Protecting forests: the role of the EU and the case for mandatory - PowerPoint PPT Presentation

Protecting forests: the role of the EU and the case for mandatory due diligence Next steps in the EU and other jurisdictions on forest-risk commodities – 10 October 2019 1

EU context – long awaited Communication From 2008 to 2019 2014/2017 2013 Study EU 2019 2008 2018 Studies consumption Communication Communication Conferences 2

2019 Communication • Strong signal sent by the outgoing Commission to the next • Strongly supports the global approach, including a combination of supply side and demand side measures, in a partnership with producer and consumer countries, as well as with business and civil society:  Strengthen the policy and regulatory framework  Scale up efforts to support the rights of indigenous peoples and local communities  Develop incentive mechanisms for smallholder farmers to encourage sustainable agriculture production  EU trade agreements – encourage trade of agricultural products not causing deforestation  Assessment of additional regulations to minimise the risk of deforestation and forest degradation from commodity imports into the EU  pushing corporations to act responsibly 3

2019 Communication: what next? • EU failed to meet its own objectives to reduce gross tropical deforestation by 50% by 2020 • All indicators point to the emergency of protecting natural forests – immediate need to deliver the actions set out in the Communication • ClientEarth welcomes the EC Communication • Need from other EU institutions to support the Communication • More development needed for some of the EU priorities 4

Why do we need new regulatory measures? • Tree cover loss is rising • Guidelines and voluntary approaches are not enough • Interest of companies themselves – currently facing significant material risks: reputational, financial and legal • Help investors to fulfil their own commitments and obligations 5

What ClientEarth is suggesting: Mandatory due diligence • Based on our experience in the timber sector, and Global Witness’ experience in the extractive sector • Meaning of due diligence: ‘proactive and reactive process through which companies put in place systems and processes to make sure they are able to identify, manage and report on risks in their supply chain’ 6

Key steps of a due diligence process • Identify and assess risks and impacts : pinpoint potential or actual adverse impacts on people and the environment that could result from a company’s operations and its business relationships, within its supply chain • Take actions on risks and impacts identified – by preventing, mitigating and potentially ceasing • Monitoring and tracking responses • Stakeholder participation 7

Key questions for forthcoming legislation • Defining risks – the need for clear standards: human rights and environmental standards • Product scope: wide range of products • Scope of companies and the meaning of supply chain • Transparency and reporting: essential for implementation • Enforcement: penalty regime, enforcement authority, role of third parties like NGOs… 8

Thank you Clotilde Henriot Senior Law and Policy Advisor t +44 (0)20 30 30 5973 Chenriot@clientearth.org 9