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.

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.

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 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 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

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.

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 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.

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.

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.”

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.