PEFC UKANNUAL REPORT

CONTENTS01 CHAIRMAN’S REPORT

Chairman Ross Bradshaw reflects on PEFC UK’s progress over the past year

02 MARKET OUTREACHSnapshot of PEFC’s market outreach activities to promote awareness of and drive demand for certified products

04 PEFC IN THE MARKETPLACEPEFC-certified products from a broad range of sectors are finding a place on the UK marketplace

06 PEFC INTERNATIONAL’S ACTIVITIESHighlights of PEFC International’s activities in 2016

07 DEMAND FOR CERTIFICATIONKey forest and Chain of Custody certification facts and figures

08 GOVERNANCEPEFC UK Board of Directors - providing industry expertise from a cross-section of stakeholder sectors

10 ACCOUNTSPEFC UK financial information for 2015-16

13 EMPOWERING SMALLHOLDERS AND SUSTAINING LIVELIHOODS

PEFC’s work in Asia: making certification more accessible

PEFC UK LIMITEDProgramme for the Endorsement of Forest Certification

Sheffield Technology ParksCooper BuildingsArundel StreetSheffield S1 2NS

t +44 (0) 114 307 2334e info@pefc.co.uk

w www.pefc.co.uk

Registered in Scotland Company Number 209443

BOARD OF DIRECTORSRoss Bradshaw (Chairman)Steve CookJulia Griffin Simon HartDavid LeslieAnders OlssonElisabeth PiveteauJohn SandersonRob Shaw

See pages 8-9 for details

01ROSS BRADSHAW, CHAIRMAN, PEFC UK

One of the highlights of 2016 was

undoubtedly the annual PEFC Forest

Certification Week which took place in

Bali, Indonesia last November. This was

the second time that the PEFC family had

travelled to Asia for PEFC Week, the first

being for the General Assembly which was

held in Malaysia in 2013. It was heartening

to see the progress PEFC has made in

recent years in developing and supporting

certification in Asia.

Across the region, countries are now

understanding far more about sustainable

forest management and what it entails, with

a view to having their own national forest

management scheme endorsed by PEFC.

PEFC has already endorsed schemes

in Indonesia, Malaysia, China and Japan

and we are delighted to see that India is

currently developing its national forest

management standard.

PEFC’s progress in Asia demonstrates

that there is a real appetite for the mutual

recognition certification model that PEFC

offers around the globe. There are now

46 national members of PEFC Council

with 38 endorsed national certification

systems gathered together under the

PEFC umbrella. These are collaboratively

promoting sustainable forest management

across the globe. As a result, more than

300 million hectares of forest are now

managed in compliance with PEFC’s

internationally accepted Sustainability

Benchmarks – that’s roughly an area the

size of Egypt, South Africa and Turkey

combined. As a direct result of this growth

in certified forest area, almost 19,000

Chain of Custody certified companies are

currently trading in PEFC-certified forest

products around the world.

Moving closer to home. Special thanks

are due to the many individuals and

organisations that help us to achieve as

much as we do. 2016 saw the departure of

a longstanding PEFC stalwart from the UK

Board when we bade farewell to Pat Burke.

For the past five years, the organisation

has benefitted greatly from Pat’s long

experience in the timber trade and I would

like to take this opportunity to thank him

for sharing his knowledge and providing

us with invaluable advice – everyone at

PEFC UK wishes him well for the future.

Although a tough act to follow, I believe that

we have found an excellent replacement

for Pat from the timber sector in Elisabeth

Piveteau. Elisabeth was appointed to the

PEFC UK Board of Directors in January

2017. As UK & Ireland Export Manager at

PiveteauBois – one of the leading French

softwood sawmillers and manufacturers of

timber products – Elisabeth brings a wealth

of experience and a fresh voice to PEFC

UK and we are delighted that she has

agreed to join us.

Thanks are also due to the the Finnish

Forest Foundation for their ongoing

support without which we would be unable

to carry out many of our marketing and

communications activities. I would also

like to record my appreciation to my fellow

Board members for the time they have

generously devoted to our affairs over the

past year. Finally, I would like to welcome

Julia Cobham to the UK team. Julia joined

PEFC UK earlier this year. She, together

with Alun Watkins, Tracey Reeve and Hilary

Khawam, are working hard to ensure the

continuing development of the organisation.

CHAIRMAN’S REPORTWelcome to PEFC UK’s 12th Annual Report. It has been another busy year for PEFC and the following report seeks to provide a snapshot of PEFC’s progress and activities, both in the UK and around the world.

General Assembly participants in colourful Balinese dress.

02MARKET OUTREACHRecognition of the PEFC brand is growing around the world. It is increasingly providing added value to hundreds of UK companies who have invested in certification. Raising awareness of the assurances PEFC certification supplies, remains the PEFC UK team’s number one priority. The following provides a quick summary of our market outreach activities over the past twelve months.

Mellor Primary School WinsPEFC UK-sponsored AwardThe Winners of the Structural Timber Awards 2016 were revealed at a gala dinner held during Timber Expo and UK Construction Week last October. These Awards recognise outstanding projects which promote excellence in structural timber across the UK. Designed by Sarah Wigglesworth Architects, Mellor Primary School triumphed in the Best Education Project category, which was sponsored by PEFC UK.

It is encouraging to see the ways in which timber is being used throughout the construction sector to produce interesting and environmentally sound buildings. PEFC-certified timber is increasingly specified, reflected across Europe with the levels of engineered wood being used on landmark

developments, larger than ever before. It was also encouraging to note that there were many examples of PEFC-certified timber used across

all 15 awards categories with cross laminated timber (CLT) and glulam increasingly adopted as a

sustainable alternative to steel and concrete.

Royal Forestry Society AwardsPEFC UK sponsored a Royal Forestry Society Education & Learning Award. This Award encourages and rewards schools, colleges, universities that increase awareness, understanding and skills related to the environmental, social and economic potential of trees, woodlands and forests. Founded in 1882, the Royal Forestry Society (RFS) is the UK’s largest forestry education charity and now has almost 4,000 members.

The 2016 Gold Award went to the Bill Hogarth Memorial Apprenticeship Trust (BHMAT) based in Carnforth, Lancashire. The Trust was set up in memory of Bill Hogarth who worked as a coppice merchant in Cumbria. The apprenticeship in coppice skills aims to increase the number of trained coppice workers and promote the management of broad leaved woodland using environmentally sustainable methods to encourage biodiversity.

Education and Learning Award Gold winners Kath Morgan and Natasha Twigg, BHMAT with Alun Watkins (left) and Ted Wilson of RFS (right).

Left: Ben Gunneberg of PEFC International (left) presents the ST Award to Steven Harding-Lister (middle), Director of Goodfellow Communications who collected it on behalf of Sarah Wigglesworth Architects. Compered by Mark Durden-Smith (right).

Main: Mellor Primary School.

Timber

Forestry

03

Packaging Innovations 2016In September, PEFC UK joined forces with the Sustainable Forestry Initiative (SFI) and PEFC-certified company, AB Packaging Group, to exhibit at Packaging Innovations. This was the third year in succession that the organisations came together for the two day show which was held at London’s Olympia exhibition halls.

The event provided valuable opportunities for the PEFC team to engage with leading brand owners and retailers to promote the PEFC label as an assurance of responsibly-sourced packaging. It was great to see an increasing number of our fellow exhibitors proudly displaying their PEFC certification credentials as an integral part of their show graphics.

La Redoute Opts for PEFCIn October, the leading French mail order company, La Redoute announced that it had achieved PEFC Chain of Custody certification. As a result all its catalogues now carry the PEFC label. The company, which has more than 10 million customers operates in 26 countries including the UK.

La Redoute joins many leading companies in the UK who use the PEFC label on their consumer facing marketing materials to demonstrate responsible paper sourcing. They can rest assured, knowing that the fibre will have been sourced from forests certified to PEFC’s International Sustainability Benchmarks and tracked through the supply chain via Chain of Custody certification. The use of the PEFC label on certified products enables companies to demonstrate their corporate commitment to responsible forest management and a healthy future for the world’s forests.

Several new titles have been added to the PEFC library over the past twelve months. They are all available free of charge.These publications can be downloaded from the PEFC UK website: www.pefc.co.uk/publications Printed copies can be obtained by emailing info@pefc.co.uk

PEFC – Caring for Our ForestsExplaining what forest management involves and why it matters to those not directly involved in certification can prove challenging to say the least. PEFC has therefore developed a poster which aims to demystify the process. This will enable those involved in managing their company’s Chain of Custody process to be able to supply an easy to understand visual graphic explaining the link between certified products and the source of the raw materials used to make them plus why our forests are so important.

Copies of the poster are available free of charge. To request your copy, email: info@pefc.co.uk

Get Involved with Group Certification

There are several existing Group Certification Schemes in the UK that you may be able to join:

• LIGNA, • British Woodworking Federation• Oxford Timber Audits

Please visit http://bit.ly/1C3R8w4 for further information.

More information about Chain of Custody can be found on the PEFC UK website at http://bit.ly/2bYfc0I

We also invite you to contact the PEFC UK team for further advice. You can reach us at info@pefc.co.uk or telephone 0114 307 2334.

Implementing PEFC Group Chain of Custody Certification

Companies come together to form a Chain of Custody certification group and appoint a Group Manager. The Group Manager develops and administers the certification procedures for the group and undertakes annual internal audits of the members. This enables each member to be certified together under this formally identifiable group.

The fundamental basis of Group Certification is that all members of the Group must formally commit to complying with all the requirements of PEFC Chain of Custody and demonstrate this during the internal audit. Once this is achieved, they are eligible to supply PEFC-certified material as a part of the unbroken supply chain and use the PEFC label.

The exact steps necessary to implement Chain of Custody, as well as the costs involved, depend on multiple factors (such as employee size, complexity of production and turnover). Group Managers co-ordinate the information produced by Scheme Members and is the certificate holder. A Group Manager can be a specific Group Member, an experienced legal entity such as a consultant or a trade association.

PEFC GROUP CERTIFICATION

Cost-Effective and Inclusive Chain of Custody for Smaller Companies

PEFC UK LimitedSheffield Technology Parks, Cooper Buildings, Arundel Street, Sheffield S1 2NSt +44 (0)114 307 2334e info@pefc.co.ukw www.pefc.co.uk

Printed on PEFC Certified paper by Northend Creative Print Solutions. Certification no. BMT-PEFC-0612Image credits: British Woodworking Federation, FreeImages.com

PEFC promotes Sustainable Forest Management and helps protect the world’s forests

PEFC (Programme for Endorsement of Forest Certification) is an international non-profit, non-governmental organisation dedicated to promoting Sustainable Forest Management through independent third-party certification.

As a federal organisation, PEFC works by endorsing national forest certification systems and has recognised systems in 43 countries. Together these account for over 300 million hectares of certified forests, making PEFC the world’s largest forest and wood product certification system. This is equivalent to two-thirds of the globe’s certified forest area.

The PEFC label provides assurances that the products on which it appears come from responsibly-managed forests. With more than 18,000 companies involved in PEFC Chain of Custody certification, PEFC’s distinctive “two trees” label now appears on thousands of PEFC-certified products around the world.

PEFC UK LimitedSheffield Technology ParksCooper Buildings, Arundel StreetSheffield S1 2NSt 0114 307 2334e info@pefc.co.ukw www.pefc.co.uk

PEFC’s distinctive ‘two trees’logo transcends language barriers making it a truly global brand.

PEFC promotes Sustainable Forest Management and helps protect the world’s forests.

PEFC (Programme for Endorsement of Forest Certification) is an international non-profit, non-governmental organisation dedicated to promoting Sustainable Forest Management through independent third-party certification.

PEFC is a federal organisation that works by endorsing national forest certification systems and has recognised certification systems in more than 43 countries. These account for over 300 million hectares of certified forests, making PEFC the world’s largest forest and wood product certification system.

The PEFC label provides assurances that the wood, paper and packaging products on which it appears, come from responsibly managed forests.

PEFCIN A NUTSHELL

The world’s fastest growing forest certification scheme

Printed on PEFC Certified paper

PEFC UK LimitedSheffield Technology ParksCooper Buildings,Arundel Street,Sheffield S1 2NS

t 0114 307 2334e info@pefc.co.ukw www.pefc.co.uk

PEFC’s distinctive “two trees logo”

transcends language barriers, making it a

truly global brand

PEFC has a dedicated UK team to provide training,

information and support on the use of the PEFC label.

They are available for technical questions and advice on

how to communicate PEFC certification beyond the use

of the label.

The PEFC label provides assurances that the products on

which it appears come from responsibly-managed forests.

With more than 18,000 companies involved in PEFC Chain

of Custody certification, the PEFC label now appears on

thousands of certified products around the world.

Photo credits: AB Packaging, Benders Paper Cups, Colpac, Wavebreakmedia/Shutterstock.

© 2017 PEFC UK Limited

WHY PEFC?

With 80 years of unrivalled expertise in the creation

of innovative sandwich and food to go packaging

solutions, Colpac’s wide range of packaging features

strong green credentials.

“Consumer perception is very important to the

companies we supply,” says Clare Lloyd, Key Account

Manager at Colpac. “So it is paramount that we are

able to demonstrate

a commitment to

sustainable sourcing.

The PEFC label can

serve as an excellent

stamp of approval,

giving customers

confidence in

a product’s

environmental

credentials”.

COLPAC

CERTIFIED PACKAGING

FOR THE FOOD TO GO SECTOR

IN NEARLY

40 COUNTRIES

IN OVER 265 MILLION HECTARES OF FOREST

THROUGH

1 MILLION

FOREST OWNERS

PEFC, Caring for Our Forests

Sustainable forest management is good for our climate

www.pefc.co.uk

80%of all animal and plant species can be found in forest habitats. They are directly dependent onforests for their survival.

are dependent on forests for their livelihoods.

YOU MAKE A DIFFERENCEThere are thousands of products made with raw materials from the forest.

Choose PEFC: Your Assurance of Responsible Sourcing

In a PEFC-certified forest, every tree harvested is replaced with another

one to ensure that forests can continue

to supply raw materials to a wide range

of sectors.

Forests help to filter water and are therefore important in the supply of drinking water.

DID YOU KNOW …

The destruction and degradation of Forests reduces the diversity of plant and animal species in the world

PEFC-CERTIFIED FORESTOWNERS PROTECT

PLANTS AND ANIMALS

PEFC certification protects people

PEFC ensures safe working conditions for forest workers

1,6 billion people

PEFC certification protects plants and animals

PEFC's distinctive 'green trees' logo provides assurances that wood, paper and packaging products originate from responsibly-managed forests where People, Planet and Profit are all taken into account.

C H O O S E P E F C C H O O S E P E F C C H O O S E P E F C CH O O S E P E F C

The Label

For sustainable wood, paper and packaging

Why is sustainable forest management good for climate care?

PEFC’s ‘act locally, think globally’ approach contributes positively to the maintenance and enhancement of global forest biodiversity.

IN NEARLY

40 COUNTRIES

IN OVER 265 MILLION HECTARES OF FOREST

THROUGH

1 MILLION

FOREST OWNERS

PEFC, Caring for Our Forests

Sustainable forest management is good for our climate

www.pefc.co.uk

80%of all animal and plant species can be found in forest habitats. They are directly dependent onforests for their survival.

are dependent on forests for their livelihoods.

YOU MAKE A DIFFERENCEThere are thousands of products made with raw materials from the forest.

Choose PEFC: Your Assurance of Responsible Sourcing

In a PEFC-certified forest, every tree harvested is replaced with another

one to ensure that forests can continue

to supply raw materials to a wide range

of sectors.

Forests help to filter water and are therefore important in the supply of drinking water.

DID YOU KNOW …

The destruction and degradation of Forests reduces the diversity of plant and animal species in the world

PEFC-CERTIFIED FORESTOWNERS PROTECT

PLANTS AND ANIMALS

PEFC certification protects people

PEFC ensures safe working conditions for forest workers

1,6 billion people

PEFC certification protects plants and animals

PEFC's distinctive 'green trees' logo provides assurances that wood, paper and packaging products originate from responsibly-managed forests where People, Planet and Profit are all taken into account.

C H O O S E P E F C C H O O S E P E F C C H O O S E P E F C CH O O S E P E F C

The Label

For sustainable wood, paper and packaging

Why is sustainable forest management good for climate care?

PEFC’s ‘act locally, think globally’ approach contributes positively to the maintenance and enhancement of global forest biodiversity.

Printed on PEFC-certified paper Printed on PEFC-certified paper

Print, Paper and Packaging

New Publications from PEFC

04

William Perkin High SchoolWilliam Perkin High

School in Greenford,

West London, is a

four-storey complex

containing 3,860m3

of timber. The new

£20 million school

uses a combination

of PEFC-certified

cross laminated

timber (CLT) and

glulam to form the

superstructure

and architectural

features and was

originally designed

as a concrete frame.

Changing from a

concrete frame to a

timber construction

has reduced the embodied carbon of the superstructure by an

estimated 1,500 tonnes of CO2. The building also stores approximately

3,000 tonnes of CO2, sequestered within the timber. It will take

approximately five years of operation before the school carbon

emissions equal that stored within the structure. Hidden steel elements

are then used where required to achieve the structural requirements.

The majority of the CLT structure was assembled in only 19 weeks.

William Perkin High School embraced the timber approach to the

building and even commissioned a CLT reception desk. The School

has achieved an airtightness rating of 2.37, an extremely good result.

This can be credited to the design detailing, high performance of

the CLT and site workmanship. The building has also achieved a

BREEAM score of ‘Very Good’.

MAIN CONTRACTOR: Kier Construction

ARCHITECT: William Perkin Church of England High School/

Twyford Academies Trust

ARCHITECT: Fielden Clegg Bradley

STRUCTURAL ENGINEER: Arup Associates

STRUCTURAL FRAME PROVIDER: KLH UK

Pepe Garden FurniturePepe Garden Furniture

was one of the first

companies in the UK to be

awarded PEFC Chain of

Custody certification. The

company produces furniture

using PEFC-certified,

Scandinavian Redwood

to form solidly made and

ergonomically shaped

pieces for the UK market.

The company prides

itself on producing unusual new designs. Many of their products

are used in the NHS and care industry with a focus on autism –

as the products’ movement has a calming effect on users. The

furniture is designed to be left outside all year with minimal ongoing

maintenance.

Gabriel AshGabriel Ash produce

high-specification, PEFC-

certified greenhouses that

are a blend of wood and

toughened glass. They are

the only timber greenhouse

company to have their

products endorsed by the

Royal Horticultural Society

(RHS). In order to exhibit at

its annual flower shows, the

RHS requires that timber products used for sale or on display must

be sustainably-sourced.

These greenhouses only use the finest quality PEFC-certified

Western Red Cedar, one of the world’s most durable woods, in their

manufacture. It is resistant to moisture and decay making it a very

suitable material for outdoor use. The wood’s natural oils also help

resist decay and infestation. Additionally, as a very straight grained

species, the risk of distortion is reduced.

PEFC IN THE MARKET PLACEThe amount of PEFC-certified products used across a wide range of sectors from construction timber such as Glulam and CLT (cross laminated timber) to furniture, paper and packaging continues to grow. The following are a selection of projects and products which are using certified materials.

Construction Greener GardensUse Certified Timber

Image © Gabriel Ash

Image © Pepe Garden Furniture

05

PEFC Certified Packaging for the Food to Go Sector

ColpacWith 80 years of unrivalled

expertise in the creation of

innovative sandwich and

food to go packaging

solutions, Colpac’s wide

range of packaging

features strong green

credentials.

Consumer

perception

is very

important

to the

companies

they supply, so

Colpac considers it to

be of paramount importance

that they are able to demonstrate evidence of sustainable sourcing.

Forest certification labels such as PEFC’s can serve as a stamp of

approval, giving customers confidence in a product’s environmental

credentials.

The PEFC label provides assurances that the products on which it

appears come from well-managed forests. With more than 18,000

companies involved in PEFC Chain of Custody certification, the

PEFC label now appears on thousands of certified products around

the world.

AB Group PackagingAB Group Packaging is a high-volume, manufacturer of quality,

renewable PEFC certified paper bags and carrier bags for the

food to go sector. The company operates in the UK, across Europe

and the US. AB uses the PEFC certification labels on its paper

bags and food wraps to demonstrate a corporate commitment to

supplying customers with responsibly-sourced products.

Since June 2016, customers in over 70 London postcodes have

been able to access Amazon’s online grocery service – Amazon

Fresh. Orders are delivered in distinctive brown paper bags which

are produced by AB Group Packaging, using PEFC certified paper.

Amazon customers can therefore rest assured that their groceries

will be delivered in a responsibly-sourced paper alternative to the

traditional plastic carrier bag.

Recognising the importance of meeting customer expectations, more and more manufacturers are now producing packaging certified as sustainable through assurance programmes such as PEFC’s.

Consumers expect packaging to be responsibly sourced and easily recycled with a minimal impact on the environment and ultimately, the world’s forests.

06

From Hungary joining in January, to Ghana and South

Korea in the summer, to Macedonia, Romania

and Thailand at our General Assembly in

November, we have never had a year quite

like it. This means we now count 46

countries as our national members

with many more waiting to join.

Our new national members have

joined a diverse and vibrant

network of organisations.

In 2016 we continued to

support our members in their

important work across the globe.

We provided a wide range of

services, including communication

and marketing guidance, skills

development and technical support.

We also facilitated a wide range of co-

operation and knowledge sharing that enabled

people and organisations new to our network to

benefit from the collective expertise of the PEFC alliance.

One of the leading developments of 2016 was the start of the

revision process of our international standards. These standards –

known as PEFC’s Sustainability Benchmarks – are regularly revised

to ensure they continue to incorporate the latest industry knowledge,

best practice and are able to meet evolving stakeholder expectations.

The majority of our standards are now under revision, including our

Sustainable Forest Management and Chain of Custody standards.

This revision process is due to be completed later in 2017.

We also devoted a considerable amount of resources to grass roots

outreach. Enabling people to manage their

forest sustainably continues to be at the heart

of all our international projects. Supporting the

development of national forest certification

systems, innovating new ways to get more trees

certified and working with smallholders, are all

part of our fundamental aim of expanding the

global certified forest area.

We have partnered with numerous organisations

and donors around the world to help us

in building this critical aspect of our work.

Introduced in 2011, the PEFC Collaboration

Fund has proved a successful vehicle in helping

to facilitate these successful partnerships.

This year we are helping to develop and implement

national sustainable forest management systems

in Africa and Asia and supporting small-

and family forest owners gain access

to certification through innovative

new tools. At the other end of

the spectrum, we are working to

encourage the fashion world to

increase their use of fibre from

responsibly managed forests in

their clothing ranges.

In 2016 we also moved our

marketing strategy forward:

improving the co-ordination of

marketing activities within the

PEFC alliance and expanding our

outreach to support brand owners and

manufacturers everywhere. The PEFC

network has grown considerably in recent

years to include dozens of national and international

members and literally hundreds of thousands of PEFC-

certified companies. This is a fantastic resource, which is why our

marketing work focuses on empowering our network even more, so

they can promote PEFC in the expanding international marketplace.

I am confident that the global PEFC family will continue to work

together to promote sustainable forest management, thereby

improving the lives of millions of people who depend on forest

resources for their livelihoods all over the world. In closing, I would

like to thank you all for your personal and corporate contributions to

our common cause in sustainable thinking and keeping the globe’s

forests healthy.

PEFC INTERNATIONALBEN GUNNEBERG, SECRETARY GENERAL, PEFC COUNCIL

2016 was an important milestone for the PEFC alliance as more countries joined the family than in any year since the early days of our organisation. Image © PEFC International and Jorge Romero (JRPD)

New Chairman for PEFC InternationalFormer PEFC UK Chairman, Peter Latham was elected Chairman of PEFC International at the organisation’s General Assembly which was held in Bali in November.

Peter, awarded an OBE in the 2012 New Years Honours List for services to the UK wood industry, is Chairman of one of Britain’s oldest timber companies, James Latham PLC. He is also a former Chairman of the Forests Forever Committee of the Timber Trade Federation and a member of the Council of the Commonwealth Forestry Association.

07

GLOBAL GROWTH IN PEFC-CERTIFIED FOREST AREA GLOBAL GROWTH IN CHAIN OF CUSTODY CERTIFICATES

GROWTH OF FORESTRY AND COC

YEAR YEAR

Certi

fied

fore

st ar

ea (m

illion

s of h

ecta

res)

Num

ber o

f Cha

in of

Cus

tody

cer

tifica

tes

Central & South America:2% 5,254,095 hectares

North America: 164,366,225 hectares 54% Europe: 93,629,821 hectares 31%

Asia:4% 11,740,469 hectares

Oceana:9% 26,578,998 hectares

PEFC members with endorsed systems PEFC members progressing towards endorsement Countries actively developing systems

GLOBAL GROWTH OF PEFC MEMBERSHIP

CONTINENTAL CERTIFIED FOREST AREAA little over 11% of the global forest

area is currently certified, the majority

of it to PEFC endorsed sustainable

forest management systems Total:301,569,608

million hectares

0

50

100

150

200

250

300

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

0.0

32.441.1 46.1 50.9 55.3

187.7 193.8 194.4

217.7 223.5 229.6245.1

237.4253.1

263.2

2015 2016

272.1

301.6

0

2,000

4,000

6,000

8,000

10,000

12,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

59463

11001905

23622901

3545

4420

6166

7688

8797

95299996

10,591 10,744 10,976

08

STEVE COOK

GOVERNANCE

ROSS BRADSHAWRoss Bradshaw has worked in the paper

manufacturing industry for over twenty five

years. He began his career in manufacturing

by training as a paper maker in Aberdeen.

Working in heavy industry while living in a

rural setting, led to an early interest in the

effects of the paper making industry on the

environment and the positive role it plays. He

has worked with a number of industry groups

including the Paper and Board Association

and Stationer’s Company, the City of London

Livery Company for the Communications and

Content industries, where he is a Liveryman.

Currently, Ross runs his own paper agency

business representing a number of speciality

paper mills from the USA and Europe,

offering bespoke publishing and packaging

papers. He is one of PEFC UK’s longest

serving directors, joining the Board in 2007.

JULIA GRIFFINSteve Cook is a Principal Sustainable

Development Manager for Willmott

Dixon’s in-house sustainability consultancy

Re-Thinking. His role involves providing

technical and practical support on

materials, carbon, waste and sustainable

procurement to all divisions within

the Willmott Dixon Group. Steve, who

has twenty four years’ experience in

the construction industry, is also a

Scheme Council member of the Eco-

Reinforcement, responsible sourcing

scheme and co-chair of Grown in Britain.

Julia Griffin is a member of B&Q’s Social

Responsibility team and her area of

expertise is timber and peat. B&Q is a

UK home improvement retailer, owned

by Kingfisher PLC. Julia works with the

Commercial, Quality Assurance teams

and suppliers to monitor timber and forest

products sourced by the business to ensure

they meet the requirements of B&Q’s Timber

& Paper Policy & Buying Standard. She is

also responsible for reporting performance

to the B&Q Board, Kingfisher Board

Network and Exova BM TRADA for Chain of

Custody. Julia has been the timber expert in

B&Q’s Social Responsibility team for eleven

years and has first-hand experience of the

practicalities and challenges associated with

implementing and adhering to a responsible

timber sourcing policy.

PEFC UK is a membership association which represents a broad range of stakeholder interests.Every PEFC-certified company in the UK automatically becomes a member of the

organisation with full voting rights at the Annual General Meeting. Additionally, PEFC also

counts organisations which share PEFC’s commitment to sustainable forest management

and responsible sourcing amongst its members.

These include Timber Trades Federation, the Paper and Board Association, Confederation

of Paper Industries, Wood Panel Industries Federation and the Structural Timber

Association. The forestry sector is represented by CONFOR, the Commonwealth Forestry

and the United Kingdom Woodland Assurances Standard (UKWAS) and the Country Land

& Business Association.

PEFC UK recognises the importance of having stakeholders represented on its Governing Board. We are fortunate enough to be able to call upon the expertise of senior figures from a number of industry sectors including forestry and those trading in forest products.

PEFC UK Annual General Meeting 2016

09

JOHN SANDERSON

DAVID LESLIE

ELISABETH PIVETEAU

SIMON HART

Elisabeth Piveteau is UK & Ireland

Export Manager at PiveteauBois, one of

France’s leading softwood sawmillers

and manufacturers of timber solutions

for the construction, landscaping and

energy sectors. Elisabeth comes to the

family company with 20 years’ experience

in sales and business development in

the intellectual property and scientific

information markets, having worked at

industry leaders Thomson Reuters, Lexis

Nexis and Macmillan. Her mission is to

develop and grow a customer base for

its value-added products in the UK and

Ireland as well as raise the awareness

of France as Europe’s joint 4th biggest

softwood producer with Austria.

Simon Hart, FICFor, FRICS, joined Egger

Forestry in 2013 to head up a new forest

management division offering the full range

of forestry services to private owners in the

north of England and Scotland. Simon brings

over 30 years’ experience in the forestry world,

mainly in commercial conifers. His knowledge

includes acquisitions, economic appraisals,

management and valuations. He also runs

Egger’s forest certification scheme and sits

on the UK Woodland Assurance Standard

Steering Group. Prior to joining Egger, Simon

worked for UPM Tilhill, mainly in forestry

investment, but since 2000 he also audited

woodlands to the UKWAS standard. He is

a Fellow of both the Institute of Chartered

Foresters and RICS and is a Registered Valuer.

ROB SHAW

ANDERS OLSSON

John Sanderson is Director, Head of

Environment, UK & Ireland for UPM-

Kymmene, a global forest products group

with core businesses in printing papers,

speciality papers, label materials and wood

products. John has worked exclusively for

UPM since graduating from the University

of Wales over twenty years ago with a

degree in wood science and forestry.

Increasing environmental focus and

concern from UPM’s customers has led to

an unprecedented increase in demand for

environmental education, commitment and

performance from suppliers. John’s current

role provides environmental support and

steering to UPM’s UK activities, including

paper production, paper sales, forestry and

waste paper procurement.

David Leslie is a Director of James

Jones and Sons Ltd, Scotland’s largest

independent sawmiller and one of the

leading suppliers of British timber in the

UK. He is responsible for the Group’s

roundwood procurement, co-products

and logistics. In addition to his PEFC

role, David is a member of the Grampian

Forestry Forum, a board member of SIRT

(The Strategic Integrated Research in

Timber), a member of EGTTS (Expert

Group on Timber Trade Statistics),

the Institute of Chartered Foresters

and the steering group of the Forest

Industry Safety Accord (FISA). David

was appointed to the PEFC UK Board in

January 2012.

Rob Shaw, FICFor, CMIOSH, graduated

from Aberdeen University in 1988 and

joined Scottish Woodlands Ltd. In 1998

he helped achieve FSC Resource and

Group Scheme Management status

for the Company, a first within the UK.

Between 1999 and 2002 he carried out

international Certification Consultancy

work in Latvia, and Slovakia. He is

currently working in the Forestry Technical

Team at Soil Association, helping to

develop their systems and maintain Soil

Association as a leading Certification

Body for FSC and PEFC schemes

worldwide.

Anders Olsson has more than 20

year’s industry experience in the global

consumer packaging sector. He is

currently Commercial Director for the

UK and Ireland and Strategic Account

Lead with WestRock, the corrugated

and consumer packaging specialist

which was formed when MeadWestvaco

merged with RockTenn in 2015. Prior

to the formation of WestRock, Anders

was Commercial Director for the UK

and Ireland with MeadWestvaco for just

over 3 years, joining them in 2012 from

packaging beverage specialist, Tetra Pak,

where he held a variety of positions from

1997, most recently as Marketing and Key

Account Director for Ireland.

10

STATEMENT OF DIRECTORS’ RESPONSIBILITIESThe directors are responsible for preparing the Report of the

Directors and the financial statements in accordance with applicable

law and regulations.

Company law requires the directors to prepare financial statements

for each financial year. Under that law the directors have elected to

prepare the financial statements in accordance with United Kingdom

Generally Accepted Accounting Practice (United Kingdom Accounting

Standards and applicable law). Under company law the directors must

not approve the financial statements unless they are satisfied that they

give a true and fair view of the state of affairs of the company and of

the surplus or deficit of the company for that period. In preparing these

financial statements, the directors are required to:

• select suitable accounting policies and then apply them

consistently;

• make judgements and accounting estimates that are

reasonable and prudent;

• prepare the financial statements on the going concern basis

unless it is inappropriate to presume that the company will

continue in business.

The directors are responsible for keeping adequate accounting

records that are sufficient to show and explain the company’s

transactions and disclose with reasonable accuracy at any time

the financial position of the company and enable them to ensure

that the financial statements comply with the Companies Act

2006. They are also responsible for safeguarding the assets of the

company and hence for taking reasonable steps for the prevention

and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORSSo far as the directors are aware, there is no relevant audit

information (as defined by Section 418 of the Companies Act

2006) of which the company’s auditors are unaware, and each

director has taken all the steps that he or she ought to have taken

as a director in order to make himself or herself aware of any

relevant audit information and to establish that the company’s

auditors are aware of that information.

AUDITORSThe auditors, MMG Archbold CA, will be proposed for re-

appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:R N Bradshaw - Chairman

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF PEFC UK LIMITEDWe have audited the financial statements of PEFC UK Limited for

the year ended 31 July 2016. The financial reporting framework

that has been applied in their preparation is applicable law and the

Financial Reporting Standard for Smaller Entities (effective January

2015) (United Kingdom Generally Accepted Accounting Practice

applicable to Smaller Entities).

This report is made solely to the company’s members, as a body, in

accordance with Chapter 3 of Part 16 of the Companies Act 2006.

Our audit work has been undertaken so that we might state to the

company’s members those matters we are required to state to them

in a Report of the Auditors and for no other purpose. To the fullest

extent permitted by law, we do not accept or assume responsibility

to anyone other than the company and the company’s members

as a body, for our audit work, for this report, or for the opinions we

have formed.

RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORSAs explained more fully in the Statement of Directors’

Responsibilities, the directors are responsible for the preparation

of the financial statements and for being satisfied that they give

a true and fair view. Our responsibility is to audit and express an

opinion on the financial statements in accordance with applicable

law and International Standards on Auditing (UK and Ireland). Those

standards require us to comply with the Auditing Practices Board’s

Ethical Standards for Auditors.

AUDITED ACCOUNTSDIRECTORSThe directors shown below have held office during the whole

of the period from 1 August 2015 to the date of the end of the

financial year.

R N Bradshaw

Mrs J Griffin

R Shaw

J A Sanderson

D S Leslie

S Cook

Other changes in directors holding office

are as follows:

P J Burke - resigned 4 July 2016

S Hart - appointed 13 October 2015

A Olsson - appointed 12 January 2016

11FOR YEAR ENDING 31ST JULY 2016

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS An audit involves obtaining evidence about the amounts and

disclosures in the financial statements sufficient to give reasonable

assurance that the financial statements are free from material

misstatement, whether caused by fraud or error. This includes an

assessment of: whether the accounting policies are appropriate to

the company’s circumstances and have been consistently applied

and adequately disclosed; the reasonableness of significant

accounting estimates made by the directors; and the overall

presentation of the financial statements. In addition, we read all the

financial and non-financial information in the Report of the Directors

to identify material inconsistencies with the audited financial

statements and to identify any information that is apparently

materially incorrect based on, or materially inconsistent with, the

knowledge acquired by us in the course of performing the audit.

If we become aware of any apparent material misstatements or

inconsistencies we consider the implications for our report.

OPINION ON FINANCIAL STATEMENTSIn our opinion the financial statements:

• give a true and fair view of the state of the company’s affairs as

at 31 July 2016 and of its surplus for the year then ended;

• have been properly prepared in accordance with United

Kingdom Generally Accepted Accounting Practice applicable to

Smaller Entities; and

• have been prepared in accordance with the requirements of the

Companies Act 2006.

OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006In our opinion the information given in the Report of the Directors

for the financial year for which the financial statements are

prepared is consistent with the financial statements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTIONWe have nothing to report in respect of the following matters where

the Companies Act 2006 requires us to report to you if, in our

opinion:

• adequate accounting records have not been kept, or returns

adequate for our audit have not been received from branches

not visited by us; or

• the financial statements are not in agreement with the

accounting records and returns; or

• certain disclosures of directors’ remuneration specified by law

are not made; or

• we have not received all the information and explanations we

require for our audit; or

• the directors were not entitled to prepare the financial

statements in accordance with the small companies regime and

take advantage of the small companies’ exemption from the

requirement to prepare a Strategic Report or in preparing the

Report of the Directors.

Derek Grant MA (Hons) CA (Senior Statutory Auditor)

for and on behalf of MMG Archbold

Statutory Auditor

Chapelshade House

78-84 Bell Street

Dundee

DD1 1RQ

6 April 2017

12

2016 2015

£ £TURNOVER 533,964 446,390Administrative expenses 437,428 418,947

OPERATING SURPLUS 96,536 27,443Interest receivable and similar income 15 15

SURPLUS ON ORDINARY ACTIVITIES BEFORE TAXATION 96,551 27,458Tax on surplus on ordinary activities 19,309 5,542

SURPLUS FOR THE FINANCIAL YEAR 77,242 21,916

INCOME AND EXPENDITURE

Travel, subsistence7% and sundry expenses

PEFC29% Council fees

Meetings including3% AGM and GA

Marketing, Commications23% and Consultancy

Subscriptions and3% sponsorship

Office rent, salaries,22% admin and IT

Breakdown of PEFC UK Ltd expenditure for the year ended 31st July 2016

PEFC UK income and expenditure account for the year ended 31st July 2016

Under the Income and Expenditure we have the

Breakdown in a wheel. The figures are:

Note: Surplus of 13%. A larger surplus was

required to cover the increased fees due to PEFC

International as a result of the fall in the value of

Pound Sterling, a move to a larger office and a

new staff appointment in the 2016/2017 year.

Turnover:£533,964for 31/07/2016

13EMPOWERING SMALLHOLDERS AND SUSTAINING LIVELIHOODS

Without economies of scale, investment

or proximity to market, smallholders often

face persistent challenges in accessing

the full value of their resource. This limits

the potential of forest management to

reduce poverty, support rural livelihoods

and contribute to economic development.

Solutions are therefore needed to assist

smallholders in overcoming these barriers

while supporting their crucial role as

responsible stewards of the forest.

To help support smallholders in gaining

access to markets, economies of scale

and value for their resource, PEFC has

developed Group Certification. This

type of certification enables multiple

smallholders to pursue certification

together, sharing costs, roles and

responsibilities. It makes the process

affordable where the costs of individual

certification could prove prohibitive.

It also encourages and facilitates

knowledge sharing and pooling of

resources among smallholders. The

ability to market their products as

certified can help forest owners improve

market access.

To date, nearly a million smallholders

are certified through PEFC Group

Certification. To further increase the

number of smallholders able to benefit

from certification, PEFC is leading a

project to expand Group Certification

globally. Working with local and

international partners in various locations

around the world, including Malaysia,

Nepal, Thailand and Vietnam, we are

learning about the unique challenges

facing smallholders and supporting the

development of new and appropriate

certification solutions.

More than 30 per cent of the world’s forest area is managed by family forest owners, communities and indigenous peoples. While collectively this is a significant share of the global forest area, at a local level it is typically divided into millions of small forest holdings.

Case Study Building PEFC: Group Certification in VietnamIn Thua Thien Hue Province, Vietnam, PEFC supports the strengthening of smallholder co-operatives and alliances. The project is increasing the capacity of co-operatives to deliver forestry-related services, to support smallholders in implementing sustainable forest

practices and to build stronger, more profitable business models from their growing forest resource.

The role of PEFC Group Certification is well-recognised and preparations are underway to offer an affordable

certification system that links small landowners to the market. The project is a co-operation between AgriCord, the Finnish Agri-agency for Food and Forest Development (FFD), PEFC and the Thua Thien Hue Co-operative Alliance since 2011.

PEFC UKSheffield Technology ParksCooper BuildingsArundel StreetSheffield S1 2NSt +44 (0)114 307 2334e info@pefc.co.ukw www.pefc.co.uk

PEFC COUNCILWorld Trade Centre 110 Route de l’AeroportGeneva 1215Switzerlandt +41 22 799 4540e info@pefc.orgw www.pefc.org

Photo credits: AB Packaging, Colpac, Gabriel Ash, HARO/Hamberger Flooring, KLH UK, Pepe Garden Furniture, iStockphoto, Shutterstock.

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PEFC/16-33-599