Precious Woods Holding AG

Overall approach

8/16
- Overarching commitment on deforestation
  
  6/6
  
  Deforestation commitment
  
  Zero-conversion
  
  6/6
  
  "FSC does not accept deforestation and conversion. For all own operations and our FSC certified supply we thus commit automatically to deforestation- and conversion-free production."
  
  Open source document
- Signatory to an initiative tackling deforestation
  
  0/1
- Awareness of the value of forests
  
  1/1
  
  Awareness
  
  Yes
  
  1/1
  
  "In our forests in Brazil and Gabon, 70 300 ha have been identified as HCV areas and excluded from use. This corresponds to 6% of the entire area under our management."
  
  Open source document
- Deforestation as a business risk
  
  0/1
- High-level management of deforestion
  
  1/1
  
  High-level management
  
  Yes
  
  1/1
  
  Which commodities does it apply to?: Timber
  
  How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: not disclosed
  
  "The Board of Directors is responsible for compliance with and further development of sustainability. The Sustainability Advisory Committee (SAC) advises Precious Woods on new developments in sustainability in the management of tropical forests and supports the company in its relations with local and international interest groups and professional organizations. The SAC gives recommendations for achieving Precious Woods’ economic, environmental, and social sustainability objectives and related reporting requirements."
  
  Open source document
- Executive compensation linked to deforestation
- Target to reduce emissions from land-use change
  
  0/3
- Reporting on emissions from land-use change
  
  0/3
- Disclosure of conservation activity
  
  Yes
  
  0/0
  
  "The Paris Agreement establishes the foundations for international efforts in the fight against climate change. Conservation of large forest areas is a key point, and thanks to its permanent preservation of 1.1 million ha of tropical forests, Precious Woods makes a significant contribution to this important goal."
  
  Open source document
- Disclosure of reforestation activity
Commodity score

0/84
- Timber
  
  0/84
  - Commitment Strength
    
    28/28
    - Commitment to protect priority forests
      
      17/17
      - Commitment details
        Zero-gross conversion
        
        10.7/10.7
        
        Commitment to protect priority forests
        
        Zero-gross conversion
        
        10.7/10.7
        
        Which certification schemes are used?: FSC
        
        "FSC does not accept deforestation and conversion. For all own operations and our FSC certified supply we thus commit automatically to deforestation- and conversion-free production." "Precious Woods commits to certify all own operations and the whole supply chain against the FSC or PEFC Forest Management (FM) and Chain of Custody (Coc) certification schemes. We also commit to only source from third parties if they are FSC or PEFC certified." “As part of our trading activities, we also trade with wood from other producers, which must also all be certified according to either the FSC or PEFC standard.”
        
        Open source document
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        3/3
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        3/3
        
        "FSC does not accept deforestation and conversion. For all own operations and our FSC certified supply we thus commit automatically to deforestation- and conversion-free production." "Precious Woods commits to certify all own operations and the whole supply chain against the FSC or PEFC Forest Management (FM) and Chain of Custody (Coc) certification schemes. We also commit to only source from third parties if they are FSC or PEFC certified." “As part of our trading activities, we also trade with wood from other producers, which must also all be certified according to either the FSC or PEFC standard.”
        
        Open source document
        Open source document
      - Target date
        Current/2020/Pre-2020
        
        2/2
        
        Target date
        
        Current/2020/Pre-2020
        
        2/2
        
        "FSC does not accept deforestation and conversion. For all own operations and our FSC certified supply we thus commit automatically to deforestation- and conversion-free production." "Precious Woods commits to certify all own operations and the whole supply chain against the FSC or PEFC Forest Management (FM) and Chain of Custody (Coc) certification schemes. We also commit to only source from third parties if they are FSC or PEFC certified." “As part of our trading activities, we also trade with wood from other producers, which must also all be certified according to either the FSC or PEFC standard.”
        
        Open source document
        Open source document
      - Interim target date
        Yes
        
        1/1
        
        Interim target date
        
        Yes
        
        1/1
        
        "FSC does not accept deforestation and conversion. For all own operations and our FSC certified supply we thus commit automatically to deforestation- and conversion-free production." "Precious Woods commits to certify all own operations and the whole supply chain against the FSC or PEFC Forest Management (FM) and Chain of Custody (Coc) certification schemes. We also commit to only source from third parties if they are FSC or PEFC certified." “As part of our trading activities, we also trade with wood from other producers, which must also all be certified according to either the FSC or PEFC standard.”
        
        Open source document
        Open source document
    - Commitment to a traceable supply chain
      
      11/11
      - Commitment details
        Traces to Point of production
        
        5.3/5.3
        
        Commitment to a traceable supply chain
        
        Traces to Point of production
        
        5.3/5.3
        
        "We commit to always apply a supply chain and traceability system (later referred to as Chain of Custody System CoC) to control the supply chain and to ensure the traceability at every stage of our production, processing and trading activities. [...] Our CoC system does guarantee that every log harvested in our concession area can be traced back to the stump and that every timber product can be traced back to the annual harvesting area."
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        3/3
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        3/3
        
        "We commit to always apply a supply chain and traceability system (later referred to as Chain of Custody System CoC) to control the supply chain and to ensure the traceability at every stage of our production, processing and trading activities. [...] Our CoC system does guarantee that every log harvested in our concession area can be traced back to the stump and that every timber product can be traced back to the annual harvesting area."
        
        Open source document
      - Target date
        Current/2020/Pre-2020
        
        2/2
        
        Target date
        
        Current/2020/Pre-2020
        
        2/2
        
        "We commit to always apply a supply chain and traceability system (later referred to as Chain of Custody System CoC) to control the supply chain and to ensure the traceability at every stage of our production, processing and trading activities. [...] Our CoC system does guarantee that every log harvested in our concession area can be traced back to the stump and that every timber product can be traced back to the annual harvesting area."
        
        Open source document
      - Interim target date
        Yes
        
        1/1
        
        Interim target date
        
        Yes
        
        1/1
        
        "We commit to always apply a supply chain and traceability system (later referred to as Chain of Custody System CoC) to control the supply chain and to ensure the traceability at every stage of our production, processing and trading activities. [...] Our CoC system does guarantee that every log harvested in our concession area can be traced back to the stump and that every timber product can be traced back to the annual harvesting area."
        
        Open source document
  - Social Considerations
    
    8/18
    - Labour rights in the supply chain
      No
      
      0/4
    - Inclusion of small-scale farmers
      Yes
      
      4/4
      
      Inclusion of small-scale farmers
      
      Yes
      
      4/4
      
      What is the nature of that support?: Other
      
      If Other, specify here: "partner with a FSC certified cooperative in South-America that is composed of several small-scale producers".
      
      How many smallholders do they support, and what percentage does this represent in terms of their sourcing from smallholders?: Not disclosed
      
      " It often appears to be difficult for small-scale producers in tropical areas to meet FSC or PEFC criteria, but we do promote small-scale producers in our supply chain if they meet these requirements. We do, for example, partner with a FSC certified cooperative in South-America that is composed of several small-scale producers."
      
      Open source document
    - Gender equality in the supply chain
      Inclusion of women in the supply chain
      
      2/4
      
      Gender equality in the supply chain
      
      Inclusion of women in the supply chain
      
      2/4
      
      [In Brazil] "the local management does actively attempt to increase the female workforce. In cooperation with local educational facilities we offer regular trainee programs with a high share of female trainees in order to make our company better known amongst and more attractive for young female professionals"[and in Gabon] "precious Woods Holding AG is hiring a female consultant, a specialist in social work an education.
      
      Open source document
    - Commitment to remediation
      No
      
      0/2
    - Commitment to ensure Free, Prior and Informed Consent
      Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
      
      2/4
      
      Commitment to ensure Free, Prior and Informed Consent
      
      Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
      
      2/4
      
      What is the status of those FPIC processes?: Not disclosed
      
      "We commit to only source wood for our trading activities from FSC or PEFC certified suppliers and thus, they are obliged to respect the principles of FPIC, workers’ rights and gender equality. If these third-party suppliers violate the above principles, they will lose their certification and we will immediately quit any collaboration". "We only have wood suppliers to our trading operations, but we do not process logs from third parties in our mills and veneer plants. We require all these suppliers to be either FSC or PEFC certified which implies that they respect the principles of Free, Prior and Informed Consent (FPIC) in the scope of their certified operations."
      
      Open source document
  - Reporting and Implementation
    
    17/38
    - Reporting against commitments
      
      3/6
      - Commitment to protect priority forests
        Yes
        
        3/3
        
        Commitment to protect priority forests
        
        Yes
        
        3/3
        
        (Downstream only) How many hectares of deforestation and/or conversion have occurred since the commitment cut-off date in the operations of the company's direct or indirect suppliers?: 4.92 hectares since 2017
        
        Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
        
        (Producers only) How many hectares of deforestation and/or conversion have occurred since the commitment cut-off date on land owned, controlled, or managed by the company?: 0 hectares since 2017
        
        "Precious Woods is a pioneer in sustainable forest management and forest certification. All of our forest operations are 100% FSC and PEFC certified. We manage a total of 1 100 000 ha of tropical rainforests under this dual certification. Our sawmills and veneer plants are 100% FSC Chain of Custody (CoC) certified, and we process only wood harvested in our own certified forests. Our wood trade is also 100% FSC-CoC certified and only trades wood from verified legal and sustainable sources.”
        
        Open source document
      - Commitment to a traceable supply chain
        No
        
        0/3
    - Reporting is independently verified
      
      2/4
      - Commitment to protect priority forests
        Yes: third-party
        
        2/2
        
        Commitment to protect priority forests
        
        Yes: third-party
        
        2/2
        
        For what percent of the company’s supply volume is third-party verification of performance relative to commitments conducted?: 100%
        
        What percent of the company’s supply volume is verified using company verification systems?: 0%
        
        Which tools, approaches, third-party verification, including certification, schemes are used?: Certification - FSC
        
        Which processes or groups does the company use for third party verification?: FSC, PEFC
        
        "Precious Woods is a pioneer in sustainable forest management and forest certification. All of our forest operations are 100% FSC and PEFC certified. We manage a total of 1 100 000 ha of tropical rainforests under this dual certification. Our sawmills and veneer plants are 100% FSC Chain of Custody (CoC) certified, and we process only wood harvested in our own certified forests. Our wood trade is also 100% FSC-CoC certified and only trades wood from verified legal and sustainable sources.”
        
        Open source document
      - Commitment to a traceable supply chain
        No
        
        0/2
    - Deforestation cut off date
      No
      
      0/2
    - Collaborative actions
      Yes
      
      2/2
      
      Collaborative actions
      
      Yes
      
      2/2
      
      What initiatives does the company participate in?: "We work closely together with numerous partners, including the World Conservation Society (WCS), the University of Science and Technology of Masuku (USTM), the Federal University of Amazonas (UFAM), Gembloux Agro-Bio Tech (ULiège), Nature+, and the Bern University of Applied Sciences (BFH-HAFL)"
      
      What is the nature of that participation?: Providing support/advice/experience/expertise; Providing technical capacity
      
      "Our close ties to national and international research institutions allow everyone involved to carry out research close to practice at our sites and also facilitate valuable exchanges between the private sector and public institutions. We work closely together with numerous partners, including the World Conservation Society (WCS), the University of Science and Technology of Masuku (USTM), the Federal University of Amazonas (UFAM), Gembloux Agro-Bio Tech (ULiège), Nature+, and the Bern University of Applied Sciences (BFH-HAFL)"
      
      Open source document
    - Risk assessments for forest risk
      Yes
      
      2/2
      
      Risk assessments for forest risk
      
      Yes
      
      2/2
      
      How frequently are assessments conducted?: At the point of acquisition
      
      "If all necessary information has been gathered successfully, the country and product specific risks must be assessed. The assessment aims to identify if the risk for illegal activities throughout the whole supply chain is negligible. Therefore, the following aspects are assessed. 1. Corruption and transparency in the country of origin 2. Occurrence or risk of armed conflict 3. Forest governance and law enforcement 4. Risk of illegal activities 5. Supply chain 6. International sanctions and legislation 7. CITES compliance".
      
      Open source document
    - Operations assessed to comply with law
      Yes
      
      2/2
      
      Operations assessed to comply with law
      
      Yes
      
      2/2
      
      "The aim of this due diligence is to assure that a product has a negligible risk for illegal activities throughout the supply chain."
      
      Open source document
    - Accessible grievance mechanism
      No
      
      0/4
    - Report volumes of commodity
      Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
      
      4/4
      
      Report volumes of commodity
      
      Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
      
      4/4
      
      What is the certified volume?: 162200m3
      
      Which certification schemes are used?: FSC; PEFC
      
      What is the non-certified/non-compliant volume?: 0m3
      
      Precious Woods reports the total volume of wood supplies for timber products for 2018 and states that 100% is PEFC certified and 88.5% is FSC certified.
      
      Open source document
    - Upstream: Impact assessments for land development/acquisition
      No
      
      0/4
    - Upstream: Reporting production/processing locations
      Reports location of certified land holdings; Reports location of land holdings under conservation; Reports location of company-owned processing facilities
      
      3/4
      
      Upstream: Reporting production/processing locations
      
      Reports location of certified land holdings; Reports location of land holdings under conservation; Reports location of company-owned processing facilities
      
      3/4
      
      What type of conservation designation and/or conservation status is used?: Not disclosed
      
      What is the total area in production (in ha)?: 370,000 ha
      
      What types of ecosystems are these?: "Following this study, the protection series was extended to new areas and representscurrently 6% of the total area of the CFAD or 35,760 ha."
      
      For what percent are point locations (of land holdings and processing facilities) disclosed?: 100%
      
      From what sub-national jurisdiction(s) does the company source material?: Milolé area
      
      In what country(ies) does the company operate and/or source material?: Brazil, Gabon
      
      What is the total area (in ha) of natural ecosystem on land owned, managed, or controlled by the company?: 35,760 ha
      
      Precious Woods Holdings reported the location of their certified land holdings and land holdings under conservation in Gabon, and the location of their company-owned processing facilities in Brazil.
      
      Open source document
      Open source document
    - Downstream: Publishing supplier lists
      No disclosure
      
      0/4
    - Upstream: Monitor compliance of production/processing
      Yes using a third-party monitoring system
      
      4/4
      
      Upstream: Monitor compliance of production/processing
      
      Yes using a third-party monitoring system
      
      4/4
      
      How frequently is compliance assessed?: Annually
      
      Does the company use a certification system?: Yes
      
      If so, what jurisdictions and mechanisms does the company use?: FSC
      
      What tools, processes, bodies carry out monitoring of the company's production or processing operations?: Certification scheme
      
      Does the company use a jurisdictional monitoring mechanism?: No
      
      "All Precious Woods operations are double certified against the Forest Stewardship Council® FSC® and the Project for the Endorsement of Forest CertificationTM PEFCTM certification schemes." "Since 2009 all our operations are FSC FM and CoC certified, additionally, since 2018 all operations are PEFC FM and CoC certified2 . Compliance with the certification is checked annually by accredited and independent auditors3 . Non-compliance would lead to the suspension and loss of the certification."
      
      Open source document
    - Downstream: Monitor compliance in supply chain
      Yes for its suppliers only
      
      3/4
      
      Downstream: Monitor compliance in supply chain
      
      Yes for its suppliers only
      
      3/4
      
      How frequently is compliance assessed?: Annually
      
      What percentage of the company's supply chain volume does that represent?: 100%
      
      Details of monitoring: Using certification; Using internal monitoring and verification systems
      
      "Every supplier must be assessed before products are purchased or traded for the first time. […] Every supplier must be assessed annually. Country or product category specific procedures […] can require more frequent assessments. […] Re-assessments can be performed as often as necessary for current suppliers, new suppliersand suspended suppliers." “As part of our trading activities, we also trade with wood from other producers, which must also all be certified according to either the FSC or PEFC standard.”
      
      Open source document
      Open source document
    - Downstream: Engagement with non-compliant suppliers
      Blacklist non-compliant suppliers without engagement
      
      1/2
      
      Downstream: Engagement with non-compliant suppliers
      
      Blacklist non-compliant suppliers without engagement
      
      1/2
      
      Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
      
      What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: None
      
      "New Suppliers failing to pass the assessment are not accepted. Transition periods are not accepted. • Current suppliers that fail to pass the annual assessment are immediately discarded. Transition periods are not accepted."
      
      Open source document
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2
Commitment strength

28/28

Avg. score
Reporting and Implementation

17/38

Avg. score
Social considerations

8/18

Avg. score

Profile

Precious Woods is a Swiss based company involved in the cultivation, processing and trading of tropical timber. It manages forests in both Brazil and Gabon. The company has sawmills and manufacturing facilities in both regions, Precious Woods is also a major timber trader in Europe. Precious Woods Holding AG is selected as a powerbroker for timber.

Sector

Industry sector

Construction, Forestry

Segments

Producer, Trader, Processor

Switzerland

Company Type

Company type

Public listed

Collective Commitments

Consumer Goods Forum member

New York Declaration on Forests signatory

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