Revisiting Forest Certification in Sri Lanka: The Forest Management and Export Wood-Based Manufacturing Sector Perspectives

Priyan Perera,Devin Weerasekera,Rajitha Lakshan Rupasinghe,Richard Vlosky,Rangika Bandara

doi:10.3390/f13020179

Abstract

There are discussions and debates surrounding forest certification in developing countries. In this study, we surveyed 50 forest-based companies in Sri Lanka (43 wood-based manufacturers and 7 plantation companies) to ascertain their participation in forest certification, current and future forest certification trends, as well as their satisfaction with the performance of Forest Stewardship Council (FSC) certification in its economic, environmental, and social aspects, using an importance–performance analysis (IPA). Study results indicate that certified companies typically focus on exports and supplying raw materials for value-added exporters. The customer demand/signaling mechanism appears to be the primary driver of FSC certification in Sri Lanka. Forest certification was found to be helpful for companies to access new markets, keep market share, and sell products in existing markets. Results further indicate that price premiums for FSC-certified products exist, though they may not always be significant. However, certification positively influences sales volume and reduces business risks via securing continuous orders from the buyers. The IPA results further indicate that FSC certification has substantially improved company images by positioning certified companies as socially responsible businesses, while helping to create better business stakeholder relationships. FSC certification was found to have weak links in improving on-the-ground environmental performances of certified companies. Study findings have implications for the FSC certification scheme and independent certifiers, enabling them to identify the areas of FSC certification with significant performance gaps.

Highlights

The complexity of environmental problems and the growing anthropogenic pressure on natural resources and the environment has driven the global community to explore market-driven voluntary systematic environmental governance mechanisms and reward sustainable practices in global economic and trade policies [1]
In response to growing concerns over tropical deforestation, forest certification emerged in the 1990s as a novel non-state market-driven governance model to encourage sustainable forest management [4,5,6]
Perera et al [16] examined the perceptions of wood-based manufacturers and forest plantation companies on providing economic, social, and environmental benefits through Forest Stewardship Council (FSC) certification based on 11 certified companies

Summary

Introduction

The complexity of environmental problems and the growing anthropogenic pressure on natural resources and the environment has driven the global community to explore market-driven voluntary systematic environmental governance mechanisms and reward sustainable practices in global economic and trade policies [1]. Among such mechanisms, the concept of “eco-labeling”, which promotes green consumerism and eco-friendly products, has gained popularity across supply chains in different sectors [2,3]. Certification bodies act as independent third-party entities that verify a firm’s compliance with programmatic indicators through an auditing process [8,9,10]

Methods

Results

Discussion

Conclusion