A sustainable forest products industry is a business and a consumer issue: PricewaterhouseCoopers

    VANCOUVER, May 10 /CNW/ - Climate change and the environment is now a
number one issue for Canadians - and the forest products sector is feeling the
heat. Global warming is changing the way the industry does business and will
only intensify in the coming years. However, according to
PricewaterhouseCoopers (PwC), there are a number of steps forest, paper and
packaging (FPP) companies can take today to manage their changing business
dynamics and satisfy consumer demands.
    "Environmental sustainability is a business and consumer issue. Companies
that do not adequately address environmental challenges could face limits on
growth and suffer serious, negative reputation consequences. Those who ignore
environmental issues do so at their peril," says Bruce McIntyre, leader of
PwC's Forest, Paper and Packaging industry practice in Canada and who is also
the Chair of PwC's 20th Annual Global Forest and Paper Conference being held
today in Vancouver. "Yet there are opportunities to grow with the changing
environmental and business climate through sound practices, better
communication and bioenergy use. The key is to take action now."
    According to a previous PwC report, CEO Perspectives: Viewpoints of CEOs
in the forest, paper & packaging industry worldwide executives said that
sustainability is a critical factor to ensuring long-term success for
companies. CEOs agreed that good forest management and a sustainable business
model make sound business sense for companies in the sector.
    A prime example of how environmental issues are affecting the forest
industry in B.C. is the devastation caused by the mountain pine beetle. Its
phenomenal spread is due in part to milder winter temperatures that aren't low
enough to kill it off. It is estimated that 17 million hectares, roughly the
size of the state of Florida, have been affected by the pine beetle. McIntyre
notes, "It's incredible to think that simply because of changing weather
patterns an insect has forced some B.C. lumber mills to change the way they do
business and re-tool their processes to handle beetle-killed wood, which has
different characteristics than normal wood."
    The changing environment is also changing customer demands on the FPP
industry. Companies are now expected to provide an "environmental pedigree" of
their products that follows the supply chain from where the wood was harvested
to how it was manufactured. They are also expected to communicate this
information to their stakeholders, for example through a Sustainability or
Corporate Social Responsibility Report.
    PwC's independent chain of custody certification standard is another way
companies can demonstrate and communicate to their stakeholders that they have
the systems and controls in place to meet stated environmental objectives in a
responsible, transparent and accountable manner. Independent certification of
responsible forest management and manufacturing practices ensures
accountability of forest products suppliers and allows credible claims
regarding the environmental attributes of the products.
    "There is a tremendous demand for transparency and good corporate
citizenry regarding environmental issues today. Shareholders, investors,
employees, the public and regulators are now expecting companies to go above
and beyond meeting the challenges of a changing environment to protect
society's interests overall," adds McIntyre.
    Another area where the FPP sector can be part of the environmental
sustainability solution is in energy consumption. For years the industry has
generated much of its own energy. Today, the opportunity exists for companies
to expand the use of carbon-neutral bio-energy by using pine-beetle ravaged
wood.
    Over 500 senior forest and paper industry executives, analysts,
suppliers, and customers will be attending PwC's Global Forest and Paper
Industry Conference. The conference theme is '20 Years of Change'. The event
will feature speakers from the financial community, as well as forestry, pulp
and paper, wood products and fibre-based packaging sectors, from around the
world.
    The PwC conference is A Carbon Neutral Event(R). Working with Tree
Canada, PwC has offset the estimated amount of carbon dioxide that will be
generated as a result of its 2007 Global Forest and Paper Industry Conference
through travel, accommodation and energy consumption, by funding the planting
of over 900 trees on B.C. forest lands that have been affected by the mountain
pine beetle.

    PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance,
tax and advisory services to build public trust and enhance value for its
clients and their stakeholders. More than 140,000 people in 149 countries
across our network share their thinking, experience and solutions to develop
fresh perspectives and practical advice. Now celebrating 100 years of
excellence in Canada, PricewaterhouseCoopers LLP (www.pwc.com/ca) and its
related entities have more than 4,700 partners and staff in offices across the
country.
    "PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP, an Ontario
limited liability partnership, or, as the context requires, the
PricewaterhouseCoopers global network or other member firms of the network,
each of which is a separate and independent legal entity.

For further information: Peter Zvanitajs, PricewaterhouseCoopers LLP,
(416) 941-8383 x13408, peter.zvanitajs@ca.pwc.com; Jim Nelson,
PricewaterhouseCoopers LLP, (604) 806-7047, jim.nelson@ca.pwc.com