Forest Certification Schemes

Why do they exist and which schemes are considered credible?

Toilet seats, furniture, picture frames, kitchen utensils, paper, paint brushes….many common household and office items are often made from wood. Do we ever consider where this wood originates? Unfortunately illegal logging is still a practice that is carried out in many countries and results not only in environmental problems but also deprives governments of billions of dollars in revenue. Illegal logging undermines the rule of law, fosters corruption and distorts world markets. How can we prevent this? In the absence of international law banning the practice, we are left to rely on voluntary timber certification standards. How do we as the consumer know which standard to trust?  Which timber certification schemes are considered credible and why?

Where does our timber come from?

It is estimated that between 8-10% of global wood production is illegal, although the uncertainty of these estimates is acknowledged.[i]  If this statement is accurate and the number of wood and paper-based products that we consume each year is considered, it is likely that at some point, consumers have unintentionally supported the illegal timber trade. Illegal logging tends to occur in countries which suffer from weak governance and which are more prone to corruption. It is estimated that up to 80% of logging in Indonesia and the Brazilian Amazon and 50% in Cameroon is illegal[ii]. As indicated above there is much uncertainty around the statistics associated with illegal logging due to the corrupt and secretive nature of the operations that take place. It is therefore often hard, if not impossible, to trace the origin of the wood and to ensure that it has been acquired from a legal source. This particularly applies to the paper making industry, as pulp mills draw their wood from many different sources. Unfortunately, there are currently no internationally recognised treaties or regulations ensuring the legality of the wood we buy; however, it is possible to trace the supply chain back to the forest of origin. This is the idea behind many schemes such as the Forest Stewardship Council (FSC). Most forest certification schemes include a chain of custody standard that covers most, if not all, levels in the supply chain.

What are the environmental and socio-economic impacts of illegal logging?

Illegal logging results in a number of environmental, social and economic impacts. In many cases activities associated with illegal logging are implemented without any concern for the environment: pollution of local water resources can take place; forest fires and trees are cut down and not replanted resulting in soil erosion; loss of biodiversity; water pollution; forest fires; flash floods; and landslides. On a larger scale, any reduction in forest cover and vegetation has the impact of aggravating the problem of climate change. An estimated 24% of global carbon dioxide emissions are attributable to land-use changes and forestry activities.[iii] There are also socio-economic issues associated with illegal logging.  For example, millions of people are dependent on natural forests for their livelihoods and subsistence; illegal logging can result in the depletion of these resources.  As it is unregulated, illegal logging can also result in violations of workers’ rights as well as the basic rights of local indigenous people.  In addition, an influx of illegally logged timber onto the global market causes the market to distort and undermines the work of legal operators. Illegal activities usually manage to evade tax or duties and are believed to depress world timber prices by as much as 16%.[iv]

Forest certification schemes, how do they work and which ones are considered credible?

Despite the increasing attention that illegal logging has received from a number of international forums in recent years [such as the Convention on International Trade in Endangered Species (CITES) and the UN Food and Agricultural organization (FAO)], there is still a lack of any internationally recognised legislation regulating this practice. In the absence of legislation, many voluntary initiatives have been introduced to encourage good practice with regard to sourcing timber.  Certification schemes have been introduced, aimed at developing standards and ensuring a chain of custody (CoC), which can be applied throughout the supply chain. According to the Forests and the European Union Resource Network (FERN), all certification schemes are made up of three elements: standards, certification and accreditation. This process ensures that forest management standards and requirements are set and adhered to and that the organisation undertaking the certification is competent and can produce credible results.[v]

A hierarchy is generally recognised throughout the forestry industry, which assigns credibility according to whether timber has been taken from a source that is unknown, known, known and legal, certified, and certified and sustainable. Certified and sustainable timber (i.e. timber that has originated from forests managed to high environmental, economic and social standards) stands at the top of the hierarchy and carries the most credibility. As implied earlier in the article the majority of certified timber is legal but may not necessarily be sustainable and standards imposed by the different certification schemes may differ significantly. The Central Point of Expertise for Timber Procurement (CPET), an organisation set up by the Department for Environment, Food and Rural Affairs (Defra), highlights five main certification schemes, these are: the Canadian Standards Association (CSA), the Forestry Stewardship Council (FSC), the Malaysian Timber Certification Council (MTCC), the Programme for the Endorsement of Forest Certification (PEFC), and the Sustainable Forestry Initiative (SFI). The CPET regards all these schemes to follow legal practices, however only the CSA and products and product lines containing >70% FSC, PEFC and SFI certified or recycled raw material are considered sustainable. Timber certified under the MTCC is not considered sustainable.

Many different views exist on the credibility of these and other certification schemes. The UK Government does not favour one scheme over the other but simply seeks to procure wood from legal and sustainable sources. Evidence must be provided to prove that the timber does fit this criteria and certification is regarded as the most robust form of evidence.  NGO’s such as Friends of the Earth and Greenpeace make a clear preference for FSC and have in the past criticised the government for recognising other certification schemes. Greenpeace has commended FSC “for including standards developed by a due multi-stakeholder consultation process, robust CoC and third-party auditing procedures, independent monitoring by an accreditation body and transparent controls and management of controlled wood products mixed with certified products with market incentives to advance” ⁱⁱ. The World Wildlife Fund (WWF) appears to uphold this view but does not take such a hard-line approach to other schemes.

Many organisations have now been established to assist companies in cleaning up their supply chains and helping them to move towards certification. These include the World Wildlife Fund’s Global Forest and Trade Network (GFTN), the Tropical Forest Trust (TFT), the Rainforest Alliance SmartStep programme and Woodmark. The WWF GFTN does not explicitly give preference to a specific certification standard but emphasises that the scheme must be independently certified and credible[vi]. In contrast, other organisations, such as the TFT, SmartStep and Woodmark have a clear preference for the FSC standard.

Timber procurement policy

The UK Government has recently adopted a strict stance with respect to the trade of illegal timber and “aims to ensure a coherent UK Government policy concerning its trade, and also seeks to promote co-ordinated policies between EU and the G8 countries in tackling the problem”.[vii]  It has stated that, as of April 2009, only timber and timber products originating either from independently verified legal and sustainable sources or from a licensed Forest Law Enforcement, Governance and Trade (FLEGT) partner will be demanded for use on the Government estate.  FLEGT is an initiative established by the European Commission which aims at linking good governance in developing countries with the legal trade instruments and leverage offered by the EU’s own internal market. Its main components are support for improved governance in wood producing countries and a voluntary licensing scheme to ensure only legal timber enters the EU.

Many private sector companies have reacted positively to this initiative. Over 70 large companies, including B&Q, the IKEA Group and members of the Co-operative Group, have signed an industry statement in support of the EU Commission to adopt legislation under FLEGT with the aim of adjusting the market in favour of legal timber.

Conclusion

With increasing focus on the impact of deforestation on climate change, the issue of illegal logging will inevitably continue to be high on the political agenda. Developing internationally recognised standards and ensuring compliance against these standards, however, remains a significant challenge. There is no clear definition of sustainable forest management and assessing and maintaining the balance between conflicting economic, social and environmental demands is difficult in view of the fact that no uniform indicators exist. Despite a lack of consistency among Forest Certification Schemes, in the absence of international legislation these instruments  play a large role in encouraging a reduction in illegal logging and promoting, to varying extents, sustainability within the supply chain.

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