Timber Industry Launches Fake Green Label for "Sustainable"Products

May 23, 2001

Marketplace
Timber Industry Goes to Battle
Over Rival Seals for 'Green' Wood
By QUEENA SOOK KIM and JIM CARLTON
Staff Reporters of THE WALL STREET JOURNAL

Environmentalists trying to save endangered forests are squaring off
against the timber industry over dueling seals of approval for lumber.

Many environmentalists dreamed of the day when consumers shopping
for "green" lumber would be able to seek out wood with a logo from the
Forest Stewardship Council, an international accrediting organization that
certifies wood harvested in well-managed forests. Over the past two
years, large retailers like Home Depot Inc. and Lowe's Cos. agreed to
show a preference for wood certified by the council, and the dream seemed
to be fast becoming a reality.

But not fast enough. Before the seal had a chance to catch on, other
groups started rolling out seals of their own. One of the most ambitious
efforts involves the industry trade group American Forest & Paper Association,
whose members own tens of millions of acres of forested land in North America.
The group plans to put its logo on forest products that comply with the
group's Sustainable Forestry Initiative. To promote its program, it has hired
True North Communications Inc.'s Bozell Chicago, creator of the "Got Milk"
ads, and plans to wage a $25 million advertising campaign.

The association's seal will make Big Timber one of the largest industries to
join the eco-label movement, under which sellers of commodities like
coffee, tea and cocoa market their goods in the U.S. as "fair trade" certified
in compliance with green growing standards.

But the group's logo, scheduled to come out this fall, is already generating
controversy. Rainforest Action Network, a major force in the campaign to
persuade Home Depot to show a preference for the Forest Stewardship
Council's logo, has called on the group to cancel its label launch. "It's a
hideous form of green washing," says Randy Hayes, the network's
president.

Chief among the environmentalists' complaints: that the Sustainable
Forestry Initiative is largely an industry-run program that's soft on
members like Pacific Lumber Co. The Scotia, Calif.-based unit of
Maxxam Inc. was allowed to continue to participate in the program
even though -- by its own account -- it was responsible for about
00 violations of California state forestry practices between 1996
and 1999.

In addition, with little input from outside interests, critics say the program
has few environmental safeguards. For example, program rules allow
an average of 120 acres -- the size of 116 football fields -- to be cut
clear of trees. Under the environmentalists' program, "clear cuts"
larger than 40 acres are discouraged. The industry's rules also put no
constraint on the use of timber-management chemicals such as herbicides,
while the competing rules call for minimal to no use of chemicals.

The industry group responds that environmentalists' criticisms betray a
fundamental antagonism toward the business of forestry. "Some
environmental groups don't think trees should ever be cut down," says
Michael Klein, a spokesman.

Though the program allows for larger clear-cuts and doesn't restrict the
use of herbicides, opponents' criticisms are misguided, backers say. They
argue that herbicides are government-approved and generally used once
or twice over the life of a tree, which can span from 20 to 80 years. Also,
the group says, the average size of clear-cuts by its members is 60 acres,
not 120.

As for Pacific Lumber, it isn't certified but simply enrolled in the program,
which requires that companies show "continuous improvement" in
forestry practices. Pacific Lumber is doing this, say group officials.
California state officials confirm that the company's violations have
dropped sharply.

So far, customers like 37-year-old Dennis Manalo, who was shopping
recently in the lumber section of a Home Depot in Colma, Calif., are in the
dark. "I don't know anything about standards," said the San Francisco postal
carrier. "All I know is my fence blew down and I have to find more lumber."

But that will change. The industry group has indicated that it will increase
its advertising budget if there's a need. And last month, the Forest
Stewardship Council launched its own advertising campaign featuring
actor Pierce Brosnan. The group, which is based in Oaxaca, Mexico, says
the ads weren't a preemptive strike and that it has advertised several times
since its standard was instituted almost a decade ago. The ads make no
mention of the rivalry between the two standards.

The industry group's program had its origins back in 1995. An industry task
force set guidelines on proper forestry practices, and companies complied
with them following an honor system. Enrollment was mandatory for all
members.

In 1999, the group added a "certification" program. To use the product logo
and become certified, members had to let a "third party," or an outside
auditing agency, assess their practices. Last year, a Sustainable Forestry
Board, made up of industry leaders, academics and environmentalists, was
set up to adjust and set certification standards.

To sort through the he-said-she-said tenor of the certification war, groups
like Home Depot have launched studies to assess the two standards.
Meanwhile, industry officials and some environmentalists say groups like
the Rainforest Action Network can't continue to support the Forest
Stewardship Council to the exclusion of other certifications. Though Home
Depot says it is stocking more FSC wood than it did when it started the
program two years ago, the Council is far from certifying enough to fill the
retailer's shelves. In addition, customers have so far been unwilling to pay a
premium for certified wood, industry experts say.

Still, all sides agree that the environmentalists have fundamentally shifted
the way timber companies do business by pushing for certification. That
leaves many in the industry confused and frustrated, says Bob Simpson,
national director of the American Tree Farm System, which certifies
trees grown on private property.

"I don't see why they don't see this as a victory," says Mr. Simpson.
"Instead of fighting, environmentalists should help us manage the
forests in a sustainable way."

Write to Queena Sook Kim at queena.kim@wsj.com1 and Jim Carlton at
jim.carlton@wsj.com2