INVESTING IN TOMORROW'S FORESTS
16 September, 1998
London, UK - World Wide Fund for Nature (WWF) is today launching a
new global initiative aimed at informing investors about efforts to raise
forest management standards and to show how companies adopting high
standards of forest management practice can gain commercial
advantage. This new initiative marks the first stage in WWF's dealings
with the financial industry which it hopes will improve the fate of forests
across the globe.
Worldwide, forests continue to disappear at an alarming rate with 50% of
the world's original forest cover already lost due to pressures from
logging, forest fires and land clearance. Increasing numbers of people
are concerned about forest loss and forest management with recent
surveys showing that this has overtaken recycling and chemical use as a
key environmental issue for the general public.
WWF believes there is now a reliable way to promote improved forest
management in the form of the Forest Stewardship Council (FSC) - the
only independent global guarantee that forest products comes from well
managed forests. The FSC scheme provides companies with a simple
and clear way to demonstrate to consumers and investors that they are
committed to the highest international standards in forest management.
"We can already see that the commercial benefits which companies are
reaping as a result of FSC based certification are growing," said Dr
Claude Martin, Director General of WWF. "Companies that are able to
capture such benefits are likely to be the winners in this increasingly
competitive global industry," he continued.
There are already a number of examples of poor environmental
management which have had a negative impact on companies'
reputations and sometimes on their financial performance. However,
examples from many industries also show that good environmental
performance can have a positive effect on business and financial
performance.
"We strive for environmentally sound forestry in every aspect of our
company's work," said Dr Lennart Ahlgren, President and CEO of
AssiDoman, the world's largest publicly held forest owner. "True
corporate responsibility is about having a balance sheet between high
financial return and low environmental cost which is why we have
completed the certification of all our forests. As a result we've increased
our sales, we've attracted new customers and have also increased
sales with existing customers who are paying a premium price," he
continued.
The risks and benefits flowing from a company's environmental
performance make it an issue of increasing interest to investment
managers. In the case of forest products companies, FSC-based
certification gives them a simple way of identifying environmentally
responsible forest management.
"I believe that good environmental stewardship is rewarded with
reduced risk of liabilities, eco-efficient processes and operations, product
differentiation, increased market share, and access to new markets,"
said Ken Sylvester, Director -Pension Corporate Affairs, City of New
York public pension funds -responsible for managing $80 billion of
pension fund investments. "I think it has been sufficiently demonstrated
that programmes such as the Forest Stewardship Council programme add
value for investors," he continued.
WWF believes that knowledge of FSC-based certification can help
investment managers in their search for the best performing companies in
the forest products sector and WWF is urging investment managers to
incorporate FSC-based certification into their investment criteria.
For further information, please contact:
Alison Lucas: +44 (0) 1483 419266, mobile 0469 688011
Rachel Thackray: +44 (0) 171 470 8846, mobile 0973 618304
or
Forests for Life Campaign
WWF-International
Ave. du Mont-Blanc
1196 Gland, Switzerland.
Direct : +41-22-364.90.08 (new number)
Fax : +41-22-364.05.26 (new number)
Notes to Editors:
1. Copies of the report: "Investing in Tomorrow's Forests" available
from Jill McIntosh, Forests For Life, Branksome House, Filmer Grove,
Godalming, Surrey, GU7 3AB, Tel: 01483 419266. Fax: 01483 427965
2. CD Rom available as above
*WWF is known as World Wildlife Fund in Canada and the United
States of America
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