Illustrative image (Source: zing.vn) HCM City (VNA) - Retail companies with responsible forestproduct sourcing policies are seeing numerous tangible business benefits,demonstrating that sustainability makes business sense, according to a newreport from the World Wide Fund for Nature (WWF).
Vietnam is the fifth largest timber product exporting country inthe world, with revenues of 7 billion USD last year.
While the luxury furniture segment in Vietnam requires responsiblysourced products, only 230,000ha of forests in the country are ForestStewardship Council certified. So Vietnam has to import around 4.5 million cu.mof timber every year, the report said.
Unable to utilise domestic timber, the country is now largelydependent on other countries, reducing the potential benefits of production.
But with responsible products still a new concept for Vietnamese,there is no market for them.
“In the next few months, under the Responsible Asia Forestry andTrade project, WWF will promote sustainable forest products in thedomestic market,” said Dr Le Thien Duc, Forest Practice Lead of WWF-Vietnam.
“We aim to raise awareness among domestic consumers of responsibleforest products and influence producing companies and retailers to sellresponsible products in Vietnam.”
WWF-Vietnam, through the Global Forest and Trade Network (GFTN),has been working with businesses to promote processing and trading ofresponsible timber and supporting forest owners to achieve FSC certification.
All members of GFTN have to commit to using certified timber andadopting responsible forest management for five years.
“Deforestation and forest degradation are one of the leadingenvironmental challenges today, and we need concerted action from acrosssectors to tackle this issue,” Alistair Monument, WWF’s Forest Practice Lead,said.
“Research overwhelmingly shows that retail chains are positionedto mobilise transformational impacts because of their leverage over productsupply chains and influence on consumer choices. We need retailers to take thelead and understand that sustainability is no longer a niche, but the norm.”
Companies surveyed for the WWF report cited a number of benefitsof responsible sourcing: Over 80 per cent reported positive impacts on riskmanagement and brand reputation, and over 60 per cent saw positive impacts oncustomer satisfaction and stakeholder engagement.
More than 70 per cent said sustainability commitments had apositive impact on employee engagement, indicating potential gains from higheremployee satisfaction and retention.
At Migros, one of the largest retailers in Switzerland, sales ofsustainable products increased by more than 30 per cent between 2012 and 2015,demonstrating clearly that customers expect to see responsibly producedproducts on the shelves.
“Companies with genuinely responsible timber sourcing strategies –based on clear commitments and public reporting – have an opportunity to standout from the crowd,” Monument said.
The WWF study surveyed more than 50 retailers in 20 countries andhad in-depth interviews with select retail leaders.
The companies shared detailed information about their timbersourcing policies, and the perceived costs and benefits.-VNA
Vietnam is the fifth largest timber product exporting country inthe world, with revenues of 7 billion USD last year.
While the luxury furniture segment in Vietnam requires responsiblysourced products, only 230,000ha of forests in the country are ForestStewardship Council certified. So Vietnam has to import around 4.5 million cu.mof timber every year, the report said.
Unable to utilise domestic timber, the country is now largelydependent on other countries, reducing the potential benefits of production.
But with responsible products still a new concept for Vietnamese,there is no market for them.
“In the next few months, under the Responsible Asia Forestry andTrade project, WWF will promote sustainable forest products in thedomestic market,” said Dr Le Thien Duc, Forest Practice Lead of WWF-Vietnam.
“We aim to raise awareness among domestic consumers of responsibleforest products and influence producing companies and retailers to sellresponsible products in Vietnam.”
WWF-Vietnam, through the Global Forest and Trade Network (GFTN),has been working with businesses to promote processing and trading ofresponsible timber and supporting forest owners to achieve FSC certification.
All members of GFTN have to commit to using certified timber andadopting responsible forest management for five years.
“Deforestation and forest degradation are one of the leadingenvironmental challenges today, and we need concerted action from acrosssectors to tackle this issue,” Alistair Monument, WWF’s Forest Practice Lead,said.
“Research overwhelmingly shows that retail chains are positionedto mobilise transformational impacts because of their leverage over productsupply chains and influence on consumer choices. We need retailers to take thelead and understand that sustainability is no longer a niche, but the norm.”
Companies surveyed for the WWF report cited a number of benefitsof responsible sourcing: Over 80 per cent reported positive impacts on riskmanagement and brand reputation, and over 60 per cent saw positive impacts oncustomer satisfaction and stakeholder engagement.
More than 70 per cent said sustainability commitments had apositive impact on employee engagement, indicating potential gains from higheremployee satisfaction and retention.
At Migros, one of the largest retailers in Switzerland, sales ofsustainable products increased by more than 30 per cent between 2012 and 2015,demonstrating clearly that customers expect to see responsibly producedproducts on the shelves.
“Companies with genuinely responsible timber sourcing strategies –based on clear commitments and public reporting – have an opportunity to standout from the crowd,” Monument said.
The WWF study surveyed more than 50 retailers in 20 countries andhad in-depth interviews with select retail leaders.
The companies shared detailed information about their timbersourcing policies, and the perceived costs and benefits.-VNA
VNA
