STA – UE Trainings of SMEs operators(Place & Date)

Module 2

CSR in the forestry sector and the sustainable timber supply

Introduction:

Group exercise – speak to neighbour. What do you think CSR and sustainable forestry means? (5 mins)

Collect answers on flipchart (10 mins)

[interactive]

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

The Corporate social responsibility

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

Illegal logging

Non-sustainable FM

Non-fair FM

?

Not always interlinked....

• Every 2 secs, across the world, an area of forest the size of a football field is clear-cut by illegal loggers, leading to the degradation and possible eventual destruction of five million hectares of forests each year.

• In some countries, up to 90% of all the logging taking place is illegal.

• Criminal activity generates approximately US$10–15 billion annually worldwide—funds that are unregulated, untaxed, and often remain in the hands of organized criminal gangs.

• The illegal logs still being cut each year would stretch ten times around the Earth

(World Bank, 2012).

Some figures for tropical countries

The illegality in the forest sector

Country % over total production

Bolivia 80

Brazil 20 - 47

Cambodia 90

Cameroon 50

Colombia 42

Ecuador 70

Gabon 70

Ghana 60

Indonesia 70 - 80

Laos 45

Malaysia Up to 35

Myanmar 50

Papua New Guinea 70

Peru 80

Thailand 40

Vietnam 20-40

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

Sustainable forest management

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

DeforestaionEnvironmental impacts

Land use conversionEnvironmental impacts

Forest degradation

Deseases, tree fall, fires…

Environmental impacts

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

Source: 2011, FAO – FRA 2010

• 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..

Economic impacts

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)

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.

Quiz

A growing awareness about environmental and social problems

Taking actions

• Consumers increasingly interested in provenance of what they buy

What is a sustainable timber?

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

“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)

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$

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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

How EU try to face illegality

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 CongoEssentially, FLEGT-licensed timber will be considered as legal for the purposes of the “EUTR

Other initiatives for legality

FOREST EUROPE criteria for sustainable forest management (MCPFE)

ASPECTS CRITERIAEcological aspects 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);Economic aspects 5. Maintenance and encouragement of productive functions of

forests (wood and non wood)Social aspects 6. Maintenance of other socio-economic functions and condition

Ensuring sustainability

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

At international level by ASI

At national level

Third part verification system

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 Controlled

Reclaimed

FSC 100%: 100% FSC certified inputs

FSC Mix: FSC certified inputs + Controlled Wood inputs + recycled inputs (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

Non controversial source

Reclaimed

PEFC Certified & Recycled: reclaimed post-consumer or pre-consumer inputs and certified material(min 70% certified inputs and min 70% recycled inputs)

PEFC Certified: virgin, recycled and “non controversial” material (min 70% certified inputs and max 85% recycled inputs)

For more information go to www.pefc.org/standards/logo-use

Q&A and the CoC of a table1. What are the causes of

deforestation processes?2. What are the consequences?3. Is Europe responsible for

deforestation?4. How do you recognize a certified

product? 5. Do you know certified

timber/wood products suppliers in your country?

[interactive]

Let’s describe the chain of custody of a wooden table. Who need the certificate?• Forest manager?• Logger company?• Timber trader (broker)?• Wood worker?• Furniture producer? • Large retailers?• Installer?

Group activity

• 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 in the timber sector

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)]

1Creating 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

5Ensuring no Child Labour and Forced Labour (UN Convention on the Rights of the Child)

6 Commitment to Non-Discrimination, Gender Equity and Freedom of Association7 Ensuring Good Working Conditions (ILO conventions)8 Providing Capacity Building to workers and producers organisations9 Promoting Fair Trade (raise awareness)

10 Respect for the Environment

Core Fair Trade Principles

Fair Trade

1 Catering (fruits, drinks and snaks)

2 Tourist souvenir & merchandising

3 Outdoor furniture

4 Indoor decorative furniture

5 Handicrafts

6 Cloths

7 Leather products

Sectors where FT successfully introduced

Fair Trade

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.

Rubber sports balls

Furniture

Wood

Stationery and wood craft

Combining SFM and fair tradeDual certification case studies, actions and projects

Chile – SSc Wood Technologies SLIMF

Honduras - COATLHAL

Bolivia - Multiagro