How European Wood Businesses are
Coping with Legislation
An Importing Trade Association View
Rachel Butler
Head of Sustainability UK Timber Trade Federation (TTF)
representing the European Timber Trade Federation (ETTF)
European Timber Trade Federation
• Established in 2009 and brought together
organisations representing hardwood (UCBD),
softwood (UCBR) & panels (UCIP);
– Also FEBO, which represent timber distributors &
merchants
• Membership represents 12 key European
importing countries;
– Netherlands, UK, Spain, Sweden, Belgium, France,
Germany, Greece, Italy, Portugal, Denmark & Norway
• Strengthen the voice and representation of the
European timber importers.
European Trade Facts
• Less than 10% EU timber consumption is
imported from;
– China, US, Russia, Brazil, Malaysia, Indonesia,
Chile, Vietnam, Cameroon, Gabon & Thailand
• European forestry reserves are growing
annually
– Estimated as the size of Cyprus every year
• Global joint efforts to curb illegal by
Governments, NGOs and the trade are
perceived to be working
– Recent Chatham House Report
Current EU Market Demand for Legal
& Sustainable Timber
• Market for certified timber is still a push-market
• Enough supply but very often lacking demand
– UK is strongest market has risen significantly in recent years but
still perceived as low
• With some exceptions: limited data available!
– ETTF has just commissioned a market report to collate data across
all member TTFs
• Dutch Market 2009 65% certified
• UK Market 2010 85% certified
ETTF & EU Timber Regulation
• Shares the commitment of the EU to eliminate illegal
timber from supply chains;
– Creates a level playing field
– Supported the prohibition
• Some member TTFs are already implementing due
diligence and supporting their trade;
– E.g. Netherlands, UK & France
• Some member TTFs are planning and developing due
diligence systems;
– E.g Germany, Italy
Facilitating Due Diligence:
UK RPP Case Study
• UK developed Responsible Purchasing Policy
(RPP); about 7 years ago
– Voted to make Due Diligence mandatory in
2008 under Code of Conduct
– All members obligated in 2010; 6 out of
approx 150 are now suspended
– TTF provides standard forms, guidance &
technical assistance
– Sufficient to meet the new future EU Timber
Regulation as it facilitates due diligence?
UK RPP Case Study:
Due Diligence Core Elements
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Public commitment to legal and sustainable timber
Complete supplier product screening
Objective assessment system & credible evidence
Continuous improvement & target setting
Supplier feedback
Independent auditing
Annual reporting
Communications Protocol
Governance & Sanctions
Training for auditors & members
UK RPP Case Study: Process
• Recognises that only FLEGT is an automatic passport!
• Evaluates risk of uncertified/unverified timber
products, using a standard format and guidance
• Records products where risk mitigation is in hand &
provides guidance on these risk mitigation schemes;
– negligible risk (certified & FLEGT)
– managed risk (legality verification, TTAP, TFT, GFTN etc)
• Members set targets & are independently audited
annually;
• Independent Body collates annual submissions
UK RPP Case Study:
Product Risk Rating
• Classify the country using the
Transparency International Risk
Index.
• Use the appropriate decision
tree to risk rate products as
high, medium or low
• Risk rating process linked to
TTF’s country guidance to make
decision more objective rather
than subjective.
UK Case Study: RPP Overview
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Cost effective in delivering due diligence
Risk evaluation is separate to risk mitigation
Guidance & standard forms
Communications & Governance
Independent audit
Training for members & auditors
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RPP is still paper based & not “real” time
Does not guarantee products are legal
Small members have resource issues
Audit costs can be high
Implications & Consequences of TR
for ETTF Members
• Many not prepared, but the importing
trade/retailers are waking up!
– Many rely on their suppliers
• Changes in timber flows & switching to lower
risk producer countries
• Increase in misleading & false claims
• Is it a driver for sustainable timber?
ETTF’s Future Development on TR
• Need to support EU TR at EU Level, to
support buyers and producers therefore ETTF
are considering;
– One Responsible Purchasing Policy
– One set of guidance on countries of origin,
certification, verification etc
– Possibly becoming an EU Monitoring Organisation
for smaller TTFs
Future Challenges for Suppliers
• All buyer’s need it to be simple;
– Certified
– FLEGT licensed
– Verified legal
• Boycott of Tropical Timber?
• Will demand go away?
– Other markets e.g. China, Australia
– REDD+, links to FLEGT
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Timber Industry: The future for us all
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More timber used
No illegal logging
Forests protected, SFM implemented
Higher prices for products
– Value added?
• Buyers in EU & US
– Due care or due diligence,
difference in reality?
• Suppliers to EU & US
– Same information/evidence?
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Concluding remarks:
• Illegal timber is damaging the image of all timber
products > ETTF welcomes TR
• Links to US Lacey Act
• Legal proof is the basic requirement, but the current demand where it
exists & trade preference is for sustainably produced timber.
• Key market drivers are increasing demand for timber (Public
Procurement, Green Building Initiatives, RPPs, etc.)
• There is no premium for legal, but still a premium for SFM certified
tropical timber products
• Demand is still lacking but legislation will increase demand within our
markets.
• FLEGT timber, we do need it!
• Need for European wide guidance & standard RPP
Thank you for your attention!
Rachel Butler
rbutler@ttf.co.uk
European Timber Trade Federation