Forest certification Corporate Social Responsibility 08 02 2017

Forest certification Corporate Social Responsibility 08. 02. 2017

Forest Stewardship Council Российский национальный офис Origin of wood • Illegal Logging 10 to 20% Damage to: economy, indangered species ecosystems, local communities TM FSC, A. C. All rights reserved Secretariat code FSC-SECR-0142 Презентация 19 March 2018 · 2

Forest Stewardship Council Origin of wood is important TM FSC, A. C. All rights

Forest Stewardship Council Российский национальный офис Voluntary forest ceretification Forest certification schemes: FSC, PEFC, SFI, CSA и др. TM FSC, A. C. All rights reserved Secretariat code FSC-SECR-0142 Презентация 19 March 2018 · 4

Types of FSC certificates • FSC forest management • FSC chain of custody-FSC/Co. C • FSC mixed (the most controversial) • Controlled wood- legal and not from HCVF, not violating rights of indigenous people

Forest Stewardship Council Retail Products Factory Forest FSC 0 -COC FSC 0 -FM TM

FSC in the World (February 2017) • Total certified area: 194, 667, 218 ha • • No. countries: 81 • 31, 788 Co. C • 1, 471 FM/Co. C

Forest Stewardship Council (FSC) • International non-governmental organization with international membership (organizations and individuals, three chambers: environmental, social, economic) • International certification system in forest sector • Legislative body – General Assembly – 1 time in 3 years. • Executive body – International FSC center (Germany, Bonn) and regional offices, director general Kim Karstenson, FSC office in Moscow-director Andrey Ptichnikov • Regional and national offices: Latin America, Africa, South. West Asia, Russia, US, Canada, China • Programs: development of standards, accreditation (ASI), licensing of the trade mark

National offices • Link to the local • Develop national standards (indicators and verifiers) • 3 chambers-resemble the international • Hard to accredit both the national initiatives and the standards • If the standards are not accredited– certification bodies (auditors) themselves develop indicators

FSC-FM • 10 principles and 56 criteria on sustainable forest management—for the whole World • Indicators and verifiers adjust to the local context • New principles and criteria were voted by the membership in January 2012 • 2013 -2014 -development of generic indicators • 2015 -2016 development of national indicators • 2017 -transition to the new standards • Major difficulties in Russia: • Principle 9– High conservation value forests • Principle 3 –Related to indigenous peoples rights • Principle 4 --Workers rights and local communities

Forest Stewardship Council FSC structure FSC International Center ASI-Accreditation Services International FSC Europe RO FSC Canada FSC Russia FSC U. S. A. FSC A. C. Oaxaca, Mexico FSC China FSC Asia RO SO Asia FSC Africa RO FSC Latin America Central Africa RO Ø National offices in 38 countries + 10 candidates Ø 16 certification bodies + 7 candidates Ø 26 National Standards + 7 applications from 21 countries Ø 16 global standards developed by certification bodies Data: 02. 11. 2006

Questions to the groups: • 1. What is the difference between national legislation and private regulation, law made by civil society (FSC) • 2. What if there are contradictions between FSC and national law? • 3. How FSC and national Russian legislation interacts in cases where there are no contradictions

Dynamics of FSC-FM Russia

Dynamics of Co. C certificate holders in Russia

Dynamics of both FSC-FM and FSC-Co. C

FSC certification in Russian regions

Companies with FSC certificate , in the process

Forest Stewardship Council in Russian National Office Valid FSC FM-certificates Russia as November 1 2010 TM FSC, A. C. All rights reserved Secretariat code FSC-SECR-0142 Presentation 19 March 2018 · 20

FSC certified forests in Russia (February 2017) • 42, 1 mln ha are certified, • 230 FM/COC (7 suspended) • Co. C - 639 (6 suspended) • Total: 869 (13 suspended)

FSC and Russian markets-new developments • WWF suggested President Medvedev to start FSC governmental purchasing program • Rosleskhoz agree to start FSC governmental purchasing program (does not mean that it will really start ) • FSC office in Moscow started a campaign to promote FSC logo in Russia

Civil society involvement in Russia • International NGOs (WWF, Greenpeace, etc) • • • Scientists Association of indigenous small populations of the North Forest clubs Regional NGOs: SPOK, BROCK Active people in libraries, schools, clubs Soviet: Society of hunters and fishers • Science-NGO controversies

Hard and controversial issues in FSC • HCV-high conservation value • Motion 65—hard in Russia, Canada— preservation of old growth (virgin) forests —General assembly in Seville in 2014, in Vancouver, Canada 2017 • Indigenous peoples • Local communities

Issues of adaptation of HCV in Russia • The concept was developed outside of Russia, yet Russia has its own nature preservation tradition • The concept of HCV is absent in Russian legislation. In certain points Russian legislation is progressive (nature reserves-Zapovedniks), but in other it is not • Russia ratified the convention on Biodiversity, but did not developed a normative basis for biodiversity conservation in areas leased to the logging companies • Russia has a huge territory and contexts are different, forests are also different, therefore, it is hard to develop methodology for designating HCV • WWF, FSC national initiative, FSC national office- special attention to Principle 9 in FSC certification

Issues with old growth forests • In Far East – 70 -80% of the lease • Resistance from companies in Far East • State-Company alliance in Far East in 2011 -2012 against the FSC • Roundtables around Russia on Motion 65

Social value forests in Russia (HCV -5 -6) • HCV-5 places that are necessary for wellbeing of local population • HVC-6 places that are important culturally and traditionally • In Russia HCV-5 and HCV-6 are not separated • Several stages of designation: a) requests to archeologists, ethnographic museums, research institutions • b) consultations with local museums, school study circles, local libraries • C) consultations with local communities • D) mapping, making maps accessible to public

Places for mushrooms and berries collection. • Are a significant source of income for local population • In Komi Republic- special logging regimes • In Karelia- more berries on the 3 years old logging plots

Hunting grounds For indigenous people even if they live not on the leased territory Hunting cabin Hunting societies can have the lease at the same territory as the logging company Independent local hunters Hunting tourism

HCV-5 -6 in Russia • Conflicts usually occur only with hunting grounds of indigenous people • Not all companies organize consultations with local activists and communities • Many difficulties with mapping and making maps accessible to public (scale, geographical maps differ from logging maps, expensive)

Indigenous people in Russia • Recognized by Russian legislation: Indigenous small populations of the North (less then 50000 people) • Recognized by FSC- any group that declare itself as indigenous that maintain traditional natural resource use • Pomor – different ethnic groups • Old believers, Komi-Udorachi

Indigenous people and HCVF • North West • Issues related with recognition of the groups • Internal problems within communities • Pomor people – inconsistent involvement in FSC framework • Far East • Terney Les– udegey community- recognized • Agreement- compensation for destruction of hunting grounds • Severe internal problems within the community – paternalistic- confronting relationship

Cases in North Western Russia • FSC certification of PLO-Onegales, Arghangelsk region (group certification) • Stora Enso-now only in Karelia, before in many places • FSC certification of Segezha PPM, Republic of Karelia • FSC Certification Mondi Business Paper—Komi Republic

Transnational FSC Internation al TNC Europe Buyers CB ASI NGOs CB TNC In Russian ENV SOC FSC certified territory Place FSC Russi a

TNC headquarters • Innovative projects, experimenting, modeling • Stora Enso: Pscov Model Forest, Tikhvin project • Mondy Business Paper: Stakeholder Engagement Assessment Tool (SEAT) assessment, support to Model Forest Preluzie • Investlesprom: Segezha Pine, Model Forest Segozerie

TNC-NGO partnerships • Stora Enso: WWF, CISR (a little bit) • Mondy Business Paper: WWF (a little bit), Silver Taiga Foundation • Investlesprom: Transparent World, SPOK, CISR • Partnerships with NGOs create another channel for institutionalization of new practices

Innovations coming from FSC • Environmental, social, economic=instrument for sustainable development • Production (harvesting practices) as an added value of the product • Local democratic development: consultations with local communities and indigenous people • Communities designate social value forests (HCVF 5 -6), get involved in forest management • Communities become stakeholders • Workers safety

Transformation of CSR • Soviet lespromchoz—all community infrastructure • FSC driven CSR, however, TNCs are not acting as substitute for government as in Soviet times • TNC– obligations included in leasing agreements, e-g. fire wood supply to social institutions, sawn materials, building roads, maintaining roads, educational programs (ecological centers, libraries), small grant programs

Major impacts • • In all cases: Moratorium on old growth (virgin forests)-HCVF-2 • • • Salaries paid on time • • • Companies bought safety equipment for workers • Consultations with stakeholders, especially environmental NGOs • • • In certain cases: Environmental planning, companies designated HCVF of all 6 categories (Stora Enso Segesha PPM, Priluzie) Key biotopes (Segezha PPM) Improved workers safety (Stora Enso) Gasoline leaks prevention Less garbage Consultations with local communities and indigenous people Support for community infrastructure (leasing agreement, small grants) Designation of social value forests (HCVF-5 -6)[Stora-Enso, Segezha. PPM)

Why certification cases differ so much? • A) company governance and vertical discipline (workers safety, implementation on the ground of company policies and commitments) [Stora-Enso] • B) company ability to manage contradictions between the Russian legislation and the FSC (depends on the region, on informal relationships)[ the worst in Karelia] • B) interpretation of the standards by the certification body, composition of the team of certifiers (Nepcon stronger in environmental issues, while SGS in social) • C) NGOs involved (environmental or social) • D) experts and their background

Conclusion • TNC, NGOs and FSC became significant governing agents in rural forested areas • TNC modernization and restructuring creates significant stress for local communities, separation of the company (subsidiary of the holding) from community • FSC is softening the process of modernization and restructuring, fosters CSR toward local community, develops democratic governance