AFTN Newsletter 0406 - Panda

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BULLETINIssue 4 November 2006Message from the CoordinatorEventsWelcome to the November 2006 issue of the Australia Forestand Trade Network (AFTN) newsletter. This newsletter willprovide regular updates on developments in forest certificationand the supply, specification and use of certified forestproducts. Please feel free to pass this newsletter ontointerested parties.CHINA WOOD FLOORING EXPORT AND IMPORTCONFERENCENovember 8-11, 2006 – Shanghai, ChinaChina Wood Flooring Export & Import Conference is one ofthe premier wood trade conferences in China and also theannual conference of China Wood International. Theconference will focus on the latest market information, importand export, trade and investment opportunities, and updatedtechnologies and policies. The goal is to help participants tobetter understand the current status of the China wood industryand its relationship to the global marketplace.For more detail, please visit: www.Chinawood.netIn this issue AFTN news News from theGFTN Update on FSCAustraliaJana BlairCoordinator,Australia Forest & TradeNetwork Background andFactsThe Global Forest and Trade NetworkThe Global Forest & Trade Network or GFTN is WWF’sinitiative to eliminate illegal logging, improve themanagement of the world's valuable and threatened forests,and promote credible forest certification. By providing supportto and facilitating trade links between progressive forestindustry companies, the GFTN seeks to create marketconditions that will help conserve the world’s forests whileproviding economic and social benefits for the businesses andpeople that depend on them.The AFTN is the Australian arm of the GFTN (see page 8 formore information).CHINA FTN ANNUAL MEETINGNovember 9th, 2006 – Shanghai, ChinaThe China FTN is holding its annual members meeting onWednesday 9th November in Shanghai. More than 20 CFTNmembers and potential are invited . The main purposes of themeeting is to offer an opportunity among members andpotentials to share experiences and promote GFTN in China.The Meeting is arranged at the same hotel as the China WoodFlooring Exp&Imp Conference is being held.If can any FTN member or potential member is interested injoining the meeting and/or conference – contactjblair@wwf.org.auTHE EIGHTH ANNUAL ECO-PRODUCTS 2006EXHIBITIONDecember 14 - 16, 2006 - Tokyo, JapanIts aim is to accelerate the expansion of green markets byexhibiting environmentally friendly products and services. Thethree-day event, one of the largest of its kind, is expected to

Australia Forest & Trade Network BulletinNovember 2006“Our FSC Chain of Custody certification enables us to use theFSC logo on publications printed on FSC paper,” said GeoffLawyer, General Manager of Complete Colour Printing.draw on more than 550 corporations and more than 150,000visitors.For more forestry and timber trade events in our region go towww.forestandtradeasia.org“UP&UP Creative are committed to minimising our impacton the environment. By sourcing paper from FSC certifiedforests we are supporting our eco-design and values-basedapproach, good forest management and integrating our clientsCSR values into our communication solutions,” said MoniqueMcNamara, Director, UP&UP Creative.AFTN News16th October, 2006Participation in the AFTN is open to all Australian businessesthat supply or use timber and paper and are seeking to supportresponsible forest management.Seeing the trees for their wood - The WWF-convenedAustralia Forest and Trade Network (AFTN) has welcomed itsfirst six signatories who have joined WWF in a growinginternational effort to improve the management of the world’sforests and end illegal logging.Web page:The AFTN now has its own web presence please click hereAFTN home English/) .The AFTN welcomes feedback on both the content and layoutof the website and if there are any extra features you thinkmay be of interest.The signatories represent steps along the forest productssupply chain: forest products companies ITC Limited andTimbercorp, timber importer and wholesaler SimmondsLumber, print management business Complete Print Solutions,commercial printer Complete Colour Printing and integratedcommunications consultancy UP&UP Creative.“Our six participants join a network of over 300 companies in30 countries that are part of WWF’s Global Forest and TradeNetwork” said Jana Blair, WWF’s Forest and Trade NetworkCoordinator.General NewsAugust 2006“As an importer of tropical timber we recognise that ourtrading position gives us the opportunity to take a proactivelead in reducing the trade in illegal timber. Participation in theAFTN will demonstrate our commitment to encouragingresponsible forestry to our customers and suppliers,” said PaulElsmore, CEO, Simmonds Lumber. (for more information onSimmonds Lumber’s connection with Indonesia FTNmembers see story on page 4).Australian Paper's Shoalhaven and Maryvale MillsAwarded FSC Chain of Custody CertificationWWF-Australia congratulates Australian paper for securingFSC Chain of Custody certification for both their Maryvaleand Shoalhaven mills.This certification paves the way for the iconic Australianpaper brand Reflex to carry the FSC label.ITC, a major integrated forestry company secured ForestStewardship Council (FSC) certification for the bulk of itsplantations. “ITC is in an enviable position to be able torespond to our growing national and international customerdemand for FSC certified forest products,” said VinceEramsus, CEO, ITC Limited.18 October 2006The Responsible Award – WWF AustraliaAll of us with an interest in responsible purchasing of timberand timber products are used to considering the forest originsof our paper and building materials, but what about other lessobvious uses of timber – such as award plaques?“As a major Australian supplier of woodchips, FSCcertification of our plantations demonstrates our commitmentto the environment, local communities, and gains usrecognition in the world market for sustainable forestproducts,” said John Vaughan, Executive Director,Timbercorp.Just this issue confronted Claudia Cooney, PublicationsOfficer at WWF-Australia when she was required to designand source awards for the impending November launch of aWWF report, Building Nature’s Safety Net.Two AFTN participants are responding to the businessdemand for publications on FSC certified paper. “Our clientsare increasingly seeking more environmentally responsiblepaper choices,” said Peter Scott, General Manager, CompletePrint Solutions.The plaques will be awarded to the owner of the "Top Ten 10Reserves of the Decade", as judged by WWF.2

Australia Forest & Trade Network BulletinNovember 2006The resulting report demonstrates the impact of green buildingon the industry and trends in the next couple of years.The Green Building Market Report 2006 amalgamatesinformation drawn from a survey of 212 Australianconstruction and property professionals with insights gleanedfrom in-depth interviews with experts from variousstakeholder groups.A joint project of the Green Building Council of Australia andBuilding and Construction Interchange (BCI) Australia, keyfindings of the Green Building Market Report 2006 will bereleased today at the Green Building in Australia conferencein Sydney.One of the awards for the Top Ten Reserves of the Decade - (c)WWF-Australia Claudia Cooney"This Report confirms what the Green Building Councilalready knows - green buildings are no longer just the futureof the industry, they are today's reality, and the Green Starenvironmental rating system is becoming the green buildingstandard of the industry," said Green Building Council ChiefExecutive, Romilly Madew.While Claudia was able to source the timber from TheWoodage in NSW, the award could only carry the FSC logo ifthe timber was processed by someone holding an FSC chain ofcustody certificate. Happily for Claudia, Peter Mussett at theWoodage was more than happy to cut and shape the timber tomatch her design and now the final product can bear the FSClogo.RAAF Richmond (5 Star Green Star - Office Interiors v1; 5 StarGreen Star - Office Design v1; 5 Star Green Star - Office As Built v1(awarded the Sustainable Timber credit for all 3 ratings) (c) BrettBoardmanBack of award with FSC logo - (c) WWF-Australia Claudia CooneyTo ensure your final product can carry the FSC logo, makesure your supplier, printer or manufacturer has been awardedFSC chain of custody."The results also confirm the importance of governmentleadership in driving the shift to a sustainable propertyindustry - highlighting the significance of state governmentsrewriting their office accommodation guidelines, as theVictorian and South Australian State Governments have done.27 September 2006"On the down-side, the results also highlight the need for theGreen Building Council to continue to educate the industryabout the minimal premium involved in building green - withan overwhelming majority (94%) of those surveyed presuminggreen building will increase up-front construction costs.First survey of the green building market in Australia –Green Building News The first survey of the green buildingmarket in Australia shows that green buildings are no longer aniche occurrence, with 84% of Australian architects,contractors and building owners involved in green building, asthe demand for green buildings grows, particularly from thegovernment sector and from large corporate building tenantsand owners."As documented in The Dollars & Sense of Green Buildings,the Green Building Council's landmark cost-benefit analysisof green buildings, while green buildings can incur a smallgreen premium above the costs of standard construction,3

Australia Forest & Trade Network BulletinNovember 2006growing international and local evidence shows that theindustry should not expect the cost to build green to exceed a3% premium - which makes the green premium for a greenCBD commercial building less than 100 per sqm."BCI Australia CEO, Dr Matthias Krups, said the resultsshowed the momentum in the industry to build green.(from Green Building Council of Australia) click here to go tosource (www.gbcaus.org/gbc.asp?sectionid 6&docid 1194)GFTN NewsCopies of the a full participants list can be downloaded fromthe GFTN website www.panda.org/gftnAsiaIn our region the Global Forest and Trade Network haschapters in China, Indonesia, Japan, Malaysia and Vietnam.21 September 2006New Members for Indonesia FTN - WWF IndonesiaOn the 21st September WWF-Indonesia announced two newmembers of the Forest and Trade Network - Nusa Hijau.Investa Fitout at Level 6 & 7, 126 Phillip, Sydney (5 Star Green Star- Office Interiors v1) (c) InvestaPT. Inatai GFI is a garden furniture manufacturer which isusing mixed hardwood and teakwood. PT Inatai GFI buy FSCcertified wood from Brazil, Bolivia, Peru and Uruguay as wellas from other FSC suppliers. PT Inatai was awarded an FSCChain of Custody certificate on August 2001 which wassubsequently renewed on August 03, 2006. The updatedcertificate extended audited activities to include the purchaseof certified logs and sawn timber, sawmilling, manufactureand sales of 100% FSC certified sawn timber, mouldings andfurniture products. In 2005 Inatai sales was 17,000m3, and asat May 2006 was 7500m3."It is early days, but the momentum is palpable and we arewitnessing the convergence of green and great architecture asgreen building is becoming a generally accepted businessstandard," Dr Krups said."The results also point to a strategic window of opportunityfor manufacturers' branding and positioning, with 'specifyinggreen products' ranking among the most common of greenbuilding activities, yet few if any architects are able tospecifically put their finger on a 'green manufacturer'."Other key findings of the survey include:-more than 50% of Australia's architectural firms andcontractors see their sales associated with green building onthe rise - yet 65% of all architects and contractors see 'little orno impact' of green building on their profits;the main reasons for architecture, engineering, contractingand building owners to get involved in green building are:'lowering lifecycle costs' (71%) and 'being part of an industrythat values the environment' (75%); government andeducation are the sectors expected to witness the greatestgrowth in green building; and green building does not featurehighly on the priority list of the residential sector in Australia(however a search in BCI Australia's project leads databaseshowed the residential sector as the leading green buildingsegment (43% of all projects, followed by commercial officeprojects at 19%)).Paul Elsmore (CEO – Simmonds Lumber Group) at Indonesia FTNsigning ceremony - (c) WWF-IndonesiaPT. Seng Fong Moulding Perkasa (SFMP) is a manufacturerof solid wooden flooring and housing components and one ofthe largest such factories in East Java. The mixed hardwoodand teakwood used in their production are procured from localsuppliers in Sumatra, Java, Kalimantan, Sulawesi, and Papuaislands. The entire production of this company is designatedfor export purposes. SFMP is exporting to 24 countries aroundthe world including Australia, France, Malaysia, Hong Kong,Architecture, engineering and contracting professionals aswell as building owners were surveyed in relation to marketdemand for green building; the business impacts andopportunities of green building; and green buildinginformation needs and regulatory standpoints.4

Australia Forest & Trade Network BulletinNovember 2006Germany and Japan. Last year’s total sales volume was 18,380m³, and in the first half of 2006, the company's sales were10,000 m³. SFMP’s current monthly export capacity isapproximately 120 containers.20 October 2006APP Hides Destruction Behind False AdvertisementsJakarta, Indonesia – A new WWF monitoring report releasedtoday reveals that Asia Pulp & Paper (APP), one of theworld’s largest paper and pulp companies, is going to destroyone of the most delicate of all remaining ecosystems inIndonesia - the peat swamp forests of Kampar Peninsula inSumatra.Coincidently SFMP is a major supplier for one of our AFTNmembers – Simmonds Lumber Group. Simmonds Lumber isa major Australian wholesaler of domestic and importedtimber with substantial investment in offices and warehousesacross the Eastern Seaboard of Australia as well as inAuckland NZ.The Kampar Peninsula consists of approximately 400,000hectares of large, still relatively intact peat swamp forestwhich is an important habitat for Sumatran tiger. Jikalahari, alocal NGO network, and WWF have proposed it as a nationalpark. But APP is getting ready to clear the forest on top of adeep peat dome.In 2005, and in recognition of their opportunity to take aproactive lead in reducing the trade in illegal timber,Simmonds Lumber appointed Certisource to provideindependent verification of source and legality for timberexports out of Indonesia.Since it began operations in the 1980s, APP has pulped closeto a million hectares of Riau’s natural forests. WWF’s latestreport details how APP's "forest protection based on legalcompliance" has destroyed about a third of the forest lost inRiau.As part of this process Simmonds recognised the value ofbecoming a member of AFTN and now Simmonds andCertisource, through their relationships with members of theirtimber supply chain, actively promote membership of GFTN.In Indonesia this resulted in Seng Fong signing up as an FTNmember with other major suppliers expected to join soon.In the past, APP had pledged to protect few small blocks ofhigh conservation value forests (HCVF). However, accordingto SmartWood, which was hired by APP to audit itsperformance in protecting these HCVFs, APP failed to protectthem. In a meeting with WWF in June this year, APP thenrefused to guarantee that HCVF would be excluded from itsfuture logging and wood sourcing operations.DNA Lumber being loaded for Simmonds - (c) CertisourceCertisource undertake DNA based third party verification toassure Simmonds Lumber and all interested stakeholders thatthe tropical timber it imports comes from known, legal sourcesas defined by WWF’s GFTN.Natural forest wood piled along a peat swamp drainage canal inRiau Province, Sumatra now used for floating the timber WWFIndonesia.The DNA programme has been a major investment for theSimmonds Lumber Group and one Simmonds is committed tonow and into the future.WWF is working closely with Indonesian governmentagencies to ensure that forest conservation is part of land-useplanning and conversion licensing processes. Suchcollaboration has already led the Indonesia Forestry Ministryto issue a decree establishing an elephant conservation centrein Riau and halt to conversion of natural forest to plantation.The first steps in the DNA journey for Certisource andSimmonds have been completed, however both companiesrecognise that there is still a long way to go as Simmondsstrive to lead the way in the verified legal importation oftropical wood products from Indonesia.5

Australia Forest & Trade Network BulletinNovember 2006WWF is calling on all pulp and paper producers and buyers toavoid suppliers who use any fibre from legally questionablesources or from clear-cutting HCVF. Based on their ownresponsible purchasing policies, some companies, like theRicoh Group and Fuji Xerox Group, both headquartered inJapan, have stopped purchasing APP products.Through its ESMS, Danzer has already met a number ofrequirements for certification of its own sustainably managedforests. Both IFO and SIFORCO have been granted anindependently verified legality certificate by the Swissauditing company, Société Générale de Surveillance. Themeasures and schedule for achieving FSC certification, whichwill be drawn up by WWF and Danzer in the coming months,are a requirement of GFTN membership.To view the full report click here(www.wwf.or.id/index.php?fuseaction newsroom.detail&id NWS1161151678&language e)Danzer's IFO concession, comprising a total of 1.3 millionhectares, is scheduled to achieve FSC certification in 2008.Gradual certification of SIFORCO's five concessions, totallingnearly 1.9 million hectares, is set to begin in 2010.Africa14 Sept 2006WWF and Global Timber Company team up to promotesustainable forestry in Africa - Frankfurt, Germany"By adhering to the requirements set forth in a certificate,customers can rest assured that the wood they buy from uscomes from responsibly managed sources," added HansJoachim Danzer.WWF and the Danzer Group, a leading global producer ofhardwood veneer and lumber, have agreed to work together inAfrica to promote sustainable forest management."We also hope that our joint activities with WWF will lead toa better mutual understanding of ecological demands andprivate economic interests in conjunction with sustainableforest management.while at the same time making animportant contribution to the economic development of one ofthe world’s poorest regions.”As part of the cooperation, Danzer's subsidiaries, IFO in theRepublic of Congo and SIFORCO in the Democratic Republicof Congo — which manage a combined total forest area of 3.2million hectares — are scheduled to be certified by the ForestStewardship Council (FSC) starting in 2008. This is the largestconcession in Africa currently being prepared for FSCcertification.WWF has been active in the Congo Basin for many years andhas worked to establish and oversee protected areas thatprovide safe habitats for endangered species such as gorillas,forest elephants and other wildlife in the region, as well aspromote responsible forestry for the benefit of nationaleconomies and livelihoods of local communities. Despite theirimportance, the Congo's forests are threatened by illegal anddestructive logging, poaching and smuggling of wildlife, andthe illicit bushmeat trade.Danzer has also announced it will join WWF's Global Forestand Trade Network (GFTN), a partnership between leadingNGOs, companies and communiti

and Trade Network (AFTN) newsletter. This newsletter will provide regular updates on developments in forest certification and the supply, specification and use of certified forest products. Please feel free to pass this newsletter onto . AFTN Newsletter 0406 .

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