Sustainable Forest Finance Toolkit - PwC

Appendix 2: Client performancerequirements & questions1 of 3Client performance requirementsWe expect our clients (where relevant) to:I. Management and Governance• Apply corporate policies and procedures to meet all applicable legal requirements• Work against corruption and illegal practices in all their forms.II. Resource Management• Use sustainable forest management in forests they own, lease or manage to providefibre, timber and other forest products and valuable ecosystems services.• Progressively and systematically introduce credible forest certification in the foreststhey own, lease or manage, against a time-bound plan.• Seek to conserve important biodiversity and cultural values (protecting ‘specialplaces’) and to optimise the social, environmental and economic benefits of managedforests.• Respect the lawful access and tenure rights of indigenous peoples and othercommunity members directly affected by forestry operations.• Proactively seek to resolve any potential land disputes through dialogue, independentarbitration or the legal system.Questions for management1. What environmental and social policies / procedures are in place, are they current (i.e. lastreviewed in past 5 years), what were your sources of information in developing these policies (e.g.which stakeholders were consulted and how)?2. Is there a strategic / management plan in place to address environmental and social issues?Does it include FMU / CoC certification? Has it been implemented? This may include the adoptionof a ‘stepwise’ approach to achieving certification.3. How are these policies communicated and implemented, and who is responsible?4. Can management provide copies of policy documents and evidence of procedures in place (e.g.whistle-blowing hotline, forest management permits, licences and agreements)?5. Who has senior level responsibility for environmental and social issues?6. Is the company aware of how much is already planted and how much is plantable in the futurewithin the concession or forest management area?7. What training, SFM methods and practices does the company use and employ?8. Has the company mapped and delineated special places and areas with high conservation valuewithin their concessions or forest management area?9. Have there been any significant legal claims, complaints or disputes regarding forest managementpractices, land rights or resettlements? How were they resolved?10.Can they provide copies of:• the forest management plan (ideally reviewed or updated in last five years)• certification gap analyses• audit reports (including VLO/VLC certificates and step-wise approach audits)• certification documents (and % of total FMU area certified). See Certified Wood Searchor FSC.Page 84pwc