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Antitrust: Commission fines producers of washing

powder € 315.2 million in cartel settlement case

The European Commission today fined Procter & Gamble and Unilever a

total of € 315.2 million for operating a cartel together with Henkel in the

market for household laundry powder detergents in eight European Union

countries. (European Commission Press Release, April 13, 2011)

Vancouver Sun, May 2, 2011Rona wanders into a dark forest Canadian home improvement giant Rona has pulled a green-tinged commercial

. . . after running into complaints from the forest sector that it was unfairly

maligning B.C. Douglas fir. It's not that the ad's message was wrong . . . it was

what it singled out: Old-growth Douglas fir and the solution it recommended:

FSC-certified wood.

Independent.Co.UK, May 1, 2011

'Greenwashing' companies forced to drop marketing claims

UK corporations accused of "greenwashing" have been stopped in their tracks

by a campaign led by the paper and communications industries. Companies'

marketing messages have been promoting the lower cost of electronic billing

and services as a way of helping the environment . . .

Are Markets for “Green” Products Sustainable? A Roadmap for Forest ProductsCassie PhillipsVice President, Sustainable Forests & ProductsJune 20, 2011

Something New Under the Sun?The Strategic Role of Managed Forests and Forest Products in Global Sustainable Development

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Antitrust: Commission fines producers of washing

powder € 315.2 million in cartel settlement case

The European Commission today fined Procter & Gamble and Unilever a

total of € 315.2 million for operating a cartel together with Henkel in the

market for household laundry powder detergents in eight European Union

countries. (European Commission Press Release, April 13, 2011)

Vancouver Sun, May 2, 2011Rona wanders into a dark forest Canadian home improvement giant Rona has pulled a green-tinged commercial

. . . after running into complaints from the forest sector that it was unfairly

maligning B.C. Douglas fir. It's not that the ad's message was wrong . . . it was

what it singled out: Old-growth Douglas fir and the solution it recommended:

FSC-certified wood.

Independent.Co.UK, May 1, 2011

'Greenwashing' companies forced to drop marketing claims

UK corporations accused of "greenwashing" have been stopped in their tracks

by a campaign led by the paper and communications industries. Companies'

marketing messages have been promoting the lower cost of electronic billing

and services as a way of helping the environment . . .

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ASTM D7612-10 – Wood Labels & ClaimsCategories:– Non-controversial / Legal sources– Responsible sources– Certified sourcesLater, maybe: Protective / Eco-forestry sources

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Roadmap for Due DiligenceSubstantive issues– Governance-related– Public resources / externalities– Private resources /

market – drivenClaimsWood tracingDue process

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Claims– Must be true– Can’t be deceptive

• E.g., by exaggerating risks– Must be substantiated

when made• Including comparisons

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TracingMust be able to trace suppliesto 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

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Due DiligenceStart 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 necessaryIf issues remain, look at the supply chain– First species– Then individual suppliers if necessary

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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

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Responsible sources– Sourced from areas with regulatory

or quasi-regulatory programsaddressing 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

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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”

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Protective sources?Needed to address the desirefor 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

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