Letter from Ed: Can Our Industry Benefit from Environmental Claims and Certification?

Letter from Ed: Can Our Industry Benefit from Environmental Claims and Certification?

                I have always believed that the wooden pallet industry has a very attractive, positive environmental story to tell. Virtually every pallet company owner with whom I have discussed this issue agrees. Interestingly, many pallet using companies agree. Yet, in spite of this reality, there exists a great deal of folklore and misconception claiming the opposite.

                The idea of having to seek third party verification of the positive environmental impacts of wooden pallets seemed a little bit unnecessary. But the more you talk with people, the easier it is to see why we need data to support our claims.

                Many people believe that we are cutting down all of our forests. Nothing could be further from the truth. The U. S. Forest Service says there is 119% more hardwood trees growing in 2007 than there was in 1953. We have a two to one growth versus harvest ratio. Every year there is an estimated 1.7 billion trees planted in the United States. And wooden pallets and packaging are made from the waste lumber from other higher grade products. This material would otherwise be ground up for mulch, boiler fuel or pellets.

                Our industry needs to tell our positive environmental story, but few pallet manufacturing companies have taken the initiative to certify their wood sources. Anybody who takes a fair and accurate look at the issue will probably come away with a positive perspective of both wooden pallets and the overall forest products industry. But if we don’t tell our story, then who will?

                Wood pallets are among one of the greenest packaging options on the planet. When pallets reach the end of their lifecycle, the material can be ground up into mulch or even turned into beautiful do-it-yourself projects, such as furniture or artwork. These projects serve as great carbon sink to prevent the release of carbon into the environment.

                Wood is a renewable resource that takes much less total energy to procure and use than other packaging options.

                So, I am suggesting that every forward-looking reader take the idea seriously of promoting the green credentials of wood packaging materials. For many of you this requires outreach to customers, and for some, certifying the positive environmental impact of the wooden pallet industry and your wood sources through a third party audit process.

                The three North American pallet associations (the Western Pallet Association, the National Wooden Pallet and Container Association, and the Canadian Wood Pallet and Container Association) are forming a Nation’s Packaging program which will serve as an industry-wide effort to support the green credentials of wooden pallets and packaging. At the minimum, you should look to see how you can get involved and use the materials that will be launched later this year.

                For others, you should consider getting what you do certified to provide validation to customers. The Forest Stewardship Council (FSC) offers an opportunity for good public relations for recycled wood products, including wooden pallets and boxes.

                Phil Araman, researcher with the U.S. Forest Service, spoke on the topic of green certification last year at the Western Pallet Association annual meeting. He said that many things pallet recyclers do are already considered green by purchasing standards. And all they need is certification to get recognized for it.

                Araman commented that some recyclers may be able to state, “It’s official – We Are FSC Certified! Are we green yet? Turns out we always were. But now it’s official. Our entire pallet inventory was recently awarded the Forest Stewardship Council Recycled designation, and we didn’t have to strain to meet the conditions for it. As it turns out, we were doing things the right way from the beginning.” 

                There are three basic labeling options with FSC. See Diagram 1.

                One of the largest and most progressive pallet companies in the country, Commercial Lumber & Pallet Co., has gladly worked to achieve SFI (Sustainable Forestry Imitative) certification. Kathleen Dietrick, operations manager of Commercial Lumber & Pallet and vice president of Priority Pallet, provided some insights into her companies’ SFI certification. The certification program runs on a five-year renewal cycle; Commercial Lumber has completed its first five year certification and conducts annual mini audits.

                There is no doubt that getting involved with an auditing program requires a commitment of time and effort, but certification can help you stand out from the pack.

                Kathleen Dietrich put a perspective on the effort required when she said, “The difficulty in achieving SFI status is in knowing who you are buying from and whether or not they are SFI certified mills as well. 66% of our purchased lumber must come from SFI certified lumber sources.”

                Commercial Lumber promotes that at least 2/3s of its lumber comes from companies that are certified to the procurement requirements of the SFI 2015-2020 standard.

                Dietrick explained some of the administrative effort involved. Commercial Lumber maintains vendor certification numbers on file and tracks every lumber purchase it makes. It does internal audits to insure it sources at least 66% of its wood fiber from certified mills. It must have an accurate paper trail to tag its entire processing process from an initial order of lumber through to receiving and payment.

                The SFI process includes an assessment of any raw materials from outside of North America to avoid such issues as illegal logging operations. Dietrick volunteered that the record keeping required is not that easy initially but maintaining it is much easier to do.

                While establishing a certification process is not that easy, Commercial Lumber has found the process to be worthwhile in helping it develop a strong environmental reputation compared to competitors in the market. A good estimate of the initial cost is no more than $5000 for certification every five years with an annual renewal fee of $1200 plus any record keeping cost of compliance. Across North America over 195 million acres of timber are certified to SFI forest management standards.

                Dietrick admitted that their customers are not requesting environmental certification, but that most of the Fortune 500 companies they deal with are interested in the words “green” and “sustainable.” It is a selling point that makes them stand out somewhat in the market. In addition Commercial Lumber says that it really does care about whom they buy from and the sustainability issue.

                Dietrick said that quite a few pallet companies around the country have shown an interest in SFI certification, but to her knowledge very few have yet to make the necessary moves to follow through with their own certification. There seems to be no doubt that individual pallet companies could benefit from participating in the SFI program or other initiatives, but at this point, most see it as a secondary concern.

                Leaders need to lead, and the drum is starting to beat to go on the offensive and tell the positive environmental story of wooden packaging. Having third party certification is just another way to demonstrate your commitment and show that what you are saying is more than just talk.

pallet

Edward C. Brindley, Jr.

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Pallet Enterprise July 2024