printversion


The following documents illustrate that FSC is good business.


Rainforest Alliance, “Are There Economic Benefits from FSC Certification - Analysis of Pennsylvania State Forest Timber Sales”, April 2008

The Rainforest Alliance analysed 6 years of data from timber sales on Pennsylvania state forestland to determine whether FSC-certified buyers are paying more for timber than non-certified buyers.

Between 2001 and 2006 higher bid prices offered by FSC-certified buyers translated into roughly a 10% increase in revenue for the Pennsylvania state forest over what would have been earned in the absence of certification. The proportion of timber sold to FSC-certified buyers and the dollar value of those sales has increased dramatically since the state forests were first certified by FSC in 1998.

These results indicate that, in addition to any environmental or social benefits that FSC certification has brought to the management of Pennsylvania’s state forests, certification has led to economic benefits in the form of higher prices being paid for state forest timber sales.


Ehime University (Japan), Faculty of Agriculture, Ikuo Ota, “A forest owners’ cooperative in Japan: obtaining benefits of certification for small-scale forests”, 2007

In: Unasylva 228, Vol. 58, page 64-66

Economic benefits from certification can be sought through price premiums, but the case of Yusuhara Forest Owners’ Cooperative shows another way of achieving economic gain. Intermediaries do not usually want to buy certified timber at a higher price. In this case ecologically minded builders who demand certified timber will obtain it not from retailers’ shelves, but directly from certified sawmills. Such direct sales are growing with the trend in environmental awareness in Japan today.

Forest certification has brought another advantage for small-scale forest owners: self-confidence. It provides for many of them a motivation to manage their forests well. Representatives of more than 100 companies, organizations and local governments visit Yusuhara every year to see the FSC-managed forest and the local forest management practices.


Michael E. Conroy, “Branded! - How the ‘certification revolution’ is transforming global corporations”, July 2007

This well-researched book makes the case that a certification revolution in the last 15 years has led to a profound transformation of the social and environmental practices of global corporations. The history and success of FSC is described in detail. Michael Conroy concludes that FSC is the most important example of increasingly successful certification systems that are transforming major industries around the world.

The book gives a number of examples of FSC's success in the market: in 2006 in the US alone there were 50 new CoC certificates issued to paper-related firms, including the largest printers and paper merchants. FSC's success on the market can best be summarized by its widespread public acceptance, strengthened market access, and demand that constantly exceeds supply.

Michael Conroy is an economist who worked for 25 years at the University of Texas and worked as a program officer at the Ford Foundation and the Rockefellers Brothers Fund for another dozen years. He was Senior Lecturer and Senior Research Scholar at the Yale School of Forestry and Environmental Studies. He is now and independent consultant.


Markets Initiative, “Environmental leadership in the paper supply chain -Trend report 2007”, 2007

In only 6 years, 60% of literary publishers in Canada and 40% in the United Kingdom have started to shift to eco-friendly options, such as high-recycled fibre and FSC content papers. A recent national poll in Canada reveals that 94% of newspaper readers, particularly the 18-34 demographic, think publishers should be using environmentally friendly paper.

Over the coming years, Markets Initiative predicts that addressing climate change will be a major factor in determining new investments in paper manufacturing. One of the things that will become central to the CO2 reduction plan are low-carbon papers with high recycled content, agricultural residue fibre and FSC fibre.


ForestEthics, “A brighter shade of green”, May 2007

This report is an ambitious new conservation agenda and new green business model for the Canadian forest industry, necessary to combat Global Warming and species loss. The report states that FSC represents the leader and threshold for credible forest products certification. Other certification schemes such as SFI and CSA do not provide credible and environmentally sound standards. The report therefore recommends to apply FSC certification to all logging operations to assure the marketplace that Canada’s forest practices are environmentally and socially sound.


PricewaterhouseCoopers, “Sustainable Investments for conservation - The business case for biodiversity”, February 2007

This report (on behalf of WWF Germany) concludes that it is possible to combine nature conservation with private investment in a way that produces a satisfactory return on the capital invested. One of the case studies is an FSC-certified company, the other two look at ecotourism.

The report states that economic advantages of forest certification are now generally recognised. If it is credible and transparent - FSC is mentioned as the best system - certified products can in general be sold at higher prices. To commodity products such as cellulose or plywood this only applies to a limited extent.

Access to new markets or improved protection against market restrictions are also advantages. An improved image will also pay dividends in the medium term.  Opportunities in sustainable forestry are thought to mainly arise from the expected surplus demand for certified tropical timber. FAO estimates that the demand for industrial roundwood will increase by about 25% from 1996 to 2010. According to information provided by UNECE and FAO, market price premiums of between 12% and 20% are obtained for FSC-certified sawn hard woods.

The report identifies risks associated with the acquisition of forests. It might not be possible to identify all land use rights before acquisition and claims may be asserted at a later date. Risks arise as a result of corruption and changes in administrative structures. This could cause delays in the issue of official permits. Ironically FSC-certified companies that adhere strictly to the laws and regulations are particularly badly affected by such delays.

The report concludes that privately organised and financed self-supporting projects can make a valuable contribution to nature conservation and the preservation of biological diversity. It recommends government to set up programmes for assisting or co-financing such sustainable investments.


Ehime University (Japan), Faculty of Agriculture, Ikuo Ota, “Experiences of a Forest Owners’ Cooperative in using FSC Forest Certification as an Environmental Strategy”, 2006

In: ‘Small-scale Forest Economics, Management and Policy’, 5(1): 111-126

This paper analyses the detail of forestry activities and changes which occurred in Yusuhara Forest Owners’ Cooperative (YFOC) in Kochi Prefecture in Japan after certification by FSC. With the continuous efforts of selling FSC certified wood in the domestic housing construction market, YFOC has substantially increased their timber sales in recent years. It is a noteworthy event in Japanese small-scale forestry, which has been struggling with declining economic performance for many years. It is concluded that the FSC certification system is a possible tool to revitalise Japanese small-scale forestry as well as obtain favourable environmental outcomes.


Yale University, Constance L. McDermott, “FSC in the Northern Appalachians: A regional and sub-regional analysis of Forest Stewardship Council certification as a tool for forest conservation”, December 2006

This report was commissioned by the Kendall Foundation, funded by a grant to the Yale University Program on Forest Certification. The report aims to inform foundations and other interested parties of how potential investments in FSC certification programs might further goals to restore and protect the ecological integrity of the Northern Appalachians (North-Eastern US/South –Eastern Canada).

The report concludes that limited market demand has inhibited FSC’s growth in the northern Appalachians. Sustained producer support will require systematic and strategic attention to market incentives. The current market success story of the pulp and paper sector with reports of increased market access and price premiums for certified wood is mentioned as an example.

Furthermore the report suggests integrating FSC with other conservation tools. FSC certification has been used to set the terms of conservation easements and monitor easement management. Easements in turn, help to cover the costs of certification. Other examples of policy tools that can work synergistically with the FSC include government tax incentives and stewardship programs, carbon credit markets and other markets for environmental services.


Yale School of Forestry & Environmental Studies, B. Cashore, F. Gale, E. Meidinger & D. Newsom, "Confronting sustainability - Forest certification in developing and transitioning countries", July 2006

This book represents a comprehensive and rigorous effort to understand better how forest certification has emerged in developing and transitioning countries. Despite its very uneven institutionalisation across the globe and within regions, it is clear that where it is being implemented, forest certification is having a range of positive effects on power relations, workers and communities, business and the environment.

A wide range of positive effects of FSC certification is identified at the level of the firm:

In order for FSC to remain successful a number of issues need to be addressed, these include:


FSC International, News+Notes volume 4 - issue 8, 31 August 2006

Results of 2005 market surveys among other things show that:


School of Int. Tropical Forestry & University Malaysia Sabah & Sabah Forestry Department, “Do certified tropical logs fetch a market premium? A comparative price analysis from Sabah, Malaysia”, 10 March 2006

Some studies claim evidence that consumers are willing to pay a market premium between 2% and 30% for sustainably produced, certified timber products. Others doubt or flatly deny this notion. Most of these studies are based on willingness-to-pay surveys of consumer demand leaving aside the crucial question whether or not the producers of certified (tropical) logs, which bear the costs of forest certification, obtain a financial reward for their efforts.

This paper by the School of International Tropical Forestry, University Malaysia Sabah and Sabah Forestry Department contributes quantitative evidence to the on-going debate. Time series of prices of FSC certified and uncertified (tropical) logs (2000 to 2004) provided by three forest management units from Sabah, Malaysia, were examined in a comparative analysis.

The results suggest that forest management certification achieves a market premium for certified (tropical) logs. In particular high quality hardwoods (e.g. Selangan Batu, Keruing) destined for the export market fetch a price premium of 27% to 56%. Lower quality timbers (e.g. Kapur, Seraya) also fetch a price premium, however the difference is less pronounced (2% to 30%).


WWF UK & BankTrack, “Shaping the future of sustainable finance - Moving the banking sector from promises to performance”, January 2006

Today most major banks and their key stakeholders agree that financiers bear significant responsibility for the environmental and social impacts of the operations they finance. The question is what substantive standards should they apply? How should they implement them? And how should they assure compliance? This report helps to answer those difficult questions and evaluates how the various banks are responding.

On the issue of forest protection the report states that while an increasing number of certification schemes have emerged, the standards of FSC are considered to be the most credible and have been widely adopted. Also, adopting the FSC standards and certification requirements is an effective way to combat illegal logging because of the requirements to track and disclose the chain of custody.

The report refers to WWF’s Guidelines for Investment in Operations that Impact Forests that translates international standards and best practice related to the forest sector into recommendations for the financial sector. Banks should develop sector-specific policies that (among other things) require from their clients:

  • that all forest practices or products reflect sustainable forest management practices that are certified or in the process of being certified by FSC or another credible certification scheme;
  • where FSC or equivalent certification is not in place, a commitment is sought to develop a time-bound certification action plan with independent third party verification by the FSC;
  • implementation of a transparent and systematic wood tracking system, to ensure that the client is not inadvertently involved in illegal logging operations.


Rainforest Alliance & Southern Forests Network, “Market Opportunities for FSC Certified Wood Products in the Southern Appalachians”, January 2006

Although current supplies of and demand for FSC-certified forest products are difficult to quantify, recent research carried out by the Southern Forests Network and Rainforest Alliance shows that both are growing. A survey of US Green Building Council members demonstrates a ready and growing market for FSC building materials and durable goods. Results indicate that the primary factor limiting more rapid growth of the FSC market is awareness.

Manufacturers, major wood purchasers, retailers and the general public are all uninformed about the mission, availability, impacts, and potential of the FSC label. Survey results indicate that green builders and architects are very receptive to the message of FSC branding and that almost all could be easily persuaded to make an extra effort to specify and purchase FSC products. The survey results leads to a conclusion that very little has been done to raise awareness among green builders, and that fairly minimal outreach efforts could quickly generate demand.


WWF European Forest Programme, "The effects of FSC certification in Estonia, Germany, Latvia, Russia, Sweden and UK", February 2005

This analysis across 6 countries shows that FSC certification is delivering a number of benefits for a wide range of stakeholders in the forest industry, and provides hard evidence of tangible improvements that the voluntary mechanism of credible certification delivers for society, the environment and the economy. Certification has improved the marketing of forest products and improved income by better matching production to market requirements. The need to implement wood tracing systems has also improved the ability to prevent illegal logging.


FSC International, "FSC’s impact on the ground: FSC pulp and paper make headlines the world over", 2005

The past years there has been a noticeable shift in the publications industry toward FSC paper. European book publishers, backed by the growing support and demand of high-profile authors (among others Isabel Allende and Nobel Prize winner José Saramago) are responding to the call to print on FSC paper. The growth in use of FSC paper can be attributed in no small part to the influence of NGOs that call commercial entities to greater responsibility. But commercial interests themselves – particularly those seeking to demonstrate their corporate social and environmental responsibility – are becoming an increasingly significant driver of the certified pulp and paper market.

www.whyFSC.com