FSC: AN EVER-EVOLVING TOOL TO PROTECT FORESTS

AND COMPLEMENT SUSTAINABLE

POLICIES
Stefan Salvador, FSC's Director Policy Operations
Marc Jessel, FSC’s Chief System Integrity Officer
Matteo Mascolo, FSC’s EU Affairs & Engagement Manager

EUTR multi-stakeholder platform meeting, 10.02.2023

 AGENDA
Topic

1 What is FSC and how it works

2 FSC: an ever-evolving tool

3 FSC’s integrity work

FSC’s contribution to the EUDR and

4 alignment with EU policies

5 Q&A
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1. WHAT IS FSC AND HOW IT WORKS
 FOREST STEWARDSHIP COUNCIL

®
FSC provides forest stewardship standards that enable:

Responsible Sourcing Conservation Restoration

We verify supply chains so We work with key organizations We convene stakeholders to

markets can work with forests to maintain and enhance forest accelerate forest recovery
responsibly value

TA N G I B L E & I N TA N G I B L E VA L U E S

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Fundamentally balanced

33.3% 33.3% 33.3%

Social Environmental Economic

Local People & Biodiversity Responsible &

Society at Large & Ecological Protection Economically Viable

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2. FSC: AN EVER-EVOLVING TOOL TO
ENSURE HEALTHY RESILIENT FORESTS,
FOR ALL FOREVER
2.1 How changes are introduced in FSC standards

➢ Stakeholder engagement all along the process

➢ Drafting and decision-making bodies multi-stakeholder balanced
➢ Conforming with good practice code for standard-setting (ISEAL)
➢ Regular intervals for standard reviews

Review report
White papers & studies
(published) Standard drafts
(publicly consulted) Test report
(published) Publication

Conceptual Implementation
Review phase Drafting phase Testing phase Final decision
phase & monitoring

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2.2 Important changes made since the PbN study
Forest Management
2022
➢ Ratified a zero-deforestation policy
with a new cut-off date of 31 Dec.
2020 in alignment with the EUDR:
FSC Policy to Address Conversion
(FSC-POL-01-007 V1-0)
2021-2022
➢ Developed an additional 17 national
forest management standards with
latest legality requirements
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Chain of Custody
2021
➢ Revised version of the FSC Chain of
Custody standard
Chain of Custody Certification (FSC-STD-
40-004 V3-1)
• Expanding the requirement to ensure import,
export and commercialization of products
conforms to applicable laws towards non-
certified material
• Having to provide proof of compliance with
relevant trade and customs laws
• Introducing ILO-based labour requirements for
CoC certified companies
2.3 Upcoming revision of Chain of Custody standards

KEY TOPICS
➢ Circular economy
➢ Alignment with relevant EU legislation, such as EUDR
➢ Simplifying access for small enterprises
➢ Further enhancement of workers’ rights
Forest Management certification
➢ Enabling downstream data transfer, incl. geo-location data Promotional
licence

Forest Sawmill Factory Processor Retailer

Chain of Custody (COC)

9 certification
3. FSC’S INTEGRITY WORK
 FSC uniquely has a Policy for
Association that protects forests
beyond certified areas
FSC’s powerful Policy for Association (PfA) enables us to prevent and stop destructive
activities in FSC certified areas and beyond. FSC is the only forest certification
system to do so.

The PfA includes a list of 6 unacceptable activities that certified companies and their
Unacceptable Activities corporate group members must avoid.
1. Deforestation
2. Destruction of High Conservation If a company violates the PfA, swift and strong action is taken. FSC may expel them
Value areas from the system and set remediation requirements for re-entering the FSC system.
3. Illegal logging
4. Human and traditional rights
violations
5. Workers’ rights violations ❑ 9 corporate groups expelled from the FSC system
6. Use of genetically modified ❑ 3 corporate groups allowed to re-enter after remedy process
organisms

11 Note: PfA applies to both forest management and forest product supply chain companies.
 Our traceability toolkit
We’re harnessing cutting edge technology and science to tackle the traceability challenge

Blockchain Isotope Testing Earth Observation

We’re leveraging the power of blockchain We're piloting the application of cutting-edge We’re using satellite technology to help
to revolutionize materials traceability and wood identification technology to root out auditors monitor forest health and
trade compliance in high-risk supply false claims and trace the origins of timber. proactively detect threats.
chains.
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Conducting targeted supply chain investigations
including transaction verification EUROPE
Charcoal, since 2017
NORTH AMERICA
Eucalyptus, 2019 More than 16 large
Salvage logging in Russia, 2021
Global Other global investigations scale investigations
investigations
were conducted
globally together with
FSC’s assurance
partner ASI

88 companies were
blocked due to
fraudulent activities

1 CB per year
suspended; 1 CB
LATIN AMERICA AFRICA
Amazon timber: Cumaru, Aucoumea, 2020 ASIA PACIFIC terminated
Jatoba, Ipe, 2019 Bamboo, since 2017
Other global Paulownia, since 2019
Other global investigations investigations Oak flooring, 2019
Calophyllum Plywood, 2019
Mango & Dalbergia, 2020
Wood Pellets in Asia, 2021
Teak, 2022
Other global investigations
4. FSC’S FURTHER ALIGNMENT WITH
EU POLICIES
4.1 Alignment analysis EU Initiatives / FSC

Analysis:

1. EUDR
2. Sustainability due diligence (CSDD)
3. EU taxonomy, sustainable finance
4. Empowering consumers & green
claims
5. EU Forest Strategy
6. REDII, restoration law, certification
carbon removals and corporate
sustainability reporting (CSR), TBC

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 Make everyone
a forest steward.

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ANNEX
2.2 How FSC protected forests in 2022

1. Stipulating a zero-deforestation
policy and creating a path for
restoration and social remedy
2. Innovated, enhanced, and
streamlined our standard-setting
process
3. Introducing a stepwise approach for
community and family forest owners
4. Enhancing auditing practices in the
forest
5. Increasing FSC’s global impact by
broadening FSC certification with
national standards

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4. FSC can contribute to successful implementation of EUDR

1. Systematic approach to tackling illegal logging built on 10 years of EUTR

2. Already strong definitions on deforestation, degradation, and cut-off date
3. Alignment with legality requirements, and including sustainability requirements, also going
beyond the EUDR
4. Strong emphasis on enabling Indigenous people rights, especially FPIC
5. Social ILO requirements in the supply chain
6. A tool that most operators already use in their DD obligations
7. System Integrity improvements, e.g. new policy for association
8. Developing new tools that can support geo-location requirements, e.g. GIS tool
9. FSC’s convening power to deliver new forest solutions
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Thank you