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INVESTING IN TOMORROW'S FORESTS

16 September, 1998

Available for download in Adobe Acrobat format:
Executive Summary
or
"Investing in Tomorrow's Forests" Report

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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Available for download in Adobe Acrobat format:
Executive Summary
"Investing in Tomorrow's Forests" Report


 
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