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

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EU context – long awaited Communication

From 2008 to 2019

2 2008 Communication 2013 Study EU consumption 2014/2017 Conferences 2018 Studies 2019 Communication

2019 Communication

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• 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

2019 Communication: what next?

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• 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

Why do we need new regulatory measures?

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• 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

What ClientEarth is suggesting: Mandatory due diligence

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• 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’

Key steps of a due diligence process

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• Identify and assess risks and impacts: pinpoint

potential or actual adverse impacts on people and the environment that could result from a company’s

• perations 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

Key questions for forthcoming legislation

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• 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…

Thank you

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