wood
is the UK’s largest forestry education charity. products. The winner of the 2017 award
Founded in 1882, it now has almost 4,000 was Hill Holt Wood, Lincolnshire for its Study
members. The award seeks to recognise Programme that introduces young people to
schools, colleges and universities who increase the positive role woodlands can play in our lives.

Annual Field Trip

In May, we returned to Hexham, Northumberland for PEFC
UK’s annual field trip. We successfully used the field trip
to demonstrate ‘sustainable forest management in action’
to more than twenty stakeholders from a broad range of
sectors including timber trading, construction, retail, paper
and packaging. It has now become a regular highlight of the
PEFC UK year and is always well received. The group visited
a certified forest site managed by Egger – Winnows Hill – to
learn more about what sustainable forest management entails.
On the second day, participants had a choice of site visits –
Egger’s Hexham manufacturing plant for those from the timber
and construction industries while those working in the paper,
packaging and retail sectors were guests of Essity at Prudhoe.

The annual field trip is designed to provide a very clear

understanding of what sustainable forest management
does and illustrate in a practical way what Chain of Custody
certification involves and to demonstrate the rigorous processes
that bring certified forest products to market.

Confor Woodland Show 2017

In September, PEFC UK exhibited at the Confor Woodland
Show. This is the leading trade show for the UK forestry sector
and is held every two years on the Longleat Estate in Wiltshire.
It attracts forest owners and growers, forestry professionals,
contractors, timber buyers and processors. We participated in
the event to help provide a better understanding of what the
PEFC forest certification system offers and to promote our small
woodland certification solution. It has long been recognised that
a cost-effective certification option was required to increase
small woodland owners’ participation in certification. This is vitally
important as certified materials are increasingly requested by a
growing number of forest product users including retailers, the
construction sector and energy suppliers. PEFC’s online forest
certification tool aims to provide just such a user-friendly solution.
 03
Timber and Construction
Surface Design Awards 2017
In February, the Surface Design Awards – part of the Surface Design Show – a key show
for architects and designers – were held in London. PEFC UK sponsored the Best Public
Building award to raise awareness of the PEFC programme within the influential architecture
and design communities. The award went to a visually stunning Shanghai project – SKYNET.
The central material used in its construction was Glulam. The designer, Kris Lin of Kris Lin
International Design, employed a jointing technique known as joggling which is frequently
used in traditional buildings in China.

London Build 2017

In October, PEFC UK exhibited in the Sustainability Zone at London Build 2017. Now in its third
year, London Build is the UK’s largest construction expo dedicated entirely to opportunities in
London and the South of England. PEFC participated in the show to promote PEFC-certified
timber to contractors, housebuilders, developers, architects and their clients.

In addition, PEFC UK’s Executive Director Alun Watkins, spoke at one of the Sustainability
Summit workshops on the importance of specifying certified timber as a key element of
sustainable construction. We also unveiled a range of new industry case studies which
showcased projects using PEFC-certified timber and promoted the benefits of timber as the
sustainable and responsible construction material of choice.

Promotional Materials from PEFC

Over the past twelve months, additional promotional materials have been added to the PEFC library. These are all available free of
charge. To request your copies e-mail: info@pefc.co.uk

In January, we published a special factsheet designed to

help certified companies demonstrate compliance with the
2015 Modern Slavery Act. This showed how PEFC-certified
companies and users of PEFC-certified products, who may
also have to comply with the legislation, can reference PEFC’s
forestry and Chain of Custody certification standards, to help JE
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demonstrate that forced labour has not been used in their

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certified products supply chain.

In October, PEFC released a set

of six postcard-sized case studies
Case Studies developed for Londonbuild
in a handy wallet to coincide with
our participation in London Build popular as a renewable structural building alternative
2017. The case studies feature to steel, concrete and brick and block.
construction projects which have all
used PEFC-certified, engineered In November, PEFC International launched a series
timber products such as Glulam of three informative whiteboard videos which are all
and Cross Laminated Timber (CLT). available on PEFC’s YouTube channel.
These materials are increasingly www.pefc.org/resources/videos
PEFC IN THE MARKET PLACE 04
PEFC-certified products continue to be used across a wide range of sectors.
The following are a selection of products and organisations sourcing responsibly
and educating customers about the benefits of using certified material.

Furniture
Sustainable Wine Storage
The 10 Cases is a busy restaurant, wine bar and shop
based in the heart of London’s theatre district. Sorrells was
appointed to create a combined wine storage area and
dining room in the underused basement of the building. The
limited space made the project a challenge, but now the
revitalised area is a fabulous venue which is available for hire.

The PEFC-certified Redwood chosen for the wine racking

is ideal. It’s a practical and durable option for an area
that is constantly used by staff selecting bottles to serve
or sell. Ease of access is also important as hundreds of
bottles are kept below stairs, supplying the wine bar, shop
and restaurant. For restaurants seeking durable storage
solutions, there is a great choice of PEFC-certified wood,
in a wide range of finishes. The 10 Cases also used dark
oak as it was essential for the wine storage area to look
attractive because it was on display.

Packaging
Greggs Celebrate Christmas with Certified Coffee Cups
PEFC was delighted when the Greggs high street bakery chain
added the PEFC label to its coffee cups. Greggs serves a variety of
freshly ground Fairtrade coffee as part of its wide ranging fresh food
and drinks offering and has been a Fairtrade partner for the past 10
years. With PEFC’s distinctive ‘two trees’ label, coffee lovers can be
confident that they are drinking their Fairtrade coffee in a cup made
from responsibly-sourced materials. The Christmas-themed cups were
manufactured and supplied by leading UK paper cup manufacturer,
Benders Paper Cups.

Greggs has a strong commitment to responsible sourcing and to

ensuring procurement decisions are made as sustainably, ethically and
responsibly as possible. This ensures Greggs purchases are produced
and delivered in a way that avoids the exploitation of workers, animals
and the environment, demonstrating that it has carefully considered the
wider implications on its business of sourcing choices.
 05
Construction
Network Rail, Abbey Wood Station Roof
One of London’s newest railway
stations delivered by Network Rail
as part of the Crossrail project, is at
Abbey Wood. The striking station
building and concourse marks the
start of the transformation of transport
links for Abbey Wood which will be
served by existing Southeastern rail
services and the Elizabeth Line from
December 2018.

Wiehag designed, supplied and

installed the ‘free-form’ roof structure
comprising single and double curved
Glulam, Cross Laminated Timber
(CLT) and steel to form the distinctive
Manta Ray shaped roof. For the
project, 190m3 of Glulam and CLT – all
PEFC-certified – resulted in about 190
tonnes of CO2 being captured helping
make the building carbon neutral for a number of years. Despite being CLIENT: Network Rail
one of the most complicated projects Wiehag has ever worked on, MAIN CONTRACTOR: Balfour Beatty Rail Projects Ltd
both in terms of design and logistics, Wiehag’s package was delivered ARCHITECT: Fereday Pollard
on time, on budget and to a quality that delighted the client. Along with ENGINEER: Tony Gee & Partners
Crossrail Place at Canary Wharf, this station has become one of the DESIGN, SUPPLY & INSTALLATION OF GLULAM/CLT:
‘pin ups’ for the whole Crossrail project and is an ultra-complex design Wiehag GmbH
pushing the boundaries of what’s possible using timber.

Packaging
House of Fraser
House of Fraser worked with PEFC UK to reduce the
environmental footprint of its customer carrier bags. They
introduced the new bags in 2017 across 58 stores in the UK
and they are all made from PEFC-certified paper. Eight out
of ten House of Fraser customers said they want products
and packaging that are responsibly sourced. With PEFC
certified paper bags, House of Fraser and its customers can
be confident the wood-based fibre used in their production
comes from sustainably-managed forests and can be traced
through the supply chain. The PEFC label on each bag
provides customers with a visible sign of responsible sourcing.
PEFC INTERNATIONAL 06
BEN GUNNEBERG, SECRETARY GENERAL, PEFC COUNCIL
In 2017, we welcomed national members from
Bulgaria, Republic of Congo and South Africa,
alongside six international stakeholder members.
Hungary achieved the PEFC endorsement of its
national system, and New Zealand celebrated its Image © PEFC International and Jorge Romero (JRPD)

first PEFC-certified hectares. Several of our members also made great progress
towards endorsement, with Cameroon, Republic of Korea, Macedonia and Romania
all submitting their national systems for assessment.
While the endorsement of national forest new project to bring sustainable forest (PEFC ST 1001) and the procedures for the
certification systems lies at the heart of management to Myanmar, thanks to the assessment and endorsement of national
our work, it is far from being all that we support of the Prince Albert II of Monaco forest certification systems (PEFC GD
do. Public outreach, bringing the story Foundation. 1007).
of sustainably managed forests into the
wider world, is also an extremely important We once again received a fantastic range of We ended the year in Finland when the
element. Alongside the PEFC International project proposals for the PEFC Collaboration PEFC alliance came together under the
team in Geneva, our members around the Fund. I am always impressed by the banner of Making Certification SMART:
world carry out a wide range of innovative imagination and innovation demonstrated by the theme of the 2017 PEFC Stakeholder
activities to spread the word about PEFC, these projects, our partners and members. Dialogue. We explored the benefits and
sustainable forest management and The chosen projects will help us to link potential for incorporating technology
certification. From exploring the potential urban centres to forest communities, solutions into forest certification. As part of
of forests in fashion to a worldwide photo enable sustainable charcoal to make it onto PEFC forest Certification week, the event
contest – 2017 was a busy year! people’s barbecues and help build vibrant brought together forest sector stakeholders,
forest communities. leading technology providers, innovators and
One of the key ways we support the growth sustainability experts to share perspectives,
of forest certification around the world In early 2016, we kicked off our latest experiences and highlight some innovative
is through our projects and partnerships. standards revision process. The process has applications of technology, to jump-start the
Working this way, we enable stakeholders involved hundreds of experts and thousands conversation about how this approach can
to develop national systems, increase the of stakeholders. Although not yet complete, advance forest certification.
area of sustainably managed forests, grow we have made a lot of progress in 2017.
market demand for responsibly produced For example, we have been able to finalise In closing, I would like to thank you all for
products and improve access to forest and publish both the revised requirements your personal and corporate contributions
certification for forest owners. Particularly for the development and review of national to our common goal of securing a healthy
exciting in 2017 was the launch of a sustainable forest management standards future for the world’s forests.

The 22nd PEFC General Assembly, held 15 November 2017 in Helsinki, Finland. Image © PEFC International
 GROWTH OF FORESTRY AND COC 07
Global growth of PEFC membership

PEFC members with endorsed systems PEFC members with systems not yet endorsed

Continental certified forest area

A little over 11% of the global forest
area is currently certified, the majority
of it to PEFC endorsed sustainable
forest management systems. Total:
2% Central & South America:


6,141,372 hectares
144 Chain of Custody certificates
313,485,220


North America:
171,896,679 hectares
458 Chain of Custody certificates
55% hectares 5% Asia:


14,875,556 hectares
1,199 Chain of Custody certificates

Europe:
96,480,843 hectares
9,449 Chain of Custody certificates
31% 7% Oceana:


24,090,770 hectares
224 Chain of Custody certificates

Global growth in PEFC-certified forest area Global growth in Chain of Custody certificates
313.5
301.6
300 12,000
11,484
272.1 10,976
263.2 10,591 10,744
253.1
250 245.1 10,000 9996
237.4 9529
229.6
217.7 223.5 8797
200 187.7 193.8 194.4 8,000 7688

6166
Certified forest area (millions of hectares)

Number of Chain of Custody certificates

150 6,000

4420
100 4,000 3545
2901
2362
50.9 55.3
50 41.1 46.1 2,000 1905
32.4 1100
463
0.0 59
0 0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

YEAR YEAR
GOVERNANCE 08
PEFC UK is a membership association which represents a broad range of stakeholder
interests. Every PEFC-certified company in the UK automatically becomes a member of the
organisation with full voting rights at the Annual General Meeting. Additionally, PEFC also
counts organisations which share PEFC’s commitment to sustainable forest management and
responsible sourcing amongst amongst its membership.
These include the Timber Trade Federation,
the Paper and Board Association,
Confederation of Paper Industries, Wood
Panel Industries Federation and the
Structural Timber Association. The forestry
sector is represented by CONFOR, the
Commonwealth Forestry and the United
Kingdom Woodland Assurances Scheme
(UKWAS) and the Country Land &
Business Association.

PEFC UK recognises the importance

of having stakeholders represented on
its Governing Board. We are fortunate
enough to be able to call upon the
expertise of senior figures from a number
of industry sectors including forestry and
those trading in forest products.

ROSS BRADSHAW STEVE COOK JULIA GRIFFIN

Ross Bradshaw has worked in the paper
manufacturing industry for thirty years. He began
his career in manufacturing by training as a
paper maker in Aberdeen. Working in heavy
industry while living in a rural setting, led to an
early interest in the effects of the paper making
industry on the environment and the positive
role it plays. He has worked with a number of
industry groups including the Paper and Board
Association and Stationers’ Company, the City of
London Livery Company for the Communications
and Content industries, where he is a Liveryman.
He is also a Trustee of the New England Trust,
an East Sussex community woodland project.
Currently, Ross runs his own paper agency
business representing a number of speciality
paper mills from the USA and Europe, offering
bespoke packaging. He is PEFC UK’s longest
serving director having joined the Board in 2007.
Steve Cook is the Product Improvement
& Innovation Manager for Willmott Dixon
Construction, one of the largest privately
owned main contractors in the UK. He
has 28 years of varied experience in the
construction industry having joined the
industry as an apprentice carpenter. Steve
joined the PEFC Board in 2013 and is our
lead for the construction sector. During his
time chairing the UK Contractors Group
(UKCG) Materials Task Group he led
the development of organisational policy
to improve the procurement of timber
which was adopted by its members. He
is also chairman of Grown in Britain - a
not for profit industry-led, government
backed organisation - to create a more
sustainable future for the UK’s woodlands
and forests.
Julia Griffin is a member of B&Q’s Social
Responsibility team. Her area of expertise
is timber and peat. B&Q is a UK home
improvement retailer, owned by Kingfisher
PLC. Julia works with the Commercial,
Quality Assurance teams and suppliers to
monitor timber and forest products sourced
by the business to ensure they meet the
requirements of B&Q’s Timber & Paper
Policy & Buying Standard. She is also
responsible for reporting performance to
the B&Q Board, Kingfisher Board Network
and BM TRADA for Chain of Custody.
Julia has been the timber expert in B&Q’s
Social Responsibility team for twelve
years and has first-hand experience of the
practicalities and challenges associated with
implementing and adhering to a responsible
timber sourcing policy.

SIMON HART
Simon Hart, FICFor, FRICS, joined Egger
Forestry in 2013 to head up a new forest
management division offering the full range
of forestry services to private owners in the
north of England and Scotland. Simon brings
over 30 years’ experience in the forestry
sector, mainly in commercial conifers. His
knowledge includes acquisitions, economic
appraisals, management and valuations. He
also runs Egger’s forest certification scheme
and sits on the UK Woodland Assurance
Standard Steering Group. Prior to joining
Egger, Simon worked for UPM Tilhill, mainly
in forestry investment, but since 2000 he
has also audited woodlands to the UKWAS
standard. He is a Fellow of both the Institute
of Chartered Foresters and RICS and is a
Registered Valuer.
ELISABETH PIVETEAU-BOLEY
Elisabeth Piveteau-Boley is UK &
Ireland Export Manager at PiveteauBois,
one of France’s leading softwood
sawmillers and manufacturers of timber
solutions for the construction, landscaping
and energy sectors. Elisabeth comes
to the family company with 20 years’
experience in sales and business
development in the intellectual property
and scientific information markets, having
worked at industry leaders Thomson
Reuters, Lexis Nexis and Macmillan. Her
mission is to develop and grow a customer
base for its value-added products in
the UK and Ireland as well as raise the
awareness of France as Europe’s joint 4th
largest softwood producer with Austria.
DAVID LESLIE
David Leslie is a Director of James
Jones and Sons Ltd, Scotland’s largest
independent sawmiller and one of the
leading suppliers of British timber in the
UK. He is responsible for the Group’s
roundwood procurement, co-products
and logistics as well as for the company’s
Northern sawmills at Mosstodloch, Aboyne
and Kirriemuir. In addition to his PEFC
role, David is a member of the Perth &
Argyll Forestry Forum, a board member of
SIRT (The Strategic Integrated Research
in Timber), a member of EGTTS (Expert
Group on Timber Trade Statistics), the
Institute of Chartered Foresters and the
steering group of the Forest Industry
Safety Accord (FISA).
JOHN SANDERSON
John Sanderson is Head of
Environment, UK & Ireland for UPM-
Kymmene, a global forest products group
with core businesses in printing and
specialty papers, label materials, wood
products and bio fuels. John has worked
exclusively for UPM since graduating from
the University of Wales almost thirty years
ago with a degree in wood science and
forestry. An increased focus on business
responsibility from UPM’s stakeholders
has led to an unprecedented increase in
need for transparency, commitment and
performance. John’s current role provides
sustainability support and steering to
UPM’s paper business, as well as support
for to their UK operations and customers.
09
ANDERS OLSSON
Anders Olsson has more than 20
year’s industry experience in the global
consumer packaging sector. He is
currently Commercial Director for the
UK and Ireland and Strategic Account
Lead with WestRock, the corrugated
and consumer packaging specialist
which was formed when MeadWestvaco
merged with Rock-Tenn in 2015. Prior
to the formation of WestRock, Anders
was Commercial Director for the UK
and Ireland with MeadWestvaco for just
over six years, joining them in 2012 from
packaging beverage specialist, Tetra Pak,
where he held a variety of positions from
1997, most recently as Marketing and Key
Account Director for Ireland.
ROB SHAW
Rob Shaw, FICFor, CMIOSH, who
graduated from Aberdeen University in
1988, has been a long-term proponent
and pioneer of Forest Certification. He
led the first commercial FSC Scheme in
the UK and has carried out international
certification consultancy work in Ireland,
Latvia, and Slovakia. He has served on the
UKWAS Steering Group, including a spell
chairing the Chemical Working Group.
He also chaired a Forest Industry Safety
Accord working group for 2 years. In 2016,
he joined the Soil Association’s Forestry
Technical team. He is helping to develop
the organisation’s systems and maintain its
position as a leading Certification Body for
FSC and PEFC schemes worldwide. He is
also midway through a part-time Executive
MBA at the University of Edinburgh.
AUDITED ACCOUNTS
DIRECTORS
The directors shown below have held office during the whole of the period from 1 August 2016 to the date of this report.
Mr R N Bradshaw Mr R Shaw
Mrs J Griffin Mr J A Sanderson
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
The directors are responsible for preparing the Report of the
Directors and the financial statements in accordance with applicable
law and regulations.
Company law requires the directors to prepare financial statements
for each financial year. Under that law the directors have elected
to prepare the financial statements in accordance with United
Kingdom Generally Accepted Accounting Practice (United Kingdom
Accounting Standards and applicable law). Under company law the
directors must not approve the financial statements unless they are
satisfied that they give a true and fair view of the state of affairs of
the company and of the surplus or deficit of the company for that
period. In preparing these financial statements, the directors are
required to:
• select suitable accounting policies and then apply them
consistently;
• make judgements and accounting estimates that are
reasonable and prudent;
The directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the company’s
transactions and disclose with reasonable accuracy at any time
the financial position of the company and enable them to ensure
that the financial statements comply with the Companies Act
2006. They are also responsible for safeguarding the assets of the
company and hence for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
STATEMENT AS TO DISCLOSURE
OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit
information (as defined by Section 418 of the Companies Act
2006) of which the company’s auditors are unaware, and each
director has taken all the steps that he or she ought to have taken
as a director in order to make himself or herself aware of any
relevant audit information and to establish that the company’s
auditors are aware of that information.
AUDITORS
The auditors, MMG Archbold CA, will be proposed for re-
appointment at the forthcoming Annual General Meeting.
This report has been prepared in accordance with the provisions of
Part 15 of the Companies Act 2006 relating to small companies.
ON BEHALF OF THE BOARD:
R N Bradshaw - Chairman
10
Mr D S Leslie Mr S Hart
Mr S Cook Mr A Olsson
REPORT OF THE INDEPENDENT AUDITORS
TO THE MEMBERS OF PEFC UK LIMITED
Opinion
We have audited the financial statements of PEFC UK Limited
(the ‘company’) for the year ended 31 July 2017 which comprise
the Income Statement, Balance Sheet and Notes to the Financial
Statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their
preparation is applicable law and United Kingdom Accounting
Standards, including Financial Reporting Standard 102 ‘The
Financial Reporting Standard applicable in the UK and Republic of
Ireland’ (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the company’s members, as a body, in
accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the
company’s members those matters we are required to state to them
in a Report of the Auditors and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the company and the company’s members
as a body, for our audit work, for this report, or for the opinions we
have formed.
In our opinion the financial statements:
• give a true and fair view of the state of the company’s affairs as
at 31 July 2017 and of its surplus for the year then ended;
• have been properly prepared in accordance with United
Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of the
Companies Act 2006.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in
relation to which the ISAs (UK) require us to report to you where:
• the directors’ use of the going concern basis of accounting in
the preparation of the financial statements is not appropriate; or
• the directors have not disclosed in the financial statements
any identified material uncertainties that may cast significant
doubt about the company’s ability to continue to adopt the
going concern basis of accounting for a period of at least
twelve months from the date when the financial statements are
authorised for issue.
FOR YEAR ENDING 31ST JULY 2017
Other changes in directors holding office are as follows:
Ms E Piveteau-Boley appointed 15 January 2017
Opinion on other matters prescribed by the Companies
Act 2006
In our opinion, based on the work undertaken in the course of the
audit:
• the information given in the Report of the Directors for the
financial year for which the financial statements are prepared is
consistent with the financial statements; and
• the Report of the Directors has been prepared in accordance
with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company
and its environment obtained in the course of the audit, we have not
identified material misstatements in the Report of the Directors.
We have nothing to report in respect of the following matters where
the Companies Act 2006 requires us to report to you if, in our
opinion:
• adequate accounting records have not been kept, or returns
adequate for our audit have not been received from branches
not visited by us; or
• the financial statements are not in agreement with the
accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law
are not made; or
• we have not received all the information and explanations we
require for our audit; or
• the directors were not entitled to prepare the financial
statements in accordance with the small companies regime and
take advantage of the small companies’ exemption from the
requirement to prepare a Strategic Report or in preparing the
Report of the Directors.
Responsibilities of directors
As explained more fully in the Statement of Directors’
Responsibilities, the directors are responsible for the preparation
of the financial statements and for being satisfied that they give
a true and fair view, and for such internal control as the directors
determine necessary to enable the preparation of financial
statements that are free from material misstatement, whether due
to fraud or error.
11
In preparing the financial statements, the directors are responsible
for assessing the company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either
intend to liquidate the company or to cease operations, or have no
realistic alternative but to do so.
Our responsibilities for the audit of the financial
statements
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue a Report
of the Auditors that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial
statements.
A further description of our responsibilities for the audit of the
financial statements is located on the Financial Reporting Council’s
website at www.frc.org.uk/auditorsresponsibilities. This description
forms part of our Report of the Auditors.
Derek Grant MA (Hons) CA (Senior Statutory Auditor)
for and on behalf of MMG Archbold
Statutory Auditor
Chapelshade House
78-84 Bell Street
Dundee
DD1 1RQ
11 April 2018
INCOME AND EXPENDITURE 12
PEFC UK income and expenditure account
for the year ended 31st July 2017

2017 2016

£ £
522,115
TURNOVER 533,964
Administrative expenses 471,831 437,428

OPERATING SURPLUS 50,284 96,536

Interest receivable and similar income 80 15

SURPLUS BEFORE TAXATION 50,364 96,551

Tax on surplus 9,883 19,309

SURPLUS FOR THE FINANCIAL YEAR 40,481 77,242

Breakdown of PEFC UK Ltd expenditure

for the year ended 31st July 2017 The pie chart on the left provides a breakdown
of expenditure

30%
PEFC
Council fees

29% and Consultancy

Marketing, Commications

Turnover:
21% admin and IT
Office rent, salaries,

£522,115 7% and sundry expenses

Travel, subsistence

for 31/07/2017
5% AGM and GA
Meetings including

3% sponsorship
Subscriptions and

5%
Other
INTERNATIONAL PHOTO CONTEST 13
Last year PEFC ran its first global photographic competition on the theme of Experience
Forests, Experience PEFC. The contest called on photographers from around the world to use
their imagination and camera skills to show what forests mean to them.
The competition ran from from Earth Day
(22 April 2017) to World Environment Day
(5 June 2017) and not only sought to
showcase the beauty of the environment but
also the diverse ways forests operate, the
people and wildlife living and working in them
and how forests ultimately provide a range of
amazing products.

Globally, more than 11,000 photographs

were submitted from 23 national member
countries. In the UK alone, we received more
than 300 entries. The First Prize for the best
photograph, entitled Autumn Glory, was taken
by Andrew Clayborough from Otley, West Autumn Glory, by Andrew Clayborough
Yorkshire. It depicted a peaceful forest scene
in the Lake District.

The winning photographs from each

participating country were then entered into
an international competition and shortlisted
to 12 finalists. In November 2017, the
accolade of PEFC Photographer of the Year
with a prize of 3,000 Swiss Francs, went to
conservation biologist Gareth Goldthorpe,
for his stunning photograph entitled Morning
Star which was taken in Bellecombe forest in
France.

Not only were we seeking pictures which

showed how people use forests for work and
relaxation, but also to demonstrate how birds, Morning Star, by Gareth Goldthorpe
animals, insects and variety of wildlife rely on
them for food and shelter and our finalists did
not disappoint.

Miroslav Saniga, from Slovakia, was a runner

up in the international competition for his
fantastic photo of baby owls. Other highly
commended images featured people enjoying
the forest for recreation and workers who
depend on forests for their livelihoods.

All of the images submitted were wonderful

and some were genuinely outstanding in
revealing the many different dimensions of
the world’s forests. The 12 best images were
eventually used for the PEFC 2018 calendar
which was widely distributed to our customers Wondering Babies of the Boreal, Miroslav Saniga
and stakeholders.
 14

Photo credits: B&K Structures, Decker, Egger, House of Fraser,

KLH UK, Kris Linn International Design, Matt Khawam, Network Rail,
iStock, PEFC International, PEFC Spain, Royal Forestry Society,
PEFC UK PEFC COUNCIL Sorrells, Stora Enso, Wiehag

Sheffield Technology Parks ICC Bâtiment C1

Cooper Buildings 20 Route de Pré-bois
Arundel Street 1215 Genève 15
Sheffield S1 2NS Switzerland
t +44 (0)114 307 2334 t +41 22 799 4540
e info@pefc.co.uk e info@pefc.org
w www.pefc.co.uk w www.pefc.org
PEFC/16-01-01