PEFC Annual Report 2019 by Designed By Faust

PEFC ANNUAL REPORT 2019

PEFC/16-01-01

CONTENTS

01 CHAIRMAN’S REPORT Ross Bradshaw reflects on PEFC ‘s progress over the past year

02 MARKET OUTREACH Snapshot of PEFC’s market outreach activities to promote awareness of and drive demand for certified products

04 PEFC IN THE MARKETPLACE PEFC-certified products from a broad range of sectors are on sale in the UK marketplace

06 PEFC’S 20TH ANNIVERSARY Now in our 20th year - how PEFC has grown into a truly global organisation

08 GOVERNANCE PEFC UK Board of Directors - contributing expertise from a broad range of stakeholder sectors

10 ACCOUNTS PEFC UK financial report for 2017-18

13 PEFC PAUSE FOR THOUGHT HEAD ABOVE WATER PEFC UK sponsored a high-profile exhibit on the Thames to raise awareness of certified timber

PEFC UK LIMITED

BOARD OF DIRECTORS

Programme for the Endorsement of Forest Certification

Ross Bradshaw (Chairman) Steve Cook Julia Griffin Tom Hallam Simon Hart David Leslie Elisabeth Piveteau-Boley John Sanderson Rob Shaw

Sheffield Technology Parks Cooper Buildings Arundel Street Sheffield S1 2NS t +44 (0) 114 307 2334 e info@pefc.co.uk w www.pefc.co.uk Registered in Scotland Company Number 209443

See pages 8-9 for details

CHAIRMAN’S REPORT

Ross Bradshaw, Chairman, PEFC UK I am delighted to introduce PEFC UK’s 14th Annual Report. 2019 is a very special year for the PEFC family as it marks 20 years since the organisation was founded. In the 1990s, before PEFC was created, forest certification was designed primarily for large-scale forest owners, managing huge tracts of forest land. These large-scale forestry operations had broad enough shoulders to take on the costs of certification. But millions of small, family and community forest owners did not. As a result, although they could appreciate the market benefits certification provided, they were priced out of the certification process and therefore from the growing market for certified products. So, back in 1999, organisations representing small-forest owners from around Europe, came together to create an international forest certification system that could meet their needs. This led to the creation of PEFC in June 1999. This was an important development. 25% of the world’s forests are family and community-owned, so it’s vital for all of us that these forests are managed sustainably.

alliance. To find out more about how we’ve grown, see page 14-15. Here in the UK we recently said farewell to Board member Anders Olsen. For the past two years, we have benefitted greatly from Anders’ experience in the global packaging sector. Sadly, pressures of the day job meant he had to relinquish his Board role but I would like to thank him for his invaluable service and wish him well for the future. However, I am delighted to report that we have found an excellent replacement. Tom Hallam, joined the PEFC UK Board in January. Tom, who has 17 years’ experience in the packaging industry, is currently Business Development Director at BillerudKorsnas. Tom’s experience of wood-based products, combined with this knowledge of environmental and social certification systems, means that he brings an important skillset to PEFC UK. The founders of PEFC meet in 1999 to establish a certification scheme for small and family forest owners.

By enabling such small-scale forest owners to participate in certification, PEFC led a great leap forward for sustainable forest management. For the past twenty years, we have strived to ensure our forest certification system continues to be accessible and relevant to forest owners around the world. Everyone who has contributed to PEFC’s success can take pride in how the organisation – which started out with half a dozen European members – has flourished into a truly global

As ever, special thanks to the many individuals and organisations that enable PEFC to achieve as much as it does in the UK. We are particularly grateful for the ongoing support of the Finnish Forest Foundation. Their investment in our marketing and communications activities continues to support us in our goal of raising awareness of PEFC in the UK forest products market.

I would also like to record my appreciation to my fellow Board members for the time they have generously devoted to our affairs over the past year. We are fortunate indeed to benefit from the wealth of expertise and experience they bring to the organisation. Finally, I would like to thank the PEFC UK team of Alun Watkins, Tracey Reeve, Sarah Gascoigne and Hilary Khawam for their enthusiasm, hard work and determination to ensure that PEFC continues to go from strength to strength in the UK. 1

MARKET OUTREACH

Market Outreach Raising awareness of the assurances that PEFC certification brings to forest products remains a key objective for the PEFC UK team. This is why the Board allocates a quarter of our annual income to this crucial area of our work. We are delighted that the PEFC brand is increasingly recognised and understood in the UK marketplace, providing added value to hundreds of UK companies who have invested in certification. The following provides a snapshot of our market outreach activities over the past twelve months.

Forestry International Forest Festival In July, we sponsored a new event in the UK forestry calendar. TIMBER, held in England’s National Forest was the first international forest festival. Planting for the National Forest started 25 years ago when the transformation began of large swathes of the Midland’s landscape – scarred by years of coal mining – into England’s largest forest to be created for over 1,000 years. The festival provided visitors with an activity-packed weekend which included music, food and art installations. Sponsorship of this event enabled us to raise consumer awareness of the PEFC brand and our role in helping to secure a future for the world’s forests.

Field Trip to Windsor The Crown Estate forest in Windsor Great Park was the location for our first dedicated field trip for the UK construction industry. The visit aimed to demonstrate the link between certified forests and sustainable construction. Participants were able to learn how the construction sector can support responsible producers and ultimately the world’s woodlands and forests, through their procurement choices. Those who participated were able to witness timber harvesting and were briefed by Crown Estate’s Chief Forester John Deakin, on the steps taken to ensure that Swinley Forest – part of the 6,000-hectare Windsor Estate – is sustainably-managed. He explained how the forest met PEFC’s sustainable forest management criteria on land management, accessibility for recreational users and wildlife, biodiversity promotion and its long-term tree replanting strategy.

Royal Forestry Society Award 2018 The winner of last year’s Royal Forestry Society (RFS) Excellence in Forestry Education and Learning Award was the Architectural Association’s Design + Make Masters Programme at Hooke Park, Dorset. Founded in 1882, the RFS is the UK’s largest forestry education charity and now has almost 4,000 members. This award seeks to recognise schools, colleges and universities who increase awareness, understanding and skills related to the environmental, social and economic potential of trees, woodlands and forests, and demonstrate the link between trees and wood products. PEFC UK was proud to sponsor this award for the eighth consecutive year. 2

PEFC Annual Report 2019

Jez Ralph (centre) receives the award with RFS President Andrew Woods (left) Alun Watkins from PEFC and architect and broadcaster Piers Taylor (right)

Timber and Construction Surface Design Show 2018 In February, we sponsored the Surface Design Show for the third year in succession. A presence at this show helps raise awareness of PEFC-certified wood products within the architecture and design communities. We were delighted that Belfast-based architect Micah Jones agreed to present his County Down Barn project which had previously featured in Channel 4’s Micah Jones Grand Designs. PEFC-certified cross-laminated timber (CLT) was the core material used on the project. It was specified because of its excellent thermal efficiency, airtightness plus superb structural and sustainability credentials.

Designing the Future with Sustainable Timber Campaign Last year, we participated in a global PEFC marketing campaign – Designing the Future with Sustainable Timber – which aimed to raise awareness of and demand for PEFC-certified timber in the construction industry. The campaign aimed to leverage PEFC’s global reach and certified timber supply from 43 countries. It highlighted how PEFC’s national members are investing in the promotion of certified timber, especially engineered wood products such as cross-laminated timber (CLT) and glulam, through activities such as trade shows, awards sponsorship and stakeholder events. The centrepiece of the campaign was PEFC’s sponsorship of a new prize – Best Use of Certified Timber – at the World Architecture Festival (WAF). This is the only architectural event with a truly global reach. The Festival was held in November at Amsterdam’s RAI Convention Centre. The winning project, which used PEFC-certified CLT, was International House in Sydney. At seven storeys, International House is the world’s tallest all-commercial building constructed solely from engineered timber.

International House, Sydney

Buying Legal & Sus

tainable Timber

The World’s Largest Certification System Forest

It is critical to make sure your timber and timbe have full Chain r products of Custody or are demonstrat sustainable in ed as legal and line with the Gover nment’s Timbe Policy (either Categ r Procurement ory A or Categ ory B). Evidence and sustainable of legal timber can be demonstrated timber or timbe by supplying r products with Chain of Custo The acceptable dy. claim for PEFC -certified mater “xx% PEFC Certifi ial is ed”. For the major ity of constructio standards, speci n fications and labels , 70% is the minim accepted claim. um

Promotional Materials from PEFC DESIGN WITH A DIFFERENC

variety and species of timber available from PEFC sources is enormous with

Barn - Micah Jones

Architects

County Down an endless variety and of colours, grain from. The potential character to choose patterns and wood imagination and tion is as wide as your l has scope for timber applica certain the materia Custody you can be with PEFC Chain of and sustainable origin. come from a legal

TIMBER

ARCHITECTS, BUILDING DESIGN & PEFC-CERTIFIED

FOREST THE WORLD’S LARGEST CERTIFICATION SYSTEM

Timber is the link between building and nature. The

PEFC-CERTIFIED

PEFC is an intern ational non-profit, non-governmenta organisation dedic l ated to promo ting Sustainable Management Forest through indep endent third-party It works by endor certification. sing national forest certification system has recognised certification system s and s in 39 countries. Today over half a million forest owners manage million hectares more than 300 of forests accor ding to PEFC’s Benchmarks, makin Susta inability g PEFC the world ’s largest forest product certifi cation system. and wood

vernmental tional non-profit, non-go PEFC is an interna able Forest ed to promoting Sustain organisation dedicat rty certification. It independent third-pa Management through tion systems and has national forest certifica ing endors by works than 40 countries. tion systems in more certifica ised recogn e more than 300 forest owners manag Today over half a million PEFC’s Sustainability forests according to million hectares of forest and wood PEFC the world’s largest Benchmarks, making companies . To date, almost 20,000 system tion certifica product tion – the process Chain of Custody certifica have obtained PEFC the building site, from the forest to timber certified of tracking audited. chain is independently supply the of step where each

For more information

FOR THE CONSTRUCTION INDUSTRY

TIMBER

on PEFC visit: www .pefc.co.uk

Key informato Over the past twelve months, additional promotional tools have been added the tion requ delivery documents forired on timber Chain of Cus tody PEFC library. These are available free of charge. PDF versions can be downloaded  from our website. Printed copies can be obtained by e-mailing: info@pefc.co.uk  stunning material that looks Aesthetics: a natural interiors structural applications, across a range of and exteriors and simple material that is Flexibility: a unique y - it is to the circular econom easy to specify. Key le and recyclable renewable, reusab a ding results across  Performance: outstan schemes to high ction wide range of constru

1. Supplier’s name and address 2. Site delive ry address 3. Clear produ ct description 4. Quantity of delivery for each www.pefc.co.uk information on PEFC visit: For more certifi ed product 5. Delivery date 6. Formal claim against each certified produ ed UKctLimit PEFC “xx% PEFC Certifilogy ed” Parks Sheffield Techno 7. Suppl ier’s Buildinof Arundel Street, gs,Custo Cooper Chain dy certificate numb er. ld S1 2NS

Our brochures for the construction sector – PEFC-Certified Timber for the  Construction Industry and for architects – Architects, Building Design & PEFC  Certified Timber have been revised and updated. Those responsible for ensuring compliance with corporate timber procurement policies, might also find the pocket guide to Buying Legal & Sustainable Timber useful. rds environmental standa from of timber species Supply: a huge variety a special to give your scheme around the globe ve network le from an extensi availab Widely flourish. rs supplie and nts of mercha way to a trusted and robust Chain of Custody: user. the forest to the end track timber from low and effective way to achieve Sustainability: an green leading s, recognised by zero carbon building Singapore globally. These include building standards Star Green ian l, the Austral Green Building Counci Green US the in Canada and Program, Built Green Building Initiative

Sheffie t e w

0114 307 2334 info@pefc.co.uk www.pefc.co.uk

PEFC UK Limi

ted Sheffield Techn ology Parks Cooper Buildi ngs, Arundel Street , Sheffield S1 2NS t e w

0114 307 2334 info@pefc.co.uk www.pefc.co.uk

Printed on PEFC Certified paper Print Solutions. by Northend Creative + Partners Certification no. e – Rogers Stirk Harbour BMT-PE , Speysid FC-061 Distillery 2 Photo credits: Macallan iStock, Fausto Franzosi/PEFC Pasquill, Pixabay Italy, , Stewart Milne Timber Systems UK Limited

Northend Creative Certified paper by Printed on PEFC on no. BMT-PEFC-0612 Print Solutions. Certificati Design Group, Structures, Fairhurst Photo credits: B&K Stora Enso Jones Architects, Robertson, Micah © 2018 PEFC UK

BUYING LEGAL

Limited

PEFC International has also launched a new video on Chain of Custody which is available on PEFC’s YouTube channel: www.pefc.org/resources/videos

& SUSTAINABLE

TIMBER

All timber and timber products supplied to our sites must have a full Chain of Custody or demonstrated as legal and sustainable in line with the UK Government’s Timber Procurement Policy (Category A or B).

Evidence of legal and sustainable timber can be demonstrated by supplying timber or timber products with Chain of Custody under PEFC or FSC®

CLAIMS

This is the only acceptable claim which can be made for PEFC Certified timber.

X% PEFC  CERTIFIED

LABELS PEFC PEFC  CERTIFIED  RECYCLED For the majority of constructio n standards, specifications and labels, 70% is the minimum accepted claim.

PEFC CoC Busines Card.indd 1

22/04/2018 21:17

PEFC IN THE MARKETPLACE

PEFC in the Marketplace PEFC-certified products continue to be used across a wide range of sectors, not only in the construction and joinery sectors but the furniture and packaging sectors also continue to expand the use of PEFC-certified material. The following are a selection of products and organisations sourcing responsibly and promoting the benefits of using certified material to their customers.

Paper Fine Décor Wallcoverings Fine Décor Wallcoverings Ltd is a conscientious, customer-focused, leading wallcovering manufacturer and distributor. Its technical and production management team are always reviewing the company’s operations for opportunities to improve in four key areas: quality, ethics health and safety and sustainability. Becoming PEFC Chain of Custody certifed 15 years ago, was the first step the business took to ensure that their raw materials were responsibly-sourced. Since 2003, the company has noticed large shifts in the public opinion with more consumers demanding traceability and recognising the PEFC logo on its products. “We hear on a daily basis the challenges we face environmentally in our fast-paced consumer world,” said Steve Mulheron, Commercial Director. “At the heart of the Fine Décor DNA, it is important to us that the product we market as PEFC-certified under the Fine Décor and Crown brands, with collections such as Milano and Bergamo, are traceable in terms of sustainability. It means we can ensure our customer understands that both we and they are helping contribute the creation of a better world for future generations.”

Packaging Sustainable Packaging Alternatives to Plastic The contemporary consumer expects packaging to be responsibly sourced, easy to recycle and have a minimal impact on the environment. Across the world there are also increasing concerns about the damage caused to the environment by single-use plastics – especially on marine life and the potential long-term effects on the food chain. To reflect this, many manufacturers are now able to supply the ‘food to go’ sector with PEFC-labelled, recyclable packaging products that provide visual proof of their sustainable procurement policy and supply chain objectives. ITSU’s large sushi trays – manufactured by Belfast-based food to go packaging specialist, Huhtamaki Delta – and made from PEFC-certified paper board – now carry the PEFC label. Using PEFC’s ‘two trees’ label on pack provides their customers with assurances the company is committed to responsible sourcing and striving to produce ‘the most innovative, healthy delicious food from responsible sources.’ ITSU was founded in 1997 by Julian Metcalfe, one of the cofounders of leading food to go chain Pret a Manger, and sells a range of Asian inspired dishes. 4

PEFC Annual Report 2019

Construction Macallan Distillery The Macallan Distillery has quickly become an iconic building, showcasing engineered wood via the most complex timber roof structure ever built in the UK. The multi-award winning project was unveiled by international premium brand drinks company Edrington in 2018. The Macallan, one of the most famous whisky brands in the world, wanted a new centre that could reveal the production processes and welcome visitors while, remaining sensitive to the beautiful surrounding countryside. Built on the Easter Elchies estate in Speyside, the flagship £140 million Macallan Distillery roof consists of five domes which mirror the surrounding landscape. PEFC-certified main contractor Robertson delivered the complex architectural design, working with 25 sub-contractors to bring the distillery and visitor experience to life. The roof is comprised of 1,750 PEFC-certified glulam timber beams, making up a 3x3m grid that carries 2,500 cassettes that support a natural meadow green roof. It took almost 12 months of work, using collaborative design and bespoke parametric modelling software, to define the complex geometry, and realise the fluidity of the structure. The timber elements were manufactured in Austria by Wiehag using high-precision, computer-controlled technology – one of the few companies in the world capable of this level of engineering.

Furniture Southsea Deckchairs The traditional deckchair is a very British seaside staple. The UK’s leading maker and supplier of traditional timber-framed deckchairs is Southsea Deckchairs – started by Director and Founder Stephen Davies, when he began selling deckchairs along Southsea seafront in 1981. Manufactured to withstand the elements and tough treatment, the deckchair timber frames are made with PEFC-certified Merpauh – a sustainable and durable hardwood that is finished with teak oil. This provides excellent protection against the elements and helps withstands wear. As well as extending the deckchair’s working life, the fine finish enhances its natural appearance. More durable also means more sustainable. “It is very important that we supply products made from responsibly managed forests. In this day and age, the awareness of sustainability, in the retail industry especially, has soared and now it is essential as a business to be aware of its impact on customer preferences. We made the decision to buy PEFC-certified timber in order to reduce the impact on our forests and the environment. We also wanted to create longer lasting, more durable chairs which needed less frequent replacement. Our chairs are built to last years if not decades. We’ve been using PEFC-certified timber for six years now and will continue to do so as it has been successful for us, our customers and most importantly our environment.” 5

National members represent PEFC in countries

PEFC’S 20TH ANNIVERSARY

PEFC Membership Statistics, facts

309

million hectares of forests globally

15 countries

We welcomed the first certified forest area in Africa, as nearly 600,000 hectares achieved PEFC certification in Gabon. Argentina saw the biggest percentage increase in PEFC-certified forest area, growing almost 1000% from 22,000 to 247,000 hectares. Europe and Asia both saw increases in their PEFC-certified area, thanks in particular to growth in Russia and Sweden, and China and Japan, respectively.

are developing a PEFC system or preparing to apply for endorsement

750,000

forest owners

PEFC-certiﬁed forest area per country (as of 31 Dec. 2018) Norway Norway 7,380,750 7,380,750

(ATFS) USA (ATFS) 7,380,807 7,380,807

Brazil Brazil

PEFC Annual Report 2019

Argentina Argentina 247,135 247,135

3,810,105 3,810,105

Uruguay 645,670 Uruguay 645,670

Malaysia Belarus Malaysia Belarus 4,592,298 4,592,298 8,595,160 8,595,160

Germany Germany 7,571,509 CzechCzech 7,571,509

Republic Republic 1,736,924 1,736,924

ItalyItaly 819,017 819,017

Gabon Gabon 596,822 596,822

Japan 1,693,827 Japan 1,693,827

Latvia

Slovenia 286,000 Slovenia 286,000

Portugal Portugal 268,824 268,824

ChinaChina 6,614,566 6,614,566

Poland Latvia1,707,039 1,707,039 Denmark Poland Denmark 7,155,810 274,325 7,155,810 274,325

Austria Switzerland SwitzerlandAustria 240,386 2,669,187 240,3862,669,187

3rdrd

Chile Chile 1,908,712 1,908,712

France France 8,032,839 8,032,839

Spain Spain 2,208,827 2,208,827

USA USA(SFI) (SFI) 25,973,081 25,973,081

Ireland Ireland 376,108 376,108

Estonia Estonia

1,241,612 1,241,612

Russian Russian Federation Federation 20,694,095 20,694,095

Total:

Indonesia Indonesia 3,903,695 3,903,695

309,473,277

hectares

Australia Australia 11,339,703 11,339,703

New Zealand 469,198

United United Kingdom Kingdom 1,475,365 1,475,365

stst

Slovakia 1,224,220

Finland Finland 18,037,840 18,037,840

New Zealand 469,198

Sweden Sweden 15,927,847 15,927,847

nd nd

Slovakia 1,224,220

Canada (CSA) Canada (CSA) 33,533,849 33,533,849

Luxembourg 35,222 Belgium 300,999 Luxembourg 35,222 Netherlands 3,240 Belgium 300,999 Netherlands 3,240

Canada (SFI) Canada (SFI) 98,500,664 hectares 98,500,664 hectares

More than

20,000 PEFC’s Chain of

PEFC members with endorsed systems PEFC members with systems not endorsed yet

Chain of Custody certiﬁcates *11,466 Chain of Custody certificates. Some of these include Group Schemes with multiple members. Overall 20,000 companies are certified.

Morocco 6

Australia 203

Papua New Guinea 1

Malaysia 359

Singapore 23 Indonesia 32

Vietnam 6 Philippines 6

Sri Lanka 1

India 17

Greece 4 Turkey 32 Turkey 32 Cyprus 2

Lebanon 2 Israel1 3 Bahrain Egypt 3 Saudi ArabiaEgypt 2 3

Israel 3

Tunisia 1

Croatia 7

Greece 4

Bosnia and Herzegovina Bosnia and2Herzegovina 2

Morocco 6 1 Tunisia

Taiwan 6

Austria AustriaHungary 21 Hungary 21 Bulgaria 6 Bulgaria 6 454 454 Slovenia 50

Croatia 7

Italy 719

Singapore 23 Indonesia 32 Thailand 15

2nd

Slovenia 50

Monaco 1

Italy 719

Switzerland 63

11,466*

Monaco 1

Uruguay 3

PortugalPortugal Spain Spain 152 152888 888

Switzerland 63

Total:

Argentina 14

Bolivia 1

Argentina 14

Chile 65

1st

of Korea 4 Republic of KoreaRepublic 4

Czech Republic Malaysia 187 359 Slovakia 116 Romania 28 Romania 28 Thailand 15

Czech Republic 187 2nd Slovakia 116

China

Belarus 324 104

Japan 481

Japan China 481 324 Taiwan 6

Lithuania 10 Lithuania 10 Poland Poland Belarus 104 183 183

Colombia 1

1st

76 Latvia 80

Vietnam 6 Russian6 Federation 39 Philippines

Denmark 100

Dominican Republic 1

BrazilRepublic 1 Dominican 45 Colombia Peru 1 13 Brazil Chile Bolivia 1 Peru 13 45 65

Mexico 9

Estonia

Russian Federation 39 India 17

USA 241

Finland 234

Sri Lanka 1Ukraine 1

Netherlands Netherlands Belgium Belgium 469 270 469 270

France France Germany 1,968 CoC certiﬁcatesGermany1,695 1,968 CoC certiﬁcates 1,695

(PEFC CoC)

(PEFC CoC) 241Mexico 9

Norway Sweden Norway Sweden Finland 73 195 73 195 234

Ukraine 1

Canada 175 USA

3rd

Luxembourg 17

Canada 175

3rd

Ireland 38

United Kingdom PEFC Chain of Custody United Kingdom certiﬁcates per country1,057 1,057 (as of 31 Dec. 2018)

Luxembourg 17

Countries where Chain of Custody certiﬁcates have been issued

Australia 203

Cyprus 2

Lebanon 2 Bahrain 1

United Arab Emirates 30Saudi Arabia 2 South Africa 4 United Arab Emirates 30 South Africa 4 Oman 1

Oman 1

New Zealand 26New Zealand 26

Governance GOVERNANCE

PEFC UK is a membership association which represents a broad range of stakeholder interests. Every PEFC-certified company in the UK automatically becomes a member of the organisation with full voting rights at the Annual General Meeting held in July. Additionally, PEFC UK also counts organisations which share our commitment to sustainable forest management and responsible sourcing amongst as members. These include the Timber Trade Federation, the Paper and Board Association, the Confederation of Paper Industries, the Wood Panel Industries Federation and the Structural Timber Association. The forestry sector is represented by CONFOR, the Commonwealth Forestry and the United Kingdom Woodland Assurance Standard (UKWAS) as well as the Country Land & Business Association. PEFC UK recognises the importance of having its stakeholders’ views represented on its Governing Board. We are fortunate enough to benefit from the expertise of senior figures from a broad range of sectors, including forestry and those trading in forest products.

Ross Bradshaw

Ross Bradshaw has worked in the paper manufacturing industry for more than thirty years. He began his career in manufacturing by training as a paper maker in Aberdeen. Working in heavy industry while living in a rural setting, led to an early interest in the effects of the paper making industry on the environment and the positive role it plays. He has worked with a number of industry groups including the Paper and Board Association and the Stationers’ Company, the City of London Livery Company for the Communications and Content industries, where he is a Liveryman. He is also a Trustee of the New England Trust, a West Sussex community woodland project. Currently, Ross runs his own paper agency business representing a number of speciality paper mills from the USA and Europe. He is PEFC UK’s longest serving director having joined the Board in 2007. 8

PEFC Annual Report 2019

Steve Cook

Steve Cook is the Product Improvement & Innovation Manager for Willmott Dixon Construction, one of the largest privately-owned main contractors in the UK. He has 28 years of varied experience in the construction industry having entered the industry as an apprentice carpenter. Steve joined the PEFC Board in 2013 and is our lead for the construction sector. During his time chairing the UK Contractors Group (UKCG) Materials Task Group, he led the development of organisational policy to improve the procurement of timber which was adopted by its members. He is also chairman of Grown in Britain, a not for profit, industry-led and government backed organisation which aims to create a more sustainable future for the UK’s woodlands and forests.

Julia Griffin

Julia Griffin is Kingfisher’s Offer and Sourcing team’s Group Wood and Paper Specialist. Kingfisher Plc operates over 1,000 stores in eleven countries in Asia and Europe. Its main retail brands are B&Q UK, Castorama, Brico Dépôt and Screwfix. Julia works with the Commercial, Quality Assurance teams and suppliers to monitor timber and forest products sourced by the business to ensure they meet the requirements of Kingfisher’s Wood and Paper Policy. She is also responsible for reporting performance to the Kingfisher Board Network, B&Q Board and BM TRADA for Chain of Custody. Julia has been the timber expert in B&Q’s Social Responsibility team for almost 14 years and has first-hand experience of the practicalities and challenges associated with implementing and adhering to a responsible timber sourcing policy.

Tom Hallam

Simon Hart

Tom Hallam is Director, Business Development (Bags) for BillerudKorsnäs, a company which aims to provide sustainable packaging solutions to replace unnecessary plastics. He took up his current position in 2016, after roles at DS Smith, UPM Kymmene and Reckitt Benckiser. With thirteen years in the paper and packaging industries, Tom’s experience encompasses both market and consumer insight, and environment and innovation. In his present role, he works closely with brand owners and retailers on packaging innovations which “challenge conventional packaging for a sustainable future”.

Simon Hart FICFor, FRICS, joined Egger Forestry in 2013 to head up a new forest management division offering the full range of forestry services to private owners in the north of England and Scotland. Simon brings over 30 years’ experience in the forestry world, mainly in commercial conifers. His knowledge includes acquisitions, economic appraisals, management and valuations. He also runs Egger’s forest certification scheme and sits on the UK Woodland Assurance Standard Steering Group. Prior to joining Egger, Simon worked for UPM Tilhill, mainly in forestry investment, but since 2000 he also audited woodlands to the UKWAS standard. He is a Fellow of both the Institute of Chartered Foresters and RICS and is a Registered Valuer.

Elisabeth PiveteauBoley

John Sanderson

Elisabeth Piveteau-Boley is UK & Ireland Sales Director at PiveteauBois, one of France’s leading softwood sawmillers and manufacturers of timber solutions for the construction, landscaping and energy sectors. Elisabeth comes to the family company with 20 years’ experience in sales and business development in the intellectual property and scientific information markets, having worked at industry leaders Thomson Reuters, Lexis Nexis and Macmillan. Her mission is to develop and grow a customer base for its value-added products in the UK and Ireland while raising awareness of France, alongside Austria, as Europe’s joint 4th biggest softwood producer.

John Sanderson is Head of Environment, UK & Ireland for UPMKymmene, a global forest products group with core businesses in printing and specialty papers, label materials, wood products and bio fuels. John has worked exclusively for UPM since graduating from the University of Wales almost thirty years ago with a degree in wood science and forestry. An increased focus on business responsibility from UPM’s stakeholders has led to an unprecedented increase in need for transparency, commitment and performance. John’s current role provides sustainability support and steering to UPM’s paper business, as well as support for to their UK operations and customers.

Davis Leslie

David Leslie is joint Managing Director of James Jones and Sons Ltd, Scotland’s largest independent sawmiller and one of the leading suppliers of British timber in the UK. He is responsible for the Group’s roundwood procurement, co-products and logistics as well as for the company’s Northern sawmills at Mosstodloch, Aboyne and Kirriemuir. In addition to his PEFC role, David is a board member of Confor, a board member of SIRT (The Strategic Integrated Research in Timber), a member of EGTTS (Expert Group on Timber Trade Statistics) and the Institute of Chartered Foresters.

Rob Shaw

Rob Shaw, FICFor, CMIOSH, a graduate of Aberdeen University, has over 30 years’ experience in UK and International Forestry. He has worked in certification since 1998, serving on the UKWAS Steering Group, and developing certification and delivering training in countries such as Latvia, Slovakia, Ireland, China, and Japan. A qualified FM and COC Auditor, he is currently Forestry Technical Manager and H&S Advisor at Soil Association Certification. He recently completed an Executive MBA at Edinburgh University, focussing on Digital Transformation in Forestry Certification. In March 2019, he joined the Technical Committee of the Sustainable Biomass Programme.

Audited accounts for year ending 31st July 2018 DIRECTORS

ACCOUNTS

The directors shown below have held office during the whole of the period from 1 August 2017 to the date of this report. Mr R N Bradshaw Mrs J Griffin Mr R Shaw Mr J A Sanderson Mr D S Leslie

STATEMENT OF DIRECTORS’ RESPONSIBILITIES The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to: • select suitable accounting policies and then apply them consistently; • make judgements and accounting estimates that are reasonable and prudent. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company’s auditors are unaware, and 10

PEFC Annual Report 2019

Other changes in directors holding office are as follows: Mr T Hallam was appointed as a director after 31 July 2018 but prior to the date of this report.

Mr S Cook Mr S Hart Mr A Olsson Ms E Piveteau-Boley

each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

AUDITORS The auditors, MMG Archbold CA, will be proposed for reappointment at the forthcoming Annual General Meeting. This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

Report of the Independent Auditors to the Members of PEFC UK Limited – Opinion We have audited the financial statements of PEFC UK Limited (the ‘company’) for the year ended 31 July 2018 which comprise the Income Statement, Balance Sheet and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: • give a true and fair view of the state of the company’s affairs as at 31 July 2018 and of its deficit for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: • the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or • the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Matters on which we are required to report by exception In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or • the financial statements are not in agreement with the accounting records and returns; or • certain disclosures of directors’ remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit; or

and take advantage of the small companies’ exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors As explained more fully in the Statement of Directors’ Responsibilities, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. Derek Grant MA (Hons) CA (Senior Statutory Auditor) for and on behalf of MMG Archbold Statutory Auditor Chapelshade House 78-84 Bell Street Dundee DD1 1RQ 16 April 2019

• the directors were not entitled to prepare the financial statements in accordance with the small companies regime 11

Income and Expenditure

ACCOUNTS

PEFC UK income and expenditure account 2018 2017 for the year ended 31st July 2018

£ £ Turnover 411,658 522,115

Administrative expenses 460,459 471,831 (48,801) 50,284 Other operating income 535 –

Operating Surplus Interest receivable and similar income

(Defecit) / Surplus before taxation Tax on (defecit) / surplus

(Defecit) / Surplus for the Financial Year

48,266 50,284 51

(48,215) 50,364 (9,595)

9,883

(38,620) 40,481

The notes form part of these financial statements

Note regarding income levels The income levels for the year are lower than those of the prior year due to deferred income from a Certification Body being miscalculated in the prior year. This resulted in the income levels for the previous financial year being £50,000 higher than they ought to have been. This income should have been shown in the 2017-18 financial year which would have increased the turnover to £461,658 and reduced last year’s income to £472,115 as shown on the statement above.

Breakdown of PEFC UK Ltd expenditure for the year ended 31st July 2018 28%

PEFC Council Fees

25%

Marketing Communications and Consultancy

32%

Office rent, salaries and IT

Travel, subsistence and sundry expenses

Meetings including AGM and GA

Subscriptions and Sponsorship

4% Other 12

PEFC Annual Report 2019

Turnover: £411,658 for 31/07/2018

PAUSE FOR THOUGHT

PEFC Pause for Thought Head Above Water As part of the annual London Design Festival 2018, designjunction created a number of thought provoking outdoor installations on the Riverside Walkway, located in the cultural hub of London’s South Bank. One stunning landmark was the Head Above Water sculpture by British designer Steuart Padwick which was made from PEFC-certified cross-laminated timber (CLT). More than 20 companies worked on the project which PEFC UK was proud to sponsor. The structure weighed 10 tonnes, used 3,000 screws, 48 metres of LEDs and took 15 weeks from conception to completion. Steuart Padwick made the dramatic change to the London skyline in support of mental health. With its panoramic views of St Paul’s Cathedral and the iconic city skyline, Head Above Water was a 9 metre high sculpture on Queen’s Stone jetty on London’s South Bank. At night the Head Above Water was lit so people could engage with its changing colours to reflect how they are feeling through a designated Twitter feed in real time. The ‘Head’ was deliberately gender, ethnicity and age neutral and stood as a symbol of ‘hope, bravery, compassion, positivity and change’, for those who have come through or are still confronting mental health issues and the people who support them. Steuart Padwick first sculpted a head in clay and then developed the concept into timber. To realise the structure he

worked with structural engineering experts, Ramboll and CLT providers Stora Enso. The piece of public art supported the mental health campaign Time to Change, (run by charities Mind and Rethink Mental Illness) who used this dynamic platform to engage and stimulate the discussion to eradicate mental health-related stigma and discrimination. Steuart Padwick is known for his warm, witty and sculptural designs. He is a designer of furniture, lighting and products for domestic and contract spaces with the aim of producing pieces that both fit the needs of people’s lives and enhance their modern environments. Head Above water is estimated to have had more than 28,000 visitors over five days adding to the hundreds of thousands of daily visitors to the area. PEFC was delighted to support such an imaginative project. Head Above Water highlighted the importance of recognising mental health issues while demonstrating the versatility of CLT as a sustainable construction material. 13

PEFC UK LIMITED

PEFC INTERNATIONAL

Sheffield Technology Parks Cooper Buildings Arundel Street Sheffield S1 2NS

ICC Building C1 Route de Pré-Bois 20 1215 Geneva 15 Switzerland

t +44 (0) 114 307 2334 e info@pefc.co.uk w www.pefc.co.uk

t +41 22 799 45 40 e info@pefc.org w www.pefc.org

Front cover photos: Matt Khawam, Royal Forestry Society, Rogers Stirk Harbour + Partners, Tracey Reeve, iStock. Inside front cover: iStock. 1: Matt Khawam, PEFC International. 2: Andrew Allcock Photography, Royal Forestry Society. 3: Surface Design Show, The Guthrie Project – Tzannes Architects, iStock. 4: Fine Décor. 5: Rogers Stirk Harbour + Partners, Southsea Deckchairs. 8: Matt Khawam. 13: Getty Images/Stora Enso. Back cover photos: Radovan Uhler/ Freeimages, Getty Images/Stora Enso, Matt Khawam, The Guthrie Project – Tzannes Architects, iStock

PEFC/16-01-01