Forest Certification â Sustainability, Governance and Risk - ITS Global

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ITS GLOBAL International Trade Strategies Pty Ltd, trading as ITS Global Level 1, 34 Queen Street, Melbourne, 3000 Tel: (61) 3 9654 8323 Fax: (61) 3 9654 4922 http://www.itsglobal.net Commercial-in-confidence. The views expressed in this publication are those of its authors. The consultant takes no liability for commercial decisions taken on the basis of information in this report. The information is accurate to the best of the consultant’s knowledge, however the consultant advises that no decision with commercial implications which depends upon government law or regulation or executive discretion should be taken by any person or entity without that party’s having secured direct advice from the government agency concerned in writing.
Forest Certification – Sustainability, Governance and Risk January 2011 Contents Acronyms .............................................................................................................................. 4 Executive Summary .............................................................................................................. 5 Introduction – Why is Forest Certification about more than Certification? ........................ 7 1. What is Forest Certification? ............................................................................................ 9 1.1 Terms and Definitions .................................................................................................... 9 1.2 Scope and Coverage ................................................................................................... 10 2. Evolution of Forestry Certification ................................................................................. 11 2.1 Origins PEFC and FSC ................................................................................................ 11 2.2 Funding ....................................................................................................................... 12 2.3 Governance Structures ................................................................................................ 12 3. Comparison of Standards ............................................................................................... 15 3.1 Principles, Criteria and Indicators ................................................................................. 15 3.2 Comparison of Principles, Criteria and Indicators.......................................................... 15 4. Comparison of Processes ............................................................................................... 17 4.1 Principles of Good Governance .................................................................................... 17 4.2 Arms-Length Separation .............................................................................................. 17 4.3 FSC and ISEAL – Adding ‗Credibility‘ ........................................................................... 17 4.4 Summary of Differences ............................................................................................... 18 5. Comparison of Governance ............................................................................................ 20 5.1 Management and Governance ..................................................................................... 20 5.2 Purpose and Effect ...................................................................................................... 21 6. Risks to Business............................................................................................................ 22 6.1 Political Agenda in FSC................................................................................................ 22 6.2 Environmental Campaign Strategy and FSC ................................................................ 23 7 Case Studies ..................................................................................................................... 25 7.1 Standards or Politics? – APP, Indonesia ...................................................................... 25 7.2 Environmental Campaigning within FSC - SCA, Sweden .............................................. 25 7.3 NGO lobbying – VicForests, Australia........................................................................... 26 7.4 FSC and Risk Management – Danzer Group, Republic of Congo ................................. 26 7.5 ‗Third-Party‘ Certification – APRIL, Indonesia ............................................................... 27 Annex I: General Comparative Overview of PEFC and FSC .............................................. 28 Annex II: Comparison of Standard Setting and Certification Procedures ........................ 28 Annex III: Comparison of PEFC and FCS International Standards (Criteria and Indicators)............................................................................................................................ 31 References........................................................................................................................... 40 Page 3 of 42
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Forest Certification â Sustainability, Governance and Risk - ITS Global