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,

1. hing
cers of was
fines produ ement case er a
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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
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UK co paign led b have been p e environm
am s lping t
h
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ti ng me a way of he
marke ices as
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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

4. 4

5. ASTM D7612-10 – Wood Labels & Claims
Categories:
– Non-controversial / Legal sources
– Responsible sources
– Certified sources
Later, maybe: Protective / Eco-forestry
sources
5

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

14. 14