Quebec Wood Export Bureau (Q-WEB) Auditing and Traceability System: A Canadian commitment to responsible trade

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Quebec Wood Export Bureau (Q-WEB) Auditing and Traceability System: A Canadian commitment to responsible trade International Seminar for Tackling Illegal logging, Tokyo, Japan February 26-27, 2007 Carl-Éric Guertin, R.P.F., M. Sc. Communications and Responsible Trade Manager Quebec Wood Export Bureau Member of Canada Wood Group

Presentation Plan 1. Canada Wood Group 2. Canadian Overview 3. Global Overview 4. Quebec Wood Export Bureau (Q-WEB) 5. Q-WEB Code of Conduct 6. Q-WEB Auditing and Traceability System 7. Conclusion

1. Canada Wood Group Overseas Offices Japan (Tokyo) China (Shanghai, Beijing) Taiwan (Tapei) Korea (Seoul) UK (London) Europe (Brussels)

2. Canadian Overview Basic Facts About Canada s Forests 10% of the world s forest is in Canada Forest and other wooded land - 401 million ha Forest lands - 309 million ha Roughly 1 million hectares a year is harvested By law, it must be promptly regenerated More than half a billion seedlings are planted each year Annual allowable cut (2001) 237 Million cubic meters Actual harvest (2002) 190 Million cubic meters Forest types: 22% hardwood 66% softwood 12% mixed

2. Canadian Overview Ownership of Canadian Forests 425,000 individuals, families, communities, and forest companies 6% 23% Federal Provincial Private 71 % Canadian Forest Service, State of Canada s Forests

2. Canadian Overview Forest Management Planning and Regulation Federal government has indirect responsibilities Federal land Science National Policy & Legislation (fisheries, migratory bird) International agreement Provincial governments have jurisdiction over forest management Long term tenures (forest area or volume) Comprehensive legislation conditions 20-25 year forest management plans Rolling 5 year development plans and site specific annual operational plans All forest management plans subject to public review prior to approval.

2. Canadian Overview Governance (NOT AN ISSUE) Lack of ability to enforce laws (NOT AN ISSUE) Illegal logging / illegal trade (NOT AN ISSUE) Strict laws and regulations in the forestry sector Efficient compliance monitoring system Well-structured planning process

2. Canadian Overview Low Risk Log Supply Source : Seneca Creek Associates, LLC and Wood Resources International, LLC, October, 2004.

2. Canadian Overview Canadian Certification Status in a Global Context Largest area of certified forests in the world Source : Canadian Sustainable Forestry Coalition, 2007

2. Canadian Overview SFM Certification Growth in Canada 73,4 (CSA) 31,4 (SFI) 19,6 (FSC) Source : Canadian Sustainable Forestry Coalition, 2007

2. Canadian Overview Demonstrating legality & sustainability Forest Products Association of Canada (FPAC) Large corporations (pulp, paper and wood products) FPAC committed its membership to achieve SFM certification (CSA, FSC, SFI) on all lands under their management by the end of 2006. FPAC members are committed to tracing their fibre supplies back to the forest area of origin by the end of 2008 to assure customers that the wood fibre they are using comes from legal sources.

2. Canadian Overview Demonstrating legality & sustainability For small and medium size companies With or without harvest rights on Crown land Who by sawn timber on the open market Semi- finished and finished wood products (1 st, 2 nd and 3 rd processing manufacturers) Quebec Wood Export Bureau (Q-WEB) Pilot project Auditing and Traceability System

Red>5% annual decrease Green>5% annual increase Forest 3. Global area, Overview net change

3. Global Overview ENGO s involvement : the organization will continue to support the concept of environmental certification but, from this point forward, will focus future efforts on combating illegal wood cutting. Chris Elliott, director of WWF International s, Forests for Life Program, Atlanta 2002 (Anderson and al., 2002)

4. Quebec Wood Export Bureau (Q-WEB) Provincial trade association established to promote the export of Quebec (Canada) wood products on overseas markets Since 1996 200 corp. in 6 sectors : Softwood lumber Hardwood lumber Hardwood flooring Finished wood products Prefabricated housing Engineered wood Small family owned companies to multinational

5. Q-WEB Code of Conduct Initiated in 2004, Adopted in 2006 A condition of membership General Principles Environment Phytosanitary measures Transportation Workers conditions Sector specific : Softwood lumber Hardwood lumber Hardwood flooring Compliance procedures Appendix B - Policy on Wood Origin and Legality

5. Q-WEB Code of Conduct General Principles Environment «committed to sourcing their wood products from companies that can provide evidence that their supply sources are known and legal, and that forests are managed according to legislation in effect.» «members are encouraged to ask their suppliers to sign and abide by the Q-WEB Policy on Wood Origin and Legality» «independent certification of forests and/or chain of custody tracking systems are excellent tools to ensure that procured wood is from known, legal and wellmanaged sources that in turn promote sustainable forest management.»

5. Q-WEB Code of Conduct Sourcing timber / wood : Softwood and hardwood sectors Crown land (public land) under Timber Supply and Forest management Agreement Small woodlot (non industrial private forest) Own private lands Other Canadian provinces United States Other sectors Sawn wood on the open market be it local, regional, provincial, national, United States and International

5. Q-WEB Code of Conduct Appendix B - Policy on Wood Origin & Legality

6. Q-WEB Auditing & Traceability System Objective Reference II Certification by companies Approved by Industry (Guidelines for Verification on Legality and Sustainability of Wood and Wood Products) Need for Code of Conduct (Already exists for Q-WEB) Need for Accreditation and Certificate of Legality (In development)

6. Q-WEB Auditing & Traceability System Working with suppliers 4 step approach 1. Inform on the need to sign the Policy (with deadline) and ask for certified products and Chain of Custody 2. Follow-ups 3. Register letter recalling steps 1 & 2 4. Removed from preferred suppliers list or tagged as high risk supplier

6. Q-WEB Auditing & Traceability System Demonstrating origin and legality of wood 1. For North American suppliers (self declaration) No need to provide documents of point 5 & 6 of the Policy If not confident in one of the suppliers, member will request the appropriate documentation of point 5 & 6 2. International suppliers All documents listed in point 5 & 6 of the Policy are requested Use of WWF Country Legal Document Lists (Keep it Legal, Appendix 7)

6. Q-WEB Auditing & Traceability System Auditing Verify if members suppliers have signed the Policy Audit of membership once a year by a third party Auditors of CSA, FSC and SFI If suppliers have not signed the Policy : Members will have to demonstrate through proper documentation that they followed the 4 steps approach Q-Web will issue a certificate to members that have met the requirements of the Q-WEB system

7. Conclusion Traceability : Complex for small and medium sized members Gets harder as we move along the supply chain Q-WEB Auditing and Traceability System : Major step to demonstrate members commitment to responsible trade Next steps : Identify for other provinces / countries the documentation suggested in point 5 & 6 of the Policy? Trace their wood back to the forest of origin? Full Chain of custody?

7. Conclusion Canada Wood Partners are ready to collaborate with importers, ENGO s or any others to improve the Quebec Wood Export Bureau (Q-WEB) Auditing and Traceability System