Forest Management Moving Towards Green Initiatives and Sustainability

The backbone of environmental action by corporations is social responsibility, or at least it used to be. After becoming somewhat read on the subject no one should be naive enough to think that social responsibility alone would be the fuel for the green movement — revenues and reduced costs would have to take the spotlight. One of the world giants in retail, whose name I ‘W’on’t mention, is a prime example; this firm has recently taken on a green tinge by harnessing wind and solar power. But not because it was the right thing to do, because it was less expensive.

Can environmental and cost based factors both drive sustainability?

Some recent articles and blog posts discussing green initiatives in supply chain management, distribution and transportation had us thinking about a blog post of our own. After reading this article by Sullivan we got to thinking: how quickly will the power of the carbon trading market take over?

Without question the means to monetize will drive social benefit when it comes to environmental responsibility. Few corporations are willing to reduce profits in the name of social justice, especially those that are publicly held. The corporation exists to serve the shareholder (and management usually comes out looking pretty good too). What if the owners of these faceless, publicly held corporations could become and problem and solution? Enter carbon trading.

The Value of the Forest

Carbon trading completely changes the way a government or land owner calculates the value of the land. Having a means to monetize on a stand of trees without actually cutting them down is novel, but a reality in the future. Think about this: Mrs. & Mr. John Smith, Corporation or Government receive an annual payment for the carbon offset their land provides. The land is left in tact, preserved for the wildlife and ready to act as is was meant. Carbon is continually captured.

Okay, this may be a little too ideal, but the principle is simple to understand. If a forest is best served by leaving it “as is” from both a revenue and environmental perspective, why think about harvesting it? Simple question, complex answer.

Looking Forward

If the pool of global participants is large enough and the supply on the market limited enough then carbon trading could be a profitable business. If governments are willing to increase demand and make emission standards even tighter then the picture is even rosier. Can the power of the dollar cause developing nations to back away from commodity harvesting? Hard to say at this point. The possibility looks much stronger in those nations that identify with and look to protect their society and environment, whether developed or not remains to be seen.

Interesting Links

The article written by Sullivan in the Globe & Mail can be found at this URL: Value in Old Growth Forests?

Another site worth looking over, being dedicated to forest land owners who and associated carbon trading: Carbon Trading

An interesting discussion hosted on the CBC web site that provides some background in carbon offsets and trading: Carbon Offsetting: How Does it Work?

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