Module 2
CSR in the forestry sector and the
sustainable timber supply
STA – UE Trainings of SMEs operators
(Place & Date)
Introduction:
[interactive]
Group exercise – speak to neighbour.
What do you think CSR and sustainable
forestry means? (5 mins)
Collect answers on flipchart (10 mins)
The Corporate social responsibility
Social marketing = “Company’s decisions are taking into account the
long-term interests not only of the internal but also of the external, indirect
stakeholders, including:
• clients and private customers
• suppliers
• environmental organizations
• human rights organizations and trade unions
• State and other Public Authorities
From SM to CSR = “CSR is a concept whereby companies
integrate social and environmental concerns in their
business operations and in their interactions with their
stakeholders on a voluntary* basis” (EC definition do CSR)
CSR = operations & interactions
Un-sustainability paradigm
Not always interlinked....
Non-fair FM
Illegal logging
?
Non-sustainable FM
Country
% over total
production
Bolivia
80
Brazil
20 - 47
Cambodia
90
The illegality in the forest Cameroon
sector
Colombia
50
42
•Every 2 secs, across the world, an area of forest the
size of a football field
Ecuador
70 is clearcut by illegal loggers, leading to the degradation Gabon
and possible eventual destruction
of
70
five million hectares of forests each year.
Ghana
60
Indonesia
•In some countries, up to 90% of all the logging taking
place is illegal. 70 - 80
Laos
45
•Criminal activity generates approximately US$10–15
billion annually worldwide—
Malaysia
Up to 35
funds that are unregulated, untaxed, and often remain in the hands of organized
Myanmar
50
criminal gangs.
Papua New Guinea
70
•The illegal logs still being cut each year would stretch
Peruten times around the
80Earth
Some figures for tropical
(World Bank, 2012).
countries
Thailand
40
Vietnam
20-40
Sustainable forest management
In May 2012 Global area of
certified forest 394 million Ha
+ 4% (14.8 million hectares)
since May 2011
The world’s certified
forest area is
approaching 10%
Source: UNECE FAO 2012
Social related issues
• Forests are home to an estimated 15 M indigenous people
• Important cultural and social role of forests in many countries
• Commercial logging competes for access to the land
• Low concern for health and safety along the supply chain
Environmental impacts
Deforestaion
Environmental impacts
Land use conversion
Environmental impacts
Forest degradation
Deseases, tree fall, fires…
Economic impacts
• Numerous and complex, and often strictly interrelated with
social impacts
• Lost revenues for producer countries' governments (Tanzania*)
 market distortions + erosion of funds for poverty alleviation
• Non-sustainable forest management can decrease forest
productivity harming informal and subsistence economies
Economic impacts
• The present
situation is better
then 10 yrs ago, but
loss are partly
compensated by
plantations...
• Degradation (and
loss of forest value)
processes are not
considered..
Source: 2011, FAO – FRA 2010
Social impacts
• Losses of traditional local knowledge over cultural heritage,
identity, values, and way of living
• Property and resource-use rights conflicts or losses of local
customary rights
• Revenues from i.l. have fuelled armed conflicts (Liberia, RD Congo)
Quiz
1. How many ha of forest have been lost in the last
decade worldwide?
2. How many people depend on the forests?
3. Do you think timber present in your domestic market
may come from deforestation or illegal logging?
4. Do you think unsustainable forest management is
undertaken within your country/region/province?... etc.
Taking actions
A growing awareness about environmental and social
problems
• Consumers increasingly interested in
provenance of what they buy
What is a sustainable timber?
“Sustainable forest management, as a dynamic and evolving concept, aims to maintain
and enhance the economic, social and environmental value of all types of forests, for the
benefit of present and future generations (UN, 2007)
Sustainable management of forest implies three main issues:
• Legality – that the forest owner/manager holds the legal right to
harvest, and timber is harvested, processed and traded in compliance
with relevant international, national and regional laws
• Environmental sustainability – that the forest is managed in a way
which preserves the health of the forest for future generations
• Social sustainability – that timber is harvested, processed and traded
with respect to the rights and working conditions of those directly
affected
EU responsibilities in illegality
2003, EU15:
import 82,24 Mmc di
illegal timber (~ 20%)
(EC e WWF UK, 2004)
ITALIA (or other country):
• 6° importatore mondiale
• 2° importatore europeo
• 1° partner di Camerun, Costa
d’Avorio, Romania, Bosnia, Albania
e Serbia
• 1°imp. legna da ardere
• 4° imp. cippato e scarti
• 10% imp. totale di legno per 2-4
Mld. US$
How EU try to face illegality
 EU Timber Regulation (EUTR) (from March 2013) prohibits the first
placing of illegally harvested timber and timber products on the EU
market. The legislation will require that due diligence is applied by
companies that first place timber products on the EU market
Other initiatives for legality
 EU Forest Law Enforcement Governance and Trade
(FLEGT) Action Plan that sets out actions to prevent the
trade in illegal wood establishing Voluntary Partnership
Agreements (VPAs) between the EU and several timber
producing countries
As of February 2012 VPAs exist between the EU and
Cameroon, Central African Republic, Ghana, Indonesia,
Liberia, and the Republic of Congo
Essentially, FLEGT-licensed timber will be considered as
legal for the purposes of the “EUTR
Ensuring sustainability
FOREST EUROPE criteria for sustainable forest
management (MCPFE)
ASPECTS
Ecological aspects
Economic aspects
Social aspects
CRITERIA
1. Maintenance and appropriate enhancement of forest
resources and their contribution to global carbon cycles;
2. Maintenance of forest ecosystem health and vitality;
3. Maintenance, conservation and appropriate enhancement of
biological diversity in forest ecosystems;
4. Maintenance and appropriate enhancement of protective
functions in forest management (notably soil and water);
5. Maintenance and encouragement of productive functions of
forests (wood and non wood)
6. Maintenance of other socio-economic functions and condition
Sustainable forest
management certification
A sustainable forest management certification scheme:
• requires compliance with the principles of legality,
environmental and social sustainability
• is able to provide independent, third party verification that
timber is sourced from sustainably managed forests
• includes mechanisms for tracing products from the forest of
origin through the supply chain, to the end consumers called
Chain of Custody (CoC).
Sustainable forest management
certification
Internationally, 2 main forest certification schemes:
• The Forest Stewardship Council (FSC) –
www.fsc.org
• The Programme for the Endorsement of
Forest Certification (PEFC) – www.pefc.org
Most sustainable timber procurement policies accept either label
as one way of demonstrating compliance with the sustainability
requirements
Sustainable forest management
certification
Third part verification system
At international
level by ASI
At national
level
Chain of Custody rational
All COC “rings” shall
be covered by a
valid FSC COC
certificate
The principle works for FSC as well as for PEFC
Labels significance (FSC)
Virgin FSC
FSC 100%: 100% FSC certified inputs
FSC Controlled
FSC Mix: FSC certified inputs +
Controlled Wood inputs + recycled inputs
Reclaimed
(labelling with min content of 70% certif. input,
exception to 50% for some registered products)
FSC Recycled: reclaimed post-consumer
(at least 85%) and pre-consumer inputs
For more information refers to FSC-STD-40-004 V2-1 and FSC-STD-50-001 V2-0
Labels significance (PEFC)
Virgin PEFC
PEFC Certified: virgin,
recycled and “non
controversial” material
Non controversial
source
Reclaimed
(min 70% certified inputs and
max 85% recycled inputs)
PEFC Certified &
Recycled: reclaimed postconsumer or pre-consumer
inputs and certified material
(min 70% certified inputs and
min 70% recycled inputs)
For more information go to www.pefc.org/standards/logo-use
Group activity
Q&A
[interactive]
and the CoC of a table
1. What are the causes of deforestation
processes?
Let’s describe the chain of custody of a
wooden table. Who need the certificate?
2. What are the consequences?
• Forest manager?
3. Is Europe responsible for
deforestation?
• Logger company?
4. How do you recognize a certified
product?
• Wood worker?
5. Do you know certified timber/wood
products suppliers in your country?
• Timber trader (broker)?
• Furniture producer?
• Large retailers?
• Installer?
Fair trade in the timber sector
• FLO logo, what is this?
(Discuss it with your neighbour)
Presentation:
• Definition of fair trade
• Sectors where FT successfully introduced
• Fair trade in forestry and dual certification experiences
Fair Trade
"Fair Trade is a trading partnership, based on dialogue, transparency and respect, that
seeks greater equity in international trade. It contributes to sustainable development
by offering better trading conditions to, and securing the right of, marginalized
producers and workers - especially in the South“ [accepted definition of Fair Trade, as agreed by
Fairtrade Labelling International (FLO) and the World Fair Trade Organization (WFTO)]
Fair Trade
Core Fair Trade Principles
Creating Opportunities for Economically Disadvantaged Producers (poverty
reduction)
2 Transparency and Accountability (participation of producers in decision making)
3 Fair Trading Practices (pre payment, long term contract and relationships)
4 Payment of a Fair Price
Ensuring no Child Labour and Forced Labour (UN Convention on the Rights of the
5
Child)
6 Commitment to Non-Discrimination, Gender Equity and Freedom of Association
7 Ensuring Good Working Conditions (ILO conventions)
8 Providing Capacity Building to workers and producers organisations
9 Promoting Fair Trade (raise awareness)
10 Respect for the Environment
1
Fair Trade
Sectors where FT successfully introduced
1 Catering (fruits, drinks and snaks)
2 Tourist souvenir & merchandising
3 Outdoor furniture
4 Indoor decorative furniture
5 Handicrafts
6 Cloths
7 Leather products
 Uncertainty to
introduce FT criteria
in procurement at EU
level
 Different national
initiatives in EU
countries (Bel, Ger,
Dan, Ned, etc.)
Fair Trade and timber sector
• Around 10 million people are employed in forest management
(FAO, 2010)
• Many more are directly dependent on forests for their
livelihoods
• Forestry employment is outside the formal sector  forest work
is very important for rural livelihoods (FAO, 2010)
• In some regions (Latin America, Africa) forest related
employment increased somewhat probably because roundwood
production has increased faster than gains in labour productivity.
• But working and social conditions did not improve along the
time, with direct implications for community livelihood
Combining SFM and fair trade
If forest products do not get a fair or premium price or no market access is
assured, why should poor small forest owners spend more time and resources to
make their forest management more sustainable?
The Fair Trade concept allows community and small forest owners to be
compensated for managing their forests in a sustainable manner through an
assurance of fair and premium prices.
Combining SFM and fair trade
Dual certification case studies, actions and projects
Rubber
sports
balls
Furniture
Chile – SSc
Wood
Technologies
SLIMF
Wood
Honduras COATLHAL
Stationery
and wood
craft
Bolivia Multiagro