Credence Attributes in the Forestry Sector and the Role of Environmental, Social and Governance (ESG) Factors
Credence or believability are paramount values in trade. The role of products’ credence attributes has been well-analysed in the agricultural and food sector. This study examined the application of credence attributes to forest management and forest products marketing for the first time. We describe...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-03-01
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| Series: | Forests |
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| Online Access: | https://www.mdpi.com/1999-4907/13/3/432 |
| _version_ | 1797471566129266688 |
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| author | Sebastian Klinger Karen M. Bayne Richard T. Yao Tim Payn |
| author_facet | Sebastian Klinger Karen M. Bayne Richard T. Yao Tim Payn |
| author_sort | Sebastian Klinger |
| collection | DOAJ |
| description | Credence or believability are paramount values in trade. The role of products’ credence attributes has been well-analysed in the agricultural and food sector. This study examined the application of credence attributes to forest management and forest products marketing for the first time. We describe specific credence attributes of forest products and highlight their values, benefits, and importance in international trade. We used Delphi interviews of experts and surveyed forest and trade experts to assess the perceived merits of credence attributes in the forestry sector. We also compared certification schemes and sustainable forest management (SFM) indicators against credence values. We found that credence attributes play an important role in the forestry sector for both timber forest products and non-timber forest products (NTFP). While some credence attributes, such as the legality of forest products, already form the basis for trade and certification and are standard practice, other credence attributes are rising in awareness and could potentially create new markets. This study revealed the potential value of health aspects of forest products, particularly regarding NTFP and recreational services. Certification schemes and SFM provide credence at a collective level, and must encompass the rising importance of individual credence attributes of these newer important values. Last, we summarized the emerging environmental, social, and governance (ESG) investment practices to assess how credence factors may help affect such investments. Awareness of credence attributes can inform ESG criteria, certification schemes, and sustainable forest management frameworks about present or potentially future market expectations. Sustaining and enhancing natural capital and the flow of ecosystem services they provide, as well as social and human capital, will play an increasingly important role for forestry companies in the next decade. A better understanding of forestry credence attributes can inform the management of ESG of forestry industries and markets more effectively. |
| first_indexed | 2024-03-09T19:49:58Z |
| format | Article |
| id | doaj.art-2e4acc4163e34e9fa81522e0601c60c5 |
| institution | Directory Open Access Journal |
| issn | 1999-4907 |
| language | English |
| last_indexed | 2024-03-09T19:49:58Z |
| publishDate | 2022-03-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Forests |
| spelling | doaj.art-2e4acc4163e34e9fa81522e0601c60c52023-11-24T01:13:08ZengMDPI AGForests1999-49072022-03-0113343210.3390/f13030432Credence Attributes in the Forestry Sector and the Role of Environmental, Social and Governance (ESG) FactorsSebastian Klinger0Karen M. Bayne1Richard T. Yao2Tim Payn3Scion (New Zealand Forest Research Institute, Ltd.), Titokorangi Drive, Private Bag 3020, 3046 Rotorua, New ZealandScion (New Zealand Forest Research Institute, Ltd.), Titokorangi Drive, Private Bag 3020, 3046 Rotorua, New ZealandScion (New Zealand Forest Research Institute, Ltd.), Titokorangi Drive, Private Bag 3020, 3046 Rotorua, New ZealandScion (New Zealand Forest Research Institute, Ltd.), Titokorangi Drive, Private Bag 3020, 3046 Rotorua, New ZealandCredence or believability are paramount values in trade. The role of products’ credence attributes has been well-analysed in the agricultural and food sector. This study examined the application of credence attributes to forest management and forest products marketing for the first time. We describe specific credence attributes of forest products and highlight their values, benefits, and importance in international trade. We used Delphi interviews of experts and surveyed forest and trade experts to assess the perceived merits of credence attributes in the forestry sector. We also compared certification schemes and sustainable forest management (SFM) indicators against credence values. We found that credence attributes play an important role in the forestry sector for both timber forest products and non-timber forest products (NTFP). While some credence attributes, such as the legality of forest products, already form the basis for trade and certification and are standard practice, other credence attributes are rising in awareness and could potentially create new markets. This study revealed the potential value of health aspects of forest products, particularly regarding NTFP and recreational services. Certification schemes and SFM provide credence at a collective level, and must encompass the rising importance of individual credence attributes of these newer important values. Last, we summarized the emerging environmental, social, and governance (ESG) investment practices to assess how credence factors may help affect such investments. Awareness of credence attributes can inform ESG criteria, certification schemes, and sustainable forest management frameworks about present or potentially future market expectations. Sustaining and enhancing natural capital and the flow of ecosystem services they provide, as well as social and human capital, will play an increasingly important role for forestry companies in the next decade. A better understanding of forestry credence attributes can inform the management of ESG of forestry industries and markets more effectively.https://www.mdpi.com/1999-4907/13/3/432credence attributescriteria and indicatorsC & I processessustainable forest managementforest certificationenvironmental, social and governance (ESG) criteria |
| spellingShingle | Sebastian Klinger Karen M. Bayne Richard T. Yao Tim Payn Credence Attributes in the Forestry Sector and the Role of Environmental, Social and Governance (ESG) Factors Forests credence attributes criteria and indicators C & I processes sustainable forest management forest certification environmental, social and governance (ESG) criteria |
| title | Credence Attributes in the Forestry Sector and the Role of Environmental, Social and Governance (ESG) Factors |
| title_full | Credence Attributes in the Forestry Sector and the Role of Environmental, Social and Governance (ESG) Factors |
| title_fullStr | Credence Attributes in the Forestry Sector and the Role of Environmental, Social and Governance (ESG) Factors |
| title_full_unstemmed | Credence Attributes in the Forestry Sector and the Role of Environmental, Social and Governance (ESG) Factors |
| title_short | Credence Attributes in the Forestry Sector and the Role of Environmental, Social and Governance (ESG) Factors |
| title_sort | credence attributes in the forestry sector and the role of environmental social and governance esg factors |
| topic | credence attributes criteria and indicators C & I processes sustainable forest management forest certification environmental, social and governance (ESG) criteria |
| url | https://www.mdpi.com/1999-4907/13/3/432 |
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