Sustainable Forestry Enters Global Financial Arena

Tropical deforestation is one of the most critical environmental issues we face. It has dramatic impact on biodiversity, water resources, and is a significant contributor to climate change. Not to mention that it is the engine the creates oxygen for us to breath!  achieving a balance between economic development in the form of forest products harvesting and deforestation for farming and population growth has proven difficult, and the expansion of certified sustainable forestry has moved forward at a glacial pace. This is a major issue for companies involved in the supply chain, from forest producers, traders, processors, and end buyers to banks that finance forestry.  This is also a critical balance to achieve for preservation of the worlds "pharacological superstore" as Sean Connery once put it.

Fortunately, there is growing interest in the sustainability issues linked to forestry and the risks and opportunities they pose for indigenous populations as well as the financial sector. Many financial institutions are faced with the pressure to make financial commitments for financing of forestry and sustainable development projects. The challenges include awareness and education for indigenous populations and their governments and developing consistent and effective policies, implementation and monitoring procedures for sustainable forestry.

Following the Geneva Summit, PricewaterhouseCoopers (PwC) and the World Business Council for Sustainable Development (WBCSD) have launched the Sustainable Forest Finance Toolkit, which aims to support the finance sector in progressing towards the sustainable financing of industries impacting forests.

It provides financial institutions with guidance in client acceptance procedures, portfolio management, designing a clear and pragmatic forestry policy and the creation of internal procurement policies for forestry products.

The toolkit has undergone extensive stakeholder review involving leading banks, forestry industry companies, non-governmental organizations, certification bodies, governments, investors, asset managers and multilateral institutions.

The toolkit is available for download as a complimentary resource at: www.pwc.co.uk/forestfinancetoolkit .