Stakeholder Insights - OVERVIEW

Prepared for the Semi-Annual Membership Meeting, January 27, 2015

Douglas Meyer
Bernuth & Williamson
www.bernuthconsulting.com

PURPOSE
Gather, analyze and summarize stakeholder opinion on:

The trade in illegally harvested wood and wood products

The impact of the Lacey Act
The efforts of the FLA
The future of the issue, with potential focal areas for the FLA

PARTICIPATION
Interviews (October-November 2014)
In-depth conversations with 40 representatives from companies, organizations and
associations with interest in the issue, knowledge of the policies and familiarity with
FLA

Private Sector (19)

NGO/Academia (16)
Government (5)

*
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FINDINGS: SUMMARY
2012

The Lacey Act has played an important

role in moving the global market towards
a standard that demands legality
(Interviewees seeing anecdotal evidence
of a move to a new normal)
The FLA has done a solid job in its
specific niche, raising the profile of, and
providing information about Lacey Act
Those directly involved with the FLA are
largely satisfied with the work of the FLA,
especially the work of WRI, while
encouraging the development of tools
and resources
Indications that others affected had
accepted the new normal of the Lacey
Act, albeit with some lingering questions
about implementation and enforcement

2014

The introduction of additional

demand-side policies, especially the
EUTR, is accelerating this transition
(Interviewees now seeking hard data
about impacts)
The FLA has expanded its expertise
beyond the Lacey Act to include
other demand-side policies
Those directly involved with the FLA
remain largely satisfied with the work
of the FLA, while raising questions
about the use of existing tools and
resources, and strategy for the future
A shift in the conversation, beyond
the implementation and enforcement
of the demand-side policies, down
the supply chain, and out to other
products
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FINDINGS: CONCERN ABOUT THE ISSUE

Ongoing concern for those focused on the future of
forests*

Lacey Act and EUTR, those are huge milestonesstill there is massive work
to be done...I would be totally lying if I said I was calm about this issue (NGO)

With new emphasis on producer markets & other

products

As much as I'd like to believe the US telling them (via the Lacey Act) will make
the difference, there really is a systemic problem, long historical issues, in the
producing countries - land tenure, bad regulations, everything - and that is
were the conversation is going now (BUSINESS)

* The majority of interviewees

FINDINGS: PERCEIVED IMPACT OF THE ACT*

A success in raising awareness and inspiring action

(Lacey Act and EUTR) have sent very significant market signals that these markets are
tightening up (NGO)

while awaiting the benefits for legitimate business

There are always going to be costs with these policies, as it made us be a lot more
careful and understand our supply chain...but it is just the cost of doing business...if you
are getting any product from any country, you need to know (the production process)
(BUSINESS)

questioning the ultimate impact on the forest

The Lacey Act has been very effective in changing the dynamics on how US
companies talk about this increased awareness, investment, risk analysis and
concern too - (but) do I think it's affected illegal logging, that's a really tough answer
to come up with (BUSINESS)

and wondering whether it will be fully enforced

There are yellow cards, but not enough red cards (BUSINESS)

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*Note that when discussing impact, most interviewees spoke of the collective impact of the demand-side policies

FINDINGS: FEEDBACK FOR THE FLA

FLA positives
issue expertise that has expanded beyond the Lacey
Act

Not just as a resource but the resourcethere are competing initiatives out there and I
do not recommend those (BUSINESS)

meetings lauded for approach, info and networking

A great platform in that it brings NGOs, private sector and others to the table (and) that
diverse engagement is importantthe twice-yearly meetings where we can learnvery
valuable information sharing (NGO)

research and tools appreciated, but underutilized

One of the things I've felt most positive about is that it is not just a convening group...the
fact that there have been really practical tools and outcomes is what makes it different
(NGO) / Recently (I saw) one of the brief country profiles they produced and I thought,
Well, I wasn't aware of these,' (but that) struck me asa nice little cheat sheet (GOVT)
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FINDINGS: FEEDBACK FOR THE FLA

FLA negatives
meetings becoming less interesting, less diverse

There's always a struggle to find something new to talk about at their meetings (GOVT)
/ Informal conversations are the most valuable part of the conveningsevery year
there is a discussion about a more interactive format but it doesnt happen (and) more
and more people walk away thinking they dont need to be there during the day
(BUSINESS)

concerns about the strategy for the future

Im always slightly wondering what it is, what its angle is, where (the FLA) is going to
nextand I can see that its got a lot of info...real question is about what it wants to do
next (NGO)

FINDINGS: THE FUTURE

Reasons for hopemomentum and technology

We are betting a lot on transparency and the use of technology, where everyone would
know how much has been produced, and exactly where it came from (NGO)

Cause for concernensuring impact of demand-side

policies and addressing supply-side problems

The next challenge facing this is if you look at the deep drivers of deforestation it is not
really paper and packaging but palm oil and consumer non-forest products, sohow
to address the illegal conversions (NGO)

And then theres Chinahope and concern

You go to China...and (officials) expect you all to drink the Kool-Aid...but (companies
will) put whatever you want on the productthree grades: the cheap, the (fake)
compliant, and the actually compliant (BUSINESS)

FINDINGS: THE FUTURE

Suggestions for the FLA

stay centered on legality & continue convening

Number one is to continue the networking as there is nothing more important than
sharing the information, and the FLA, because of its constituents, from WWF and EIA to
industry...you can't reproduce it, that's invaluable (BUSINESS)

bring existing resources to new audiences

I've been impressed with the breadth of attendees at FLA meetings, but I have noticed
that the attendees have not expanded in the last couple of yearscould they do a push
to recruit new companies? Cast the net wider? Hold the meetings elsewhere to help do
that? (NGO)

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FINDINGS: THE FUTURE

gather data and report out to business and USG

I'd love to know how much progress has been made on illegal logging as for the
companies who have taken a leadership role (on this issue, I know) they'd love to be
able to tell that story....they'd love to hear that it has been making a difference (and) if
they can show a definitive outcome then wow, that's awesome (BUSINESS)

go deeper into producer markets

FLA does a great job at looking at the demand-side pieceI'm wondering if it's worth
focusing their attention on the producer sidethose questions are harder, and there
will never be a one-size-fits-all solution (but) that could be a really interesting
conversation (NGO)

consider collaborations with other initiatives

You have a whole series of organizations and initiatives that are focused on
sustainability, and you have industry buy-inthe Tropical Forest 2020, the Consumer
Goods Forumand there is climate stuff going on, generating other investments in
sustainability - that's excitingthe extent to which FLA plays in that is the question
(NGO)
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FINDINGS: CONCLUDING THOUGHTS

Sincere appreciation for the FLA, and interest in its
future

We still feel committed and supportive of the FLA, and I appreciate that they, through
(B&W), reach out to check in and see how things are going....and the timing is
rightlargely we're happy and think it is headed in the right directionjust those couple
of things as to how it could be even better (NGO)

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NEXT STEPS
Immediately prior to the semi-annual meeting
B&W hosted discussion groups to explore in more detail two of the ideas
that arose during the interviews
The possible role for the FLA in identifying and/or promoting
technologies that could help eliminate the trade in illegal wood
The possible role for the FLA in advancing the creation of nationallybased alliances in Brazil, Mexico and China

During the semi-annual meeting

FLA staff will present a draft work plan for review and discussion

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Stakeholder Insights - OVERVIEW

Prepared for the Semi-Annual Membership Meeting, January 27, 2015

Douglas Meyer
Bernuth & Williamson
www.bernuthconsulting.com

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