FSC Setting the Standard for Responsible Forest Management

1. Forest Stewardship Council… because forests matter FSC Setting the Standard for Responsible Forest Management

2. The solutions we provide… • Standards that reflect agreed principles for responsible forest management, • An accreditation/certification system that monitors adherence to FSC standards • A product labelling system that rewards responsible forest managers Together: A market driven mechanism to improve forest management, worldwide

3. FSC International Center ASI-Accreditation Services International FSC Europe RO FSC Canada FSC Russia FSC U.S.A. FSC China FSC A.C. Oaxaca, Mexico FSC Asia RO SO Asia FSC Africa RO Central Africa FSC Latin America RO Forest Stewardship CouncilFSC Global Networks … • National Initiatives in 38 Countries + 10 Applicants • 16 Certification Bodies + 7 Applicants • 26 Nationally developed indicators + 7 Applicants in 21 Countries • 85‘801‘495 hectares certified in6‘305Certificates in 82 Countries Data as of January 2007

4. FSC Controlled Wood standards Background…… • Two standards: • FSC-STD-30-010 FSC Controlled Wood standard for forest management enterprises • FSC-STD-40-005 Standard for company evaluation of FSC Controlled Wood 40-005 designed to help FSC CoC companies avoid ‘unacceptable’ wood 30-010 designed to help forest management enterprises demonstrate that they are not supplying ‘unacceptable’ wood

5. FSC Controlled Wood standards Background…… FSC-STD-40-005: • First version (1.0) approved by the FSC BoD in 2004 together with a new CoC standard for manufacturing companies • Replaces the ‘controversial sources’ requirements included in the FSC Percentage Based Claims policy • Introduces a Risk Approach for the uncertified sources • Review during 2005 and 2006 • Second version approved by the FSC BoD in October 2006

6. FSC Controlled WoodWhy not legality alone?…. • Verification of legality is not sufficient because: • legal requirements are not consistent or universally acceptable (i.e. what is legal in country X may be unacceptable in country Y and illegal in country Z) • legal requirements are often not consistent (sometimes contradicting) between international, regional and national levels • scope of legality is not defined universally (i.e. to what extent are financial, economic, environmental, social legislations and court decisions included) • In some places, legal framework could promote forest conversion or practices that violates indigenous peoples rights.

7. Forest Stewardship CouncilWhy not Controlled Wood alone ? • Verification of Controlled Wood alone is not sufficient because: • Controlled Wood DOES NOT equal good forest management, because: • no monitoring of the management plan is required and often no management plan is required • no requirements on use of exotic species, pesticides or fertilizers • no environmental impact assessment or requirements on ensuring biodiversity • no social impact assessment or requirements on social benefits

8. Forest Stewardship CouncilFSC Controlled Wood … • The FSC Controlled Wood Standards aims to avoid from MIXING with FSC-certified material in trade, processing, manufacturing and retailing, timber & timber productswhich originate from: • illegal logging activity • areas where traditional and civil rights are violated • Threatened High Conservation Values (HCVs) • Areas converted from forests and other wooded ecosystems to plantations or non-forest users • genetically modified trees

9. Forest Stewardship CouncilFSC Controlled Wood Indicators … • Indicators related to legality: • compliance with harvesting laws • species, qualities and quantities are classified and measured according to legal requirements • legal sales and transport documents • compliance with requirements of the “Convention on International Trade in Endangered Species – CITES” • forest governance and enforcement

10. Forest Stewardship CouncilFSC Controlled Wood approach … • Businesses and industries buying wood from un-certified sources for MIXING with FSC-certified material shall: • Identify supplies’ countries and districts • assess the district for risk of violation of the indicators of the controlled wood standards • Implement a company verification program for suppliers according to the results of the risk assessment • have their risk designation and company verification program audited by an FSC accredited certification body • 2nd AND 3rd party audit

11. Forest Stewardship CouncilRisk Assessment … • If the supplier of un-certified timber is located in a: • ‘low’ risk area, the timber shall be considered Controlled Wood. • ‘unspecified’ risk area, the forest management units shall be evaluated against the indicators for Controlled Wood. • Both are checked by an FSC accredited Certification Body Is FSC material mixed with uncertified material? YES Does the uncertified timber come from ‘low’ risk areas? YES 3 party audit FSC Controlled Wood NO Supplier field level verification 2 &3 party audit

12. FSC Controlled Wood standards Challenges…… • Facilitate implementation for secondary manufacturers and companies further down the FSC supply chain • Ensure quality and consistency of 3rd party auditing (Train CBs) • Ensure risk approach takes into account complex supply chains

13. FSC Controlled WoodFuture developments…. FSC Controlled Wood Risk Register: • Web-based tool • Facilitates the identification and assessment of risk from forest areas • Forum for registered users to catalogue and communicate data on risk FSC Database: • Transparency and credibility on Risk assesment done by companies • Facilitate the identification of CW and FSC certified sources FSC Controlled Wood training Program: • Focus on the needs for training of CBs and companies

14. The FSC Risk Register: key elements

15. FSC Risk Register • Data viewed according to risk category or country and district • Summary of potential risk provided • Link to site where data is located is provided

17. … because forests matter