newsletter forestry and wood...
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WWF European Forest ProgrammeCo-ordination unit
Avenue du Mont Blanc1196 GlandSwitzerlandContact: [email protected]
Newsletter Forestry and Wood Certification No. 4/2004Information contained in this newsletter is sent to approximately 14 000 recipients in 14 countries and is translated into 9 languages.
This bi-monthly newsletter provides information on progress in improving forest management around the world. Particular attention is given to credible forest certification, threats to forests such as illegal logging, trends in the investment sector and companies/ individuals showing leadership.
Contact the editor on [email protected]
CONTENTS
IMPROVING FOREST MANAGEMENT IN EUROPE AND AROUND THE WORLD 1Commission Presents Draft Regulation to Keep Illegal Timber Out1World Bank/WWF Alliance to Test FSC and PEFC in 12 Countries2UPM to Begin Parallel Certification Field Testing in Three Countries 3WWF Responsible Purchasing Guide Available in Hard Copy and Different Languages 4New Director of the Global Forest and Trade Network....................4Meeting of German DIY Retailers and Russian Wood Producers....4New WWF Computer Game Shows Responsible Purchasing Choices for Consumers 5Help Spread the Word - Are YOU Buying Good Wood?.................5Sweden's Soaring Roundwood Trade Harms Russia and the Baltic States 6Certification Centers in Romania and Bulgaria................................6Retail Giant ALDI Aims for FSC Garden Chairs.............................6Biomass as Chance for Climate and the Forest Industry?................7
PAPER IN FOCUS...................................................7The Growth of Certified Paper: An Analysis....................................7FSC Paper Forum..............................................................................8Critical Paper Report Released.........................................................8Mitsubishi Corporation to Cease Buying Tasmanian Woodchips...9
FOCUS ON RESPONSIBLE INVESTMENT AND CSR 9NGOs Warn Investors About Risks of a Planned Indonesian Pulp Mill 9Pulp Mill in Estonia – How Safe is This Investment?....................10German Export Credit Agency Before Court.................................10EIB Under Scrutiny by NGOs........................................................11“BBQ The Banks” – NGO Campaign in the US............................11Principles, Profits or Just PR – Equator Principles in Review.......12No to China Bonds..........................................................................12
NEWS ON FSC.......................................................12Status Quo and Projection of FSC Certification in Eastern Europe12New FSC Certification Bodies and Continued Controls................13FSC 10th Anniversary and Annual Conference in September.......14
BACKGROUND AND FACTS..............................1410 – 12 September 2004 10th Anniversary Conference of FSC / FSC Annual Conference 1427th – 29th October 2004 Adam Smith Conferences - 9th annual conference on Pulp & Paper in Russia and the CIS, Vienna 1411-12th November Triple Bottom Line Investment Conference....14
Certification Assistance............................................15
Improving Forest Management in Europe and Around the World
Commission Presents Draft Regulation to Keep Illegal Timber Out
Let’s leave our children a living planet
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On July 20 2004 the European Commission officially presented a draft regulation which will underpin the voluntary licensing scheme, one of the key measures in the Commission's FLEGT (forest law enforcement, governance and trade) Action Plan against illegal logging. The proposed regulation sets up a legally binding licensing scheme with partner countries to ensure that only legal timber from these countries is allowed into the EU. Other key measures officially adopted by the Commission are the voluntary partnerships with wood-producing countries badly affected by illegal logging, to support and promote governance reform in their timber sectors.
The announcement by the Commission comes after various debates in the EU Parliament and Council meetings on the EU FLEGT Action Plan since it was first announced in May 2003.
Although WWF, FERN and Greenpeace welcome in general the proposed regulation as well as the partnership agreements as potential steps in the right direction, they criticise the absence of additional legislation to prohibit the import and sale of illegally sourced timber and wood products, regardless of the country of origin. Such legislation would be essential for the announced measures to take effect and prevent circumvention of the licensing scheme through third countries.
NGOs have not been alone in requesting to make illegal timber trade within the EU a criminal offence. Early June the Belgian government brought in a call for such legislation into the Environmental council meeting and was supported on this by Denmark, France, Germany, Italy, Spain and the UK. A call for researching such legislation was also made by the European Parliament and the Council.
NGOs are further critical that the regulation will be based on article 133 of the EU treaty against the wish of the EU Parliament who now will not have any power to amend the regulation. Instead full power is given to the Commission and Council for the regulation’s finalisation and implementation.
"We are cautious with our applause for these measures as the regulation and provisions for the partnership agreements currently do not set out enough binding principles for implementation and monitoring. This urgently needs to be strengthened”, says Beatrix Richards WWF´s forest policy officer in Brussels. “In order to monitor how serious individual governments are about implementation WWF will soon repeat it’s scoring of EU governments on their actions against illegal logging. In the Government Barometer on Illegal Logging launched in April all EU governments failed to show a satisfactory performance overall. The UK came out best – rated moderate to good – clearly ahead of Denmark, Germany and Sweden, which were credited with an overall moderate performance. Austria, Finland, France, Greece, The Netherlands, Spain, Italy and Portugal were rated poorly on their actions.
EU Commissions Press release July 20: http://europa.eu.int/rapid/pressReleasesAction.do?reference=IP/04/980&format; WWF EPO, Greenpeace, FERN July; www.panda.org/barometer
World Bank/WWF Alliance to Test FSC and PEFC in 12 Countries
The World Bank/WWF Alliance for Forest Conservation & Sustainable Use (Alliance) has started to carry out an assessment of the Forest Stewardship Council (FSC) and the Program for the Endorsement of Forest Certification (PEFC) in July 2004.
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Scheduled to run through the summer, the planned field tests will be conducted at the national level in twelve countries in Eastern and Western Europe, utilizing a questionnaire developed by the Alliance for assessing the comprehensiveness of certification schemes/systems.
The primary purpose of the field testing is to evaluate and improve the questionnaire so that it can provide a reliable and transparent mechanism for helping to assess which activities supported by WWF and the World Bank either individually or collectively can be counted as contributions toward the Alliance’s certification target.
The Alliance has appointed an independent multi-sector review panel to oversee the process, ensure technical rigor and objectivity, and provide advice to the Alliance partners. This panel is composed of representatives from private industry, and environmental, international intergovernmental, and scientific organizations.
The Alliance promotes the use of certification as a catalyst for improved forestry practices, and is working towards a target of helping to bring 200 million hectares of production forests under independent certified management.
Source: Press release World Bank/ WWF Alliance 30 June For more information, contact Beatrix Richards, WWF (+33 1 55 25 84 88, [email protected]) or Gerhard Dieterle, the World Bank (+1 202 458 7334, [email protected]). For further information about the Alliance, the questionnaire, or the assessment process, visit http://www.forest-alliance.org.
UPM to Begin Parallel Certification Field Testing in Three Countries
This summer, UPM will begin parallel certification field testing of forest certification schemes in three different countries: Finland, the UK and Canada.
Testing will be done between national schemes and international PEFC and FSC schemes. WWF international will act as an observer in the project.
In Finland and the UK, the testing will be carried out on company owned land which is currently certified to national forest standards (FFCS and UKWAS); in Canada, on provincially owned forests managed by the company. The Canadian forests are certified according to the North American SFI scheme. In all countries the comparisons will be made with PEFC and FSC, and in Finland with both the Swedish FSC and draft Finnish FSC.
Based on the test results, UPM states it will further develop its worldwide forestry and wood sourcing practices and promote the development of credible certification schemes in the countries it operates. "Through parallel certification field testing we can evaluate the benefits of different schemes", said Jaakko Sarantola, Senior Vice President, Forestry and Wood Sourcing, UPM. “At the moment there is strong competition between the schemes and this has caused confusion in the international market. Testing will tell of our willingness for continuous improvement and at the same time will provide an opportunity to compare the different schemes equally".
"WWF welcomes this initiative. Together with the recently announced World Bank/WWF Alliance assessments of certification systems at national levels in Europe, the results will form a solid basis for defining thresholds for credible certification which are understandable by all stakeholders in the certification debate." said Duncan Pollard, Head of the WWF European Forest Programme at WWF International.Source: Press release UPM – Kymmene June 23 2004 http://w3.upm-kymmene.com
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14 Companies Implicated – 3 Applauded on their Forest Practices in CanadaA new report, Bringing Down The Boreal: How U.S. Consumption of Forest Products is Destroying Canada’s Endangered Northern Forests, released July 20 by the North American NGO ForestEthics, implicates 14 companies to be involved in unsustainable logging practices in the Boreal forests of Canada. "This report names the companies responsible for causing almost five acres of forest to be cut in Canada every minute”, said Lafcadio Cortesi, ForestEthics Boreal Campaign Director. “We are sending this report to large forest product customers and urging them to vote with their wallets for Boreal forest protection." Tzeporah Berman, ForestEthics Program Director adds: “This report reveals that our heritage is being shipped south to make catalogues and toilet paper”.
Three companies are praised in the report for moving toward better practices: Alberta Pacific, Domtar Inc. and Tembec Industries. They are showing leadership by using alternative fibres in pulp mills, working with other stakeholders to establish protected areas and moving toward using FSC certified wood for production.
Economic considerations for the companies listed by ForestEthics are provided by Juan Silva, forest products analyst from the internationally recognized investment research and advisory firm Innovest: “Innovest research has shown that a good track record on environmental performance in forestry and manufacturing operations has a direct bearing on financial out performance of leading companies.“ Source: Press release ForestEthics July 20 2004; Download the report on http://www.forestethics.org/html/eng/996.shtml
WWF Responsible Purchasing Guide Available in Hard Copy and Different Languages
WWF’s guide Responsible Purchasing of Forest Products – launched earlier this year - contains guidance for companies committed to a step by step approach to identifying the sources of their forest products, ensuring they come from legal sources, and eventually sourcing their products from credibly certified sources. It is available on request in hard copy in English, is available online in Japanese and Spanish and will soon be available in Swedish, Danish and French. Contact [email protected] for a hard copy or go to http://www.panda.org/forests/goodwood for an online copy.
New Director of the Global Forest and Trade Network
Per Rosenberg joined WWF’s Global Forest & Trade Network (GFTN) as its new Director on 1 July 2004. Rosenberg, educated in the U.S. and Sweden, gained first hand knowledge of the work of an FTN when he set up and managed the pioneering Swedish FTN in 1993. He later went on to
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become Head of WWF’s European Forest Programme before serving as President of the Swedish Society for Nature Conservation and then Principal Consultant with the leading international consultancy – Environmental Resource Management (ERM).
The GFTN is WWF’s initiative to eliminate illegal logging and improve the management of valuable and threatened forests. It is an affiliation of more than 20 regional and national Forest & Trade Networks (FTNs) that are active in nearly 30 countries across Europe, Asia, Africa and the Americas .
“An important way for GFTN to pursue its goals is facilitating trade links between GFTN member companies committed to achieving and supporting responsible forestry. Helping make those connections between buyers and producers is vital and I plan to ensure even greater market links across the network while strategically extending the network”, said Rosenberg.
Meeting of German DIY Retailers and Russian Wood Producers
The German Forest and Trade network (FTN) recently arranged a trade visit to Archangelsk for German do-it-yourself companies (DIYs) to meet with members of WWF’s producer-oriented FTNs in Russia. The trip was initiated after a Greenpeace campaign in Germany accusing DIYs of selling products from pristine forests in Russia; Greenpeace also joined the trade visit. The German DIYs are interested in the Russian FTN members as a source of responsibly produced wood. This trip is seen as a pilot for future trade visits for interested European GFTN members.
Contact Johannes Zahnen, [email protected].
New WWF Computer Game Shows Responsible Purchasing Choices for Consumers
Every day we use products that come from the forest: From our toilet paper to furniture and the floor we walk on. A new WWF computer game educates about consumer choices and calls on people to care where the products they buy come from.
To play go to http://panda.org/games/fsc/#
Help Spread the Word - Are YOU Buying Good Wood?
WWF´s new consumer ads show that companies and consumers have a choice. Buying responsibly is possible and is of essence for all those concerned with the world’s forests as long-term resource, as source of many environmental services such as clean water, and as one of the world’s key sources for biodiversity. Help spread the word on practical step-by-step solutions and risk management. Download the ads from
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www.panda.org/forests/ads
Sweden's Soaring Roundwood Trade Harms Russia and the Baltic States
A new report from WWF-Sweden on the ecological footprint of Swedish roundwood imports from Russia and the Baltic States describes the challenges of a soaring trade with timber from unknown and possibly illegal sources and its impacts on the environment and local economies in these countries.
Sweden today imports about three times as much roundwood as in the 1990s. Almost a
fifth of the total raw material supply of the Swedish forest industry comes from the Baltic States and Northwest Russia, where forests of great biological value are at stake.
The raw material supply of the Swedish forest industry sector is very complex. This means that virtually no larger producer of forest products in Sweden can presently guarantee that wood of doubtful origin is not used in their production.
The report highlights that Swedish importers and producers must become better at controlling the ecological and social consequences of logging operations and forest management. The right signals need to be sent by both industry as well as consumers all over Europe — demanding verification that the timber they buy comes from legal and responsible sources. Source: WWF Sweden July 9 2004 Download the executive summary from http://www.panda.org/downloads/forests/summaryswereport.pdf
Certification Centers in Romania and BulgariaAs part of the WWF and IKEA Co-operation on Forest projects which exists since 2002, two Forest Certification Information Centers have now been established in Romania and Bulgaria and recently started to operate. The main aim of these centers is to serve as a one-stop information shop for forest certification in these countries. Staff with local knowledge and training by the UK consultant Proforest are providing guidance and services to forest owners and companies on all they need to know on forest certification; from how to get certified to linking to markets i.e. by providing information on where in the country certified resources can be accessed and which
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companies within the country and outside have an interest in certified timber. Training programmes will also be held. The Romanian Certification Center is located within the University of Brasov, forest faculty; The Bulgarian Certification Center is attached to WWFs Danube Carpathian Office in Sofia.
If you want to contact the certification centers please contact [email protected] for the Romanian Forest Certification Information Center and [email protected] ( +359 2 8653052/ +359 2 9640546) for the Bulgarian Forest Certification Information Center.
Retail Giant ALDI Aims for FSC Garden Chairs
The international discount retail giant ALDI, in response to increasing pressure by the German NGO Robin Wood to disclose where the tropical garden furniture they sell comes from, declared recently that they will aim to source FSC labelled garden furniture for their 3050 German stores. According to Robin Wood this commitment needs yet to be implemented. ALDI, which is famous for low price retail goods, has stores also in Spain, the Netherlands, Luxemburg, France, Denmark, Belgium, Austria, UK, Ireland, USA and Australia.Sources:http://www.umwelt.org/robin-wood/german/trowa/fg/index.htm; FSC working group Germany FSC newsletter 04/08
Biomass as Chance for Climate and the Forest Industry?A report by WWF and the European Biomass Association (AEBIOM) shows that residues from crops and co-products from wood processing, wood fuels from multi-purpose forests and dedicated energy plantations can become a major sustainable and safe power source for the world´s energy demand and draws up a blueprint for achieving 15% of electricity production from biomass use in industrialised countries by 2020.
Besides the clear economic and employment gains, biomass production has several environmental advantages: substituting fossil fuel use with a CO2 neutral alternative; reducing emissions of other atmospheric pollutants such as sulphur; protecting soil and watersheds; increasing or maintaining biodiversity and reducing fire risk in forestry. The use of biomass could for instance reduce emissions of carbon dioxide (CO2), the main global warming gas, by about 1,000 million tonnes each year - a figure equivalent to the combined annual emissions of Canada and Italy. The report emphasises that there need to be no land-use conflict between biomass use for energy and the production of crops and forests for food and fibre in industrialised countries. It recommends that governments set strong and clear policy signals and develop and enforce best practice guidelines for biomass production to minimize any negative social, economic, or environmental impacts. Globally about 50% of the potentially available residues are associated with forestry and wood-processing industries, about 40% are agricultural residues and 10% animal manure.
Source: WWF International Press release May 27 2004 Down load the report onhttp://panda.org/about_wwf/what_we_do/climate_change/news/news.cfm?uNewsID=13301
Paper in Focus
The Growth of Certified Paper: An AnalysisOpinion piece from Duncan Pollard, Head of the WWF European Forest Programme
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Forest certification has been around for about 10 years, and has shown remarkable growth in that time, establishing itself as a key way of "doing business" across many sectors of the forest industry such as garden furniture, and panel products. It has however been slow to take off in the paper sector, until recently. There are good reasons for believing that this is likely to change as the paper sector continues to see a growth in demand for and availability of certified paper. There are various trends and drivers for this trend which I will try and describe from the WWF viewpoint.
NGOs are increasingly focussing on the paper sector. In North America a coalition of NGOs has come together and is focussing on paper, with fine/office paper and tissue as two key sectors. In Europe NGOs are now also increasing their activity and beginning to be coordinated in their approaches. Of specific note are the activities of Greenpeace and their focus on Old Growth Forests.
A second driver has been the continued growth in the demand for certified paper, and specifically FSC certified paper. The role of the WWF Global Forest and Trade Network (GFTN) here is pivotal, as increasing numbers of significant paper users which are also GFTN members are committed to sourcing from credibly certified sources.
A third driver is a desire by the larger producers to resolve the conflict over certification in order to be able to move forward onto other environmental issues. The industry has some good environmental credentials which it could use to improve its image, but has been stuck in the debate about "which certification scheme". It needs to resolve this in order to move on. At the same time there is now widespread acknowledgement that past attempts to achieve mutual recognition have been unsuccessful. The emphasis of the debate has as a consequence been shifting to the definition of "thresholds of legitimacy". This demands that different stakeholders define their value system and clearly state
their level of acceptability. This subtle shift has led to several producers such as UPM recently stating their intention to carry out trials of both FSC and PEFC in Finland, Canada and the UK. It is to be hoped that the important learning from this will guide a strategic shift in the approach of the company towards FSC certification. UPM are not alone. Mondi, through their Neusiedler subsidiary are supporting FSC certification in their countries of operation, and various other companies who could produce significant quantities of paper, and pulp suitable for fine paper are known to be preparing for FSC certification.
Increasing availability of supplies coinciding with increasing demand will likely provide a new momentum to increase the importance of FSC certified paper. Improved information exchange will be needed, but is starting to happen. For some time there has been a discontinuity in information with suppliers telling us that there is "no demand" for FSC paper, whilst buyers tell us there is "no supply". The new FSC Paper Forum and new work by the WWF GFTN will better connect suppliers and buyers and improve the supply chains.
Duncan PollardFSC Paper ForumFSC International is developing a FSC Global Paper Forum, gathering global players in the pulp and paper industry who are committed to FSC. The Forum is anticipated to become an annual event and the inaugural Forum is planned to take place in Bonn on 9 September. This will be the first opportunity for pulp and paper companies, participating or interested in the FSC system on an international scale, to meet as a group. It is envisaged that the agenda will include sourcing and marketing FSC products; current developments with FSC policies and standards; relationships with recycling programs; and stakeholder expectations of the pulp and paper industry.
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It will address perspectives from major customers for FSC products as well as environmental groups. It will also be an opportunity for participants in the FSC system to network and share experiences. For more information contact Michael Spencer, FSC International ([email protected]) or [email protected].
Critical Paper Report ReleasedThe Initiative 2000plus, a group of German Environmental organisations and consumer protection organisations have published their Critical Paper Report 2004 which highlights the enormous amount of paper consumption in Germany - 230 kilogram per inhabitant - and the environmental and social questions arising from this high consumption level. The use of recycled paper and FSC paper are highlighted as key elements on the search for solutions. Source: FSC-Newsletter - Ausgabe 2004/12
A list for German sources of FSC paper can be accessed on http://www.fsc-deutschland.de/docs/service/prod/Paperoverview_deu.pdf
For a comprehensive list of FSC-certified producers and wholesalers of office and publication paper as well as printers in Europe for to www.panda.org/forestandtrade;
Mitsubishi Corporation to Cease Buying Tasmanian WoodchipsThe Japanese multinational Mitsubishi Corporation, an importer of Tasmanian woodchip who trade with Gunns Ltd, have replied to a letter from Greenpeace Japan and the Wilderness Society, stating they will cease buying woodchips from Tasmania's ancient forests and make a transition to woodchips sourced from plantations and second growth forests as soon as possible. Mitsubishi Corporation also state they will prioritise Forest Stewardship Council (FSC)
certification in their forest product operations, where practical. Greenpeace Campaigns Manager Danny Kennedy said, “We believe this is a positive first step away from association with ancient forest destruction." Greenpeace has been contacting Japanese paper companies Nippon Paper Industries, Mitsubishi Paper Mills and Oji Paper, asking them to stop buying woodchips sourced from Tasmania's ancient forests and instead look to plantations such as those certified by the FSC.
Source: Press release Greenpeace, 18 May 2004
Focus on Responsible Investment and CSR
NGOs Warn Investors About Risks of a Planned Indonesian Pulp Mill
On June 2 2004 more than 30 NGOs sent an open letter to actors of forestry, pulp&paper and banking sectors in Europe, calling on them not to support the planned pulp mill in the province of South Kalimantan Indonesia, a project of Union Fibber Systems Ltd (UFS). The NGOs emphasise the huge overcapacity in the Indonesian Pulp industry and the fact that 75 - 80% of wood used in the Indonesian pulp industry originates from natural forests, with a large part very likely from illegal sources. The NGOs point out that despite claims by the mill to avoid deforestation through plantations there are not enough plantations currently in place to feed the planned 600,000 tonnes/year pulp mill and that plantations establishment is too slow to be able to do so in the future. “Without sustainable plantations established before the mill is started to construct there is no reason to believe that the project would be on a sustainable basis”, the open letter states.
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South Kalimantan has already lost most of its forests and the wood procurement of the planned mill will have severe effects on the remaining natural forests. “In this situation building a new pulp mill cannot be justified. It cannot be justified from the national level point of view, with problems related to deforestation, overcapacity, illegal logging and land tenure unsolved. Nor is it acceptable in the local and provincial point of view, with land conflicts, corruption, criminal companies and deficit of natural forests and plantations present. We urge you to make sure for your part that this project does not materialise”.
Source: Open letter June 2 2004 signed by more than 30 NGOs, including Environmental Defense, FERN, Finnish Association for Nature Conservation, Forest Ethics, Friends of the Earth, Forests Monitor, Rainforest Foundation, Robin Wood, Swedish Society for Nature Conservation and a number of international NGOs as well as NGOs from the Asia Pacific Region. Access the open letter on www.fern.org
Pulp Mill in Estonia – How Safe is This Investment?Austria's Heinzel AG, Estonia´s Larvik Cell, and the European Bank for Reconstruction and Development recently joined forces to build a 140,000 tonne/yr bleached chemi-thermomechanical pulp mill in Estonia. The three partners will each own one third of Estonian Cell, the firm that will manage the plant. This investment by EBRD is the second largest Foreign Direct Investment (FDI) to Estonia ever.The Austrian group will sell the facility's output for the first 10 years. They will cover the Euro 153 million investment via equity and credit. More than a half of the project volume will be financed by Austria's Raiffeisen Zentralbank.
In the lead-up to the project development the investors were forced,through a court case by the NGO Estonian Fund for Nature,to switch
50% of their raw material sourcing to FSC. The court settlement also included commitments on wastewater treatment and monitoring. “If companies listened to environmental concerns early on, the costs - including time and energy - would be much lower for everybody involved”, said Toomas Trapido from the Estonian Fund for Nature.
“We strongly recommend that anyone who plans to invest in operations that impact forests to refer to our investment guidelines and to integrate the suggested safeguards into their due diligence processes”, said Christine Carey, Consultant for the World Bank/WWF Alliance. The World Bank/WWF Alliance in 2003 put together investment safeguards specific to the forest sector to help investors assess risks but also opportunities of a project caused by environmental factors.
“We have seen major risks for project developers, financiers and involved governments in a similar investment project, the Baltic Pulp Mill Project in Latvia last year”, said Carey. “This was mainly due to not acknowledging the effect of environmental and social circumstances for stable wood supply and wood pricing i.e. the cumulative effect of data deficits, changes and restrictions on forest use through political developments on national and international levels, as well as the economic, social and ecological effects of illegal logging. There are important lessons to learn from Baltic Pulp Mill Projects.”
Sources: World Bank/ WWF Alliance, Assessing Risks in Greenfield Investments in the Pulp and Paper Sector. Case Study: Baltic Pulp Mill Project, Latvia October 2003; Pulp and Paper International June 2004; Access the World Bank/ WWF Alliance Investment Guidelines on http://www.panda.org/downloads/forests/wwfinvestmentpol7oct03final.pdf; Estonian Fund for Nature July 2004
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German Export Credit Agency Before Court 15 June saw the launch of a potentially significant legal case against the German Government. Initiated by two NGOs – Germanwatch and Friends of the Earth Germany (BUND) – the case challenges the Federal Ministry of Economics and Labour (BMWA) to disclose information on the contribution to climate change of international projects backed by the German Export Credit Agency (ECA), Hermes AG. Hermes is a public agency providing government-backed guarantees and investment insurance to German corporations seeking to do business in developing countries or emerging markets that are considered too risky (either politically and/or economically) for conventional corporate financing. In its bid to secure export opportunities for German companies, Hermes provides billions of dollars of funding for energy, mining and transport projects around the world. Given the greenhouse gas-intensive nature of many of these projects, Germanwatch and BUND are campaigning to assess the impact of German exports on climate change. To this end they have requested information on all Hermes-backed projects on energy production dating back to 1997, when the Kyoto Protocol was adopted. The NGOs note that under the Environmental Information Act of the Federal Republic of Germany, Hermes and the Government are obliged – yet so far refuse – to disclose such information .Source: EU Forest Watch July 2004, Publication by FERN; www.germanwatch.org/rio/herbpe04.pdf
EIB Under Scrutiny by NGOsOn Friday 21 May, 170 NGO organisations sent an open letter to the President of the European Investment Bank (EIB) protesting against EIBs misleading claims to have
engaged in dialogue with NGOs about the financing of Brazil's Veracel cellulose pulp mill project. The NGOs also highlighted the serious social and environmental problems facilitated by the financing of this project through the EIB. Early June NGOs launched a joint NGO platform "Public Funds for Public Benefits" to call for a reform of the European Investment Bank. In this platform civil society groups invited concerned citizens and European policy-makers to join efforts to make the EIB an institution that supports people and the environment; an institution that is fully transparent and accountable to the public. The new platform has been endorsed by some 60 NGO organisations worldwide. Source: For the full text of the platform go to www.fern.org; Friends of the Earth International May 21 http://www.foei.org/media/2004/0521openletter.html
“BBQ The Banks” – NGO Campaign in the US
The Rainforest Action Network (RAN) launched its summertime "BBQ The Banks" campaign this week – to convince Wells Fargo and Goldman Sachs to stop funding environmentally destructive projects and companies. The NGO held a barbecue outside the headquarters of Wells Fargo in San Francisco, on the 152nd anniversary of the bank's opening. "Rather than adopting strong environmental policies that redirect investment away from climate change and forest destruction, Wells Fargo continues to drag its feet and avoid public scrutiny while pouring billions of dollars into companies and projects that are destroying the Earth's endangered ecosystems, fuelling climate chaos, and displacing indigenous peoples," said Ilyse Hogue, RAN's Global Finance campaign director. "We ask a simple question of Wells Fargo today: Will you
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exhibit visionary leadership in setting policies to confront the most pressing environmental issues of our time?" she added. The protests – planned throughout the summer for Wells Fargo along with Goldman Sachs and insurer John Hancock – aim to convince the companies to stop funding logging, oil production and other extractive industries in "endangered ecosystems" as well as "document carbon emissions associated with all investments and commit to reduce emissions over time".
RAN scored two victories earlier this year when both Citigroup and Bank of America adopted new climate change and environmental practices in January and May respectively. "Two of the world's largest banks have introduced environmental ethics and human rights into their bottom lines as a response to consumer demand," said Dan Firger, an organiser with RAN's Global Finance campaign. "It's up to Wells Fargo to determine which side of history it will be on."
Source: Rainforest Action Network July 16 2004 http://www.ran.org/news/newsitem.php?id=1044&area=home
Principles, Profits or Just PR – Equator Principles in ReviewOne year after the launch of the Equator Principles (EP), a bank-led initiative to establish common environmental and social standards for project finance, NGOs have released an assessment on the implementation and effectiveness of the Principles so far. A new BankTrack report, titled Principles, Profits, or Just PR? Triple P investments under the Equator Principles, examines whether the Principles have promoted a Triple P’ approach to investments, balancing People, Profit and Planet in a way that is
truly sustainable, or whether they are perhaps a mere PR effort. It concludes with several recommendations to restore a sense of good faith in the principles, notably the adoption of an independent accountability, seeking active stakeholder engagement in the implementation of the EPs, being transparent on investment decisions based on the EPs and providing leadership for the continuous improvement and implementation of the Principles. "This report, and the recommendations it contains, signals that NGOs still have some hope for the Principles, and that we want to see them work," said Michelle Chan-Fishel of BankTrack/Friends of the Earth US. "However, if the Equator banks continue to finance controversial deals, pursue an anti-environmental lobbying agenda and cloak themselves in secrecy and unaccountability, public confidence will be irretrievably lost." On July 1 a group of NGOs met with representatives from Equator Principles and agreed to establish a joint working group of Banks and NGOs to sort out a number of outstanding issues regarding the good faith implementation of the Equator Principles. Source: Banktracks June 2 2004 July 1 2004 http://www.banktrack.org./index.php?id=4;
No to China Bonds
Friends of the Earth and International Rivers Network have called on private banks not to participate in pending bond issues of the China Development Bank and the China Export Import Bank for a total of more than $2 billion. The groups argue that the bonds will finance environmentally destructive projects that banks would not be prepared to finance directly.Source: IRN / FoE media advisory, July 19, 2004International Rivers Network webpagehttp://www.banktrack.org./index.php?id=24
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News on FSC
Status Quo and Projection of FSC Certification in Eastern Europe
Current certification figures show that already more than 12 million hectares of forests are FSC certified in Central and Eastern Europe and Russia. This could increase significantly over the coming years. Already by 2005 a rough estimate of 80 Million cubic meters* of FSC certified wood could be available per annum. Wood based products imports from Eastern European countries and Russia to the EU in 2002 made up around 100 Million m3 of roundwood equivalents which shows the major opportunity on future FSC supplies from these countries. Good news for all those who want to switch their wood sourcing to FSC which supports the growth of responsible forest management worldwide
The table below shows current levels of FSC certification as well projections on FSC certification. Country FSC certified area in
hectares June 2004FSC certified percentage of the total forest area
Poland 6,18 Million 70%Croatia 1,98 Million 95%Latvia 1,68 Million 56%Russia Current: 1.39 Million
Projection for 2005+: 10 Million
Projection for 2005: 1%
Estonia 1,06 Million 50%Lithuania
432 528 21%
Hungary
52 074
Slovakia
43659
Romania
Current: 31 611
Projection for 2005: 4 Projection for
Million 2005: 60%Czech 10 441
Sources: WWF European Forest Programme analysisCurrent FSC figures from www.fsc.org June 2004; Projections: Company and Government commitments; WWF European Forest Programme June 2004. For projections on Russia go to http://www.panda.org/about_wwf/what_we_do/forests/news/news.cfm?uNewsID=11321; * m3 of wood available was calculated on a conservative estimate of 3 cubic meters per hectare; 2002 trade figurs extracted by the European Forest Programme from Eurostat data on wood based products converted to roundwood equivalentshttp://www.panda.org/about_wwf/where_we_work/europe/problems/illegal_logging/index.cfmTemperate and Boreal Forest Resources Assessment of the UN/ECE-FAO 2000 http://www.unece.org/trade/timber/fra/downloads/tbfra.zip
New FSC Certification Bodies and Continued ControlsThe FSC has signed a new accreditation contract with the French organization CBTA (Centre Technique du Bois et de l'Ameublement). After an 18 months evaluation process, CTBA is now accredited to carry out chain of custody certification worldwide bringing the number of FSC accredited certification bodies to 13.
A second organisation, the Italian Institute for Quality Certification (Certiquality), is now in a two months appeals period following a positive FSC Board accreditation decision. If no appeals are registered, FSC can sign an accreditation contract with Certiquality.
FSC accredited certification bodies are independent organisations that conduct FSC certification audits and issue FSC certificates based on compliance on the ground with the FSC principles, criteria and standards.
In addition to new accreditation processes the FSC Accreditation Business Unit is continuing its intensive surveillance audit programme of all FSC certification bodies to ensure the compliance of certification
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processes with FSC rules. In June 2004 this work included audits on ICILA in Ukraine, and IMO in Germany.Further information on FSC Accreditation is available at www.fsc.org/fsc/how_fsc_works/accreditation Contact: [email protected]
Source: FSC International June 2004
New FSC International webaddress: www.fsc.org
FSC 10th Anniversary and Annual Conference in SeptemberThe Forest Stewardship Council will celebrate its 10th Anniversary and Annual Conference from September 10th - 12th, 2004 in Bonn, Germany. Over the last 10 years, FSC has grown to become a global organization improving forest practices in 73 countries. FSC is looking to celebrate this milestone and build its strategy for the next 10 years. The anniversary celebration will be held on Friday, September 10th, 2004 and will be followed by a garden party in the evening. On Saturday, September 11th and Sunday, September 12th, the FSC Annual Conference will focus on the next decade in FSC's development. A series of side meetings will be held in the days prior to and after the formal celebration. For further information and questions please contact Bernd Bruhns by phone at +49228 3676661 or by email to: [email protected]. or visit www.fsc.org/anniversary.
Background and Facts
The Forest Stewardship Council is currently the only credible timber certification system supported by WWF. The FSC label makes it possible for buyers to choose forest products that come from forests managed to the highest environmental and social standards and from legal sources. As global system FSC offers market incentives for improving forest management around the world.Events
10 – 12 September 2004 10th Anniversary Conference of FSC / FSC Annual Conference
FSC International Center in Bonn, Germany.
Anniversary celebration - Friday, September 10, 2004. September 11, 2004 and Sunday, September 12, 2004 the FSC Annual Conference - discussing the next decade in FSC’s development. For registration and more details go to www.fscoax.org or contact Bernd Bruhns by phone at +49 228 367 66 -61 or by sending an email to: [email protected].
27th – 29th October 2004 Adam Smith Conferences - 9th annual conference on Pulp & Paper in Russia and the CIS, Vienna
http://www.asi-conferences.com/html/conference_html/pulp/pulp_oct04.html
11-12th November Triple Bottom Line Investment Conference
The worlds largest conference on investments that provides a financial, social and environmental return (Triple Bottom Line Investing) is taking place in Amsterdam. The conference covers the fields of public equity, private equity, debt financing, microfinancing, bonds and discusses the risks and opportunities of Triple Bottom Line Investing as well as the drivers for it. Research will be presented on
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Socially Responsible Investment (SRI) and Fund Performance and measurements on the social and environmental Return on Investment (ROI) for financial capital. Managers from world's leading sustainable private equity funds will be discussing their experiences and current developments. Some of the companies represented are: ABNAmro, Global Environment Fund, IFC, WestLB, Norwegian Petroleum Fund, French Pension Scheme, Nordea, EU DG Environment, Lombard Odier, Calvert, Bank Sarassin, Insight Investments, Asahi Life Asset Management, Dexia, Robeco, Hypovereinsbank, Goldman Sachs Asset Management, Allizanz, BNP Paribas Asset Management, MunichRe, Mercer Investment Consultants.https://www.tbli.org/index.php?referer_code=asria For more information or to order the brochure, e-mail [email protected] or call 31 (0)20 4286752.
Key Statistics
Status: June 2004
Total area of FSC certified forests: 43.241.416 hectares
Number of countries with FSC forests: 62
FM certificates: 625
COC certificates: 3136
For regional maps and data on certified areas in Europe, Africa, Asia – Pacific, Latin America and North America go to http://www.certified-forests.org
Programme Information
For Information on the Forest Stewardship Council (FSC) www.fscoax.org
Global Forest And Trade Network www.panda.org/forestandtrade
Forests For Life Programme, WWF www.panda.org/forests4life; www.panda.org/forests/goodwood
Certification Basics
An Introduction to Forest Certification: (2001) http://www.proforest.net/objects/introtocert.pdf
NGO Positions on Certification Systems
Behind the logo (2001) -In-depth report of the four biggest forest certification schemes (CSA, FSC, PEFC & SFI) analyses the strengths and weaknesses of each scheme and aims to provide companies, governments and NGOs with the facts needed for informed decision making.
Follow up report: Footprints in the Forest (2004) – In depth report on Canadian Standard’s Association (CSA), Forest Stewardship Council (FSC), Programme for the Endorsement of Forest Certification (PEFC), Sustainable Forestry Initiative (SFI), Australian Forestry Standard (AFS), Sistema Brazileiro de Certificação Florestal (CERFLOR), Certificación Forestal (Certfor) and the Malaysian Timber Certification Council (MTCC). http://www.fern.org/
Make Your Own Judgement About Certification SchemesAssessing Forest Certification: A Practical Guide : (2002) http://www.proforest.net/objects/Assessing%20Forest%20Certification/assessing%20schemes.pdf
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Certification Assistance
All aspects of certification:
Where to Sell and Buy Certified TimberGlobal search for FSC certified timber and products: www.certifiedwood.org : This database allows you to search by type of timber and timber species, by product type and supply chain position and country.
On www.fsc-info.org . you can search for FSC certified species all over the world. Search mechanism include species ( open query) , tenure and country.
Global search for FSC Forest Management and Chain of Custody certificate holders www.fsc-info.org .
On www.certifiedwood.org you can confirm certification status of a company
Global search for FSC certified forests: www.certifiedwood.org The advantage of this certified forest list is the contact details like telephone numbers are included.
Most up to date information on which forests and which companies are certified can be found on the main FSC International website www.fscoax.org - however here information is mainly aimed at providing an overview rather than to help establish contact.
Check approved FSC certifiers on www.fscoax.org
Assistance With Group CertificationA Practical Guide to Developing a Group Scheme for FSC-Accredited Certification of Forests: Final Draft (2001) http://www.proforest.net/objects/gscheme2.pdf
Responsible Investment
For Investment guidelines by the Worldbank/ WWF Alliance go to http://www.panda.org/downloads/forests/wwfinvestmentpol7oct03final.pdf
Learning From Others 500 companies are part of the WWF co-ordinated Global Forest and Trade Network (GFTN), committed to responsible forest management and trade. They represent a wide range of actors including forest owners, timber processors, construction companies, retailers, investment agencies and local authorities. Members vary from small family-owned businesses to world scale leading companies such as IKEA and the Home Depot. They are committed to gradually producing, trading and/or sourcing independently certified forest products. Find more information about GFTN at: http://www.panda.org/forestandtrade/
To learn from the experiences of other companies who are already part of the network get in touch with one of the forest and trade network co-ordinators. Contact details can be found on http://www.panda.org/forestandtrade/
Multiple Solutions for the World´s Forests by WWF WWF works on forest conservation through a multiplicity of approaches and strategies which are pursued together with regional and global partners: Credible Forest Certification, High Conservation Value Forests, combating illegal logging and forest crime, preventing forest fires, restoring damaged and degraded forests and forest protection. WWF's Forests for Life Programme has developed position papers on global forest issues which are available on http://www.panda.org/about_wwf/what_we_do/forests/what_we_do/policy_events/index.cfm
The World Bank/ WWF Alliance was formed in 1998 and draws on the comparative institutional strengths of the partner institutions:
the Bank's access to policy dialogue, convening power, analytical capacity and financing operations,
WWF's strong field presence, private sector partnerships, public trust and forest conservation expertise.
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By combining the strengths of the Bank and WWF, and their partners, the Alliance is uniquely positioned to effect changes in forest policy and practices, to help safeguard biodiversity, and alleviate poverty. With forests being depleted globally at a rate of 28 hectares per minute, the stakes are high. Urgent, significant and coordinated actions on a global scale are needed to arrest the precipitous and relentless declines in forest cover, the concomitant loss of biodiversity, and the effects on the livelihoods of forest-dependent people.
For more information on the World Bank/ WWF Alliance go to www.forest-alliance.org
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