PEFC UK ANNUAL REPORT
CONTENTS 01 CHAIRMAN’S REPORT Chairman Hugh Miller reflects on PEFC’s progress over the past year
02 MARKET OUTREACH Snapshot of PEFC UK’s market outreach activities to promote awareness of and drive demand for certified products
05 GROWING DEMAND FOR CERTIFIED PRODUCTS The key messages from PEFC’s first global consumer survey
06 PEFC INTERNATIONAL’S ACTIVITIES An overview of PEFC International activities in 2014
08 BOARD OF DIRECTORS PEFC UK Board of Directors providing industry expertise from a broad range of sectors
10 ACCOUNTS PEFC UK financial information for 2013-14
13 CERTIFICATION FOR SMALL 04 ENGAGING CONSUMERS ON 07 DEMAND FOR CERTIFICATION WOODLAND OWNERS FOREST ISSUES A cost effective solution to Key forest and Chain of Custody A report from PEFC’s 2014 Stakeholder Dialogue
certification facts and figures
enable small woodland owners to participate in certification
PEFC UK LIMITED
BOARD OF DIRECTORS
Programme for the Endorsement of Forest Certification
Hugh Miller (Chairman) Ross Bradshaw Pat Burke Steve Cook Julia Griffin David Leslie John Sanderson Rob Shaw Mark Weatherbed
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 page 8 for details
CHAIRMAN’S REPORT
01
HUGH MILLER OBE, CHAIRMAN, PEFC UK Welcome to PEFC UK’s 2015 Annual Report. Over the past year, the PEFC team has continued to work diligently to raise the organisation’s profile and grow market demand for certified products to ensure that we continue to add value, both to PEFC-certified products and the companies that trade in them.
Today, two thirds of all certified forests globally are certified to
strong organisation to one that now has national members from
PEFC. More than half of the entire world’s traded sustainable
38 countries. Moreover, PEFC is making encouraging progress
forest products are sourced from forests certified to PEFC’s
in the areas where forest certification has been slow to take
exacting standards. This makes PEFC the world’s leading forest
root. In the past two years, PEFC has welcomed Japan into
certification system and the largest source of certified forest
membership and has endorsed national certification systems in
products.
China and Indonesia.
PEFC UK recognises the vital role that both consumers and
One of the highlights of 2014 was the Food from the Forest
the companies that supply them play in driving demand for
event that PEFC co-hosted with AB Packaging Group to mark
certified forest products and so market outreach continues to
our first appearance at the Packaging Innovations event. The
be central to PEFC UK’s activities. We are therefore greatly
evening sought to highlight the diverse range of goods and
encouraged that PEFC brand recognition continues to grow
services that forests provide us with and the importance of
with more and more companies across the UK using the PEFC
preserving them for future generations.
logo on product to provide their customers with assurances of responsible sourcing.
As ever thanks are due to the many individuals and organisations that enable PEFC to achieve as much as it does in the UK. I would like to thank the Finnish Forest Foundation for their continuing financial support to our marketing and communications programme. Thanks are also due to Heritage Envelopes for helping PEFC keep its stationery bill in check and to AB Packaging Group for sponsoring the Food from the Forest event. Sadly, this is my final report as I will be retiring from the PEFC UK Board at this year’s Annual General Meeting. I would like to record my appreciation to my fellow Board members for Some of the many products across the UK using the PEFC logo
the time they have generously devoted to our affairs over the past three years of my tenure as Chairman. I would also like to thank the PEFC UK team of Alun Watkins, Tracey Reeve and
November saw the UK team head across the Channel to
Hilary Khawam who continue to work so diligently to take the
participate in PEFC’s second forest certification week in Paris.
organisation forward. I know that between them, the Board and
In his keynote conference speech, PEFC Chairman Bill Street
Secretariat will do their utmost to ensure that the organisation
noted that in less than two decades, PEFC has gone from an 11
goes from strength to strength in the future.
MARKET OUTREACH
02
In order to increase recognition of the PEFC brand and provide added value to more than 1,000 UK companies who have invested in PEFC Chain of Custody, market outreach remains the PEFC team’s top priority. This year has been a busy one for the PEFC team and the following provides a snapshot of our marketing and communications activities over the past twelve months.
TIMBER AND CONSTRUCTION PEFC UK Co-sponsors Wood Awards 2014 The Wood Awards recognise, encourage and promote outstanding design, craftsmanship and installation using wood throughout the UK and was sponsored for the first time by PEFC UK in partnership with the Malaysian Timber Council. The Arnold Laver Gold Award was presented to those responsible for the Ditchling Museum of Art and Craft in East Sussex in front of an audience of more than 200 leading industry and architectural figures. Over 70 of the 2014 entries specified PEFC-certified wood as their choice of material across a diverse and cosmopolitan
Alfriston School Swimming Pool
FORESTRY Lockerbie Field Trip Last summer James Jones & Sons – Scotland’s largest independent sawmiller and Scottish Woodlands – the UK’s leading independent Forest Management Company – came together with PEFC UK to host a field trip to the Scottish borders. The visit aimed to demonstrate sustainable forest management in action to stakeholders from a broad range of sectors including public sector, forestry, timber trading, construction, retail, paper and packaging.
range of products and projects, which also saw a marked increase in the use of cross laminated timber (CLT) in the building categories. Other winners included: The Sam Wanamaker Playhouse at Shakespeare’s Globe Theatre in London for the Commercial & Public Access Award and the Alfriston School Swimming Pool in Beaconsfield for the Structural Award. 2014 Annual Stakeholder Day The third annual PEFC UK Stakeholder Day took place in London in July. The event highlighted the progress of certification in Asia and opportunities for the UK market. Over 100 delegates from a cross section of industry sectors heard from speakers which included Professor Lu Wenming, the Deputy Secretary General of the Chinese Forest Certification Council CFCC) and Sheam Satkuru-Granzella who heads up The Malaysian Professor Lu Wenming Timber Council in Europe.
03 PAPER AND PACKAGING
NEW PUBLICATIONS FROM PEFC
Packaging Innovations 2014 In September, PEFC UK exhibited for the first time at Packaging Innovations. Participating in this show was part of a PEFC-wide packaging outreach campaign which aims to promote the assurances that packaging, made from PEFC-certified fibre and carrying the PEFC logo, can provide. Alun Watkins, who heads up PEFC in the UK, presented at one of the show’s Learn Shop seminars. We were so pleased with the reception we received that we have already booked our space for 2015.
Several new titles have been added to the PEFC library over the past twelve months which are available free of charge. The first PEFC: Sustainability for Packaging Professionals sets out the market drivers for responsiblysourced packaging. Alun Watkins presents at a Learn Shop seminar
Food from the Forest Reception Lingonberries from Finland, maple syrup from Canada, venison from the Scottish Highlands, Iberico ham from Spain along with forest honey, porcini mushrooms and black truffles from the Umbria region of Italy, were just a few of the delicacies on the menu at a drinks reception, designed to showcase food from the world’s forests. Guest speaker at the event, which was co-hosted by PEFC UK and AB Group Packaging and timed to coincide with the Packaging Innovations Show, was TV chef Valentine Warner. Valentine is a food writer and cook with a passion for nature, the seasons and working outdoors and therefore a keen advocate for forests as a source of food.
The second Flooring and PEFC-Certified Timber sets out the drivers for certified flooring.
PEFC: SUSTAINABILITY FOR PACKAGING PROFESSIONALS
PEFC/01-00-01
FLOORING AND PEFC-CERTIFIED TIMBER
PEFC CERTIFIED TIMBER Promoting Sustainable Construction through Certified Timber was published in November 2014. This four page brochure features case studies of flagship building projects which have used PEFC-certified timber. PEFC - PROMOTING SUSTAINABLE CONSTRUCTION THROUGH
Architects, designers and those specifying building materials across UK construction projects are regularly turning to timber as a central part of the building structure, for interior design elements and as a way to deliver the next generation of energy efficient and sustainable buildings. Timber is fully renewable and has the lowest embodied carbon of any commercially available building material. When specifying certified timber you can be confident that the material you are choosing is a simple and straightforward way to achieve a high-performance sustainable building fabric with fantastic additional thermal and acoustic performance.
Ickburgh School, London
The evening sought to highlight the huge variety of goods and services that forests provide, such as fibre for paper and packaging, timber, fuel, employment, leisure opportunities, habitats for animals, insects and birds, food and the importance of preserving them for future generations.
NEW LOOK FOR PEFC UK WEBSITE The new PEFC UK website now has a fresh look and a more userfriendly and contemporary feel. It offers a new and improved search tool for certified companies, an online logo generator and accessible social media channels including Twitter, Flickr and YouTube. The improved menu and simple layout are designed to make it easier for users to navigate.
Finally, PEFC PEFC CHAIN OF CUSTODY Chain of CERTIFICATION SOURCING RESPONSIBLY Custody Certification: Sourcing Responsibly The Business Benefits of Certification sets out the business benefits of certification. PEFC/16-01-01
These publications can be downloaded from the PEFC UK website.
ENGAGING CONSUMERS ON FOREST ISSUES
04
The key message from PEFC’s 5th International Stakeholder Conference was that certification labels inspire consumer trust. The event, which was held in Paris last November, brought together more than 150 stakeholders from around the world. Co-hosted by PEFC International and PEFC France, the Stakeholder Dialogue marked the final day of PEFC’s 2014 Forest Certification Week. The conference entitled Addressing Deforestation: Joining
behaviour and market trends for sustainable forest products
Forces to Stimulate Demand for Sustainable Forest
in Asia, Western Europe and North America. The speakers
Products provided an opportunity for participants to hear a range
referenced case studies which demonstrated how NGOs, supply
of expert opinion and gather stakeholder views on opportunities
chain participants and governments are engaging consumers on
and solutions where forest certification and PEFC might have a
sustainability and shaping markets for sustainable products. In
positive impact.
addition, newly-created public-private partnerships and platforms are increasingly seeking to remove commodities directly linked to
CONSUMERS IN THE SPOTLIGHT
deforestation from the supply chain.
During the morning session, participants heard the latest evidence on growing consumer awareness and concern for global
ASIA AND AFRICA A PRIORITY
deforestation. Consumers were clearly interested in playing their
The day closed with a series of breakout groups. Participants were
part in addressing deforestation. They saw buying independently
asked to work together to identify opportunities for action and
verified wood and paper-based products originating from responsibly
collaboration to scale up forest certification to ensure sustainable
managed forests, as a positive action they could take. The session
supply chains and brands. As a result of this exercise, PEFC was
also included presentations which sought to understand consumers
able to confirm the priority it currently accords forest certification
behaviour, perceptions and expectations for sustainable products by
developments in Asia – especially China, India, Indonesia and
looking at research from the UK, France and the USA.
Vietnam.
Innovative solutions for engaging consumers was the second key
However, it also reminded PEFC that it had more work to do in order
topic addressed at the conference. Presentations ranged from
to grow demand for forest certification in Africa, particularly leveraging
consumer products-driven deforestation to consumer buying
existing progress in Cameroon, the Republic of Congo and Gabon.
Hungary Romania Macedonia Turkey Japan Republic of Korea Philippines
Mexico
PEFC Members Countries developing a system for eventual PEFC endorsement (including some PEFC members)
Ghana Cameroon Central African Republic Congo Democratic Republic of the Congo South Africa
India Nepal Myanmar Thailand Vietnam
New Zealand
GROWING DEMAND FOR CERTIFIED PRODUCTS
05
Demand for more environmental information on products to enable consumers and those with responsibility for purchasing to make informed choices is on the rise. Consumers are now far better informed and more knowledgeable about their purchasing decisions and how they affect the environment. Companies are therefore keen to demonstrate their commitment to responsible
My shopping choices of opting for a labeled product can make a positive difference to the world’s forests
sourcing by developing
I strongly disagree 4% I disagree 6%
forest products procurement policies. Corporate social responsibility
I strongly agree 26%
reporting is now an everyday management process while financial institutions are recognising that shareholder
Question: To what extent would you agree with the following statement: My shopping choices of opting for a labeled product can make a positive difference to the world’s forests?
I neither agree nor disagree 30%
value is protected through greener procurement policies. Over the past year, PEFC
Base: 1,000 men and women aged 16+ years per country.
I agree 34%
PEFC/GfK Global Consumer Survey – October 2014
has been working hard with the packaging community to explain the importance to consumers, brand owners and
Consumers trust certification: Using a certification
agencies, of sourcing packaging materials from PEFC-certified
label is the most trusted means of communicating a
sources.
product’s sustainable credentials to consumers - more than country of origin, brand or recommendations by
PEFC’s first global consumer survey clearly demonstrated that
friends or media
there is growing demand for more environmental information to be displayed on packaging to help consumers make
Consumers value certification: Almost one-third of all
informed choices. 54% of consumers said that they trusted
respondents said that they actively look for a certification
environmental labels that are displayed on packaging. Retailers,
label on forest products.
brand owners and packaging suppliers can help meet these customer demands by sourcing materials from certified
The results of the survey showed that certification labels, such
sources and using the PEFC label.
as PEFC’s, are the most trusted means of providing confidence to consumers that wood-based products are responsibly-
The survey also showed that:
sourced. So the key message to certified companies is that using the PEFC label can be beneficial as customers now
Consumers want companies to label: Globally, more
want and expect it. By doing so, you are not only adding brand
than 80% of respondents wanted to see companies
value to your products, but also helping improve the overall
sourcing certified material from sustainably managed
reputation of wood and wood-based products from sustainably
forests to use a certification label on product
managed sources.
PEFC INTERNATIONAL
06
BEN GUNNEBERG, SECRETARY GENERAL, PEFC COUNCIL PEFC’s work and progress has excelled in many different areas in 2014. An important indicator as to how far we’ve come in promoting sustainable forest management was the outcome of the first PEFC/ GfK Global Consumer Survey, revealing the extent to which consumers trust the PEFC label and their desire to see it used on products. The results demonstrate the huge potential that supply chains and retailers have in giving the sustainable forest management movement a massive boost, simply by using labels more.
PEFC undertook and supported a range of initiatives this year,
enable the certification and the responsible management of
advancing the organisation along the journey towards a real
an unprecedented area of forests: thereby also supporting the
‘tipping point’ for certified sustainable forest management
sustainable livelihoods of millions worldwide who depend on
and the various products forests provide. We were the first
forests. We are also promoting sustainable forest management
certification system to sign the New York Declaration on
in approximately 20 other countries from Cameroon, Gabon and
Forests, and provided valuable input into this joint initiative
the Republic of Congo, to India, Thailand and Vietnam. Finally,
by governments and business, with the ambitious goal of
the number of companies committing to using PEFC-certified
halving deforestation by 2020 and ending it by 2030. We also
material continues to grow. This trend looks to continue under
contributed to an important banking sector initiative – the Soft
the Consumer Goods Forum’s guidelines which aim to help
Commodities Compact – designed to ensure responsible trade
achieve zero net deforestation across supply chains by 2020.
in commodities such as timber, palm oil and soy. Our ongoing work is helping re-shape the global perception of sustainable
As we continue connecting with consumers, we have taken
forests: from international organisations to individual consumers.
forest certification beyond our traditional sectors, to woody biofuels, food and even textiles. These non-wood forest
Our collaborative approach is fast making PEFC the global
products equally use materials from forests and can help us
‘partner of choice’ for those engaged in sustainable forest
to reach consumers from a different angle, whilst helping
management, including family and small to large-scale forest
to increase the relevancy of PEFC certification to locally-
owners, civil society, multi-nationals, public-private initiatives
dependent forest communities.
and governments. One of the latest organisations to collaborate with PEFC is the Tropical Forest Alliance 2020, which seeks
Thank you for your personal contribution in advancing our
to reduce tropical deforestation associated with the sourcing of
urgent cause, big or small, be it in the forest or as a retailer,
paper and pulp, palm oil, soy and beef.
manufacturer, consumer, donor, campaigner or professional.
We also continue to make progress in sustainable forest management certification. By the end of 2014, over 260 million hectares of forests were PEFC-certified and over 16,000 companies now participate in PEFC Chain of Custody certification. In 2014, PEFC endorsement was awarded to the Argentine Forest Certification System, the China Forest Certification Scheme, and the Indonesian Forestry Certification Co-operation – now all the major timber-producing countries have PEFCendorsed national systems. We have laid the foundations to
Japan’s SGEC scheme joins PEFC Photo © PEFC Asia Promotions
GROWTH OF FORESTRY AND COC
07
UK CHAIN OF CUSTODY AND PEFC LOGO LICENSES 1,500 chain of custody numbers 1,200 logo licenses 900
600
300
0 2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
CONTINENTAL CERTIFIED FOREST AREA A little over 9% of the global forest area is currently certified, the majority of it to PEFC
Total: 263m ha
endorsed schemes.
Asia: 4,661,816 ha
Europe: 89,333,190 ha
58%
2% 34%
GLOBAL GROWTH IN PEFC-CERTIFIED FOREST AREA
North America: 154,254,058 ha
4%
Oceania: 10,398,358 ha
2%
Central & South America: 4,557,809 ha
GLOBAL GROWTH IN CHAIN OF CUSTODY NUMBERS
300
12,000 245.1
250
229.6 217.7 223.5
253.1
263.2 10,000
237.4
9,996
10,591
8,797
194.4 187.7 193.8
200
9,529 7,688
8,000
150
6,000
100
4,000
6,166
50
0
32.4
50.9 55.3 41.1 46.1
0.0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YEAR
Number of CoC certificates
Certified forest area (m. ha)
4,420 3,545 1,905
2,000
0
2,362
2,901
1,100 59
463
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YEAR
BOARD OF DIRECTORS
08
PEFC is a membership association which represents a wide range of stakeholder interests. All PEFC-certified companies in the UK automatically become members of the organisation. Additionally, PEFC also counts organisations from a broad range of sectors, which share PEFC’s commitment to sustainable forest management, amongst its members. These include the Country Land & Business Association, Timber Trade Federation, the Paper and Board Association, Confederation of Paper Industries, Wood Panel Industries Federation and the Structural Timber Association. The forestry sector is represented by CONFOR, the Commonwealth Forestry Association and the United Kingdom Woodland Assurance Standard (UKWAS). Since its inception, PEFC UK has recognised the importance of having key stakeholder groups represented on its Governing Board. We are fortunate enough to be able to call upon the expertise of senior figures from a broad range of industry sectors involved in both forestry and those trading in forest products.
HUGH MILLER
STEVE COOK
JOHN SANDERSON
Hugh Miller OBE graduated in forestry from
Steve Cook is a Principal Sustainable
John Sanderson is Director, Head of
the University of Aberdeen in 1964. For
Development Manager for Willmott Dixon’s
Environment, UK & Ireland for UPM-Kymmene,
the next two decades he led research into
in-house sustainability consultancy Re-
a global forest products group with core
forest biogeochemistry at the Macaulay
Thinking. His role involves providing technical
businesses in printing papers, speciality
Institute for Soil Research, during which time
and practical support on materials, carbon,
papers, label materials and wood products.
he published extensively and in 1981 was
waste and sustainable procurement to all
John has worked exclusively for UPM since
awarded the Scientific Achievement Award
divisions within the Willmott Dixon Group.
graduating from the University of Wales over
of the International Union of Forest Research
Steve, who has twenty four years’ experience
twenty years ago with a degree in wood
Organizations. In 1984 he was appointed
in the construction industry, also chairs the
science and forestry. Increasing environmental
Professor and Head of the Department of
UK Contractors’ Group (UKCG) Materials Task
focus and concern from UPM’s customers has
Forestry in the University of Aberdeen, retiring
Group which, through engagement with the
led to an unprecedented increase in demand
in 2004. He is a Fellow of the Institute of
construction industry, is helping its members
for environmental education, commitment
Chartered Foresters and was President from
develop organisational policy to improve the
and performance from suppliers. John’s
1994 to 1996. In 2007, the Institute awarded
procurement of materials. He is also a Scheme
current role provides environmental support
him its Medal. He was made a Fellow of the
Council member of the Eco-Reinforcement,
and steering to UPM’s UK activities, including
Royal Society of Edinburgh in 1985.
responsible sourcing scheme and Co-chair of
paper production, paper sales, forestry and
Grown in Britain.
waste paper procurement.
09 ROSS BRADSHAW
JULIA GRIFFIN
ROB SHAW
Ross Bradshaw has worked in the paper
Julia Griffin is a member of B&Q’s Social
Rob Shaw, FICFor, CMIOSH, graduated from
manufacturing industry for over twenty five
Responsibility team and her area of expertise
Aberdeen University in 1988 and joined
years. He began his career in manufacturing
is timber and peat. B&Q is a UK home
Scottish Woodlands Ltd. In 1998 he helped
by training as a paper maker in Aberdeen.
improvement retailer, owned by Kingfisher
achieve FSC Resource and Group Scheme
Working in heavy industry while living in a
PLC. Julia works with the Commercial,
Management status for the company, a first
rural setting, led to an early interest in the
Quality Assurance teams and suppliers to
within the UK. Between 1999 and 2002
effects of the paper making industry on the
monitor timber and forest products sourced
he carried out international certification
environment and the positive role it plays. He
by the business to ensure they meet the
consultancy work in Latvia, and Slovakia.
has worked with a number of industry groups
requirements of B&Q’s Timber & Paper Policy
including the Paper and Board Association
& Buying Standard. She is also responsible
Currently running his own consultancy
and Stationers’ Company, the City of London
for reporting performance to the B&Q Board,
business, Rob retains an active interest in all
livery company for the Communications and
Kingfisher Board Network and BM TRADA for
UK forest certification issues. He is the UK
Content industries, where he is a Liveryman.
Chain of Custody. Julia has been the timber
Coordinator for CANZUS - an international
Currently, Ross runs his own paper agency
expert in B&Q’s Social Responsibility team for
owners and producers group which promotes
business representing a number of speciality
ten years and has first-hand experience of the
practical solutions for Certification issues
paper mills from the USA and Europe, offering
practicalities and challenges associated with
globally.
bespoke publishing and packaging papers. He
implementing and adhering to a responsible
is one of PEFC UK’s longest serving directors,
timber sourcing policy.
joining the Board in 2007.
PAT BURKE
DAVID LESLIE
MARK WEATHERBED
Pat Burke works at Prowood as Business
David Leslie is General Manager, Harvesting
Mark Weatherbed joined the PEFC Board in
Development Manager. Prowood Limited is
& Operations for James Jones and Sons Ltd,
January 2008, representing the UK paper
an independent, privately owned importer,
Scotland’s largest independent sawmiller
and print industry sectors. He has held senior
sawmiller and distributor of high quality
and one of the leading suppliers of British
procurement positions in a number of global
Softwoods and Hardwoods. Pat’s timber trade
timber in the UK. He is responsible for the
businesses from the publishing, outsourcing,
experience is eclectic, having held previous
Group’s roundwood procurement, sawmill
consultative and packaging industry sectors,
senior positions encompassing all timber
co-products and haulage. In addition to his
as head of raw materials sourcing. Mark has
product sectors. Pat has chaired the UK
PEFC role, David is a member of the Grampian
been a key instigator and driver of sustainable
Timber Trade Federation’s National Softwood
Forestry Forum, a board member of SIRT (The
sourcing programmes in many prominent
Division and also the North East Timber Trade
Strategic Integrated Research in Timber), a
private and public sector contracts. He
Association. He has also held positions within
member of both the Institute of Chartered
currently serves as Procurement Director,
Forests Forever and various TTF commodity
Foresters and the steering group of the Forest
Head of Raw Materials, Europe for DS Smith.
committees as well as serving on the Boards of
Industry Safety Accord (FISA). David was
the British Woodworking Federation, Proskills
appointed to the PEFC UK Board in January
and the Wood Industry Training Board.
2012.
AUDITED ACCOUNTS
10
DIRECTORS The directors shown below have held office during the whole of the period from 1 August 2013 to the date of this report. H G Miller
M R Weatherbed
R Shaw
D S Leslie
R N Bradshaw
Mrs J Griffin
J A Sanderson
P J Burke
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
S Cook
The directors are responsible for preparing the Report of the
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
Directors and the financial statements in accordance with
So far as the directors are aware, there is no relevant audit
applicable law and regulations.
information (as defined by Section 418 of the Companies Act 2006) of which the company’s auditors are unaware, and each
Company law requires the directors to prepare financial
director has taken all the steps that he or she ought to have
statements for each financial year. Under that law the directors
taken as a director in order to make himself or herself aware
have elected to prepare the financial statements in accordance
of any relevant audit information and to establish that the
with United Kingdom Generally Accepted Accounting Practice
company’s auditors are aware of that information.
(United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial
AUDITORS
statements unless they are satisfied that they give a true and
The auditors, MMG Archbold CA, will be proposed for re-
fair view of the state of affairs of the company and of the
appointment at the forthcoming PEFC UK Ltd Annual General
surplus or deficit of the company for that period. In preparing
Meeting. This report has been prepared in accordance with
these financial statements, the directors are required to:
the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
select suitable accounting policies and then apply them consistently; make judgements and accounting estimates that are
ON BEHALF OF THE BOARD: H G Miller – Chairman
reasonable and prudent; basis unless it is inappropriate to presume that the
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF PEFC UK LIMITED
company will continue in business.
We have audited the financial statements of PEFC UK Limited
prepare the financial statements on the going concern
for the year ended 31 July 2014. The financial reporting The directors are responsible for keeping adequate accounting
framework that has been applied in their preparation is
records that are sufficient to show and explain the company’s
applicable law and the Financial Reporting Standard for Smaller
transactions and disclose with reasonable accuracy at any time
Entities (effective April 2008) (United Kingdom Generally
the financial position of the company and enable them to ensure
Accepted Accounting Practice applicable to Smaller Entities).
that the financial statements comply with the Companies Act 2006.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies
They are also responsible for safeguarding the assets of
Act 2006. Our audit work has been undertaken so that we
the company and hence for taking reasonable steps for the
might state to the company’s members those matters we are
prevention and detection of fraud and other irregularities.
required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
FOR YEAR ENDING 31ST JULY 2014
11
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS
OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006
As explained more fully in the Statement of Directors’
In our opinion the information given in the Report of the
Responsibilities, the directors are responsible for the preparation
Directors for the financial year for which the financial
of the financial statements and for being satisfied that they give
statements are prepared is consistent with the financial
a true and fair view.
statements.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
International Standards on Auditing (UK and Ireland). Those
We have nothing to report in respect of the following matters
standards require us to comply with the Auditing Practices
where the Companies Act 2006 requires us to report to you if,
Board’s (APB’s) Ethical Standards for Auditors, including
in our opinion:
“APB Ethical Standard - Provisions Available for Small Entities (Revised)”, in the circumstances set out in note ten to the financial statements.
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company’s circumstances and
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 the directors were not entitled to prepare the financial
have been consistently applied and adequately disclosed; the
statements in accordance with the small companies regime
reasonableness of significant accounting estimates made
and take advantage of the small companies’ exemption in
by the directors; and the overall presentation of the financial
preparing the Report of the Directors.
statements. In addition, we read all the financial and non-financial
Derek Grant MA (Hons) CA (Senior Statutory Auditor)
information in the Report of the Directors to identify material
for and on behalf of:
inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or
MMG Archbold
inconsistencies we consider the implications for our report.
Statutory Auditor Chapelshade House
OPINION ON FINANCIAL STATEMENTS
78-84 Bell Street
In our opinion the financial statements:
Dundee DD1 1RQ United Kingdom
give a true and fair view of the state of the company’s affairs as at 31 July 2014 and of its surplus for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities; and have been prepared in accordance with the requirements of the Companies Act 2006.
8th April 2015
INCOME AND EXPENDITURE
12
PEFC UK INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31ST JULY 2014
2014
2013
£ £
Turnover
489,513
484,031
Administrative expenses
445,446
450,902
44,067
33,129
-
15,498
44,067
48,627
9
24
48,651
Surplus/(deficit) on ordinary activities before taxation
44,076
48,651
Tax on surplus/(deficit)on ordinary activities
8,846
7,133
Surplus/(deficit) for the Financial Year
35,230
41,518
Other operating income Operating Surplus/(deficit) Interest receivable and similar income
BREAKDOWN OF PEFC UK LTD EXPENDITURE FOR THE YEAR ENDED 31ST JULY 2014 Projects: 3%
27%
Subscriptions and sponsorship: 4%
9% 4%
Turnover £490,000
3% 7%
25%
Meetings, including board, AGM and GA: 7% Travel, subsistence and sundry expenses: 9% Office rent, salaries, admin and IT: 25% PEFC council fees: 25%
25%
Marketing, communications and consultancy: 27%
CERTIFICATION FOR SMALL WOODLAND OWNERS
13
More than one million hectares of UK forests have been certified to PEFC’s sustainable forest management standard since 2010. The certification covers all the Forestry Commission forests in England, Scotland and Wales and some 500 privately owned forest estates, including a number in Northern Ireland, managed through the Scottish Woodlands and UPM Tilhill forest group certification schemes. PEFC endorses the UK Woodland Assurance Standard as the basis for certification in the UK.
Such a solution is now available. PEFC UK, in conjunction with Dutch consultants Evan Buytendijk BV, has developed an online forest certification system which aims to provide: a cost-effective solution designed to assist small and mediumsized private forest owners to become certified an aid to group certification managers to enable them to function more efficiently and reduce costs a user-friendly means of assessing the compatibility of existing forest management plans with those required by UKWAS more consistent audits via online checklists. While PEFC forest certification has been established in the UK for five years, to date there has been very little interest from small
We hope that this will result in an increase in the UK’s certified
to medium-sized woodland owners. Our research tells us that
forest area, thereby providing a greater supply of certified material
they currently view forest certification as being both onerous and
to the UK primary processing sector and its customers.
expensive. As a result, the growth of the UK certified forest area has stalled. This is having a growing impact on the UK primary processing sector which needs an increasing supply of certified timber to meet customer demand. It has long been recognised that a cost-effective certification solution was required to enable small to medium-sized woodland owners to participate in certification. Certified materials are increasingly requested by a growing number of forest product users including retailers, the construction sector and energy suppliers.
PEFC COLLABORATION FUND This project was part funded by the PEFC Collaboration Fund. The Fund seeks to support efforts to advance sustainable forest management and forest certification around the world by members and partner organisations. Through its competitive small grants programme, PEFC encourages locally relevant advancements in the sustainable management of forests. PEFC has awarded almost 450,000 Swiss Francs to twenty projects through the Collaboration Fund since 2011.
PEFC UK
PEFC COUNCIL
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
World Trade Centre 1 10 Route de l’Aeroport Geneva 1215 Switzerland t +41 22 799 4540 e info@pefc.org w www.pefc.org PEFC/16-01-01