Social requirements in PEFC chain of custody

PEFC webinar, 7 July 2010

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Global Challenges for Certification

Challenge 1: Expansion of Certification

Only 8% of the world’s forests are certified – have we stalled?Only 26% of the world’s industrial roundwood supply is certified – after almost 20 years of forest certification66% of the total area certified to PEFC

8% 26%

66%

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Challenge 2: Distribution of certification

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52.8

38.3

5.22.8 2.5 0.9 0.8

0

10

20

30

40

50

60

Western Europe

North America

Oceania CIS Latin America Africa Asia

% o

f tot

al fo

rest

are

a

180 million ha, 56% of world’s certified forests

82 million ha, 26% of world’s certified forests

CIS = Commonwealth of independent statesSource: UNECE/FAO Forest Products Annual Market Review 2008-2009

Legislation and procurement policies as drivers for sustainable and legal timber stimulate demand for certified product and are welcomed:

Legislation (Lacey Act, Due Diligence Proposal EU)Bilateral Agreements – FLEGT; MoU China & Indonesia, etcPublic Procurement Policies (CPET, TPAC, ICLEI, EU Ecoflower etc)Green Buildings initiativesResponsible Purchasing Policies & Codes of Conduct

Need to ensure they remain drivers and do not become barriers

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Challenge 3: Securing Market Access

Context of the PEFC Revision

Governance Review 2008New Strategic Plan General Review of Statutes and Documents

chain of custody and requirements for C-o-C certification bodies,requirements for standard setting, forest management standards and regional/group certification,requirements for FM CBs and PEFC endorsement process.

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Current stage of the PEFC C-o-C standard revision • The PEFC BoD has sent the final draft standard (FD) back to the

PEFC CoC WG to address to following issues:

• GMOs (completed)• recycled material (completed), • Eligibility criteria for “group C-o-C certification” (BoD to

decide on three options)• Labour, health and safety requirements (public

consultation until 23 July 2010)

In addition, extension of the scope of “controversial sources” is under discussion.

Social issues in PEFC C-o-C: Why?

Have always been in Forest Management Standard incl. fundamental ILO Conventions

Chain of Custody was always seen as pure wood flow accounting system

PEFC Chain of Custody never made statements about:Quality of Wood

Durability

C02 footprint etc.

But what happens if factory violates basic values e.g. uses child labour and then logo?

After initial consultation Board responded by requiring safeguards to be developed and added and it is these we are consulting on today8

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Basic principles of the proposal

• Requirements being mandatory for all chain of custody holders

• Based on Fundamental ILO Conventions

• Requirements based on combination of policy and performance requirements

Social issues in PEFC C-o-C: How?

• Through “mandatory appendix” to the revised C-o-C standard

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Appendix x: Social, health and safety requirements in chain of custodyMandatory

ScopeThis Appendix includes requirements relating to health, safety and labour issues that are based on fundamental ILO (International Labour Organisation) conventions.

DefinitionsFundamental ILO ConventionsEight conventions (ILO 29, 87, 98, 100, 105, 111, 138 and 182) identified by the ILO's Governing Body as "fundamental“….,

Requirements3.1 The organisation shall have documented policy that includes the organisation’s commitment to implement and comply with the social, health and safety requirements defined in this standard.3.2 The organisation shall demonstrate that it:a) ensures workers’ freedom of associations and rights for collective bargaining. These include

working contracts which do not prevent workers from joining/participating in workers organisations and collective bargaining; workers’ access to their representatives; transparent procedures for dismissal and bargaining with workers’ representatives of legally recognised labour organisations where this is required or permitted by law.

b) prohibits the use of forced labour covering the organisation,c) ensures minimum age for the employment of employees,d) ensures equal employment that covers recruitment, promotion, division of work and

dismissal,e) ensures occupational health and safety, including its documentation and reporting.

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Questions and answers

Participate in online consultation: www.pefc.org, click on Get involved - Public consultations (open until 23rd July 2010)