Key findings
The research found that in Europe, forest certification increases revenue generation. While certification costs tend to rise with forest area, they often stabilise at larger scales, especially through mechanisms like group certification. The Czech Republic and the Netherlands show particularly high net economic gains from certification, suggesting effective economic exploration of forest resources.
In practice, the researchers suggest that forest owners and managers align their strategies with broader economic trends to optimise their operations.
Beyond economic benefits
Beyond profit, certification reduces environmental, social, and reputational risks. Through engagement with auditors and stakeholders, forest managers can identify potential environmental and social issues, helping to manage reputational risk for the company. Evidence of this risk mitigation is particularly important for investors seeking to support positive social and environmental outcomes and responsible timber and non-timber forest product markets.
The researchers also found evidence of other favourable social and economic outcomes: certification can connect forest managers to global, sustainability-driven markets and satisfy market demand for sustainably and responsibly produced goods.
Finally, certification aligns with key European Union strategies and policies such as the Regulation on Land Use, Land-Use Change and Forestry (LULUCF), which outlines how the land-use sector contributes to climate goals, and the Nature Restoration Law, which supports biodiversity conservation and ecosystem restoration.
Methodology
Researchers Sofia Corticeiro, Gonçalo Rodrigues Brás, Margarida Tomé, Ana Isabel Lillebø, Helena Vieira used 2020 as the reference year due to data availability. They drew on publicly accessible databases for information on total and certified forest areas and key economic indicators like intermediate consumption, consumption of fixed capital, gross value added, and outputs from forest-related activities. They also considered environmental metrics including biodiversity and habitat protection indicators, long-term forest management plans, and SDG 15 targets. The study included only forest management certification, not Chain of Custody certification, and used correlation analysis to identify trends and evaluate economic returns on certified forest management practices.
Read the study here.