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Revision of the PEFC chain of custody standard (PEFC ST 2002:2010)

16th February 2011

Presentation: Mr. Jaroslav Tymrak, Head of Technical Unit

PEFC Webinar:

Formal adoption of the new standard

• PEFC ST 2002:2010 (C-o-C standard) and PEFC ST 2001:2008, second edition (PEFC Logo usage rules) were adopted in November 2010

• Transition period ends on 26 November 2011 (companies shall implement the requirements of the new standard after this date and any audit after this date shall be carried out against the new standard)

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Structure of PEFC documentation for C-o-C

• PEFC ST 2001:2008, v2: PEFC Logo usage rules – requirements

• PEFC ST 2002:2010: Chain of custody of forest based products – requirements

Normative

• PEFC GD 100x:20xx (draft): Chain of custody of forest based products – guidance for use

• Communication and training tools (brochures, website, FAQ, etc.)

Informative

Training and support

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Scope

• forest based products only (Annex 4 is more general),

• for PEFC claims or specific claims of PEFC endorsed schemes (Annex 4 is more general, also allows the standard to serve for company’s own claims),

• “Who needs the chain of custody?” and “Who can have chain of custody?” is answered in the term “organisation” , i.e. an entity which is making the claims and can define a supplier and a customer, (the C-o-C approach remains the same as Annex 4),

• labeling is optional (the same as Annex 4),

• chain of custody only implemented for the purposes of third party certification (Annex 4 is more general, allows the standard to be also used for self-declarations or second party verification),

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Chain of Custody model (clarified)

Chain of Custody Process

Management System

Supplier’s claim

Claim to customer

C-o-C Process

Management System

Supplier’s claim

Claim to customer

C-oC Process

C-oC Process

Supplier’s claim

Claim to customer

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Requirements for input / output information

Information for delivery of all material:

a) organisation’s identification (new) as the customer of the deliveryb) supplier identification: in order to be able to verify the supplier’s status,c) products identification (new)d) date: in order to properly use the input material in the calculation and to

verify the supplier’s status (valid at the time of the delivery),e) volume: in order to use the input material in the calculation,

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Requirements for input / output information

Information for delivery of certified material / products:

a)formal claim ”x % PEFC certified” (new)

b) supplier’s certification number (new) (a copy of the certificate will be required only once, not for every delivery)

In addition, the organisation shall have a copy or access to a copy of the supplier’s C-oC certificate.

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Definition of the product group (previously “production batch”)

- The term “production batch” has been replaced by two terms:

- Product group (products for which the percentage is calculated), limited by the “same input material” and “a single

production site”

- Claim period (defines time period for which the calculated percentage apply), 3 months maximum

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Usage of PEFC methods (remains the same with clarifications)

Physical separation

Percentage distribution• Average percentage• Volume credit

Percentage calculation• Simple percentage• Rolling average

The company can choose its own methods or combination of methods (for individual product groups).

Percentage methods

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Volume credit method

- Volume credit account mandatory (new),

- Option for calculating credits directly from claimed input material based on input/output ratio (new),

Annex 4 approach New option (PEFC ST 2002:2010)

Input (100 m3)

Percentage

Output (60 m3)

Certified, 70 m3

70%

Credit, 42 m3

Cert. input

Input/output ratio

Credit

Certified, 70 m3

0.60

Credit, 42 m3

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C-o-C Verification Process

Origin identification

Percentage calculation

Sale and communication

Transfer of percentage to output products

Resources Control

Top Management responsibilities Review

Management system

C-o-C process

Responsibilities and authorities

Documented procedures

Record control

Management system requirements

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Top management responsibilities - Responsibilities originally required from the top management are to be

required generally from the organisation (new)

Documented procedures

- Clarified, with documented procedures for due diligence system, internal audits and complaints resolution (new).

Records keeping

- Clarified, with keeping records for due diligence system and complaints resolution (new).

Complaints (new)

- The new draft includes requirements for the organisation’s complaints resolution process (acknowledgement of the complaint, gathering and verification of information, communication of the decision, corrective and preventive measures),

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Subcontracting (new)

- Requirements for “sub-contracting” which would be covered by the company’s C-o-C certification.

- The sub-contracting will only cover activities where

(i) the subcontractor receives material/product from and send it back to the company (not involved in procurement of sale of products) and

(ii) the subcontractor is not mixing the received material/products with other material.

The organisationSupplier Customer

Subcontractor13

Recycled material – Definition (new)

The final solution (consistent with ISO 14021):

(i)combines pre- and post-consumer definitions into one definition of “recycled material”

(ii)keeps exclusion of sawmilling by-products,

(iii)keeps the exclusion of material (waste) being able to be used in the same process.

The final solution provides the same level of recognition for pre-consumer and post-consumer recycled material

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Recycled material - PEFC claim and recognition (new)

PEFC chain of custody results in a single claim “PEFC certified” which equally recognises material from PEFC certified forests (primary fibres) and recycled material

The company shall know and communicate (upon request) the content of recycled material (based on ISO 14021).

The “content of recycled material” would then be used as criterion for the usage of a PEFC label

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Usage of the PEFC Logo (PEFC ST 2001:2008, v2) (new)

PEFC certified:

• > 70 % of “PEFC certified” material,

• < 85 % recycled material (verified based on ISO 14021)

PEFC recycled:

• > 70 % of “PEFC certified” material,

• > 70 % recycled material (verified based on ISO 14021)

The “PEFC recycled” label can be used with and without the Mobius loop symbol.

“Due diligence system” (renamed from “avoidance of …)

Scope (new):

- Shall be implemented for product groups covered by percentage based methods and their input material, except: (a) PEFC certified material / products, (b) recycled material, (c) material covered by the supplier’s PEFC C-o-C, (d) material covered by the supplier’s PEFC DDS

- Can be implemented for other product groups and by organisations without chain of custody,

- On-product claims are not allowed,

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Due diligence system

Definition of controversial sources:

Forest management activities which are:

a) not complying with applicable local, national or international legislation relating to the following areas (clarified):

• forestry operations and harvesting, including conversion of forest to other use,• management of areas with high environmental and cultural values designed

and covered by the legislation,• protected and endangered species, including requirements of CITES,• health and labour issues relating to forest workers,• property, tenure and use right of indigenous people,• payment of taxes and royalties

b) utilising GMOs (new)c) converting forest to other vegetation types, including conversion of primary forests to forest plantations. (new)

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Due diligence system (new)

The following changes have been introduced:

- An explicit threshold (5) have been made for transparency international PCI

- The sample of “inspected” supplies is calculated as square root of number of high risk supplies covering all suppliers delivering the high risk supplies.

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Organisations with multiple production locations (multisite/group) (clarified)

The organisation with multiple production locations covers:

a) multisite organisations such as organisations operating with franchises or companies with multiple branches and

b) producers group of independent enterprises (producers group).

The same set of requirements (with a few exemptions) however apply for both scenarios.

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Organisations with multiple production locations

New elements:

a) size limitation for producer group,

b) producer group shall be located in one country,

c) detailed requirements for the central office responsibilities (having commitments, contractual relationship with sites, information and guidance service, records keeping, documented procedures, internal audits, conformity review).

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Appendix 4: Social, health and safety requirements in chain of custody (new) 

Scope

This Appendix includes requirements relating to health, safety and labour issues that are based on ILO Declaration on Fundamental Principles and Rights at Work, 1998.

 

Requirements

2.1 The organisation shall demonstrate its commitment to comply with the social, health and safety requirements defined in this standard.

2.2 The organisation shall demonstrate that:

a)workers are not prevented from associating freely, choosing their representatives, and bargaining collectively with their employer,

b)forced labour is not used,

c)workers, who are under the minimum legal age, the age of 15 , or the compulsory school attendance age, which ever is higher, are not used,

d)workers are not denied equal employment opportunities and treatment,

e)working conditions do not endanger safety or health.2222

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Thank you for your attention

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Questions and Answers

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