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To combat the growing risks from unsustainable business practices, governments and regulators worldwide require corporates to bring greater transparency and reporting to their sustainability impact. Source: Deloitte When it comes to reporting, however, arguably, not all industries are the same. Forests are key to addressing both climate change and biodiversity loss, two of the most urgent challenges for the global community, as they have the ability to sequester carbon and host 80% of terrestrial plant and animal species. The Nordics, despite having only 1.6% of the world’s forested area, account for 13% of the world’s wood and pulp production. They provide the case for this article. If reporting (and other) regulations are to encourage forestry organizations, and their stakeholders, to make more sustainable choices, more needs to be done to increase understanding of the specific sustainability impacts of the industry. Three key areas should be addressed: reporting models, underlying data, and success cases. Models provide the measurement frames but are not yet fully developed or uniformly adopted. Forestry organizations, like peers in other industries, report on greenhouse gas (GHG) emissions from their own operations and value chain (known as scope 1,2 and 3 through the methods developed by the Green House Gas Protocol). However, forestry also has the potential to remove carbon through the uptake of carbon dioxide, storage of carbon, and the contribution of forest-based products in replacing fossil raw materials. The models for accounting of this removal are yet to be adopted uniformly. In addition, the Science Based Targets Initiative presented the final version of their guidance on setting targets for the Forest, land and agriculture (FLAG) sectors at the end of 2023. Whereas CLEAR, a different set of guidelines, has already been adopted by several large Swedish forest companies. This hampers comparability of data and communication to broader stakeholder groups. Reporting of biodiversity is even less mature which means individual actors need to interoperate and devise more of their own reporting metrics. Comparability is further aggravated through regional variations in forest type, conditions and management practices which entails a difference in what is relevant to report on. Ultimately measurement models and methods need to be integrated into internal management control systems that can help organizations implement strategies and investors to allocate resources. Recent progress is encouraging, yet more needs to be done to strengthen the models for effective decision making. Data provides input to the models but is difficult to gather and interpret. Challenges in climate reporting are compounded by the difficulty in capturing data. For instance, in addition to the notoriously difficult Scope 3 emissions, forestry companies can account for their FLAG emissions, which include emissions related to restoring natural ecosystems, improving forest management practices, and enhancing soil carbon sequestration. The difficulty of collecting reliable data often results in companies adopting modelled estimates with varying degrees of accuracy. Companies are also increasingly trying to gather primary and secondary data. Differences in the unique makeup of soils, local climate, or weather conditions can affect emissions and aggravate accounting. This fragmented landscape has entailed a real risk of reporting on “the same metrics but in different ways”. There are also difficulties in capturing biodiversity data. However, new technologies offer solutions. For instance, remote sensing to create a forest digital twin has shown biodiversity on a very granular level. Initiatives like this provide understanding of complex cause and effect of different measures on biodiversity. “We do not only need metrics and data but a clearer understanding of future scenarios for the industry,” said Katarina Kolar, Head of Business Improvement & Business Control, SCA. The question is how to act on available data. What will the role of the organization be in reporting and controlling if the knowledge about climate science or biodiversity is insufficient to interpret the signals provided by the collected data? Cases can provide a map for the do’s and don’ts – but are still evolving. Beyond reporting of metrics, there is also a need for examples of initiatives and concrete scenarios that provide viable pathways for the industry to both drive financial growth and address climate impact. This relates to the more narrative elements of reporting on progress. Examples could relate to good forest management practice, which is particularly relevant for an industry tackling a divergence in opinion on what constitutes good forest management practice (a source of major debate between the EU and the Nordics on regulatory design). Examples could also relate to innovation in technology and business models. For instance, several companies pilot novel carbon capture technology. One large Swedish forestry company is currently analyzing the potential to offer Carbon Capture and Storage as well as carbon credits to their customers, potentially making their products carbon neutral. Other examples relate to product development projects where fibre-based products could replace plastics. This would imply the avoidance of emissions, again something that the current measurement system does not capture fully. Scaling of good examples and broad backing of sustainable scenarios will require sharing knowledge from successful deployments and business models that also secure a return on investment. The drive to measure sustainability impact has arguably never been stronger. The forestry industry has huge potential to either improve or aggravate sustainability efforts. Therefore, it is important that actors within and around the industry have good information to make the right decisions and do justice to the sustainability benefits that this industry can provide. An evolving regulatory environment with potential broad implications for forest companies combined with a fragmented reporting landscape diminishes the usability of information for stakeholders as a steering tool. Actors within the industry should seize the opportunity to better shape and align on models, metrics, and narratives that provide clarity into an industry central to climate action and biodiversity. The potential benefits of such a venture could be worth the effort.

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The EU has imposed anti-dumping duties on Chinese plywood imports with provisional levies of up to 62.4% due to the damaging uptick in hardwood plywood imports that has damaged local producers. Source: Timberbiz The Greenwood Consortium complained about the Chinese plywood trade in 2024 and has welcomed this latest move. The Greenwood Consortium is an ad-hoc group of EU hardwood plywood producers, established in 2023. It represents producers from Bulgaria, the Czech Republic, Finland, France, Hungary, Latvia, Italy, Poland, and Spain. It was reported that Chinese exporters were disguising hardwood products in anticipation of levies to be applied by altering imports making them appear to be softwood or by sending them in through other countries. The Russian/Ukrainian conflict meant there was a gap to be filled of which China sought to take advantage. There has also been speculation that Russian plywood could come in via China. The EU has already imposed tariffs on a number of Chinese goods including motor vehicles.

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US Senator Cindy Hyde-Smith has introduced legislation to allow consumers to claim a tax credit for purchasing solid American hardwood products for their homes, a measure intended to shore up a hard-hit American industry made up of small sawmills and family-owned secondary manufacturers. Source: Timberbiz The Solid American Hardwood Tax Credit Act (S.1964) would allow individual taxpayers to include solid American manufactured hardwood products as qualified home energy efficiency improvements under the Energy Efficient Home Improvement Credit. The credit would apply to any flooring, paneling, millwork, cabinetry doors, cabinetry facing, window, or skylight, comprised of deciduous trees grown and processed in the United States. “Mississippi’s sawmills and rural communities that depend on timber have been hit hard by the same economic challenges facing the entire industry.  This bill is designed to support the domestic hardwood industry and the jobs it provides while making American-made hardwood products more affordable for families,” Ms Hyde-Smith said. “Our goal with this legislation is to preserve rural manufacturing jobs and sawmill operations that are critical to local economies and national security supply chains, while encouraging the use of environmentally sustainable wood products over cheap, Chinese-made synthetic alternatives.” Despite the significance of the forestry sector to Mississippi’s economy, the state’s hardwood industry has been affected by a severe national decline. The domestic hardwood-grade lumber market has fallen from 6.5 billion board feet to less than 2 billion board feet in the past 26 years. Much of this decline is associated with foreign substitutes that often contain harmful chemicals and larger carbon footprints than sustainably harvested American hardwoods. The Solid American Hardwood Tax Credit Act would amend the Internal Revenue Code to qualify American hardwood products for the home improvement energy efficiency tax credits under Section 25c of the Internal Revenue Code while offsetting the cost of the bill by eliminating a costly bonus tax credit created in the Inflation Reduction Act (IRA). The IRA bonus credit provides increased subsidies for carbon capture projects only if union labor requirements are met.  As such the bill would end a provision that allows the federal government to pick winners and losers. S.1964 also falls in line with a March executive order issued by President Trump, which called for the immediate expansion of American timber production and tasked the secretaries of Interior and Agriculture to craft legislative proposals to improve timber production and forest management.

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Pan Pac has issued its 2025 sustainability report – A sustainable future together. In addition to highlighting the progress made towards the goals established in 2022, the report covers the impact of 2023 Cyclone Gabrielle on operations and recovery. Source: Timberbiz The document is a sustainability report for Pan Pac Forest Products, detailing the company’s operations, resilience efforts following Cyclone Gabrielle, and its commitment to sustainable forestry practices in New Zealand. It includes a large feature on its forests and the ways in which it is building resilience for climate change events, increasing environmental protection, supporting biodiversity and contributing to the community. Pan Pac Forest Products is one of New Zealand’s largest fully integrated forest products companies, focusing on sustainable forestry and contributing significantly to the economy. The company has faced challenges, including the impact of Cyclone Gabrielle, but remains committed to its purpose of providing tailored forest products. You can download the document here.  

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Launceston Church Grammar School Year 10 Agriculture students stepped out of the classroom and into the paddock for a hands-on learning experience about the benefits of integrating trees into farming landscapes. Source: Timberbiz Hosted by Private Forests Tasmania (PFT) in collaboration with the Forest Education Foundation and Campbell Town farmer John Taylor, the session offered students a rare chance to witness first-hand the value trees bring to farms beyond just timber. The day began with a walk through a three-year-old radiata pine shelterbelt, where PFT Forestry Specialist Dion McKenzie and Mr Taylor discussed the shelterbelt’s role in erosion control, animal welfare, and boosting overall farm productivity. Mr Taylor also shared the challenges he faced in establishing the trees and the positive changes he is already seeing. “John chose to plant trees for the future, even though he won’t get to use the money they make – it’s for his children,” student Chloe said. At a second location, students took measurements of tree heights and diameters to estimate the carbon stored in approximately 20-year-old plantation trees. “Putting numbers (kilograms of carbon) to individual trees was a real eye-opener and got students thinking about how much one tree stores versus how much carbon can be stored across a farm in plantation stands,” Mr McKenzie said. Student Tommy noted the environmental benefits: “The trees helped lower the water table, making the ground less salty for pasture and trees to grow better.” “The higher the density of the wood, the more carbon it holds – eucalypts versus the pine trees.” The practical fieldwork sparked engaging conversations about carbon sequestration, biodiversity, and how strategic planting benefits not only livestock and crops but entire landscapes. Forest Education Foundation Manager Darcy Vickers said students also gained insight into the wide range of careers available in forestry, many of which they hadn’t considered before. “Having Dion available to work with the students brought valuable professional insight to the day. His personal agriculture story really resonated with the students and helped them connect the science with real-world outcomes,” Mr Vickers said. “We hoped to connect the dots between trees, productivity and future land use in 90 minutes – and I think we achieved that. “It’s clear they came away with a better understanding of how forestry and agriculture work together – and that there’s a place for them in the future of both.” Grammar teacher Tanya Beaumont said student feedback echoed the value of learning in a real-world context. “They didn’t know that forestry had lots of different jobs and that they can work in many areas, not just in planting or harvesting trees,” Ms Beaumont said. “The systems are linked, and the wool and tree products benefit each other. “The students got more from learning in the paddock than if I had presented the same material to them in the classroom.”  

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A landmark survey has uncovered a hidden koala population living on the fringe of a major city, using thermal drone searches with spotlight verification and statistical modelling. Source: Timberbiz The study, funded by WWF-Australia and led by the University of Newcastle, is the largest and most accurate peer-reviewed koala survey to date, estimating a population of 4,357 koalas across 67,300 hectares of bushland spanning 208 sites in New South Wales. University of Newcastle’s Dr Ryan Witt said they were surprised to find Sugarloaf State Conservation Area, located inland of Newcastle, is home to a significant population of more than 290 koalas. “The koala population at Sugarloaf seems to be a bit of a secret even though it’s in close proximity to Newcastle,” Dr Witt said. Dr Witt said while there have been sporadic reports of koala sightings in Sugarloaf, there was no indication of a large or stable population until now. “This population has flown under the radar—proving that koalas can survive, and even thrive, in peri-urban areas. These fringe habitats need protection and monitoring just as much as pristine reserves,” Dr Witt said. Local resident and Gamilaraay and Wiradjuri man, Daryn McKenny, grew up in the suburb of Killingworth which borders Sugarloaf. “Sugarloaf was practically my backyard as a kid. But we never saw koalas there. “It wasn’t until about five years ago that I first spotted a koala at Sugarloaf,” Mr McKenny said. Since then, Mr McKenny has dedicated hundreds of hours to capturing the secret lives of Sugarloaf koalas on camera. “Old records showed only around a dozen koalas documented, but our work over these past years was showing otherwise. To know there’s close to 300 is just incredible though,” Mr McKenny said. Mr McKenny was invited to help the research team survey Sugarloaf and share his connection to the land. “Daryn has a huge amount of knowledge of the land and the koalas at Sugarloaf. We were grateful to learn from him and share methods to find these cryptic animals,” Dr Witt said. Using thermal drones with spotlights for night surveys, the team could find a koala in less than two minutes in areas which previously took hours of searching on-foot. Shelby Ryan, a PhD candidate from the University of Newcastle and lead author of the study, said they look for a tiny yellow dot on-screen, which shows potential body heat in that area. “We navigate the drone towards heat spots and switch on the spotlight to see in real-time whether it’s a koala or another animal,” Mr Ryan said. While the use of heat detecting drones to find wildlife is not new, combining this method with spotlights to help scientists visually distinguish animals was unique to this koala study. “This method is much more reliable than using AI, which can mistake possums or other animals for koalas,” Mr Ryan said. The team surveyed a sample area of about ten per cent of the seven national parks studied. Multiple surveys were taken across different nights to improve accuracy of the koala counts. A robust statistical model was developed to predict koala numbers across the entire national park allowing data to be captured on a much larger scale. “Our modelling reflects real-world environmental variation and not just a flat average. We considered factors like the terrain slope, tree coverage and height, and soil moisture to accurately represent koala abundance,” Mr Ryan said. Of the seven national parks surveyed, Maria National Park had the greatest density of koalas with 521 koalas predicted in 3,350 hectares. Dr Witt cautioned that density does not necessarily point to a thriving koala population though. “We also surveyed two areas that were burnt in the 2019-20 Black Summer bushfires – Lake Innes and Khappinghat. “We found the abundance of koalas at fire-affected sites was about two-thirds less than non-affected sites,” Dr Witt said. The study sets a new bar for best practice and can be applied to monitor other species of tree-dwelling marsupials in Australia and mammals across the world. “This kind of scale and precision is unparalleled in conservation, and data that we do not have across most species globally,” Dr Witt said. While past koala monitoring efforts have relied on access to land, Dr Witt said their model can be used to predict koala numbers in surrounding areas of private land, or in areas with inaccessible terrain. “We can now estimate how many animals are out there and where at scale,” Dr Witt said. The study is crucial to inform urgent conservation decisions across diverse landscapes. “It gives a solid scientific baseline for seven of the state’s koala populations. We’ve located koalas that wouldn’t have been found on foot,” Dr Witt said. Darren Grover, WWF-Australia’s Head of Regenerative Country, said WWF supported this research because it has a goal to double the number of koalas in eastern Australia by 2050. “Achieving accurate abundance estimates is the holy grail of koala conservation. The work of Dr Witt and his team shows great promise towards that goal. Sugarloaf indicates when it comes to koalas there are still surprises. We need to know the location of significant populations, and to track their numbers, to better protect them,” he said. This study was published in the journal, Biological Conservation. It was funded by WWF-Australia and led by the University of Newcastle in collaboration with researchers from Taronga Conservation Society Australia, UNSW, and FAUNA Research Alliance.

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New Zealand Forestry Minister Todd McClay has introduced legislation that will put a stop to large-scale farm-to-forestry conversions delivering on a key election promise to protect the future of New Zealand food production. Source: Timberbiz “For too long, productive sheep and beef farms have been replaced by pine trees in the race for carbon credits. That ends under this Government,” Mr McClay said. “The Climate Change Response (Emissions Trading Scheme – Forestry Conversions) Amendment Bill will restrict wholesale conversions of farmland to exotic forestry by stopping LUC 1-5 land from entering the ETS and capping new ETS registrations on LUC 6 land. “It will also protect farmers’ ability to diversify – allowing up to 25 per cent of a farm to go into trees, while stopping the kind of blanket ETS planting that’s been gutting rural communities in places like the East Coast, Wairarapa, the King Country, and Southland.” As previously announced the new restrictions will take effect from 4 December 2024. The law will: Restrict farm conversions to exotic ETS forests on high-to-medium versatility farmland (LUC classes 1-6) A limit of 15,000 hectares per year for exotic conversions on medium versality farmland (LUC class 6) The annual limit of 15,000 hectares for LUC 6 farmland will be allocated by a ballot process, including a reserved quota for small block holders, with the first ballot proposed to be held in mid-2026. Allow for up to 25 per cent of a farm’s LUC 1-6 land to still be planted in exotic forestry for the ETS, ensuring farmers retain flexibility and choice. Protect specific categories of Māori-owned land, in line with Treaty obligations The Bill proposes time-limited transitional exemptions in rare cases for people who were in the process of afforestation prior to these changes originally being announced on 4 December 2024. To be eligible for a transitional exemption, applicants need to show sufficient evidence that they made a qualifying forestry investment between 1 January 2021 and 4 December 2024. Transactions that commenced after this date will not be eligible to register in the ETS. The applicant will need to demonstrate that the investment relates to the specific Land Use Capability (LUC) class 1–6 land they are applying to register in the ETS. Registry of 25% of LUC 1-6 land will be registered against the properties title to restrict further planting as a result of subdivision. “Labour’s careless ETS settings turbocharged the sell-off of our farming base. They let speculators put short-term profits ahead of long-term food production. That was careless – and it ends now,” Mr McClay said. “This Government is backing farmers, restoring balance, and making sure the ETS doesn’t come at the cost of New Zealand’s rural economy. “This policy is pro-farming, pro-food production, pro-commercial forestry and pro-rural New Zealand.” The legislation is now before Parliament and is to come into force October 2025.

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Brazilian company Suzano is set to become the new majority owner of the Kimberly-Clark Australia Millicent Mill as part of an international deal involving the Kimberly-Clark Corporation of the USA. Source: The SE Voice Suzano already supplies imported pulp to the Millicent plant which has 400 company employees and contractors. The local workforce received a memo from management on Friday advising them of the sale. Speculation about a possible sale had been circulating for months. It has been a tumultuous time at the Millicent Mill with its largest union with 270 members splitting from the Construction Forestry Mining and Energy Union. The current enterprise agreement expires at the end of this month and a new deal has yet to be finalised. Production began at Millicent in 1960 with a joint venture of Australian companies Cellulose Australia Limited and Australian Paper Manufacturers. The mill was then known as Apcel after blending the names of its two owners. American firm Kimberly-Clark took 50% stake three years later and then moved up to 100% ownership in 2001 after receiving the green light from the Foreign Investment Review Board. At its peak, the Millicent Mill had 1000 employees. Suzano will hold a 51% stake in the new entity, with the Kimberly-Clark Corporation retaining 49%. According to the deal endorsed by all Kimberly-Clark Corporation directors, the Brazilians have the right to move to 100% ownership. The partnership will encompass the Millicent Mill and 21 other manufacturing facilities across 14 countries and approximately 9000 employees. These assets generated net sales of $US3.3b in 2024. The Australian and New Zealand businesses of Kimberly-Clark provided 11% of this turnover.

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Dr Fabiano Ximenes, one of Australia’s leading forest and wood products carbon researcher, Professor Tripti Singh, director of the National Centre for Timber Durability and Design Life, and Professor Keith Crews, head of Australia’s Advanced Timber Manufacturing Hub, are among the speakers already lined up for this year’s Gottstein Wood Science Course. Source: Timberbiz Scheduled for 7-12 September, participants will divide their time between Wangaratta in Victoria, Albury in New South Wales, and Canberra in the ACT. It will also involve field trips to Alpine Truss, Alpine MDF facilities and Xlam’s state-of-the-art cross-laminated timber plant. Helen Murray, course convener, promised that “from kick-off to the final whistle, leading subject matter experts and prominent industry people will deliver the sessions. “At ANU, a hands-on laboratory session will have participants examine the cellular structure of timber under a microscope, guided by Dr Matthew Brookhouse. (While) Professor Peter Kanowski will canvas the big picture of a timber circular economy.” Ms Murray said the course fees have been unchanged since the 2023 course, with the Trust absorbing all related cost rises. “The registration fee of $3,995 also has several inclusions: accommodation for two nights at Albury NSW, transport for the site tours, luxury coach transfer from Albury to Canberra, ACT, two casual dinners plus the course celebration dinner. “On top of learning experiences is the relaxed social environment where participants will network with participants from across the value chain,” Ms Murray said. In addition, she said, participants will get: An understanding of wood properties insight into the processing of different timbers for different end uses insight into evolving issues including sustainability, durability, the role of timber in a low-carbon economy, innovation and technology, the rigour of compliance, and supply/demand trends and refreshed motivation.

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Timber Queensland is calling on businesses across the state’s forest and timber industry to encourage their employees and networks to apply for the 2024–2025 Growth Scholarships Program, with just three weeks remaining before applications close on 30 June. Source: Timberbiz The scholarships offer up to $10,000 in funding for early and mid-career professionals (aged 18–45) working or studying in Queensland’s forest and timber supply chain to pursue a professional development opportunity of their choice without needing to leave their current role or rely on internal company funding. “This program backs potential and builds opportunity,” said Timber Queensland Strategic Relations and Communications Manager Clarissa Brandt. “These scholarships are an investment in the talent already working in our industry—from the forest to the frame and beyond.” Thanks to the generous support of industry sponsors, four individual scholarships are on offer: Kennedy’s Timber Award – $10,000 HQPlantations Award – $5,000 AKD Award – $5,000 DTM Timber Award – $2,500 Scholarship recipients can tailor their application to suit their career interests and aspirations, with funding available for a wide range of learning opportunities, including: Course or qualification fees Attendance at national or international conferences Study tours to explore global forest management and timber innovation Secondments within other parts of the industry Or a unique initiative aligned with their professional development goals “The only limit is imagination,” Mrs Brandt said. “We’re encouraging businesses to think about who in their team could benefit from this chance to broaden their skills, experience and leadership capacity.” Now in its fourth year, the Growth Scholarships Program reflects Timber Queensland’s commitment to developing the future capability of Queensland’s $3.8 billion forest and timber industry. “We want to see people from every corner of the supply chain—whether they’re working in growing and harvesting, sawmilling, manufacturing and wholesaling, design, research or construction—put their hat in the ring,” said Mrs Brandt. “By backing those already in the industry, we’re creating a motivated, connected and skilled workforce ready to meet the challenges and opportunities of the future.” Applications are open until 30 June 2025. Eligible applicants must be aged 18–45, based in Queensland, and currently working or studying in the forest and timber industry. The online application process is simple, and support is available for anyone who needs help putting together their submission. For full details and to apply www.timberqueensland.com.au/growthscholarships  

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