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Most business owners view PEFC certification as a cost: the audit fee, the time spent on implementation, and the documentation. Meanwhile, companies that already hold the certificate see something quite different – a sustainable advantage that translates into tangible financial and market value. How does this work? Let’s break it down.
Imagine two companies – identical in terms of size, product range and prices. One has PEFC certification, the other does not. Which one will a retail chain choose, given that it must demonstrate a responsible supply chain to its shareholders? Which one will win a public tender with an environmental criterion? The answer is obvious.
PEFC certification is not merely an added bonus to a company’s offering. For an increasing number of clients, it is becoming a prerequisite for even entering into discussions. Companies without it are weeded out as early as the request for quotation stage – before anyone even sees their price. Find out how the PEFC system works and why it is recognised worldwide.
Certified products justify a higher price. Customers seeking certainty regarding the origin of timber – whether for reputational or regulatory reasons – are prepared to pay for that certainty. This is not just theory. Manufacturers of furniture and timber products with PEFC CoC certification regularly report higher prices for their products in Western European markets. For many organisations, certification is becoming an integral part of their strategy for growth and building a competitive edge in the market.
→ PEFC certification is one of the few selling points that justifies a higher price without the need for negotiation. The customer knows exactly what they are looking for.
An increasing number of M&A transactions in the timber and furniture industries include certifications as part of the due diligence process. An investor or buyer entering the industry with a view to exporting or collaborating with large retail chains will pay more for a company that already holds a certification. There are several reasons for this:
The EUDR (EU Deforestation Regulation) has changed the rules of the game. Companies placing timber products on the EU market must prove that the raw material does not originate from areas affected by deforestation. PEFC certification does not replace full compliance with the EUDR, but it provides the foundation upon which the required due diligence chain documentation is built.
A company without any certification faces this task from scratch. A PEFC-certified company already has a system, data and procedures in place – adapting to the EUDR is then many times simpler and cheaper.
✓ PEFC certification is insurance against regulatory risk. Not having it can cost significantly more than the cost of implementation.
Banks and funds are increasingly assessing companies against ESG (Environmental, Social, Governance) criteria when making lending and investment decisions. A PEFC-certified company has hard evidence of responsible environmental management – an argument that convinces analysts more effectively than any statements in an annual report.
This translates into tangible access to finance: more favourable loan terms, the opportunity to apply for funding from European programmes related to the green transition, and greater credibility when raising capital.
There is no single figure, as the value of the certificate depends on the size of the company and the markets in which it operates. But to illustrate the scale: a company that, thanks to the certificate, secures one additional contract a year with a Western European network often recoups the entire cost of certification and consultancy within the first few months of the partnership. The following years bring pure profit from a competitive advantage that rivals do not yet possess. Find out what the PEFC certification process involves and what steps are needed to prepare your company for certification.
DJB DORADZTWO
Marcin Chorąży
