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Canada - forestry

This is a filtered view based on 2014 - Forests Risk Assessment.

Row numberYearOrganizationCountry HQForest Risk CommodityForest Risk AssessmentForest Risk ProcessRegulatory risks - Risk PresentRegulatory risks - Further DetailsReputational Risks - Risk PresentReputational Risks - Further DetailsOperational Risks - Risk PresentOperational Risks - Further DetailsWater 2014 - Number of drivers
2012014Neste Oil OyjFinlandBiofuelsYesNeste Oil buys certified ethanol for blending of 95 E10 and 98 E5 gasoline grades. Global ethanol supply is well established and based on several suppliers, enabling stabile availability of acceptable products. Therefore, risks are less significant than e.g. with palm oil.Non-material riskEthanol production has been concentrating in North and South America, mainly in Brazil and the USA. Both countries have well established agricultural land use controls in place. Therefore, taking into account the limited ethanol volumes Neste Oil uses in order to fulfil domestic gasoline mandates, and diverse sourcing options in the world ethanol market, the regulatory risks can be regarded as non-material.Non-material riskThe production of ethanol, especially sugar cane based may create a significant risk if the additional land use is done in a non-responsible way. Corn and wheat as raw materials are sharing the same concerns as any large-scale cultivation. Novel processes, such as enzymatic ligno-cellulosic ethanol are in the ramping-up phase. As the penetration of ethanol in the global gasoline pool is so wide, the reputational risk can be regarded as non-material.Non-material riskThe availability of RED compliant ethanol in the future might create an operational risk. On the other hand, there are several countries and companies involved in the ethanol business, which may decrease the risk on the longer run.
2022013NestléSwitzerlandTimberYes or 100% third party certified raw materials already achievedNestlé conducted an initial sustainability risk assessment which identified this as a high risk commodity. Priority countries have been identified where we are concentrating our traceability efforts and supplier engagement assessments. Material riskWe see increasing regulatory activity at a national and international level which can pose both challenges and opportunities to companies Material riskOur consumers want to know what's in their food, where it comes from and how it has been produced. We also see ongoing civil society activity and public interest on these commodities, in some cases to substitute them. We believe that there are responsible ways to grow and process these crops and so have decided to establish RSGs and are working with our suppliers to remove any deforestation from our supply chains. Material riskYes, unsustainable practices at the supplier level create risks of short term supply disruptions and long term risks to the sustainability/availability of supplies. Equally our process of working towards more sustainable practices leads to operational challenges in finding compliant suppliers. We tackle this through supplier training and support.
2032013NestléSwitzerlandPalm OilYes or 100% third party certified raw materials already achieved Nestlé conducted an initial sustainability risk assessment which identified this as a high risk commodity. Priority countries have been identified where we are concentrating our traceability efforts and supplier engagement assessments Material riskWe see increasing regulatory activity at a national and international level which can pose both challenges and opportunities to companies Material riskOur consumers want to know what's in their food, where it comes from and how it has been produced. We also see ongoing civil society activity and public interest on these commodities, in some cases to substitute them. We believe that there are responsible ways to grow and process these crops and so have decided to establish RSGs and are working with our suppliers to remove any deforestation from our supply chains. Material riskYes, unsustainable practices at the supplier level create risks of short term supply disruptions and long term risks to the sustainability/availability of supplies. Equally our process of working towards more sustainable practices leads to operational challenges in finding compliant suppliers. We tackle this through supplier training and support.
2042013NestléSwitzerlandCattle ProductsYes or 100% third party certified raw materials already achievedNestlé conducted an initial sustainability risk assessment which identified this as a high risk commodity. Priority countries have been identified where we are concentrating our traceability efforts and supplier engagement assessments Material riskWe see increasing regulatory activity at a national and international level which can pose both challenges and opportunities to companies Material riskOur consumers want to know what's in their food, where it comes from and how it has been produced. We also see ongoing civil society activity and public interest on these commodities, in some cases to substitute them. We believe that there are responsible ways to grow and process these crops and so have decided to establish RSGs and are working with our suppliers to remove any deforestation from our supply chains. Material riskYes, unsustainable practices at the supplier level create risks of short term supply disruptions and long term risks to the sustainability/availability of supplies. Equally our process of working towards more sustainable practices leads to operational challenges in finding compliant suppliers. We tackle this through supplier training and support.
2052013NestléSwitzerlandSoyYes or 100% third party certified raw materials already achievedNestlé conducted an initial sustainability risk assessment which identified this as a high risk commodity. Priority countries have been identified where we are concentrating our traceability efforts and supplier engagement assessments Material riskWe see increasing regulatory activity at a national and international level which can pose both challenges and opportunities to companies Material riskOur consumers want to know what's in their food, where it comes from and how it has been produced. We also see ongoing civil society activity and public interest on these commodities, in some cases to substitute them. We believe that there are responsible ways to grow and process these crops and so have decided to establish RSGs and are working with our suppliers to remove any deforestation from our supply chains. Material riskYes, unsustainable practices at the supplier level create risks of short term supply disruptions and long term risks to the sustainability/availability of supplies. Equally our process of working towards more sustainable practices leads to operational challenges in finding compliant suppliers. We tackle this through supplier training and support.
2062014NestléSwitzerlandTimberYesOur risk assessment process at the high level identified commodities that are material for Nestlé in terms of spend, known risks (in this case deforestation) and consumer interest/reputation. This highlighted timber products as high risk. At an operational level we use a more fine level risk assessment to target our waves of interventions. At this level we again look at main sourcing countries, and the presence of known risks at a country/company level. In addition market demand is also factored in as this can help speed up implementation. The presence of certification schemes which are aligned with our Responsible Sourcing Guidelines can reduce the risk and the priority that we give. Material riskWhere deforestation occurs in contravention of international, national or local legislation, or in contravention of concession provisions. For example on land ownership, specific forest law provisions, human rightsMaterial riskIn addition to the above (ie regulatory risks), where deforestation occurs within the law but outwith our policy or the expectations of society. All of these occurrences can lead to NGO campaigns, press commentary, customer and consumer boycottsNon-material riskAs a global company we buy paper packaging products from a very wide range of countries and suppliers (who are very numerous). This limits the risk of supply disruptions. There is often also a degree of substitution potential from alternative packaging materials which also reduces risk. Our approach to working with suppliers to help then improve their sustainability performance also mitigates risk rather than only trying to buy products that meet our RSG requirements.
2072014NestléSwitzerlandPalm OilYesOur risk assessment process at the high level identified commodities that are material for Nestlé in terms of spend, known risks (in this case deforestation) and consumer interest/reputation. This highlighted palm oil as high risk. As per the above, at an operational level we use a more fine level risk assessment to target our waves of interventions. At this level we again look at main sourcing countries, and the presence of known risks at a country/company level. In addition market demand is also factored in as this can help speed up implementation. The presence of certification schemes which are aligned with our Responsible Sourcing Guidelines can reduce the risk and the priority that we give.Material riskWhere deforestation occurs in contravention of international, national or local legislation, or in contravention of concession provisions. For example on land ownership, specific forest law provisions, human rights. In addition to producer country laws, there are early moves to instigate import lagislation on palm oil (mirroring the Lacey Act and EU Timber import regulations)Material riskIn addition to the above (ie regulatory risks), where deforestation occurs within the law but outwith our policy or the expectations of society. All of these occurrences can lead to NGO campaigns, press commentary, customer and consumer boycotts. Currently palm oil is the commodity with the highest material risk in this categoryNon-material riskAs a global company we buy palm oil products from a wide range of suppliers (who are very numerous). This limits the risk of supply disruptions. There is often also a degree of substitution potential from alternative oils which also reduces risk. Our approach to working with suppliers to help then improve their sustainability performance also mitigates risk rather than only trying to buy products that meet our RSG requirements.
2082014NestléSwitzerlandCattle ProductsYesOur risk assessment process at the high level identified commodities that are material for Nestlé in terms of spend, known risks (in this case deforestation) and consumer interest/reputation. This highlighted cattle products as high risk. At an operational level we use a more fine level risk assessment to target our waves of interventions. At this level we again look at main sourcing countries, and the presence of known risks at a country/company level. In addition market demand is also factored in as this can help speed up implementation. in the case of cattle products we have quickly determined that we do not have exposure to cattle products sourced from areas where deforestation is occurring. Our responsible sourcing programme does look at other issues beyond deforestation so work continues in this area Material riskWhere deforestation occurs in contravention of international, national or local legislation, or in contravention of concession provisions. For example on land ownership, specific forest law provisions, human rightsMaterial riskIn addition to the above (ie regulatory risks), where deforestation occurs within the law but outwith our policy or the expectations of society. All of these occurrences can lead to NGO campaigns, press commentary, customer and consumer boycottsNon-material riskAs a global company we buy cattle products from a wide range of countries and suppliers (who are very numerous). This limits the risk of supply disruptions. Our approach to working with suppliers to help then improve their sustainability performance also mitigates the risk rather than only trying to buy products that meet our RSG requirements.
2092014NestléSwitzerlandSoyYesOur risk assessment process at the high level identified commodities that are material for Nestlé in terms of spend, known risks (in this case deforestation) and consumer interest/reputation. This highlighted soya products as high risk. At an operational level we use a more fine level risk assessment to target our waves of interventions. At this level we again look at main sourcing countries, and the presence of known risks at a country/company level. In addition market demand is also factored in as this can help speed up implementation. The presence of certification schemes which are aligned with our Responsible Sourcing Guidelines can reduce the risk and the priority that we give.Material riskWhere deforestation occurs in contravention of international, national or local legislation, or in contravention of concession provisions. For example on land ownership, specific forest law provisions, human rightsMaterial riskIn addition to the above (ie regulatory risks), where deforestation occurs within the law but outwith our policy or the expectations of society. All of these occurrences can lead to NGO campaigns, press commentary, customer and consumer boycottsNon-material riskAs a global company we buy soya products from a wide range of countries and suppliers (who are very numerous). This limits the risk of supply disruptions. Our approach to working with suppliers to help then improve their sustainability performance also mitigates the risk rather than only trying to buy products that meet our RSG requirements.
2102013New Britain Palm OilPapua New GuineaPalm OilYes or 100% third party certified raw materials already achievedThe recent nbpol carbon footprint report identifies the direct and indirect - impacts of NBPOL operations on GHG emissions. This 12 month study identifies the key areas for emissions. A summary page is given in the NBPOL Sustainability report and is attached (Extract SR 2010-2011 = p31). The carbon report is too big to attach. In addition 99% of NBPOL's business is oil palm. The oil palm is subject to an annual SIA and EIA under the ISO 14001 EMS which has identified all social and environmental risks associated with oil palm and has allowed management strategies to be implemented which mitigate the negative and maximise the positive. new Developments are subject to the RSPO New Planting Procedure which include SEIA and HCV and in addition NBPOL has instituted High Carbon Stock and soil and topography assessments This work has continued and now has been expanded to all operational sites. NBPOL has been a leading player in the RSPO GHG working group and instrumental in forming the "PalmGHG"carbon calculator tool for plantations which is at the heart of the RSPO carbon reporting.Material riskNBPOL exports to EU countries where governments and the public are aware of the issues facing palm oil. Strong legislation exist in all aspects of the Supply chain. PNG and the Solomon Islands have strong environmental , social and labour regulations which are supported and enhanced by the voluntary commitments to the RSPO National Interpretation in these countries NBPOL is listed on the London Stock exchange and is governed by UK legislation and example of which is the UK Bribery Act.Material riskBuying from smallholders represents a material risk in relation to maintaining the certification status of the oil produced. All NBPOL oil is segregated and certified . Non-material riskLoss of smallholders from the supply base would not significantly impact the business.
2112013New Britain Palm OilPapua New GuineaCattle ProductsYes or 100% third party certified raw materials already achievedThere are 18,000 head of cattle. Some 5,000 are integrated entirely with the oil palm operations and are grazed on NBPOL-owned land which has a no-deforestation policy and are subject to the same scrutiny as all other operations. The ISO 14001 Environmental Managment system has identified both the positive and negative impacts of cattle on the environment. The remaining herd is grazed exclusively in the Markham valley an anthropogenic grassland which has not sustained forest for at least 200 years. This herd is subject to the same EMS system which has identified all risks. A carbon emissions calculation has been made on the smaller herd and is concidered to be negliable.Material riskPNG Public Health and Hygiene and Food safety legislation Non-material riskTotally in house. Income from livestock is 1% of spend therefore not concidered material to the global exposure of NBPOL No riskThere is no buying of this commodity from external sources
2122014News CorpUSATimberYesNews Corp’s process for identifying deforestation risks and/or opportunities is the same process used to identify and monitor other pressures that could similarly impact the business. To identify these risks, we use the same process used to identify and monitor other pressures that could similarly impact the business. At the enterprise level, News Corp uses a risk assessment process to identify and track substantive business risks. (For the purposes of this CDP response, News Corp has defined “substantive” to mean noteworthy or caused by something other than mere chance, but does not necessarily include the concept of materiality within the meaning of the securities laws nor would it necessarily have meaningful financial impact). The enterprise risk framework includes an analysis including those risks that may be a result of climate change related impacts. The nature of the Global Environmental Initiative (GEI) as a corporate-wide program ensures senior management involvement and frequent reviews of the GEI’s progress and findings. As part of this corporate-wide program, impacts on and risks to the business overall are regularly shared with senior management, including members of the board.Non-material riskAt this time there is no regulatory risk to News Corp related to deforestation. We do not source our paper from illegally harvested fiber, endangered forests, Indonesian tropical rainforests, mixed tropical hardwood, or Acacia and Ramin trees. If we were to change our suppliers, we would re-evaluate our risks at that time.Material riskThis is a material risk but mitigated by the strong relationships we maintain with our suppliers to know the source of our paper purchases.Non-material riskAs we have held ourselves to the standard of only procuring paper from certified mills, there could potentially be a risk of supply. However, we have evaluated the supply availability of the products we require and deem that to be a non-material risk.
2132013News UKUnited KingdomTimberPublic disatisfaction
2142013Office Depot, Inc.USATimberPartialWe have partnered with WWF to start assessing our forest risks in North America and joined their WWF Forest and Trade Network. We plan to work with suppliers to understand the ultimate forest source of many of our high volume paper products. We will then overlay the source with a risk 'heat map' that WWF provides us.Material riskLACEY Act in the US and EUTR / FLEGT timber regulationsMaterial riskRisk associated with sourcing from the Boreal Canada and certain SFI certified forests from the US South - if there is conversion from biodiverse forests to monoculture plantations.Material riskIf permanent deforestation or widespread degradation occurs, in current or future sourcing regions, we could face supply constraints in one of our primary product categories.
2152014Office Depot, Inc.USATimberPartialWe have partnered with WWF to start assessing our forest risks in North America and UK/Ireland and joined their WWF Forest and Trade Network. We plan to work with suppliers to understand the ultimate forest source of many of our high volume paper products. We will then overlay the source with a risk 'heat map' that WWF provides us.Material riskLACEY Act in the US and EUTR / FLEGT timber regulationsMaterial riskRisk associated with sourcing from the Boreal Canada and certain SFI certified forests from the US South - if there is conversion from biodiverse forests to monoculture plantations.Material riskIf permanent deforestation or widespread degradation occurs, in current or future sourcing regions, we could face supply constraints in one of our primary product categories.
2162013Olam InternationalSingaporeTimberYes or 100% third party certified raw materials already achievedWe assess the physical, regulatory and reputational risks for our operation against the 10 principles necessary to achieve FSC certification. The ten FSC Principles require the forest owner or manager to do the following: Principle 1: Compliance with laws and FSC Principles – to comply with all laws, regulations, treaties, conventions and agreements, together with all FSC Principles and Criteria. Principle 2: Tenure and use rights and responsibilities – to define, document and legally establish long-term tenure and use rights. Principle 3: Indigenous peoples’ rights – to identify and uphold indigenous peoples’ rights of ownership and use of land and resources. Principle 4: Community relations and worker's rights – to maintain or enhance forest workers' and local communities’ social and economic well-being. Principle 5: Benefits from the forest – to maintain or enhance long term economic, social and environmental benefits from the forest. Principle 6: Environmental impact – to maintain or restore the ecosystem, its biodiversity, resources and landscapes. Principle 7: Management plan – to have a management plan, implemented, monitored and documented. Principle 8: Monitoring and assessment – to demonstrate progress towards management objectives. Principle 9: Maintenance of high conservation value forests – to maintain or enhance the attributes which define such forests. Principle 10: Plantations – to plan and manage plantations in accordance with FSC Principles and Criteria. We use independent third party accredited auditors to verify our operation complies with the Principles and Criteria of the FSCMaterial riskFLEGT is in the process of being implemented in CIB. Please see our webpage for our response and why FSC would address this riskMaterial riskYes but mitigated through the actions required to achieve and maintain the FSC certificateMaterial riskYes but mitigated through the CIB operational management system
2172013Oriflame Cosmetics ABSwedenTimberYes or 100% third party certified raw materials already achievedTimber products and their specific risks are part of a risk assessment process where factors such as Oriflame's environmental and social impact, other sourcing risks, regulatory risks and reputational risks are taken into consideration globally and in specific regions. The outcomes of these assessments help prioritise actions.Non-material riskEU Timber regulation only concerns a minor share of Oriflame products, we have a process in place to help ensure we fulfill regulatory requirements.Material riskOriflame is a large consumer of paper products (by selling through catalogues and not through retail outlets) and recognises that we have an important role in preventing deforestation and forest degradation. Therefore reputational risks are material if not managed correctly.No risk
2182013Oriflame Cosmetics ABSwedenPalm OilYes or 100% third party certified raw materials already achievedPalm oil derivatives and their specific risks are part of a risk assessment process where factors such as Oriflame's environmental and social impact, other sourcing risks, regulatory risks and reputational risks are taken into consideration globally and in specific regions. The outcomes of these assessments help prioritise actions.No riskMaterial riskThere are serious environmental pressures caused by the palm oil industry’s rapid expansion into eco-sensitive areas making the reputational risk material (e.g. through media coverage or NGO action).Material riskThere are serious environmental pressures caused by the palm oil industry’s rapid expansion into eco-sensitive areas making the operational risks high. Currently the numbers of suppliers providing segregated palm oil derivatives are few, increasing the supply risks for Oriflame.
2192014Oriflame Cosmetics ABSwedenTimberYesTimber products and their specific risks are part of a risk assessment process where factors such as Oriflame's environmental and social impact, other sourcing risks, regulatory risks and reputational risks are taken into consideration globally and in specific regions. The outcomes of these assessments help prioritise actions.Non-material riskEU Timber regulation only concerns a minor share of Oriflame products, we have a process in place to help ensure we fulfill regulatory requirements.Material riskOriflame is a large consumer of paper products (by selling through catalogues and not through retail outlets) and recognises that we have an important role in preventing deforestation and forest degradation. Therefore reputational risks are material if not managed correctly.No risk
2202014Oriflame Cosmetics ABSwedenPalm OilYesPalm oil derivatives and their specific risks are part of a risk assessment process where factors such as Oriflame's environmental and social impact, other sourcing risks, regulatory risks and reputational risks are taken into consideration globally and in specific regions. The outcomes of these assessments help prioritise actions.No riskMaterial riskThere are serious environmental pressures caused by the palm oil industry’s rapid expansion into eco-sensitive areas making the reputational risk material (e.g. through media coverage or NGO action).Material riskThere are serious environmental pressures caused by the palm oil industry’s rapid expansion into eco-sensitive areas making the operational risks high. Currently the numbers of suppliers providing segregated palm oil derivatives are few, increasing the supply risks for Oriflame.
2212014Orkla ASANorwayPalm OilYesThe risk assessment process regarding usage of palm oil has been implemented as part of the overall risk assessment work in Orkla ASA.No riskOrkla is not directly involved in production of palm oil and will be able to switch to alternatives if necessary.Non-material riskThe usage of palm oil in any products will expose you for reputational risk both with regard to health and deforestation/climate issues.No riskOrkla is not involved in any upstream activities regarding production, transport or distribution of palm oil. A sudden shortage in the market could potentially distort our production capacity for certain products.
2222013PearsonUnited KingdomTimberYes or 100% third party certified raw materials already achievedWe use the PREPS database which holds technical specifications and details of the pulps and forest sources of the papers we use. Based on the forest source information, each paper is awarded a grade of 1, 3, or 5 using the PREPS Grading System. This considers the country of origin of the wood fibre and how the forest sources have been managed. We also use the WWF Forest and Trade Network system to assess risk.Non-material riskThe EU Timber Regulation (EUTR) came into force in 2013. Currently, we are not covered within the scope as printed paper - books, magazines and newspapers are excluded. That could change. The Lacey Act in the United States also sets out rules relating to responsible paper purchase.Non-material riskA number of environmental campaigning groups are concerned over the loss of natural forest and threats to biodiversity arising from the pulp and paper industry. Our approach is to review all the papers we purchase against the PREPS grading tool on certification and well managed forests. The PREPS approach incorporates a country forest risk assessment designed to help assess threats to High Conservation Value Forests and to avoid controversial fibre entering the supply chain. Only papers graded 3 or above under the PREPS system meets our standards. Paper and pulp sourced from Indonesia is a key area of focus and no paper manufactured in Indonesia or paper that contains pulp from Indonesia meets our standards. Our use of PREPS is well established among production teams in Pearson. We also communicate our standards to printers and others who purchase paper on our behalf.Non-material riskThere is a risk of supplier failure.
2232014PearsonUnited KingdomTimberYesWe use the PREPS database which holds technical specifications and details of the pulps and forest sources of the papers we use. Based on the forest source information, each paper is awarded a grade of 1, 3, or 5 using the PREPS Grading System. This considers the country of origin of the wood fibre and how the forest sources have been managed. We also use the WWF Forest and Trade Network system to assess risk.Non-material riskThe EU Timber Regulation (EUTR) came into force in 2013. Currently, Pearson products are not covered within the scope as printed paper - books, magazines and newspapers are excluded. That could change and Pearson would support such a development. The Lacey Act in the United States also sets out rules relating to responsible paper purchase.Non-material riskA number of environmental campaigning groups are concerned over the loss of natural forest and threats to biodiversity arising from the pulp and paper industry. Our approach is to prioritise FSC certified / PCW papers as well as to review all the papers we purchase against the PREPS grading tool on certification and well managed forests. The PREPS approach incorporates a country forest risk assessment designed to help assess threats to High Conservation Value Forests and to avoid controversial fibre entering the supply chain. Only papers graded 3 or above under the PREPS system meets our standards. Paper and pulp sourced from Indonesia is a key area of focus and no paper manufactured in Indonesia or paper that contains pulp from Indonesia meets our standards. Our use of PREPS is well established among production teams in Pearson. We also communicate our standards to printers and others who purchase paper on our behalf.Non-material riskThere is a risk of supplier failure which Pearson mitigates through the purchase from a range of suppliers . We use the PREPS system as well as chain-of-custody controls to ensure effective oversight of the material we purchase.
2242013PepsiCo, Inc.USATimberPartialThe raw materials and energy we use to produce our products are largely commodities subject to price volatility and fluctuations in availability caused by changes in global supply and demand, weather conditions, agricultural uncertainty or government incentives and controls. In the normal course of business, we manage these risks through a variety of strategies, including productivity initiatives, global purchasing programs and systematic hedging strategies. Our global purchasing programs include fixed price purchase orders and pricing agreements. Our hedging strategies include the use of derivatives, to economically hedge price fluctuations related to a portion of our anticipated commodity purchases, primarily for agricultural products, metals and energy. Commodity Risk Management provides reasonable predictability in cost across our global commodity exposures, while allowing for controlled flexibility to adapt to unique market circumstances. For timber, PepsiCo considers country of origin and supplier business continuity planning by region.Non-material riskFollowing COP 17 and the Rio +20 conferences, the REDD+ program has been made a higher priority globally and therefore changes in timber supply chains and timber derived commodities are forth coming.Non-material riskProper timber management and the impacts on forests have long been reputational issues. However due to our relatively small sourcing of timber based products, use of FSC and other sustainable certified products, PepsiCo is not under any material reputational risks in this area.Non-material riskFollowing COP 17 and the Rio +20 conferences, the REDD+ program has been made a higher priority globally and therefore changes in timber supply chains and timber derived commodities are forth coming.
2252013PepsiCo, Inc.USAPalm OilPartialThe raw materials and energy we use to produce our products are largely commodities subject to price volatility and fluctuations in availability caused by changes in global supply & demand, weather conditions, agricultural uncertainty or government incentives and controls. In the normal course of business, we manage these risks through a variety of strategies, including productivity initiatives, global purchasing programs and systematic hedging strategies. Our global purchasing programs include fixed price purchase orders and pricing agreements. Our hedging strategies include the use of derivatives, to economically hedge price fluctuations related to a portion of our anticipated commodity purchases, primarily for agricultural products, metals and energy. Commodity Risk Management provides reasonable predictability in cost across our global commodity exposures, while allowing for controlled flexibility to adapt to unique market circumstances. For palm oil, PepsiCo considers country of origin, supplier business continuity planning by region and commodity risk management through financial planning on market based commodities.Material riskPalm oil is coming under increasing pressure globally to be sourced in a sustainable and responsible manner. This is reflected in PepsiCo's commitment to source 100 percent of our Palm oil as RSPO by 2015.Material riskPalm oil is coming under increasing pressure globally to be sourced in a sustainable and responsible manner. This is reflected in PepsiCo's commitment to source 100 percent of our Palm oil as RSPO by 2015.Material riskPalm oil is coming under increasing pressure globally to be sourced in a sustainable and responsible manner. This is reflected in PepsiCo's commitment to source 100 percent of our Palm oil as RSPO by 2015.
2262014PepsiCo, Inc.USATimberPartialPepsiCo recognizes the impact that the supply of timber can have on deforestation, which is reflected in our Forestry Stewardship Policy and our Sustainable Packaging Policy. For timber, PepsiCo considers country of origin and supplier business continuity planning by region. We have identified specific goals at a regional level to address the risks identified.Non-material riskWe are seeing increasing interest from national and supra-national governments in the impact of deforestation and in setting regulations to increase transparency and reduce the environmental and social impacts of deforestation around the world. We are seeing increased international co-operation, for example through COP 17 and the Rio +20 conferences, which led to the REDD+ program enhancement, and at a practical level with the US Lacey Act and the European Union Timber Regulations. We believe that our Sustainable Packaging and Forestry Stewardship Policies reflect current science and will enable us to stay ahead of regulatory requirements.Material riskWe are seeing increasing interest from socially responsible investors, NGOs and the media on the link between timber for packaging and deforestation in companies’ own operations and supply chains. We also monitor the ongoing reaction of consumers to both negative associations with deforestation and timber, and interest in externally validated labeling as a way of reassuring consumers of the approach that specific brands and businesses take. We believe that our Sustainable Packaging and Forestry Stewardship Policies will manage the increasing reputational risks associated with timber and deforestation.Non-material riskThe raw materials and energy we use to produce our products are largely commodities subject to price volatility and fluctuations in availability caused by changes in global supply and demand, weather conditions, agricultural uncertainty or government incentives and controls. In the normal course of business, we manage these risks through a variety of strategies, including productivity initiatives, global purchasing programs and systematic hedging strategies. Our global purchasing programs include fixed price purchase orders and pricing agreements. Our hedging strategies include the use of derivatives, to economically hedge price fluctuations related to a portion of our anticipated commodity purchases, primarily for agricultural products, metals and energy. Commodity Risk Management provides reasonable predictability in cost across our global commodity exposures, while allowing for controlled flexibility to adapt to unique market circumstances. For timber, PepsiCo considers country of origin and supplier business continuity planning by region.
2272014PepsiCo, Inc.USAPalm OilPartialPepsiCo recognizes the impact that the supply of palm oil can have on deforestation, which is reflected in our Forestry Stewardship Policy, Palm Oil Commitments and Land Use Policy. For palm oil, PepsiCo considers country of origin, supplier business continuity planning by region and commodity risk management through financial planning on market based commodities. We have undertaken a detailed mapping of our palm oil supply chain, to the farm level, to better quantify the risks in various markets. PepsiCo is starting in Mexico, our largest single market of use for palm oil, to perform specific audits against these risks and to better quantify where corrective action is needed.Non-material riskPalm oil is coming under increasing pressure from investors, NGOs, the media, governments and business to be sourced in a sustainable and responsible manner. While most of the mechanisms to deliver more sustainable palm oil, such as the RSPO and NGO campaigns, are non-regulatory, we are seeing increasing interest from governments in using regulation to drive change. We believe that our Land Use and Forestry Stewardship Policies and Palm Oil Commitments will enable us to stay ahead of regulatory requirements.Material riskWe are seeing increasing interest from socially responsible investors, NGOs and the media on the link between palm oil and deforestation in companies’ own operations and supply chains. We also monitor the ongoing reaction of consumers to both negative associations with deforestation and palm oil, and interest in externally validated labeling as a way of reassuring consumers of the approach that specific brands and businesses take. We believe that our Sustainable Packaging and Forestry Stewardship will manage the increasing reputational risks associated with palm oil and deforestation.Non-material riskThe raw materials and energy we use to produce our products are largely commodities subject to price volatility and fluctuations in availability caused by changes in global supply and demand, weather conditions, agricultural uncertainty or government incentives and controls. In the normal course of business, we manage these risks through a variety of strategies, including productivity initiatives, global purchasing programs and systematic hedging strategies. Our global purchasing programs include fixed price purchase orders and pricing agreements. Our hedging strategies include the use of derivatives, to economically hedge price fluctuations related to a portion of our anticipated commodity purchases, primarily for agricultural products, metals and energy. Commodity Risk Management provides reasonable predictability in cost across our global commodity exposures, while allowing for controlled flexibility to adapt to unique market circumstances. For palm oil, PepsiCo considers country of origin, supplier business continuity planning by region and commodity risk management through financial planning on market based commodities.
2282014Pioneer FoodsSouth AfricaTimberNoN/ANo riskPioneer Foods is not aware of any regulatory risk related to this commodity.No riskPioneer Foods does not procure timber directly.No riskPioneer Foods does not believe there are operational risks associated with this commodity.
2292014Pioneer FoodsSouth AfricaPalm OilNoN/ANo riskPioneer Foods is not aware of any regulatory risk related to this commodity.Non-material riskConsumers are becoming more aware of the social and environmental impacts this product has in countries where these are produced, therefore there may be reputational risk for companies buying from suppliers in these geographical regions.No riskPioneer Foods does not believe there are operational risks associated with this commodity.
2302014Pioneer FoodsSouth AfricaSoyNoN/ANo riskPioneer Foods is not aware of any regulatory risk related to this commodity.No riskPioneer Foods is not aware of any reputational risks associated with this commodity.No riskPioneer Foods does not believe there are operational risks associated with this commodity.
2312013PrimeAsia Leather CompanyUSATimberYes or 100% third party certified raw materials already achievedLeather Working Group Audit evaluates how much of our incoming timber products are from recycled sources but not necessarily whether they are sustainably harvested sources. The LWG also evaluates where our timber products are discharged and whether they are recycled. This information will be given in further depth in the new LWG Protocol 6.0 starting in 2014.No riskNo riskNo risk
2322014PrimeAsia Leather CompanyUSACattle ProductsYesYes, PrimeAsia issued the PrimeAsia Procurement Policy and assures that all wet blue suppliers of hides to PrimeAsia follow the policy. Wet blue suppliers must be audited in the Leather Working Group guidelines, tested against the PrimeAsia Wet Blue RSL Policy and operate a hide traceability program. The hide traceability program that the wet blue supplier operates must be one of the following with preference for option 1, (1) documented traceability to slaughterhouse origin. With all hides physically marked, allowing traceability of individual hides. (2) Documented traceability to slaughterhouse origin of each shipment of hides.Material riskNo regulatory risk in the countries PrimeAsia manufactures, but PrimeAsia's suppliers risk regulatory risk in their countries where the cattle graze and are slaughtered.Material riskPrimeAsia prides itself on buying from reputable wet blue suppliers who meet strict standards. PrimeAsia's reputation is built on sourcing from suppliers who provide traceable hides. Customers choose to purchase leather from PrimeAsia because of this value added aspect of the company's product.No risk
2332013Quanta ComputerTaiwanTimberNononeMaterial riskOur company for the majority of packaging materials are paper productsMaterial risk1, use a lot of paper packaging materials, may increase the burden on forest protection; 2, the paper packaging may cause fire;Material risk1, the paper packaging materials are combustible, the fire risk; 2, paper packaging materials easy to damp, affect the appearance, may not be accepted by the customer; 3, the paper packaging material in the packaging process, easy to scratch, damage can lead to material waste
2342013Quanta ComputerTaiwanCattle ProductsNononeNo riskOur company is not using Cattle ProductsNo riskOur company is not using Cattle ProductsNo riskOur company is not using Cattle Products
2352013Quanta ComputerTaiwanSoyNononeNo riskOur company is not using Soy ProductsNo riskOur company is not using Soy ProductsNo riskOur company is not using Soy Products
2362014Quanta ComputerTaiwanTimberPartialDetermined the items,the quantity,the user department. Material riskOur company for the majority of packaging materials are paper products and wooden box.Material risk1, use a lot of paper packaging materials, may increase the burden on forest protection; 2, the paper packaging may cause fire;Material risk1, the paper packaging materials are combustible, the fire risk; 2, paper packaging materials easy to damp, affect the appearance, may not be accepted by the customer; 3, the paper packaging material in the packaging process, easy to scratch, damage can lead to material waste
2372014Quanta ComputerTaiwanPalm OilPartialDetermined the items,the amount,the user department.Material riskOur company use it for maintaining.Material riskUsing oil may cause water pollution.Material riskUsing oil may cause water pollution.
2382014Quanta ComputerTaiwanCattle ProductsPartialDetermined the items,the quantity,the user department.Non-material riskOur company is not using Cattle Products in the products.No risk Our company is not using Cattle ProductsNo riskOur company is not using Cattle Products in Products
2392013Reed Elsevier GroupUnited KingdomTimberYes or 100% third party certified raw materials already achievedThe company operates a multi-disciplinary company wide risk management processes. At a company level risks and opportunities (which are publically available at http://reporting.reedelsevier.com/cr12/environment/why-it-matters/risks-and-opportunities/) are laid out and reviewed once a year by our Environmental Champions network (which represents all areas of our business), reviewed by our Corporate Risk and Audit team and signed off by our Corporate Responsibility Forum, before being incorporated into the risk management process. Opportunities are explored as part of this process through dedicated working groups. The risk assessment covers: * Operational risk- including the security of supply, reliability of existing control measures * Regulatory - including compliance with existing regulations or schemes and the introduction of new regulations in different regions, such as the Lacey Act in the US or the Timber Regs in the EU. * Reputational - including customer reaction to the use of unsustainable fibre sources The risks identified through the above process are used in planning corporate targets/ objectives and in the environmental management system. Timber is included in the above process and reported as part of our published Corporate Responsibility report. Timber risks are managed through procurement by the use of the PREPS database. which holds technical specifications and details of the pulps and forest sources of the papers used by member organisations. Based on the forest source information, each paper is awarded a grade of 1, 3, or 5 using the PREPS Grading System. This considers the country of origin of the wood fibre and how the forest sources have been managed. Reed Elsevier policy is to use only papers graded 3 or above - these are the papers with known forest sources and certfication against a recognised standard.Material riskExisting control measures reduce the risk to an acceptable level. However, as regulations are introduced or updated we are reviewing the systems to ensure compliance with all requirements.Material riskAs a provider of professional information in environmental topics, any breach of standards in timber commodity sourcing could affect the perception of the integrity of those products or the company.Non-material riskOperational risks include increased weather disruptions and impacts from climate change. PREPS helps us to identify alternative sustainable supply options as security of supply is important.
2402014Reed Elsevier GroupUnited KingdomTimberYesThe company operates a multi-disciplinary companywide risk management processes. At a company level risks and opportunities (which are publically available at http://www.reedelsevier.com/corporateresponsibility/environment/Pages/risks-and-opportunities.aspx and include sustainable paper requirements) are laid out and reviewed once a year by our Environmental Champions network (which represents all areas of our business), reviewed by our Corporate Risk and Audit team and signed off by our Corporate Responsibility Forum, before being incorporated into the risk management process. Opportunities are explored as part of this process through dedicated working groups. The risk assessment covers: * Operational risk- including the security of supply, reliability of existing control measures * Regulatory - including compliance with existing regulations or schemes and the introduction of new regulations in different regions, such as the Lacey Act in the US or the Timber Regs in the EU. * Reputational - including customer reaction to the use of unsustainable fibre sources The risks identified through the above process are used in planning corporate targets/ objectives and in the environmental management system. Timber is included in the above process and reported as part of our published Corporate Responsibility report. Timber risks are managed through procurement by the use of the PREPS database, which holds technical specifications and details of the pulps and forest sources of the papers used by member organisations. Based on the forest source information, each paper is awarded a grade of 1, 3, or 5 using the PREPS Grading System. This considers the country of origin of the wood fibre and how the forest sources have been managed. Reed Elsevier policy is to use only papers graded 3 or above - these are the papers with known forest sources and certification against a recognised standard. The risk assessment leads to the annual review of the sustainable paper policy which commits the business to purchase sustainable paper and provides a framework for updating internal controls and processes.Material riskUS Lacy Act and European 'Due Diligence' EUTR We are obligated under the Lacy Act to ensure that we do not import, export, transport, sell, receive, acquire, or purchase in interstate or foreign commerce, any paper that contains illegal pulp. The Illegal Timber Law, previously known as the Due Diligence Regulation, is a European approach to ensuring non-importation of illegal pulp. Printed products are at present exempt but this is also expected to change in the future. As a founding member of The Publishers' database for Sustainable Ethical Paper Sourcing (PREPS), we grade our paper based on the sustainability of pulp and other sources. In doing so, we reduce the potential of non-compliance, fines, and other financial costs. In 2013, 100% of the paper graded through PREPS achieved a grade 3 or 5 (known and responsible sources). The Reed Elsevier Paper Policy commits us to purchasing sustainable paper wherever possible.Material riskAs a provider of professional information in environmental topics, any breach of standards in timber commodity sourcing could affect the perception of the integrity of those products or the company. Reed Elsevier has established a good reputation for sustainable paper sourcing, damaging that reputation could impact goodwill of customers and other stakeholders. Some customers have included questions about our approach to managing forest risks within their tender process or annual supplier surveys. As a supplier, our ability to fulfil their requirements is a benefit to maintaining good customer relationships.Non-material riskThere is a risk that disruptions to the timber market, such as lack of supply, could impact our ability to provide a printed product. This has been classed as non material because, through a process of risk assessment, this was deemed a low risk over a 5 year period. The assessment considered, among other things; the trend of customers away from printed products to online products, the efficiency of new print on demand models, existing sustainable procurement controls. Due to the year on year reduction of printed products sold by Reed Elsevier.
2412014SappiSouth AfricaTimberYesBased on FSC® Controlled Wood standard and/or PEFC™ Due Diligence System (DDS) which have classified all forestry based fibre as being low risk, including physical operations, regulatory and reputational risk. Procurement areas are relatively close to manufacturing facilities with identifiable sourcing. All fibre can be traced back to its origin. We operate in a cyclical industry. Global economic conditions may cause substantial fluctuations in our results. Our products are significantly affected by cyclical changes in industry capacity and output levels as well as by the impact on demand from changes in the world economy. Because of supply and demand imbalances in the industry, these markets historically have been cyclical, with volatile prices. In addition, recent turmoil in the world economy has led to sharp reductions in volume and pressure on prices in many of our markets. We took actions to improve efficiencies and reduce costs in all aspects of our business. We continue to benefit from a high level of economic pulp integration on a group-wide basis, which reduces the impact of pulp price fluctuations on our consolidated group results. We will continue to monitor the supply/demand balance, which might require us to impair operating assets and/or implement further capacity closures. The cost of complying with environmental, health and safety laws may be significant to our business. Our aim is to minimise our impact on the environment. The principles of ISO 14000, (FSC®), SFI®, PEFC™ and other recognised programmes are well entrenched across the group. We have also made significant investments in operational and maintenance activities related to reductions in air emissions, wastewater discharges and waste generation.Material riskThe regulatory climate is very dynamic and always changing – as an example, in South Africa, plantations require environmental authorisation and water licences. The risks are aggravated by the SA Government having placed limitations on cultivated forestry. In North America and Europe, the political preference to use timber for energy rather than material use poses a risk to our raw material availability. In North America, the regulations with which are having to contend include state and federal Renewable Electricity Standards, climate policies, and the Renewable Fuel Standard. In Europe, the Renewable Energy Directive sets binding targets for EU Member States. To reach these binding renewable energy targets, member states have put in place financial incentives (e.g. green certificates or feed-in tariffs). The support for the direct burning of wood to create renewable energy increases pressure on wood markets.Material riskForest management policies are highly debated in many circles. Other relevant issues in SA include natural water use, biodiversity and alien invasive species. People have emotional associations to trees, forests and wood and timber material unlike those associated with any other bulk raw material. The intrinsic sustainable nature of this commodity is often misunderstood. We are mitigating this risk by supporting industry initiatives (TwoSides, Print power) focused on promoting the sustainability of power. In each region, we publish information with the same aim eg our Paper Here today, Here Tomorrow brochure, sappi positivity website in Europe (www.sappipositivity.com), eQ website in North America (www.na.sappi.com/eQ)Material riskWood fibre is critical to the company's core manufacturing process. Fire, drought, pests and diseases all have a potential impact on our fibre sources.
2422013Resolute Forest Products Inc.CanadaTimberYes or 100% third party certified raw materials already achieved100% of our wood supply is already covered by certified Chain of custody under one or more of the following organisations, FSC, PEFC and FSC. These standards ensure our supply does not include fiber from controversial sources (illegal logging, deforestation, GMO, etc.). All our wood fiber originates from Canada and the United-States. FAO's State of the World's Forests reports indicate that Canada's forest cover has not changed since 1990 and United-States forest cover has slightly increased.No riskExtensive forest management laws and regulations already in application for decades and company is used to comply with. As indicated earlier, deforestation is not an issue in North-America as demonstrated by the UN reports. Since this is tracked by the FAO, deforestation rates in Canada and the United States are zero. Over the last century there was an increase in forested lands in the United States. We also stive for continuous improvement and our "no tolerance policy" for infractions. We're down do less than 2 minor infractions, not related to deforestation, per year in Quebec since 2009, which is likely industry leading levels of performance?Non-material riskWe are subject to ENGO (market groups) campaigns on different forestry issues but none related to deforestation as deforestation rate is virtually 0 for Canada and the United States.No risk
2432014Resolute Forest Products Inc.CanadaTimberYesAs part of the requirements of CoC standards used, Resolute has completed a full risk assessment of the forests entrusted to our care and this assessment is updated on an annual basis. 100% of the woodlands we manage are independently certified to one or more of three internationally recognized chain of custody (CoC) standards: Forest Stewardship Council® (FSC®), Sustainable Forestry Initiative® (SFI®) and Programme for the Endorsement of Forest Certification (PEFC). These standards ensure that our supply does not include fiber from controversial sources (illegal logging, deforestation, GMO, etc.). All our fiber supplies meet the PEFC due diligence requirements and the FSC controlled-wood requirements. All our wood fiber originates from Canada and the U.S. FAO's State of the World's Forests reports indicate that Canada's forest cover has not changed since 1990 and United States forest cover has slightly increased.Non-material riskWe have environmental management systems in place at every location, most of which are readily third party certified to ISO 14001, Those that are not currently certified to ISO 14001 are on their way to achieve that certification. A key goal for implementing and certifying these environmental management systems is to ensure full compliance with forest management laws and regulations.Material riskWe are subject to ENGO (market groups) campaigns on some forestry issues but none related to deforestation as deforestation rate is virtually 0 for Canada and the United States. We are actively engaged with our customers to inform them on these forestry issues and we created a blog where all pertinent information could be found (http://borealforestfacts.com/). We are also present on the social media to correct any misinformation on the company and on the company practices. In addition 100% of the land managed by the company is third party certified to internationally recognized SFM certification and all our North American pulp and paper mills and sawmills have third party certified CoC in place to one or more of the following standards; FSC, PEFC and SFI.No riskWe do not see risk associated with the production or use in our production of timber. As stated under F10.1, there is virtually no deforestation in Canada and the United States and those countries are already covered by extensive forestry regulations. In fact, in Canada where we conduct our own operations on large track of public lands, it was demonstrated through independent studies (Cashore, B. and C.L. McDermott. 2004. Global Environmental Forest Policies: Canada as a constant case comparison of select forest practice regulations. Victoria, BC: International Forest Resources; and Indufor Oy. 2009) that Canada has already one of the most robust regulatory system in the world. Resolute is in compliance with these stringent and comprehensive forest regulation. Conformance is a prerequisite in order to maintain our volume allocations on public land in Canada.
2442013Saint-GobainFranceTimberYes or 100% third party certified raw materials already achievedSGDB uses it is own risk assessment tool that contains some third party evaluations / scores . it is based on 4 criterias : - IMPACT volume, - ORIGIN (country governance, region, concession), using the Corruption Perceptions Index of Transparency International and the Coface country risk assessment - SPECIES and subspecies using the classification of the IUCN Red List and the CITES datas - SUPPLIER products, environmental policy, reputation...Material riskNot things like Flegt or Lacey Act but unilteral decisions of Forest Ministries regarding "the rules of the game" (e.g. 2010's decision in Gaboon to stop the export of Okoumé logs)Non-material riskNGO campaigns, newspapers articles, rating agenciesMaterial riskdemand exceeds offer for some species, if we want the product to be certified (e.g. SGDB demands more certified tropical timber than what Africa is able to produce)
2452014Saint-GobainFranceTimberYesWe assess thanks to a 3 level assessment too : - supplier reputation and supply chain complexity - country of harvest risk (thanks to the Coface and Transparency International ratings) - species risk thanks to the CITES convention and the IUCN Red ListNon-material riskEuropean Timber regulation (FLEGT) and the lacey actNon-material riskNGO's actions, newspapers articles, rating agenciesMaterial riskdemand exceeds offer for some species
2462014SanomaFinlandTimberYesdemand for certifications and transparency documents for wood originNo riskNo risk when the demands for the supply chain are made and monitoredNo riskWe have minimized risks by creating the principals and acting according to themNo risk
2472013SappiSouth AfricaTimberYes or 100% third party certified raw materials already achievedBased on FSC Controlled Wood standard and/or PEFC Due Diligence System (DDS) which have classified all forestry based fibre as being low risk, including physical operation, regulatory and reputational risk. Procurement areas are relatively close to manufacturing facilities with identifiable sourcing. All fibre can be traced back to its origin.Material riskThe regulatory climate is very dynamic and always changing. An example is that plantations require environmental authorisation and water licences in SA. The risks are aggravated by the SA Government having placed limitations on cultivated forestry. Globally, the political preference to use timber for energy rather than material use poses a risk to our raw material availability.Material riskForest management policies are highly debated in many circles. Other relevant issues in SA include natural water use, biodiversity and alien invasives. People have emotional associations to trees, forests and wood and timber material unlike those associated with any other bulk raw material. The intrinsic sustainable nature of this commodity is often misunderstood. In addition, many of the imported papers flooding into South Africa do not have the same environmental credentials as Sappi’s papers. To promote and reinforce the message that, in South Africa, the region’s papers are grown in sustainably managed forests and manufactured in a responsible manner, the well-known Typek brand was repositioned as ‘Earth Kind’.Material riskWood fibre is critical to the company's core manufacturing process. Fire, drought, pests and diseases all have a potential impact on our fibre sources.
2482013Taisei CorporationJapanTimberPartialPerformed to confirm the legality of imported timber forms by interviewing trading companies. Some of them confirmed legality and sustainability certified by FSC. The others confirmed legality but not confirmed sustainability.Material riskIf timber regulation simulate to the EU forest law applied in Japan, material shortage may occur at the beginning stage.Non-material riskIt is possible to use developing domestic products if public concern increased and contract specification request to use them.Non-material riskIt is possible to use developing domestic products if public concern increased and contract specification request to use them.
2492014Sapporo Holdings LimitedJapanPalm OilPartialパーム油の用途は多様であり、食品製造や外食事業など複数の事業ドメインでの使用があることが明白です。一方で、例えば、パーム油を主原料にした洗剤の生産のような、パーム油の使用が大きなインパクトを持つ生産活動などは、サッポログループでは実施していないと判断しております。当社にとってのリスクアセスメントは、パーム油の使用が、食品の副原料や、加工品の使用という形で限定的であるという定性的な事実をモニタリングしていくことであると思われます。Non-material risk使用量が限定的であり、使用方法も副原料や調理に使用する程度であるため、事業活動に重要なインパクトを持つリスクとしては認識していません。Non-material risk使用量が限定的であり、使用方法も副原料や調理に使用する程度であるため、事業活動に重要なインパクトを持つリスクとしては認識していません。Non-material risk使用量が限定的であり、使用方法も副原料や調理に使用する程度であるため、事業活動に重要なインパクトを持つリスクとしては認識していません。
2502013SCASwedenTimberYes or 100% third party certified raw materials already achievedSCA's target is to source 100% of wood raw materials from non-controversial sources. It involves considerable control efforts along the supply chain. The Global Supplier Standard is strengthening the company's ability to verify supplier performance. The goal of no controversial sources anywhere in the supply chain means, for example, that SCA does not currently purchase any wood pulp from Indonesia or other Asian countries. SCA requires pulp suppliers to demonstrate reliable systems and have documented procedures in place to enable control of the supply chain and traceability of the origin of wood raw materials. The company continues to perform assessment and supplier visits to ensure suppliers meet policy and expectations. All SCA's pulp suppliers are FSC Chain of Custody and/or PEFC Chain of Custody certified. The company's wood sourcing policy sets out a tiered approach to help suppliers achieve SCA's ultimate goal of sourcing fibre from forests independently certified as sustainably managed. The decisions by a number of pulp suppliers not previously involved in FSC to now offer FSC-certified products is seen as a positive result of the dialog between SCA and suppliers concerning sourcing policy and goals. Since the wood sourcing policy's introduction in 2004, the number of pulp suppliers has been reduced to approximately 20. Twelve pulp supplier sites were audited in 2012; another twelve will be audited in 2013. The new pulp supplier database provides mills with fast and easy access to key information about suppliers, including certification options, pulp specifications, ecolabel comparability, bleaching technology used, and so forth. The outcomes in 2012 in this area are: 1) All deliveries of pulp to SCA facilities met the Group target, 2) All of SCA's wood-consuming units are reviewed by independent auditors and meet the requirements of the Group target, 3) A new global fibre-sourcing group for the hygiene operations strengthened supply chain management, 4) The global supplier standard was implemented among pulp suppliers.Material riskSCA manages several regulatory risks related to wood supply with a potential to impact pulp and pricing policy. SCA conducts regular comprehensive strategic reviews and monitors developments in global legislative developments related to: - Impact of certification schemes standard changes (i.e. Due Diligence systems; forestry management practices ets. - Impact of new legislation (EU Timber regulations, Lacey Act, Australian Timber Regulation etc.) - Developing demands for environmental (Eco) labels (e.g. EU Eco-label, Nordic Swan, etc.) - Carbon neutrality of Biomass - Genetically Modified Organisms (GMOs) - Social issues (e.g. Indigenous population rights) -Longer term macro trends (population growth, land use change, land availability, climate change etc.)Material riskSCA currently does not source from controversial sources. Although deforestation, in particular tropical forest deforestation is a major global issue to adress, pulp, paper and packaging are not major contributors to deforestation. SCA works with several groups including relevant industry associations (e.g. CEPI), the major certification bodies (SCA is a board member of FSC International), the World Business Council for Sustainable Development's Forest Solutions Group, and the consumer Goods Forum Pulp, Paper and Packaging group to support broader movements towards sustainable forest management practices. Promoting the sue of forest products from sustainable sources can help counteract the economic and social forces driving deforestation by providing an alternative, sustainable land use.Material riskOperational risks for SCA associated with buying timber are due to failure of internal control processes and the human factor. SCA have systems and tools in place to reduce the risks of mistakes and facilitate continuous assessment. Another part of this work is to communicate clear organisational responsibility.

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created Jan 27 2017

updated Oct 4 2018

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CDP’s forests program targets the largest companies globally, collecting data on their management of deforestation risk through the lens of key agricultural drivers of deforestation (timber, palm oil, soy, cattle products & biofuels). In 2015, 700 companies are requested to respond to the program. The request is issued on behalf of 298 investor signatories with $19 trillion in assets.
Dataset of risk data from respondents to CDP’s forests program in 2013 and 2014. Includes data on company risk assessment processes, as well as the reputational, regulatory and operational risks they identified. This dataset excludes private responders.
Please note that not all companies report on all forest risk commodities. This may be due to the company submitting a partial disclosure or because only a limited number of the commodities are relevant to their business.

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