STRATEGY
Timber is a wholly renewable resource. Managed natural forests and plantations can
continue to provide an indefinite supply of raw material in a way no other natural
material source can. Over the years, ScanCom has learned to fully appreciate the
value of this resource. We have put in place a number of initiatives to promote
and secure the supply of timber from sources that can demonstrate real commitment
to sustainability. This has been a methodical and incremental process that has led
to increased understanding and control over all our supply sources.
Our process
The start of the process was to make public our commitments about the material that
would be used in our products. The next phase was to translate those commitments
into concrete actions and tangible results. This is where we could see the positive
impact of our policies in supplying factories, and most importantly, in the source
forests.
Initially, the process was a question of getting a better understanding of our supply
lines. With over 40 factories supplying finished products, it was difficult to get
an idea of where some of the material was coming from. We needed to make all the
timber used in our production lines fully traceable.
Transparent supply chain
We are now in a position where all our suppliers in Vietnam have chain of custody
systems in place that are independently certified by SGS and Smartwood for handling
FSCTM timber. There is also a full traceability system in place for all non-FSC material
entering the ScanCom supply chain.
This has led to ScanCom totally altering the way it procures timber and works with
the factories. Only through centralised buying of logs and lumber, have we been
able to get the control needed to implement this policy. But with chain of custody
systems and full traceability, we have been able to create opportunities and learn
much more about the forests that we are dependent on. More control and better management
of our supplies have also helped us reduce waste. And, we have a much better understanding
of our design, inputs and products.
Forest certification
Centralised, coordinated buying has increased our ability to have direct influence
on the source forests. We have consolidated the number of source forests we use
and have partnerships with our major suppliers. These long-term relationships have
helped to support many plantations and natural forests through their process of
gaining certification.
ScanCom has not been alone in encouraging forests to move towards certification,
but we have been a driving factor in certain locations:
By offering a market incentive and support to forests going through the process
of certification, ScanCom has been able to turn its environmental commitments and
policies into the tangible improvement of over 580,000 ha of forest.
Other initiatives by ScanCom to promote good supply chain and forest management
have also had major impacts on the development of certification. The Tropical Forest
Trust, Initiated by ScanCom and our buyers, is an organisation that is supporting
forest certification, forest policy and initiatives to combat illegal logging throughout
the tropics.
Where forests that are not yet fully FSC-certified are concerned, ScanCom has a
dual strategy. First, we have put together an environment team from Denmark, Vietnam
and Brazil that consists of two university educated foresters and six auditors.
Second, to maintain a high level of independence and transparency, we are working
with Global Forest Services to carry out field surveillances on our behalf. We also
have become an inaugural member of the WWF Vietnam Forest & Trade Network (WWFVFTN).
This ensures that our action plans for maintaining and increasing the quality of
our sources are audited in an internationally recognised framework.
We have also worked hard to launch and finance
FSCTM International’s Trademark Integrity Project.
This project has succeeded in uncovering multiple chain of custody violators in
Vietnam. The result has been the dismissal of corrupt auditors from certification
bodies, and the general reinforcement of FSC’s principles.
Our Goals for the next 3 to 5 years
It has been very important to ScanCom to have a clear environmental strategy in
place. This has given us real direction in our environmental policy and has allowed
us to demonstrate how we have achieved our goals.
Comprehensive tracing systems
We feel that the priority for the next period is consolidation. Internally, and
with our partners, we have built comprehensive systems that ensure we are in a position
to trace our timber sources and support production forestry. Making sure these systems
remain robust and become standard practice is a key objective. We know that while
the biggest hurdle for many forest managers is to reach certification standards,
maintaining certification for the five-year period and into recertification is also
important. So, we have to be realistic about the unfortunate drop-out rate among
certified forests in the tropics.
Supporting certification
Beyond our commitment to the WWF VFTN, ScanCom recognises the Global Forest & Trade
Network as an important initiative in supporting the certification process across
the world. We have two objectives over the next few years: First, to support the
GFTN directly in any way that we can; and secondly, to encourage all our supply
chain members to become members of their national FTNs.