PEFC UK

ANNUAL REPORT
CONTENTS
01 CHAIRMANS REPORT
Chairman Hugh Miller rehects on
PEFC's progress over the past year
02 MARKET OUTREACH
Snapshot ol PEFC's market
outreach activities to promote
awareness ol and drive demand lor
certihed products
04 PUBLIC AFFAIRS
A summary ol public allairs activities
designed to raise awareness ol the
PEFC programme within the public
sector
05 PROMOTING CERTIFIED
TIMBER
PEFC's engagement with industry
initiatives to increase demand lor
certihed timber
06 PEFC INTERNATIONALS
ACTIVITIES
An overview ol PEFC lnternational's
activities in 2013
07 DEMAND FOR CERTIFICATION
Key lorest and Chain ol Custody
certihcation lacts and hgures
08 BOARD OF DIRECTORS
PEFC K Board ol Directors
providing industry expertise lrom a
broad range ol sectors
10 ACCOUNTS
PEFC K hnancial inlormation lor
201314
13 PEFC PROGRESS IN ASIA
lnterest in lorest certihcation is
gaining momentum in Asia
PEFC UK LIMITED
Programme lor Endorsement
ol Forest Certihcation
Shelheld Technology Parks
Cooper Buildings
Arundel Street
Shelheld S1 2NS
t +44 (0) 114 30? 2334
e inlopelc.co.uk
w www.pelc.co.uk
Pegistered in Scotland
Company Number 209443
BOARD OF DIRECTORS
Hugh Miller, Chairman
Poss Bradshaw
Pat Burke
Steve Cook
1ulia Grilhn
David Leslie
1ohn Sanderson
Pob Shaw
Mark Weatherbed
See page 8 lor details
01
HUGH MILLER OBE, CHAIRMAN, PEFC UK
PEFC's un|quo upprouch lo corl|cul|on
and the advantages it offers to
businesses across a range of sectors
from packaging to biomass has
remained at the heart of our marketing
activities. We are encouraged that PEFC
brand recognition continues to grow
with leading companies across the UK
increasingly using the PEFC logo on
product to provide their customers with
assurances of responsible sourcing.
November saw the UK team head
off to the warmer climes of Kuala
Lumpur for the inaugural PEFC forest
corl|cul|on woo|. Th|s busy woo|
incorporated the 18th General Assembly,
a two-day Stakeholder meeting and
a full programme of sidebar events
in addition to a system development
workshop. Eleven countries from three
continents participated in the second
PEFC sustainable forest management
system development workshop. It
broughl logolhor ly roprosonlul|vos
from Cameroon, India, Indonesia, Japan,
Myunmur, ow Zou|uno, Tho Ph|||pp|nos,
Popub||c o Congo, Thu||uno, Tur|oy uno
Vietnam with representatives of PEFC
members from Belarus, Malaysia, Spain
and PEFC International.
Tho h|gh||ghl o lho your so ur or PEFC
UK was the January event to celebrate
Kingsgate House, a seven-storey
residential project in West London,
bocom|ng lho rsl mujor conslrucl|on
project in the world to achieve PEFC
Projocl Corl|cul|on. Th|s |s u rsl or
both PEFC UK and the contractor
Willmott Dixon and it is hoped that where
they lead, other developers will follow.
As the majority of solid wood solutions
such us Cross Lum|nuloo T|mbor uno
Glulam are made from timber sourced
rom PEFCcorl|oo orosls, conslrucl|on
projects using these materials should
no PEFC Projocl Corl|cul|on rouo||y
achievable.
As ever thanks are due to the many
individuals and organisations that enable
PEFC to achieve so much in the UK with
relatively modest resources. I would like
to thank the Finnish Forest Foundation
or lho|r conl|nu|ng nunc|u| supporl
to our marketing and communications
progrummo. Thun|s uro u|so ouo lo
Heritage Envelopes for helping PEFC
keep its stationery bill in check and
to the Premier Paper Group for their
generous donation of the paper used to
pr|nl our rsl PEFC cu|onour, oulur|ng
|mugos o corl|oo orosls urouno lho
world.
I would like to record my appreciation
to my fellow Board members for the
time they have generously devoted to
our affairs over the past year. Finally, I
would like to thank the PEFC UK team
o A|un Wul||ns, Trucoy Poovo uno
Hilary Khawam who continue to work
so diligently to take the organisation
forward.
CHAIRMANS REPORT
365
DAYS
OF SUSTAINABILITY
brought to you by PEFC
www.pefc.org PEFC/01-00-01
2014
CALENDAR
Welcome to the 2014 Annual Report.
Over the past year, the PEFC team has
been working tirelessly to raise the
organsaton's pro|e and grow market
demand for certed products to ensure
that we contnue to add va|ue, both
to PEFCcerted products and the
companes that trade n them.
Thanks are also
due ... to the Premier
Paper Group for their
generous donation of
the paper used to print
out htsI PFFO colendot,
featuring images of
cetIihed IotesIs otound
the world.
02 MARKET OUTREACH
In order to ncrease recognton of the PEFC brand and provde added va|ue to
more than 1,000 UK companes whch have chosen to nvest n PEFC Chan of
Custody, market outreach remans our top prorty. Ths year has therefore been
another busy one for the PEFC team and the fo||owng ams to provde a snapshot
of our marketng and communcatons actvtes over the past twe|ve months.
First PEFC Project Certihed
Construction scheme
In January, Kingsgate House, a seven-
storey residential project in West London
bocumo lho rsl mujor conslrucl|on
project in the world to achieve PEFC
Projocl Corl|cul|on. Th|s wus u rsl
for both PEFC UK and Willmott Dixon
and it is hoped that the project will help
raise awareness of PEFCs Project
Corl|cul|on oor. Tho mujor|ly o
so||o wooo so|ul|ons such us CLT uno
O|u|um uro rom PEFCcorl|oo sourcos
and construction projects using these
mulor|u|s uro |||o|y lo no PEFC Projocl
Corl|cul|on rouo||y uch|ovub|o.
Tho Projocl Corl|culo wus prosonloo
to Willmott Dixon at a CPD event which
was held in January at the Building
Conlro |n Lonoon by BM TPADA.
Timber Expo & EcobuiId
PEFC UK has used two important UK
trade shows to demonstrate its global
reach over the past twelve months.
Exhibiting alongside the North American
Sustainable Forestry Initiative (SFI) and
lho Mu|uys|un T|mbor Corl|cul|on Counc||
(MTCC) onub|oo u|| lhroo orgun|sul|ons lo
shuro slunos ul bolh T|mbor Expo 2C13
uno Ecobu||o 2C14. Tho |oy objocl|vo or
bolh lruoo shows wus lo promolo corl|oo
l|mbor lo |nuonl|u| ono usors such us
conlruclors, urch|locls uno spoc|ors.
Both shows provided excellent platforms
for PEFC and its partners to engage
with a broad range of stakeholders from
around the world.
PEFC-sponsored Industry Award
Goes to Scottish Visitor Centre
Tho rsl ovor Timbet in OonsItucIion
Magazine awards were held in
Munchoslor |usl ovombor. Tho uwuros
were established to celebrate some
o lho nosl conslrucl|on projocls
which were judged to use timber to
its fullest potential. PEFC, SFI and the
Mu|uys|un T|mbor Counc|| (MTC) jo|nl|y
sponsored the Commercial Project of
the Year Award, which was won by the
Abbotsford Visitor Reception Building.
Abbotsford is the world-famous home
built for Sir Walter Scott in the Scottish
Boroors. Tho v|s|lor Pocopl|on Bu||o|ng
was conceived as a modern version
of a gate lodge by Edinburgh-based
urch|locls LD. Tho now lwosloroy
building comprises a reinforced concrete
basement and specialist structural timber
frame with timber weatherboard cladding
and curtain walling to external walls with
a Sedum green roof system.
TIMBER AND CONSTRUCTION
Abbotsford
Ecobuild 2014
03
RFS SchooIs ExceIIence Awards
PEFC UK co-sponsored a Royal
Forestry Society Award for the
lh|ro l|mo. Founooo |n 1882, lho
RFS is the UKs largest forestry
education charity and has almost
4,CCC mombors. ln 2C13, ooucul|onu|
organisations from the North West
were invited to enter projects
aimed at increasing young peoples
understanding and appreciation
of the environmental, social and
economic potential of forests.

Tho w|nnor o lho PFS 2C13
Education Award for Excellence
in Forestry was Millbrook Primary
Schoo| |n Slu|ybr|ogo, Chosh|ro. Tho
school introduced the forest school
initiative into the curriculum four
years ago as a way of developing
the social and emotional aspects
of childrens learning, helping them
lo grow |n conoonco by us|ng lho
outdoor environment more.
NEW PUBLICATIONS
FROM PEFC
The latest publication, Asion OetIihed
Timbet. Advoncing SusIoinoble
Trade in Asia provides an update ol
PEFC's progress in Asia.
All three publications can be
down|oaded from the webste but f
you'd |ke hard copes p|ease ema|
nfo@pefc.co.uk.
Several new titles have been added
to the PEFC library over the past
twelve months and are available lree
ol charge lrom PEFC.
The hrst, Why Labels Matter sets out
the business case lor using the PEFC
label on certihed products.
The second, a lolder containing
various case studies ol PEFC
certihed projects is designed to
promote project certihcation.
BRINGING THE HIGHEST ASSURANCES
OF SUSTAINABILITY TO YOUR
CONSTRUCTION SCHEME
PEFC PROJECT CERTIFICATION
2013 StakehoIder Event
Last year, PEFC published a revised
Chain of Custody standard to ensure
lhul CoC corl|cul|on prov|ooo un
oc|onl mochun|sm or compun|os
to demonstrate compliance with
ETP roqu|romonls. Our Aulumn
stakeholder event therefore
concentrated on the responsible
sourcing of forest products and the
|mp|omonlul|on o lho ETP. Moro
lhun 1CC oo|ogulos ullonooo lo |ourn
more about the European Regulation
and how leading companies and
organisations are implementing it.

Speakers from a range of sectors
shared their experiences including
Michael Kearney, National
Mousuromonl Oco (lho compolonl
uulhor|ly or onsur|ng ETP
compliance in the UK), Steve Cook
of Willmott Dixon and chair of the
UK Contractors Group Materials
Working Group, Nina Happonen
of Metsaboard and Jacqueline
Macalister of McDonalds Europe.
Alun Watkins of PEFC UK explained
how PEFC CoC corl|cul|on cou|o
ho|p corl|oo compun|os mool ETP
due diligence requirements.
STAKEHOLDER ENGAGEMENT
FORESTRY
Photo Les Starling
Jacqueline
Macalister
04
As in previous years, the focus behind
PEFCs engagement with public and
private sectors was linked to the most
topical issues and focused on key
po||cy or|vors. ln 2C13, ongugomonl
concentrated on the implementation and
|mpucl o lho Europoun n|on T|mbor
Pogu|ul|on (ETP), lho Oovornmonl's
ongoing implementation of the
Conlru| Po|nl o Exporl|so on T|mbor
(CPET) po||cy uno lho |nlrooucl|on o
sustainability criteria for biomass in
Augusl 2C13.
WHITEHALL DEFRA, DECC AND
GOVERNMENT PROCUREMENT SERVICE
ln Augusl 2C13, lho Dopurlmonl or
Energy and Climate Change (DECC)
adopted a new biomass sustainability
cr|lor|u. Tho lho now cr|lor|u uro busoo
on lho Oovornmonl's K T|mbor
Procurement Policy Principles which
recognise both PEFC and FSC as
providing assurances of sustainable
sourcing.
PEFC met with both Defra to
o|scuss CPET oovo|opmonls, urlhor
amendments to the Forest Law
Enorcomonl Oovornunco uno Truoo
Pogu|ul|on (FLEOT), vo|unlury
Partnership Agreements and sustainable
b|omuss. Tho mool|ng u|so prov|ooo
PEFC with an opportunity to be updated
on the Grown in Britain initiative. PEFC
and representatives of Grown in Britain
discussed how sustainable forest
munugomonl corl|cul|on wou|o l
alongside the Grown in Britain standard.
PEFC also met with the Government
Procurement Service to discuss
how CPET wus bo|ng upp||oo |n
the frameworks developed by the
Government Procurement Service and
to encourage the adoption of inclusive
timber policies in key Government
Agencies.
DEVOLVED AND LOCAL GOVERNMENTS
In previous years, PEFC has held a
series of engagement meetings with
decision-makers and policy-makers in
the Devolved Governments. Following
engagement with elected representatives
uno pub||c soclor oc|u|s |n Wu|os uno
Scol|uno |n 2C11 uno |n orlhorn lro|uno
|n 2C12, |n 2C13, PEFC oxpunooo |ls
outreach to Scotland Excel, the Centre
of Procurement Expertise for local
authorities in Scotland.
Discussions at the meeting with
Scotland Excel centred on the tendering
process for providing evidence of Chain
o Cuslooy corl|cul|on or supp||ors
participating in public sector procurement
processes in Scotland.
LOOKING AHEAD
Tho noxl CPET Pov|ow wh|ch |s
scheduled to start towards the end
o 2C14 w||| prov|oo u s|gn|cunl
opportunity for issue-led engagement
with relevant stakeholders. In preparation,
PEFC will continue intelligence gathering
and bi-annual meetings with Defra to
mu|nlu|n un ongo|ng o|u|oguo on CPET
developments and the implementation of
lho ETP |n lho K.
By consistently widening our public
affairs outreach, PEFC will continue its
cumpu|gn lo onsuro lhul corl|cul|on,
responsible timber procurement and
sustainable forest management are
understood, implemented and enforced
across all levels of Government in the
UK.
PEFCS PUBLIC AFFAIRS OUTREACH
P
h
o
t
o

D
a
v
i
d

I
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i
f
f
In 2013, PEFC's pub|c affars campagn across Natona|,
Devo|ved and Loca| Government and the pub|c sector
n the UK contnued to run successfu||y a|ongsde ts
wder corporate and ndustry engagement.
05
Ono o lho mosl oxc|l|ng oovo|opmonls
across the UK construction landscape
is the growth and increased use of
engineered timber products and solid wood
building solutions such as Cross Laminated
T|mbor (CLT) uno O|u|um. Thoso uro
recognised as a popular and fashionable
way to build strong, sustainable and stable
structures as well as bringing a striking
architectural dimension to modern building
design.
Th|s your, PEFC K wus |nvo|voo |n u
p|onoor|ng ugsh|p conslrucl|on projocl
|n Wosl Lonoon wh|ch huo CLT ul |ls
core. Kingsgate House, a seven-storey
residential scheme located on the Kings
Pouo, wus lho rsl mujor conslrucl|on
project in the world to achieve PEFC
Projocl Corl|cul|on.
KINGSGATE HOUSE & PROJECT
CERTIFICATION
Designed by Horden Cherry Lee Architects
(HCL) and built by main contractor Willmott
D|xon, K|ngsgulo Houso prov|oos 43
affordable residential units and contains
1C92m
3
o PEFCcorl|oo CLT supp||oo by
KLH UK.
Tho pursu|l o Projocl Corl|cul|on or lh|s
mujor conslrucl|on projocl wus u g|obu| rsl
PROMOTING THE USE OF TIMBER
WOOD AWARDS 2014
Last year PEFCcerted tmber was the heart
of many of the entres n The Wood Awards
once agan. The UK's premer archtecture
and furnture competton, recognses,
encourages and promotes outstandng
desgn, craftsmanshp and nsta||aton
usng wood throughout the UK and has an
evergrowng credb|ty wthn the desgn communty. Ths year PEFC,
n partnershp wth the Ma|aysan Tmber Counc|, w|| be a key sponsor
of the Wood Awards. The Wood Awards s the UK's premer award
scheme recognsng exce||ence across a range of areas usng tmber n
archtecture, bu|dng desgn and furnture.
for PEFC and the lessons learned from
the procurement and building process,
including the promotion of the project, will
bo vu|uub|o |n mov|ng Projocl Corl|cul|on
forward everywhere.
Tho schomo |s sol lo bo un oxomp|ur
sustainable building, achieving Code for
Suslu|nub|o Homos Lovo| 4, w|lh lho
PEFCcorl|oo CLT ucl|ng us u nuluru|, |ow
carbon and renewable alternative to steel
uno concrolo. Tho uso o CLT broughl
muny bonols lo lho projocl wh|ch |s s|loo
in a residential area of London. It saved
both time and money and also increased
the amount of embodied carbon on the
scheme.
After a detailed and rigorous auditing
procoss by BM TPADA o lho K|ngsgulo
supp|y chu|n, 1CC% o wooo prooucls
supp||oo lo lho projocl woro corl|oo us
legal and sustainable and the scheme
uch|ovoo 96.3% PEFCcorl|oo l|mbor by
vo|umo. Tho Projocl Corl|cul|on slulus
provides robust independent assurance that
all timber used on the project is from legal
and sustainable sources in line with the
Governments timber procurement policy.
Projocl Corl|cul|on ho|ps promolo
sustainable forestry by sending a positive
message down the supply chain back to
the forest that there is a market preference
or corl|oo mulor|u|s.
06
Wo uro u|so ul lho slugo whoro |nuonl|u|
global industry networks, such as the
Consumer Goods Forum (CGF), more
lhun 4CC compun|os rom 7C counlr|os
w|lh u lurnovor o moro lhun 2.5 lr||||on
Euros, h|gh||ghl PEFC corl|cul|on lo
their members as providing assurances
of responsible sourcing. Additionally,
PEFC corl|cul|on |s supporloo by somo
of the worlds leading forest, paper and
packaging companies who are members
of the Forest Solutions Group of the
World Business Council for Sustainable
Development. PEFC also features in the
Soft Commodities Compact, an initiative
lhul w||| soo lho rsl movors |n lho bun||ng
industry trade soft commodities, for
example timber, palm oil and soy, using
criteria to achieve zero net deforestation
in the soft commodities supply chains by
2C2C. Tho Sol Commoo|l|os' Compucl
is the result of collaboration between the
Banking Environment Initiative and the
Consumer Goods Forum, with advice from
the World Wildlife Fund, to establish how
the banking industry can help achieve this
goal.
It is developments such as these which
illustrate the broad acceptance of our
work; demonstrate to forest owners and
forest-processing companies alike the
vu|uo o PEFC corl|cul|on, uno oor
huge potential to transform the way timber
and timber products are produced and
processed towards shared sustainability
objectives.
But there is even more to come as we shift
up a gear. Asias growing population and
increasing purchasing power are shaping
the worlds forestry, timber trade and
consumption landscape. We have been
wor||ng w|lh slu|oho|oors |n As|uPuc|c
on |ssuos ro|uloo lo orosl corl|cul|on
for years, from standard setting to
system administration and compliance
vor|cul|on, uno wo uro now soo|ng lho
results of our commitment to the region.
China, the worlds largest manufacturer
of forest products, recently achieved
PEFC endorsement for the China Forest
Corl|cul|on Schomo, wh|ch prom|sos lo
substantially increase the uptake of PEFC
corl|cul|on uno |mprovo suslu|nub|o orosl
management both in China and in the
As|uPuc|c rog|on. Mu|uys|u uno Auslru||u
have already achieved PEFC endorsement;
Indonesia has applied for it; New Zealand
is soon to follow; and many other countries
in the region are currently developing their
systems, including India, Japan, Myanmar,
Nepal, the Philippines, South Korea and
Thu||uno.
l um conoonl lhul w|lh lhoso poworu|
forces in motion, we are moving closer
lo mu|nslroum|ng orosl corl|cul|on uno
sustainable forest management, with all
o |ls bonols |nc|uo|ng suoguuro|ng
forest biodiversity, sustaining livelihoods,
and contributing to rural development and
poverty alleviation.
PEFC INTERNATIONAL
BEN GUNNEBERG, SECRETARY GENERAL, PEFC COUNCIL
Minister of Plantation Industries and Commodities, YB DATUK AMAR DOUGLAS
UGGAH EMBAS welcomes delegates to the 2013 Kuala Lumpur General Assembly
I be|eve that our efforts to manstream
sustanab|e forest management through forest
certcaton are rapd|y approachng a tppng
point. We are now at a stage where over 258
m||on hectares of forests are PEFCcerted
where almost 16,000 companies have their
supp|y chan PEFCcerted and where count|ess
prvate and pub|c sector procurement po|ces
specfy PEFC certcaton.
07 GROWTH OF FORESTRY AND COC
GLOBAL GROWTH IN PEFC-CERTIFIED FOREST AREA
BREAKDOWN OF CERTIFIED FOREST AREA BY CONTINENT
UK CHAIN OF CUSTODY AND PEFC LOGO LICENSES
GLOBAL GROWTH IN CHAIN OF CUSTODY NUMBERS
2013 saw the global PEFCcertihed lorest area rise to
258 million hectares.
A little over 9% ol
the global lorest area
is currently certihed,
the majority ol it to
PEFC endorsed
schemes.
Chain ol Custody numbers
have remained lairly static
over the past year.
The increase in logo licenses
has been due to a concerted
ellort to encourage member
companies to use the logo on
product to demonstrate their
environmental credentials to
their customers.
Despite the challenging global economic climate, there
was a modest increase in global Chan ol Custody
numbers in 2013.
0
2005 2006 2013 2012 2011 2010 2009
YEAR
2008 2007
50
100
150
200
C
e
r
t
i

e
d

f
o
r
e
s
t

a
r
e
a

(
m
.

h
a
)
250
300
187.7
193.8
258.0
237.0
231.0
226.8
223.5
217.4
194.4
2005 2006 2013 2012 2011 2010 2009
YEAR
2008 2007
N
u
m
b
e
r

o
f

C
o
C

C
e
r
t
i

c
a
t
e
s
0
2000
4000
6000
8000
10000
2362
2901
9944
9548
7814 7688
6166
4420
3545
2005 2006 2013 2012 2011 2010 2009
YEAR
logo licenses
chain of custody numbers
2008 2007
N
u
m
b
e
r

o
f

H
o
l
d
e
r
s

/

C
o
n
t
r
a
c
t
s
0
300
600
900
1200
1500
Europe: 79,109,526
North America: 155,257,021
Central and South America: 3,659,468
Oceania: 10,451,490
Asia: 4,649,912
TOTAL
253m ha
61.3%
4.1%
1.8%
31.3%
1.4%
08 BOARD OF DIRECTORS
HUGH
MILLER
JOHN
SANDERSON
Hugh Miller OBE graduated in
lorestry lrom the niversity ol
Aberdeen in 1964. For the next two
decades he led research into lorest
biogeochemistry at the Macaulay
lnstitute lor Soil Pesearch, during
which time he published extensively
and in 1981 was awarded the
Scientihc Achievement Award ol
the lnternational nion ol Forest
Pesearch Organizations. ln 1984
he was appointed Prolessor and
Head ol the Department ol Forestry
in the niversity ol Aberdeen,
retiring in 2004. He is a Fellow ol
the lnstitute ol Chartered Foresters
and was President lrom 1994
to 1996. ln 200?, the lnstitute
awarded him its Medal. He was
made a Fellow ol the Poyal Society
ol Edinburgh in 1985.
1ohn Sanderson is Director,
Head ol Environment, K &
lreland lor PMKymmene, a
global lorest products group
with core businesses in printing
papers, speciality papers, label
materials and wood products.
1ohn has worked exclusively lor
PM since graduating lrom the
niversity ol Wales over twenty
years ago with a degree in wood
science and lorestry. lncreasing
environmental locus and concern
lrom PM's customers has led
to an unprecedented increase
in demand lor environmental
education, commitment and
perlormance lrom suppliers. 1ohn's
current role provides environmental
support and steering to PM's
K activities, including paper
production, paper sales, lorestry
and waste paper procurement.
STEVE
COOK
Steve Cook is a Principal
Sustainable Development Manager
lor Willmott Dixon's inhouse
sustainability consultancy Pe
Thinking. His role involves providing
technical and practical support
on materials, carbon, waste and
sustainable procurement to all
divisions within the Willmott
Dixon Group. Steve, who has
twenty lour years' experience in
the construction industry, also
chairs the K Contractors Group
(KCG) Materials Task Group
which, through engagement
with the construction industry, is
helping its members to develop
organisational policy to improve the
procurement ol materials. He is also
a Scheme Council member ol the
EcoPeinlorcement, responsible
sourcing scheme and cochair ol
the Grown in Britain.
PEFC s a membershp assocaton whch represents a wde range of
stakeho|der nterests. A|| PEFCcerted companes n the UK have the
opton to automatca||y become members of the organsaton.
Snce ts ncepton, PEFC UK has recognsed the mportance of havng
key stakeho|der groups represented on ts Governng Board. We are
fortunate enough to be ab|e to ca|| upon the expertse of senor gures
from a broad range of ndustry sectors nvo|ved n both forestry and
those tradng n forest products.
09
ROSS
BRADSHAW
JULIA
GRIFFIN
ROB
SHAW
MARK
WEATHERBED
Poss Bradshaw has worked in
the paper manulacturing industry
lor over twenty hve years. He
began his career in manulacturing
by training as a paper maker
in Aberdeen. Working in heavy
industry while living in a rural
setting, led to an early interest in
the ellects ol the paper making
industry on the environment and
the positive role it plays. He has
worked with a number ol industry
groups including the Paper and
Board Association and Stationer's
Company, the City ol London Livery
Company lor the Communications
and Content industries, where
he is a Liveryman. Currently,
Poss runs his own paper agency
business representing a number
ol speciality paper mills lrom the
SA and Europe, ollering bespoke
publishing and packaging papers.
1ulia Grilhn is a member ol B&O's
Social Pesponsibility team and
her area ol expertise is timber
and peat. B&O is a K home
improvement retailer, owned by
Kinghsher PLC. 1ulia works with
the Commercial, Ouality Assurance
teams and suppliers to monitor
timber and lorest products sourced
by the business to ensure they
meet the requirements ol B&O's
Timber & Paper Policy & Buying
Standard. She is also responsible
lor reporting perlormance to the
B&O Board, Kinghsher Board
Network and BM TPADA lor
Chain ol Custody. 1ulia has been
the timber expert in B&O's Social
Pesponsibility team lor nine years
and has hrsthand experience ol
the practicalities and challenges
associated with implementing and
adhering to a responsible timber
sourcing policy.
Pob Shaw FlCFor, CMlOSH,
graduated lrom Aberdeen niversity
in 1988 and joined Scottish
Woodlands Ltd. ln 1998 he helped
achieved FSC Pesource and Group
Scheme Management status lor
the Company, a hrst within the
K. Between 1999 and 2002 he
carried out international Certihcation
Consultancy work in Latvia and
Slovakia. ln 200? he was appointed
SEO & Contracts Director and now
oversees the tility and Landscaping
Division in addition to Certihcation
and Salety issues. Scottish
Woodlands runs one ol the largest
Group Certihcation schemes in the
K, and is dualcertihed, with the
ability to supply both FSC and PEFC
labelled timber into the major markets.
He retains an active interest in all K
Forest Certihcation issues, having
been a member ol the KWAS
Steering Group lor many years until
2010, and is the K Coordinator lor
CANZS - an international owners
and producers group which promotes
practical solutions lor Certihcation
issues globally.
Mark Weatherbed joined the
PEFC Board in 1anuary 2008,
representing the K paper and print
industry sectors. He has held senior
procurement positions in a number
ol global businesses lrom the
publishing, outsourcing, consultative
and packaging industry sectors, as
head ol raw materials sourcing. Mark
has been a key instigator and driver
ol sustainable sourcing programmes
in many prominent private and public
sector contracts. He currently serves
as Procurement Director, Head ol
Paw Materials, Europe lor DS Smith.
PAT
BURKE
Pat Burke works at Whitmore's
Timber, a specialist hardwoods
importer, manulacturer &
distributor. His timber trade
experience is eclectic, having
held previous senior positions
with Alexander Cleghorn, Arnold
Laver, Graham Group, 1ewson
and Meyer lnternational. Pat has
chaired the K Timber Trade
Federation's National Soltwood
Division and also the North East
Timber Trade Association. He has
also held positions within Forests
Forever and various other TTF
commodity committees as well as
serving on the Boards ol the British
Woodworking Federation, Proskills
and the Wood lndustry Training
Board.
DAVID
LESLIE
David Leslie is General Manager,
Harvesting & Operations lor 1ames
1ones and Sons Ltd, Scotland's
largest independent sawmiller
and one ol the leading suppliers
ol British timber in the K. He
is responsible lor the Group's
roundwood procurement, sawmill
coproducts and haulage. ln
addition to his PEFC role, David is
a member ol the Grampian Forestry
Forum, a board member ol SlPT
(The Strategic lntegrated Pesearch
in Timber), a member ol both the
lnstitute ol Chartered Foresters and
the steering group ol the Forest
lndustry Salety Accord (FlSA).
David was appointed to the PEFC
K Board in 1anuary 2012.
10
STATEMENT OF DIRECTORS
RESPONSIBILITIES
The directors are responsible lor
preparing the Peport ol the Directors
and the hnancial statements in
accordance with applicable law and
regulations.
Company law requires the directors
to prepare hnancial statements lor
each hnancial year. nder that law the
directors have elected to prepare the
hnancial statements in accordance with
nited Kingdom Generally Accepted
Accounting Practice (nited Kingdom
Accounting Standards and applicable
law). nder company law the directors
must not approve the hnancial
statements unless they are satished
that they give a true and lair view ol the
state ol allairs ol the company and ol
the surplus or dehcit ol the company lor
that period. ln preparing these hnancial
statements, the directors are required to:
select suitable accounting policies
and then apply them consistently;
make judgements and accounting
estimates that are reasonable and
prudent;
prepare the hnancial statements on
the going concern basis unless it is
inappropriate to presume that the
company will continue in business.
The directors are responsible lor
keeping adequate accounting records
that are sulhcient to show and explain
the company's transactions and disclose
with reasonable accuracy at any time the
hnancial position ol the company and
enable them to ensure that the hnancial
statements comply with the Companies
Act 2006.
They are also responsible lor
saleguarding the assets ol the company
and hence lor taking reasonable steps
lor the prevention and detection ol lraud
and other irregularities.
STATEMENT AS TO DISCLOSURE OF
INFORMATION TO AUDITORS
So lar as the directors are aware,
there is no relevant audit inlormation
(as dehned by Section 418 ol the
Companies Act 2006) ol which the
company's auditors are unaware, and
each director has taken all the steps
that he or she ought to have taken
as a director in order to make himsell
or hersell aware ol any relevant audit
inlormation and to establish that the
company's auditors are aware ol that
inlormation.
AUDITORS
The auditors, MMG Archbold CA, will
be proposed lor reappointment at
the lorthcoming PEFC K Ltd Annual
General Meeting.
This report has been prepared in
accordance with the special provisions
ol Part 15 ol the Companies Act 2006
relating to small companies.
ON BEHALF OF THE BOAPD:
H G Miller - Chairman
AUDITED ACCOUNTS
DIRECTORS
The drectors shown be|ow have
he|d ofce durng the who|e of
the perod from 1 August 2012 to
the date of ths report.
H G M||er

P N Bradshaw

M P Weatherbed

Mrs 1 Grfn

R Shaw

1 A Sanderson

D S Les|e

P 1 Burke

Other changes n drectors
ho|dng ofce are as fo||ows.

S Cook apponted 11 October
2012
11
REPORT OF THE INDEPENDENT
AUDITORS TO THE MEMBERS OF
PEFC UK LIMITED
We have audited the hnancial
statements ol PEFC K Limited lor the
year ended 31 1uly 2013. The
hnancial reporting lramework that
has been applied in their preparation
is applicable law and the Financial
Peporting Standard lor Smaller Entities
(ellective April 2008) (nited Kingdom
Generally Accepted Accounting Practice
applicable to Smaller Entities).
This report is made solely to the
company's members, as a body, in
accordance with Chapter 3 ol Part 16
ol the Companies Act 2006. Our audit
work has been undertaken so that we
might state to the company's members
those matters we are required to state to
them in a Peport ol the Auditors and lor
no other purpose. To the lullest extent
permitted by law, we do not accept or
assume responsibility to anyone other
than the company and the company's
members as a body, lor our audit work,
lor this report, or lor the opinions we
have lormed.
RESPECTIVE RESPONSIBILITIES OF
DIRECTORS AND AUDITORS
As explained more lully in the Statement
ol Directors' Pesponsibilities, the
directors are responsible
lor the preparation ol the hnancial
statements and lor being satished that
they give a true and lair view.
Our responsibility is to audit and express
an opinion on the hnancial statements
in accordance with applicable law and
lnternational Standards on Auditing (K
and lreland). Those standards require
us to comply with the Auditing Practices
Board's (APB's) Ethical Standards
lor Auditors, including "APB Ethical
Standard Provisions Available lor Small
Entities (Pevised)", in the circumstances
set out in note ten to the hnancial
statements.
SCOPE OF THE AUDIT OF THE
FINANCIAL STATEMENTS
An audit involves obtaining evidence
about the amounts and disclosures in
the hnancial statements sulhcient to give
reasonable assurance that the hnancial
statements are lree lrom material
misstatement, whether caused by lraud
or error. This includes an assessment
ol: whether the accounting policies
are appropriate to the company's
circumstances and have been
consistently applied and adequately
disclosed; the reasonableness ol
signihcant accounting estimates
made by the directors; and the overall
presentation ol the hnancial statements.
ln addition, we read all the hnancial and
nonhnancial inlormation in the Peport
ol the Directors to identily material
inconsistencies with the audited hnancial
statements. ll we become aware ol
any apparent material misstatements
or inconsistencies we consider the
implications lor our report.
OPINION ON FINANCIAL STATEMENTS
ln our opinion the hnancial statements:
give a true and lair view ol the state
ol the company's allairs as at 31
1uly 2013 and ol its surplus lor the
year then ended;
have been properly prepared in
accordance with nited Kingdom
Generally Accepted Accounting
Practice applicable to Smaller
Entities; and
have been prepared in accordance
with the requirements ol the
Companies Act 2006.
OPINION ON OTHER MATTER
PRESCRIBED BY THE COMPANIES
ACT 2006
ln our opinion the inlormation given
in the Peport ol the Directors lor the
hnancial year lor which the hnancial
statements are prepared is consistent
with the hnancial statements.
MATTERS ON WHICH WE ARE
REQUIRED TO REPORT BY
EXCEPTION
We have nothing to report in respect
ol the lollowing matters where the
Companies Act 2006 requires us to
report to you il, in our opinion:
adequate accounting records have
not been kept, or returns adequate
lor our audit have not been received
lrom branches not visited by us; or
the hnancial statements are not
in agreement with the accounting
records and returns; or
certain disclosures ol directors'
remuneration specihed by law are
not made; or
we have not received all the
inlormation and explanations we
require lor our audit; or
the directors were not entitled to
prepare the hnancial statements
in accordance with the small
companies regime and take
advantage ol the small companies'
exemption in preparing the Peport
ol the Directors.
Derek Grant MA (Hons) CA (Senior
Statutory Auditor)
lor and on behall ol
MMG Archbold, Statutory Auditor
Chapelshade House
?884 Bell Street
Dundee DD1 1PO
nited Kingdom
?th April 2014
FOR YEAR ENDING 31
ST
JULY 2013
12
2%
26%
7%
36% 23%
6%
450,902
BREAKDOWN OF PEFC UK LTD EXPENDITURE
FOR THE YEAR ENDED 31
ST
JULY 2013
PEFC UK INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31
ST
JULY 2013
INCOME AND EXPENDITURE
SUBSCRIPTIONS
AND SPONSORSHIPS
ADVERTISING, COMMUNICATIONS AND CONSULTANTS
TRAVEL, SUBSISTENCE
& SUNDRY EXPENSES
PEFC COUNCIL
FEES
OFFICE, RENT,
SALARIES &
ADMINISTRATION
MEETINGS, INCLUDING
BOARD AND AGM
2013 2012

Turnover 484,031 449,347
Administrative expenses 450,902 402,928
33,129 46,410
other operating income 15,498 12,156
Operating Surplus/(dehcit) 48,62? 58,5?5
lnterest receivable and similar income 24 96
48,651 58,6?1
lnterest payable and similar charges 45?
SurpIusI(dehcit) on ordinary activities before taxation 48,851 58,214
Tax on surplus/(dehcit)on ordinary activities ?,133 (259)
SurpIusI(dehcit) for the FinanciaI Year 41,518 58,473
13
The Malaysian Timber Certihcation
Scheme (MTCS) became the hrst
tropical timber certihcation system in
Asia to be endorsed by PEFC back in
2009, but other Asian countries proved
slow to lollow their regional lead.
Five years on, Asia contributes less than
1% ol the global certihed lorest area but
this is changing and the good news is
that interest in lorest certihcation is now
gaining momentum in the region. Several
Asian countries are in the process
ol developing national certihcation
systems with the eventual aim ol
PEFC endorsement. PEFC is currently
providing ongoing guidance and support
to such processes in lndia, 1apan,
Myanmar, Nepal, Philippines, Thailand
and South Korea.
This year, the Chinese Forest
Certihcation Scheme (CFCS) became
the second Asian national lorest
certihcation system to successlully
achieve PEFC endorsement. The
lndonesian Forestry Certihcation
Cooperative (lFCC) submitted its
national system lor endorsement at the
end ol 2013. At the last PEFC General
Assembly, delegates lrom eleven
countries participated in a sustainable
lorest management system development
workshop.
PEFC has established olhces in China
and 1apan to promote awareness ol
PEFC certihcation, especially through
growing demand lor Chain ol Custody
certihcation. lncreasing the presence
ol PEFC certihcation within these two
countries is a strategic priority lor PEFC
globally, given the relevance ol their
markets in the international trade ol
timber and lorestbased products, and
their potential to ultimately inhuence
lorest management practices. As a
result, the number ol companies in
the region opting lor PEFC Chain ol
Custody certihcation has grown 14lold
in the past six years. At the end ol 2013,
more than 800 companies had invested
in PEFC certihcation in order to supply
increasingly discerning customers with
assurances ol responsible sourcing.
PROGRESS IN ASIA-PACIFIC
Forests in Asia are critically
mportant. The regon has
a strong nuence on the
envronmenta| sustanab|ty of
nternatona| forest products,
makng t vta| to bu|d supp|y
chan capacty and ncrease the
ava|ab|ty of certed tmber
across the regon. They a|so
contan most of the AsaPacc
regon's terrestra| bodversty.
Countries currentIy
deveIoping nationaI
forest standards with
a view to seeking PEFC
endorsement in the future
PEFC UK
Shelheld Technology Parks
Cooper Buildings
Arundel Street
Shelheld S1 2NS
t +44 (0)114 30? 2334
e inlopelc.co.uk
w www.pelc.co.uk
PEFC COUNCIL
World Trade Centre 1
10 Poute de l'Aeroport
Geneva 1215
Switzerland
t +41 22 ?99 4540
e inlopelc.org
w www.pelc.org
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