• SCA is Europe’s largest forest owner and a major timber, pulp and paper manufacturer.
• A long-standing member of FSC, it announced its intention to temporarily pause its FSC Forest Management certification in Sweden starting June 1, 2025, due to a series of systemic challenges it sees within the current FSC framework.
  • Still supports FSC: Although SCA is leaving the Swedish FSC system on June 1st, they will remain a member, keep its Controlled Wood and Chain of Custody certifications, and maintain Forest Management certification in Estonia, Latvia, and Lithuania.
  • Hopefully temporary: The pause is intended to protect SCA’s ability to meet climate and sustainability goals, not to leave FSC entirely.
  • To prompt dialogue: SCA is calling for a meeting with FSC and stakeholders in Frankfurt to work on solutions collaboratively.

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.

The National Forest Stewardship Standard (NFSS) for Indonesia was published recently after years of development. It applies to all types and scales of forest management, including timber, non-timber forest products and ecosystem services. It will become effective on 1 December 2020. The transition window for FSC-certified forests is twelve months and will last until 30 November 2021.

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.

China, the world’s largest timber importer, issued a new draft of its first Forest Law update in 20 years that adds a prohibition on buying illegally sourced timber. It will be effective on 01 July 2020. Issues around enforcement, such as the burden of proof being on government departments, traders being out of scope, and low penalties, remain.
Please find more details about the law here. (EH&CH)
P.S. Recently, we attended an APEC region workshop hosted by APEC Expert Group on Illegal Logging and Associated Trade (EGILAT) in Malaysia on forest law governance. This table captures the major and emerging forest law regulations in the region.

This speech by Brian Schatz, Senator from Hawaii (D) was part of the World Economic Forum Annual Meeting held in Davos-Klosters, Switzerland, 21—24 January 2020. Seeing that half of tropical deforestation is illegal, illegal and unsustainable timber and goods are flooding global markets. Voluntary commitments cannot achieve zero-deforestation without regulation. Regulation is one of the key drivers of sustainable forestry. This year, Schatz will introduce legislation that will make it illegal for companies to import the products of illegal deforestation.

The UK is to spearhead a major global crackdown on illegal timber and deforestation, with plans to form a coalition of developing countries against the trade as part of its hosting of crunch UN climate talks this year. All countries are expected to come forward with tougher plans to reduce global emissions as part of COP 26, and experts have said this will only happen if the UK takes the lead in forming a coalition of small and big developing countries, including forested African nations and Indonesia, as well as major economies such as the US, China, India and the EU. Offering assistance to developing countries, in the form of finance and technical expertise, will be vital to that effort.

Growing demand for timber as construction material, fuel and charcoal is devastating Cambodia's forests. In 1975, forests covered 73 per cent of the country’s surface; last year it was down to only 46.84 per cent. Cambodian government has recognised the importance of forests and extended the natural protected area, under the Cambodian Environment Ministry, to 7.2 million hectares – the equivalent of 41 per cent of the Kingdom’s land surface.

SPOTT released their 2019 timber and pulp assessment results, which show the tropical forestry sector needs to improve public disclosure of policies and practices. Although average scores were just 20.4%, compared to 31.1% in 2018, companies assessed since 2017 have, on average, increased their score over time, showing some progress towards transparency. A full summary of this year’s assessments is available at this link.