Sustainable Forest Finance Toolkit - PwC

Planted forests briefing note 5 of 6New Application HOMEInclusive ParticipationIn September 2008, the Forests Dialogue (TFD) SteeringCommittee unanimously agreed that TFD’s future work topromote, convene and follow up dialogue on key forest issueswould be:1. Inclusive of rights-holders and stakeholders2. Respectful and consent-based3. Pro-active in engaging with the issues of marginalisedgroups4. Learning-based5. Building on existing knowledge and capability6. Transparent7. Efficient, agile and rapid8. Focused on practical ways forward9. Reviewed and adaptedConclusions on Intensively ManagedPlanted ForestsIt is apparent that IMPF:• will play an increasing role in meeting global demands forwood and fibre products, which are growing with populationand economic development;• projects of appropriate scale, designed and managed topromote benefit sharing, can deliver social benefits;• could contribute substantially to delivering criticalenvironmental services at a range of scales, and that theseservices are becoming more rather than less important.Conversely, it is also apparent that IMPF projects ofinappropriate scale, and those that are poorly-conceived ormanaged, are likely to generate environmental and socialcosts that outweigh their benefits.The Forests Dialogue’s IMPF process identified a series ofpractical actions that those engaged in IMPF investments andactivities should implement.1. Institutions financing or underwriting IMPFinvestments should:• implement the Equator Principles, which are currentlyapplied in only a minority of cases;• institute more effective due diligence for IMPF-relatedinvestments;• co-invest with governments to develop good governancestructures and build capacity;• encourage the use of independent certification as ameans to assess social and environmental performanceof the investments they support.2. Businesses engaged in IMPF activities should:• be proactive in exercising their corporate socialresponsibilities, in particular to address gaps ingovernment’s capacity and processes.This would include, but not be limited to:• responsible project planning, following a systematicapproach;• appropriate land-use planning, comprising:• a thorough assessment of ecosystem servicesassociated with the project;• land acquisition and management followingappropriate consultation with local communities andother stakeholders;• adopting a resource-prudent approach that matchesinvestment in processing capacity to IMPF resourcesupply, rather than using it to leverage resource supply;• establishing effective stakeholder engagement andconflict resolution processes;• advocating for the necessary basic legal infrastructurefor engagement with, and participation of, indigenouspeoples and local communities, and IMPF-basedlabour.3. Governments, agencies, businesses and individualsengaged in IMPF activities should:• pursue models of IMPF-based development that sharebenefits and costs equitably.This means, but is not limited to:• restricting investments to those where social andenvironmental costs do not exceed benefits;• accepting that some landowners, including those withtraditional rights, may choose not to engage in IMPFactivities;• fostering partnerships between stakeholders thatpromote and enhance the sustainability in economic,environmental and social terms of IMPF projects;• committing to sustainable forest management, and itsverification through credible certification schemes;• developing locally-appropriate resource supply andlabour participation arrangements that respect relevantILO core labour standards;• building the capacity of local communities to benefitfrom IMPF activities on terms of their choice.Page 40pwc