Forest Stewardship Council FSC — Changing world forestry

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Forest Stewardship Council FSC - Changing world forestry Roberto S. Waack Chairman of the Board roberto@amatabrasil. com. br ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 1

Forest Stewardship Council FSC’s history Founded in 1993 in the wake of the Rio-1992 by concerned business representatives, social groups and environmental organizations ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 3

Forest Stewardship Council FSC was established to promote environmentally appropriate, socially beneficial and economically viable management of the world's forests ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 4

Forest Stewardship Council FSC does so through Setting standards that reflect agreed principles for responsible forest management Accreditation/certification system that monitors compliance with FSC standards A product labelling system that rewards responsible forest managers Together: A market driven mechanism to improve forest management worldwide ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 5

Forest Stewardship Council FSC certification • Forest management – S/Env/Ec certification – FSC Principles and Criteria • Chain of Custody (Co. C) – traceability ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 6

Forest Stewardship Council FSC Principles and Criteria • International forest management standard • Applicable to all types of forests worldwide • 10 Principles and 56 Criteria • Consideration of scale and intensity • Local indicators ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 7

Forest Stewardship Council Principle 1 – Legislation • Applicable laws • International conventions • Payment of fees and taxes • Commitment to the FSC Principles and Criteria ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 8

Forest Stewardship Council Principle 2 – Land tenure • Long term forest tenure • Community rights • Resolution of disputes ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 9

Forest Stewardship Council Principle 3 – Indigenous Peoples • Free and informed consent • Forest management and IP resources • Protection of special sites • Traditional knowledge ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 10

Forest Stewardship Council Principle 4 – Communities and Workers • Social impacts and planning • Local employment • Health and safety • ILO Core Conventions • Dispute resolution ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 11

Forest Stewardship Council Principle 5 – Economic benefits • Long term viability • Efficiency and local processing • Diversification • Other services • Sustainable harvest rate ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 12

Forest Stewardship Council Principle 6 – Environmental impact • Impact assessment • Protection of rare or endangered species • Maintenance of ecological functions – Regeneration – Biodiversity – Natural cycles • Set aside areas ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 13

Forest Stewardship Council Principle 6 – Environmental impact • Soil erosion and water quality • Use of pesticides • No genetically modified organisms • Waste disposal • Biological control and exotic species • Conversion to other land uses ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 14

Forest Stewardship Council Principle 7 – Planning • Clear and detailed management plan • Periodic revision • Training • Public summary ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 15

Forest Stewardship Council Principle 8 – Monitoring and Evaluation • Long term monitoring program – – Forest growth, forest health Fauna and flora Environmental and social impacts Productivity, costs and efficiency • Production control • Adoption of monitoring results • Public summary ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 16

Forest Stewardship Council Principle 9 – High value areas • High Conservation Value Forests – Social, environmental or economic • Mapping – Stakeholder consultation • Measures to maintain or enhance • Public summary • Annual monitoring ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 17

Forest Stewardship Council Principle 10 – Plantations • Reduce pressure on natural forests • Promote conservation and restoration of natural forests • Diversity • Soil fertility • Annual monitoring • Conversion clause – November 1994 ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 18

Forest Stewardship Council Top Countries – FSC forests (ha) • Canada • Russia March 30, 2009 • United States • Sweden • Poland • Brazil ® FSC, A. C. All rights reserved FSC-SECR-0002 26, 596, 498 18, 957, 686 11, 030, 495 9, 713, 520 6, 364, 926 5, 479, 531 Presentation March 30, 2009 · 22

Forest Stewardship Council Top Countries - Co. C certificates • United States • United Kingdom • Japan • Germany • Canada • The Netherlands • China ® FSC, A. C. All rights reserved FSC-SECR-0002 2, 745 1, 629 897 839 684 669 662 Presentation March 30, 2009 · 28

Forest Stewardship Council Growth 2007* Forest Management (ha) Chain of Custody (#) Total certificates (#) 2008** 93, 918, 950 105, 450, 874 7, 683 11, 111 8, 596 12, 054 Growth (yr) 17% 63% 57% * December 4, 2007 ** October 24, 2008 ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 29

Forest Stewardship Council FSC Chain of Custody # Cert 2005 4, 370 2008 11, 111 Growth 154% • Chain of custody certificates in 91 countries • Strong influence from demand in North America, Western Europe and China • Printing and publishing sectors ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 30

April 2009 Stats Month YYYY

Growth of FM and FM/COC (ha)

Growth of FM and FM/COC

Growth Co. C

Growth Co. C - continent

Monthly Growth %

Growth # Co. C

Growth % Co. C

Area by CB CBFullname Total Smartwood 53, 204, 818 QUALIFOR, SGS South Africa 19, 694, 601 Scientific Certification Services 10, 431, 542 GFA Consulting 8, 719, 692 Soil Association 6, 839, 058 Bureau Veritas 5, 361, 084 Det Norske Veritas 3, 471, 466 KPMG 1, 831, 964 Europartner 1, 811, 154 Control Union 808, 910 QMI-SAI 729, 104 ICILA 317, 392 Institut für Marktökologie 229, 735 Swiss Association for Quality and Management Systems Grand Total 18, 201 113, 468, 723

Forest Stewardship Council (FSC) A. C. Calle Margarita Maza de Juárez 422 Colonia Centro Oaxaca CP 68000 Mexico T +52 951 502 6533 F +52 951 502 6594 fsc@fsc. org www. fsc. org

Forest Stewardship Council FSC Global Strategy • GOAL 1: • GOAL 2: • GOAL 3: • GOAL 4: • GOAL 5: ® FSC, A. C. All rights reserved FSC-SECR-0002 Leadership in globally responsible forest management Equitable access to its systems Integrity and Credibility of the FSC system Business value Strong network to ensure delivery Presentation March 30, 2009 · 42

Forest Stewardship Council Drivers • Private procurement policies – – Retailers, publishers, banks Economic benefits Corporate image Stakeholder pressure • Growing consumer awareness ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 44

Forest Stewardship Council Brand recognition In 2007, 56% of the Swiss population recognized the FSC label when prompted. Unprompted, i. e. spontaneous recognition reached 21%. The large majority of people (65%) recognized the label from in-store advertising. Source: FSC Switzerland Prompted recognition in the Netherlands rose from 67% in 2007 to 69% in 2008. Unprompted recognition is at 21%. The FSC trademark is fourth in a ranking of the Netherlands’ best-known quality assurance trademarks. Source: FSC Netherlands In Denmark, there was a level of 33% unprompted label recognition in 2008. Source: FSC Denmark A survey commissioned by FSC UK in 2009 found that one person in four (24%) has seen the Forest Stewardship Council’s tick-tree logo. Once the scheme was explained, 54% of those questioned stated that they would probably choose FSC Source: FSC UK products in the future. ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 49

Forest Stewardship Council 2008 Survey • Reason for FSC certification – Market leadership: 91% – Client request: 74% • Benefit of FSC certification – Improved reputation: 82% – Access to new clients: 74% – Access to new markets: 66% ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 51

Forest Stewardship Council 2008 Survey • Importance in the last 24 months – Increased: 60% – Stayed the same: 24% – Decreased: 7% • FSC provides business value: 78% – Client retention ® FSC, A. C. All rights reserved FSC-SECR-0002 Presentation March 30, 2009 · 52

FOREST MANAGEMENT – AREA DIVISION Sustainable Forest Management Plan ‘Plano de Manejo Florestal Sustentável – PMFS’ • 25 or 30 APUs (Annual Production Unit) • The forest grown m³ per year • Harvest is 30 m³ per year • After 30 years the forest replaces the harvested biomass • Every year one APU is explored and afterwards is closed • After 30 years the APU can be explored again

FOREST MANAGEMENT – APU & PARCELS An APU is sub divided in blocks of 4. 000 by 4. 000 meters and each block is again sub-divided in areas of 250 by 400 meters, called ‘Parcels’ MY 1 – Year 1 Operational aareas 873, 53 ha Camp site / Working area 0, 50 ha Operational restriction area 375, 54 ha Permanent Preservation N Parcels limit N Blocks limits N Inventory – permanent parcels N Water courses N Further limits N Roads 151, 58 ha Escale Date 1: 40. 000 05/2001

FOREST MANAGEMENT Every and each parcel has its operational and permanent preservation areas. Every tree with significant economic value and diameter over 40 cm are located on the map, with information over specie, volume and shift quality MU 1 – Year 1 G 12 Quadrant - 2217 Sustainable Forest Management Plan N Main roads N Parcels N Rivers Red Angelin Scale Date 1: 1. 000 05/2001

FOREST MANAGEMENT Drag trails are defined, always aiming the minimum impact Sustainable Forest Management Plan Operational Areas Permanent preservation Inappropriate areas Riverbank Roads and Patios Permanent Parcel . DAP - 45 Scale Date 1: 10. 000 07/2002

FOREST MANAGEMENT The log stock yard in the forest are defined MU 1 – Year 1 G 12 Quadrant - 2217 Sustainable Forest Management Plan N Main roads N Parcels N Rivers Red Angelin Escale Date 1: 1. 000 05/2001