Forest Stewardship Council disassociates from Danzer Group / Decision Due to Involvement in Human Rights Violations in Democratic Republic of Congo

Bonn (ots) - The Board of Directors of the Forest Stewardship
Council (FSC) has decided to disassociate from the Danzer Group,
after indepth research by a Complaints Panel found evidence of
involvement of former Danzer subsidiary SIFORCO in human rights
violations in the Democratic Republic of Congo (DRC).

"Based on the unanimous recommendation of the Complaints Panel,
which was also reviewed by a newly established Board Complaints
Resolution Committee, the Board of Directors decided that Danzer was
in clear violation of FSC's Policy for Association," said Kim
Carstensen, Director General of FSC. "The way Danzer acted on the
ground clearly put FSC's reputation at risk," he added.

Disassociation means that the Danzer Group - and all of its
subsidiaries - loses its FSC certification and the right to use FSC
trademarks. As FSC is a voluntary, market-based approach to promote
responsible forest management, disassociation is the most severe
action the organization can take. Given the significance of the
decision, the FSC Board of Directors applied a high "standard of
certainty," requiring clear and convincing evidence to support the
decision.

The disassociation stems from a complaint filed by Greenpeace,
alleging that the Danzer Group, and its former subsidiary SIFORCO,
repeatedly violated human and traditional rights of forest
communities, as well as forest workers' rights. The alleged events
occurred in 2011 in and around the community of Yalisika in the DRC.
The FSC Director General appointed an impartial Complaints Panel to
conduct an in-depth investigation of the allegations. Danzer and
Greenpeace both agreed to the experts on the Complaints Panel.

Based on the investigation, and the Complaints Panel
recommendations, the Board of Directors decided to disassociate from
the Danzer Group. The FSC Board Chair and Director General
communicated the decision to the Danzer Group and to Greenpeace in
person.

The disassociation may be temporary and reviewed once independent
verification finds that Danzer has met the following conditions:

- The Danzer Group has performed fully on the obligations the
company promised to the people at Yalisika, including construction of
a school and health center, and construction of a road. Danzer must
not only supply equipment and materials, but also expertise to build
the facilities.

- The Danzer Group has implemented clear conflict-resolution
procedures to prevent conflicts of the sort that occurred in and
around Yalisika. Procedures must take into account FSC Guidance on
Free, Prior and Informed Consent.

- The Danzer Group has agreed to have its progress toward these
goals monitored by a third-party organization appointed by the FSC
Secretariat.

The Board further decided that SIFORCO shall not be granted a new
FSC certificate until the Danzer Group has performed fully on their
obligations towards the community, and independent monitoring
verifies that SIFORCO is not involved in illegal logging activities.

The Danzer Group is one of the largest producers of decorative
veneer worldwide and one of the top-ten producers of hardwood lumber
in North America. This decision also affects the largest FSC forest
management certificate in the Congo Basin, managed by Danzer
subsidiary IFO.

"Danzer did not fulfill its social responsibilities and did not
have a robust mechanism for dialogue with communities surrounding the
forests they managed," Carstensen said. "Where conflicts with
communities arise, it is important to make all possible efforts to
resolve the issues peacefully and through direct negotiation,
especially where legal frameworks are weak and their enforcement
known to be controversial," he added.

For more information, please visit:
https://ic.fsc.org/siforco-democratic-republic-of-congo.355.htm.

Forest Stewardship Council

The Forest Stewardship Council (FSC) is an independent
non-governmental organization that promotes environmentally sound,
socially beneficial, and economically prosperous management of the
world's forests. FSC was created in 1993 to help consumers and
businesses identify products from well-managed forests. FSC sets
standards by which forests are certified, offering credible
verification to people who are buying wood and wood products.
Currently more than 175 million hectares and 25,000 companies are
certified to FSC standards world-wide. For more information visit
www.fsc.org.

CONTACT:
Marcelle Peuckert Director of Communications
m.peuckert@fsc.org
+49 (0) 228 367 66 0