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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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How people associate the 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 persons) 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

313 million hectares of forests are certified by 42 PEFC-endorsed
national schemes with 49 global members

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

PEFC’s Vision:
“A world which values the full contribution of sustainable forests”

PEFC’s Mission:
“PEFC is committed to unlocking and building on the full
contribution of forests for a sustainable world”.

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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 people’s 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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Forest Cover and Loss
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
Certification – The Global Picture
Progress to date

28% 60% 10%

28% of the world’s 60% of the total area 10% of the world’s forests
industrial roundwood certified to PEFC are certified
supply is certified

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Certified Forest Area by Country
Country Certified Area (ha) Country Certified Area (ha)

Argentina 22,524 Japan 1,333,209
Australia 23,656,585 Latvia 1,700,889
Austria 3,111,137 Luxembourg 34,677
Belarus 8,710,234 Malaysia 4,120,139
Belgium 299,357 Netherlands 3,240
Brazil 3,590,968 New Zealand 434,185
Canada (CSA) 40,690,858 Norway 7,380,750
Canada (SFI) 97,457,409 Poland 7,252,197
Chile 1,908,712 Portugal 253,657
China 5,759,691 Russia 13,180,950
Czech Republic 1,811,407 Slovak Republic 1,229,324
Denmark 264,180 Slovenia 283,319
Estonia 1,217,631 Spain 2,153,431
Finland 17,784,457 Sweden 11,549,700
France 8,096,117 Switzerland 208,949
Germany 7,424,185 United Kingdom 1,409,761
Indonesia 3,662,517 USA (ATFS) 7,470,576
Ireland 376,108 USA (SFI) 26,277,836
Italy 745,186 Uruguay 619,168
17 Total 313,485,220
Certified Area Growth
350.0
313.5
301.6
300.0
272.1
263.2
253.1
245.1
250.0 237.4
Certified forest area (million ha)

229.6
223.5
217.7

193.8 194.4
200.0 187.7

150.0

100.0

46.1 50.9 55.3
50.0 41.1
32.4

0.0
0.0

Year
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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 Rio Agenda 21 environment and economic

Both schemes have the same overall goal and provide
equivalent assurances of sustainability

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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 Custody Numbers
by Country

Country Country Country Country
Argentina 12 Egypt 1 Malaysia 356 South Africa 4
Australia 195 Estonia 75 Mexico 8 Spain 882
Austria 476 Finland 230 Monaco 1 Sri Lanka 1
Bahrain 1 France 2029 Morocco 4 Sultanate of Oman 1
Belarus 100 Germany 1720 Netherlands 454 Sweden 212
Belgium 304 Greece 3 New Zealand 28 Switzerland 64
Bolivia 1 Hungary 21 Norway 74 Taiwan 7
Bosnia and Herzegovina 2 India 12 Papua New Guinea 1 Thailand 15
Brazil 52 Indonesia 32 Paraguay 1 Tunisia 1
Bulgaria 4 Ireland 39 Peru 9 Turkey 29
Canada 190 Israel 3 Philippines 5 United Arab Emirates 30
Chile 64 Italy 722 Poland 177 United Kingdom 1163
China 300 Japan 394 Portugal 133 USA (PEFC CoC) 260
Colombia 1 Korea, Republic of 5 Romania 23 Uruguay 3
Croatia 7 Laos 1 Russia 27 Vietnam 7
Cyprus 1 Latvia 55 Saudi Arabia 2 Total: 11.484
Czech Republic 174 Lebanon 1 Singapore 26
Denmark 99 Lithuania 10 Slovak Republic 80
Dominican Republic 1 Luxembourg 14 Slovenia 45

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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 2018

• «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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PEFC Standards 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

PEFC ST 1003:2010: Sustainable Forest Management

PEFC ST 2001:2008: PEFC Logo usage Rules

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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 organisation’s
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

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• Identification of material category

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• 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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PEFC’s 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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PEFC’s 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
• 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

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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 Action Required

Timber Procurement Confirm that all timber products are legally and responsibly
sourced in accordance with the UK Government’s Timber
Procurement Policy
http://www.cpet.org.uk/uk-government-timber-procurement-
policy
Water-efficient sanitary equipment Where sanitary fittings are being replaced or upgraded, select options such
as:
• Dual and / or low flush WC’s
• Waterless urinals
• Low flow taps with automatic shut off

Site waste management 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.

Energy-efficient lighting 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

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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 - Paper &
Packaging

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

1.Commitment to suppliers and commitment to ecodesign. Achieved
through the reduction of the weight of glass in the bottles, the use of
packaging made of recycled materials, the purchase of cardboard and
wood boxes from PEFC certified forests and the provision of technical
support and training to suppliers so that they can also improve their
environmental performance.

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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
Target

100% of own brand timber and
paper products from
responsible and sustainable
sources by 2021

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Corporate Procurement

Last December, Christmas-
themed coffee cups carrying
the PEFC label began to
appear in Greggs’
1,800 high street outlets.

Greggs sells more than 1
million cups Fairtrade coffee
a week

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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 Research
When purchasing a product or a service, which of the
following criteria reassure you the most that environmental
considerations and sustainable development had been taken
into account?

Label certifying ethical consideration 53%

Country of origin (i.e. made in the UK 35%

The brand 32%

Recommendations of family/friends 27%

Media recommendation (e.g. TV, press, newspaper, etc.) 22%

Don't know 11%

Other 4%

66 Source: PEFC/YouGov Global Consumer Survey 2017
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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
company’s engagement towards sustainability
• PEFC provides you with access to an increasingly discerning market.

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Want to know more?

• Annual Field Trip to Lockerbie - 15-16 May 2019

• Contractor Field Trip to Windsor – 12th June 2019

• CPD lunchtime sessions for architects, contractors
and their clients – by appointment (N.B. minimum of
10 participants)

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Materials for Contactors
THANK YOU FOR LISTENING

Questions?

Alun Watkins awatkins@pefc.co.uk
Hilary Khawam
hilary.Khawam@pefc.co.uk

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