Model Forests in Russia Corporate social responsibility

Pscov Model Forest WWF-Stora Enso SIDA founder 3 pillars of sustainability: economic, social, environmental Co-management, multi-stakeholder governance

Corporate social responsibility as a business strategy Building Models of sustainability (Pscov Model Forest) FSC certification to justify sustainable forest operations. Stora-Enso—WWF partnership A) with the goal to adjust the organizational and institutional environment of the country to their business B) to intensify forest management C) to legitimize business operations in the eyes of both transnational and local stakeholders, especially NGOs and final consumers

What can we learn from this case Impacts of CSR (FSC, Model forest) on the local practices on the ground Access TNC as agent of institutional change, to what extent they can change the institutions To what extent results can be disseminated?

Context in Russian forest sector Constant restructuring of state institutions, high institutional turbulence Extensive forest management Forest Code of 1997, 2006 (undeveloped regulations Well developed NGOs networks

TNCENGOFSCDonors NGO Project with new practices TNC subsidiary Transnational actors Space of Place

Wood Supply Russia Stora Enso Business NetworkBuyers STF-Strug Kingisepp STF-Gdov Level International (Global) (EU) (Pan-European) National (Russian Federation) (NW Russia) Regional (Republic) District (Priluzie leskhoz) Local (Logging company) (Village)

FSC International FSC Russia WWF International WWF Germany WWF Russia WWF Eco-tourForest club Rainforest Alliance Smartwood NEPCon Model Forest Network Greenforest International Level (Global) (EU) (Pan-European) National (Russian Federation) (NW Russia) Regional (Pscov oblast, St. Petersburg) (Kraj) (Okrug) (County) District (Leskhoz) (Raion) (Municipality) Strugi Krasnie raion Local (Logging company) (Village)

St. Petersburg Forestry Research Institute Advisory Board Steering Committee Stora EnsoSIDAWWF GermanyWWF International STF-Strug so Pscov Model Forest Governments at different levels Forest Club WWF Russia Civil Society Level International (Global) (EU) (Pan-European) National (Russian Federation) (NW Russia) Regional (Republic) (Kraj) (Okrug) (County) District (Leskhoz) (Raion) (Municipality) Local (Logging company) (Village)

Transnational stakeholders SIDA-official agenda poverty reduction, real interest to help Swedish companies in Russia, required public participation in decision making WWF- promote sustainability through Model Forests, implement FSC

Interaction with governments Federal- “special status” of the Model Forest– special agreement, could not change legislation, could not reproduce lessons learned in intensive forest management Regional-special agreement, different in time, could not reproduce lessons learned to other regions Local Forest Management Units- interested in general, many informal relationships depending on local circumstances Could reproduce lessons learned with the FSC implementation

Interaction with local stakeholders Small grants supporting community initiatives Media campaign Public participation- forest club, one public hearing with scenarios to choose (public manipulated, but happy) Educational programs- very successful Citizens loved WWF and not STF-Strug (Stora-Enso subsidiary)

Outcomes FSC implemented in all Stora-Enso subsidiaries, all workers safety, community involvement, biodiversity conservation Efforts to reproduce all other innovations failed Strong expert community in Russia was created CSR as a business strategy did not worked well for establishing business in Russia but worked well with final consumers and shareholders In December 2008, STF- strug and other subsidiaries (except two in Karelia were closed)

Model Forest Priluzie Silver Taiga (before 2002 WWF) With the international level: Swiss agency for international development, WWF network Governmental agencies partners: forest agency, ministry for natural resources, local forest management units Business not interested on early stage, on late stage Mondi Business paper—driver of certification

9. Local practice in Model Forest Priluzie Time 1.Global SFM discourse 10.Buildin g trust 12.Use of Different Mechanisms 11.Identify Suitable institution s 3.Silver Taiga 2.Donor 4.Worki ng group 6.Scientis ts 5.Komi government agencies 7.Local community organisers 13. Forest council 8.Busines s

Silver Taiga Foundation Sav e Pec hor a NG O Local groups in Udora region IMFN Rainforest Action Network WWF Rainforest Alliance SmartWood WWF- Russia Forest Ethics Greenpea ce-Russia Greenpeac e WRI Biodiversity Conservati on Centre FSC LevelGradient (Negotiating NGO Radical NGO) International (Global) (EU) (Pan-European) National (Russian Federation) (NW Russia) Regional (Komi Republic) (Kraj) (Okrug) (County) District (Leskhoz) (Raion) (Municipality) Local (Logging company) (Village) (Parish)

Business networks dynamics Mondi Business Paper-with its commitment to certification-key player Certification of forest management unit facilitates certification of chain of custody 15 leasers in Priluzie

Mondi Business Paper Luzalec Veldoria (timber export) Nodzul LZK (China) Ilym Pulp (Siberia, Arkhangels k) Komiles -nab Mondi Global Business Network Timber buyers Mag Verkhnyaya Lopya Viledlec (”mr Durakov”) Obselkho z- tekhnica LZK Priluzlec Sevlespro m kompania Agriles- servis Kusty- shev Butalov Grigorash Local logging for personal needs Level International (Global) (EU) (Pan-European) National (Russian Federation) (NW Russia) Regional (Komi Republic) District (Priluzie leskhoz) Local (Logging company) (Village)

Model Forest innovations Practice of public hearings when forest industry rents the territory Forests for community use around villages Old growth forests excluded from management

What practices changed? Social: Workers safety, salary in time, food in the forest, medicine Environmental: biodiversity conservation on the logging plots Economic: benefit big companies, while small struggle, certification allows higher prices abroad, under Mondi monopoly

Komi Model Forest –NGO-government partnership—the driver –Forest management unit a certificate holder –Innovations transferred to Komi –Multi-level governance: Model Forest Priluzie as a Laboratory for Social Change Pskov Model Forest –NGO-business partnership—the driver –Company a certificate holder –Innovations transferred only to company subsidiaries –Less stakeholders involvement Different ways of introducing SFM into Russia—different agents of institutional change Comparison