Earlier this year, toy and game maker Hasbro, Inc. directed its suppliers to stop using paper sourced from unsustainably managed forests.
Now, the company has unveiled a comprehensive policy intended to ensure that all procurement decisions align with the company’s commitment to environmental sustainability and support sustainable forest management.
Hasbro’s new Paper and Forest Procurement Policy (PFPP):
- sets stringent vendor requirements for credible third party certification (such as the Forest Stewardship Council) of fiber.
- requires that no sources of Mixed Tropical Hardwood (MTH) virgin fiber be used in products, including packaging.
The PFPP underscores a goal Hasbro already had established: By 2015, the company wants 90 percent usage of paper packaging and in-box game content derived from recycled material or sources that practice sustainable forest management. (For 2011, the goal is 75 percent.)
In addition, Hasbro has taken the supplementary step of achieving Forest Stewardship Council certification for its US manufacturing facility, and the company is pursuing similar certification for its manufacturing facility in Ireland.
According to Kathrin Belliveau, Hasbro’s Vice President, Corporate Responsibility and Government Affairs, the company recognizes these moves have important strategic benefits. As I’ve mentioned before, “peak deforestation” creates three specific valuation risks for your company and its associated investment portfolios: (more…)