STA – UE Trainings of SMEs operators (Place & Date)

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

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

3. The Corporate social responsibility • 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 From SM toCSR = “CSR is a concept whereby companies integrate social and environmental concerns in their business operations and in their interactionswith their stakeholders on a voluntary* basis” (EC definition do CSR)

4. CSR = operations & interactions

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

6. The illegality in the forest sector • 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

7. Sustainable forest management 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

8. 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

9. Environmental impacts Deforestaion

10. Environmental impacts Land use conversion

11. Environmental impacts Forest degradation Deseases, treefall, fires…

12. 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

13. Economic impacts • 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.. Source: 2011, FAO – FRA 2010

14. 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)

15. Quiz • How many ha of forest have been lost in the last decade worldwide? • How many people depend on the forests? • Do you think timber present in your domestic market may come from deforestation or illegal logging? • Do you think unsustainable forest management is undertaken within your country/region/province?... etc.

16. Taking actions A growing awareness about environmental and social problems

17. Consumersincreasinglyinterested in provenanceofwhattheybuy

18. What is a sustainable timber? “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) • 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

19. EU responsibilities in illegality • 2003, EU15: • import82,24 Mmcdiillegaltimber(~ 20%) • (EC e WWF UK, 2004) • ITALIA (or othercountry): • 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

20. How EU try to face illegality • 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

21. Otherinitiativesforlegality • 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

22. Ensuring sustainability FOREST EUROPE criteria for sustainable forest management (MCPFE)

23. 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).

24. 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

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

26. 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

27. Virgin FSC FSC 100%:100% FSC certified inputs FSC Controlled 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) Reclaimed FSC Recycled:reclaimed post-consumer (at least 85%) and pre-consumerinputs Labels significance (FSC) For more information refers to FSC-STD-40-004 V2-1 and FSC-STD-50-001 V2-0

28. Virgin PEFC Non controversial source Reclaimed Labels significance (PEFC) PEFC Certified:virgin, recycled and “non controversial” material (min 70% certifiedinputs and max 85% recycledinputs) PEFC Certified & Recycled:reclaimed post-consumer or pre-consumerinputs and certified material (min 70% certifiedinputs and min 70% recycledinputs) For more information go to www.pefc.org/standards/logo-use

29. Group activity [interactive] • Q&A and the CoC of a table What are the causes of deforestation processes? What are the consequences? Is Europe responsible for deforestation? How do you recognize a certified product? Do you know certified timber/wood products suppliers in your country? • 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?

30. Fair trade in the timber sector • 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

31. 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 FairtradeLabelling International (FLO) and the World Fair Trade Organization (WFTO)]

32. Fair Trade Core Fair Trade Principles

33. Fair Trade • Sectors where FT successfully introduced • Uncertainty to introduce FT criteria in procurement at EU level • Different national initiatives in EU countries (Bel, Ger, Dan, Ned, etc.)

34. 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

35. 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.

36. Combining SFM and fair trade Dual certification case studies, actions and projects