Translations

Leroy Merlin France supports community projects aimed at generating a more responsible wood supply

5. Fair Operating Practices

Responsible purchasing

Sector Business / Distribution

Year 2012

Country France

Transmitter

Context

A pioneering entity within the Adeo Group, Leroy Merlin has grown today into France's leading "DIY"/building supplies retailer within the home improvement and lifestyle market segment.

Concerned over the impact of deforestation on populations and biodiversity, Leroy Merlin France has taken steps to favor a certification approach for all wood used as input materials in products sold by the retailer. As part of this adopted approach, the company partners with TFT (The Forest Trust) in order to accompany producers who have yet to receive certification from either FSC (Forest Stewardship Council) or PEFC (Pan European Forest Certification), in promotion of a more responsible management strategy for their forests.

Objectives

- Develop supply chains for wood harvested in well-managed forests
- Involve local communities in the wood supply chain

APPROACH

Since 2009, Leroy Merlin France has been supporting TFT, through accompanying the Dipantara cooperative located on the island of Java, in an ambitious project designed to improve community forestry management in the center of the island and moreover to guide the Group towards a full embrace of the FSC certification. Dipantara collaborates with over 70 farming groups and spans 3,700 hectares of forested land area. By working within the Dipantara project framework, small producers are instructed on wood-farming techniques leading to a sustainable management of their resources and receive a fair price for their wood.

In turn, Dipantara oversees the relevant training sessions and develops commercial relationships with international markets, whose consumers appreciate products that are respectful of both local indigenous communities and the environment. The main species raised are teak and mahogany.

Leroy Merlin France has actively participated in supporting this project in a number of ways:

- A policy to purchase furniture from its suppliers made using wood produced specifically from this project. As an example, the Sri Redjeki plant was able to procure TFT teak harvested through the Dipantara project in 2011 for the purpose of manufacturing a bathroom line of furnishings (mirrors, stands, etc.);

- A direct financing agreement that enabled membership to the project of 10 farmers' groups from the Gunung Kidul region, resulting in a project contribution of nearly 500 hectares of additional forestland.

Leroy Merlin France has also lent its support to another project conducted by TFT in Indonesia, this time to assist the company Perum Perhutani regain the FSC certification it had lost subsequent to deadly conflicts opposing armed guards and local villagers.

In 2012, Leroy Merlin France's wood purchasing policy was revised with the aim of ensuring a responsible supply chain for all wood-based products through its current network of suppliers, in addition to guaranteeing its commitments in favor of sustainable forest management and supply-related information communication to customers.