Timber Risk Score: 21 / 100 in 2018. The Timber Legality Risk Assessment for Solomon Islands contains an evaluation of the risk of illegality in Solomon Islands for five categories and 21 sub-categories of law. We found:
- Specified risk for 18 sub-categories (NB: Low risk for some source types).
- Low risk for 0 sub-categories.
- No legal requirements for 3 sub-categories
A draft of the Timber Legality Risk Assessment for Solomon Islands was published for stakeholder consultation in July 2018. The purpose of the publication of the draft was to encourage stakeholders to provide feedback on its contents to improve the veracity of the findings. Preferred by Nature process for developing Risk Assessments can be found in the Preferred by Nature Risk Assessment Development Procedure. During the development of the Risk Assessment for Solomon Islands, Preferred by Nature consulted with a number of experts in Solomon Islands, who's input and feedback was incorporated into the draft. Preferred by Nature did not recieve any feedback on the draft published in July 2018. As such, the Timber Legality Risk Assessment currently available on the Preferred by Nature Sourcing Hub is still considered a draft, and will be revised and finalised when further funding can be secured to carry out in-country stakeholder consultation.
Solomon Islands has a total land area of about 2.8 million hectares. About 87% of the land in Solomon Islands is under customary land tenure, with the Constitution guaranteeing customary control over the land and forests; i.e. with rights and ownership outside of government and formal legal systems. The majority of customary land titles are unregistered, meaning that there has been no formal survey and registering of boundaries or other characteristics. Solomon Islands has among the highest percentage of forest cover in the Pacific region. In 2015 the FAO Global Forest Resource Assessment estimated Solomon Island’s total forest cover to be around 78% (just under 2.2 million ha). However, other assessments have found that this figure is more likely to be around 76%, due to extensive logging in recent years (Pauku, 2009).
The area of planted forest is estimated to cover about 27,000 ha (FAO, 2015). Plantation forestry can be split into two main groupings:
- Large-scale and corporately‐integrated operations conducted by large companies, managing plantations or contiguous plots (on Alienated land) of thousands of hectares each. Commonly planted species include: Eucalyptus deglupta, Tectona grandis, Gmelina arborea, Swietenia macrophylla, Camnospermum breviopelatum, Agathis spp., Terminalia spp, Acacia spp (Pauku, 2009); and
- Community plantations managed by villages, families or church communities throughout the Solomon Islands (on Customary land). Commonly planted species include: (primarily) Tectona grandis, as well as Swetenia macrophylla, Eucalyptus deglupta and Gmelina arborea (Pauku, 2009).
Since the 1990s, round logs have been the most valuable export commodity for Solomon Islands (Allen 2011), with logging revenue contributing around 70% of export income (compared with 50% in 1994) and more than 15% of government revenue (CBSI, 2012).
- 2004: Around 1 million m3 of logs were exported, which is in sharp contrast to the sustainable annual harvest estimate at around 248,000 m3 (URS, 2006 in Hughes et. al., 2010).
- 2006: Log export volumes increased to 1.4 million m3, of which 93% were from natural forest.
- 2011: Log export volumes reached to 1.9 million m3 of which only 85,000 m3 came from plantations (CBSI, 2007; CBSI 2012).
- 2016: Log exports (mostly from natural forest) had risen to 2.29 million m3 (CBSI 2016). This surge in logging exports appears to coincide with a strong international demand from Asia and record high international prices for logs (CBSI 2012; UN-REDD, 2013).
Since the 1980s, the forest sector in Solomon Islands has been characterised by collusion between foreign logging companies and local politicians, systemic corruption and poor monitoring and enforcement (Allen 2011). A key causal factor behind this problem is the lack of alternative revenue sources for national and provincial governments, as well as for local communities. Numerous efforts to reform the flawed processes for allocating timber rights under the Forest Resources and Timber Utilisation Act in order to restrict the potential for local-level corruption in the grant of timber rights have all failed. Both the government and landowners have been deprived of revenues from the logging industry as a result of corruption and the inequitable distribution of revenues under logging contracts .
According to Transparency International, the Solomon Islands - as a developing small island state recovering from a period of political instability and civil unrest - faces several corruption challenges fuelled by: the size of the country and its geographic spread, low state penetration of the regions and weak central institutions (Transparency International 2017). In addition, it faces specific governance challenges associated with the under-resourced management of natural resources including, for example, the influence and perpetration of large-scale corruption by international logging companies (Transparency International 2017).
Score: 43 / 100 in 2021
Rank: 73 out of 180 countries in 2021
Central Island province has blocked new logging and mining operations as of December 2019.
All logging operations above an altitude of 400 m were banned in December 2019.
Appendix II: Dalbergia Spp. (various species are native to the Solomon Islands)
Appendix III: Podocarpus neriifolius (Appendix III Nepal only. However, native distribution includes the Solomon Islands)
FSC Certified Forest Area: 39,346 hectares (4 December 2019).
Information Gathering
Timber sources
Source Type | Description of source type | |
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Natural Forest |
Small scale harvesting under a Milling Licence |
Natural Forests on customary land which is owned privately by Individuals and families; local tribal and indigenous communities; and/or private business entities and institutions. Individuals, households & Communities are harvesting the timber (often on land for which they hold rights) under a Milling Licence (Type b). These are small scale operations, perhaps harvesting a few trees per year as part of a diver family or community income. |
Larger scale Harvesting under a Milling Licence | Natural Forests on customary land which is owned privately by Individuals and families; local tribal and indigenous communities; and/or private business entities and institutions. Individuals, households & Communities are harvesting the trees under a Milling Licence (Type b), and the Milling Licence holder intends to use extraction machinery or harvest more than 1000 m3/year. These operations are usually slightly larger scale than Source Type 1, but are still not an industrial/large scale source. | |
Harvesting under a Felling Licence | Natural Forests on customary land which is owned privately by Individuals and families; local tribal and indigenous communities; and/or private business entities and institutions. The forest is managed and harvested by private companies (harvesting on customary land for which they do not hold rights) under a Form 4 Standard Logging Agreement Felling licence from the Commissioner of Forests, and in the case of processing, Milling Licence (Type a). The harvesting rights are obtained by the private companies through a process prescribed by law. | |
Plantations |
Large scale commercial operations on Alienated land |
Plantations on public land (either Nationally or Regionally held). Plantations are large scale and corporately integrated operations conducted by two large companies, managing plantations or contiguous plots of thousands of hectares. |
Community managed plantations on Customary land | Plantations on customary land which is owned privately by Individuals and families; local tribal and indigenous communities; and/or private business entities and institutions. Plantations are managed by villages, families or church communities throughout the Solomon Islands. It is estimated that community-level plantations may cover around 6000ha will begin to significantly contribute to the national wood flow in the early 2020’s. |
Documents to indicate legality
Forest level
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Trade and transport |
OR
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Export and custom
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Logs only
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Risk Assessment
Risk assessment summary
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Legal rights to harvest
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Taxes and fees
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Timber harvesting activities
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Third parties' rights
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Trade and transport
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Risk Mitigation
Mitigate the risks in your supply chain
Learn which actions we recommended to mitigate the risks associated with the timber sources from Cambodia.
Source Certified Materials
NEPCon believes that third party certification (for example FSC) can provide strong assurances of the legality of the products they cover. Companies seeking to mitigate the risks of sourcing illegal timber should seek to purchase third party certified materials wherever possible.
While the European Timber Regulation does not include an automatic “green lane” for certified products, it does recognise the value of certification as a tool for risk assessment and mitigation. The European Commission says that companies “may rate credibly certified products as having negligible risk of being illegal, i.e. suitable for placing on the market with no further risk mitigation measures, provided that the rest of the information gathered and the replies to the risk assessment questions do not contradict such a conclusion.”
For more information on using certified materials in your due diligence, including how to assess whether a certification system meets EUTR requirements, see the page on Certification and Due Diligence.
Mitigation recommendations for non-certified materials
1. Fully map your supply chain
- Our supply chain mapping tool can help you do this.
2. Obtain and verify documents
- Land tenure:
- Form 2 Certificate of Determination: After the meeting, the Provincial Government must make a determination and issue a Form 2 Certificate about what was agreed at the Timber Rights Meeting. The Form 2 Certificate will contain the names of the people who are legally allowed to represent the landowners. It must also attach a good quality map with the area to be logged clearly marked.
- Public Notice: Verify that the public notice was given with the outcomes of the Timber Rights Meeting. Check if there is any appeal. If so, determine if the appeals process is concluded and the outcome (how it was resolved).
- Form 4: Standard Logging Agreement. The Form 4 Agreement should specify how the profits are to be shared, and how the Provincial Government is to be involved in the logging operation. The Form 4 Standard Logging Agreement must be signed by the landowners identified in Form 2.
- Form 3 Certificate Approval: If the Commissioner approves the Form 4 Standard Logging Agreement, he will recommend that the Provincial Government issue a Form 3 Certificate Approval. The Provincial Government can only issue a Form 3 Certificate Approval if it has checked that the Form 4 Standard Logging Agreement has been signed by everyone named in the Form 2 Certificate.
- Regarding the business and tax registration requirements, obtain copies of:
- Provincial business licence.
- Tax Identification Number
- Certificate of Business Name Registration
- Harvest management and planning:
- Valid and approved Annual and Coupe plans shall exist where harvesting is taking place. NOTE: Changes to both annual plans and coupe/set-up plans shall have approved in writing by the Provincial Forest Officer. Annual and Coupe plans shall include all legally required information, data and analysis, including:
- Annual plans: maps with land owner boundaries, boundary of licence, land ownership boundaries, protected areas, coupe locations and other boundaries, road plan, log ponds and areas previously cut including an operational summary for previous years, inventory estimate of timber yields, machinery summary, staff summary, as well as including details with regards to how the needs of local villagers will be met.
- Coupe plans: detailed ground survey conducted to locate excluded areas, road and log landing locations. There shall be clear identification of coupe number and location against the annual plan, inventory against actual ground survey and a description of how environmental requirements will be met, as well as site specific issues.
- Valid and approved Annual and Coupe plans shall exist where harvesting is taking place. NOTE: Changes to both annual plans and coupe/set-up plans shall have approved in writing by the Provincial Forest Officer. Annual and Coupe plans shall include all legally required information, data and analysis, including:
- Harvest permits:
- Valid Felling and/or Milling Licences (as applicable) shall exist, where harvesting is taking place (Form 4 Standard Logging Agreement and Felling licence (from the Commissioner of Forests) with Milling Licence (Type a); or Milling Licence (Type b)).
- Compare information related to, and contained within, the Licences against other legally required documents and supply chain information - as well as via field-verification - to confirm their validity. Licences shall include all legally required information and data, including but not limited to:
- Dates of issue and expiry, within which harvesting may take place.
- Valid maps describing the boundary (harvesting limits) of the licence, or area from which unmilled timber may be drawn (Milling licences),
- Quantities permitted to be harvested and/or milled.
- Land ownership boundaries, protected areas and other boundaries.
- Compare information related to, and contained within, the Licences against other legally required documents and supply chain information - as well as via field-verification - to confirm their validity. Licences shall include all legally required information and data, including but not limited to:
- For felling licensees only: Obtain and verify a certificate (or other document) which confirms that the Licensee is a member of the Solomon Forest Association (SFA).
- Verify that the harvesting operation is operating with a valid Development Consent.
- Verify that an EIA has been conducted and is in place. This may be a Public Environment Report (PER) or a more detailed Environmental Impact Statement (EIS), as applicable.
- Where an Environmental Impact Statement is in place, verify that a gender impact assessment (GIA) has been conducted.
- Valid Felling and/or Milling Licences (as applicable) shall exist, where harvesting is taking place (Form 4 Standard Logging Agreement and Felling licence (from the Commissioner of Forests) with Milling Licence (Type a); or Milling Licence (Type b)).
- Taxes and fees:
- Receipts shall exist for payments of harvesting-related royalties (by private companies harvesting on customary land to the Customary land owners). Comparison of payment receipts with other sales, transport and export documents – including information such as volumes, species and qualities - shall confirm that the royalties paid to Customary owners are correct and in compliance with agreement between the parties, as per the Standard Logging Agreement.
- Where the entity (company, partnership or sole trader) conducting logging operations within the Solomon Islands is liable to pay income tax:
- An income tax return shall have been submitted by the organisation for the last complete reporting period.
- Receipts shall exist for payments of income tax.
- Protected areas and/or species:
- SLAs, Felling/Milling Licences, Annual Plans and Coupe plans, that properly include and demarcate relevant protected areas, as applicable, including: protected areas (under the Protected Areas Act 2019), conservation area, sanctuaries, forest reserves and community-level protected areas).
- Any permission for harvesting above 400m (where applicable) as provided by the Commissioner of Forests.
- Any permission for harvesting of protected species (e.g. for scientific or other purposes). Compare information related to, or contained within, the permission against other legally required documents and supply chain information – as well as via field-verification - to confirm their validity.
- Harvesting activities
- Where applicable, obtain and verify work permits for any migrant and non-Solomon Island workers (whether directly employed or working on a contract/other basis) to confirm that work permits exist and that they are legally able to work in the Solomon Islands.
- Obtain and verify a sample of employment contracts, to confirm legal requirements are respected for redundancy payment, dismissal, periods of employment and liability insurance covering liability for bodily injury or disease of all employees (where applicable).
- Trade and transport
- Obtain and verify volume and species data maintained by the Licensee, to confirm that true and proper records are being kept of the volumes (as applicable) of timber felled, milled, purchased, sold and/or exported under the licence, as well as the duties paid. This approach can be taken to ensure that the licensee can demonstrate compliance with the 20% milling requirement (Felling Licences only).
- For Milling Licences only, obtain and verify that valid volume returns are being submitted regularly to the Commissioner of Forests. The dates, information and harvest data included within the returns shall be verified to ensure it is valid to the License.
- Export
- FOR LOGS: Obtain the supplier invoice; supply contract; Market Price Certificate (issued by the Ministry of Forestry & Research); Specific Authority to Export rounds logs (issued by the Central Bank of the Solomon Islands) and Customs Approval (C25 Form).
- Verify that prices, volumes, species, product-type and grade are consistent between documents. Confirm the declared species, product-type and volumes are correctly described and consistent with other supply chain information.
- Verify that prices meet or exceed the fixed minimum-price threshold for log exports. Consult with the Ministry of Forestry & Research, if minimum prices are not clear.
- FOR ALL EXPORTS: Verify that transfer pricing to avoid Export duty and other taxes has not occurred.
- Conduct a literature review of market reports/figures and consult with authorities, to establish average market prices for product types exported.
- Obtain (as applicable to product) supplier invoice; supply contract; Market Price Certificate (logs only); Specific Authority to Export (logs only), Permit to Export and Customs Approval (C25 Form).
- Verify that prices, volumes, species, product-type and grade are consistent between documents. Confirm the declared species, product-type and volumes are correctly described and consistent with other supply chain information.
- Verify that prices are not significantly below average market prices for the exported product. If they are, seek an explanation. Check sales documentation to identify if exporter and buyer are linked companies/subsidiaries AND check if the buyer is located in a known Tax Haven, e.g. Hong Kong or Singapore. Where applicable, evaluate other potential indicators of transfer pricing risk:
- Low profits compared with competitors.
- No tax payment by exporter for an extended period of time.
- Significant decline in profits after a tax holiday expires/business restructuring.
- Profits in promoted business, but losses/lower profits in non-promoted business.
- Drastic fluctuations in profits from year to year.
- Varied profitability by product.
- Payment of royalties/management fees.
- Significant related-party (intra-group) transactions.
- FOR LOGS: Obtain the supplier invoice; supply contract; Market Price Certificate (issued by the Ministry of Forestry & Research); Specific Authority to Export rounds logs (issued by the Central Bank of the Solomon Islands) and Customs Approval (C25 Form).
- CITES Species
- Identify species of timber and determine if they are CITES-listed in Solomon Islands: https://www.speciesplus.net
- If listed, ensure all required CITES export licenses are issued by the CITES management authority: https://cites.org/eng/cms/index.php/component/cp/country/SB
- All cross border-trade of CITES-listed species shall be documented and accompanied by required export certificates issued by competent authorities (CITES Management Authorities).
3. Consult with stakeholders
- Land tenure:
- Consult with the Local Courts and/or Customary Land Appeal Courts. A dispute or case which has been raised in a court of law in relation to a Standard Logging Agreement (SLA) - and which is still outstanding – serves as a risk indicator of potential legal non-compliance with regards to the legal processes required to obtain a SLA and/or with regards to legal compliance in the actions of the parties involved.
- Consultations with stakeholders (communities and customary owners) within the area of logging (map included in Form 2) to verify that the right customary owners (representing the community) have been included in the Standard Logging Agreement process. Questions for land owners:
- Are the people who say they represent the customary owners really allowed to speak on your behalf?
- Were the customary owners and other community members given proper notice of the Timber Rights Meeting before it happened?
- Did the proper representatives of the customary owners attend the Timber Rights Meeting?
- Was an agreement reached at the Timber Rights Meeting on all the issues?
- Were the customary owners given proper notice of the Provincial Government’s determination? \
- Harvest permits
- Consultation with the Commissioner of Forests shall confirm:
- that the Felling License is valid and has not been cancelled or suspended.
- that the Felling licence has been issued in compliance, and in conjunction, with the process for a Standard Logging Agreement.
- For felling licensees only: Consultation with the Solomon Forest Association shall confirm that the Licensee is in good standing with SFA.
- The Ministry of Environment, Conservation, Climate Change and Disaster Management shall confirm that the Development Consent and PER or EIS is valid and related to the forest management unit (FMU) in question and the harvesting operation is in good standing and no issues of non-compliance have been registered by the Ministry, which are not being actively addressed.
- Consultation with the Commissioner of Forests shall confirm:
- Taxes and fees
- Consultation with Customary owners with whom the Standard Logging Agreement was signed shall confirm that the company is in good standing and that payments have been correctly and rightfully made as agreed.
- Consulttion with the Inland Revenue Division Solomon Islands shall confirm that the entity is in good standing with the Inland Revenue Division and that all required income tax has been paid (or that an approved payment plan is in force and is being adhered to).
- Harvesting activities
- Interviews with staff and contracted workers shall confirm that legally required protection equipment is required/provided by the organisation.
- Interviews with staff and verification of payslips shall:
- indicate that minimum wages are paid and maximum hours of work are adhered to.
- ensure payments of PAYE and Social Security (National Provident Fund) are being made.
- Interviews with staff at the harvesting site shall confirm:
- requirements to care for workers, such as supplying water, sanitary conditions and housing and medical care, are respected.
- work conditions for women, including statutory maternity leave requirements are adhered to.
- provisions for freedom of assembly, or to join a trade union, are not curtailed.
- Interviews with staff and other stakeholders (such as neighbouring communities, as applicable) shall confirm that children under the age of 12, 15 or 18 years (as applicable) are not employed - nor permitted under any working relationship, to take part in work activities, as per legal requirements.
- Where an Environmental Impact Statement is in place, interviews with staff shall confirm the correct implementation of the EIA of any mitigation measures described within the Gender Impact Assessment.
- Neighbouring communities and villages, socially-oriented NGOs and/or other relevant stakeholders, shall confirm that no evidence – nor cause for concern - exists with regards to the commercial sexual exploitation of children and the logging company and/or logging camps under its control.
- Protected sites and species
- The Ministry of Environment, Conservation, Climate Change and Disaster Management shall confirm permission for harvesting above 400m is valid and related to the forest management unit (FMU) in question.
- The Commissioner of Forests and/or Ministry of Environment, Conservation, Climate Change and Disaster Management shall confirm the authenticity and validity of the permission for harvesting of protected species.
- Customary Rights
- Consult Local Courts and/or Customary Land Appeal Courts. Any appeal, dispute or case which has been raised in a court of law in relation to a Standard Logging Agreement (SLA) - and which is still outstanding – serves as a risk indicator of potential legal non-compliance with regards to:
- actions the parties involved in the SLA, with regards to provisions agreed within the SLA during the execution of logging activities.
- obligations of companies to respect customary rights during the execution of logging activities.
- Conduct consultations with communities and customary owners within the area of logging (map included in Form 2) to confirm that the obligations of companies to respect customary rights during the execution of harvesting activities is being respected. Questions for Customary owners:
- Have the parties involved in the SLA, complied with the provisions agreed within the SLA during the execution of logging activities.
- Is the Licensee respecting (and interfering as little as possible) with the rights of customary owners (including hunting, fishing and collecting, felling and taking away trees or other materials for domestic or traditional purposes)?
- Is the Licensee taking all reasonable steps to ensure that workers and employees are respectful to and observant of local customs and do not enter cultural areas, such as tambu areas and garden and village areas?
- Consult Local Courts and/or Customary Land Appeal Courts. Any appeal, dispute or case which has been raised in a court of law in relation to a Standard Logging Agreement (SLA) - and which is still outstanding – serves as a risk indicator of potential legal non-compliance with regards to:
- Trade and transport
- Consultation with the Commissioner of Forests may confirm that that license conditions (that valid volume returns are being submitted regularly) are being met.
4. Carry out on-site verification
- Harvest planning and management:
- Compare information related to, and contained within, the Annual/Coupe plans against other legally required documents and supply chain information – as well as via field-verification - to confirm their validity.
- Harvesting inventories shall be conducted according to legal requirements and may be verified via field-verification to confirm their validity.
- Harvesting activities:
- For all Milling Licences (Type b), field verification of the harvest area shall confirm:
- harvesting takes place in accordance with the applicable provisions set out in the Milling (Type b) licence. This will include verifying that the permitted harvest quantity has not been exceeded and harvesting has only taken place within licensed areas, in addition to restrictions on harvesting in certain areas and in forests 400 m above sea level.
- For Milling Licences (Type b), where licence holders use extraction machinery or harvest more than 1000 m3/year (Source Type 1b), field verification of the harvest area shall confirm:
- harvesting takes place in accordance with the Code of Logging Practice.
- the implementation of the approved Annual Plans & Coupe plans is as described. This will require the following to be obtained:
- Annual Plan (approval by Forest Department, Honiara)
- Coupe/Set-up plan (approved by Provincial Forest Officer)
- Written approvals by Provincial FD Officer of any changes to either the Annual Plan or Coupe Plan.
- For Felling licences (with or without (Type a) Milling Licence), field verification of the harvest area shall confirm:
- harvesting takes place in accordance with the applicable regulations and provisions set out in the Standard Logging Agreement and Felling/Milling (Type a) licences. This will include verifying that the permitted harvest quantity (number of stems/volume) has not been exceeded and harvesting has only taken place within licensed areas.
- harvesting takes place in accordance with the Code of Logging Practice.
- the implementation of the approved Annual Plans & Coupe plans is as described. This will require the following to be obtained:
- Annual Plan (approval by Forest Department, Honiara
- Coupe/Set-up plan (approved by Provincial Forest Officer)
- Written approvals by Provincial FD Officer of any changes to either the Annual Plan or Coupe Plan.
- Field verification of the harvesting site shall confirm the correct implementation of the EIA, as described, including:
- adherence to any requirements, restrictions, conditions or safeguards to be adopted or applied, or other mitigating actions to be implemented.
- observance of requirements for environmental monitoring (as applicable).
- For mangrove areas, field verification shall confirm that overharvesting in mangrove areas is not occurring and mangrove areas are not used for log ponds or otherwise negatively affected by logging activity OR obtain and verify the (felling and/or milling) license(s) to confirm that the removal of the Mangrove area forms part of a commercial development.
- Field verification shall confirm that all health and safety requirements are followed and that required safety equipment is used during logging operations. This applies to all in-forest activities and workers, including in-forest processing.
- On-site audits shall confirm that children under the age of 12, 15 or 18 years (as applicable) are not employed - nor permitted under any working relationship, to take part in work activities, as per legal requirements.
- On-site audits shall confirm that children are not present at logging camps.
- For all Milling Licences (Type b), field verification of the harvest area shall confirm:
5. Carry out training and capacity building
- Measures should be taken by logging companies, such as to:
- prohibit the presence of children at, or within the vicinity of, logging camps;
- conduct awareness-raising via the adoption, dissemination and implementation of a code of conduct that will apply forest-workers in logging camps;
- circulate information within logging camps and neighbouring communities as to where/how concerns can be reported to authorities in confidence.
6. Avoid / do not buy
- Timber from those Standard Logging Agreements (SLAs) for which an outstanding court case(s) exists, until it is resolved and the outcome has been evaluated.
- Exclude protected tree species from the scope of species you are sourcing.