We’re in an era where demonstrating the legal and sustainable origins of timber is a must, but many businesses are perplexed at how to meet their growing obligations.

With the introduction of the EU Timber Regulation (EUTR) on March 3 and other legislative processes, many companies feel unequipped to navigate this minefield. I strongly advise any company dealing in forest products to integrate responsible timber sourcing into their business strategy as soon as possible. Core to this is establishing a robust, yet realistic and operational approach. There are three key steps to this.

Firstly, take a systematic approach.

A responsible timber sourcing policy provides an excellent framework for managing supply chains. Policies that include measurable goals and timelines are stronger, and regular evaluations help to benchmark progress and set new targets. Importantly, it offers an effective way to communicate with employees, business partners and investors.

Numerous leading companies such as IKEA, Kingfisher and Marks & Spencer have adopted forest-friendly sourcing policies impacting large numbers of supply chains. Many go beyond legality and impose additional social and environmental requirements on their suppliers.

Secondly, engage in credible, third-party certification.

Choosing a well-known certification scheme remains one of the strongest tools available to meet market demands for responsible timber. In fact, most businesses need certification to trade in certified products, which is why FSC certification has exploded over the past decade in countries with a high risk of controversial forestry. FSC has recently taken steps to provide better assurance for excluding illegal timber from certified products.

Timber legality assurance schemes are beginning to flourish, with private, semi- governmental and governmental schemes popping up that are issuing certificates and promising assurance for legality. While a few systems have comprehensive standards covering the EUTR requirements and a robust system to ensure that the requirements are followed by certified operations, others are simply paper certificates that offer no additional legality assurance.

The need for an international system that accredits and recognises legality verification systems fulfilling the EUTR legality requirements is clear, but unfortunately is not yet functional today. There is no approved FLEGT licence system, no officially recognised EU Monitoring Organisation and no international accreditation systems for legality services. It’s a minefield – be careful where you step.

Thirdly, use common sense for the EUTR. The EUTR obliges thousands of European companies – most importantly importers – to set up and run due diligence systems to ensure the legal origin of timber placed on the EU market. It’s not easy. The envisaged framework – which involves national legislation, national Competent Authorities and EU-recognised Monitoring Organisations – is yet to be fully implemented across all EU member states.

Moreover, the level of effort and ambition needed, particularly in terms of risk assessment, is unclear and makes it harder for the industry to find its feet. Companies facing obligations are left to navigate the law based on their own perceptions or find their way through the jungle of schemes claiming to secure EUTR compliance.

The reality is that no scheme currently guarantees EUTR compliance. However, the more credible ones go a long way to help and I recommend that companies pursue this course.

The lack of simple guidance can make some companies bury their heads in the sand but they are running a huge liability risk. Others may take an overly cautious approach, collecting more information than needed, putting a strain on them and their suppliers.

The EUTR is about minimising the risk of sourcing illegal timber. Common sense will go a long way in meeting the letters of the law.

For example, it is clear that the more complex supply chains are, the higher the risk of illegal timber sneaking into supplies – and the more effort is required to deal with it. Common sense also tells us that you should not automatically trust official-looking documents from countries with high corruption levels and known issues of illegal logging.

Don’t be afraid to ask for help. There are numerous affordable training courses and free resources available.

Three tips of caution

  • Certified suppliers typically sell both certified and non-certified products: check that the actual products are certified!
  • Official-looking documents from high-risk areas may lack a valid basis: use common sense to determine the credibility of such documents. If in doubt, get additional assurance.
  • FLEGT licence look-a-like certificates: some types of certificate may be confused with FLEGT licences, which exempt operators from risk assessment under the EUTR; but there are no valid FLEGT licences on the market yet.

Top three free recommended tools

  • LegalSource due diligence system: for companies to use and adapt. www.nepcon.net/legaltimber
  • Global Forest Registry: source of information on the risk of sourcing controversial timber
  • FSC marketplace: find FSC certified products and companies. www.marketplace.fsc.org