The issue of health, safety and labour requirements as part of the PEFC chain of custody has been discussed during the original development of the PEFC chain of custody standard (2000), during its revision in 2004 and also became a part of the current on-going standard revision run during 2008-2010. On 5 February 2010, the PEFC Board of Directors discussed the topic in connection with a final draft of the revised chain of custody standard and commissioned the PEFC chain of custody working (PEFC CoC WG) group to develop a solution for incorporation of social requirements based on the Core ILO Conventions in the PEFC chain of custody for submission through the PEFC formal adoption process by the end of 2010. On 27 April 2010, the PEFC CoC WG agreed to send an enquiry draft for PEFC public consultation. The draft is based on the following leading principles: 1. Requirements are mandatory for all chain of custody holders as to avoid any form of discrimination amongst companies operating in different geographical regions. 2. Requirements are based on the Fundamental ILO Conventions as the internationally recognised "norms" for securing labour issues. 3. Requirements are combination of policy and performance requirements while evidence on compliance with them can vary dependent, for example, on legal framework in which the company operates or a size of the company. A recognised means of demonstrating the compliance will further be developed as a part of the PEFC Council guidance document. This webinar gives stakeholders the opportunity to get information on the background of this revision and the details and implications of this proposal as well as to ask questions.

1. Social requirements in PEFC
chain of custody
PEFC webinar, 7 July 2010
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2. Global Challenges for Certification
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3. Challenge 1: Expansion of Certification
8% 26 66
% %
Only 8% of the world’s forests are certified – have we stalled?
Only 26% of the world’s industrial roundwood supply is certified – after
almost 20 years of forest certification
66% of the total area certified to PEFC
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4. Challenge 2: Distribution of certification
82 million ha, 26% of
world’s certified forests
60
52.8
180 million ha, 56% of world’s
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certified forests
% of total forest area
40 38.3
30
20
10 5.2
2.8 2.5 0.9 0.8
0
Western North Oceania CIS Latin America Africa Asia
Europe America
CIS = Commonwealth of independent states
4 Source: UNECE/FAO Forest Products Annual Market Review 2008-2009

5. Challenge 3: Securing Market Access
Legislation and procurement policies as drivers for sustainable
and legal timber stimulate demand for certified product and are
welcomed:
Legislation (Lacey Act, Due Diligence Proposal EU)
Bilateral Agreements – FLEGT; MoU China & Indonesia, etc
Public Procurement Policies (CPET, TPAC, ICLEI, EU Ecoflower etc)
Green Buildings initiatives
Responsible Purchasing Policies & Codes of Conduct
Need to ensure they remain drivers and do not become barriers
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6. Context of the PEFC Revision
Governance Review 2008
New Strategic Plan
General Review of Statutes and Documents
chain of custody and requirements for C-o-C certification bodies,
requirements for standard setting, forest management standards
and regional/group certification,
requirements for FM CBs and PEFC endorsement process.
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7. Current stage of the PEFC C-o-C standard
revision
• The PEFC BoD has sent the final draft standard (FD) back to the
PEFC CoC WG to address to following issues:
• GMOs (completed)
• recycled material (completed),
• Eligibility criteria for “group C-o-C certification” (BoD to
decide on three options)
• Labour, health and safety requirements (public
consultation until 23 July 2010)
In addition, extension of the scope of “controversial sources” is under
discussion.

8. Social issues in PEFC C-o-C: Why?
Have always been in Forest Management Standard incl.
fundamental ILO Conventions
Chain of Custody was always seen as pure wood flow
accounting system
PEFC Chain of Custody never made statements about:
Quality of Wood
Durability
C02 footprint etc.
But what happens if factory violates basic values e.g. uses
child labour and then logo?
After initial consultation Board responded by requiring
safeguards to be developed and added and it is these we are
8 consulting on today

9. Social issues in PEFC C-o-C: How?
• Through “mandatory appendix” to the revised C-o-C
standard
Basic principles of the proposal
• Requirements being mandatory for all chain of custody
holders
• Based on Fundamental ILO Conventions
• Requirements based on combination of policy and
performance requirements
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10. Appendix x: Social, health and safety requirements in chain of custody
Mandatory
Scope
This Appendix includes requirements relating to health, safety and labour issues that are based
on fundamental ILO (International Labour Organisation) conventions.
Definitions
Fundamental ILO Conventions
Eight conventions (ILO 29, 87, 98, 100, 105, 111, 138 and 182) identified by the ILO's Governing
Body as "fundamental“….,
Requirements
3.1 The organisation shall have documented policy that includes the organisation’s
commitment to implement and comply with the social, health and safety requirements defined in
this standard.
3.2 The organisation shall demonstrate that it:
a) ensures workers’ freedom of associations and rights for collective bargaining. These include
working contracts which do not prevent workers from joining/participating in workers
organisations and collective bargaining; workers’ access to their representatives; transparent
procedures for dismissal and bargaining with workers’ representatives of legally recognised
labour organisations where this is required or permitted by law.
b) prohibits the use of forced labour covering the organisation,
c) ensures minimum age for the employment of employees,
d) ensures equal employment that covers recruitment, promotion, division of work and
dismissal,
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e) ensures occupational health and safety, including its documentation and reporting.

11. Questions and answers
Participate in online consultation: www.pefc.org, click on Get
involved - Public consultations (open until 23rd July 2010)
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