Certification and Markets – Incentives for Planning

Government is not always the only game in town.  While most planning for watershed values is required by government, private individuals or companies may initiate their own planning processes for a range of reasons, as discussed on the Guide page on Planning Outside Government.  This page discusses some of the different reasons that a private party might initiate watershed planning on its own, and discusses how Watershed Protection Advocates might encourage them to do so. 

Marketplace Demands

Developers and resource companies may or may not care about a watershed in its own right, but they certainly care about what their consumers think; particularly if the consumers are upset enough to make their purchases from another company.  The companies also take note when they can charge a higher price in return for making certain that the environment is protected.

While not everyone cares how a good was produced, there is no doubt that some consumers are willing to pay more for environmentally-sound goods.  Solutions that are good for business and for the environment include (for example):

·         Organic vegetables;

·         Homes designed with lots of greenspace and bike paths nearby; and

·         Environmentally-sound wood.

Conversely, some companies that have not protected watershed values have faced aggressive campaigns calling on consumers to “boycott” their products. 

These types of market pressures have resulted in some major changes in B.C.’s forest industry, with forest company MacMillan Bloedel (now Weyerhaeuser) agreeing to phase out clearcutting and other companies deferring logging and adopting new planning requirements in B.C.’s
”Great Bear Rainforest”.

Certification

“Certification” is a process in which a credible non-governmental organization confirms that a product is environmentally sound (or that workers have been paid fairly, or that no testing occurred on animals, or some other value).  It usually involves an audit by the organization of the product to ensure that it meets standards set by the organization.  These standards should be higher than the minimum required by law, so as to assure consumers that the product is better than its competitors. 

The following are examples of certification:

·         The Certified Organic Farmers Association of B.C. – A B.C.-based farming association that sets down rules about how a farm must be run before produce from that farm can be designated organic;

·         The Forest Stewardship Council – An international organization with environmentalist, First Nation, Industry and Social Sector representation that sets standards for environmentally sensitive logging and allows companies meeting those standards to use the “FSC Logo”. 

Not all certification schemes are equal.  The consumer may not know which organizations approving “green products” are credible.  In B.C. there has been growing controversy over the appropriate certification to be used in forestry.  While the Forest Stewardship Council is favoured by most environmental organizations as setting a high standard, the Canadian Standards Association and Sustainable Forests International are more favourable to industry, arguing that easily achievable standards encourage more companies to seek certification. 

Compliance with the requirements of the International Organization for Standardization (ISO)’s ISO 14000 (related to environmental standards) is often held up as evidence that a company is doing a good job.  However, while the ISO 14000 can require companies to do planning, it does not, unlike the more stringent certification schemes, impose standards on the participating company.  Rather, it requires companies to set their own standards and then move to improve them incrementally.  Thus a company that sets low standards for itself can meet ISO 14000 requirements without too much difficulty.  Contrary to some claims from government and industry, ISO 14000 is not a certification scheme, and does not pretend to be.

In deciding whether to cooperate with a company seeking certification, consider why the company is seeking certification, and find out more about the certification scheme and its credibility.  Participating in a scheme without all the pieces can just give credibility to a bad process.

Other reasons for Planning

It should not be suggested that companies only engage in watershed planning because of market pressures.  Individuals working within companies may well have personal philosophies or goals that include resolving disputes amicably.  Concerns about public image and the potential for a politically embarrassing situation can also be relevant.  However, the markets campaigns and certification schemes have been two of the more successful tools in getting companies to comply with higher environmental standards and to do watershed planning.

First Nations also have special leverage in pushing for planning by industry.  Because of developing law on aboriginal rights and title, industry knows that in some cases First Nations can throw a legal wrench into a development.  Moreover, some recent court cases have gone so far as to suggest that in some circumstances industry itself will owe a duty to consult with First Nations.  Consequently, First Nations may be able to successfully pressure industry to engage in a consultation process.  In some cases First Nations have developed their own planning process, rather than to push for an industry-led process.    

Related Guide Pages:

·         Planning Outside Government

·         Implementation of a Private Plan

·         Participating in a Planning Process

For more information about Markets and Certification:

·         Forest Ethics – A North American environmental organization that has used market pressure in the U.S. to improve forest practices in B.C. and Chile.

·         Comparative Analysis of FSC and SFI – A Study commissioned by Home Depot comparing two of the main forest certification schemes.

·         Goodwoodwatch.org – A B.C. Coalition aimed at monitoring the development of strong certification standards for forestry in the province.

·         Turning Point Agreement – A page on the David Suzuki website devoted to an agreement on planning developed largely through the pressure of First Nations and markets campaigns.