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  • 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."
    • 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."
    • 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."
    • 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."
    • Disclosure of reforestation activity
  • Commodity score
    53/84
    • Timber
      53/84
      • 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.”
          • 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.”
          • 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.”
          • 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.”
        • 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."
          • 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."
          • 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."
          • 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."
      • 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."
        • 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.
        • 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."
      • 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

            (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

            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
            "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.”
          • 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.”
          • 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)"
        • 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".
        • 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."
        • 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

          What is the non-certified/non-compliant volume?: 0m3

          Which certification schemes are used?: FSC; PEFC
          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.
        • 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 is the total area (in ha) of natural ecosystem on land owned, managed, or controlled by the company?: 35,760 ha

          What type of conservation designation and/or conservation status is used?: Not disclosed

          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."

          What is the total area in production (in ha)?: 370,000 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
          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.
        • 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
          What tools, processes, bodies carry out monitoring of the company's production or processing operations?: Certification scheme

          If so, what jurisdictions and mechanisms does the company use?: FSC

          Does the company use a certification system?: Yes

          Does the company use a jurisdictional monitoring mechanism?: No

          How frequently is compliance assessed?: Annually
          "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."
        • 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
          Details of monitoring: Using certification; Using internal monitoring and verification systems

          How frequently is compliance assessed?: Annually

          What percentage of the company's supply chain volume does that represent?: 100%
          "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.”
        • 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."
        • 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
HQ
HQ 
Switzerland
Company Type
Company type 
Public listed
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.