WWF-Russia recommends companies to not source nor use wood obtained from salvage logging, and to take additional measures to verify the legality of sanitary wood felling, such as increasing company field audits, until the risk of illegal wood from salvage logging entering supply chains has been minimised drastically.

The UK government has proposed to introduce a new law to prohibit large business operating in the UK from using products that are from illegally deforested land as per local laws. Businesses that fail to carry out due diligence on their supply chains and make that information public would face fines. This proposed legislation will be on consultation for six weeks. Critics say that the proposal is flawed partly because the local laws on forest protections might be absent or have loopholes.

Unilever is to partner with U.S. tech company Orbital Insight on a pilot project to trace agricultural commodities sourced, especially palm oil. It claims to be using geolocation data and satellite imagery to identify the individual farms and plantations supplying the palm oil mills in its extended supply chain. The pilot project will be tested out at palm oils mills in Indonesia and soy mills in Brazil, working jointly with its established supply chain monitoring projects.

This report by independent environmental charity Earthsight finds illegal logging in FSC-certified supply chains in Ukraine. Focussed on the Carpathian forests, it found around 100 sites are being felled illegally each spring, when silence periods should protect several endangered animal species including brown bears, wolves and Eurasian lynx. While regulations require Environmental Impact Assessments (EIAs) before sanitary felling is conducted, no EIAs were found to have been carried out. Evidence sited by Earthsight includes the Ukrainian State Environmental Inspectorate (SEI), local environmental organisations, and research commissioned by WWF Germany.

Earthsight claims this illegal logging has not been picked up in FSC audits because of systematic issues with FSC that go beyond Ukraine: conflicts of interest as auditing bodies are paid by the logging companies they certify; inadequate oversight by Assurance Services International (ASI) which should be holding the auditing bodies to account but is argued to have failed to do so. The report documents a wide array of cases where FSC-certified firms have been accused of illegal logging, clearance of High Conservation Value (HCV) forests, and human rights abuses from all over the world – including in places such as Brazil, China, Congo, Indonesia, Peru, Romania, Russia, Ukraine. Earthsight highlights that FSC has only investigated 13 companies in its 27-year history – 0.02% of the more than 44,000 it has certified.

In response, FSC states it is fully aware of the issues in Ukraine, and insists that whenever illicit acts are identified or reported they are investigated. IKEA says it has started its own investigations, commissioned audits from a 3rd-party independent audit company, asked questions to ASI, and pledges that if any illegal wood is indicated in its product it will take immediate action.

Earthsight’s report focuses on IKEA because, as the biggest buyer of wood in the world, it has the most influence to drive positive change. However, the issues found by Earthsight apply to the publishing industry as much as they do to IKEA. Therefore, the Book Chain Project will further look into Earthsight’s findings and update you as soon as we decide what further action to take.

According to an investigation by the environmental charity Earthsight, in the area of forest - Velykyi Bychkiv within Ukraine, loggers appear to be taking advantage of loopholes that allow for “sanitary felling” during the silent periods in the spring and early summer from 2018 to 2020. Some of the wood in question is found in the supply chain of Swedish furniture maker Ikea, who denied wrongdoing and immediately began their own investigations into all parties mentioned in Earthsight’s report.

Ten years ago, the Consumer Goods Forum (CGF) made a commitment to end deforestation in member companies’ supply chains by 2020. As 2020 approaches, the companies will inevitably miss the deadline. An international coalition of NGOs called this out CGF members and relayed the following expectations in this open letter:
• Communicate a mandatory requirement ensuring suppliers comply with ‘No Deforestation, No Peat and No Exploitation (NDPE) commitments.
• Ensure human rights are respected and compliance with international standards of Free and Prior Informed Consent (FPIC).
• Establish comprehensive, proactive, and transparent monitoring systems that rapidly detect non-compliance across supply chains and require implementation of the High Carbon Stock Approach (HCSA) for agricultural development involving land-use change. Assessments should use the Integrated High Conservation Value (HCV)- HCSA Assessment Manual and be approved by the High Conservation Value Resource Network (HCVRN) Quality Review Panel before development
• Publish guidelines to address non compliances, including thresholds for suspension and grievance mechanisms
• Provide incentives and support to upstream suppliers to manage risk
• Publish public facing reports on progress

The European Commission set out a new framework of actions to protect and restore the world's forests, which addresses both the supply and demand side of forest products. It introduces measures for enhanced international cooperation with stakeholders and Member States, promotion of sustainable finance, better use of land and resources, sustainable job creation and supply chain management, and targeted research and data collection. It also launches an assessment of possible new regulatory measures to minimise the impact of EU consumption on deforestation and forest degradation.

The Global Canopy's 'Forest 500' assesses the 350 most influential companies in forest-risk commodity supply chains and the 150 financial institutions that support them. Nearly half of the 500 assessed companies have made commitments to eliminate deforestation by 2020, but none of the companies and financial institutions assessed in 2018 are on track to meet their target in time.

The Accountability Framework initiative will organize a webinar to help people learn more about the framework. An overview of the Accountability Framework's principles and guidance related to setting commitments, taking action, and demonstrating progress will be presented.

The Accountability Framework is a set of common norms and guidance for establishing, implementing, and monitoring responsible supply chain commitments, aiming to help companies and others to set commitments, take action, demonstrate progress, and support broader positive impacts. The Accountability Framework initiative is led by a diverse group of civil society representatives including Forest People Program, Greenpeace, WRI, WWF, etc.

In the recent Forest forum meeting we shared Complicit in Corruption - a recent report written by non-profit Earthsight, highlighting the widespread corruption in Ukraine's forests, and revealing how illegality permeates the timber supply chain in Ukraine from harvest to export.

Earthsight spent two years running field and undercover investigations in Ukraine. Approximately 70% of Ukraine's timber exports enter the EU and Earthsight's investigations indicate that 40% of this timber is being illegally harvest or traded. The report also claims that a significant volume of illegally harvested timber has received the FSC stamp - the former chief of one of the largest timber producing state-forest enterprises admitted to Earthsight he had found it easy to circumvent FSC checks.

The Accountability Framework initiative (AFi) is a collaborative effort to accelerate progress and improve accountability for responsible supply chain commitments in agriculture and forestry. Recently, the initiative has released the first draft of their framework for improving accountability for responsible supply chain commitments in agriculture and forestry, including as set of the core principles & definitions, a practical operational guidance. The initiative is now preparing to expand on the principles in an operational manual, and they are inviting input and feedback from as many companies, government entities, non-profits, and other stakeholders as possible.

A new study finds that illegal logging, coupled with weak state-run timber licensing systems, has led to massive timber harvesting fraud in Brazil, resulting in huge illicit harvests of Ipê trees. Ipê wood is largely shipped to the U.S. and Europe with the high value (up to $2,500 per cubic meter at export). Buyers all along the timber supply chain turn a blind eye toward fraud, with sawmills, exporters, and importers trusting the paperwork they receive, rather than questioning whether the lower prices they pay for Ipê and other timber may be due to timber laundering. This process is doing major damage to the Amazon. To reduce document fraud, the Brazilian federal government required that all states register or integrate their timber licensing systems within a national timber inventory and tracking system known as Sinaflor. While this should reduce fraudulent paperwork, better oversight of forest management plans and more onsite inspections of timber operations are needed also.

The publishing initiative run by Carnstone, The Book Chain Project, held its second Asia Summit on 24th of April in Shenzhen, China. It was an opportunity for all the stakeholders in the paper and pulp industry to get together to discuss the latest developments in responsible fibre sourcing. Among the 70 delegates there were paper mills, printers, publishers, retailers, timber experts, and NGOs. The aim of the Summit was to discuss the latest developments on responsible forest sourcing and to share best practice.

The first session included speakers from Carnstone, Chronicle Books, and Donnelly, who shared their understanding on forest sourcing and provided the customer perspective. Next, WWF introduced their work on increasing demand of certified and recycled paper products. IKEA also presented their forest traceability system. Then, IPE and China Water Risk provided their insights on industrial pollution and the water-use pressures present in China.

The next session focused on three major paper mills; UPM, APP and Chenming Paper, sharing their response to the growing expectations and regulations around paper manufacturing. This panel was also joined by TFT who shared their insights on how mills can develop and implement sustainable sourcing systems and encourage engagement further up the supply chain.

The certification schemes, FSC and CFCC, explained how they are evolving to ensure transparency and traceability in global forest supply chains. And the event closed with practical sessions from the Carnstone team, who guided mills and printers to get the most from the online Book Chain Project database. Printers and mills had an opportunity to ask questions, share feedback, and offer ideas and improvements for the future.

Further reading:
Speakers’ slides: https://bookchainproject.com/event?event=5
IPE’s Companies environmental performance monitoring database: http://www.ipe.org.cn/IndustryRecord/Regulatory.aspx?keycode=343j9f9ri329293r3rixxx
China Water Risk website: http://chinawaterrisk.org/
An introduction to FSC certification scheme: https://v.qq.com/x/page/g0639hql3zp.html

EPN have published their third report on the state of the global paper industry, presenting an analysis of the world’s pulp and paper industry, and the commercial, social and environmental risks and opportunities facing it. The report examines the performance of the industry against each of the goals of the Global Paper Vision; 1) reducing global paper consumption and promote fair access to paper, 2) maximising recycled fibre content, 3) ensuring social responsibility, 4) sourcing fibre responsibly, 5) reducing greenhouse gas emissions, 6) ensuring clean production and 7) ensuring transparency and integrity. Key themes include the need to bring paper consumption down to sustainable levels, to address climate chain impacts across the supply chain and to drive action around commitments.

A report by WRI shows ongoing deforestation in an oil palm concession in Papua, Indonesia, operated by a subsidiary of South Korea’s POSCO Daewoo. The company has responded by saying its operations in Papua are legal and fully permitted.
Concerns over deforestation by POSCO Daewoo have prompted other companies to say they will not allow its palm oil into their supply chains. These include big-name brands such as Clorox, Colgate Palmolive, IKEA, L’Oreal, Mars and Unilever. POSCO Daewoo has issued a temporary moratorium on land clearing in its Papua concession and hired a consultant to advise it on how to proceed with its operations there.

The Summit is going to take place on Tuesday 24th April 2018, which brings together organisations across the pulp, paper and publishing supply chain. The Summit will focus on learning about the latest developments in responsible forest sourcing, and an opportunity to share practical advice for paper makers on sourcing fibre responsibly. A wide range of attendees including paper mills from across Asia, participating publishers of Book Chain, NGO’s, representatives from certification schemes (FSC and CFCC) and technology providers will be invited. To register for the event, please sign up here.

Plantation firms like Asia Pulp & Paper and Toba Pulp Lestari have a history land tenure issues, but more recently they have pledged to eliminate the practice from their supply chains. Some conflicts, however, remain unaddressed and a new online platform launched by the Rainforest Action Network shows that communities are still feeling the effects of losing traditional forests to make way for plantations.

A meeting between forestry representatives from Cameroon, Congo and China took place earlier this year, aimed at strengthening legality within the forestry sector and the international trade in timber. Participants agreed on the development of a forest control and verification system for timber from Cameroon and Congo heading to China; the need for capacity building based on a good knowledge of forest resources and monitoring tools; and the need to maintain ongoing co-operation and dialogue among stakeholders in Africa and China for more effective forest governance throughout the supply chain.

FSC in Brazil is now working with BVRio, the organization that set up the Responsible Timber Exchange in late 2016. BVRio pulls together data on the pricing, supply chain and certification of timber and wood products through its Responsible Timber Exchange. Since opening in November 2016, the exchange has fielded more than 400 offers for 5 million cubic meters of timber, 30% of which was FSC-certified. The partnership with FSC is aimed at bolstering the market for certified forest products.

A report by WWF and ISEAL has stated that standards for supply chains and businesses can help accelerate progress on the Sustainable Development Goals (SDGs) while delivering direct benefits for companies and small-scale producers. These benefits can include minimising risk, efficiency gains, and improved transparency throughout the supply chain.

Norway has donated $100 million to start a fund to halt deforestation, with Unilever being the first corporate investor to the fund pledging $25 million over five years. This was announced at the World Economic Forum and the fund’s aim is to ‘safeguard more than 5 million hectares of peatlands and forests’. This fund was created under the ‘Tropical Forest Alliance 2020’ umbrella which brings together leaders of public institutions and private companies to eliminate deforestation from supply chains.

A report by World Economic Forum and Tropical Forest Alliance 2020 states that the transfer to deforestation-free supply chains could represent an investment opportunity of approximately US$ 200 billion annually. However, although companies are making commitments to deforestation-free pulp and paper in their supply chain, due to the underestimation of the risk, they may have issues meeting their time bound commitments.

Greenpeace have released a scorecard on 14 companies' progress on eliminating deforestation from their supply chains. Nestle and Ferrero scored the highest and Colgate-Palmolive, Johnson & Johnson and PepsiCo scored the lowest. Greenpeace has encouraged these companies to work with an implementation partner to recognise their commitments as well as seek third party verifications on their progress.

WWF-Brazil has released a guide which provides an overview of the updated Forest Code in Brazil. The report gives recommendations for decision makers in supply chain companies, financial institutions and governments on how to take action to implement and ensure compliance to the Forest Code. Information on the Forest Code law and recommendations to ensure effective implementation are also outlined.

Archer Daniels Midland, the third largest global supplier of agricultural commodities and one of the world’s leading soy traders, is launching their Responsible Soy Standard. Under this new programme, yearly assessments will be conducted by expert third parties to determine if growers are complying with a number of environmental, legal, social and agronomic standards.
Despite soy production acting as a leading driver of deforestation across South America, palm oil has remained the priority commodity for companies in the fight against deforestation. While 117 private companies have pledged to reduce the impact of their involvement with palm oil, only 27 have done the same with soy. It is hoped that ADM’s commitment could lead to other organisations following their lead and expanding their commitments to deforestation across commodities.
Experts have warned, however, that although commitments like these have led to deforestation in the Brazilian Amazon, the problem is simply being moved elsewhere. Much of the conversion of natural ecosystems for soy cultivation now occurs in other areas including Argentina, Bolivia and Paraguay.

The think tank Innovation Forum held a two-day conference in Washington DC entitled “How business can tackle deforestation” attended by 160 representatives from companies, NGOs and investors. Whilst multiple major consumer goods companies have declared their commitments to achieving zero deforestation in their supply chains many others have raised concerns over the term and what the policy actually means in practice.
Rainforest Alliances’ recent position paper, ‘Halting Deforestation and Achieving Sustainability’ warned that zero deforestation commitments may not be enough to protect the world’s forests, due to two reasons. Firstly, though many major companies have signed up for these commitments, many other producers and buyers will not. These companies will continue to rely on deforestation to produce their goods, unless a way is found to address underlying issues, such as growing worldwide demand for forest products. Secondly, focusing solely on deforestation risks drawing attention away from other business practices within the commodities supply chain which may deserve equally urgent attention e.g. water scarcity and labour laws. In addition, the use of ‘zero deforestation’ as a catchphrase is problematic because there remains no clear agreement over what the term means. Rainforest Alliance emphasises the need for greater education, auditing and transparency so that consumers know the impact of what they are buying and are able to trust companies’ sustainability claims. Though a commendable step in the right direction, ‘zero deforestation’ commitments need to be backed up with comprehensive action plans if they are to deliver credible results.

For decades, mahogany, ebony, rosewood and other rare tropical hardwoods have been extensively logged to produce valuable wood products, particularly guitars and other instruments. Increasingly aware of the impacts to forests and communities from over-harvesting, many instrument manufacturers have taken steps to make their supply chains more sustainable. Now, musicians are joining the call to make sure guitars and other instruments are made from legal, sustainably sourced wood. Last week the Environmental Investigation Agency and REVERB released a video featuring artists such as Jason Mraz and Michael Franti urging consumers to find out where their wood comes from.

Pulp and paper giant APRIL (Asia Pacific Resources International Ltd) has been found to be violating its own sustainability policy by continuing to source fibre from peatlands in Riau, Indonesia. The investigation, from Eyes on the Forest, shows that APRIL affiliate Riau Andalan Pulp & Paper (RAPP) is operating in breach of APRIL’s pledge not to clear potential high conservation value (HCV) areas. Dramatic photographs released by Greenpeace-Indonesia in June clearly showed natural forest clearance on deep peat areas, and ongoing preparations to turn the land in to plantations. APRIL says this activity doesn’t violate its policy commitments and clearing is only taking place in non-HCV areas. APRIL is under mounting pressure to clean up its supply chain since its largest competitor, APP, signed a comprehensive zero deforestation policy in 2013. APP’s subsequent commitment to support conservation and restoration of forests equal in size to its own operations was also applauded by environmental groups. APRIL has since said that it will match APP on this commitment – see APRIL’s letter responding to the Greenpeace photographs in June 2014.

Travis Perkins have been recognised for their efforts in eliminating destructive deforestation from their supply chain. The award for most improved company was given by CDP as part of their 2014 global forests report, ‘Deforestation-free supply chains: From commitments to action’. The report, set against the backdrop of September’s landmark New York Declaration on Forests, recognises ongoing improvement in removing deforestation from agricultural supply chains by 2020. Jez Cutler, head of group environment at Travis Perkins Group – and a guest speaker at our 2011 PREPS Seminar – said,
“We are delighted to be recognised as the most improved company in our industry in reducing reliance on forest risk commodities in the supply chain.
“This is a result of our continuous efforts to improve environmental excellence and sustainability throughout our organisation and our activities. We will continue to aim for further improvements and transparency as well as engagement with important organisations such as the CPD, who support this agenda.”

A new report, titled Disrupting the Global Commodity Business, published by the Climate and Land Use Alliance (CLUA) argues that a global transition could enable the world to produce more food, fuel and fibre without destroying more forests. Chris Elliot, the Executive Director of CLUA, writes: “we must not only shift commodity production away from native forests, but also protect these forests by increasing recognition of the rights of indigenous peoples and rural communities to manage them”. The report also highlights the role that activism has played in disrupting business-as-usual approaches to commodity production. However, it emphasizes that lasting change will come in moving from “disruption” to “transformation” of how commodities are produced. To the end, the report focuses on two key areas – supply chain management and commodity governance, illustrating the ingredients needed to fundamentally shift big business toward less damaging practices while at the same time supporting local communities.

Johnson & Johnson have revealed a comprehensive palm oil sourcing policy to eliminate deforestation and social conflict from its global palm oil supply chain.
The current use of palm oil by Johnson & Johnson stands at 0.2% of global palm oil production, the equivalent of 75,000 tons per annum. By working with The Forest Trust, they plan to set up sourcing systems that deliver fully traceable palm oil.

According to a new Global Witness report, two Japanese companies were buying illegally-logged timber from Malaysia's rainforests and labelling much of it as 'legal' under a government-sanctioned certification scheme. The report highlights the role of Sarawak Chief Minister Tan Sri Abdul Taib Mahmud in the transactions. The two companies have denied the allegations, while the state of Sarawak said there was no proof to the allegation.

Report from the Guardian looking at the increasing use of DNA tracking for imports of solid wood of at risk species.

The report questions why FSC and PEFC aren’t adopting such technology but, as the FSC spokesperson points out, ‘at this point, the cost effectiveness and the science aren't quite there, you can't do testing on paper or lots of composite wood products because the DNA is generally removed. For some tropical species, there are many closely related relatives, which also makes it difficult.’

Germany’s EU Timber Regulation (EUTR) competent authority, BLE, is investigating suspected breaches of the law.

BLE was apparently tipped off by its Belgian counterpart and Greenpeace about several consignments of wenge (often referred to as Congolese Rosewood) delivered via Antwerp to a number of German customers.

Greenpeace alleges that the timber comes from an illegal source in Democratic Republic of Congo and contravenes the EUTR.

One report showed a complicated supply chain with the timber being imported from the Congo to Belgium by a Swizz trader, and from there on to Germany.

BBC One's Panorama investigates illegal logging in the tropical forests of West Africa and the timber's journey as it makes its way to Western Europe.

Short opinion piece on the major themes that were discussed at a recent Forest Legality Alliance meeting in Washington DC between members and experts involved in the harvest, manufacturing and trade of forest products. Illegal logging rates worldwide have declined by about 20 per cent since 2008. The main drivers indicating a shift were deemed to be that legality requirements are now in the mainstream (already in the US, EU and Australia and they are being explored in China and Japan), proactive companies are taking control of their supply chains, and the introduction of public procurement policies in some of the world’s major cities, in particular in Latin America, that require the sourcing of legal timber products.

The UK government is backing the Tropical Forests Alliance (TFA) 2020. TFA 2020 is a business-led initiative launched by the US government and the Consumer Goods Forum (CGF) which is a group of over 400 retailers and manufacturers. Although there are no regulatory implications, TFA 2020 aims to provide a forum ‘in which to share best practice with major private companies’ committed to adopting ‘sustainable supply chains’ and to ‘encourage other governments and companies to take similar steps’.

The US Government and 20 of the world’s largest companies from the Consumer Goods Forum (CGF) have announced a partnership to eliminate deforestation from supply chains by 2020, starting with palm oil, soy, paper and beef. Production of these four commodities in four countries alone causes 50% of global deforestation. Leaders from the CGF companies, the US and other governments and NGOs will meet in the Autumn to identify practical actions to achieve the deforestation commitment.

Press release by WRI for their new Forest Legality Risk Information Tool. The risk tool provides details about where forest products come from and what issues a buyer might encounter. The tool allows searching by country or species to find specific information. Future additions to the tool will provide interactive supply chain profiling tools, such as decision trees.

As part of its new policy, APP said it will suspend further natural forest clearance on the 1.1 million hectares of pulpwood concessions it owns until assessments have been carried out to identify areas of high conservation value forest (HCVF). APP will also be asking its independent suppliers, who control 1.6 million hectares to accept the key principles of HCVF and comply by 31st December 2014. On APP’s Rainforest Realities website, Aida Greenbury, Managing Director of Sustainability, said “It is the aim of APP’s policy to exclude HCVF from the supply chain”.