In the timber trade industry, sustainably-managed forests not only ensure good environmental practices but also protect and respect the rights of forest communities and indigenous people. These are important rights that timber companies need to take into account when developing their forest management system. Sustainable forest management does not only offer wider social benefits, it also provides economic benefits for local communities. Here are some of the most important benefits of responsible sourcing.
Protects against Damage to Reputation
Stakeholders such as investors and customers are increasingly placing pressure on businesses across all sectors to include the supply chain when drafting their sustainability policies. As a matter of fact, shareholder resolutions related to supply chain sustainability have considerably increased in the past few years, as well as social media pressure on businesses to make sure they are adhering to sustainable and responsible business practices. In response to this, more and more companies within and outside the timber industry develop sustainable sourcing standards for their supply chain.
Improves Demand and Produces Tangible Economic Benefits
Because of increasing public awareness due to the improvements made in communication technology, there is now a rising demand for sustainably produced and sourced products. As a response to this demand, sustainable practices are no longer just a fluffy add-on, as more and more businesses are having to take this into account when developing their strategy alongside commercial considerations. By adhering to a sustainable strategy, and adopting ethical and sustainable sourcing practices, business can be assured that their operations are not contributing to labor exploitation and they are also improving supplier and stakeholder relationships.
Offers Competitive Advantage
Companies with truly sustainable timber sourcing strategies, which are based on definite commitments and transparency, can benefit from the opportunity to stand out from the rest of their competition. This is particularly advantageous for retailers who are part of a highly competitive public-facing arena where holding a competitive edge and a positive reputation is critical. In fact, operational process improvement and cost reduction are often the reason why many companies choose to follow a more sustainable approach, no matter the regulatory or legal environment.