Newsletter Forestry and Wood Certification

WWF European Forest
Co-ordination Unit
Avenue du Mont Blanc
1196 Gland
Contact : [email protected]
Newsletter Forestry and Wood Certification
No. 6/2003
Information contained in this newsletter is sent to approximately 14 000 recipients in 14 countries and is translated into 9 languages.
This newsletter provides information on credible forest certification and other steps towards improving forest management. Particular
attention is given to combating illegal logging and forest crime, the involvement of communities in forest management, conservation of
highly valuable forests, trends in the investment sector and companies/ individuals showing leadership.
Contact the editor on [email protected]
Minimise Bottom Line Risk - New WWF Investment Guidelines . 4
FSC Causes a Competitive Edge With Investors ............................ 4
Forests are not Safe From Banks .................................................... 4
Forest - Phoenix From the Ashes of Bankruptcy ............................ 5
Are Global Businesses Profiting from Congo War? ....................... 5
Corporate Responsibility Website .................................................. 6
Sea Region, shows the complexity of illegal
logging in Accession countries. It reveals the
dangerous combination of lack of
governance, illegal actors and socioeconomic
Commission's Action Plan on Illegal
Logging currently does not see illegal
harvesting and trade in Accession and
Candidate countries as a problem that needs
to be tackled, despite repeated calls by
NGOs. In addition, it can be expected that an
increasing amount of illegal timber from
Russia will be entering the EU through the
new member states.
NEWS ON FSC......................................................... 6
Source: WWF Press release, October 21 2003
Rise of FSC Certified Forests in Europe ......................................... 6
FSC Pledge in Canada to Double FSC Area in North America ...... 6
Sixteen State Forest Enterprises in Lithuania FSC Certified ........... 7
FSC- Paper Boom ........................................................................... 7
50% Premium on Low Quality Timber Through FSC .................... 7
Handling Complaints Effectively.................................................... 7
Estonian Government Cracks Down
on Illegal Logging
Stop Denial of Illegal Logging in Eastern Europe ......................... 1
Estonian Government Cracks Down on Illegal Logging ................. 1
NGOs United for Green Procurement ............................................. 2
Danes Exclude Illegal Timber From Public Works......................... 2
UK Construction Sector Chooses FSC ........................................... 2
Illegal Logging Responsible for Indonesian Flood Disaster ........... 3
New WWF Producer Groups in Indonesia and Africa .................... 3
UK Website on Illegal Logging ...................................................... 3
BACKGROUND AND FACTS ............................... 9
CERTIFICATION ASSISTANCE ......................... 9
Improving Forest
Management in Europe
and Around the World
Stop Denial of Illegal Logging in
Eastern Europe
WWF calls on EU member states to
acknowledge the problem of illegal logging
in Accession and Candidate countries and to
take effective measures through the
European Commission Action Plan on Illegal
Logging. The recent report, The features of
illegal logging and related trade in the Baltic
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While the EU is not acknowledging the
problem of illegal logging in Accession
countries the Estonian government is taking
matters in their own hands. The Estonian
Ministry of Environment is seizing forestry
machines suspect to be used in illegal
cuttings and increases law enforcement
capacity through new surveillance devices.
The Estonian NGOs ELF and Estonian
Green Movement welcome these actions but
urge the Government to focus on key drivers
for illegal logging in the country. Changes in
forestry, tax and criminal legislation are
urgently needed to alter the perception that
illegal forestry can be a profitable business.
The Estonian Ministry estimates that the
damage to forests due to illegal logging
amounts to EUR 2,5 million, down from
EUR 3.83 million early 2002.
Forestry and Wood Certification
No. 6 (December)– 2003
Sources: Baltic News Service November 14 2003; Joint NGO
Press release on the EU action plan against illegal logging;
ELF and Estonian Green Movement November 2003
NGOs United for Green Procurement
In October a coalition of 14 NGOs sent a
strong message to the EU to urgently
progress on green and social procurement.
Public authorities must be allowed to take
environmental and social criteria, as well as
equality, into account when awarding their
public contracts. Despite strong support by
the European Parliament and a recent
positive ruling by the European court of
Justice, the Council continues to block
municipalities and other public authorities
that seek to award public contracts in a more
ethical manner.
“The Council makes a farce of democracy by
ignoring the demands of the municipalities
and most significantly the cross-party
demand of the European Parliament,” says
Jan Willem Goudriaan, Deputy General
Secretary of the European Federation of
Public Service Unions speaking on behalf of
the Coalition for Green and Social
Procurement and organisations representing
municipalities. The NGO coalition consists
of WWF, EEB, EPSU, Association of
European Consumers, Social Platform,
European Disability Forum, Greenpeace,
Solidar, Oxfam, Climate Alliance, CAN
Europe, EUROCITIES, Fairtrade and the UK
Clean Clothes Campaign.
Excluding Illegal Timber From Public
The Danish Ministry of the Environment
recently published a timber purchasing guide
which helps public and semi- public
Let’s leave our children a living planet (or own NO slogan).
institutions to ensure the tropical timber they
purchase is produced in a legal and
sustainable manner. The guide concludes that
“at present the easiest way to obtain legally
and sustainably produced tropical timber is
by means of an FSC certificate”. The guide
is however voluntary and requires
“WWF welcomes that the Danish
government takes a first step to exclude
illegal and controversial timber from their
public works”, said Duncan Pollard, Head of
the WWF European Forest Programme. “We
continue to urge the EU to approve green
procurement in their new directives and hope
that other countries will take matters in their
own hands like Denmark.”
The Danish guide gives some credit to the
certification system MTCC on legality issues
however notes that MTCC is not yet a
guarantee for sustainable forest management.
“Currently only FSC gives buyers a choice to
buy from legal and well managed sources”,
said Duncan Pollard. “Other systems do not
meet the required criteria. MTCC certified
timber for instance currently does not
guarantee environmentally, socially and
economically sustainable forest management
and is still missing important steps to verify
legal compliance.”
UK Construction Sector Chooses FSC
On November 11 UCATT (Britain's
construction workers' union) and Greenpeace
launched a new initiative to exclude
controversial timber from the UK
construction sector. In the report The Case
for Specifying Timber From Sustainable and
Legal Sources the organisations make it clear
that companies can only guarantee that
Forestry and Wood Certification
No. 6 (December)– 2003
timber used in their projects is from well
managed forests by purchasing timber
certified by the Forest Stewardship Council
(FSC). The report will be distributed to
UCATT members, contractors, local
authorities, housing associations and
property developers.
The UK is currently the largest importer of
illegal tropical timber in Europe, with
approximately 60% of all UK tropical timber
imports coming from illegal logging
operations in some of the world's most
important rainforests, including the Amazon,
Indonesia and Central Africa. The
construction industry uses approximately
70% of all the timber sold by the UK timber
industry. Central Government contracts
account for 15% of UK timber use, and the
public sector as a whole accounts for 40%.
Secretary, said 'The construction industry is
often criticised for its approach to the use of
natural resources. This initiative is an
opportunity to silence those critics and prove
that everyone within the industry can
contribute to sustainable development.”
Sources: Editorial, Timber Trades Journal, November 15
2003; Press Release Greenpeace, UCATT November 10
Illegal Logging Responsible for
Indonesian Flood Disaster
The devastating flood in Indonesia beginning
of November which left more than 200
people dead or feared killed is largely due to
the rampant logging in Sumatra's forests,
according to environmental groups and
government officials.
"At least 85 percent of the floods and
landslides in Indonesia are caused by illegal
logging", said Longgena Ginting, Executive
Director of Walhi, Indonesia's largest
Let’s leave our children a living planet (or own NO slogan).
Unchecked logging disrupts the natural
absorption and flow of rainwater from the
highlands, triggering floods and landslides
Indonesia struggles to stop forest crime
which devastates the country. 8 trees out of
10 are cut illegally. Indonesia has already
lost 75% of its forests.
Sources: Associated Press; Environmental News Network
November 5 2003; TTJ November 7 2003
New WWF Producer Groups in
Indonesia and Africa
WWF has recently formed Producers Groups
for West and Central Africa as well as
Indonesia, offering a framework for
committed logging companies to progress
towards certification.
By setting up Producer Groups WWF offers
incentives for timber producers around the
world to progress to environmentally,
socially, and economically sustainable
forestry practices. Any company may be
eligible to join, provided they have a clear
and timebound action plan to show how they
intend to progress towards credible forest
certification. Progress against this action plan
will be periodically monitored, using
independent third party auditors.
Indonesian and African producers are facing
increasing scrutiny to demonstrate to buyers
that the products they are offering are legal
and progressing towards certification.
Producer Groups are part of the WWF
Global Forest and Trade Network.
Source: Global Forest and Trade Network October 2003 For
more information go to
UK Website on Illegal Logging
The Sustainable Development Programme of
the Royal Institute of International Affairs in
London, has developed a website which
covers all aspects of illegal logging. The
Forestry and Wood Certification
No. 6 (December)– 2003
informative site describes current political
processes, case studies and recent news on
illegal logging from around the world. Visit
Focus on Responsible
Minimise Bottom Line Risk - New
WWF Investment Guidelines
WWF has produced investment guidelines to
assist financial institutions to minimise their
bottom line and reputational risk when
investing in forest, mining and agricultural
projects around the world. This new focus
results from a mounting recognition of
environmental and financial risks through the
financing of projects impacting forests e.g.
pulp and paper mills, palm oil plantations,
mines and dams.
In October WWF, the World Bank and the
World Business Council for Sustainable
Development hosted a Forest Investment
Forum in Washington DC which brought
together nearly 150 Senior Executives of
companies, development and commercial
banks and other financial institutions as well
as leading conservation agencies. In this
conference a need for investment safeguards
was agreed, both as an incentive to
responsible investment and a deterrent to
unsustainable and destructive activities.
WWF will work with financial institutions
(commercial banks, development banks,
export credit agencies), forest companies,
governments and others to agree a process to
further develop and implement these
investment policies to protect forests and
local communities.
Let’s leave our children a living planet (or own NO slogan).
Source: WWF International October 2003 For a copy of the
investment guidelines go to
FSC Causes a Competitive Edge With
Innovest - a New York based leading
environmental finance advisory firm - has
improved the rating of North America's
largest producer of paper and other wood
products, Domtar, from BBB to A, due to its
recent decision to seek certification for all of
its forests and mills according to FSC
Innovest states that companies like Domtar
who seek FSC certification and co-operation
with NGOs are gaining a competitive edge.
“Major global institutional investors
increasingly recognise commitments such as
Domtar´s as a differentiating factor,
demonstrating the business case for beyond
compliance environmental and social
According to Innovest companies receiving
their top ranking in the forestry sector have
outperformed others by 43% over the last 4
years. “Innovests rating have shown that
sector leaders are becoming more aware of
the link between environmental performance
and the bottom line, leveraging this to reduce
the cost of capital, risk exposure and to
improve reputation.”
Source: Innovest Strategic Value Advisors, Upgrade Alert
(NYSE/TSX: DTC) November 2003 Domtar Inc.
Forests are not Safe From Banks
WWF recently published a report which rates
11 German, Dutch and Swiss Banks
according to their investment behaviour: the
environmental and social standards, and the
Forestry and Wood Certification
No. 6 (December)– 2003
transparency of their investment. The overall
results show that many banks have no
effective safeguards to prevent their money
being used for forest destruction.
The ranking and scoring of the banks from
best to worst:
1. ABN Amro - Netherlands (B+);
2. DEG - Deutsche Investitions- und
Entwicklungsgesellschaft - Germany
3. Hypo Vereinsbank - Germany (B+);
4. UBS – Switzerland (B-);
5. Kreditanstalt für Wiederaufbau –
Germany (C+);
6. Dresdner Bank – Germany (C+);
7. Westdeutsche
Germany (C);
8. Commerzbank – Germany (C-);
9. Participation in the evaluation was
Landesbank (Germany)
Since the 1990s all the surveyed banks had
been subject to massive NGO criticism for
their investment in the Indonesian pulp and
paper and palmoil sector. ABN AMRO from
environmental policies together with NGOs
and in this could serve as an example to
Source: WWF Press release November 20 2003 Download
the German report from
Forest - Phoenix From the Ashes of
Following the bankruptcy of the forest
company Bosques S.A. nearly 60.000
hectares of temperate rainforest in Southern
Chile will be protected with the help of a
bank. FleetBoston Financial Corporation, the
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largest creditor of Bosques S.A., assisted a
Chilean conservation group to purchase the
forest property in public auction for
conservation purposes. "By partnering with
The Nature Conservancy we were able to
construct a unique transaction that reflects
our corporate values and fulfils our financial
responsibilities to our shareholders, while
preserving an ecologically-critical area in
Chile," said Chad Gifford, chairman and
CEO of FleetBoston Financial Corporation.
The Valdivian Coastal Range is one of only
five temperate rainforests on Earth. When
FleetBoston learned of the significance of
this forest, they made a corporate decision to
balance their interests as a creditor with their
commitment to be environmentally and
The acquisition is part of a larger partnership
between The Nature Conservancy, WWF,
Conservation International and local
organizations in Chile.
Source: Press Release WWF US November 6 2003
Are Global Businesses Profiting from
Congo War?
Major international human rights and
development groups are alarmed at the
possible involvement of multinational
corporations in plundering Congo's natural
resources during the five-year conflict that
has caused the deaths of more than three
million people. A dozen groups - among
them Human Rights Watch (HRW), Friends
of the Earth (FoE), Oxfam, and the
International Human Rights Law Group called on the UN Security Council late
October to press the United States and other
Western Governments to launch immediate
investigations into the involvement of
multinational corporations based in their
countries. In January 2003 the Security
Forestry and Wood Certification
No. 6 (December)– 2003
Council approved a resolution strongly
condemning the illegal exploitation of
natural resources in the Democratic Republic
of Congo and demanding that all
governments act immediately to end those
Source: Common Dreams Newsroom October 28 2003
Corporate Responsibility Website
Quantitative evidence on how corporate
responsibility can improve financial bottom
line can be found on the new website
Conversations with Disbelievers. This
website presents practitioners with an array
of data in the form of case studies and
special reports and is designed to be used by
business managers, non-profit leaders,
consultants and public policy makers. The
site has been created by university institutes,
business organisations, marketing experts,
WWF and other NGOs dealing with
Corporate Citizenship in India, Africa,
Europe and America. Access the website on
News on FSC
Rise of FSC Certified Forests in
Globally the amount of FSC certified forests
has risen by close to 29% from June 2002 to
November 2003, from 28.5 million hectares
to 40 million hectares. The biggest increase
of all continents has occurred in Europe
where the FSC certified forest area rose from
18.6 to 25.17 million hectares. The most
important increases in FSC certified area
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since June 2002 occurred in Croatia, Latvia,
Lithuania, Poland and Russia.
Source: FSC International November 2003
FSC Pledge in Canada to Double FSC
Area in North America
Domtar, one of North America's largest
producers of paper and other wood products
has agreed to seek certification all of its
forests and mills according to FSC standards.
Domtar manages nearly 9 million hectares of
forests in Canada. Successful certification
would therefore more than double the
amount of FSC certified forests in North
Amercia. Domtar is the third-largest
producer of uncoated freesheet paper. It is
also a leading manufacturer of business
papers, commercial printing and publication
papers, and technical and specialty papers.
"Environmentally conscious consumers
demand a choice. They want paper that
includes virgin fibre content, but they also
want reassurance that this content comes
from well-managed, sustainable forests.
These same concerns for forest management
also apply to forest products," said Raymond
Royer, President and CEO of Domtar. "By
adhering to a standard that respects the
values of all forest users, including the First
Nations, we believe that the public,
governments, customers, and investors will
also see it as a serious commitment to ensure
the sustainability of our operations".
By certifying all its forest operations and
mills to FSC standards, Domtar will be in a
position to significantly expand its existing
Press Release WWF and Domtar, November 14
Forestry and Wood Certification
No. 6 (December)– 2003
Sixteen State Forest Enterprises in
Lithuania FSC Certified
than 40% over the past 10 years and this
trend will continue.
FSC certificates over 375.000 hectares of
Lithuanian state forests were recently
granted. The FSC certification process of
Lithuania's state forests had started in 2001.
By now 16 state forest enterprises have been
certified and can sell FSC certified wood.
"FSC certification means acknowledgement
of responsible forest management in our
forest enterprises", commented Benjaminas
Sakalauskas, Director General of Lithuania´s
General Forest Enterprise (GFE). Forested
land in Lithuania comprises about 2 million
hectares, approximately 31% of the entire
country. State forests account for nearly half
of the country's forest area.
Sources: SCA, Dalum, Drewsen and Klippan (Inveresk)
October 2003; FSC databases October
2003; CEPI 2002; Ratgeber Papier WWF and Bundesamt für
Umwelt, Wald und Landschaft Switzerland 2001)
Source: NEPcon; FSC News and Notes 17/ November 3
FSC- Paper Boom
FSC paper production in Europe has
quadrupled since the beginning of 2003. This
was the result of an enquiry to major
European paper producers: SCA, Dalum,
Drewsen and Klippan (Inveresk). The
booming development, combined with a
worldwide increase of FSC certifications in
the paper and print sector marks a promising
The number of FSC certified companies in
the paper and print sector worldwide has
doubled since the beginning of the year and
now amounts to 129. Most significant was
the increase in Japan where the number of
FSC certified companies in the paper
industry has risen from 1 in 2000 to 58 in
Worldwide 17% of timber used for paper
production are estimated to stem from virgin
forests. The production of paper and board in
Western Europe alone has increased by more
Let’s leave our children a living planet (or own NO slogan).
For a list of FSC certified paper producers, printers and
wholesalers in Europe go to
50% Premium on Low Quality Timber
Through FSC
Two forest owners reported recently to
WWF Austria that they are very happy with
their decision to FSC certify their forests as it
has already paid off financially. Both forest
owners were able to add value to low quality
timber through FSC and sell it to a market
niche at an astounding 50% increased
premium. Although these may be unique and
not statistically representative cases they
show the potential FSC is generating on the
Source: WWF Austria June and October 2003
Handling Complaints Effectively
A new summary of FSCs complaints
handling system is now available. The FSC
complaints and dispute resolution system is
divided in four levels for resolving
complaints: resolving a complaint, resolving
a dispute, formal dispute resolution and
accreditation appeals. What you should do in
what situation and who to talk to is explained
in practical detail. Access the summary on under Communications
Center/ Factsheets.
FSC Data Easily Accessible
The WCMC/UNEP/FSC/WWF website with
key statistics on FSC is now accessible on
It features among other statistics global and
Forestry and Wood Certification
No. 6 (December)– 2003
regional maps as well as background
information on FSC certification.
Let’s leave our children a living planet (or own NO slogan).
Forestry and Wood Certification
No. 6 (December)– 2003
Background and Facts
The Forest Stewardship Council is currently the only
credible timber certification system supported by
leading environmental and social NGOs. The FSC
label makes it possible for buyers to choose forest
products that come from forests managed to the
highest environmental and social standards and from
legal sources. As global system FSC offers market
incentives for improving forest management around
the world.
Key Statistics
Status: November 2003
Total area of FSC certified forests: 39,865,959
Number of countries with FSC forests: 57
Number of countries with COC and FM/ COC
certificates: 69
FM certificates: 560
COC certificates: 2759
For regional maps and data on certified areas in Europe,
Africa, Asia – Pacific, Latin America and North America go
Programme Information
 For Information on the Forest Stewardship
Council (FSC)
 Global Forest And Trade Network
 Forests For Life Programme, WWF
Certification Basics
An Introduction to Forest Certification: (2001)
NGO Positions on Certification Systems
Behind the logo (2001) -In-depth report of the four
biggest forest certification schemes (CSA, FSC, PEFC
& SFI) analyses the strengths and weaknesses of each
scheme and aims to provide companies, governments
and NGOs with the facts needed for informed
Make Your Own Judgement About
Certification Schemes
Assessing Forest Certification: A Practical Guide :
Certification Assistance
Where to Sell and Buy Certified Timber
Chain of Custody and Forest
Managem ent Certificates - increase in
Jan. 03
COC and
Global search for FSC certified timber and
products: This database allows you to
search by type of timber and timber species, by
product type and supply chain position and country.
On you can search for FSC
certified species all over the world. Search mechanism
include species ( open query) , tenure and country.
Global search for FSC Forest Management and
Let’s leave our children a living planet (or own NO slogan).
Forestry and Wood Certification
No. 6 (December)– 2003
Chain of Custody certificate holders
On you
certification status of a company
Global search for FSC certified forests: The advantage of this
certified forest list is the contact details like telephone
numbers are included.
Most up to date information on which forests and
which companies are certified can be found on the
main FSC International website however here information is mainly aimed at
providing an overview rather than to help establish
Check approved FSC certifiers on
Assistance With Group Certification
Group Certification Toolkit (2001)
Procedures, guidance notes, forms and instructions for
use on how to set up an FSC approved Group
Certification Scheme. For use by forest managers,
forest owners, co-operatives, communities and
harvesting companies.
(case studies  group certification)
To learn from the experiences of other companies
who are already part of the network get in touch with
one of the forest and trade network co-ordinators.
Further Contacts for Assistance With
For assistance on Procurement and Supply Chain
Development, FSC Chain of Custody –
Implementation contact
Multiple Solutions for the World´s Forests by
WWF works on forest conservation through a
multiplicity of approaches and strategies which are
pursued together with regional and global partners:
Credible Forest Certification, High Conservation
Value Forests, combating illegal logging and forest
crime, preventing forest fires, restoring damaged and
degraded forests and forest protection. WWF's Forests
for Life Programme has developed position papers on
global forest issues which are available on
A Practical Guide to Developing a Group Scheme
for FSC-Accredited Certification of Forests: Final
Learning From Others
500 companies are part of the WWF co-ordinated
Global Forest and Trade Network (GFTN), committed
to responsible forest management and trade. They
represent a wide range of actors including forest
owners, timber processors, construction companies,
retailers, investment agencies and local authorities.
Members vary from small family-owned businesses to
world scale leading companies such as IKEA and the
Home Depot. They are committed to gradually
producing, trading and/or sourcing independently
certified forest products. Find more information about
GFTN at:
Let’s leave our children a living planet (or own NO slogan).
The World Bank/ WWF Alliance was formed in
1998 and draws on the comparative institutional
strengths of the partner institutions:
the Bank's access to policy dialogue,
convening power, analytical capacity and
financing operations,
WWF's strong field presence, private sector
partnerships, public trust and forest
conservation expertise.
By combining the strengths of the Bank and WWF,
and their partners, the Alliance is uniquely positioned
to effect changes in forest policy and practices, to help
safeguard biodiversity, and alleviate poverty.
With forests being depleted globally at a rate of 28
hectares per minute, the stakes are high. Urgent,
significant and coordinated actions on a global scale
Forestry and Wood Certification
No. 6 (December)– 2003
are needed to arrest the precipitous and relentless
declines in forest cover, the concomitant loss of
biodiversity, and the effects on the livelihoods of
forest-dependent people.
For more information on the World Bank/ WWF
Alliance go to
For further information please contact
(contact address of NO)
Let’s leave our children a living planet (or own NO slogan).
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