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Illegal logging drives deforestation in many countries, robbing national governments and local communities of valuable income and contributing to global biodiversity loss and climate change. Apart from its environmental and economic damage, illegal logging can fuel corruption, and is sometimes linked to organized crime and violent social conflict.

A new guide, Sourcing Legally Produced Wood: A Guide for Business, provides four actions companies can take to source legal wood. The guide aims to help companies avoid illicit logging in their supply chains—both for the good of the world’s forests and their own bottom lines.

Untangling the Paper Chain

How Staples Is Managing Transparency with Suppliers

This publication is part of a series of case studies is intended to show commercial buyers of wood and paper-based products how their supply chains can conform with U.S. legal requirements on importing certain types of wood. The case studies draw lessons from emerging best practices for managing...

Brazil is one of the most biologically diverse countries in the world. What is less known is that the country is the fourth largest industrial roundwood (timber left as logs, not sawn into planks) and wood pulp producer and ninth largest paper producer in the world. Brazil’s forest sector contributed 5 percent to the national gross domestic product in 2012. Brazil’s forests are not only home to communities and a haven for biodiversity, they are also part of the country’s economic backbone.

Brazil’s government has made impressive progress towards balancing forest protection and production. In 2012, deforestation in the Brazilian Amazon dropped to its lowest rate in more than two decades. Brazil’s National Institute for Space Research has pioneered the use of satellite data to prevent illegal logging. And the forest sector uses the Forest Source Document system (Documento de Origem Florestal, DOF), a sophisticated electronic system to track the wood flow throughout the supply chain.

Despite these positive steps, illegal logging and associated trade in the Amazon continues. Beyond the negative social and environmental impacts, illegal logging poses a serious problem for businesses producing legal wood products. With a price difference of up to 40 percent, legal wood simply cannot compete with cheaper illegal wood.

To reduce illegal logging and support the legal actors in the forest sector, Brazil must strengthen its forest control systems and policies.

Reducing illegal logging by supporting the supply and procurement of legal and sustainable forest products

The global market for wood and other forest products is changing quickly. The industry has long struggled to address the problem of illegal logging, which damages diverse and valuable forests and creates economic losses of up to $10 billion a year. In some wood-producing countries, illegal logging accounts for 50-90 percent of total production.

But recent developments indicate that we may be turning a corner: Illegal logging rates worldwide have declined by about 20 percent since 2008.

This was the topic on everyone’s minds at the recent Forest Legality Alliance meeting in Washington, D.C. This meeting brought together nearly 100 members and experts representing a wide array of companies, trade associations, NGOs, and governments involved in the harvest, manufacturing, and trade of legally produced forest products.


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