How to Source Sustainable Wood and Timber Products without Harming Forests

• While forests are essential for a healthy planet and people, deforestation and greenhouse gas (GHG) emissions are on the rise.
• In response to the deforestation crisis, the EU and UN have enacted various policies and programs to curb the issue (e.g., EUDR, REDD, and REDD+).
• Whether your company sources pulp for hygienic products, timber for furniture, wood chips for grills or sources wood products alongside agricultural commodities frequently tied to deforestation (such as palm oil, cocoa, coffee, beef, leather, etc.), kickstarting your sustainable wood journey will be essential to increasing business competitiveness and resilience.

Forests are vital to the health of our planet. They provide habitat for wildlife, purify the air we breathe, and serve as carbon sinks. However, the global demand for wood and timber products often leads to unsustainable practices, including deforestation, illegal logging, and habitat destruction. In fact, logging followed by commodity-driven deforestation has been the primary cause of tree-cover loss. Additionally, deforestation and forest degradation account for 11% of greenhouse gas (GHG) emissions, more than the entire global transportation sector – second only to the energy sector. 

In response to the deforestation and carbon crisis, regions and regulatory bodies around the world are enacting policies to incentivize companies to help. Most notable of these regulations are the EU deforestation-free regulation (EUDR) — which ensures no products containing wood, from furniture to paper, that contributed to deforestation or forest degradation enter the EU market — and the UN’s REDD & REDD+ programs,  which aim to financially support and incentivize developing countries to curb carbon/GHG emissions.

In the timber/wood sourcing space decarbonization and deforestation prevention can feel counterintuitive, but it is possible to source timber and wood-related products in an unharmful way that actually strengthens your paper/wood supply chain regardless of disruptions. In this piece, we explore the risks associated with deforestation, and how companies can mitigate such risks with the right frameworks, tools, and strategies.

‍

What does sustainable wood and timber sourcing look like? 

Sustainable wood, often referred to as "green" or "eco-friendly" wood, comes from well-managed forests that maintain ecological balance, protect biodiversity, and support the livelihoods of local communities. It's harvested with consideration for the long-term health of the forest ecosystem — trees, creatures, and soil.

Sustainable wood sourcing goes beyond harvesting practices. It also encompasses responsible forest management. This includes practices like selective logging, reforestation, and monitoring to ensure the health of the forest is preserved.

The Negative Consequences of Unsustainable Wood Sourcing

Unsustainable wood sourcing has far-reaching consequences — some of which we’re still learning about. However, these are the top five most harmful we’re currently aware of:

1. Deforestation and Biodiversity Loss: One of the most significant threats posed by unsustainable wood sourcing is deforestation. When forests are cleared for timber, it leads to the loss of valuable biodiversity and disrupts ecosystems.

2. Climate Change and Carbon Sequestration Loss: Forests are essential for mitigating climate change. They act as carbon sinks, absorbing carbon dioxide from the atmosphere. When forests are harmed or destroyed, this carbon is released, contributing to global warming.

3. Social and Economic Consequences: Unsustainable wood sourcing can also have severe social and economic consequences, including the displacement of indigenous communities and the loss of livelihoods. It can easily perpetuate a cycle of poverty and environmental degradation.

4. Non-compliance Fines: Regulatory non-compliance fees with industry sustainability and wood sourcing standards could cost your companies millions. Not to mention the potential reputational damage as an unsustainable company.

5. Supply and Demand Risks: A great future risk of unsustainable wood sourcing is the inability to get the timber supply needed to meet supply and demand. Over-logging and unsustainable forestry practices mean a future with not enough wood for your company’s supply.

Shifting to an eco-friendly timber sourcing model not only gives your business a competitive, sustainable edge, but also ensures you have a complete handle on your wood supply chain.

Regulations, Frameworks, and Tools for Sustainable Wood Sourcing: EUDR, REDD, REDD+, WWF, FSC, PEFC

To ensure wood's sustainability, various certifications and standards have been established. Examples include the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC). These organizations set standards, roadmaps, and frameworks for responsible forest management.

With sustainability regulations on the rise worldwide, you should expect to see further developments with deforestation-free regulations. However, the EUDR and REDD programs are currently the two most pressing regulations and frameworks.

EU Deforestation-free Regulation (EUDR): The EUDR stipulates that commodities most commonly associated with deforestation (palm oil, coffee, wood, rubber, soya, beef, and cocoa) must be proven to be deforestation-free before entering the EU market. The EUDR will replace the EU Timber Regulation (EUTR). The UK also plans on adopting a UK Deforestation-free Regulation that mimics the EUDR.

REDD/REDD+ Programs: The UN REDD and REDD+ programs provide technical assistance and knowledge to partner countries to help protect forests and reach their climate goals by accessing financial support.

WWF Wood Risk Tool: The World Wildlife Fund (WWF), a globally leading conservation organization, recently launched their Wood Risk Tool. This tool is meant to be a reliable, up-to-date collection of resources to help companies sourcing wood keep up with the latest info regarding sustainable, strategic timber sourcing. 

Forest Stewardship Council (FSC): Similar to the WWF, the Forest Stewardship Council (FSC) is a worldwide leader in sustainable forestry & forest protection. The FSC offers a variety of tools and resources to learn forestry best practices and prepare for forest-related certifications & regulations.

Programme for the Endorsement of Forest Certification (PEFC): The PEFC is an international non-profit that promotes sustainable forest management through independent third-party certification. Similar to WWF & FSC, you can also find many resources on their site to learn about best practices & tools for sustainable wood sourcing.

Whether you’re looking to learn about EUDR, prepare your organization for a sustainable wood certification, or inform your overall timber sourcing strategy, the above world-renowned resources & tools are the perfect place to get started.

Strategies for Eco-friendly Wood Sourcing: Assessing, Understanding, and Managing your Wood Risk

While there is no one-size-fits-all approach to eco-friendly wood sourcing, we’ve found that these three main steps can help get you on track.

1. Assess Your Wood Risk: Depending on the size of your company and the touchpoints of your supply chains, the level of your risk will vary. Assessing your wood risk will entail mapping your timber supply chains, evaluating how much visibility & data you have along those supply chains, and which regulations or requirements you must meet depending on the countries you source from and the markets sell to. For example, if you source wood from Canada but import those wood products into the EU, you will have to ensure you comply with EUDR.
2. Explore Wood Risk Mitigation Options: Now that you have a baseline idea of the level of your wood risk, you’ll want to explore wood risk mitigation options - i.e. how can you get an even better handle on your timber supply chains to stay ahead of potential risk & keep up with evolving sustainable timber regulations. Maybe you already have a system for conservation in place, but it lacks some important features needed to submit due diligence statements. Or perhaps your EPR systems just aren’t getting you enough on-the-ground data. Or maybe it’s time to standardize a company-wide approach to sustainable timber sourcing, that includes engaging more closely with suppliers. Regardless of your approach, make sure it aligns with both sustainable timber sourcing standards and your company revenue goals & values.
3. Consider a First Mile and/or Second Mile Solution: A common roadblock we see to companies creating more visible, resilient, and sustainable supply chains is lack of comprehensive digital supply chain traceability. Meaning, the ability to access your supply chain map, data, and reports digitally and all in one place. Many companies will choose to partner with first/second mile or satellite monitoring tools. Choosing an option - or combination of options - largely relies on your business, goals, and the nature of your supply chains. WWF created a comprehensive list of options for you to evaluate.

Ultimately, each company must decide what combination of technology, frameworks, and strategies fit best with their business model and timeline. BanQu’s teams are always here to chat through whether BanQu - or another option - may be best for your business.

How To Select The Right Traceability Software for Sustainable Wood Production

Should you end up in the market for a supply chain traceability partner to support your sustainable timber sourcing goals, here are the top attributes to look for.

1. 360-degree value chain visibility. Traceability software that helps you know exactly where your timber supply comes from (down to the forest and/or plot of land) and where it goes will give you such a competitive edge and handle on your supply chain, regardless of any market volatility or global shifts. Typically this comes in the form of first mile visibility solutions.
2. Certification verification and tracking. Whether you need to certify a batch of products for FSC, PEFC, or EUDR-compliant certifications, traceability software can help. Look for software that can help you verify and track these certifications at each step in your value chain - even after aggregation or transformations of goods.
3. ESG/Sustainability reporting. In the ever-evolving world of sustainability regulations and fines, you must capture the data you need to stay compliant whether environmental and/or social measures are your main focus. Ensure that your traceability partner can provide you with all of the data capture, cleanup, and reporting needed to comply with the regulations that affect your business.
4. Seamless integration & open API. The last thing you need is “just another tool to manage”. Especially when it comes to supply chain management & visibility. When looking at supply chain traceability solutions, be sure that the tool is capable of seamlessly integrating with your other legacy systems, and capable of managing, streamlining, and reporting on large amounts of data - so you can remove some of the more manual tasks that eat up your time.
5. GDPR-compliant & secure. Regardless of the touchpoints of your supply chain, the size of your business, and your specific sustainable timber goals, choosing a solution that can handle data in a GDPR-compliant and secure way is key. The right solution should protect your data, your company’s data, and supply chain actor data. Bonus points if blockchain-based technology is leveraged for the utmost security & reliability.
6. Provable Track Record & experience. Since many solutions are popping up everyday, choosing a company with a solid track record and years of experience will quickly help you filter out the companies jumping on the trending market bandwagon from the real deal. Be sure the traceability solution & team you decide to work with has the necessary experience both implementing and advising companies on how to make the most of a traceability tool.

BanQu: The only first and second mile traceability solution to help you prove sustainable wood sourcing.

Whether you’re leveling up your deforestation-free strategy, or just hoping to snag premium pricing and strengthen your wood/packaging supply chain: responsible wood sourcing is crucial for the future of our forests and the health of our planet. By choosing sustainably sourced wood and timber products, consumers and businesses alike can make a significant positive impact. Let's work together to protect our forests and ensure a sustainable future for all.

BanQu is a first/second mile supply chain traceability platform that helps companies sourcing wood ensure ethical sourcing and comply with the EUDR — all while driving business growth and securing their supply to meet demand. Schedule a deforestation-free consultation with BanQu today.