Nadine Block, Senior Director, Government Outreach

SFI sponsored the Fourth Potomac Forum on Illegal Logging and Associated Trade in Washington last week so stakeholders from around the world could talk about what is being done – and what more should be done – to combat illegal logging.

Hosted by Forest Trends, the Forum brought together more than 100 representatives from U.S. and foreign governments, NGOs, forest products manufacturers and buyers to share experiences and learn from one other. In addition to SFI Inc., the sponsors were the World Bank, PROFOR, USAID, the U.S. Forest Service and Forest Legality Alliance. SFI Inc., along with Forest Trends and the World Bank, issued a news release at the close of the one-day forum highlighting the successful outcomes.

We heard how markets are demanding and rewarding transparency and legality, gathered insights from U.S. government representatives tasked with implementing the amended Lacy Act, and learned about the new EU Timber Regulation and developing actions in Asia. I came away with a better understanding of the complexity of the issue – even organizations investing a lot of effort struggle to track down all the information they need to guarantee the legality of products. And participants gained appreciation for the role forest certification can play. One speaker closed his presentation on the new EU Timber Regulation with a slide that said: “When in doubt, ask for FSC/PEFC/SFI”.

Forest certification doesn’t replace the need to submit appropriate import declaration information, but it does show a company has taken proactive steps to keep illegal wood or plant material out of its supply chain. SFI standard requirements stipulate that program participants must comply with all appropriate laws in North America, and when they are buying products from offshore they must avoid controversial sources of supply such as illegal logging. As part of a panel on certification, I had an opportunity to talk about steps SFI takes to address the problem and the challenge we face since just 10 percent of the world’s forests are certified.

SFI Inc. sponsored the forum through our Conservation and Community Partnerships Grant Program, which is fostering partnerships to improve forest management in the United States and Canada, and responsible procurement globally. The Potomac Forum is just one of the many activities the SFI program is involved in as part of its efforts to thwart illegal logging. Through our conservation grant program, we are supporting the World Resources Institute (WRI) in their creation of an open access, map-based, global information hub so users can conduct due diligence on forest trade. We recently authored an article on How Certification Addresses Illegal Logging in the UK’s Timber in Construction magazine. And on June 14 we will co-host a public webinar with WRI on illegal logging.

Many others came away with positive impressions about the Potomac Forum and the critical need to work together to address this important global issue. We invite you to watch these videos featuring Michael Jenkins from Forest Trends, Joe Lawson from MWV, and James Griffiths from the World Business Council for Sustainable Development sharing their thoughts about the event:

Phil Riebel, a sustainability advisor to the forest, paper and print sector, recently posted a couple of informative blogs on RISI questioning whether environmental activists are misleading their funders and consumers when it comes to certification and recycling.

Phil talks about the downsides of well-funded campaigns that skim the surface of complex issues, and lead consumers to believe that something as simple as using paper that’s recycled or certified to the Forest Stewardship Council (FSC) automatically yields environmental benefits.

In his second blog – Are environmental campaigns misleading the public? Part II – Phil challenges claims that certain certification standards, such as FSC, are more protective of the environment at a global scale. Phil says a 2005 international study (the World Wildlife Fund was one of the study partners) looked at on-the-ground differences between certification schemes in Canada, Finland and the UK, and did not identify any as “destructive and inferior” nor did it identify any as “much better” as campaigners would have us believe.

He says competition has been healthy and improved all certification programs, and this in turn supports responsible forest management as well as price and supply stability. It encourages more certification and is more likely to benefit communities in countries where campaigners and most of their supporters live.

Committing to one scheme could reduce purchasing and negotiating options for buyers, and disadvantage local communities in North America. Phil recalls a campaign where a large U.S.-based corporation was pressured to buy recycled and/or FSC paper, and eventually gave its business to a European mill that received FSC-certified wood from the UK.

Phil’s call to action is simple: Consider the many elements involved in the design and production of sustainable paper to ensure long-term sustainability of business and measurable environmental improvements based on science. “Pressuring the marketplace to use certain fiber types when it doesn’t make sense may not benefit the environment or the economy,” he says. I absolutely agree.

Only 10 percent of the world’s forests are certified so the growing convergence among certification programs is good news for responsible consumers. A recent UN market review says: “Over the years, many of the issues that previously divided the (certification) systems have become much less distinct.”

TerraChoice’s 2010 Sins of Greenwashing report includes certification labels like SFI, the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification on a limited list of “legitimate” environmental standards and certifications. It is just one of many respected organizations around the world that accept SFI as a legitimate certification standard.

This reality stands in sharp contrast to misinformation being disseminated by market campaigners. Their tactics mislead and confuse consumers, and do nothing to improve forest management. While SFI and FSC differ in approach and the level of depth assigned to different topics, one thing is for certain: both standards have led to improvements in forestry and conservation.

At SFI, we understand forest management demands a multi-faceted, science-based, and inclusive effort involving people from all walks of life. We have a forest standard with rigorous requirements, and we make sure program participants meet them. But we go a lot further – looking for ways to help our partners improve knowledge and practices related to forest management and procurement, and strengthen communities and build partnerships that support responsible forest management. This is the most honest approach, and it is the best way to benefit the environment AND our communities.  After all, isn’t that the point?

I recently had a conversation with Jeff Bi, Managing Director of Tralin Packaging (aka Tralin Pak) about the about the packaging marketplace and perceptions of certification overseas. Tralin Pak is based in China and is the third largest supplier of aseptic paper-based packaging in the world. He was surprisingly candid, and said that he had originally thought of certification as a cost his business would have to absorb. But it was his customers and their desire to be green that convinced him otherwise. He says he now sees certification as an investment. Not just in his business, but in the social and environmental well-being of the communities his company serves, as well as his country and the planet. To see the full conversation, watch the video below. And please let me know your thoughts on the matter. Certification: cost or investment?

It’s been incredible here at Fortune’s Brainstorm Green conference – and educational. Meeting and talking to so many concerned and influential folks interested in climate change, environmental practices and the business of sustainability has been really encouraging. I also appreciated the opportunity to participate in the panel called Traceability: How Well Do You Know Your Supply Chain? This took place on Tuesday and it was a fascinating discussion moderated by one of Fortune’s contributing editors, Marc Gunther. Other panelists included Jill Dumain of Patagonia and Michael Kowalski, CEO of Tiffany & Co. My video post below details the panel discussion a bit more.

Kathy Abusow, President & CEO at SFI

During the traceability panel we also heard from Arlin Wasserman, Vice President of Corporate Citizenship at Sodexo. Sodexo employs 350,000 people worldwide and serves some 50 million people a day in 85 different countries. They provide facilities management, energy management and food service to corporations, hospitals, schools and government buildings. Sodexo is in a unique position to influence environmental practices and they stressed the importance of transparency, traceability and certification. And Arlin has a unique perspective on it – as you can see in our interview with him below.

Arlin Wasserman, Vice President of Corporate Citizenship at Sodexo

We were also able to spend some time with Rich Lechner, Vice President of Energy and Environment at IBM. IBM has had a corporate sustainability agenda since 1971. You’ll find a few similarities between some of IBM’s best practices and the requirement we have for independent third party auditors (it has to do with management, measurement, monitoring and transparency through third party verification). In our conversation, we talked about how sustainability fits into IBM’s corporate and business objectives, how IBM supports sustainable forestry and lessons learned re: sustainability. The highlights of this conversation are in the video below

Rich Lechner, Vice President of Energy and Environment at IBM

I’ve been involved in the forest sector for 20 years and I can honestly say I don’t remember a time when the sector faced as many challenges as it does today. It seems every day I am hearing of more mill closures, consolidation, layoffs, etc. I’ve seen some tough times in the sector for sure, and yet I’m always impressed by the resiliency of the sector and its passion for our forests.

This commitment to the environment is evident in SFI’s record growth over the past year. We’ve averaged more than one certification per day, and today we have more than 1000 locations certified across North America and more than 700 organizations are involved in our program. From land owners and managers to wood procurement companies to lumber yards, furniture makers, printers and paper makers and packaging companies to governments and customers – we are witnessing a unprecedented commitment to responsible forest management. This at time, when as a sector, we are clearly hurting.

I can’t say for sure what 2009 will hold for the forest sector, no one can. I can say this though, our forests in North America and globally are still a priority, that sustainable forest management and sustainable communities are paramount. However, with only 10% of the world’s forests certified, the health and sustainability of forests and our communities depends on us working together not against one another. This is not the time to support a monopoly, we need choice in forest certification programs, it’s time for us to work together to ensure our forests are there for future generations, that our customers have choice and consumers have access to forest products from well-managed forests. Whether you’re a printer, a forest company, another certification program, an environmentalist or anyone that cares about the world’s forests, I invite you all to work together with us at SFI to address the challenges facing our forest sector and seize the opportunities to promote sustainable forest management globally.