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Cost & Benefits of Certification
Benefits of Certification
The potential benefits of achieving forest certification include –
- Improved sales prospects in markets that are sensitive to environmental and social concerns. Many buyers in these markets have purchasing policies that show a preference for certified forest products
- Improved operational efficiency due to better and more comprehensive planning and management.
- A progressive and adaptive management style – addressing environmental and social issues in a proactive manner is often associated with improved overall management
- More motivated staff due to external recognition of their collective achievements in forest management and assurance that working conditions are maintained at a high standard.
- A better public image due to a combination of positive press coverage, endorsements from environmental groups and increased responsiveness to the needs of local forest users
- Reduced likelihood of targeting by negative NGO campaigns
- Valuable information and assurance to investors about the status of forest resources and the quality of management
- Reduced risk of fines, damages claims or expensive clean-up bills due to environmental damage associated with poor management (e.g. uncontrolled fires, downstream flooding).
- Third party monitoring - through certification, independent experts monitor and give unbiased feedback on management effectiveness.
Costs of Certification
- For Forest Certification
The direct costs of a forest assessment include the initial and annual audit fees. While the indirect costs of the assessment may include increased staff costs, increased forest monitoring, additional management planning, increased inventory, and changes in harvesting methods. - For Chain of Custody Certification
The direct costs of getting chain-of-custody certified include the initial and annual audit fees. While the indirect costs may include additional space to separate products, and staff training to ensure separation of products.