1. From Vision to Action: Promoting Responsible Forest Management and Trade Ian Gray Responsible Forest Coordinator GFTN October, 2009

2. Why Are You Here? Maybe you… Have concerns about Lacey and don’t know what to do… Want to commit to industry leadership in responsible sourcing and don’t know how… Want strengthened supply chains but need the local context… Want to manage your supply chain risk with easy to understand tools and guidance…

3. Why Does This Matter? Your brand is your business Your supply chain is your security Your social license to operate is crucial Your customers are increasingly “green” You have the choice: Lead or follow Set the pace or get dragged along

4. Why GFTN? Local to global expertise GFTN has over 80 staff in 30 countries WWF has 5400 staff in 40 countries Extended network Strong connections with local NGOs, Universities, Governments Proven program Largest and longest running “stepwise approach” program in the world

5. GFTN Participants Across the Globe GLOBAL TOTALS (October 2009) 296 Companies27 Million Hectares16% of the Global Forest Products Market 35 Countries19 Million Hectares FSC $66 Billion USD Sales in Forest Products 2.4 Million People Employed

6. GFTN Participants Sell over US$66 billion in forest products per year Manage 19 million ha of FSC certified forests, with another 8 million in progress Trade 242 million cubic meters of forest products per year Have 189 trading deals with other GFTN Participants Employ over 2.4 million people

7. Why work together? We can all achieve bigger results working together Utilize complimentary capacity/skills Access different networks Learn from each other We may have different goals but we can achieve those through similar means

8. GFTN at a Glance VISION: To transform the global market place into a force for saving the world’s valuable and threatened forests, while providing economic and social benefits for the businesses and people that depend on them. GOAL: Mainstream responsible forest management and trade by 2020.

9. Growing Threat: Illegal Logging & Trade Hot Spots Russia Cameroon, Equatorial Guinea, Gabon, Ghana, Indonesia Malaysia Papua New Guinea Brazil Peru IMPACT OF ILLEGAL LOGGING Global Hardwood Trade: Up to 15% is illegal Global Illegal Trade: Costs Developing Countries $15 billion per year Illegal Wood Trade: Depress timber prices by 7-16% Eastern Europe China Ecuador

10. Is this our vision for global forests?

11. … or this?

12. What the GFTN Does: Works towards eliminating illegally logged forest products Uses “stepwise approaches” to responsible forest management and purchasing Facilitates trade linkages within a Business-to- Business framework Provides structural support to achieve responsible sourcing and credible certification

13. What the GFTN Offers: Credible and transparent global framework for companies to demonstrate best practices. Access to information Guidance and access to best practice tools Linkages to offices throughout the GFTN and WWF Networks

14. Types of GFTN Participant Companies Forest Participants Open to forest managers and owners who are committed to responsible forest management Trade Participants Based in all the countries where the GFTN operates Open to processors, traders, manufacturers, importers and retailers Requires commitment to responsible purchasing of forest products

15. From Forest Floor to the Retail Store MANUFACTURERS PRIMARY PROCESSORS FOREST MANAGERS TRADERS RETAILERS

16. GFTN Tools for Buyers

17. Case Study 1: GFTN-China: The World’s Factory A significant portion of the world’s timber passes through China A huge amount of this timber finds its way onto the US markets Since the launch of the GFTN-China in 2005, GFTN companies in North America have already created more than 20 trading relationships with GFTN-China Participants with a combined value of over $20 million USD

18. Conservation through Collaboration: GFTN Allies in Responsible Forestry

19. Thank You Local Forests. Global Markets. For more information, visit gftn.panda.org