1. New standard: FSC-STD-40-005v3
SOIL ASSOCIATION FORESTRY
Controlled Wood in
FSC® Chain of Custody
New standard: FSC-STD v3
Good afternoon everyone, for those of you who don’t know me, I’m Emily Blackwell and I work in the Forestry Technical Team. I am going to be introducing the revised controlled wood standard

2. Agenda Practical: Group work Feedback & discussion Presentation:
Introduction to CW
Status of the standard
What has changed?
DDS
Risk assessment
Risk mitigation
QMS
Certification process
Transition process
Practical:
Group work
Feedback & discussion
First I will start with a presentation covering…….
Intro to COC,
status of std,
A review of what has changed compared with the old standard
Then we will focus on the key aspects of the new std….DDS etc
We will also look at the impacts to the certification process and then the transition process
After the presentation we will work in small groups to look at a series of scenarios. Followed by some feedback and discussion.
We have a lot to cover, so it could I ask that we leave the questions and discussion to the end of the presentation

3. Controlled wood overview
Any non-certified material used in a mixed system
(credit or %) must be controlled, thereby avoiding wood from:
1. Illegally harvested wood
2. In violation of traditional and human rights
3. From forests in which high conservation values are threatened by management activities
4. From forests being converted to plantations and non-forest use
5. From forests in which genetically modified trees are planted
Any non-certified wood using in a mixed system must be controlled thereby avoiding wood from unacceptable sources also known as the 5 controlled wood categories:
Illegally harvested wood
Wood harvested in violation of traditional and human rights
Wood from forests in which high conservation values are threatened by management activities
Wood from forests being converted to plantations and non-forest use; and
Wood from forests in which genetically modified (GM) trees are planted

4. FSC Controlled Wood FSC-STD-30-010 FSC-STD-40-005
How is controlled wood controlled and sourced/supplied?
2 standards:
FSC-STD
Implemented by forest management organizations to supply FSC Controlled Wood
FSC-STD
Implemented by chain of custody organizations to source FSC Controlled Wood through a risk assessment/due diligence process
There are 2 standards relating to CW
FSC-STD may be implemented by Forest managers who wish to supply FSC CW. The standard has not changed and will not be revised until after the CW strategy review, so we won’t be covering at the training this week.
FSC-STD which is implemented by COC organisations is the subject of todays training.

5. Stakeholder consultation
Status of the standard
FSC-STD has been revised and v3 will become effective July 1st 2016.
FSC International have run a series of webinars on the new standard which you have all be asked to read/listen to prior to this training – see
Working group
Stakeholder consultation
Field testing
Revision took place due to motion 51 at the 2011 GA ‘strengthening the CW system’. It was developed by a technical working group and went through 2 rounds of consultation as well as field testing.
FSC have run a series of webinars which you have been asked to listen to prior to this training. The quiz on Friday will be based on information found in the webinars.
TWG comprised each of the membership chambers + technical experts + 2 SHC 2013 & field tests 2014 & Approved by BOD Nov 2015
This training relates to the new standard FSC-STD v3

6. Who needs to be assessed?
Used by…
FSC chain of custody certified organizations
To…
Source material without an FSC claim that does not come from unacceptable sources
Sell FSC Controlled Wood and/or FSC Mix products
By…
Implementing a due diligence system (DDS) to evaluate and mitigate risk of using material from unacceptable sources
The std is used to source material without an FSC claim, meaning material that isn’t FSC certified, and hasn’t already been assessed as controlled wood by another organization.
The COC elements have been taken out of the standard and it no longer applies to companies purchasing FSC certified CW.

7. Controlled wood verification programme vs due diligence system
V2-1: Controlled wood verification programme
V3-0: Due diligence system
Maintain documents for determining origin
Obtaining information
Origin of material & supply chains
Risk assessment for origin (NRA/organization)
Risk assessment
For origin (FSC/organization) &
mixing in the supply chain
Low risk
Low risk, no mixing
Unspecified risk
Not low risk, mixing
Field verification of forest management unit
Risk mitigation
(control measures)
As is currently the case, the first step is to document the origin of the material. However, there is now more focus on maintaining information on the supply chain of the material.
The next step is also similar to what is currently required. The organization must use a risk assessment for the origin of the material provided by FSC, or conduct one if an applicable risk assessment doesn’t exist. An extra step here though, is that the organization must also conduct its own risk assessment for the risk of material being mixed with unacceptable material in the supply chain.
If there is low risk for origin, and no mixing in the supply chain, the material can be sourced as controlled wood.
A big deviation to the current process however, is what happens when there isn’t low risk. Where this is the case for a supply area or supply chain, and the organization wants to source controlled wood, it must successfully mitigate the risk that the material comes from unacceptable sources or is mixed with unacceptable material.
Risk mitigation, is similar to field verification in that the purpose is to ensure the risk of sourcing material from an area or supply chain is low when the risk assessment for a larger area has indicated that risk is present, the risk mitigation approach is much more flexible. This is because, depending on the risk, there are many potential options to mitigate risk that do not involve conducting verification checks at the forest level.
If the risk can be mitigated to a satisfactorily low level, the material can be used as controlled wood. If risk cannot be mitigated, the material cannot be used.
Verify low risk
Can’t verify low risk
Risk mitigated
Risk not mitigated
Use material as controlled wood
Not controlled material or FSC Controlled Wood
Use material as controlled wood
Not controlled material or FSC Controlled Wood

8. Contents of Part 1 (1/3)
1 Implementation and maintenance of a due diligence system
Scope (material, suppliers and sub-suppliers, forest management/ownership)
Who can develop the DDS
Access to sites and forests of suppliers and sub-suppliers
Review and revision of DDS (internal audits and follow up)
Obtaining information on material
Information on material, supply chain, origin
Must be sufficient for risk assessment and mitigation
We’ll now run through the key elements of the revised standard.
The first section, titled Implementation and maintenance of a due diligence system, contains general requirements that relate to the whole due diligence process.
The second section comprises the first step in the due diligence system.

9. Obtaining information
Part 1: Due diligence system
Implementing and maintaining a due diligence system
Obtaining information
Risk assessment
Risk mitigation
The DDS is considered to be the greatest departure from the current version of the standard.
Part 1 of the std contains general requirements for implementing and maintaining a due diligence system, and then specific requirements for its three main components, separated into distinct sections.
The DDS is NOT just a set of documents! DDS is performance based….NOT just document based.

10. Obtaining information (1)
Information to obtain, document & maintain:
Description, quantity, species of material
Names and addresses of suppliers
Purchase documentation
Applicable risk assessment
Country of harvest, where legally required
Without information, material cannot be traced, risk cannot be assessed, and risk cannot be mitigated
Now we will move to the specific requirements for obtaining information as the first component of the due diligence system.
Information is needed on the material itself, and information is needed on the supply chains that the material is sourced through from its origin.
Without information, the material cannot be traced back to its origin, and the risk that material has come from unacceptable sources cannot be assessed. Information is also needed so that when there is risk present, it may be mitigated.

11. Obtaining information (2)
Information to obtain, document & maintain:
Evidence of origin to confirm:
Area with a homogeneous risk designation
Certified material or controlled wood supplied to the organization without an FSC claim.
You need to know the origin before you can know
which risk assessment you need to use
NB! Declaration from a supplier alone is not sufficient
Information on supply chains to confirm and document:
Origin
Risk related to the origin and to mixing with non-eligible inputs in the supply chain
Risk mitigation
Without information, material cannot be traced, risk cannot be assessed, and risk cannot be mitigated
Since the objective of the standard is to avoid unacceptable sources, the origin of the material must be known. Importantly there is no fixed unit of the origin that could be referred to. Namely, there is no single scale that can be applied to all organizations or countries, but the common rule is that the origin must be identified to an area with a homogeneous risk designation in the applicable risk assessment.
If the material originates from FSC certified sources (although chain of custody was broken and material is supplied without an FSC Claim), the certified origin must be confirmed.
It is not enough to simply obtain a declaration from a supplier to prove the origin, similarly to the implementation of the current standard.
Requirements for the information on supply chains shall allow to confirm and document the origin, risks status, as well as risk mitigation. Therefore, the scope of information will differ between the organizations depending on their supply chains and those factors.

12. Contents of Part 1 (2/3) Risk assessment
Origin of material (5 controlled wood categories)
Use FSC risk assessment, or conduct risk assessment if no FSC risk assessment is available
Mixing in the supply chain
Conducted by the organization
Use of material as FSC Controlled Wood
Low risk (origin and mixing): OK
Not low risk: Risk mitigation required
Section 3 outlines requirements for the use of FSC risk assessments where they exist, and for the organization to conduct risk assessments where they don’t. These risk assessments relate to the origin of the material and the five controlled wood categories.
New to this version of the standard is the requirement to also assess the risk of the assessed material being mixed with other, unacceptable material in the supply chain. These requirements are necessary to ensure that material assessed by the organization is that which is eventually received and used by the organization. This risk assessment will always be conducted by the organizations, as any risk will be specific to the supply chain.
Currently, a risk assessment for this doesn’t need to be conducted, but the organization needs to be able to demonstrate that material is identifiable back to the district of origin, and that there hasn’t been mixing in the supply chain.
Once both types of risk assessments have been conducted, if low risk is found for all types of risk, the material can be sold as FSC Controlled Wood and used in the production of FSC Mix products.

13. Use of risk assessments (for origin)
Key question:
Is an FSC risk assessment available for the supply area?
For the answer:
Check FSC risk assessment database
All approved FSC risk assessments & information on development
Organized per country
We’ll now focus on the RA for origin.
When implementing the standard, a key question is whether the area that the material is being sourced from is covered by an FSC risk assessment.
The answer to this question can be found on a new webpage on the FSC International website, which contains all approved FSC risk assessments, as well as details of the development of new ones.
This information is organized by country, so it will be a matter of selecting the country you’re interested in to see what the situation is.
Auditors will need to check a sample of RA’s against the FSC RA database as part of the audit process.

14. Use of FSC risk assessments (for origin)
Hierarchy of FSC risk assessments
National risk assessment developed by FSC Network Partners and approved according to FSC-PRO V3-0
NRA
Centralized national risk assessment developed by FSC International
CNRA
National risk assessment developed and approved according to previous requirements
Must be revised by 31 Dec 2017
NRA (old)
There are currently three types of FSC risk assessment until the end of 2017.
First, we have national risk assessments, which are developed at the national level following latest procedures.
CNRA where consultants have conducted the risk assessment, also following latest requirements.
The third type of risk assessment from FSC are what we can call old national risk assessments, which have been conducted according to risk assessment procedures that have since been revised. These risk assessments must be revised by the end of 2017, and will be replaced by either of the first two risk assessments listed, which will remain valid.
Most importantly, the risk assessment database that we’ve just referred to makes it clear what type of risk assessment is available for each country, and states which one shall be followed to implement the requirements of a particular version of the standard.

15. Risk assessments (for origin) by the organization
No approved FSC risk assessment?
Key question:
Was an FSC risk assessment scheduled to be complete by 31 December 2017 at the time the standard was published?
For the answer:
Download schedule on FSC Centralized National Risk Assessment webpage
YES NO
Simplified risk assessment
Extended risk assessment
Same requirements as current company risk assessment (V2-1), strengthened through other requirements
Uses the FSC National Risk Assessment Framework (FSC-PRO a), as for national risk assessments (latest, strengthened FSC risk assessment requirements)
Possible until end of 2017 (FSC risk assessment is in place)
If there is no risk assessment available for an area, the organization has to conduct its own risk assessment. There are two types of risk assessment that an organization can conduct before the end of 2017, and which one of these can be used depends on the plan for FSC risk assessment development for a country. Therefore, the key question if an FSC risk assessment is not approved for an area, is whether one has been scheduled to be complete by the end of This follows a specific clause in the standard.
To answer this we need to consult the main schedule for FSC risk assessment development, which contains the information on the current schedule, but also what had been scheduled at the time of the publication of the standard. = 53 countries (of nearly 200)
If FSC has declared that an FSC risk assessment will be approved for a country before 31 December 2017, until this date, organizations have the option of conducting what has been termed a simplified risk assessment. The requirements for are essentially the same as the current version of the standard, in terms of the types of risk that must be assessed and how. It’s important to note however, that the process is strengthened,
If a risk assessment is not expected to be completed by the end of 2017, organizations will have to implement what has been termed an extended risk assessment. This follows the latest requirements for risk assessment that are used by FSC risk assessments. These requirements are contained in the FSC National Risk Assessment Framework, and are much more detailed and specific than has been used for FSC National Risk assessments, and risk assessments by organizations in the past.

16. Risk Assessment examples
In pairs use the information in Annex A to work out which risk assessment can be used for the following countries:
Australia
Congo
Slovenia
South Africa
1. Approved NRA, 2. Extended RA, 3. Extended RA, 4. Simplified RA
Only possible if Alison printed for each participant!

17. Decision tree for using/conducting a risk assessment
Check FSC risk assessment database
Is an approved FSC risk assessment available?
Yes No
Check FSC risk assessment schedule
FSC risk assessment to be complete by 31 December 2017?
Yes No
FSC risk assessment
(use within 6 months of approval)
Simplified risk assessment (until the end of 2017) OR
Extended risk assessment
Extended risk assessment

18. Which countries does this apply to?
Risk assessment – priority country (1/2)
Is an approved FSC risk assessment available?
YES
What do organizations sourcing in such countries do?
Use the currently approved national risk assessment
Once the new FSC risk assessment is approved (by 31 December 2017), organizations have 6 months to update their DDS to use it
Which countries does this apply to?
Every country that has a national risk assessment:
Argentina
Japan
Australia
New Zealand
Belgium
Poland
Brazil
Portugal
Bulgaria
Romania
Chile
Russia
Czech Republic
Spain
Denmark
Switzerland
Germany
United Kingdom
Italy
Ukraine

19. Which countries does this apply to?
Risk assessment – priority country (2/2)
Is an approved FSC risk assessment available? NO
FSC risk assessment to be complete by 31 December 2017?
YES
What do organizations do?
Conduct a simplified risk assessment (or extended risk assessment, if preferred)
Once the FSC risk assessment is approved (by 31 December 2017), organizations have 6 months to update their DDS to use it
Which countries does this apply to?
Every country that is a priority for FSC risk assessment that doesn’t already have a national risk assessment:
Austria
Belarus
Bolivia
Canada
China
Colombia
Ecuador
Estonia
Finland
France
Georgia
Guatemala
Honduras
India
Indonesia
Ireland
Laos
Latvia
Lithuania
Malaysia
Mexico
Myanmar
Norway
Papua New Guinea
Peru
Republic of Korea
Slovakia
South Africa
Swaziland
Sweden
Turkey
USA
Viet Nam

20. Which countries does this apply to?
FSC risk assessments – non priority country
Is an approved FSC risk assessment available? NO
FSC risk assessment to be complete by 31 December 2017?
There are no current plans for risk assessment development outside of the 53 priority countries
What do organizations sourcing in such countries do?
Conduct an extended risk assessment
Which countries does this apply to?
Every country that is not currently in the scope of FSC risk assessments (not listed in the previous two slides)
The third and final possibility is that there is no FSC risk assessment available for a country, and FSC has no current plans to develop one by the end of Such countries are outside of the 53 countries currently included in the scope of FSC risk assessments.
Organizations wishing to source controlled wood from these countries can conduct an extended risk assessment. This possibility is not time limited in the standard, in that it can continue indefinitely, until an FSC risk assessment is approved.

21. Risk of mixing (1)
Risk of mixing (traceability) – whether material is mixed with material from unacceptable or unknown sources in the supply chain, during:
Transport
Processing
Storage
Considerations:
No global system exists that provides objective measures of risk =>
Identify where risks may exist in supply chains
Specify risks to a level that enables effective risk mitigation
We will now move from obtaining information to risk assessment of mixing in the supply chains
It is important to stress at this point that all the elements of the DDS are interrelated and will require concurrent implementation and verification. Therefore, a lot of issues explained in relation to the DDS in general, or to information collection will also be relevant for the risk of mixing.
Risk of mixing will be present for example, if the organization sources from areas in different risk designations and risk levels, as well as where only part of the production of the organization is FSC certified . Mixing shall be considered for transport, processing and storage of the material.
There are no prescriptive requirements for how the risk assessment shall be conducted, because it will depend on individual supply chains of the organization and its production. The risk will also often be present in different levels of a supply chain or only some of the supply chains. It is therefore very important to specify the risk in order to allow its mitigation.
It needs to be noted that there is no formal division for low and specified risk, and the standard does not allow mixing at all. This approach is consistent with the current controlled wood requirements and aims to eliminate unacceptable sources.

22. Risk of mixing (2) Key question:
The organisation shall consider which controls are in place to ensure that the material from a low risk source has not been mixed with or substituted by other material?
Two key elements:
Control of material WITHIN an entity
Control of material BETWEEN entities
Forest 1
Manufacturer
Distributor
Retailer/
Retail chain
Forest 2
Transport, processing, storage
To determine whether there is a risk of mixing we need to consider controls placed (or not) within the involved entities. The term entity here captures the organization itself, as well as its suppliers and sub- suppliers.
In order to assess and conclude the risk we need to know what is happening along the supply chain, both WITHIN entities involved and between them, during transport, processing and storage. Sometimes the material flow within the entity can be simple, in which case there may be little or no mixing possible in the system.
It´s important here to stress the link to obtaining information that shall allow for conducting the risk assessment. Information needed relates to the integrity of the controls covering the material transport and transformation. Depending on the supply chain and the category of the product/material, different levels of knowledge about the supply chain are necessary.

23. Risk factors Risk of mixing (3) Supply chain
- Quality and availability of information and documents
- Supply chain complexity
- Processing / process complexity
- Known cases of illegal activities in the supply chain
- Fraud and corruption 
- Lack of transparency
Product
- Product complexity
- Species identification
- Species information
- Species risks (np. species related illegality)
- Species substitution
Risk factors
Now, knowing the scope of a risk assessment, we will further elaborate on factors that may indicate the risk.
These can be divided in two interrelated groups, relevant for the supply chain (mainly covering what is happening between the entities) and the product (mainly covering what is happening within particular entities).
We will elaborate on some of the risk factors further, while here I'd like to point out those related to the environment in which supply chains are located. If there are known cases of illegal activities, fraud, corruption or lack of transparency, the risk of mixing will be much higher, as it would be in the case of risk of origin.
These risk factors will influence the audit sampling rate of suppliers

24. Contents of Part 1 (3/3) 4 Risk mitigation
Implement “control measures” to mitigate risk present to a low level
Established by the organization, but may be contained (recommended/mandatory) in FSC risk assessments
The appropriate control measure(s) will be specific to the situation/risk present
Not a firm requirement to determine the FMU of origin and conduct field verification
The final section of the due diligence requirements is for risk mitigation, which must be conducted if an organization wants to source material in cases where risk is identified, either for the origin of the material or mixing in the supply chain, at the risk assessment stage.
Instead of the current requirements for field verification of the forest management unit, risk mitigation requires the implementation of what are termed control measures. In the standard, a control measure is defined as an action that the organization shall take in order to mitigate the risk of sourcing material from unacceptable sources. When we say mitigate, we essentially mean make the risk less bad, or serious, or severe. To be able to source controlled wood where risk has been identified or specified, we need to reduce that risk to a low level.
The actual action or set of actions that comprise a control measure will be completely dependent on the type of risk present, and the specific operations involved. This flexibility is needed because there may be many cases when a trip to the field is not the best or most efficient way to reduce risk.
Control measures will normally be established by the organization, but may also be contained in the relevant risk assessment for the origin of the material. These may be recommended, or mandatory. For risk related to mixing in the supply chain, all control measures will be developed by the organization.

25. What is risk mitigation?
1. Implementation and maintenance of a due diligence system
2. Obtaining information
3. Risk assessment
a) For the origin
b) For mixing in the
supply chains
4. Risk mitigation
(control measures)
Risk
NOT mitigated
Material CANNOT
be used
Risk
mitigated
Risk mitigation is an integral key component of the DDS, following obtaining information and risk assessment for the origin and risk assessment for mixing material in supply chains.
There is no definition for risk mitigation provided in the standard. However, we may describe it as the action or actions of reducing the level or severity of risk that material has come from unacceptable sources, so that, after the actions are taken, the risk can be considered low. The actions for risk mitigation may consist of various measures and procedures that define the DDS in general.
Due diligence used to verify whether material sources are acceptable
Material can be used
1-4: Section numbers
according to FSC-STD V3-0

26. What are control measures?
The individual actions that are implemented to mitigate risk are referred to as control measures
Control measure: An action that the organization shall take in order to mitigate the risk of sourcing material from unacceptable sources.
An action that the organization shall take in order to mitigate the risk of sourcing material from unacceptable sources is called "control measure" in the revised controlled wood standard. We will stick to this terminology for the rest of the presentation.
Like in the case of the DDS, control measures will be specific for the organization and different depending on sourcing area, risk associated with source material as well as specific supply chains of the certified organization.
Therefore, there is no universal set of measures or procedures that could work in all cases and the sets of control measures will differ between organizations.
Control measures can be also implemented to avoid certain supplies

27. Who determines the control measures?
The organization itself
The certification body
The external expert
FSC network partner
Suppliers and sub-suppliers

28. Who determines the control measures?
Risk of origin
- The organization
- The FSC risk assessment(s)
Risk in supply chains
According to the standard, the primary responsibility for the establishment of control measures lies with the certified organization. This follows the performance-based approach taken in the standard and the assumption that the organization will be able to determine the best mitigation actions according to its specific operation and supply chains. Therefore, the organization should have flexibility in this regard.
From one perspective this will lead to difficulties in the implementation of the standard, while on the other hand, control measures may be efficiently adapted to the organization's specific activities, which will increase efficiency of control measures and allow avoiding redundant effort.
Again we need to remember that the risk can be identified in relation to the origin, and to supply chains.
While the organization will always be responsible for establishing control measures for the risk of mixing, there may be other sources of control measures addressing the risk of the origin.
These may be provided in FSC risk assessments, namely national and centralized national risk assessments.

29. Examples of control measures (1)
General guidance
Outcome of a control measure clearly stated
CMs may be accompanied by verification means
SMART concept (specific, measureable, achievable, relevant, tangible)
General examples of control measures:
Stakeholder consultation
Expert engagement
Document verification
Supply chain audits
Field verification at the supply unit level or at the supplier's site
Legally binding agreements with suppliers and sub-suppliers
Product testing to confirm species and/or origin
Risk mitigation training and capacity building of suppliers and sub-suppliers
Exclusion of suppliers
Box 4: The establishment of control measures (example)
Indicator
2.2
Risk specification
Discrimination of women in employment - salary gap.
Control measure
Stakeholder consultation confirms no financial discrimination of women by suppliers (NOTE: another control measure or control measures can be established and implemented as well).
General requirements for control measures (1)
Outcome clearly stated
Approved by CB when in conflict with legal requirements
NOTE: It is not a conflict where FSC requirements exceed legal requirements
Use applicable controlled wood documents (FSC-PRO b)
E.g. existing HCV frameworks
Indicators and verifiers in an approved FM standards may be used
Stakeholder consultation
Always may be used to verify adequacy
In some cases mandatory (=> specific requirements)
Must follow specific requirements when used (Annex B)
Or, finally, exclusion of suppliers to avoid sourcing material from areas of risk or when the risk cannot be mitigated otherwise.

30. Examples of control measures (2)
Field verification at the forest level (supply unit)
May include different activities depending on risk (examples):
Document review
Visits to harvesting sites
Interviews
Field verification of producers
Visit at supplier’s premises
Interviews with staff
Visits to processing and storage sites
Now we will elaborate on some of the examples for control measures.
Here, as a reminder from the previous webinar we wanted stress the broader meaning of field verification and what it can include.
The first type of field verification is the verification at the forest level (meaning at "supply unit level").
Risk and supply chain structure will determine which exact activities may be included in the verification at forest level. It may include document review, visits to harvesting sites or interviews with different stakeholders. It may also include all of these elements together.
Another type of field verification is the verification of suppliers, or sub-suppliers. Also here, no specific requirements are provided. Such verification may include visits at supplier premises, interviews with staff. It may also involve visits to processing and storage sites, especially when there is risk of mixing.
The possibility of sampling and the sampling rate for field verification, as well as other control measures are to be determined by the organization and the standard does not provide specific requirements for them.
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31. When can material be used?
AFTER the DDS has been implemented and it has been confirmed that:
There is low risk of origin and no risk of mixing in the supply chain(s), and/or
Material that previously carried an FSC Claim (FSC100%, FSC Controlled Wood) was not mixed in the supply chain, and/or
Risks have been mitigated through adequate control measures
NOTE: If risk mitigation requires field verification,
material can only be used after the field verification
confirms risk mitigation
It is important to stress when material evaluated through the DDS can actually be used.
Material can only be used AFTER the DDS has been implemented and confirmed as effective. To provide an example, let's imagine that the risk for origin was revealed and forest management activities pose a threat towards HCVs in part of a supply area. The Organization has analysed its supply chains and concluded that the only adequate mitigation means is field verification at the forest level. The Organization has then established a plan for field verification, including which forests, when and in terms of what will be evaluated.
In addition to the risk of origin, the organization has established that in case of one of the sub-suppliers there may be the risk of mixing.
Now, the organization could only use material from this part of the supply area when
- first, the field visits were conducted and risk mitigation confirmed, and,
- the risk of mixing was addressed.
Another case could involve the risk of sourcing genetically modified trees. Here no field visits are needed and the Organization could check supplied species at its premises, depending on the form in which the material is supplied in.

32. Part 2: Quality management system requirements
Contents
5 Competence, documentation and records
6 Publicly available information
7 Stakeholder input and complaints
We’ll take a quick look at Part 2 of the standard, which is titled Quality Management System. Like Part 1, the requirements are divided into sections. The first, which is section 5 of the standard, is for competence within the organization to implement the standard, and requirements for documenting activities and maintaining records. Section 6 contains requirements for information that shall be made available to the auditing certification body for publication to stakeholders, and section 7 contains requirements for a procedure to receive input from stakeholders and ensure that complaints are properly dealt with.

33. Part 2: Quality management system requirements
Competence, documentation and records
Management representative to ensure conformity with the standard
Staff awareness and competence
Documented procedures
Maintenance of documents and records
With respect to competence, it is required that the organization identifies a management representative to ensure conformity with the requirements of the standard. This person needs to be part of the management of the organization, and have control over the activities within the scope of the standard. This is to ensure the procedures for the due diligence and quality management systems are established, implemented and maintained. Of course, the person needs to have the required knowledge and competence to fulfil the role.
There are also requirements for staff involved in the implementation of activities under the scope of the standard, to demonstrate awareness of the relevant procedures, as well as competence to implement them. These are new to this version of the standard, where requirements previously focused on the process of staff training, which was required, and not the outcome, which is knowledge and competence. All relevant procedures to implement the standard must be documented, meaning written in electronic or paper form, and be maintained for a minimum of five years, as is currently the case.

34. Part 2: Quality management system requirements
6 Publicly available information
Written summary of the DDS for the certification body, included in the public summary of the certification report on the FSC database (info.fsc.org)
Includes:
Supply area
Risk assessment and designations
Complaints procedure and contact info
Risk mitigation
Section 6, Publicly available information, contains requirements that significantly contribute to an increase in the level of transparency of the implementation of the standard. It outlines the information that the organization must provide to its certification body, not for the purpose of audit activities, but so that the certification body can make this information available in the public summary of the certification report.
The information to be provided is essentially a summary of the due diligence system, and shall include information on the supply areas and applicable risk assessments used. For the risk assessment, this is either reference to an FSC risk assessment, or a copy of the actual risk assessment conducted by the organization. Further information includes details about the control measures implemented to mitigate risk related to the origin of the material, the procedure for filing complaints, and contact information.
The certification body must upload the public summary of the certification report to the FSC certificate database, at info.fsc.org, and this is where the information will be available to stakeholders.
We have developed an application form for all clients wishing to be audited to the new standard. The application form also doubles up as a public summary which can bee uploaded to the FSC database.

35. Part 2: Quality management system requirements
Stakeholder input and complaints
Documented procedure to handle comments and complaints from stakeholders on the DDS
Includes:
Acknowledging receipt
Initial response
Informing of the procedure
Assessing complaints
Dialogue
Corrective actions
Record keeping
The final section is for stakeholder input and complaints. Here, requirements for receiving input and processing complaints from stakeholders related to controlled wood activities have been expanded and are much more specific than similar requirements are currently.
Organizations implementing the standard are required to have and implement a documented procedure for handling comments and complaints for stakeholders, and the requirements are prescriptive in terms of what this procedure shall include, from the acknowledgement of receipt of comments, to assessing and verifying the validity of complaints, forwarding on to other organizations or bodies as needed, taking corrective actions as needed, and documenting all processes.

36. FSC-STD-40-005 V2-1 (plus FSC-DIR-40-005)
Transition to the revised standard
FSC-PRO The Development and Revision of FSC Normative Documents
Section 12 “Phase-in of revised normative documents”
12 month transition period from effective date, during which organizations are evaluated against revised normative standard
By end of transition period, all organizations must have been audited against the revised standard
Expiry date of certificates issued according to V2-1 (18 months after effective date = 31 December 2017)
FSC-STD V2-1 (plus FSC-DIR )
Transition period
FSC-STD V3-0
That will be all in terms of the requirements of the standard itself, and we will now look at FSC’s rules for how revised standards enter into force and are used by certificate holders and new applicants for certification.
Such requirements are contained in a separate document FSC-PRO The Development and Revision of FSC Normative Documents and they apply to every normative document in the FSC system.
Importantly, every new or revised document has an effective date, which begins a transition period during which it is phased in to the normative framework. In the case of revised documents, it also begins the period during which the previous version is simultaneously phased out. At the end of this transition period, which is normally 12 months, all certified organizations and applicants for certification, shall have been evaluated against the revised document.
So here we have the two standards, and their figurative periods of time during which they exist and will phase in and out of the FSC normative framework. Importantly, these periods overlap. Another important note, is that when we refer to version 2-1 of the standard, we also refer to all applicable advice notes for the standard, which are contained in a separate document, and will also be phased out.
Looking now at dates, the revised standard was published on 18 December The time between publication and the effective date gives stakeholders time to update to the new requirements. It is normally 3 months, however, for the revised controlled wood standard, this period was extended to a little over 6 months, with the effective date was set to 1 July The 12 month transition period that begins with the effective date ends on the 30th of June in It is by this date that all existing certificate holders, and new applicants for certification must have been audited according to the revised version. This means there is some flexibility in what happens during the transition period, and organizations may initially choose to be audited against the old version.
At the end of the transition period, the old version of the standard is formally withdrawn from the FSC framework. All certificates issued according to the old version will expire by 18 months after the beginning of the transition period – in our case, by the end of 2017.
Effective date:
1 July 2016
End of transition period:
30 June 2017
Published:
18 December 2015
(Approval: 11 November 2015)

37. By end of transition, must be audited with V3-0
Transition from the current to the revised standard
Example 1
Normal audit schedule
May 2015
V2-1
Normal audit schedule
May 2016
V2-1
Normal audit schedule
May 2017
V3-0
Normal audit schedule
May 2018
V3-0
FSC-STD V2-1
2015
2016
2017
2018
Transition period
The new version is phased-in and the old version is phased-out
By end of transition, must be audited with V3-0
FSC-STD V3-0
FSC-STD V3-0
Now, we’ll work through two example audit schedules to see how the transition can take place in practice.
This first example is very straightforward. We have an organization that is normally audited each year in the month of May. By the time of its audit during the transition period it has updated its systems to follow the revised standard, and it is audited against the revised version of the standard. Its audit schedule remains unchanged into the future.
Effective date
1 Jul 2016
End of transition period
1 Jul 2017
Expiry of simplified risk assessments and ‘old’ NRAs
31 Dec 2017

38. By end of transition, must be audited with V3-0
Transition from the current to the revised standard
Example 2
Normal audit schedule
September 2016
V2-1
Normal audit schedule
September 2015
V2-1
Audit against V3-0 by 30 June 2017
Normal audit schedule
June 2018
V3-0
FSC-STD V2-1
2015
2016
2017
2018
Transition period
The new version is phased-in and the old version is phased-out
By end of transition, must be audited with V3-0
FSC-STD V3-0
FSC-STD V3-0
In this second example, the organization is normally audited each year in September.
The key rule is that all organizations shall be audited against the revised requirements by the end of the transition period. By the time of what would be its scheduled audit during the transition period, this organization will have had at least 8 months to update its systems to the revised standard from the date it was published, but may need longer to make the transition. In order to make the most of the time allowed in the transition period, the organization may choose to be audited against version 2-1 of the standard according to its normal audit schedule, and choose to be audited against version 3-0 with an additional audit at the end of the transition period, say in June This will essentially give the organization an additional 9 months to update to the revised standard. However, it also means that they will need to schedule the extra audit, and have two audits in a year-long period.
Effective date
1 Jul 2016
End of transition period
1 Jul 2017
Expiry of simplified risk assessments, and ‘old’ NRAs
31 Dec 2017

39. Auditing checklists
The audit checklist for Controlled Wood is found in the COC report template on worksheet ‘controlled wood’.
The one worksheet contains:
Part I DDS,
Part II Quality Management System
Annex A Risk Assessment by the organisation
Annex B Minimum requirements for stakeholder consultation
Template for simplified risk assessment is found as Annex B1 – optional.
Annex B1 is unchanged
Template for extended risk assessment is found in FSC-STD v3-0 Annex G

40. Annexes Annex B2 replaced by the ‘Public certification summary’
Annex H. CW Expertise – includes the minimum requirements for expert qualifications – which need to be used to evaluate several requirements in the checklist
B2 removed – the standard only applies to companies purchasing uncertified wood
Annex H – to be used as an aide memoir during audits – used to evaluate 1.3 (extended risk assessment), 4.9, 4.10 (justification of adequacy of company control measures for category 2, 3 & in relation to FPIC)
All the essential information is in the report template, but please keep a copy of the standard with you at audits – a printed copy will be easier to refer to while completing the checklist

41. Stakeholder consultation
Required at first assessment & RA + where material sourced from unassessed, specified & unspecified areas
Identify and invite directly affected stakeholders (inc FSC network partners)
Public notification
Provide information to stakeholders (according to section 6 of std) at least 6 weeks prior to evaluation
Use culturally appropriate methods
Respond to stakeholders within 30 days of certification decision
Public notification aims to capture ‘interested stakeholders’

42. Evaluation of the DDS
Risk assessment designations to be checked by auditors during the audit
Strongly recommended to consult published risk assessments
Sampling of field audits – ‘sampling pool sufficient to confirm mitigation of risk related to origin and risk of mixing’
Evaluate whether risk assessment for mixing (transport, processing & storage) is ‘adequate to the scope of the DDS and justified’
not clear at this stage what ASI will accept re sampling at field supply unit level

43. Evaluation of the DDS
Evaluation of risk mitigation – were experts used, did the organisation follow SHC annex?
Look at ‘a sample’ of CM’s, for each type of risk identified in the DDS e.g. sample of field audits, verification of a sample of records of stakeholder consultation
Compare against CM’s in Annex E
Look at results of internal/external audits
Comments from stakeholders
Comments/complaints & appeals to CB
Process of review, revision of DDS
Risk of mixing – keep this flexible – quote case by case….

44. Summary Practical: Group work Feedback & discussion Presentation:
Introduction to CW
Status of the standard
What has changed?
DDS
Risk assessment
Risk mitigation
QMS
Certification process
Transition process
Practical:
Group work
Feedback & discussion

45. Thanks! Credit to FSC IC for some of the graphics and content
Other photos & graphics courtesy of clip art