Canada is known for having some of the most rigorous sustainable forestry regulation and enforcement in the world. Holding 10% of the world’s forests including 552 million hectares or nearly 30% of the world’s Boreal forests and as a leader in the forestry industry, Canada’s sustainable forestry management has global implications, setting standards both environmentally and economically.
75% of Canada’s forests are Boreal. 3.7 million people live within the area including 70% of Canada’s Aboriginal People. This area is also a major carbon sink, a source of freshwater storage and home to high levels of biodiversity.
Complementing the management process are three voluntary third party sustainability certifications that “provide a stamp of approval that shows consumers they are buying products from forests managed to comprehensive environmental, social and economic standards”. Forest Stewardship Council (FSC) is a global NGO initiated non-state market mechanism, and is considered the “gold standard for well managed forests”. The other third-party certification schemes, Sustainable Forestry Initiative (SFI) and Canadian Standards Association (CSA), are both industry-initiated under the Programme for the Endorsement of Forest Certification (PEFC) international umbrella organization.
Resolute Forest Products, a global forestry force based in Montreal Canada holding logging rights on 22 million ha of mostly public land, has 100% sustainable timberland certification by third-party Forest Management Standards and is a signed member of the Canadian Boreal Forest Agreement. Resolute company values include be accountable, ensure sustainability and work together.
Corporate responsibility is clearly fundamental to Resolute, their management, brand value and reputation, so what is the problem?
It seems they will go to any lengths, including violating sustainable certification principles, disregarding indigenous rights, suing governments and suppressing environmental organization freedom of speech to assume this farce.
From an ecological standpoint, Resolute’s “sustainable”, “eco” and “recycled products” have in fact come from clear cutting three endangered forest areas; Ontario’s Caribou Forest and Quebec’s Montagnes Blaches and Broadback Valley. These areas are home to 150 birds, the highest densities of threatened woodland caribou and many Cree First Nations communities. Woodland caribou are considered an “indicator species”; sensitive to disturbance, and an “umbrella species”; their protection could ensure the survival of other species in the same habitat. The Grand Council of the Cree have challenged Resolute’s logging practices stating they are detrimental to their trapping lifestyle and the ecosystem balance throughout the area.
Woodland Caribou have already been pushed north of their historic range. Unfortunately logging industries are also being pushed north and since protected areas don’t sufficiently cover their habitat meaning the caribou must rely on sustainable forest management for security. (Info-Map from Canadian Parks and Wilderness Society)
In what way can they continue to state claims of sustainability and certification?
Many major US and global brands have moved away from SFI citing “the logging industry-run program misleads consumers and allows massive clear cuts, other destructive logging and human rights abuse”. Resolute instead is moving towards them. Their FSC certified lands have dropped by 50% since 2010 because of non-compliance and non-renewal. By switching to SFI, Resolute improved their sustainability certification cover to 100% without environment practice or management changes
Forest Stewardship Council (FSC) and Sustainable Forest Initiative offer competing sustainability certifications. While all non-state market driven certification schemes have implementation, management and accountability issues to contend with, FSC is considered more non-discretionary and broad based in their policy.
But how is Resolute getting away with this?
Resolute, aware that its reputation is at stake, has used its corporate weight and legal prowess to squash critics and competitors with SLAPP suits (strategic lawsuits against public participation).
Following a failed audit in 2014 for “not complying with good environmental standards”, Resolute sued Rainforest Alliance, the FSC certified auditor. Bypassing the normal FSC dispute resolution, the case was settled and the report sealed. In 2015 Resolute filed a $70+million suit against the Canadian Government because the Nova Scotia Provincial government provided a subsidy to their local mill creating competition, which Resolute says caused their Quebec mill to go under. Resolute is in court with Greenpeace over a $7 million defamation suit for a report Greenpeace published in 2013, which critiqued the logging companies environmental and social conduct. While this case is still in progress, the Ontario Superior Court has dismissed broadening the case stating Resolute’s allegations of Greenpeace are “irrelevant”, “scandalous and vexatious”. They have now brought the case against Greenpeace to the US under the Racketeer Influenced and Corrupt Organization Act (RICO) with goals to silence Greenpeace’s freedom of speech.
Well, what are the implications of Resolute’s actions? It’s only one company right?
Public interest groups are worried over extrapolated implications of using the RICO lawsuit against freedom of the press/speech. The RICO law originated to combat the mafia, but it’s use “as a club to silence Greenpeace from using non-violent means to mobilize the public, raise awareness alongside the necessary funds to operate, and seek to bring about change in respect of environmental practices it opposes would chill the exercise of First Amendment rights not only by Greenpeace but by other groups, by Amici. It would endanger the ability of non profits to operate and set a dangerous precedent,” says the Sierra Club. Resolute’s lawsuits against NGO’s, governments and auditors can threaten not only the viability of non-state market drivers of forest governance, but traditional governance and advocacy roles.
80 public interest organizations have come together to “condemn Resolute’s intimidation lawsuit and call on the company to respect the US Constitution – and our planet” via an advertisement in the New York Times earlier this month.(New York Times)
Sustainable forestry certifications are growing in supply and demand without a price premium attached or new markets opening up. Consumers aren’t willing to pay more yet they appear to expect these certifications as a minimum standard for forest products. Resolute feels their; “adherence to third party verified forest certification standards gives [them] an important competitive edge. It provides our customers with the assurance that our forests are managed responsibly according to rigorous standards”. With Resolute’s reputation benefiting from eco-certification where does that leave other logging companies particularly smaller ones. Forest managers must absorb the costs to gain and comply with certification schemes. Without significant product pricing benefits, where is the incentive to comply with stricter FSC protocol? This leaves the door open for industry-wide environmental degradation and unsustainable forestry practices.
Resolute has failed to adhere to not only it’s sustainable certifications, but it’s own corporate values of being accountable, ensuring sustainability and working together without any consequences. As indigenous groups are undermined, protected areas harvested and species threatened, Canadian Sustainable Forest Management practices are fundamentally destabilized. What does this mean for the legitimacy of Canadian Sustainable Forestry Management and third party sustainable forestry certification schemes? Can they continue to function as global environmental and social responsibility standards? How can the system be revised so the Boreal Forest, it’s residents both human and non human and it’s consumers aren’t left vulnerable to corporate greed?
The author will continue to look at these questions over the next month while writing a paper on Corporate Social Responsibility in Canada’s Forestry Industry. If you are interested in learning more or have insight, critiques or ideas please feel free to leave a comment or contact the author.
Natalie Knowles is an MSc student from Toronto, Canada. Her research interests include forest protected areas, ecosystem function and indigenous roles in conservation.