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STA – UE Trainings of SMEs operators (Place & Date) Module 2 CSR in the forestry sector and the sustainable timber supply.

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Presentation on theme: "STA – UE Trainings of SMEs operators (Place & Date) Module 2 CSR in the forestry sector and the sustainable timber supply."— Presentation transcript:

1 STA – UE Trainings of SMEs operators (Place & Date) Module 2 CSR in the forestry sector and the sustainable timber supply

2 Objectives: The concept of CSR and “sustainable forest management” The environmental, social and economic consequences of illegal and unsustainable forest management practices The concept of “legal timber” and the EU Timber Regulation Sustainable forestry and chain of custody certification: FSC & PEFC The fair trade in the timber sector

3 Introduction: Group exercise – speak to neighbour. What do you think CSR and sustainable forestry means? (5 mins) Collect answers on flipchart (10 mins) [interactive]

4 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)

5 CSR = operations & interactions

6 Un-sustainability paradigm Illegal logging Non-sustainable FM Non-fair FM ? Not always interlinked....

7 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 Bolivia80 Brazil20 - 47 Cambodia90 Cameroon50 Colombia42 Ecuador70 Gabon70 Ghana60 Indonesia70 - 80 Laos45 MalaysiaUp to 35 Myanmar50 Papua New Guinea70 Peru80 Thailand40 Vietnam20-40

8 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

9 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

10 Deforestaion Environmental impacts

11 Land use conversion Environmental impacts

12 Forest degradation Deseases, tree fall, fires… Environmental impacts

13 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

14 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

15 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)

16 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

17 A growing awareness about environmental and social problems Taking actions

18 Consumers increasingly interested in provenance of what they buy

19 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)

20 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$ National data can be introduced here

21  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

22  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 Other initiatives for legality

23 FOREST EUROPE criteria for sustainable forest management (MCPFE) ASPECTSCRITERIA Ecological 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 aspects6. Maintenance of other socio-economic functions and condition Ensuring sustainability

24 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).

25 Sustainable forest management certification Internationally, 2 main forest certification schemes: The Forest Stewardship Council (FSC) – The Programme for the Endorsement of Forest Certification (PEFC) – Most sustainable timber procurement policies accept either label as one way of demonstrating compliance with the sustainability requirements

26 Sustainable forest management certification At international level by ASI At national level Third part verification system

27 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

28 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

29 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

30 Q&A and the CoC of a table 1.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

31 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

32 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)]

33 1 Creating Opportunities for Economically Disadvantaged Producers (poverty reduction) 2Transparency and Accountability (participation of producers in decision making) 3Fair Trading Practices (pre payment, long term contract and relationships) 4Payment of a Fair Price 5 Ensuring no Child Labour and Forced Labour (UN Convention on the Rights of the Child) 6Commitment to Non-Discrimination, Gender Equity and Freedom of Association 7Ensuring Good Working Conditions (ILO conventions) 8Providing Capacity Building to workers and producers organisations 9Promoting Fair Trade (raise awareness) 10Respect for the Environment Core Fair Trade Principles Fair Trade

34 1Catering (fruits, drinks and snaks) 2Tourist souvenir & merchandising 3Outdoor furniture 4Indoor decorative furniture 5Handicrafts 6Cloths 7Leather 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.)

35 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

36 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.

37 Rubber sports balls Furniture Wood Stationery and wood craft Combining SFM and fair trade Dual certification case studies, actions and projects Chile – SSc Wood Technologies SLIMF Honduras - COATLHAL Bolivia - Multiagro

38 What is a sustainable timber? Several int. agreements have attempted to define SFM: Forest Principles. UN Conference on Environment and Development in 1992 (UNCED)  developed in FSC P&C for responsible forest management Ministerial Conference on the Protection of Forests in Europe (MCPFE); African Timber Organization (ATO); International Tropical Timber Organization (ITTO); Montreal Process on Criteria and Indicators for the Conservation and Sustainable Management of Temperate and Boreal Forests; Pan-European Forest Process on Criteria and Indicators for Sustainable Forest Management (the Helsinki Process of the MCPFE)  origin of PEFC

39 Principle 1: Compliance with laws and FSC Principles – to comply with all laws, regulations, treaties, conventions and agreements and all FSC P&C Principle 2: Tenure and use rights and responsibilities – to define, document and legally establish long-term tenure and use rights. Principle 3: Indigenous peoples’ rights – to identify and uphold indigenous peoples’ rights of ownership and use of land and resources. Principle 4: Community relations and worker's rights - to maintain or enhance forest workers' and local communities’ social and economic well-being. Principle 5: Benefits from the forest – to maintain or enhance long term economic, social and environmental benefits from the forest. FSC Principle & Criteria 1/2

40 Principle 6: Environmental impact – to maintain or restore the ecosystem, its biodiversity, resources and landscapes. Principle 7: Management plan – to have a management plan, implemented, monitored and documented. Principle 8: Monitoring and assessment – to demonstrate progress towards management objectives. Principle 9: Maintenance of high conservation value forests – to maintain or enhance the attributes which define such forests. Principle 10: Plantations – to plan and manage plantations in accordance with FSC Principles and Criteria. FSC Principle & Criteria 2/2


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