Full Circle: PEFC Certification and the Circular Economy

13 November 2023 News

A Transformative Approach to How We Live Our Lives

The circular economy, as defined by the United Nations Conference on Trade and Development (UNCTAD), is a system that emphasizes the reuse of products instead of discarding them and extracting new resources. In this economy, all types of waste, such as clothing, scrap metal, and outdated electronics, are either reintroduced into the economy or used more efficiently. Adopting this approach and transforming our consumption patterns to maximize resource utilization and minimize waste generation are crucial steps towards achieving global sustainability goals. 

A study examining the link between circular economy practices and the targets of the Sustainable Development Goals (SDGs) has highlighted the potential of the circular model to unlock numerous SDG targets. The study identified strong connections between circular economy practices and targets of SDG 6 (Clean Water and Sanitation), SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), SDG 12 (Responsible Consumption and Production), and SDG 15 (Life on Land).

An effective example of this in action is the PEFC FOR-TRADE initiative, which partnered with the UN-REDD Program for their new project, "Sustainable Forest Trade in the Lower Mekong Region." This collaboration aims to promote trade, sustainable forest management, and improved governance in Cambodia, Lao PDR, Myanmar, Thailand, and Vietnam, thereby reducing pressure on

forests and unlocking their potential to support circular practices. PEFC also supports chain of custody certification for companies that utilize recycled materials, further contributing to circular economy principles.

These examples illustrate how applying sustainable forest management to the rubber sector can initiate the adoption of circular practices within the industry, aligning with the goals of the circular economy and the SDGs. However, for sustainability to be achieved, this model must be implemented across all sectors, particularly when it comes to forest-based products.

Unlocking The Power of Circular Economies

Both circular economy principles and the SDGs place great importance on using sustainably sourced and renewable materials as substitutes for carbon-intensive and non-renewable alternatives as a starting point for transitioning to circular economies. Wood and rubber, derived from renewable sources, can undergo a cycle of being transformed into products, reused, and ultimately recycled into new items. This cyclical process is at the core of the circular economy concept.

Many public and private organisations are also choosing to use aspects of the circular model and the SDGs as a guide to formulate their own ESG goals. The circular economy provides a comprehensive framework that addresses environmental challenges, meets stakeholder expectations, and aligns with regulatory requirements, making it an attractive model for companies seeking to integrate sustainability and ESG principles into their operations.

However, a significant challenge lies in facilitating the availability of sustainably certified materials, adapting supply chains, and educating consumers and stakeholders throughout the value chain about the benefits of using sustainably sourced materials. And this is where PEFC can play a role in supporting stakeholders to meet that requirement.

ESG Risk Assessment and PEFC Certification 

When companies embark on developing or revising their ESG goals, they must thoroughly evaluate the various risks encompassed within their framework. For businesses engaged in trading forest-based products, these risks encompass a wide range of factors, including the impacts of climate change and pollution, the adoption of sustainable harvesting practices, responsible utilisation of natural resources such as water and soil, and the protection of workers' rights alongside anti-corruption measures. It is imperative for companies operating in this sector to consider these factors in order to align their practices with environmental sustainability and social responsibility.

PEFC certification offers numerous benefits and reassurances to investors, financial institutions, and stakeholders with regard to their ESG commitment. Certification enables companies to

demonstrate their commitment to traceability throughout the supply chain, thereby supporting the long-term protection of natural forest areas and preventing deforestation or degradation in ecologically important areas. Moreover, PEFC certification ensures the safeguarding of soil and water quality while protecting threatened or endangered species. Additionally, it upholds the rights of indigenous peoples and guarantees the labour rights of workers.

In addition to certification, PEFC actively supports forest owners and traditional custodians, providing them with administrative and technical assistance to implement the environmental best market. This serves as a pertinent example of how PEFC can support stakeholders in responsibly sourcing renewable materials, thereby facilitating the transition to circular practices and surpassing their own ESG requirements.

The path to a sustainable future

 The circular economy represents a transformative approach that holds immense potential for addressing global challenges and achieving broad, global sustainability goals. By shifting from a linear system to one that prioritizes resource reuse and efficiency, the circular economy offers a path towards a more sustainable future. The integration of sustainable forest management and responsible sourcing of natural materials, such as wood and rubber, plays a crucial role in unlocking the power of circular economies. Organisations like PEFC, through their certification and support initiatives, enable stakeholders to adopt circular practices, align with the goals of the circular economy and the SDGs, and demonstrate their commitment to environmental responsibility. As we strive for a more sustainable world, embracing the principles of the circular economy and leveraging responsible sourcing and certification will be instrumental in achieving long-term sustainability and meeting the demands of a rapidly changing world.

If you are part of a forest-based products supply chain and are looking to enhance your ESG goals, contribute to the SDGs, and join the circular economy, get in touch and fill out the form below. Learn how PEFC can assist you in implementing sustainable practices, sourcing certified materials, and achieving long-term sustainability. Together, we can create a more sustainable world and build a future that benefits both people and the planet.