Forestry Monitoring Programme Governments & Institutions Services

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Forestry Monitoring Programme Governments & Institutions Services Overview presentation to the 9 th Forest Legality Alliance meeting Nick Moss Gillespie May 2013

SGS Group SGS is the world s leading inspection, verification, testing and certification company. We are recognized as the global benchmark for quality and integrity. With more than 75,000 employees, we operate a network of more than 1,500 offices and laboratories around the world. 2

Overview of SGS services Services Expertise Certification Inspection Testing Auditing/Verification Training Agricultural Services Automotive Services Consumer Testing Services Environmental Services Governments & Institutions Services Industrial Services Life Science Services Minerals Services Oil, Gas & Chemicals Services Systems & Services Certification 3

SGS Forestry Services 1 National Forestry Control 5 Environmental Mgmt. System (ISO14000) 2 Legality Audits (ex-tltv) 6 Quality Mgmt. System (ISO 9000) 3 Forest Mgmt. Certification 7 Forest Product Inspection Services 4 Chain-of-Custody Certification 8 Forest Plantation Review Services 4

National Forestry Control: mandates 1 Outsourcing Log export monitoring outsourced to SGS Export tax calculations Teams of inspectors (<60), low investment, mandate renewable annually 2 3 Technical Assistance Development of the Forestry Authorities capacities Technical advice in IT and Forestry domain knowledge Reinforcement of the verification system Small team of experts, limited investment, 2 to 3 years mandate Build, Operate, Transfer (BOT) Creation of a fully operational verification body/department Development, deployment, & operation of the Traceability & Legality system Transfer of a fully skilled and performing body to the Forestry Authorities Wider team of professionals (up to 100 depending on the country) including national inspectors/auditors and managers, bigger investment (vehicles, computers, IT system, etc.), 5-year projects in general 5

National Forestry Control: components 1 National Timber Traceability & Legality Systems 1 2 Training of Forestry Authorities and forest-sector operators 3 Inspections 6

Activities per component (1/3) 1 National Timber Traceability & Legality Systems Definition and/or review of Standard Operating Procedures (SOPs) Development and configuration of the LegalTrace TM software by SGS IT Developers according to AGILE (Scrum) methodology Traceability, Control, Reconciliation, Legality, Fiscal, Reference Data, User Management, Statistics and Reports, Interfaces, Geographical Information System. Issuance of FLEGT Licences Material /equipment: data centre, servers, bar-coded labels, handheld computers, GPS, etc. Maintenance of software and infrastructure 7

LegalTrace TM : Forestry software 8

LegalTrace TM : Forestry software 9

Activities per component (2/3) 2 Training of Forestry Authorities and forest-sector operators Training on the use of the IT system and new technologies for public and private operators Central database, Business intelligence tool, maintenance & support Bar-coded labels, Handheld computers, GPS Training on Verification procedures for Inspectors/Auditors: Species identification, timber grading and scaling Verification procedures (physical and documentary checks) FLEGT/VPA and legal requirements Training on Management: Leadership Integrity Quality Management System Health and Safety 10

Activities per component (3/3) 3 Inspections If required, SGS can conduct inspections on behalf of the Government (i.e. mandates in Liberia and DR Congo) or act as a mentoring agent or auditor of forestry services Physical inspections of timber in forest, log yards and checkpoints Documentary inspections of felling forms, waybills, etc. Inspection of containers transported on trucks thanks to scanner technology 11

Inspections using Scanners SGS controls trucks that may contain timber on the eastern border of DR Congo. Scanners manufactured by the American company AS&E 12

Expected benefits for Governments Reinforce national capacities with the use of new technologies Optimize tax recovery Promote national timber on the international market Safeguard access to European and Asian markets Tackle illegal logging and deforestation Improve the image of the country on the international scene 13

Our current projects worldwide North Korea Marocco Tunesia Nepal Bhutan China South Korea Japan West Sahara Mauretania Mali Algeria Niger Senegal Gambia Guinea-Bissau Burkina Faso Guinea Benin Nigeria Sierra Leone Ivory Coast Ghana Liberia Togo Cameroon Gabun Libya Chad Central Africa Congo Democratic Republic of Congo Egypt Sudan Uganda Kenya Rwanda Burundi Tanzania Eritrea Ethiopia Dschibuti Somalia Bangladesh Taiwan India Myanmar Laos Thailand Vietnam Cambodia Philippines Sri Lanka Brunei Malaysia Indonesia Trinidad Costa Rica Panama Venezuela Guyana Colombia French-Guayana Surinam Ecuador Peru Papua-New Guinea Brazil Bolivia Angola Malawi Sambia Mozambique Namibia Zimbabwe Madagascar Botswana South Africa Lesotho Swaziland Papua New Guinea since 1994 Cameroon since 1994 Republic of Congo since 1995 Democratic Rep. of Congo since 2010 (BOT) Liberia since 2008 (BOT) Colombia since 2012 Chile Argentina Paraguay Uruguay 14

Why SGS? Long and unrivalled experience in designing, operating and transferring National Forestry Monitoring Programs... Unique company able to offer all the components of a comprehensive program (Capacity Building, Field Inspections and IT Solutions) under one roof. Worldwide company relying on its international network to deliver local solutions. Independent company whose success is based on overall reputation and on the quality of its local operations. These are assets on which Governments can rely to set up very high-level solutions, tailored to the specific needs of the country 15

A Key partner for Legality Assurance Systems Our projects have set the foundations for the Legality Assurance Systems which are to be established under the VPAs, by ensuring: Full traceability of logs and processed wood back to the forest of origin Verification of key aspects of legal compliance along the supply chain Developing capacities through training to public and private sectors A good traceability system is a prerequisite to the development of a legality verification system to issue Certificates of Legality and FLEGT licences. 16

Thank you Nick MOSS GILLESPIE Forestry Monitoring Programme, Consultant E-mail: nmoss@rforsolutions.com Alain VERNEY Forestry Business Development Manager E-mail: alain.verney@sgs.com Marie LAVAL Forestry Deputy Business Development Manager E-mail: marie.laval@sgs.com 17

SGS SA 2012. ALL RIGHTS RESERVED. WWW.SGS.COM 18