The Wood and Fiber Supply Chain Experts
Common Ground in the Forest
From the June 2010 Forest2Mill newsletter.
The prevailing narrative describing the relationship between
environmentalists and the forest products industry may be about to change. In May, the two groups
signed The Canadian Boreal Forest Agreement. The agreement covers 170 million acres of boreal
forests; it calls for the immediate suspension of new logging on 75 million acres, the intent of
which is to protect caribou habitat, and for the two sides to spend the next three years defining
restrictions for the remaining 95 million acres. In return, the environmental groups that signed
the agreement will suspend “do not buy” campaigns and eventually endorse products produced by those
forest products companies that signed and follow the agreement.
“Do not buy” campaigns in Canada have focused on the customers of major forest products
companies, and they have been remarkably successful. In the early 2000’s, ForestEthics, one of the
environmental groups that signed the agreement, ran campaigns against Staples and Office Depot,
encouraging consumers not to shop in these stores. In response, both companies revised their
procurement policies, sourcing only environmentally sustainable paper.
After this success, ForestEthics switched targets, focusing in the mid 2000’s on
catalogues. Their first target was Victoria’s Secret, which at the time shipped 395 million
catalogues every year, made almost entirely from virgin fiber. Like Staples and Office Depot,
Victoria’s Secret switched procurement strategies, agreeing that it would no longer use suppliers
sourcing paper from any caribou habitat range unless they were certified and that it would switch
to 10 percent recycled material. These campaigns put tremendous pressure on forest products
companies logging in the Boreal forest to become more environmentally conscious organizations.
In response to these public campaigns, Canada’s paper and wood products companies began a
series of improvements over the last 10 years, including Forest Stewardship Council certification
(FSC certification is a requirement under the new agreement). The companies also responded by
hiring Avrim Lazar as the President and CEO of the Forest Products Association of Canada. Lazar was
best known at the time for his role in Canada’s signing of the Kyoto Protocols. Because of his
pedigree, Lazar’s credibility with environmental groups set the stage for success in finding common
ground in the forest. Still, negotiations took two and a half years.
While the two sides have a long way to go to make this agreement work, it appears that both
sides win. The environmentalists get 75 million acres of protected forest and caribou habitat (with
the prospect of an additional 95 million protected acres). And the forest products companies will
reduce their risk of being judged the bad guys in the court of public opinion.
Additional Stories from the June 2010 Forest2Mill Newsletter:
Industry
Performance Overview
Housing
Market Update
Chip
Prices in the South and PNW Near Parity
“
Got Trees?” Check-Off Programs in the Forest Products Industry
News:
Georgia Pacific & Dixie Pellet