News Release, September 2001

Coillte presented with FSC certificate for good forest management and launches Social and Environmental Report

Coillte, the State forestry company was today presented with the international Forest Stewardship Council (FSC) certificate that its forests are well managed in accordance with strict environmental, economic and social criteria. The presentation was made in Dublin at the launch of Coillte's Social and Environmental Report entitled A Vital Resource - A Report on the Responsible Management of Coillte's Forests.

The certificate was presented by SGS (Société Générale de Surveillance) QUALIFOR the firm of FSC accredited auditors which carried out the audit of Coillte's operations. It was accepted on behalf of Coillte by its Chairman, Ray MacSharry and Chief Executive, Martin Lowery.

The FSC is an international not-for-profit organisation founded in 1993 to support environmentally appropriate, socially beneficial and economically viable management of the world forests. It operates a system of independent verification that forests are managed according to an agreed set of standards derived from the FSC's international Principles and Criteria. Coillte's forests were certified following a rigorous and comprehensive audit of Coillte's policies and operations by SGS-QUALIFOR and implementation of a comprehensive strategy by Coillte to achieve compliance with 81 environmental, economic and social measures of good forest management against which Coillte was assessed.

Speaking at the event Mr. MacSharry said "In Coillte, we believe that it is not only possible, but it is essential, to manage our forests in a way that is commercially successful, environmentally responsible and that delivers social benefits." Mr. Mac Sharry went on to say that in the past two years Coillte has developed a much more structured approach to managing the environmental and social, as well as the commercial aspects of its business. This has enabled the company to put these issues centre stage and to ensure that they are addressed with the same attention as the commercial aspects. Earlier this year Coillte reported a profit of "25.5 million for 2000.

Achievement of certification means that Irish forest products companies certified by FSC will be able to carry the FSC label on their products thus providing consumers with assurances that the timber they buy comes from well-managed forests.

Coillte said that the reason for publishing their first Social and Environmental report today is to highlight some of the environmental and social aspects of the company's business and the steps being taken to address them. Coillte intends, in future, to report on progress in these areas on an annual basis in the same way that it reports on its business performance in its Annual Report and Financial Statements.

Speaking at the launch of the report Coillte Chief Executive, Martin Lowery said, "Coillte's forests, which cover 438,000 hectares, are a vital national resource that contribute in a significant and positive manner to the well-being of the countryside." He added that the company is committed to managing its forests in a sustainable manner now and into the future.

Mr. Lowery also commented, "As forests have matured, so have society's expectations in regard to the environmental and social functions which forests are expected to perform. The practice of forest management has evolved over the past century to meet society's expectations and it will continue to evolve in this century and beyond."

Coillte's first Social and Environmental Report highlights a number of the key social and environmental aspects of its business using case studies to show how they are being addressed. In the area of planning Coillte is currently developing forest management unit plans for all of its forests which are prepared in consultation with statutory bodies, local communities and other interested parties. Also, under the company's nature conservation strategy at least 15% of its forest area will be managed primarily for nature conservation purposes. These areas are currently being identified by independent ecologists who will also be engaged to prepare management plans for these forests.

Coillte is also increasing the diversity of tree species planted in its forests including planting significantly more broadleaved trees. The company has also completed a process of classifying forested landscapes according to their environmental sensitivity and is developing design plans to ensure that forests in future blend better with the landscape.

The report also details some of the measures that Coillte will use to monitor progress in the achievement of its economic, social and environmental objectives.