Feb. 13, 2008 – Forest, paper, and packaging companies are feeling the pressure from powerful corporate customers bent on establishing green credentials for their entire supply chains, according to a new PricewaterhouseCoopers survey of chief executives in the industry. Increasingly, paper manufacturers are finding themselves not only reassuring customers as to their own responsible practices but also vouching for the logging companies from which they purchase their raw materials.

The CEOS said that despite major sustainability gains - 50% of the raw materials used in the European paper and packaging sector are now derived from recovered paper- the industry still suffers from a poor image as the “destroyer” of the world’s forests. Survey respondents called collaborating with NGOs the most effective way to combat this negative perception, because nonprofit partnerships have more potential to effect lasting change than standard industry channels or government lobbying. Many also see trade organizations as important catalysts in communicating what FPP companies do right and representing the industry’s interests as climate change regulations evolve.

Several CEOs expressed frustration that, while demand for green products is increasing, customers are often reluctant to pay a premium for them. One executive described the situation as a "delicate balancing act" between the need to spend money on proving his company’s green pedigree and the need to minimize additional costs.

“The forest, paper and packaging industry is at the heart of many of the most important and intense debates taking place in both political and corporate circles, as well as within society at large – climate change, sustainable development, the future of the planet’s forest, and the most appropriate use of fiber resources," says Robert Barnden, head of the forest, paper and packaging group at PricewaterhouseCoopers. “The industry has already had to cope with a considerable amount of change, but it remains quite traditional in certain respects. If it is to address the challenges it now faces, it will have to shed these traditions and become more innovative. It will also have to develop a robust system for managing change.”

Download the report here.