Sunday, October 25, 2015 - 1 - Procurement of African Timber - Supporting Sustainable Forest...

Thursday, April 20, 2023 - 1 -

Procurement of African Timber

- Supporting Sustainable Forest Management and Development -


The environmental and safety commitment of the Danzer Group is consistent with our motivation to be acknowledged as a leader in the wood products industry. Our Environmental and Safety Management (ESM) system (according to ISO 14001) seeks to protect all employees, the general public, and our ecosystem by establishing its foundation on the principles of:• Continual Improvement• Management through Teamwork• Leadership by Involvement• Prevention through Planning • Compliance with Regulations and Standards

The Danzer Group’s Commitmentto Your Safety,to Our Health, andthe Habitat We Share

The Danzer Group commitment


Procurement Policy Africa:Danzer Group “Procurement Rules

African Timber”

We commit to gradually, credibly and independently demonstrate that the forests in our control and those from where we are also sourcing timber are managed legally and responsibly.

By gradually we mean to implement a process adapted to the situation of those of our suppliers willing to commit to our goals.

By credibly we mean to implement a holistic, transparent, and documented process that takes the life cycle of our products into consideration and is based on internationally recognized standards especially in regard to sustainable forestry.

By independently we confirm that the process and its outcomes will be audited and certified by qualified third parties.


Scope

Third party Procurement of African Timber - Third party Procurement of African Timber - Support:Support:

1) 1) LegalLegal and 2)S and 2)Sustainableustainable management management

SustainableSustainable Forest Management of Forest Management of Forest Forest attributed to Danzer Group attributed to Danzer Group companies: companies: IFO (Rep. Of Congo) & SIFORCO(DRC)IFO (Rep. Of Congo) & SIFORCO(DRC) Trade and Sales of TimberTrade and Sales of Timber


Objectives & Targets: “The Danzer ladder” Legality as a threshold with a Progressive

Approach towards Sustainable Forest Management

Level of performance (time frame)

4. Unacceptable timber: illegal origin

3a. Full legal compliance (+ no conflict with local population or government), 2nd or 3rd party verified

(short term)

Acceptable 3b. Known origin up to forest source (concession, logging permit) and proof of the legal right to harvest timber (Controlled by the Danzer Group verification programme)

2. Progressing towards SFM

• (long term)

Superior 1 .Sustainable Forest Management (SFM) (Certification)

Consistent with the

ISO 14001Standard :

- Legal compliance&

- Continual Improvement


Stepwise approach with following Timber Categories:

1. Timber originating from a forest with a sustainable forest management, approved by an independent third party certification, Is:

• Timber that has been certified under an internationally recognized system according to ATO / ITTO criteria or criteria reaching the same level at the minimum (FSC, PEFC,...);

• Timber that comes from a forest with a well implemented Environmental Management System, which social and environmental objectives reach as a minimum the level of ATO/ITTO criteria and has been third-party verified (e.g. ISO 14001);

2. Timber with a proof of legal origin and demonstrated progress toward sustainable forest management must be verified by a recognized initiative (FORCOMS, WWF producer group, TFT initiative, FSC-MAP approach…) or by a 2nd party audit from Danzer;

3. Timber with a proof of legal origin is controlled by:a) Ideally, a Chain-of-Custody and legality certification for full legal compliance;b) or a well documented traceability, controlled by the 3rd party audited verification

programme of the Danzer Group, based on 2nd party audits according to the risk of suppliers, with the proof of the legal right to harvest timber.

Legality treshhold

Objectives & Targets (continued): Legality as a threshold with a Progress towards SFM


4. Illegal and unwanted timber is timber with a clear suspicion or proof that it comes from:

• Conflict areas:

• Areas where timber harvesting is associated with human rights violations, underwriting armed conflicts or the breaking of UN trade sanctions;

• Suppliers that have a suspicious background and are associated with armed conflicts and illegal logging;

• Areas where local communities and worker rights are violated or where government and concession managers are in open conflict;

• Protected areas / national parks;

• Harvest in breach of forest law (within or outside a forest harvesting permit);

• The conversion of forest to a non-forest land-use type without the conversion having a clear long term social and economical benefit

Objectives & Targets (continued) Legality as a threshold with a Progress towards SFM

Danzer

TvL: Please do not change this info as it is official, approved by anyone in our procedures and all presentations:1. directly (this is logical as it is "harvesting ITSELF associated with...."2. we are not checking on ANY NATIONAL laws: we are not checking on commerce, fiscal, other national laws, only on forest law. We might add (forest, environmental and labour laws) but this is not the inted at the moment, please keep it as it was.


Procurement Procedures - How to distinguish?


Procurement proceduresSteps for Implementation

1. Preliminary risk assessment based on spatial risk rating and

killing factors;

2. Collection of legal documents on timber origin

3. Suppliers sign a Declaration of Legality;

4. Risk assessment of suppliers and collection of detailed legal

documentation of the origin of timber - Questionnaire

5. Targeted 2nd party (or 3rd party) visits / audits of suppliers

based on the risk assessment;

6. External audit of procurement policy and procedures to verify

consistency and effectiveness;


Step 4. Risk assessment of suppliers

Questionnaire: Identification of supply chains, progress towards SFM and Collection of legal documentation

Procurement Danzer Group

Forest – producerown concession/forest

Forest – producerknown source

1st Supplier

Forest – producerknown source

1st Supplier

Traders / transformers known

Forests ??(unknown sources)

Traders / transformers x unknown

1. : 1 intermediary, direct supply

2. : two intermediaries, supplier buys from source

4. : more than 2 intermediaries,

UNKNOWN SOURCE

3. : more than 2 intermediaries

1st Supplier= producer (transformer)

1st Supplier

Traders / transformers known

Transformation

Transformation

Transformation

Transformation

High risk timber


Implementation: Responsibility / Accountability Decision and Communication Flow Chart

No

No

Yes

Yes

Positive

Negative

SFM certified or CoC / Legality verified by third party?

Extend risk assessment (Questionnaire)

TIMBER (PRODUCT) SUPPLY or SUPPLIER

Result of preliminary risk assessment(analysis of supplier by Environmental

coordination unit)

Procurement in country of timber origin?

Legal documentation of

timber origin?No

Negative

Declaration of legality signed by supplier or publicly available?

BUY TIMBER

Don’t buyInform higher hierarchy and environmental coordination

Control procedures based on result of risk

assessment

Yes

Max. 2 months


Thank you for your attention !!

Sunday, October 25, 2015 - 1 - Procurement of African Timber - Supporting Sustainable Forest...

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