How Timber Suppliers Keep Forest Certifiers Honest

In the absence of strong legal systems and enforcement in some parts of the world, how can consumers know the certified timber they are receiving is legitimate? A commentary from the managing director of a timber company supplies one answer.

Michael Hermens of APP Timber, a company specializing in Asian timber, wrote about an experience he had recently with PEFC and FSC. Hermens noticed an advertisement by a Malaysian company using incorrect logos for the two certification systems. Wanting to protect the value of his own certified product and of the certification systems, he contacted each of them. Finding the incorrect logos, Hermens writes he:

…sent a copy to both PEFC and the Rainforest Alliance (whom is our FSC auditor). The reason I do this is to alert both organisations on companies claiming to be certified but often are not. This happens a lot in China where the illegal use of trademarks seems to be common practice. It is important that companies like us who play by the rules and pay large sums to maintain our certification are protected from those “cheaters”.

Having spent money and time to become certified, his company has an incentive to protect the value of those certification systems.

What comes next is more interesting. PEFC quickly responded that the Malaysian company was, in fact, certified but was using the wrong logo and had been contacted.

The response from FSC, however, flummoxed Hermens. Instead of standing up for the validity of their logo, FSC aimed its fire at PEFC, telling Hermens that companies are “not allowed to place FSC logo in the same position with PEFC logo. PEFC is FSC’s competitor in forest certification.” Hermens feels FSC should not see PEFC as a competitor. I disagree.

Competition among the systems can be quite healthy. Certification systems that compete are encouraged to improve the value of their products, the high standards of their auditing and the value of their brand. The story Hermens tells is a case in point. If timber suppliers begin to feel that FSC’s logo can be easily forged and FSC’s auditors won’t take action to protect it, suppliers will question the value of the system. Why follow rigorous rules when others can simply cheat without consequence?

FSC’s perception that PEFC is a competitor will actually work to improve the value of the brand. It prevents FSC from ignoring threats to its brand and credibility. It forces them to be responsive to their clients, understanding that timber suppliers could go elsewhere. As we’ve written before, the creation of SVLK in Indonesia is a positive step in this process of increasing competitive pressures toward high business and environmental standards.

Hermens frustration is understandable in one sense. He would like to receive multiple certifications to cover his bases. If FSC prevents that, he is put in a difficult position.

Overall, however, competition among the systems is a good thing. In this case it allowed him to pressure the systems to protect their brand, and I am willing to bet that FSC is more likely to be responsive in the future.

About these ads

One thought on “How Timber Suppliers Keep Forest Certifiers Honest

  1. Neither FSC nor PEFC should restrict competition by preventing those using their certification services/products from using/selling the competing standard/CoC/products, as long as the rules of the standard have been followed. The consumer and complex/processed product end of the supply chain, and the reality of what products are available under each scheme, combined with market pressures, requires that businesses are free to use, sell and advertise both products. Flexibility is essential. If either FSC or PEFC act in a way that unnecessarily restricts competition, and as long as reasonable IP rights have been protected, governments should properly enforce competition laws. Consumers and businesses benefit from such competition and market/advertising freedom, the only people who benefit from unduly restricting it are the narrow interests of one or the other certification body. Reasonable IP rights are OK, but not to the point that a business is prevented from selling and advertising products under both schemes.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s