Forests NSW Social, Environmental and Economic (‘Seeing’) Reportdocuments performance, providing a clear and comprehensive annual view ofForests NSW performance as a forest manager. Morgan Roche gives a snapshot of 2007-08 results.

Financial performance

Financially in 2007-08, Forests NSW had a better year than anticipated,with operating profit higher than expected and a reduction in gross debtgreater than projections. This result was achieved through a concerted effortto control costs and capital expenditure, and a stronger market, particularlyfor softwood products.

Insurance and safety

Success was had too, in the area of insurance with the organisationpassing a WorkCover NSW self-insurer’s audit, demonstrating the hard work andcommitment of all involved. Forests NSW is one of the few organisations in NSWto achieve this goal.
It wasn’t all smooth sailing, however, with 101 recordable safetyincidents (up from 83 the year before) recorded. Forests NSW is implementingmany new initiatives and fostering a stronger safety culture to deliverimproved results in the coming years.

Forests and carbon

The Seeing Report also focused on the important role forests play inmitigating climate change. Sustainably harvested forests reduce atmosphericcarbon dioxide (CO2) by storing carbon in wood products: the more timber-basedproducts are used, the more CO2 is stored as carbon. Degradation of forests, onthe other hand, contributes to atmospheric CO2. As a forest managementorganisation certified to the Australian Forestry Standard, Forests NSW willcontinue to mitigate the effects of climate change.

Carbon trading

694 935 NSW Greenhouse Abatement Certificates created in 2007-08, eachrepresenting a tradable tonne of carbon dioxide removed from the atmosphere.

Business planning

Forests NSW is a proven leader in managing forests for their long-termsocial and environmental benefits, as well as their economic value. During2007-08, a new three-year Corporate Business Strategy was launched. Thestrategy reaffirms our commitment to social, environmental and economicsustainability and highlights our vision to be the best and safest commercialforest manager in Australasia.

Stakeholder consultation

Identifying our stakeholders’ concerns is a vital step in both meeting theirexpectations and addressing these concerns. The formal consultative processundertaken for the Regional Forest Agreements identified benefits and issues ofrelevance to those with an interest in Australian forests. Both the RegionalForest Agreements and NSW Forest Agreements represent the outcome of thisconsultative process and are binding for Government land managers, includingForests NSW.

The Forest Agreements guide Forests NSW in balancing its objectives ofcommercial performance, where the benefits (such as timber) have a value inmoney, with the environmental, social and indirect economic benefits. Theseother benefits also have a value, as identified through the Forest Agreementprocess, however they are not paid for in the same way as timber. As theexpectations of the community change and some benefits become more important inthe community than others, Forests NSW has the responsibility to adapt.Sometimes such changes are factored into our economy, for example throughcarbon trading, while other times Forests NSW relies on payment from governmentto ensure specific benefits can be provided.

As part of the review of the Regional Forest Agreements initiated inJune 2008, our indicators will be examined to ensure they are useful in showinghow we and NSW Department of Conservation and Climate Change (previouslyNational Parks and Wildlife Service) are performing in achieving EcologicallySustainable Forest Management. The outcomes of this review will be open topublic feedback.
Regional issues that have arisen over the year are identified through ananalysis of sustainability indicator results, observation of media reports,feedback from our regional offices and audit reports.

Multi-function forests

Although humankind has a long history of adapting native forests to gainbenefits, some people have become uncomfortable with the idea that such forestscan be managed for commercial objectives. A common belief has been that to usetimber is to harm the forest.

For the sustainable forest manager, to harm the forest is like harmingthe very means by which you produce your primary product – timber. Insustainable native forest management, the more intact and robust the forestecosystem is, the less cost is associated with achieving the main economic benefit,timber. In fact all the social, environmental and economic benefits areinterwoven and dependant on each other.

Independent certification

By purchasing timber from forests that are certified to a sustainableforest management standard, consumers invest in a legally sourced product –timber. But they also invest in maintaining for the long term a comprehensiverange of benefits associated with the forest in which the timber grew. ForestsNSW forest management was independently audited four times during the year,twice for compliance with the Australian Forestry Standard and twice againstthe Environmental Management Standard ISO 14001. Weaknesses and strengths wereidentified with Forests NSW maintaining certification to these standards, whilecontinuing to improve our management of the forests.

Plans

Five year strategic regional plans (Ecologically Sustainable ForestManagement Plans) were finalised during the year for all our planted forestregions, and Riverina and Western native forest regions. These plans also wentthrough a consultation process, with many changes as a result. EcologicallySustainable Forest Management plans are now in place for all operationalregions and they document how Forest NSW will manage the forests sustainablyfor a range of benefits. We will be reporting annually on implementation ofthese plans, with the Seeing Report giving a state-wide view of many of theindicators that will be used in these future regional reports.

The NSW State Plan: A New Direction for NSW, also identifiesmany similar aspects including management of cultural heritage, biodiversityloss, regional employment and climate change. The Seeing report acknowledgesthese issues and describes our performance in relation to them.

Interested in the full picture?

Copies of the Seeing Report can be downloaded fromwww.dpi.nsw.gov.au/forests or in hard copy by telephoning Forests NSWinformation centre on 1300 655 687 or 02 9871 3377.

This article appears in the Autumn/Winter 2009 edition of Bush Telegraph Magazine.