Reputation-raising EU Timber Regulation

Jessica Van Zetten, Quality Assurance Manager for Accoya Producer Accsys Technologies
We are very supportive of the EUTR. With a sometimes marred [environmental] reputation, it is time for the timber industry to be responsible and transparent and the Regulation should help ensure that it is.

For Accoya, Accsys currently sources 100% FSC- or PEFC-certified timber, which goes some way towards ensuring legality in the supply chain, and EUTR compliance will support this further.

Much of the raw timber we use is also harvested from New Zealand, where there is no history of illegal timber trading and forestry law is strongly enforced.

So we expect the EUTR will also have a positive impact on Accoya sales, as architects, specifiers and end users increasingly favour transparency and legality.

The regulation may also limit the availability of certain species of timber from some areas, encouraging more buyers to choose Accoya wood.

Dave Chapman, Sales Director, BSW Timber Ltd
The EUTR will have little impact on BSW, as we are 'traders', under the terms of the legislation, while the majority of our suppliers are the 'operators,' such as the Forestry Commission, Euroforest, Scottish Woodlands and Tilhill amongst others. It is they that have the lion's share of responsibility under the new law.

However, we do continue to demonstrate 'due diligence' checks on suppliers through our membership of the Timber Trade Federation and its Responsible Purchasing Policy.

Also, new revisions to the Forest Stewardship Council (FSC) certification standard are bringing it into line with EUTR on legality assurance, so our FSC certification is an additional check on compliance with the regulation.

So we can assure customers that any timber purchased from us is in compliance, but if they require additional information on species and harvest area we can supply it.

? Confor has campaigned for the British forestry sector to be classed as low-risk under the EUTR and that it should only need a simple compliance mechanism, based on Forestry Commission felling licences. The government has accepted the argument, but not yet finalised the licensing mechanism. With the regulation being enforced from March 3, Confor says it is vital the system is put in place urgently.

Ken Walsh, Managing Director, Danzer Uk
Danzer UK has always considered its responsibilities regarding responsible procurement to be a priority and we've been signatories to the Timber Trade Federation's Responsible Purchasing Policy for many years.

The RPP, together with our own in-house Danzer Group Procurement Rules, have allowed us to mitigate any risk that existed in our supply chain. We have also been involved with the TTF and Defra as part of the EUTR stakeholder consultation process.

While clarification is still required regarding how the regulation will be implemented, we are confident that we are able to satisfy its requirements.

As a major supplier of timber products from all parts of the world (including being responsible for over 1 million ha of FSC-certified forest in the Republic of Congo), Danzer Group holds a very important and influential position in the supply chain and customers and suppliers know that responsible procurement is very much in our DNA.

We are very positive about the new regulation and see it as an excellent opportunity for the industry to further improve its image and to continue to secure market share from less sustainable building materials.

The due diligence process required within the EUTR is also a great way for the UK timber industry to encourage the global timber community on board in our efforts to eradicate the existence of all illegal timber products.

Tony Miles, Managing Director, International Timber
We've introduced an EUTR due diligence system which goes above and beyond its requirements and all staff in relevant areas have undergone training. This has focused on improving understanding of the Regulation and what it means for timber procurement. It also took them through changes to our procurement process and how to use the new system without inconvenience to customers.

Being part of Saint-Gobain, we've also introduced a system, exclusive to Group businesses, which prevents any slippage in procurement and ensures continual adherence to regulations.

As part of the process, we've also assessed suppliers and removed products which no longer reach required standards.

It is now everyone's responsibility, not just the timber industry's, to highlight breaches of the Regulation. Timber is a vital resource and to remain this way we need to ensure all forests are managed responsibly and sustainably. Whether you are a timber supplier or purchaser, you need to ensure all the correct paperwork is available and be vigilant. If something doesn't seem right, let the authorities know.

The EUTR can only help secure the future of the timber industry. If the supply avenue for illegal timber is removed then eventually it will impact on illegal logging. But Europe is only one part of the world. For illegal logging and deforestation to be combated effectively, all timber trading countries must ensure all timber sold is from legal, verified sources.

Paul Fosh, Group Panel Products Buyer, James Latham
We've adapted existing background checks to include all points of EUTR and Responsible Purchasing Policy (RPP) requirements and, when considering both new suppliers and products, or existing ones, we require a completed, approved RPP form. We will also continue to monitor and update our internal database with relevant information on EUTR/RPP.

In some ways the EUTR may change products we supply, but we've successfully worked with suppliers with risk issues to reduce them to levels acceptable under the Regulation. Also, our stock profile was already tightly controlled, so wherever possible we purchased environmentally proven, correct products. Products we cannot justify or approve will be removed from our purchase/stock profile. Suppliers are aware of this and it has increased their incentive to comply, but some regions and products will struggle to satisfy the EUTR. Until they do, we will not purchase them.

A remaining concern over the Regulation is the degree of interpretation in different EU countries. There is also still some finetuning and direction for the UK due from Defra, which should have been in place by now.

It is now in our best interest to work with the authorities to ensure the smooth implementation and running of the EUTR. That will necessitate advising of breaches, otherwise it will appear to have no teeth. Only by constant policing can it achieve its goal.

If correctly placed and integrated, the EUTR will complement other schemes worldwide for the eradication of illegal timber and logging. It will also demonstrate European commitment to maintaining and managing the forests, the environment and bio-diversity of the planet, ensuring that our products can be traded and purchased with confidence.

Anders Ek, Marketing Director, SCA Timber Sweden
SCA has been working with other Swedish producers through the Forest Industries Federation as the EUTR has evolved.

Any regulation which can reduce illegal logging must be welcomed by the whole industry and the EUTR is not for cosmetic purposes, but to be followed as a minimum requirement for all responsible forest products companies across Europe. It will become part of SCA's quality control, alongside compliance with other international and certification standards.

We have also communicated the need to be ready for the regulation to UK merchant customers, helping them achieve chain of custody certification where necessary. This is the best first step towards implementing due diligence, understanding their supply chains, and identifying and assessing timber sources.

Our forestry operation SCA Skog is our 'operator' in EUTR terms, the business that first places wood on the market. Our sawmills, processing units and units in other countries, such as SCA Timber Supply in the UK, are traders, and thus need to keep and track relevant purchasing and sales documentation.

Our range of added-value timber products and components will remain the same, as will our UK customer education and certification programme, through which we hope many more companies will come to understand their obligations under EUTR.

Stephen Cope, Marketing Executive, Meyer Timber
Meyer Timber has been particularly active in its preparation for the EUTR. And the abundant supply of good, competitively priced, chip and fibre panels from Europe, either FSC- or PEFC-certified, has allowed us to focus our attention on plywood.

There are good quantities of certified plywood available from the Americas, which leaves the Far East. And the greatest threat to any compliance ambitions is, for us and in the perception of our customers, China.

There need be no concept of illegal harvesting within Chinese borders. All land belongs to the state and is leased to companies for the purpose of planting trees and for a finite period, normally 20 years. Poplar and eucalyptus species, for core veneers, grow quickly in the temperate region of eastern China and harvests can be taken in about seven years. Cutting can only be undertaken by virtue of a licence issued by the relevant branch of the State Forestry Administration.

Face veneers represent the greatest threat and, at Meyer Timber, we are working tirelessly with our Chinese manufacturers to incorporate only face veneers of demonstrable provenance. Supply chains in China are frequently complex and obtaining provenance can be challenging. We have chosen to substitute traditional face veneers with others of good provenance, which almost always means a change in specie. Customers may have to accept a change in the appearance to their normal product, although this will not detract from its performance.

We have sent three teams to China in the last six months to work with our mills in producing plywood that meets the EUTR requirements, so our customers can rest assured that not only is our due diligence process up to the mark, but we will have a comprehensive range of wood panels available from demonstrably legal sources.

Geneviève Standaert, Export Manager, Vandecasteele
We've always been advocates of well-sourced timber and due diligence, as stipulated in the EUTR, but in preparation for the EUTR, we've also implemented a computer system which links all goods documents through to stock lines, facilitating traceability from timber purchase to yard. All bundles are bar coded and can be linked immediately to original parcel documents.

We've also made suppliers and customers aware of the system, 'encouraging' the latter to provide all documents electronically, and providing packing lists and invoices to customers the same way.

One issue we have with the EUTR is late communication of the details from the European Commission (EC), which is a particular potential problem for suppliers.

With all our technology, it takes us weeks to adjust to new legislation, and our federation in Belgium has still not chosen a monitoring organisation to help members prepare. So how do we expect mills in the country of origin to get ready, when they haven't yet been told exactly what they need to get ready for?

We need to act now and move forward to a united European platform for EUTR compliance, which is transparent and fair for all suppliers. The EC needs to work closely with each national Regulation competent authority in order to achieve uniform implementation. Then the national authorities need to inform stakeholders. It's important for everyone that the Regulation is not implemented differently for each nation.

Ultimately, however, the EUTR is a good initiative in the effort to eliminate illegal timber. It will do further good for our reputation and could be a legislative example for the rest of the world.