This article is part of a series exploring forest certification systems and is made in collaboration with PEFC. Read Part 1 here.
Forest certification is gaining significant traction as both consumers and businesses push for sustainable practices in the global supply chain.
With initiatives like the Programme for the Endorsement of Forest Certification (PEFC), companies can now demonstrate their commitment to sustainability. However, achieving this certification requires navigating a mix of challenges, opportunities, and evolving demands from both top-down and bottom-up pressures.
Berdaya Talk is an initiative that explores the stories of change makers and the initiatives they have developed to support sustainable development in Indonesia. This time, we are joined by Arie Putra – Marketing Engagement Manager at PEFC Asia Pacific.
A Dual Force: Top-Down and Bottom-Up Pressures
The rise in demand for forest certification is fueled by two main drivers:
- Top-Down Pressure: Large global brands are setting ambitious sustainability commitments that trickle down to regional operations. For instance, L’Oréal’s global commitment to PEFC certification has necessitated adoption across its supply chains, including in Indonesia.
- Bottom-Up Pressure: A growing segment of conscious consumers, particularly Gen Z, is demanding ethical and sustainable business practices. This demographic is projected to become a dominant consumer group, wielding significant influence over corporate strategies. Their expectations push brands to adopt sustainability measures, which in turn influence suppliers across the value chain.
PEFC Certification in Action
PEFC certification offers an actionable pathway for brands to integrate sustainable practices. In Indonesia, several prominent brands, including Paseo, NICE tissue, and Charm diapers, have embraced this certification.
Even in the hospitality sector, sustainability is evident in simple choices like the type of straws or milk packaging used – highlighting a circular economy approach.
To achieve certification, businesses undergo a rigorous assessment conducted by independent, third-party auditors. Consulting services are also available to guide companies through the process, ensuring that certification is accessible and efficient.
Who Can Benefit from Forest Certification?
PEFC certification is open to a wide array of industries, ranging from primary forest product producers to derivative industries. Eligible sectors include:
- Primary Industries: Wood products like timber, pallets, and panels (e.g., veneer, plywood).
- Biomass: Wood pellets and charcoal.
- Pulp and Paper: Products such as writing paper, packaging materials, and stationeries.
- Textiles: Viscose rayon used in clothing.
- Furniture and Construction: Wood-based materials for furnishings and building projects.
- Non-Wood Derivatives: Rubber-based products like shoes, gloves, and tires.
The Benefits of Certification
Adopting certifications like PEFC brings multiple benefits:
- Commitment to Sustainability: Certification ensures adherence to sustainable forest management practices, including biodiversity preservation, fair wages, and respect for indigenous communities.
- Circular Economy Approach: PEFC prioritizes industrial forestry products, integrating sustainability throughout the lifecycle of forest-based goods.
- Fair Business Practices: Certified brands support fair trade and align with International Labour Organization (ILO) standards.
Addressing Challenges in Forest Certification
- Demand Creation: A "chicken-and-egg" problem persists, as companies are hesitant to invest in certification without clear consumer demand. Conscious consumer behavior is crucial to driving this shift. This is however, where our power as consumers, can push brands and develop demand for sustainable products, illustrating the power of a bottom-up demand push as mentioned above.
- Accessibility for Small Landowners: Certification can be cost-prohibitive for small and community forest owners. Recognizing this, PEFC has developed group certification to make the process more affordable and practical. Group certification has risen as a solution to address these concerns.
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Group Certification as A Pathway for Small Landowners
Group certification is a collaborative approach enabling small forest owners to pool resources and share the costs of certification. This model reduces individual financial burdens and allows owners to work together to meet PEFC standards. For instance:
- Only a sample of the group’s members undergoes audits, cutting costs significantly.
- Administrative tasks like management planning and monitoring are handled collectively.
This approach is vital, as small, family, and community-owned forests make up 25% of the world’s forests. Without accessible certification options, the global push for sustainability risks leaving these vital stakeholders behind.
The Road Ahead
The rising demand for sustainable practices highlights the importance of forest certification as a tool for balancing environmental responsibility with economic growth. However, the challenges of accessibility and demand creation must be addressed to ensure widespread adoption.
By embracing both top-down initiatives from global brands and bottom-up pressure from conscious consumers, businesses can secure a future where sustainability is not just a goal but a standard. Certifications like PEFC are crucial in this journey, creating a ripple effect throughout the supply chain and ensuring that sustainability reaches every corner of the marketplace.
