I have been following the recent news articles in PrintWeek regarding paper prices, while at the same time watching the increased interest from the finance industry in forestry. Are the two likely to become increasingly linked in the future? Supply and demand is often cited as the reason behind price changes in the paper industry, along with raw material prices, which themselves are open to the same market forces.
Paper is one of many products produced from trees – it’s part of a global industry that is trying to survive by offering the correct mix of products to customers, be it timber, pulp, paper, wallpaper, paper cups or packaging.
However, there is a growing demand for other products and interests. I see the finance sector paying increased attention to the forestry industry. The opportunities range from selling carbon credits, to simply investing in forestry as a long-term growth opportunity. Put simply, the economics of forestry are changing and this trend can only increase pressure on raw material supply and the other dynamics of the industry that drive price.
Forestry finance interest
Another area of growth is biofuel power stations, particularly in Europe. These installations will use wood chips to provide a fuel with a much lower carbon footprint than conventional fossil fuels. This is because wood growth is classed as ‘short-cycle carbon’, in other words, carbon is temporarily removed from the atmosphere as the tree grows. The scale of planned investments over the coming years is significant and, like the financial sector’s interest, will have an impact on the global forest products industry.
This brings me to a question: which is more appealing to an ‘engaged’ consumer, a ‘green power company’ or a paper producer? Which do you think ‘wins’ the sustainability argument in the eyes of the general public?
On a separate topic, I attended another Two Tomorrows industry roundtable last month. This time, we discussed how the Information and Communication Technology (ICT) sector is approaching climate change. Regular readers will remember that I was sceptical that this industry could provide transparent carbon data in the same way that the paper industry can generally. I stand by this view, but the picture will change as the demand increases for common methodologies. The ICT industry is showing signs of increased collaboration over how to measure the carbon footprint of its products and this agenda needs to be tracked carefully by print and paper companies.
I have written in my column before about how the digital versions of printed products are widely seen as more sustainable. In my view, this is greenwash. But these views are endemic and will only grow as new markets appear for wood products. My company is working with clients across print and media internationally and, while reviewing various companies’ CSR reports, websites and marketing material, it struck me that very few print companies really get a comprehensive sustainability message communicated. There is a tendency to rely on fibre certification or environmental management systems at print sites for example. Don’t get me wrong, these are all very relevant but many miss the wider sustainability picture. How does your company operate? What are its fundamental principles? How does it engage with customers, suppliers, employers and the community?
Paper and print needs to secure itself against the changing business landscape. Are you supporting the various industry initiatives such as Two Sides? Are you writing a clear positioning statement on your website or maybe even a full sustainability report? Are your staff trained to understand the company’s position and policies? If you are not happy with the answers, now is the time to act.
30-second briefing on the forestry industry
Supply and demand is often cited as the reason behind price changes in the paper industry, along with raw material prices, which themselves are open to the same market forces
Paper is one of many products produced from trees – it’s part of a global industry that is trying to survive by offering the correct mix of products to customers, be it timber, pulp, wallpaper, paper cups or packaging. However, there is a growing demand for other products and interests
I see the finance sector paying increased attention to the forestry industry. The opportunities range from selling carbon credits, to simply investing in forestry as a long-term growth opportunity
Another area of growth is biofuel power stations, particularly in Europe. These installations will use wood chips to provide a fuel with a much lower carbon footprint than conventional fossil fuels. The scale of planned investments over the coming years is significant and, like the financial sectors interests, will have an impact on the global forest products industry
The ICT industry is showing signs of increased collaboration over how to measure their products’ carbon footprint and this agenda needs to be tracked carefully by print and paper companies
Paper and print needs to secure itself against the changing business landscape. Are you supporting various industry initiatives such as Two Sides? Are you writing a clear statement on your website or maybe even a full Sustainability Report? Are your staff trained to understand the company’s position and policies?
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