PEFC UK Annual Stakeholder Meeting5 July, 2016

Riikka JoukioSVP, Sustainability and Corporate Affairs

Metsä Group

Global Packaging and Collaboration:Why the Sector Should Connect to Support Sustainable Forest

Management

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What is the Forest Solutions Group?

The Forest Solutions Group is a global platform for strategic collaboration across the forest products value chain to:

Bring more of the world’s forests under sustainable management

Expand markets for responsible forest products

Ensure growth and vitality of forest resources today and for future generations

A third of global forest, pulp and paper sales, providing leadership in expanding sustainable forest-based solutions to meet societal needs

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A global value chain group hosted by the WBCSD

Forest Solutions Group members

Key partners

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Work streams cover both forest and forest products

Sustainable Forest Management

The Forest DialogueSustainable Value Chains

& ProcurementValue & Benefits of

Forest Products

Expand sustainable forest management

through forest certification & other

innovative means

Contribute to multi-stakeholder dialogue to build relations & drive

collaborative action

Promote and help implement responsible sourcing practices and

policies

Provide low-carbon and bio-based solutions in

products and operations

Key Performance Indicators (KPIs)

Forest Products

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Best practice for sustainable forest management

Key Highlights 2016-2017 Focus

• Certification Dialogue Series• Develop a water awareness brief to

communicate to a broad audience the sector’s positive impacts on water

• Pilot test WBCSD ’s Social Capital Protocol on Skills, Employment & Safety and develop a sector perspective on social impact measurement & valuation

• Infographic on the importance of forests and sustainable forest management

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Forest products for a better future

• The business is based on renewable woodraw material which is grown, procured and processed responsibly

• Forest products offer a solution for climatechange and resource scarcity. They replacefossil based products and store carbon

Image: Metsä Group

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Northern forests grow more than they are used

7% in Oceania

2%

in South America

Source: FAO

Losing growing stock

Zero change

Growing stock data not available

Gaining growing stock

65%

in Europe

8% in CIS

2% in Asia

1%

in Africa

35%

in North America

80%

in Finland

The share of forest certification varies globally

Currently only 10% of the world’s forests are certified

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Annual demand for industrial wood growing by +1.4%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2000 2005 2010 2014 2020 2025

PulpReconstituted panelsSawnwood/plywood

Source: Pöyry Consulting

Globalisation Technology

Sustainability Consumption

Billion m3

- 1/3 is used for

packaging

- Estimated annual

growth rate for board

packaging is 3-4% p.a.

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Fresh fibre and recycling loop in Europe

FRESH FIBRE MAKES RECYCLING

POSSIBLE.

WITHOUT FRESH FIBRE INFLOWS, A

SERIOUS SHORTAGE OF RECYCLED

FIBRE WOULD OCCUR IN SIX MONTHS.

EUROPE IS THE

GLOBAL CHAMPION

IN PAPER RECYCLING

WITH A RATE OF

72%Paperboard is the most

recycled packaging (81%)

100% RECOVERY

NOT POSSIBLE

because of incomplete

collection, unrecoverable

products, export,

process losses

RECOVERED

FIBRE FROM

COMMUNITIES

THE AMOUNT OF GRAPHIC PAPERS DECLINES

This impacts on volume, price and quality

ENERGY PRODUCTION

at the end of the life cycle

CIRCULATION

3,5 times on average

54%

46%

RENEWABLE

FRESH FIBRE FROM

SUSTAINABLY

MANAGED FORESTS

In Europe, forests

grow more than

they are used

Source: Metsä Group, CEPI

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10 Things you should know about sustainable sourcing

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Private procurement

Finance

Consumers

Legislation

Private

commitments

Public

procurement

Source: PEFC

Market drivers behind the growth of certification

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Leadership Statement on the value and future of forest certification

In 2013, the Forest Solutions Group published a commitment to:

• Work with stakeholders to spread sustainable forest management• Support and promote the expansion of forest certification• Set targets to increase the use of certification when sourcing

forest products and fiber• Grow markets for certified forest products

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WBCSD calls on all forestcertificationstakeholdersto action

• Promote certification through the valuechain: from forest owners to the end users

• Fully utilise the existing certificationprograms, operations, supply chain etc

• Support sustainable development regardingsmall-scale and community forestry, agroforestry, indigenous people etc

• Develop an inclusive forest products procurement policy

Images: Metsä Group

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Did you know?

European forests have grown by over 30% since 1950 and are increasing by 1.5 millionfootball pitches every year – an area fourtimes the size of London

For more information:

www.wbcsd.org │ info@wbcsd.org

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Membership Principles & Responsibilities

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Global consumer recognition and trust in certification labels

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49

49

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7

6

6

FSC

PEFC

5 - I strongly agree 4 3 2 1 - I strongly disagree

(ASF / CERFLOR / CFCC / SFI)

is a label I can trust

is a label I can trust

81%

4%15%

Yes

No

Don't know

Mean

Value

3,4

3,3

Would you prefer companies

to label products?

Source: PEFC/GfK Global Consumer Survey (Nov 2014)