Proctor & Gamble and Unilever were fined €315.2 million total by the European Commission for operating a cartel in detergents in Europe between 2004-2011. The companies were found to have fixed prices and shared markets for household powder detergents. Rona pulled a green-tinged commercial that it was unfairly accused of maligning old-growth forests in BC. Independent UK companies have been accused of "greenwashing" by promoting paper and services as a way of helping the environment while actually increasing costs for consumers. A roadmap is outlined for developing sustainable forest product claims and ensuring they are substantiated through due diligence in wood tracing and supply chain management. Key issues addressed include governance,
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B.C. Doug from the fo een-tinged
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gled out: O not that th that it was l
FSC-certif ld-growth e ad's mes unfairly
ied wood. Douglas fi sage was w
r and the s rong . . . it
olution it re was
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1
2. Something New Under the Sun?
The Strategic Role of Managed
Forests and Forest Products in Global
Sustainable Development
Are Markets for “Green” Products
Sustainable?
A Roadmap for Forest Products
Cassie Phillips
Vice President, Sustainable Forests & Products
June 20, 2011
3. hing
cers of was
fines produ ement case er a
l
mi ssion cartel sett amble and Uniiln the ev
Com in n kel
itrust: 15.2 million y fined Proctor ether with He ropean Unio
te & G n
Ant 3 g u
toda ig h t E
wder €n Commission perating a rca etergents in e pril 13, 2011)
rtel
po pe a for o e d A ,
u ro io n wd elease
The E € 315.2 mill dry po ress R Vancouve
f l d la u n nP
total o or househo missio r Sun, May
m ar ket f ropea n Com Rona wand 2, 2011
r ie s. (Eu ers into a d
co u n t Canad
ian home im ark forest
. . . after ru prov ement gian
nning into t Rona has
maligning complaints pulled a gr
B.C. Doug from the fo een-tinged
what it sin las fir. It's rest sector commercia
gled out: O not that th that it was l
FSC-certif ld-growth e ad's mes unfairly
ied wood. Douglas fi sage was w
r and the s rong . . . it
olution it re was
commende
d:
im s
arket ing claracks
rop m pped in their nies'
t
1, 201
1
ced to d
n sto ompa
.Co.UK
, May
mpan ies forhing" have beendustries. C nic billing
ndent si
ing' co d of "greenwa mmunication r cost of elect
s ro
Indepe sh
wa
'Green ations accu paper and ting the low . .
se co e
rpor y the romo ent .
UK co paign led b have been p e environm
am s lping t
h
by a c ssage
ti ng me a way of he
marke ices as
and s erv
3
6. Roadmap for Due Diligence
Substantive issues
– Governance-related
– Public resources / externalities
– Private resources /
market – driven
Claims
Wood tracing
Due process
6
7. Claims
– Must be true
– Can’t be deceptive
• E.g., by exaggerating risks
– Must be substantiated
when made
• Including comparisons
7
8. Tracing
Must be able to trace supplies
to the degree necessary to
substantiate claims
– Mistakes common
• “Chain of custody means products are traced
from the certified forest to the store shelves”
• “Our products don’t come from old growth/
clearcutting/”whole trees”/conversion”
That is, any attribute that can be verified only
at the acre
8
9. Due Diligence
Start by tracing sources to a
geography, resolving issues at
the largest scale possible
– First national (minimal necessary level of tracing)
– Then regional / ecoregional / state or provincial if necessary
– Then the mill’s wood basket if necessary
If issues remain, look at the supply chain
– First species
– Then individual suppliers if necessary
9
10. Non-controversial sources
– Sourced from areas with good
governance, reducing risk to
acceptable levels
• U.S. and Canada
– Objective references needed for due diligence
• WTO requirements, defamation risks
• FSC Controlled Wood assessments
• WRI Forest Legality Alliance
– If country risk is not manageable, use tools to
manage risk through supply chain
• Stair-step approaches, third-party auditing
10
11. Responsible sources
– Sourced from areas with regulatory
or quasi-regulatory programs
addressing primarily water quality
• Some states and provinces
• Again need objective references
– In North America, SFI uniquely offers a supply
chain approach, requiring BMP compliance
• Should be used where BMPs are not regulated
• Should expand beyond traditional forest products
Biomass
11
12. Certified sources
– Sourced from lands certified to any
of the major global standards
• CSA, FSC, PEFC, SFI, Tree Farm
– Most restrictive and most sensitive
• Only category requiring third-party certification and chain
of custody
• Only 10% of the world’s forests are certified
– System governance must be voluntary, consensus
processes
• Offering adequate “due process” for those affected
• Required for government use per OMB Circular A-119
• Offers limited antitrust “safe harbor”
12
13. Protective sources?
Needed to address the desire
for a “premium” label
– FSC doesn’t consistently deliver against
criteria important to stakeholders
• E.g., RONA ad
– ASTM D7612-10 pilot proposed using natural forest
management where exemplary – i.e., not commonplace
– Other ideas for objective
measures are needed and
stakeholder discussion
13