For some time now, cooperation with the FSC (Forest Stewardship Council) certification system has raised questions. And not only in Latvia. Currently, “Latvijas valsts meži” (LVM) is halting the dual forest certification process, and from 2024, LVM will continue to certify its forests in accordance with the latest and most widely used forest management standard in Europe, PEFC. It is important to understand how this might affect the timber industry and the sector as a whole, not just in Latvia but also in neighbouring countries.
LVM emphasises that the FSC certificates will be reinstated as soon as Latvia reaches an agreement with the FSC on a National FSC Forest Management Standard for Latvia, similar to how it operates in Sweden, Finland, Norway, Denmark, and other countries.
What about Poland, where the State Forests of Poland (Lasy Państwowe) are halting cooperation with the FSC certification system? The situation in Poland is different; this is partly because many IKEA Group manufacturing plants are located there, and IKEA only collaborates with the FSC regarding certification, which may create a highly ambiguous situation for some Polish timber processors.
As is known, the State Forests of Poland have not reached an agreement with FSC International, thereby causing problems for furniture manufacturers in the country. The IKEA Group has 16 factories in Poland employing nearly 10,000 people. A serious social issue is now emerging if these plants were to cease operations. It sounds unbelievable, but such a possibility exists. At the end of 2022, several timber processing and furniture manufacturing companies began to worry that the State Forests of Poland were considering the possibility of abandoning the FSC certificate.
In September this year, the management of the State Forests of Poland published a report informing that the State Forests of Poland would not continue forest management certification under the FSC system. The decision to abandon the certificate has already been taken by 15 out of 17 regional directorates of the State Forests. This spells trouble, as the FSC certificate remains vital for all major furniture manufacturers globally and is required by the manufacturers' clients.
There is a legal dispute (all the nuances of which are unknown) between the FSC and the State Forests of Poland, due to which the state is not prepared to continue cooperation with this certification system, believing that FSC requirements restrict access to timber resources. Naturally, the greatest problems in this conflict will fall upon Poland's IKEA and those Polish companies that manufacture furniture for foreign clients who require FSC-certified wood products. Currently, companies face a choice: produce furniture without an FSC certificate or buy FSC-certified timber abroad. In the first instance, the market value of the furniture may decrease, while in the second, costs will increase significantly. There is a very high probability that Polish factories without FSC-certified timber will be much less competitive in the market.
IKEA Industry Polska reports that, as an exception, IKEA in Poland may purchase wood that is not FSC-certified, but this is only possible until the end of 2025.
This means that after 2025, manufacturing companies in Poland (which definitely require this specific certification system due to client demand) will be forced to import FSC-certified timber from other European countries. Production costs could rise by several tens of percent as a result.
The management of IKEA factories in Poland stresses that because of the absence of FSC certification, their competitiveness will be clearly lower. That is a fact. Polish IKEA does not support the idea of relocating manufacturing plants to other countries. Companies are calling on both the FSC and the State Forests to agree on the reinstatement of FSC certification.
IKEA Group and cooperation with FSC Why is FSC-certified timber used?
IKEA believes that by working together, more can be achieved. For many years, we (IKEA) have been committed to working with various stakeholders to protect and strengthen the world's forests. One of our key partners is the FSC – an organisation that brings together various opinion groups representing diverse interests regarding responsible forest management. IKEA was one of the founders of the FSC in 1994.
IKEA's rationale for supporting the FSC system
By introducing a strict timber control system, we (IKEA) have implemented many checks to ensure that the wood entering our supply chain comes from responsibly managed forests. IKEA is committed to using only wood sourced from sustainable origins. IKEA requires its wood suppliers to use FSC-certified timber.
In addition to the requirement for suppliers to use FSC-certified timber, IKEA also funds projects that support development and promote innovation in the supply chain to help further strengthen the FSC certification system.
FSC-certified timber means it comes from sources where the forest is always being regenerated. When regenerating a forest, trees are replanted. This means that, over time, there is no net loss of forest area.
FSC is an independent global forest certification system that develops national forest management standards for responsible forestry and sets strict rules for logging and silvicultural practices. The FSC chain-of-custody system ensures that timber meets certification requirements from the forest to the final product. IKEA considers the FSC to be the most reliable global forest management certificate currently available because it covers much more than just logging practices. FSC certification also includes biodiversity protection requirements, such as identifying and setting aside critical forests with high conservation value; it supports community rights and takes measures to create a fair and safe environment for those working in the forest.
IKEA believes that the FSC is clearly distinct from all other forest management certificates available on the market due to its democratic, inclusive, and transparent approach to decision-making. Everyone, from companies to environmental protection groups, can join the FSC and use their voice to further strengthen the certification system. Currently, IKEA is one of more than 1,000 FSC members. IKEA invites even more interested parties to get involved and make a contribution using their knowledge and experience.
The attitude expressed by IKEA and its support for the FSC system, in fact, also explains the current situation in Poland. IKEA’s close cooperation with only one certification system also dictates the group’s policy.