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Module 2 CSR in the forestry sector and the sustainable timber supply. STA – UE Trainings of SMEs operators (Place & Date). Introduction:. [interactive]. Group exercise – speak to neighbour. What do you think CSR and sustainable forestry means? (5 mins ) - PowerPoint PPT Presentation
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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$
Nation
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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