To whom it may concern:
Following is the Rainforest Alliance-Smart Wood Program Statement
regarding the Certification of Flor y Fauna. We would like to post
our response in all electronic fora (e.g. Internet conferences,
listserves, bulletin boards, web-sites, or other on-line services)
where the issues have been raised. As we are not aware of where
you may have seen Julio Centeno's press releases posted, we would
be grateful if you would provide us with this information as soon
as possible, so that we can respond accordingly. Please contact us
at:
smartwood@igc.apc.org
Thank you.
NEWS
Contact: Richard Donovan
802-434-5491
fax-434-3116
For Immediate Release
Flor y Fauna Certification:
A Statement from Smart Wood
New York, NY, March 11, 1996 -- Over the past weeks, a forest
economist has raised concerns about the Rainforest Alliance's Smart
Wood Program's certification of the Flor y Fauna plantation in Costa
Rica. The Smart WoodCM Program takes these claims seriously and is
investigating them vigorously. In March, Smart Wood will conduct
its annual, previously-planned field audit of Flor y Fauna and the
concerns will be addressed in a careful, systematic way that treats
all parties fairly. A subsequent report will provide more detailed
information on Smart Wood's findings and Flor y Fauna's
certification.
Smart Wood Program Background
Smart Wood is a forest management certification program of the
Rainforest Alliance, a nonprofit environmental group based in New
York City, with field offices in Costa Rica, Vermont and Brazil.
Formed in 1989 - 1990, Smart Wood is the oldest and largest forest
management certification program in existence. Smart Wood was
recently accredited as a certifier by the Forest Stewardship
Council (FSC) for work in natural forest management. To foster
regionally-based certification activities, Smart Wood has also
recently launched a network of regional nonprofit partner
organizations interested in establishing certification programs.
The Smart Wood Program certifies operations based on guidelines and
criteria to assess sustainable forest management, environmental and
social impacts, and economic viability of operations. Currently
analysis of economic viability does not address returns on
financial investments in forestry operations. Though important,
this type of activity and guarantee is outside of the scope of
forest management certification.
Flor y Fauna Certification
In August 1993, the Smart Wood program conducted an initial
certification assessment of Flor y Fauna. Flor y Fauna did not
qualify for certification at this time, but as a result of the
assessment and peer review process, Smart Wood established a set of
pre-conditions that Flor y Fauna would have to meet in order to
qualify for certification. In February 1995, Smart Wood conducted
another assessment and determined that Flor y Fauna had responded
positively over an 18-month period to meet the pre-conditions
necessary to qualify for certification.
Flor y Fauna, S.A. was granted Smart Wood certification in April
1995 because of its commitment to serious long-term forestry, its
efforts to balance timber production and conservation goals, and
its positive relationships with employees and the local community.
Flor y Fauna has made an aggressive effort to expand use of native
tree species, as well as to conserve and expand remaining natural
forest areas within the operation. Flor y Fauna provides health,
education and income benefits above the norm for the region.
Julio Centeno's Concerns
Questions concerning Flor y Fauna's certification have been raised
in the media by a forest economist named Julio Cesar Centeno. He
has raised concerns about growth, yield and pricing projections,
their implications for investors, and promotional claims related to
the Forest Stewardship Council (FSC).
Growth and Yield:
Julio Centeno is concerned that Flor y Fauna's growth and yield
projections originally made in 1993 were overly optimistic. As
pre-conditions for the certification, the Smart Wood Program
required the following actions to address growth and yield:
implementation of a long-term growth and yield monitoring system;
and, improvement of the silvicultural plan for thinnings and other
prescriptions that relate to yield and environmental impacts. Smart
Wood does not guarantee growth and yield projections. However,
Smart Wood did review Flor y Fauna's growth data, and the company
already was showing above-average growth performance. Based on this
preliminary data, Smart Wood could not determine definitively that
Flor y Fauna's range of growth projections would not be obtained.
As part of the certification, Smart Wood is continuing to review
growth and yield information.
FSC Promotional Claims:
Julio Centeno claims that Flor y Fauna and others may have misused
the Forest Stewardship Council name in advertising. FSC is not a
certifying agent; it accredits certifiers. Smart Wood is now
working to verify Flor y Fauna's advertising claims with respect to
FSC and/or Smart Wood. If deliberately misleading claims have been
made by others, then appropriate actions will be taken. If
inadvertent mistakes have lead to the confusion, then this
underscores the need for continued efforts to supervise claims and
to improve public understanding of certification terminology.
Given the new, intricate, and rapidly evolving nature of
certification, confusion still arises about the distinctions
between terms such as "accredited by FSC" or "certified by an
FSC-accredited certification body based on FSC Principles and
Criteria." These distinctions are further complicated by the fact
that FSC has already accredited certifiers for natural forest
management, while accreditation for plantations is still underway.
In the meantime, certifiers have tried to structure plantation
activities in a manner consistent with anticipated FSC norms and
requirements.
Pricing:
Julio Centeno's concerns about pricing will be investigated.
Established Complaint Procedures
Smart Wood wholeheartedly supports the notion that concerned parties
must raise issues about certification to certifiers and to FSC.
There are established procedures for resolution of such complaints
by certifiers and FSC. If a complainant is not satisfied with the
actions taken by a certification body, then the complaint may be
taken to the FSC. Those who wish to recognize and support the
emerging certification movement under the auspices of the Forest
Stewardship Council should follow established complaint procedures
and allow time for investigation and response, before implementing
actions without fair discussions or consultations that may bias the
process or weaken the credibility of the entire certification
movement.
Mr. Centeno has informed Smart Wood in writing that he will not
follow the formal complaint process for the resolution of his
concerns. Instead, he has opted to go directly to the internet and
other media to make his claims. It is unfortunate and surprising
that Mr. Centeno does not appreciate the importance of formal due
process procedures given his past experience as an interim board
member for FSC and given his current position as a member of the
governing board of another FSC-accredited certifier.
Investigation Underway
Nonetheless, Smart Wood is treating Mr. Centeno's concerns as a
formal complaint. An investigation is underway to examine the
degree to which the current issues raised by Mr. Centeno are based
on well-founded, current and complete information, or other
factors. Concerns will be addressed in a careful, systematic way
that treats all parties fairly. A subsequent report will provide
more detailed information on Smart Wood's findings and Flor y
Fauna's certification.
In March of 1996, Smart Wood will conduct its annual audit of Flor
y Fauna to assess progress on certification conditions, as well as
the other concerns that have been raised about advertising claims
and growth and yield. Smart Wood will also contract a
Dutch-speaking independent consultant to conduct a financial
analysis.
In addition to the above, Smart Wood has been informed by Flor y
Fauna that it will also: a) contract a well-known international
accounting firm to conduct an independent financial evaluation of
the OHRA TEAKWOOD life insurance product; and, b) hire a Costa
Rican consulting firm to also review, at the field level, growth
and yield questions.
Smart Wood: Constantly Seeking Ways To Improve Forest
Management/Certification
Whatever the outcome of the complaint, Smart Wood hopes that Flor
y Fauna's many positive contributions to plantation forestry in
Costa Rica are not forgotten, and that others interested in
promoting long-term forestry activities will not be discouraged by
these debates.
Since Smart Wood pioneered the concept of forest management
certification in 1989-1990, it has had a revolutionary impact on
the forest industry. As a leader in the emerging field of forest
management certification, The Rainforest Alliance believes that
Smart Wood and others in the field must see criticism and
challenges as opportunities to examine the role and scope of
certification, and improve certification systems.
Today certification is a tool to improve forest management. The
current debate highlights questions about the role of certification
in examining financial returns and investments as well, which are
now outside of the scope of forest management certification. These
are important matters and the FSC is examining how they might be
addressed alongside forest management, environmental, social and
more narrowly defined economic criteria now used for assessing
operations.
As a nonprofit organization committed to using certification as a
tool for improving forestry from environmental, silvicultural and
socioeconomic perspectives, Smart Wood and its regional nonprofit
partners will continue to monitor forestry operations so that they
produce positive short- and long-term changes in forest management.
In its role as a nonprofit certifier, the Smart Wood Program is
committed to keeping certification accessible to all types of
forestry operations, including community-based operations, small
landholders and commercial forestry operations of all sizes.
The Rainforest Alliance
The Rainforest Alliance is an international nonprofit organization
dedicated to conserving tropical forests for the benefit of the
global community. Its mission is to develop and promote
economically viable and socially desirable alternatives to the
destruction of this endangered, biologically diverse natural
resource. The Rainforest Alliance pursues this mission through
education, research in the social and natural sciences, and the
establishment of cooperative partnerships with businesses,
governments and local peoples.
Smart Wood is a registered certification mark owned by the
Rainforest Alliance.
# # #
Comments and concerns are welcome. A more detailed account of this
issue can be obtained by contacting Richard Donovan, Director,
Smart Wood, tel. 802-434-5491.
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