Forest and Wood Certification. Ed. 7/2000
Newsletter Forestry and Wood Certification No.1/ 2004 1/20042003No. 1/2004
Information contained in this newsletter is sent to approximately 14 000 recipients in 14 countries and is translated into 9 languages.
This bi-monthly newsletter provides information on progress in improving forest management around the world. Particular attention is given to credible forest certification, threats to forests such as illegal logging, trends in the investment sector and companies/ individuals showing leadership.
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NewsletterForestry and Wood Certification
No. 1 (February)– 2004
Contents
Improving Forest Management in Europe and Around the World 1
Rapid FSC Developments in Russia 1
Eco-rating of Russian Forest Products Companies 2
Government Rating on Responsible Procurement 2
Anti-Illegal Logging Project in Latvia Wins World Bank Price 3
20% of Timber in Danish-Russian Trade Could be Illegal 3
Unfortunate Trend to Tropical Timbers in Parquet Flooring 3
The Keurhout Label Becomes an Instrument for the Timber Industry 4
Illegal Logging Must be Removed From European Trade – says Industry 4
Law Workshops Against Illegal Logging in Russian Far East 4
A Small Step Forward in Indonesia 5
A Chance for Tesso Nilo? 5
Orang- Utans Facing Extinction 5
Focus on Responsible Investment and CSR 5
New Risks in Old Supply Chains: A Survey of Palm Oil Trading Chains 5
Why Global Corporate Citizenship Matters For Shareholders. A Survey Of Leading CEOs 6
How do UK Banks Perform on the Environment 6
Doing Business - With a Vision 7
Canada´s Timber Giants and NGOs Form a Coalition 7
News on FSC 8
FSC Certificate Influences Consumer Behaviour 8
Put a Cork in it – FSC Promotion for Cork 8
New FSC Web pages on Chain of Custody Review and SLIMF 8
FSC Annual Review 2003 9
Membership Development of FSC 9
Background and Facts 9
Certification Assistance 10
Improving Forest Management in Europe and Around the World
Rapid FSC Developments in Russia
With current progress and developments in Russia WWF expects that by 2005 around 10 million hectares of Russian forests will be FSC certified.
· Commitments to seek FSC certification in 2004 have been made by the companies Volga Pulp and Paper Mill and one of Russia’s biggest logging companies Cherepovetsles.
· The Austrian paper company Neusiedler has committed to seek FSC certification for 1,16 million hectares of forest in the Russian Republic Komi. Aim of the company is to source 35% of the timber for its daughter company Syktyvkar from FSC certified forests by 2005.
· Certification is also progressing in Siberia. Russia’s biggest sawmill, Novoeniseysky LPH, located in Krasnoyarsk region, is currently being audited to achieve FSC certification for part of its logging operations.
· The Archangelsk Pulp and Paper Mill has started FSC certification in one of its logging companies in Maloshuika Les.
· WWF is working with the companies Solombala LDK and Lesosibirsk LDK-1 to map and protect pristine forests in their respective leasing areas.
· Ilim Pulp, Russia´s largest pulp and paper company announced that it will seek FSC certification in 2004 for its pulp and paper mills in the Archangelsk and Irkoutsk regions.
(Ilim Pulp, Archangelsk PPM, Volga PPM, Solombala LDK are members of the Russian Association of Environmentally responsible companies – part of the WWF Global Forest and Trade Network.)
Sources: WWF Russia January 2004; Neusiedler Pressemitteilung, 28. November 2003; Mitteilung WWF Österreich, 21. November 2003
Eco-rating of Russian Forest Products Companies
WWF Russia, together with the Russian rating agency Expert RA, has carried out a rating of Russian companies on their ecological performance. The rating takes into account specific features of the Russian logging, wood processing and pulp and paper industry. Russian companies were rated according to the ecological effects of their manufacturing process, level of environmentally sound management, according to the transparency of the company on environmental problems and their readiness to engage in dialogue.
Volga Paper / Eco A+Kartontara / Eco A+
Oneghskiy LDK / Eco A+
Cherles / Eco A
Neusiedler Syktyvkar / Eco A
Arkhangelsk Pulp& Paper Mill / Eco B++
Chudovo - RWS / Eco B++
Kotlass Pulp&Paper Mill / Eco B++
Plitspychprom / Eco B++
Solikamskbumprom / Eco B++
Solombala LDK / Eco B++
Terneyles / Eco B++
UILPK / Eco B++
National Timber Company / Eco B++
CKK / Eco B+
Igirma – Tayriku / Eco B+
Nord-West Timber Company / Eco B+
Solombala Pulp&Paper Mill / Eco B+
Stupino KPK / Eco B+
Ust – Pokshenga LPH / Eco B+
LEMO / Eco B+
New Enisey LHK / Eco B+
Dvina Harvesting / Eco B
SLT – Timberplant #3 / Eco B
Shatura / Eco B
UST-Ighora Vernee Company / Eco B
Baykal Pulp&Paper Mill / Eco C++
Dallesprom / Eco C++
Tyndales / Eco C++
Pinjuga Harvesting / Eco C+
EcoA++ The level of ecological responsibility is considered to be exceptionally high. Ecological risks are minimal
Eco A+ The level of ecological responsibility is considered to be high. Ecological risks are insignificant
Eco A The level of ecological responsibility is considered to be rather high. Ecological risks are low
Eco B++ The level of ecological responsibility is considered satisfactory. Ecological risks are rather low
Eco B+ The level of ecological responsibility is considered to be acceptable. Ecological risks are moderate
Eco B The level of ecological responsibility is considered to be insufficient. Ecological risks are passable
Eco C++ The level of ecological responsibility is considered to be low. Ecological risks are rather high
Eco C + The level of ecological responsibility is considered to be extremely low. Ecological risks are high
Eco C The level of ecological responsibility is considered to be unsatisfactory. Ecological risks are exceptionally high
“The rating shows that some companies are better than others and Western buyers should be aware of this”, said Andrej Ptichknikov, WWF forest specialist in Russia. “Buyers should influence these companies to improve their performance. All who want more insight into the ecological judgement on companies should contact WWF Russia.”
Source: WWF Russia, December 2003 For questions on companies contact . For questions on the eco-rating contact
Government Rating on Responsible Procurement
The NGO FERN, in a new report, examines the timber procurement policies of EU member states and the USA. According to the report the USA and six out of the nine EU member states do not have a national policy on procurement of timber from legal and sustainable sources. “Only the UK and Denmark are currently operating substantive policies that recognise the complexity of defining legal and sustainable sources and produce guidance on how to determine compliance”. The report concludes that in spite of restrictions imposed by EU and WTO rules governments do have substantial scope to insist on timber products from legal and sustainable sources. To assist EU members in this the EU commission should revise its current guidance on procurement as soon as possible.
Government purchases account for a substantial proportion of world trade in timber products. Governments thus have enormous power on the supply chain to combat illegal logging and to promote responsible forest management.
FERN Report To Buy or not to Buy. Timber Procurement Policies in the EU January 2004 Access the report on http://www.fern.org/pubs/reports/procure.pdf
Anti-Illegal Logging Project in Latvia Wins World Bank Price
A project of the Danish NGO NEPCon was one of the winners of the recent World Bank’s Development Marketplace (DM) Global Competition which took place in December 2003. The winning project idea is to provide incentives for private forest owners in Latvia to harvest and sell timber legally through an auction system. This will now be funded by the World Bank.
Through the project harvesting rights for standing stock on private forest land will be sold through auctions. According to non-official estimations, the prices paid for wood from Latvian state forests sold as standing stock at auctions are significantly higher than timber sold in smaller quantities by private forest owners to often illegally operating companies on the black market in Latvia. Through the establishment of an auction system both, forest owners as well as the government are expected to profit economically while providing an incentive for legal harvesting. As a consequence legally operating companies will also get increased access to timber on private forest land.
Sources: World Bank December 2003; NEPCON December 2003 http://web.worldbank.org/WBSITE/EXTERNAL/OPPORTUNITIES/GRANTS/DEVMARKETPLACE/0,,contentMDK:20147593~pagePK:180691~piPK:174492~theSitePK:205098,00.html
20% of Timber in Danish-Russian Trade Could be Illegal
A WWF report released in December estimates that 20 % of Russian wood products exported to Denmark could be illegally harvested.
The report, The Russian-Danish trade in wood products and illegal logging in Russia, highlights the risks for Danish companies to buy illegal wood unless measures are taken to keep it out of their supply chains. Russia is the fourth largest supplier of wood products to Denmark. Most of the wood products imported to Denmark come from Northwest Russia (47 %) or Siberia (35 %).
Download the report and WWF recommendations from http://www.panda.org/downloads/forests/russiandanishtradeinwoodproductswwfreport2003.pdf
Source: WWF Russia and WWF Denmark December 2003
Unfortunate Trend to Tropical Timbers in Parquet Flooring
In January, Domotex, the annual global trade fair for the carpet and floor covering industry, based in Germany, showed a trend to tropical timbers in parquet flooring. According to the online news service IHB almost all parquet exhibitors had added tropical timber to their sortiment. In particular Jatoba from South America seems to be a big trend with parquet producers as well as Merbau, Jarrah and Teak. “Without the FSC logo the use of tropical timbers is very likely to contribute to forest destruction”, said Duncan Pollard, Head of the WWF European Forest Programme. “We strongly recommend that parquet producers source FSC timbers which are available on the market.”
Next to Mahogany, Jatoba is one of the key timbers from the Amazon basin where up to 80% of wood is harvested illegally. 1.8million hectares of forest in the Amazon are destroyed every year. Merbau is cut in Indonesia where the illegal cutting rate is also 80%.
FSC timbers for parquet flooring can be obtained from a range of sources. Go to Global search for FSC certified timber and products:
www.certifiedwood.org This database allows you to search by type of timber and timber species, by product type and supply chain position and country.
On www.fsc-info.org you can search for FSC certified species all over the world. Search mechanism include species ( open query) , tenure and country.
Source: IHB – www.holzboerse.de January 22 2004
The Keurhout Label Becomes an Instrument for the Timber Industry
On December 31 2003 the Dutch Keurhout Foundation ceased operations after 7 years. Official reasons were the ongoing lack of financial resources as well as the lack of political and social support.
The gatekeeper of certificates for sustainable forestry entering the Dutch market had repeatedly been criticised by NGOs for lack of transparency of their decisions. A KPMG-evaluation commissioned by the Dutch government 2 years ago had concluded that Keurhout´s decisions were insufficiently substantiated.
Now the Dutch Timber Trade Association has decided to take over the validation of certificates for sustainable forestry from the Keurhout Foundation and will make the Keurhout logo available to its members. In a recent press release the Association admits that the Keurhout logo “will become an instrument of and for the timber sector.”
“A certification which is not an independently monitored quality assurance has little added value to the industry on the market. What is the value in certifying yourself?”, challenges Duncan Pollard, Head of the WWF European Forest Programme.
Source: Press release Netherlands Timber Trade Association, November 7 2003
Illegal Logging Must be Removed From European Trade – says Industry
A complete removal of illegal timber is needed from European trade according to key players in the sector. In a recent meeting it was recognised that the industry is under serious pressure to move forward rapidly on the issue of illegal timber. A range of initiatives to help deliver the European Commission Forest Law Enforcement, Governance and Trade Action Plan (FLEGT) plan will be explored in the coming months.
Source: Timber Trade Journal, 23 December 2003
Law Workshops Against Illegal Logging in Russian Far East
To raise the level of expertise of forest inspectors in the Russian Far East on how to stop illegal logging, workshops on legal issues are held by WWF every six months. The recent workshop “Administrative, Criminal, and Civil Liability for Violations of Forest Use and Protection Legislation” - organised as part of the WWF and IKEA Co-operation on Forest Projects - aimed to get participants better acquainted with current legislation, and allowed them to exchange their experiences on how stop illegal timber harvesting. Participants of the workshop included representatives from special anti - illegal logging brigades, state forest inspection units and forest management directors of four regions in the Russian Far East.
Source: WWF Russia December 2003
A Small Step Forward in Indonesia
The Indonesian government has launched a Forest Restoration Initiative January 21st to restore 300.000 hectares of forest and land areas this year. WWF supports the efforts to halt and reverse the degradation of forests in Indonesia. However they should be integrated with other actions. It is crucial that the Indonesian government stops further destruction of natural forests – this would also help to avoid damaging floods. WWF in addition urges the government to recognise the importance of sustainable forest management e.g. fighting forest crime, promoting certification, facilitating community based forest management and halting forest conversion.
Source: WWF Indonesia Press Release January 21 2004
A Chance for Tesso Nilo?
In December the Indonesian government, WWF and PT Riau Andalan Pulp and Paper have agreed to co-operate to halt illegal logging in the Indonesian province Riau, in particular to protect the Tesso Nilo forest.
A task unit to tackle illegal logging in Tesso Nilo is formed as part of this co-operation.
The unit includes forest police, police, related law enforcers, WWF Indonesia and Riau Andalan Pulp and Paper. It will be responsible for patrolling the area, conducting investigations at check points and monitoring the traffic of timber.