Guidelines on Corporate Responsibility Reporting for the ...
Discussion Document
Version 1: 25 March 2004
Guidelines on Corporate Responsibility Reporting
for the Forest Industry, with specific focus on
the Pulp and Paper Sector
Introduction
1 Background
Corporate responsibility has become an important element in the corporate sector. It is widely agreed that companies play a key role in building the path toward sustainability. Companies that incorporate sustainability at the core of their business and take responsibility for their impacts are needed for a healthy environment. In order to be identified as a company committed to sustainability and differentiated from those that do not, companies should disclose their economic as well as social and environmental performance through periodical Corporate Responsibility Reporting[1] (CRR).
CCR is essential not only to demonstrate a companies' commitment to Sustainability but also a pre-requisite for a sound evaluation of these companies by ratings agencies, investors and financial institutions who produce and use indices such as the Dow Jones Sustainability Index.
Some pulp and paper companies provide environmental information, many even an environmental report detailing a range of issues from forest management standards to air and water emissions, waste management and transport issues. Some companies have gone further producing more complex reports where economic, social and environmental issues (3 bottom lines of Sustainable Development) are put together to report on sustainability.
Unfortunately, only a short number of companies report their sustainable performance and the scope of their reporting differs significantly. The lack of reporting standards results in a huge variation in the quality of reports: information seen as central for WWF and other stakeholders is missing, and comparing environmental and social performance is often difficult. This situation makes it difficult to identify those companies working towards sustainability[2].
WWF believes that sector specific standards would: guide and encourage companies to operate in a manner that supports sustainability; enable the sector to communicate its environmental and social credentials to a broad range of stakeholders; increase the transparency of corporate environmental and social programs; and ultimately facilitate market recognition for companies that take a leadership role, by improving their visibility with ratings agencies, investors and financial institutions.
WWF has prepared this discussion document on suitable CRR guidelines for the Pulp and Paper sector and welcomes the opportunity to work with the industry to define guidelines on Corporate Responsibility Reporting, including defining suitable criteria as well as best practice standards.
2 Content of the document
WWF proposes in this document those aspects that pulp and paper companies moving in a sustainable direction should responsibly address, and therefore report on. Also, it proposes indicators to measure corporate performance for each aspect. These aspects are considered essential but not necessarily sufficient to address sustainability. This is a living document and the listed aspects are the bases for discussions with industry to prepare guidelines for CRR which can be adopted by the pulp and paper sector. WWF welcomes comments on the guidelines.
3 Scope of the document
Defining the scope and boundaries of CRR is a very complex and challenging. WWF does not intend to unravel it in this document. It welcomes further development on the boundaries of CRR.
WWF encourages companies to progress from environmental reporting to sustainability or corporate social responsibility reporting. Even though WWF focuses on conservation and environmental issues, it believes that sustainability requires a more holistic approach where key economic, social and governance issues are also addressed. This document emphasises environmental aspects as well as draws attention to basic social and governance aspects. Although economics aspects are also important for WWF, we consider that these are adequately addressed through company financial accounts.
WWF encourages companies to produce sustainability reports “in accordance” to the GRI guidelines and the suitable sector specific supplement. However, some aspects specific to the forest products sector are not totally covered on the GRI framework. WWF therefore encourages companies to report on the aspects listed in this document when they are not covered under GRI framework. WWF would welcome the development of new tools, as a GRI sector supplement, which address forest products sector specific aspects such as those included in this document.
The information reported should allow an understanding of current and future corporate trends. GRI notes: “at a minimum, reporting organisations should present data for the current reporting period (e.g., one year) and at least two previous periods, as well as future targets where they have been established. This information provides essential context for understanding the significance of a given piece of information. Comparison with industry average, where available, can also provide useful context.“ (GRI 2002:34).
4 Companies to which this document applies
The content of this document should be applicable for processing companies within the forest products sector, however there is a focus on pulp & paper mills, which are direct users of raw materials from forests. In many countries they form a significant part of the economy and therefore have a huge potential impact on the environment, not only in the forest, but throughout the entire product supply chain. Many of the aspects are applicable also to the panel and solid wood product sectors.
CRR for the Forest Products Sector
Note: During the development of this section, the following documents have been used:
WWF GFTN: Responsible Purchasing Guide
WWF International Guidelines for Investments in operations that Impact Forests
WWF-Business & Industry Unit guidance on sustainability reporting for companies
Global Reporting Initiative (GRI) framework
Targets and Milestones from WWF’s programmes on Toxics, Freshwater, and Climate Change.
1. Corporate profile
The company provides brief information such as: name, activity, ownership, governance structure, locations, contact details and scale (employees, turnover, etc.). WWF encourages companies to report on corporate profile in accordance to GRI Guidelines, Part C, Section 2: Profile and Section 3: Governance Structure and Management Systems.
2. Corporate commitment to Sustainability
Statement from CEO (or equivalent senior manager) describing the organisation’s vision, commitment and strategy regarding its contribution to sustainable development as well as introducing the content of the report[3].
3. Corporate sustainable policy and management
After the general corporate commitment to sustainable development, the Company adopts specific policies and management systems in order to address sustainability for each of the following key aspects at the governance, environmental and social levels.
GOVERNANCE:
1 Compliance with national laws and international conventions
The Company has a policy and a management system in place to comply with all local, state, national laws and international conventions. This includes inter alia the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), World Heritage Convention (WHC), and the Convention on Biological Diversity (CBD) to which the country concerned is a party (as well as moratoria on logging, declarations of protected areas, forestry laws, environmental protection legislation, as well as labour and social laws. The Company extends this aspect to suppliers/contractors by only working with those achieving its same level of legal compliance.
Indicator:
- Number of prosecutions
- GRI Indicator EN16: Incidents of and fines for non-compliance with all applicable international declarations/conventions/treaties, and national, sub-national, regional, and local regulations associated with environmental [and social] issues. (Explain in terms of country of operation)
- Number of suppliers dismissed due to inability to meet legal compliance or persistent failures on legal compliance.
Criteria: Best practices
2 Credibility
The Company has a policy and a management system in place to be credible on sustainability. The elements to be address are:
▪ Accountability: The Company implements, monitors and reports on corporate commitment to sustainability in such a way that all the aspects listed on this document are tackled. The responsibility and accountability for it is delegated by the Board of Directors of the Company to one of its members.
▪ Transparency: The Company adopts and implements procedures for regular consultation of key stakeholders and encourages their participation in project decision-making where such decisions affect them, and are based on the principle of “prior informed consent”.
▪ Independent verification: The Company carries out independent third party annual audits to assess the internal compliance with the corporate commitment to sustainability by verifying the information reported. The key elements listed on this document should be addressed by the annual audit. The summary results of these audits should be made public.
Indicator:
- Is there an Annual Audit to verify the information reported on sustainability?
Criteria: yes or not.
3 continual improvement
The Company has a policy and a management system in place to continually improve its performance on sustainability. The elements to be address are:
• Review of corporate sustainability performance: The Company assesses its performance and achievements on a regular bases in order to review its procedures regarding sustainability.
• Environmental Management System[4] (EMS): The Company adopts an environmental management system such as the International Organisation for Standardisation’s Environmental Management System ISO 14001, with procedures to minimise and monitor the safe transport, storage, use and disposal of chemicals, biological control agents, particulate, smoke, liquid, gas and solid organic and inorganic wastes in an environmentally and socially responsible way. The EMS includes procedures to minimise noise pollution, environmental emergency protocols, and monitors conversion efficiencies, minimisation of resource inputs, and use of recycled products.
• Environmental Impact Assessment[5] (EIA): At the project design and scoping stage, the Company is encouraged to establish an environmental Assessment Team that would consult widely with key stakeholders to identify forest issues likely to arise during the project. The EIA must uses an integrated approach in which social, health, environment, biodiversity issues are fully addressed in light of the potential impact of the project on forests and/or the rights and welfare of local communities.
• Social Impact Assessment[6] (SIA): The Company conducts a Social Impact Assessment to identify the full range of social impacts and responses to the project by people and institutions, including those that are vulnerable and poor. The Company undertakes the Social Impact Assessment in parallel with the EIA. In many cases, proper protection of the rights of indigenous people will require the implementation of special project components that may lie outside the primary project's objectives. These components can include activities related to health and nutrition, productive infrastructure, linguistic and cultural preservation, entitlement to natural resources, and education.
• Capacity Building: The Company undertakes training programmes of all personnel involved in carrying out the corporate commitment to sustainability to ensure an adequate level of understanding and ability to develop it adequately.
Indicators:
- Environmental Management System in place such as ISO 14001 or EMAS segmented by facilities (e.g., pulp and paper mills)?
Criteria:
- Indicator 100% satisfied where EMS is on 100% of company’s facilities.
- Indicator 0% satisfied where EMS is on 0% of company’s facilities.
4 Communication of corporate commitment and performance regarding sustainability
The Company has a policy and a management system in place to communicate its corporate commitment and performance regarding sustainability. The elements to be address are:
• Disclosure: The Company makes publicly available its commitment and performance on sustainability.
• Scope: At least, the aspects listed on this document are address during the reporting process.
• Target: The Company communicates its corporate commitment and performance to: clients and suppliers, other companies, as well as stakeholders interested on company’s activities.
Indicator:
- Publicly available CSR or Sustainability Report
Criteria:
- Indicator 100% satisfied where company reports 100% of the aspects listed in this document.
- Indicator 0% satisfied where company reports 0% of the aspects listed in this document.
ENVIRONMENT:
5 Materials
WWF GOAL: optimal balance of Raw Materials and Recycled.
The Company has a policy and a management system in place to make efficient use of materials and give preference to environmentally friendly materials. The elements to be addressed are:
▪ Environmentally friendly material: The Company looks for materials that come from renewable sources, have least negative environmental impacts and have a higher potential to be reused and/or recycled.
▪ Efficiency: company’s operations should maximise the utility of materials used.
Indicator: Raw material per unit of production and the absolute levels, segmented by type (Roundwood/chips, Pulp, fillers and chemicals)
Criteria: Best practices
6 Forest management
WWF GOAL: Stepwise Approach to Certification
The Company has a policy and a management system in place to minimise negative environmental impacts of its forest-related operations. The elements to be addressed are:
▪ Legality[7]: The Company is not involved in illegal logging operations. Where the Company owns the land, it must provide full legal and verifiable title to the land and has all relevant and current permits and approvals. Where the Company does not own the land on which forest operations are to take place, forest products must be extracted with full authorisation of those holding rights to the land or forest resources, and with the required authorisation, permits and approvals from all relevant governments agencies.
▪ Protection of High Conservation Value Forests (HCVFs): The Company does not carry out forestry operations that damages or degrades or negatively impacts HCVFs[8].
▪ Protected Areas[9]: The Company does not carry out forestry operations in proposed or legally designated protected areas or designated protected area buffer zones.
▪ CITES[10] Listed Species: The Company should avoid all activities and trade in CITES Appendix I listed species. For CITES Appendix II and III listed species a degree of caution must be exercised. If harvesting and trade in CITES II and III is undertaken, the Company ensures all legal obligations and permits on the part of all exporters, importers and traders in these species is fully respected. It is strongly suggested that with regard to CITES species it is best to explore alternative species except where credibly independent certified (and suitably documented) sources exist.
▪ Forest Restoration[11]: If the project involves forest restoration or plantation development, the Company ensures that, as appropriate, the project design incorporates means of addressing the following issues: the potential of forest restoration to improve biodiversity and ecosystem functions; the potential to establish plantations on non-forest lands that do not contain HCVFs; the need to avoid conversion or degradation of natural habitats; and the capacities of the government, nongovernmental organisations, and other private entities to cooperate in the forest restoration and plantation development.
• Forest conversion[12]: The Company is not involved in conversion of HCVFs, projects on land converted after 1994, unless proven to be non-HCVFs, and respect for local land claim and dispute resolution procedures and adherence to the principles of “informed consent”.
• Method of clearing: The Company adopts practices of forest clearing that avoid negative impacts on the environment beyond the immediate area planned to be cleared, including forest clearing on steep slopes, river banks, and water catchments. The Company avoids all uncontrolled and illegal use of forest fires for clearing.
▪ Plantations[13]: The Company does not invest in plantations that involve any conversion or degradation of HCVFs, including adjacent or downstream critical natural habitats. Where the Company invests in plantations, it gives preference to siting such projects on unforested sites or lands already converted (excluding any lands that have been converted in anticipation of the project). The Company must provide a development and management plan for the plantation. The Company must adopt good management practices that minimise environmental impacts such as air and water pollution, forest fires, soil erosion, pest invasion and biodiversity loss. The Company must implement water conservation measures in plantation management practices. In view of the potential for plantation projects to introduce exotic species and threaten biodiversity, such projects must be designed to prevent and mitigate these potential threats to natural habitats. Exotic species, which shall be used only when their performance is greater than that of native species, shall be carefully monitored to detect unusual mortality, disease, or insect outbreaks and adverse ecological impacts.
▪ Genetically Modified Organisms[14] (GMOs): The Company agrees not to engage in the cultivation or planting of genetically modified tree species or procure timber from sources engaging in the planting of such species. The Company further agrees:
to support moratorium on use or release of GMOs (e.g., soy) into the general environment until ecological interactions are fully researched and safeguards are put in place;
to carry out transparent, comprehensive environmental impact assessment of planned releases into the environment, to include consideration of the impacts of changing crop management practices, as well as the invasion of natural and semi-natural habitats or competitive displacement of native species by transgenic plants and animals;
to avoid additional impacts through genetic modifications which:
• facilitate or stimulate greater use of chemicals;
• harm pest controlling and other locally beneficial insects associated with crops:
• lack safeguards against gene flow into native organisms; and
• use artificially constructed genes (whose effects are harder to predict and control)
control of gene technology, including government regulation and the establishment of independent statutory authorities, scientific and community assessment, and effective monitoring of the use and spread of GMOs, including effects on different habitats and species, and on human health and livelihoods; and
recognition of the role of traditional knowledge in crop breeding and appropriate benefit sharing.
▪ Credible Independent Forest Certification[15]: The Company is certified by a credible independent forest certification scheme for forests under its management. Where certification is not in place, the Company is committed to making stepwise progress towards certification by developing a time-bound certification action plan with independent third-party verification by an internationally recognised credible body.
Indicator:
- Forest profile: hectares, location and ownership of Forests.
- Status of forests where the company develops its operations.
Criteria:
Company’s performance on Forest Management is reported by giving the percentage of forest under the following 5 categories:
A. Unknown
This category is applicable to those forests where the management is unknown.
B. Legal
This category applies to those forests where, at least, the forest manager operates with the required authorisation, permits and approvals from all relevant governments agencies. The forest manager has:
• A licence showing that the forest manager has the right to harvest wood from the area in question.
• A permit from the relevant forestry authorities giving permission to harvest from a specific area within the forest in that harvesting period.
• Log lists showing tree number and dimensions and identifying the cutting area within the forest where the log was produced.
• A Timber Harvesting Plan or equivalent document approved by the forest management authorities, and a Forest Management Plan approved by the relevant authorities, that proves the forest manager’s right to harvest a particular area.
C. Non-controversial
Forests in this category must address at least the following aspects:
• Harvesting is legal and responsible to CITES listed species.
• There are not uncertified operations in HCVFs.
• There are not operations in Protected areas.
• There are not conversion of HCVFs, projects on land converted after 1994, unless proven to be non-HCVFs. There is respect for local land claim and dispute resolution procedures and adherence to the principles of “informed consent”.
D. Progressing towards credible independent forest certification
This category requires forest to be in a time-bound process of progressing towards an acceptable level of independent certification, and for the end products to have third party verified legal origin certification. Three major types of forests can be regarded as within this category:
1. Forest manager is member of a WWF Producer FTN[16]
2. Forest manager is member of an acceptable stepwise certification programme[17].
3. Forest manager is formally and contractually committed to credible, independent forest certification[18].
E. Credibly independent certified forest
This category applies to forests certified by a credible independent forest certification scheme.
7 Responsible forest products purchasing policy[19]
WWF GOAL: Stepwise Approach to Certification
The Company has a policy and a management system in place to promote good forest management by trading forest products coming from well managed forest[20]. The elements to be addressed are those listed in the previous point “Forest Management”: Legality, HCVFs, Protected Areas, CITES Listed Species, Forest Restoration, Forest conversion, Method of clearing, Plantations, GMOs as well as Chain of Custody. See the basic outline of responsible purchasing activities in the Glossary.
▪ Chain of Custody (CoC): The Company puts in place transparent processes for the systematic tracking of all wood (referred to as CoC) to provide evidence that the ultimate origin of commodities they are trading and / or processing is known, is continuously being monitored and can be independently verified. Where a CoC system is not in place, the Company is committed to making stepwise progress towards CoC by developing a time-bound action plan.
▪ Fair price: The Company procures forest products to a fair price, which permits to forests managers reinvesting in good forest management.
Indicator:
- Countries from where Forest products (absolute levels) come from
- Forest products (absolute levels) segmented by forest source status
Criteria: See previous element “3.6. Forest Management” for definition of forest status.
A. Unknown / Unwanted
Forest source status is unknown or illegal
B. Legal harvest
Forest products come from legally managed forests
C. Non-controversial
Forest source status is Non- Controversial
D. Progressing towards credible independent forest certification
Forest products come from forest progressing toward credible independent forest certification
E. Credible independent forest certification
Forest products come from forest certified by a credible independent forest certification
8 Toxic
WWF GOAL:
- Elimination of EDC and POPs
- Facilitating the REACH EU Legislation
- WWF Detox Campaign
The Company has a policy and a management system in place to minimise negative environmental impacts due to using and manipulating toxics. The Company extends this policy to suppliers/contractors by only working with those achieving its same level of commitment. The elements to be addressed are:
▪ Elimination: the Company is in a time-bound process to stop using and producing -direct or indirectly- hazardous industrial chemicals, especially[21] Persistent Organic Pollutants (POPs) and Endocrine Disrupting Chemicals (EDCs).
▪ Management: the company has a management system to manipulate toxics in a way that there is not harm to human health, other human activities and the ecosystem during its acquisition, storage, transportation and use.
Indicator:
- POPs and EDCs per unit of production and the annual absolute levels, segmented by type of toxic.
Criteria: Best practices
9 Water use
WWF GOAL: Volume and Quality (Integrated River Basin Management and Controversial sources of Water)
The Company has a policy and a management system in place to minimise negative environmental impacts due to water use[22]. The elements to be address are:
• Legality: The Company complies with water regulations.
• Water source: Company water consumption does not lead to negative environmental impacts on water source or its dependant ecosystem. The impact of water discharges is covered next under the aspect “effluents”.
• Efficiency: The Company makes efficient use of water by for example: implementing Best Available Technology (BAT), redefining water use processes, reusing and recycling water.
Indicator:
- Withdrawal: Total volume of water withdrawn from the water source per unit of production and the absolute volume.
- Use: Total volume of water withdrawn- water discharged per unit of production and the absolute volume.
Criteria: Best practices
10 Energy
WWF GOAL: Power Switch Agenda:
- Reduction of Energy Use
- Switch to Biomass/Renewables
The Company has a policy and a management system in place to minimise corporate (direct and indirect) impact on climate change. The elements to be address are:
• Operations: The Company must adopt measure to reduce its impact on climate change by making efficient use of energy and switching to Bio-mass and renewable energy.
• Transport: The Company has a transport management system in place to minimise company’s impact on climate change by efficiently using company and subcontractors transport
Indicator:
- Total direct energy and indirect energy use segmented by primary sources[23] and uses (e.g., cooling and transport) per unit of production and the absolute levels.
Use GRI Energy Protocol and Energy Balance Sheet (December 2002) to develop these 2 indicators.
Criteria: The following list shows a stepwise approach to sustainable energy use where “Own generation from Biomass” is the most sustainable and “Coal/Nuclear” is the less sustainable
- Coal/Nuclear
- Oil/gas
- Natural gas
- Renewable
- Own generation from Biomass
11 Emissions, effluents, and waste
WWF GOAL: Reduction / elimination
The Company has a policy and a management system in place to minimise negative environmental impacts due to emissions, effluents and waste. The elements to be address are:
• Legality: The Company complies with all local and national regulations as well as related international conventions (e.g. The Stockholm Convention on Persistent Organic Pollutants, Basel Convention, The MARPOL Convention and the London Dumping Convention)
• Environmentally Sound Management, ESM: The company carries out environmentally sound management (ESM) of hazardous wastes in a way that there is not harm to human health, other human activities and the ecosystem during the collection, storage, transport, treatment, re-use, recycling and final disposal.
• Elimination: the Company is in a time-bound process to stop emission, effluent or improperly managed wastes of hazardous industrial chemicals, especially POPs and/or EDCs.
• Reduction: The Company incorporates procedures to reduce the level of emissions, effluents, and wastes[24]
EMISSIONS
Indicators:
- GRI EN8: Greenhouse gas emissions [per unit of production].
(CO2, CH4, N2O, HFCs, PFCs, SF6). Report separate subtotals for each gas in tonnes and in tonnes of CO2 equivalent for the following:
• Direct emissions from sources owned or controlled by the reporting entity
• Indirect emissions from imported electricity heat or steam.
See WRI-WBCSD Greenhouse Gas Protocol.
- NOX, SOX, POPs and PM10 per unit of production.
- Volatile Organic Compounds (VOC) per unit of production.
- Total Reduced Sulphur (TRS) per unit of production.
Criteria: Best practices
EFFLUENTS[25] (per unit of production)
Indicator:
- Total volume (m3/unit of production) of water discharged.
- Discharge Temperature (Centigrade)
- Total amount of effluents by type. At least the following effluents must be reported:
- Biochemical oxygen demand, BOD (Kg/unit of production): It shows the degree to which degradable biological material (eg: fibre, starch) in the effluent will remove dissolved oxygen from the receiving waters, and thus compete for it with fish and plant life.
- Total suspended solids, TSS (Kg/unit of production): Organic and inorganic material. E.g.: pulp fibres, fillers, bark.
- Chemical oxygen demand, COD (Kg/unit of production): It normally includes the BOD, except for any components not oxidizable by dichromate (eg: ammonia).
- Phosphorous, P; and nitrogen, N (kg/unit of production): Phosphorous is introduced with the wood (so is a non-process element), and both may be added as nutrients in secondary treatment. Both contribute to eutrophication, unless dissipated as nutrients.
- POPs (such as Dioxins and Polychlorinated biphenyls, PCB) (kg/unit of production):
- Absorbable Organic Halide (AOX), is a surrogate measure of the amount of chlorinated organic compounds in pulp and paper effluents discharge.
- Chromated copper arsenate, CCA:
Criteria: Best practices
WASTE
Indicator:
- GRI EN11 Total amount of waste by type and destination. “Destination” refers to the method by which waste is treated, including composting, reuse, recycling, recovery, incineration or landfilling.
Criteria: Best practices
12 Forest-based Carbon Sequestration and Storage (CS & S)
As part of an integrated approach to carbon management, forest management of existing forest resources should not be counted towards carbon storage and no claim should be made to this effect.
Where the Company invests in forest- based carbon sequestration and storage (CS&S) projects, the Company pursues the permanent storage of sequestered carbon as the principle objective of the project, with the provision of social and environmental benefits from the appropriate use of other products and services being encouraged as an important second order objective.
The Company has a policy and a management system in place to carry out the previous two ideas as well as to responsibly manage the Forest-Based CS & S projects by addressing WWF Principles and Criteria for Engaging in Forest-Based, Carbon Sequestration and Storage Projects[26]:
Legal and Social Considerations
- Principle 1: Compliance with laws and CS&C Principles.
- Principle 2: Tenure and use rights and responsibilities
- Principle 3: Indigenous people rights
- Principle 4: Community relations and worker’s rights
- Principle 5: Project objectives and accountability
- Principle 6: Project additionally
- Principle 7: Project-derived leakage
- Principle 8: Environmental and landscape impact
The implementation of CS&S projects
- Principle 9: Management plans
- Principle 10: Monitoring and assessment
- Principle 11: Maintenance and restoration of natural forests
NOTE: The existence of this aspect on this document does not imply that WWF currently endorses carbon offset crediting or that it is committed to doing so in the future. Furthermore, in the event of a satisfactory international response to the IPCC Special Report and the establishment of a technically watertight, and internationally equitable, regulatory mechanism for offset crediting, WWF gives no guarantee that the current Principles and Criteria would be the project-level performance standard that it might eventually advocate.
Indicator: Responsible management of forest-based CS & S projects
Criteria:
• 100% responsible management where 100% of WWF Principles and Criteria for CS&S are addressed or the forest management is certified by a credible independent forest certification scheme
• 0% responsible management where 0% of WWF Principles and Criteria for CS&S are addressed
SOCIAL:
13 stakeholders
The Company has a policy and a management system in place to open participation processes with key stakeholders during the definition, development and review of corporate operations. The Company adopts and implements procedures for regular consultation of local stakeholders and encourages their participation in project decision-making where such decisions affect their livelihoods, and are based on the principle of ‘prior informed consent’. The elements to be address are:
• Respect for local communities and indigenous peoples’ rights: The Company fully complies with ILO Convention 169 Indigenous and Tribal Peoples. In addition, the Company shall ensure that the project:
(a) does not infringe the legal and customary rights of local peoples[27] to own, use and manage their lands and resources. Where customary rights are contested develop a time bound action plan to document and assessment claims based on Social Impact Assessment methodologies.(See Annex X.)
a) puts in place measures to strengthen and diversify the local economy,
b) provides local peoples with opportunities for employment, and
(d) does not engage in activities that damage the health or well-being of local inhabitants.
• Human Rights: The Company respects and upholds the United Nations Universal Declaration of Human Rights.
• Involuntary resettlement: The Company explores all options to avoid involuntary resettlement of local communities and indigenous peoples. In certain cases where resettlement is to occur, the Client widely consults with the local community and indigenous peoples to reach a consensus agreement on appropriate timing, compensation and other relevant issues.
• Stakeholders’ involvement: The Company has a process to involve Stakeholders during the definition, development and review of its operations.
• Stakeholders support: The Company collaborates with stakeholders by supporting, promoting and sponsoring the development of environmental, cultural, and social projects.
Indicator:
- Stakeholders profile: Identification of key stakeholders
- Status of Stakeholders involvement
Criteria:
- Unknown:
The company unknowns its status or does not reach a basic status of stakeholder involvement.
- Basic:
The company has respect for local communities and indigenous peoples’ rights and uphold the UN Universal Declaration of Human Rights.
- Stakeholder identification:
Furthermore, the company has clearly identified its key stakeholders
- Stakeholder participation:
Furthermore, the Company has in place a participation process to actively involve Stakeholders in definition, development and review of corporate operations.
- Advance:
Furthermore, the Company collaborates with stakeholders by supporting, promoting and sponsoring the development of environmental, cultural and social projects.
14 Labour Codes and Standards
The Company has a policy and a management system in place to ensure that good working labour practices are implemented, monitored and regularly evaluated. The Company provides a written Human Resources Policy clearly stating all labour practices and agreements, and makes available to workers in local language(s). The elements to be address are:
▪ Child Labour: The Company does not employ or otherwise engage workers under the age of 15; minimum lowered to 14 for countries operating under the ILO Convention 138 developing-country exception; remediation of any child found to be working.
▪ Forced Labour: The Company does not use forced labour, including prison or debt bondage labour; or use lodging of deposits or identity papers by employers or outside recruiters
▪ Health and Safety: The Company provides a safe and healthy work environment; take steps to prevent injuries; provides regular health and safety worker training; system to detect threats to health and safety; and provides access to toilets and clean potable water. The Company complies fully with ILO Code of Practice on Safety and Health in Forest Work.
▪ Freedom of Association and Right to Collective Bargaining: The Company respects the right to form and join trade unions and bargain collectively; and where law prohibits these freedoms, facilitate parallel means of association and bargaining.
▪ Discrimination: The Company does not discriminate on race, caste, origin, religion, disability, gender, sexual orientation, union or political affiliation, or age. The Company develops policies and procedures to prevent sexual harassment.
▪ Discipline: The Company does not allow corporal punishment, mental or physical coercion or verbal abuse of workers
▪ Job security: Workers shall be offered long term job security, and unless otherwise agreed they should be employed on a permanent basis in accordance with ILO Convention 95 The Protection of Wages Convention.
▪ Contract Workers: Wherever possible, conditions of contract workers and regular employees shall be standardised so that they have equal terms and conditions. The Company does not allow contractors to be used to avoid or deny legal rights or obligations.
▪ Maternity Leave: The Company complies fully with ILO The Maternity Protection Convention 103 which provides workers with twelve weeks maternity leave from work during which tie women are entitled to financial benefits and medical care and cannot be dismissed.
▪ Working Hours: The Company complies with the applicable law but, in any event, no more than 48 hours per week with at least one day off for every seven day period; voluntary overtime paid at a premium rate and not to exceed 12 hours per week on a regular basis; overtime may be mandatory if part of a collective bargaining agreement.
▪ Compensation: wages paid for a standard work week must meet the legal and industry standards and be sufficient to meet the basic need of workers and their families; and there are no disciplinary deductions, and in accordance with ILO Convention 131 The Minimum Wage Fixing Convention.
Indicators:
- Number of employees part of a syndicate
- Annual number of working accidents
Criteria: Best practices
15 Undemocratic and un-elected governments
The Company has a policy and a management system in place to avoid investing in countries, which are extremely controversial or morally out of step with generally accepted international conventions (e.g., Burma/Myanmar). Guidance can be sought by consulting Transparency International’s Annual Global Corruption report[28].
Indicator: ???
Criteria: ??
Annex
ENVIRONMENT:
Forest management
▪ WWF Definition of Legal Logging
Legal Source
• Tenure:
- the logging contractor/operator is authorised to be there by the proprietor (lease, concession agreements etc are in place)
- property and/or customary rights are respected
- there is no dispute on property/customary rights
• All Government required approvals are in place:
- harvesting permits/cutting licences
- annual allowable cut permits
• Operations meet the requirements and stipulations of the permits
• All national and local legislative and administrative processes for tendering, concession and lease processing have been followed.
• There are no credible allegations of corruption in the tendering/concession/lease process
Revenue Payments
• Stumpage fees and other required revenue payments are paid
• Timber extracted corresponds to volumes authorised in the licence/contract (eg no duplicate felling licences).
• There is accurate measurement, reporting and declaration of values and volumes extracted/transported
Forest Operations
• There is no commercial logging in Protected Areas (IUCN 1-IV)
• There is no logging:
- in prohibited zones (eg steep slopes, riverbanks and water catchments)
- of protected species
- outside concession boundaries
- of undersized trees
• There is no girdling or ring-barking, to kill trees so that they can be legally logged
Related Forest Crime
• Area logged is secure from other forms of forest damage such as poaching or illegal mining
• There is no credible suspicion of transfer pricing irregularities such as:
- inaccurate declaration of purchase prices for inputs such as equipment or services from related companies
- manipulation of debt cash flows to transfer money to subsidiary or parent company, for example by inflating debt repayment to avoid taxes on profits
Log Transportation
• All timber transported has official documentation
• Illegally harvested timber has official authorisation for its transportation
This definition has been prepared based on internationally accepted FAO definitions and the input of WWF staff.
▪ Protection of High Conservation Value Forests (HCVFs):
HCVFs are defined by the Forest Stewardship Council as forests of outstanding and critical importance due to their high environmental, socio-economic, biodiversity or landscape values. WWF is developing and extending the HCVF concept in its wider protect-manage-restore programme. HCVFs comprise the crucial forest areas and values that need to be maintained or enhanced in a landscape. HCVFs are found across broad forest biomes (tropical to boreal), within a wide range of forest conditions (largely intact to largely fragmented), and in ecoregions with complete or under-represented protected area networks. HCVFs could be old-growth forests in Siberia, habitats of threatened orang utans in Southeast Asia or the sacred burial grounds of a North American first nations people.
WWF believes the first priority is to ensure that HCVFs are adequately represented in protected area systems. In practice, many HCVFs will continue to be managed outside protected areas and here approaches will vary – e.g. enhanced management or long-term "no-cut" reserves – but should always aim to maintain HCVF values. In regions where the forest is largely degraded, HCVF management should be consistent with a forest landscape restoration strategy (see separate position paper) that addresses ecological, social and economic objectives. Two principles are paramount: (1) HCVFs are managed to maintain the attributes that are of high conservation value, and (2) management employs the precautionary principle, which requires that where the effects of extraction and other management are unknown, values are insured through a cautious approach.
Source: WWP Position Paper 2002
▪ Protected Areas:
IUCN defines a protected area as an area of land and/or sea especially dedicated to the protection and maintenance of biological diversity, and of natural and associated cultural resources, and managed through legal or other effective means. Under the IUCN definitions, the objective of protection must be the maintenance of biodiversity and natural resources, and there must be an explicit legal or social basis for protection activities. Multiple-use sites that combine attraction, recreation, and nature conservation can qualify, but 75% or more of the area included must be managed primarily for conservation purposes. Non-consumptive and low-intensity uses are compatible with some categories within the IUCN scheme (e.g. Category V and VI designations), but sites such as forest plantations managed primarily for timber production would not qualify.
IUCN has defined a series of protected area management categories based on management objective. The six categories are:
CATEGORY Ia: Strict Nature Reserve: protected area managed mainly for science. Area of land and/or sea possessing some outstanding or representative ecosystems, geological or physiographic features and/or species, available primarily for scientific research and/or environmental monitoring.
CATEGORY Ib: Wilderness Area: protected area managed mainly for wilderness protection. Large area of unmodified or slightly modified land, and/or sea, retaining its natural character and influence, without permanent or significant habitation, which is protected and managed so as to preserve its natural condition.
Category I sites are typically remote and inaccessible, and are characterized by being ‘undisturbed’ by human activity. They are often seen as benchmark, or reference sites, and access is generally restricted or prohibited altogether. They range in size from vast areas to very small units (typically a ‘core’ of a larger protected area). Selection should be on the basis of quality and significance.
CATEGORY II: National Park: protected area managed mainly for ecosystem protection and recreation. Natural area of land and/or sea, designated to (a) protect the ecological integrity of one or more ecosystems for present and future generations, (b) exclude exploitation or occupation inimical to the purposes of designation of the area and (c) provide a foundation for spiritual, scientific, educational, recreational and visitor opportunities, all of which must be environmentally and culturally compatible.
Category II covers National Parks and equivalent reserves. Category II sites are characterized by the experience of ‘naturalness’. While managed to protect ecological integrity, Category II sites tend to serve to facilitate appreciation of the features protected, and typically include provisions for human visitors. Selection should be on the basis of representativeness and/or special significance, and sites should be large enough to contain one or more (relatively intact) ecosystems.
CATEGORY III: Natural Monument: protected area managed mainly for conservation of specific natural features. Area containing one, or more, specific natural or natural/cultural feature which is of outstanding or unique value because of its inherent rarity, representative or aesthetic qualities or cultural significance.
Category III covers areas that are typically not of the scale of Category II sites, but can be important as protected components within a broader managed landscape for the protection of particular forest communities or species. Selection should be on the basis of the significance of the features, and should be of a scale that protects the integrity of that feature and its immediately related surroundings.
CATEGORY IV: Habitat/Species Management Area: protected area managed mainly for conservation through management intervention. Area of land and/or sea subject to active intervention for management purposes so as to ensure the maintenance of habitats and/or to meet the requirements of specific species.
Category IV covers areas managed mainly for conservation through management intervention; habitats and other features may be manipulated to enhance the presence of species or communities of species, through, for example, artificial wetlands or the cultivation of preferred food crops. Category IV sites do not include production units primarily for exploitation, such as forest plantations. Category IV sites should be selected on the basis of importance as habitats to the survival of species of local or national significance, where conservation of the species or habitat may depend upon its manipulation.
CATEGORY V: Protected Landscape/Seascape: protected area managed mainly for landscape/seascape conservation and recreation. Area of land, with coast and sea as appropriate, where the interaction of people and nature over time has produced an area of distinct character with significant aesthetic, ecological and/or cultural value, and often with high biological diversity. Safeguarding the integrity of this traditional interaction is vital to the protection, maintenance and evolution of such an area.
Category V areas are characterized by a long-term socio-ecological interaction commensurate with high biodiversity values. Category V areas should be selected on the basis of diversity of habitats of high scenic quality combined with manifestations of unique or traditional land-use patterns and opportunities for public enjoyment through recreation and tourism.
CATEGORY VI: Managed Resource Protected Area: protected area managed mainly for the sustainable use of natural ecosystems. Area containing predominantly unmodified natural systems, managed to ensure long term protection and maintenance of biological diversity, while providing at the same time a sustainable flow of natural products and services to meet community needs.
Category VI areas are characterized by predominantly unmodified ‘natural systems’ that are managed to provide both maintenance of biological diversity and a sustainable flow of natural products and services. The expression ‘natural system’ can be interpreted many different ways. For purposes of the IUCN categories it can be taken to mean ‘ecosystems where since the industrial revolution (1750) human impact (a) has been no greater than that of any other native species, and (b) has not affected the ecosystem's structure. Climate change is excluded from this definition.‘ For an area to qualify for Category VI designation, not only must the site meet the definition of a protected area, but at least two-thirds of the site should be, and is planned to remain, in a natural condition. Large commercial plantations must not be included, and, as in all categories, a management authority must be in place. Category VI sites should also be large enough to absorb sustainable resource uses without detriment to the sites' overall long-term natural values.
Because many protected areas, particularly forest areas, are established for multiple objectives, at least three-quarters of a designated area must be managed primarily for one of the above management objectives in order for it to be listed under the corresponding category. The management of the remaining area must not be in conflict with that primary purpose. In cases where parts of a single management unit are classified by law as having different management objectives, or where one area is used to 'buffer' or surround another, they would be listed separately.
All protected areas must meet a test of management responsibility and ownership. Management authority may be through national government, local authority, informal community group, non-governmental organization, or private ownership, provided that it provides the capacity to achieve the given management objective. In general more strictly protected sites require state power for full protection, but recent experiments in vesting legal power in private entities for nature conservation objectives leave open the possibility of exceptions. Ownership of a unit must also be compatible with achievement of management objectives in order for the site to be listed.
Source: Definitions of the Protected Area Categories of the World Conservation Union (IUCN)
▪ CITES:
Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) is the global response to concern over the trade of endangered species. CITES was enacted in 1975 and currently 160 countries have ratified this treaty. CITES regulates trade in live animals, animal parts, ornamental plants, medicinal plant parts, and timber species. CITES seeks to identify threatened species and create increasingly strong legal barriers to their harvest and trade depending on their conservation status.
What Timber Species are Endangered or Threatened?
CITES lists threatened or endangered wood species under three classifications (known as Appendices). The stringency of these appendices varies depending on the extent to which the species is threatened with extinction. The CITES listing includes species that are traded for wood products, traded for medicinal purposes, and are rare, but not commercially traded. The species listed below are those that are traded most often in the international wood products market.
CITES Appendix I: Species in this list face an imminent threat of extinction and are banned from all international commercial trade. Trade is permitted for artificially grown species, products that were created before the species was added to the list, and for scientific purposes. However, permits are required from both the exporting and importing countries to verify that the species was obtained legally.
Alerce (Fitzroya cupressoides)
Brazilian rosewood (Dalbergia nigra)
CITES Appendix II: International trade in these species is allowed as long as the country of origin issues documents ensuring that the listed species' harvest was legal and not detrimental to its survival. These species should be used only when accompanied by a valid chain of custody certificate ensuring that they come from an independently certified well-managed forest. The species listed in Appendix II include:
Afrormosia (Pericopsis elata)
Lignum vitae (all species of Guaiacum)
Cuban mahogany (Swietenia mahagoni)
Bigleaf mahogany (Swietenia macrophylla)
CITES Appendix III: A voluntary mechanism that any country may invoke simply by verifying that its exported specimens were legally harvested. Once a species is listed (by any country) on Appendix III, all exporting countries are required to issue a certificate of origin with shipments of that species; export permits are required only if a country has included the species on Appendix III.
Almendro (Dipteryx panamwnsis)
Spanish Cedar (Cedrela odorata)
Ramin (Gonystylus spp,)
CITES Appendix I listed species should be avoided, only exceptional circumstances allow trade in these species. For CITES Appendix II and III species a degree of caution must be exercised. Firstly, there is a legal obligation on any importer and trader in these species. The obligation here ensures that all imports and trades are registered with the relevant authorities. Penalties are often large for failing to register imports of Appendix II & III species.
The second question concerns the endangered nature of these species. Whilst trade may be legal, it is important to recognise that in many cases it is trade that has led to these species requiring close monitoring. CITES listed species are subject to being removed from trade (moving to Appendix I or reduction in quotas) so in many cases do not guarantee long term availability.
Best practice with CITES species would be to explore alternative species except where credibly certified (and suitably documented) sources exist.
Source: 2003, WWF. Responsible Forest Products Purchasing: Best practice in the procurement of forest products.
▪ Forest Restoration:
Despite its value to humanity, over 50 per cent of the world’s original forest cover has disappeared. From 1990 to 2000 the UN Food and Agriculture Organisation estimated that forests were lost at a net rate of 9.4 million ha/year, with actual deforestation reaching 16 million ha/year. In addition, the quality of much of the remaining forest is declining rapidly.
WWF believes that, with millions of people depending on forest goods and services –food, fuelwood, medicinal plants, fodder and drinking water – these losses pose serious developmental as well as environmental problems. WWF, working with IUCN through the “Forests Reborn” project, has identified the need not only to protect and manage but also to restore forests. As a result WWF has adopted a target on “Forest Landscape Restoration” (FLR). Contrary to some traditional approaches to forest regeneration, FLR aims to do more than simply to increase forest cover.
Forest Landscape Restoration is defined as: “a planned process that aims to regain ecological integrity and enhance human well-being in deforested or degraded forest landscapes”. It focuses on re-establishing functions and key ecosystem processes across a whole landscape rather than at just planting or restoring individual sites. As such, Forest Landscape Restoration looks at a mosaic of land uses including agricultural lands and forest types ranging from plantations to natural forests. It might for example be used to help buffer a small and isolated protected area by re-establishing trees on surrounding land that, whilst having a range of social or commercial functions, could also help support native biodiversity. The key principles of Forest Landscape Restoration are that it:
• Is implemented at a landscape scale rather than a site
• Has both a socio-economic and ecological dimension
• Implies addressing the root causes of degradation and poor forest quality (such as perverse incentives and inequitable land tenure)
• Opts for a package of solutions, which may include practical techniques – such as agroforestry, enrichment planting and natural regenerations at a landscape scale – but also embraces policy analysis, training and research
• Involves a range of stakeholders in planning and decision-making to achieve a solution that is acceptable and therefore sustainable
• Involves identifying and negotiating trade-offs
WWF has therefore adopted a target to “undertake at least 20 forest landscape restoration initiatives in the world’s threatened, degraded or deforested regions, to enhance ecological integrity and human well-being by 2005”. WWF believes that given the scale of Forest Landscape Restoration and the fact that we are trying to re-orientate thinking, planning and financing of afforestation and reforestation activities towards FLR, we need to focus on sharing lessons learned and on mobilising new partners.
WWF will work with governments, international organisations and communities to pursue its work on Forest Landscape Restoration, by:
• Working with IUCN and other international organisations to promote FLR
• Developing case studies that exemplify the goals and methodology of FLR, building on existing projects that may currently satisfy some but not all the principles of FLR
• Documenting, exchanging and disseminating lessons learnt and experiences on FLR
• Addressing Forest Landscape Restoration issues that relate to human well-being
• Building local capacity to undertake Forest Landscape Restoration
• Initiating and facilitating FLR projects within WWF’s Ecoregion Action Programmes and with other Target Driven Programmes (e.g. freshwater and climate change)
• Developing suitable monitoring tools and techniques to measure progress on FLR
• Working with governments to eliminate economic, financial and/or policy incentives that contribute to forest loss or degradation
Source: WWF, 2002. Forest Landscape Restoration
• Forest conversion:
During the last twenty years of the twentieth century, 300 million hectares of tropical forests were converted to non-forest land-uses worldwide. The conversion of forests to other land uses imposes severe environmental and social costs due to the ecological impacts of clearance, uncontrolled burning, and disregard for the rights and interests of local or indigenous communities. Without significant changes in policy and practice, the process of forest conversion is likely to continue at a rapid rate and pose a major threat to High Conservation Value Forests (HCVF – see separate position paper), freshwater ecosystems, livelihoods of forest dependant peoples and habitats of endangered species such as elephants, rhinos, tigers and great apes. Reduction of wildlife habitat leads to increased human-wildlife interaction and conflict.
WWF defines forest conversion as a continuous process of forest degradation, leading from natural forests over one or several steps to the replacement of forests by other forms of land use, such as plantations, agriculture, pasture, mining and urbanization. The driving forces behind forest conversion vary and are often interrelated. Among the most important are: the fact that forests are not valued for the long-term benefits that they provide, and that conversion often costs very little money. This creates incentives to log and sell the valuable timber out of forests and then convert the degraded forest land to more profitable land uses rather than to undertake sustainable forest management. Non-existent or insufficient landscape planning procedures and lack of guarantee of land ownerships and tenure rights often set the ground for uncontrolled and unwanted forest conversion processes.
WWF believes that forests are amongst the most diverse and valuable ecosystems around the globe. They provide a wide range of products and benefits for humans and nature that can rarely be substituted through other means. Therefore in general every effort should be made to prevent any forest, but especially HCV Forests from, being converted. WWF recognizes that under certain conditions planned and targeted conversion can be beneficial or necessary to reach specific goals of public interest without endangering the overall functionality of forests. Where conversion is planned the following conditions shall be fulfilled:
• Identified High Conservation Value Forests should not be affected by any forest conversion
• At a minimum, conversion must not contribute in any way to the extinction of species, or to the loss of significant subpopulations of an endangered species
• The total forest cover within a country or region should not be below an agreed long-term goal described in a National Forest Programme or planning documents developed through a multi-stakeholder process
• There should be proven and agreed public interest and benefits from the new land-use, that surpasses public interest in forest conservation
• There should be a transparent planning process on a landscape level, involving all relevant stakeholders
• Independent environmental and social impact assessments should be conducted and the necessary measures to prevent negative impacts of the conversion implemented
WWF will work together with governments, public and private institutions and other partners towards the elimination of unplanned and damaging forms of conversion to safeguard biodiversity and social values by:
• Calling for transparent planning processes to achieve an optimal distribution of natural forests, plantations, agricultural areas, urban areas and other land-uses in a given landscape. This includes well-informed negotiations among a wide range of stakeholders to balance ecological, social and economic dimensions of natural resource use across the landscape
• Enforcing adequate safeguards that recognize and guarantee the legal and customary rights of indigenous peoples and rural population to own, use and manage their lands, territories, and resources
• Engaging with financial institutions and market actors in forest conservation and lobbying for the elimination of policy incentives that contribute to forest conversion and forest destruction
Source: WWF Position paper.
▪ Plantations:
According to the Food and Agricultural Organisation of the UN (FAO), in 2000 there were 187 million ha of forest plantations in the world, a third in the tropics and two thirds in temperate and boreal zones. The area has increased 17per cent in the last decade, half from the conversion of natural forests to plantations and half from afforestation or reforestation on previously non-forested lands.
Well-managed and appropriately located plantations can play an important role in healthy, diverse and multi-functional forest landscapes. The plantation industry generates valuable foreign exchange earnings and employment opportunities for producer countries. However timber plantations have often imposed significant environmental and social costs, particularly when they are established through the conversion of natural forests. Indiscriminate forest clearing, uncontrolled burning and disregard for the rights and interests of local communities have been associated with plantation establishment. Unless there are significant changes in policies and practices, in many regions the expansion of plantations will continue to threaten high conservation value forests, freshwater ecosystems, forest dependant peoples and habitats of endangered species.
WWF calls upon the private sector, regulators, financiers and other stakeholders to work collectively to develop and promote adoption of environmentally appropriate, socially beneficial and economically viable practices in the forest plantation industry.
WWF believes that key elements of sustainability within the plantation forest industry are:
• Maintenance of high conservation value forests: plantations should not replace high conservation value forests (see separate position paper). This will normally require well-informed negotiations among a wide range of stakeholders to achieve optimal integration of plantations with the mosaic of other land-uses in a landscape.
• Multi-functional forest landscapes: Plantations should enhance environmental values by providing corridors between, and buffer zones around natural forest areas.
• Sound environmental management practices: the industry should adopt management practices that minimise environmental impacts such as air and water pollution, forest fires, soil erosion, pest invasion and biodiversity loss.
• Respect for rights of local communities and indigenous peoples: the industry should recognise legal and customary rights of local and indigenous communities to own, use and manage their lands, territories, and resources. Plantation development should not proceed in areas over which there are unresolved tenure disputes.
• Positive social impacts: The industry should maintain or enhance social and economic wellbeing of plantation workers and communities, including strengthening and diversification of the local economy to avoid dependence on plantation products.
• Proficient regulatory frameworks: Regulatory frameworks should encourage practices that achieve the desired outcomes. At a minimum, industry participants shall respect all laws of the country in which their plantations and mills are sited. However, responsible behaviour will often require standards of performance that exceed the requirements of local and national laws, especially where regulatory frameworks are underdeveloped or governance is weak. WWF believes that third party certification of good management, to the standards of the Forest Stewardship Council or equivalent, should be a prerequisite of plantation management.
• Transparency: the industry should adopt and make public policies, practices and implementation plans pertaining to their social and environmental performance. They should encourage independent, publicly available performance monitoring, involving local stakeholders in both development of standards and performance monitoring.
WWF will work with governments, private companies, financial institutions and civil society organisations to improve plantations by:
• Advocating effective targeting of public funds towards the restoration of multi-functional forest landscapes and away from commercial production-based activities
• Lobbying against socially or environmentally damaging plantations
• Promoting the landscape approach (see separate position paper) to balance trade-offs between intensive wood production and other forest goods and services.
• Identifying a common vision for the future of plantations via the establishment of an independent, multi-stakeholder plantations commission
Source: WWF position paper.
▪ Genetically Modified Organisms (GMOs):
WWF’s mission is to conserve nature and ecological processes, and to address this in a way which benefits human needs and livelihoods. WWF therefore recognizes the potential value to society arising from the new opportunities provided by the developing science of GMOs, especially for medical application. However, WWF is concerned about the potential dangers involved in releasing GMOs into the general environment through agriculture.
The natural evolution of biodiversity is an ongoing process which has taken place for a few billion years. It has involved natural selection, the interactions between species and the development of the niche of each species leading to communities of different species of plants and animals with interrelated roles and dependencies. Evolution ensures that each species optimizes its “fit” within the broader community of organisms where it occurs. Different species are adapted to different conditions. Some are very sensitive to minor changes in these conditions, or competition from other species. The adaptability of a species depends on genetic diversity. Intensive “breeding”, as in GMOs, involves artificial selection of desired traits, which results in a great reduction of genetic diversity.
The introduction of new species, or alien genetic material, can trigger changes in species’ adaptability and relationships, altering the natural balance and affecting established ecosystem processes which are essential to a stable environment. Natural systems are losing biodiversity, and hence genetic material, at a higher rate than ever before. The release or escape of GMOs into the general environment further threatens the declining natural resource.
A major cause of biodiversity loss over recent decades has been the intensification and extensification of agricultural production of a few crop species. WWF has addressed this through work with communities and agencies to identify more sustainable production methods. The application of GMO technology to agricultural crops and animal breeding may bring short-term opportunities but is also a threat to sustainable agriculture and biodiversity. Release of GMOs into the general environment takes place through genetically modified crops or release and escape of farm animals, including fish.
The use of genetically modified crops for insect pest or drought tolerance, may bring some benefits in some areas, but it can bring negative impacts on ecological processes and the ecological sustainability of agriculture, and on economic and social factors. For instance, where crops are modified to tolerate herbicides, chemicals are often used more freely; insect resistance in plants can lead to the death of beneficial insects on contact with these crops. Other effects include transfer of resistance to wild species which can then become pests and increase damage to other crops. This can in turn impact on the viability of sustainable subsistence farming through a shrinking genetic base, increased vulnerability, increased dependence on capital-intensive inputs, and concentration of market power and intellectual property rights.
The development of GMOs is much more than a greatly accelerated form of microbial, plant and animal breeding which relies on natural reproductive processes. It can create novel life forms and has the potential to do so at a rate unparalleled in Earth’s history, and in a manner not controlled by, or within the reach of, natural selection. Conventional breeding produces new strains of organisms, some of which may affect native wildlife. In contrast, GMO techniques, which involve incorporating new combinations of genes into crops and livestock, can bring greater risk to biodiversity through impact on ecological interdependencies. Associated changes in land use and management can also have an impact. In addition, widespread use of GMOs will increase depletion of natural intraspecific genetic variation – that is, reducing the genetic variability in biodiversity. This in turn may adversely affect species “fitness”.
These issues are further spelt out in “Background Paper on the need for a Biosafety Protocol as part of the Convention on Biological Diversity” (WWF International, 1995).
For the present, WWF wishes to see a strong precautionary approach to the use and release (or escape) of GMOs into the wild. The science is still very new and it is apparent that much ecological research needs to be done before this technology moves from the laboratory into standard practice.
WWF seeks:
• a moratorium on use or release of GMOs into the general environment until ecological interactions are fully researched and safeguards put in place;
• transparent, comprehensive environmental impact assessment of planned releases into the environment, to include consideration of the impacts of changing crop management practices, as well as the invasion of natural and semi-natural habitats or competitive displacement of native species by transgenic plants and animals;
• avoidance of additional impacts through genetic modifications which:
- facilitate or stimulate greater use of chemicals;
- harm pest controlling and other locally beneficial insects associated with crops;
- lack safeguards against gene flow into native organisms;
- use artificially constructed genes (whose effects are harder to predict and control);
• Control of gene technology, including government regulation and the establishment of independent statutory authorities, scientific and community assessment, and effective monitoring of the use and spread of GMOs, including effects on different habitats and species, and on human health and livelihoods;
• Recognition of the role of traditional knowledge in crop breeding and appropriate benefit sharing.
WWF will:
• alert governments, aid agencies, industry and the public to both good and bad practices as it impacts on WWF’s mission to protect and enhance the environment and sustainable livelihoods;
• support moratoria on the use and release of GMOs in crops until there is wide consensus that research on ecological impacts has been completed and evaluated, and risks identified to being acceptably low;
• support calls for ecolabelling to promote consumer awareness and informed decision-taking.
Source: 1999, WWF position paper.
▪ Credible Independent Forest Certification:
The term “independently certified forest” refers to forests that have been independently assessed and certified as being from “well managed” forests. That is, forests that are managed in an environmentally responsible, socially beneficial and economically viable manner. An independent certification process involves standard setting, accreditation and auditing all being carried out by different independent bodies.
Forest certification inspections or audits are carried out third party certification bodies. An independently recognised body in turn accredits these certifiers. The forest audits must be site specific and assess the forest management on the forest management unit level against measurable recognised performance standards. These standards must include minimum thresholds for economic, social and environmental criteria.
Final customers (purchasers of goods not for resale or consumers) seek assurance that the products they are purchasing are independently certified forests via a “chain of custody” certificate. This form of certification requires businesses which handle certified forest products to demonstrate that their certified products and raw materials are produced under a credible chain of custody system Chain of custody certification must be coupled to a logo or label which can be used visually to identify products from well managed and certified forest operations where this is desirable.
Independent forest certification and the associated market in certified forest products are market and stakeholder driven processes.
World Bank – WWF Alliance Principles and Criteria for Defining Acceptable Independent Certification Systems
The following is an extract from the World Bank – WWF Alliance Guidance Note for improved Forest Management & certification Target: Achieving Independent Certification for 200 Million Hectares of Well Managed Production Forests by the year 2005. ()
Goal & Purpose
The goal of the Alliance is to promote improved forest management through the adoption of best practices that are internationally recognised, and the verification of their application based upon performance reviews conducted by independent parties. The purpose of independent certification is to identify, recognise, communicate and promote the broader adoption of these best practices. For the purposes of the Alliance, independent certification is achieved when the following conditions have been met:
• participation of all major stakeholders in the process of defining a standard for forest management that is broadly accepted;
• the compatibility between the standard and globally applicable principles that balance economic, ecological and equity dimensions of forest management;
• the establishment of an independent and credible mechanism for verifying the achievement of these standards and communicating the results of all major stakeholders.
Principles
The Alliance believes that a common set of principles should underscore any standard for improving forest management. These include the following:
• Compliance with all relevant laws: Forest management shall respect all applicable laws of the country, in which they occur, and international treaties and agreements to which the country is a signatory.
• Tenure and Use Rights: Long-term tenure and use rights to the land and forest resources shall be clearly defined, documented, and legally established.
• Indigenous People’s Rights: The legal and customary rights of indigenous peoples to own, use, and manage their lands; territories and resources shall be recognised and respected.
• Community Relations and Workers Rights: Forest management operations shall maintain or enhance the long-term social and economic well-being of forest workers and communities.
• Benefits form the Forest: Forest management operations shall encourage the efficient use of the forests multiple products and services to ensure economic viability and a wide range of environmental and social services.
• Environmental Impact: Forest Management shall conserve biological diversity and its associated values, water resources, soils, and unique and fragile ecosystems and landscapes, and by doing so, maintain ecological functions and integrity of the forest.
• Management Plan: A management plan, appropriate to the scale and intensity of operations, shall be written, implemented, and kept up to date. The long term objectives of management, and the means of achieving them, shall be clearly stated.
• Monitoring and Assessment: Monitoring shall be conducted, appropriate to the scale and intensity of forest management, to assess the condition of the forest, yields of forest products, chain of custody, management activities and their social and environmental impacts.
• Maintenance of Natural Forests: Primary forests, well developed secondary forests, and sites of major environmental, social, or cultural significance shall be conserved. Such areas shall not be replaced by tree plantations or other land uses.
• Plantations: Plantations shall be designed and managed consistent with Principles 1 to 9. Such plantations shall complement overall ecosystem health, provide community benefits, and provide a valuable contribution to the world’s need for forest products.
Criteria for Determining Acceptable Certification Systems
The Alliance believes that credible certification systems must be built upon the following foundation:
1. institutionally and politically adapted to local conditions;
2. goal-oriented and effective in reaching objectives;
3. acceptable to all involved parties;
4. based on performance standards defined at the national level that are compatible with generally accepted principles of sustainable forest management;
5. based on objective and measurable criteria;
6. based on reliable and independent assessment;
7. credible to major stakeholder groups (including consumers, producers, conservation NGOs, etc);
8. certification decisions free of conflicts from interested parties with vested interests;
9. cost effective;
10. transparent;
11. equitable access to all countries.
Relevance for Responsible Purchasers:
This definition for acceptable Independent certification systems should be adopted when defining policy and in subsequent reviews of progress. Applying this set of criteria will allow the organisation to choose which certification system or systems are acceptable.
Certification systems are constantly evolving and improving, therefore the criteria used to assess the suitability of a particular system, or actual support for a system should be reviewed periodically. WWF GFTN will periodically offer advice and comment on the range of systems available and their suitability for use by responsible purchasers.
Currently, the Forest Stewardship Council (FSC) is the only certification system recognised by WWF GFTN to best deliver on WWF’s conservation agenda. ()
Source: WWF, 2003. Responsible forest products purchasing: Best practice in the procurement of forest products
▪ Member of a WWF Producer FTN (Producer Group):
Minimum entry requirements for forest managers/producers are:
• Either to have already achieved forest certification
• OR, to make public a commitment to achieve certification under a GFTN approved certification scheme within a maximum of 5 years.
• Uncertified forest managers must undergo a baseline appraisal, the report for which must be verified by a GFTN approved auditor.
• On the basis of the audit, a time-bound Action Plan must be verified by a GFTN approved auditor and approved by the FTN Management.
• Implementation of the Action Plan must be checked periodically through monitoring visits by independent auditors and monitoring reports verified by a GFTN approved auditor. The frequency of monitoring visits is to be specified in the action plan.
• Provide proof that the forest is a known, legal source:
- a copy of the licence showing that the company has the right to harvest wood from the area in question;
- a permit from the relevant forestry authorities giving permission to harvest from a specific area within the forest in that harvesting period.
Producer FTN members, will fall in to one of a number of categories. Members for which there is third party legal origin verification fit in to the “Verified Legal Source in Progress to certification category”. Group members for which there is a second party legal origin verification should be regarded as belonging in the “Known Legal” category and new producer group members awaiting a more comprehensive assessment should be placed in the “Known Source” category.
The full requirements for membership of a Producer FTN can be obtained from WWF GFTN.
Source: WWF, 2003. Responsible forest products purchasing: Best practice in the procurement of forest products.
▪ Acceptable stepwise certification programme:
A number of stepwise approaches to forest certification have been developed. One of the most successful to date has been the Tropical Forest Trust (TFT).
TFT members invest a fixed percentage of their product’s gross margin to fund TFT activities tailored to suit their investment needs.TFT members get a return on their investment by securing a more ethical wood supply.TFT members gain access to timber and wood products generated by specific projects they are supporting – before the project achieves FSC certification members have the security of knowing that their supply chain originates in a project that is demonstrably moving towards FSC certification with TFT assistance and monitoring. Having established such a close relationship with these projects, TFT members have the opportunity to secure a long-term supply of FSC certified timber and wood products once the project is certified.
Depending on the specific TFT project and the level of progress, this type of source can be placed in the “Known Source” category or subject to suitable progress, in the “In progress to certification” category.
Source: WWF, 2003. Responsible forest products purchasing: Best practice in the procurement of forest products.
▪ Forest manager is formally and contractually committed to credible, independent forest certification:
Outside of WWF Producer FTNs, other suppliers can be encouraged to achieve certification of their forests through a variety of mechanisms. Where the relationship between a forest manager and a client is strong, it is appropriate for both to enter in to a contractual agreement to supply certified forest products within an agreed time-frame. It is recommended that this time-frame to achieve certification does not exceed 5 years and that the certification process is one that meets the criteria of the GFTN (see independent forest certification).
A number of organisations are now offering support for forest producers, particularly in the tropics and the South.
For such a mechanism to be credible to third parties, such as stakeholders, both the forest manager and the client will need to ensure that such activity is transparent, though this may involve resolving potential conflict with confidentiality.
Source: WWF, 2003. Responsible forest products purchasing: Best practice in the procurement of forest products.
Responsible forest products purchasing policy
▪ Basic Outline of Responsible Purchasing Activities
The key components of any programme devoted to pursuing a policy of responsible purchasing will include:
Policy
The organisation must be able to demonstrate commitment through the development and pursuit of policies that will precipitate improved forest management. These policies must include reference to:
▪ The elimination of illegally logged forest products
▪ The elimination of forest products sourced from high conservation value forests which are not independently certified as well managed
▪ Continuously increasing the proportion of forest products (as designated within the scope of their policy) that originate from known, legal and credibly certified well managed forests.
Action Plan
The organisation must develop a series of annual targets, which address deficiencies or weaknesses in achieving the stated Policy. Annual targets should be agreed with management to ensure that the activity and progress can be defined, measured and reported if required.
Reporting
The organisation may be required to report on its activities to internal and external stakeholders on its progress towards its targets and compliance with the annual targets. For larger public companies, environmental or CSR reporting is becoming increasingly common and expected. An organization should be able to gather data to track the following in their supply chain:
▪ Forest(s) of origin for each raw material
▪ Species of timber or other forest product
▪ The volume of this material
▪ An assessment of the category of this material
In order to develop a sense of the progress made over time, the organization should use the following categories to assess the environmental status of the material:
▪ Certified to an acceptable standard of forest management
▪ Progressing towards certification
▪ Legal sources
▪ Known sources
▪ Unknown / Unwanted sources
▪ Recycled materials
Review
Organisations adopting responsible purchasing policies must review their progress and achievements on a regular basis. This may be an internal review or a much wider process involving stakeholders or other third parties. The review should discover what worked, what did not work and what needs to be done.
Senior management
The organization will not be able to achieve it’s targets or implement its policies fully without the support of the highest authorities within the organization. A senior member of management should be designated as responsible for policy compliance and must have sufficient seniority to ensure that all commitments are realized.
Communications
The integrity of the organization and it’s supply chain is at risk if the nature, role, scope and achievement of the policy are mis-communicated.
Source: WWF, 2003. Responsible forest products purchasing: Best practice in the procurement of forest products.
Energy
▪ Renewable energy sources:
The concept of new renewable is derived from the need to separate sustainable from unsustainable renewable energies. For WWF, new renewable comprise all forms of solar, wind, geothermal and marine energies. In addition small hydro power ( ................
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