Metsä Group to Leave Regional PEFC System and Create Its Own – PULPAPERnews.com

Report on Metsä Group’s New Forest Certification Initiative and its Alignment with Sustainable Development Goals

Introduction

Metsä Group has announced a strategic initiative to establish an internal PEFC certification group, scheduled for launch next year. This move aims to enhance the governance of sustainable forest management practices among its members and contract customers. The initiative directly addresses key objectives within the United Nations Sustainable Development Goals (SDGs), particularly those concerning responsible production, terrestrial ecosystems, and economic growth.

Advancing Sustainable Forest Management in Line with SDG 15

Strengthening Compliance and Biodiversity Protection

The primary objective of the new certification group is to ensure rigorous adherence to sustainability criteria, thereby contributing to the conservation and sustainable use of terrestrial ecosystems as outlined in SDG 15 (Life on Land). Metsä Group identified compliance gaps within the existing regional certification framework as a key driver for this change.

• Direct Oversight: By managing the certification group internally, the company aims to exercise greater control over compliance, ensuring that all certified forest holdings meet PEFC standards for sustainable management.
• Enhanced Biodiversity Measures: The company continues to offer its “plus model,” which includes measures such as increasing the number of retention trees and high stumps. These actions directly support the targets of SDG 15 by promoting biodiversity and protecting forest habitats.
• Dual Certification: The option for forest owners to also join the FSC certification scheme provides a multi-faceted approach to verifying sustainable practices, catering to diverse market and ecological requirements.

Fostering Responsible Consumption and Production (SDG 12)

Meeting Market Demands for Sustainable Supply Chains

The initiative is a direct response to increasing international market demand for verifiably sustainable wood products, a core principle of SDG 12 (Responsible Consumption and Production). By creating a more robust certification system, Metsä Group seeks to strengthen the transparency and integrity of its supply chain.

1. Market Access: Certification is critical for accessing international markets where consumers and industrial buyers mandate proof of sustainable sourcing.
2. Transparent Governance: The new group structure is intended to make compliance more transparent for forest owners and more robust for end-users, reinforcing the credibility of the sustainable production cycle.
3. Economic Incentives: Financial premiums for certified wood create a direct economic incentive for forest owners to adopt sustainable practices, aligning production patterns with global sustainability targets.

Economic Implications and Stakeholder Concerns (SDG 8)

Balancing Sustainability with Equitable Economic Growth

While the initiative aims to advance environmental goals, it has prompted discussion regarding its economic impact on forest owners and the timber market, touching upon principles of SDG 8 (Decent Work and Economic Growth).

Stakeholder Response

The Finnish farmers’ union, MTK, acknowledged the importance of stricter certification but raised concerns about market competition.

• Fair Competition: MTK emphasized that forest owners must retain the freedom to select a buyer through a competitive process to ensure fair economic returns, a key component of sustainable economic growth for primary producers.
• Market Concentration: The move has highlighted concerns about market dynamics in a sector dominated by a few major buyers, where certification can significantly influence price and market access.

Economic Viability for Forest Owners

The financial structure of the certification system provides direct economic benefits that support the livelihoods of forest owners.

1. Price Premiums: Certified wood commands a higher price, with FSC-certified timber receiving a larger premium than PEFC-certified wood.
2. Additional Bonuses: The “plus model” offers further financial incentives for exceeding standard environmental requirements.

In conclusion, Metsä Group’s new certification model represents a significant corporate effort to internalize and strengthen sustainable forest management in alignment with global SDGs. The initiative underscores the critical balance between enhancing environmental stewardship (SDG 15, SDG 12) and ensuring a competitive, equitable market that supports the economic well-being of forest owners (SDG 8).

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 12: Responsible Consumption and Production – The article’s core theme is forest certification (PEFC and FSC), which is a mechanism to ensure sustainable production patterns in the timber industry. It discusses how market demand for verifiable sustainability drives the need for these certifications.
• SDG 15: Life on Land – The article directly relates to the sustainable management of forests. Certification schemes like PEFC and FSC are designed to protect forest ecosystems, promote biodiversity (e.g., the “plus model” for leaving retention trees), and ensure the long-term health of terrestrial ecosystems.
• SDG 8: Decent Work and Economic Growth – The text highlights the economic dimension of sustainable forestry, mentioning that certification provides a “price premium” for forest owners. This connects sustainable practices to economic viability and revenue, contributing to sustainable economic growth within the sector.

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 15: Life on Land
  • Target 15.2: “By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests and substantially increase afforestation and reforestation globally.” The entire article is about the implementation of sustainable forest management through certification systems (PEFC and FSC). Metsä Group’s initiative to create its own certification group is a direct action to promote and enforce these practices.
  • Target 15.5: “Take urgent and significant action to reduce the degradation of natural habitats, halt the loss of biodiversity…” The mention of the company’s “plus model,” which includes measures like “leaving more retention trees and high stumps,” is a specific action aimed at enhancing biodiversity within commercially managed forests, thus contributing to this target.
• SDG 12: Responsible Consumption and Production
  • Target 12.2: “By 2030, achieve the sustainable management and efficient use of natural resources.” Forest certification is a primary tool for achieving the sustainable management of timber, a key natural resource. The article discusses how these systems ensure compliance with sustainability criteria.
  • Target 12.6: “Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle.” Metsä Group, a large company, is taking a proactive step to “reinforce compliance” and ensure certification obligations are met, which is a clear example of a company adopting and strengthening its sustainable practices.
• SDG 8: Decent Work and Economic Growth
  • Target 8.4: “Improve progressively, through 2030, global resource efficiency in consumption and production and endeavour to decouple economic growth from environmental degradation…” The article shows how certification links environmental responsibility with economic benefit (“certified wood receives a price premium”), creating a market-based incentive to decouple timber revenue from unsustainable forest degradation.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• For Target 15.2 (Sustainable Forest Management):
  • An implied indicator is the area of forest holdings (in hectares) certified under PEFC and FSC schemes. The article mentions that Metsäliitto members and contract customers “will be able to connect their forest holdings directly to the corporate certification structure,” implying a measurable area of sustainably managed forest.
• For Target 12.2 (Sustainable Management of Natural Resources):
  • The article implies the volume of certified timber sold as an indicator. The discussion of price premiums and market demand for “verifiable sustainability” suggests that tracking the amount of certified wood entering the market is a key measure of progress.
• For Target 12.6 (Companies Adopting Sustainable Practices):
  • An indicator is the number of companies implementing robust sustainability compliance mechanisms. Metsä Group’s decision to “set up its own PEFC certification group” to correct shortcomings in the regional system is a specific, measurable action by a major company.
• For Target 8.4 (Decoupling Economic Growth from Environmental Degradation):
  • An implied indicator is the price differential or premium paid for certified versus non-certified wood. The article explicitly states that “certified wood receives a price premium, with FSC-certified timber commanding a higher price than PEFC-certified wood,” which can be tracked to measure the economic incentive for sustainable practices.

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article.

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