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European Industry Response to EUTR: Mitigating Illegal Logging Risks

Learn how European industry tackles illegal logging risks with due diligence, certification, and verification procedures to ensure legality in the supply chain. Discover key indicators of risk, challenges, and mitigation strategies. Contact Rachel Butler for expert advice.

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European Industry Response to EUTR: Mitigating Illegal Logging Risks

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  1. What is European Industry doing to respond to the EUTR Rachel Butler Independent Technical Advisor

  2. USA, Europe & AustraliaIllegal Logging Laws…markets are aligning but will not change overnight..These laws changes fundamentally one concept; the risk & obligation is on the importer

  3. Due Diligence & Certification/Verification • Not a new concept • BWWF Buyers Groups 20+ years old • Certification eg FSC Controlled Wood • AHEC/Seneca Creek – large scale regional risk assessment • Private Sector purchasing policies Legal Verification Certification Due Diligence/Due Care

  4. Establish procedures • Initiate performance monitoring • Define scope of supply chain & products • Keep records • Evaluate supply chain info • Identify risks: • forest management • supplier level • risks of mixing & substitution • Specify risks where identified 1 2 3 4 Manage supply chain Risk mitigation Quality system Risk assessment • Record supply chain info: • origin • suppliers • species • legality documentation • Collect additional supply chain info Mitigation options • Additional documentation • Replace supplier • Source certified material • Supply chain verification audits

  5. Certification & Verification • Certification and legality verification is a tool to support due diligence notautomatically compliant; operators choice to use it& assess it. • ProForestReports commissioned by ETTF highlights the gaps in meeting legality requirements • Further issues with certification/verification not covered in the report • Lack of info; species &source country • Fraudulent certificates

  6. EU industry Indicators of Risk • Complexity of supply chains • Evidence of non-enforcement • Known cases of illegal activities in the supply chain • Known corruption • Lack of information about source • Lack of supply chain control • Lack of transparency • Poor quality information or documentation • Tree species

  7. Global Trade Implementation …consistent? • Little guidance from any authorities • Good thing; flexibility!? • Lack of information on risk • Some initiatives – little of much use as yet • Buyers & producers need to know their supply chains! • Documents are not enough! • Confusion with operators who do not understand the EUTR & producer national legal regimes…. LEADING TO PANIC! • ETTF working to address e.g one due diligence system

  8. Confusion amongst operators • Asking for information beyond the regulation • Not meeting and understanding due diligence • Putting obligations on producers • Indemnity contracts • Not a documentation regulation • Awareness will slowly increase

  9. Guiding your Buyers • Down to the global trade to work it out therefore……. • Consistent messaging from Cameroon Industry • Easy for EU importers to understand • Helps you • Not contentious in Civil Society

  10. Thank you! rachel.butler@rba-solutions.com or raichbutler@gmail.com

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