Model Forests in Russia Corporate social responsibility 09.02.2017

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 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

Project with new practices Transnational actors TNC Donors ENGO FSC NGO TNC subsidiary Project with new practices Space of Place

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

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) FSC International Model Forest Network Rainforest Alliance WWF International Smartwood WWF Germany FSC Russia WWF Russia WWF NEPCon Greenforest Forest club WWF Eco-tour

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

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

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

Time 1.Global SFM discourse 2.Donor 3.Silver Taiga 4.Working group 9. Local practice in Model Forest Priluzie Time 1.Global SFM discourse 10.Building trust 12.Use of Different Mechanisms 11.Identify Suitable institutions 3.Silver Taiga 2.Donor 4.Working group 6.Scientists 5.Komi government agencies 7.Local community organisers 13. Forest council 8.Business

Silver Taiga Foundation Level Gradient (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) Silver Taiga Foundation Save Pechora NGO Local groups in Udora region IMFN Rainforest Action Network WWF Rainforest Alliance SmartWood WWF-Russia Forest Ethics Greenpeace-Russia Greenpeace WRI Biodiversity Conservation Centre FSC

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

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

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

Comparison Komi Model Forest Pskov 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