1. Self-declarations Assumed law enforcement “Business As Usual” scenario Stakeholder conflicts with forestry Products from unspecified or controversial sources High performance on-the-ground Third-party verification Products from responsible origins Stakeholder engagement & consensus FSC® TRANS- PARENCY ToC: Transformation through FSC certification Forest Stewardship Council ® © FSC A.C. All rights reserved 2014 Markets & claims EngagementAssurance UPTAKE EFFECTIVENESS Standards

2. Social, environmental, economic benefits on the ground Promotion of Responsible Forest Management Strong certification / accreditation system Serving as model Accreditation of certification bodies FM operations apply FSC standards Accreditation standards Non-compliance CORRECTIVE ACTION ISEAL membership Principles & Criteria Forest Management SH HCV Market advantages Market leaders with preference for FSC Buyers can identify and find certified products Chain of Custody & labeling framework KNOCK-ON effects Capacity building KEY concepts Institutional capacity Business development Monitoring & evaluation 3rd party verification / audits Attractive label / brand Network development Advocacy Communi- cations INCENTIVES Complaints Best practices for forest stewardship SH Building capacity Law enforcement Stakeholder engagement Participatory, democratic and transparent governance structure 3 chambers Societal discourse & consensus NGO support Network structure Adapted national standards for FM SH Changing attitudes Policy change STAKEHOLDER consultation SH High performance and innovation Facilitating dialogue ENGAGEMENT pathway STANDARDS pathway ASSURANCE pathway MARKET pathway Living transparency SUPPORTING strategies

3. Social, environmental, economic benefits on the ground Promotion of Responsible Forest Management CORRECTIVE ACTION INCENTIVES KNOCK-ON effects Changing attitudes High performance and innovation ENGAGEMENT pathway ASSURANCE pathway MARKET pathway STANDARDS pathway Living transparency Facilitating dialogue SUPPORTING strategies

4. Social, environmental, economic benefits on the ground Promotion of Responsible Forest Management CORRECTIVE ACTION INCENTIVES KNOCK-ON effects Changing attitudes High performance and innovation ENGAGEMENT pathway ASSURANCE pathway MARKET pathway ISEAL membership Capacity building Institutional capacity Business development Monitoring & evaluation Network development Advocacy Communi- cations STANDARDS pathway Living transparency Facilitating dialogue SUPPORTING strategies

5. Social, environmental, economic benefits on the ground Promotion of Responsible Forest Management CORRECTIVE ACTION INCENTIVES KNOCK-ON effects Changing attitudes High performance and innovation ENGAGEMENT pathway ASSURANCE pathway Market advantages Market leaders with preference for FSC Buyers can identify and find certified products Chain of Custody & labeling framework Attractive label / brand SH STAKEHOLDER consultation SH MARKET pathway STANDARDS pathway Living transparency Facilitating dialogue SUPPORTING strategies

6. Social, environmental, economic benefits on the ground Promotion of Responsible Forest Management CORRECTIVE ACTION INCENTIVES KNOCK-ON effects Changing attitudes High performance and innovation ASSURANCE pathway MARKET pathway STAKEHOLDER consultation SH ENGAGEMENT pathway STANDARDS pathway FM operations apply FSC standards Principles & Criteria Forest Management HCV Complaints Best practices for forest stewardship Stakeholder engagement Participatory, democratic and transparent governance structure 3 chambers Societal discourse & consensus NGO support Network structure Adapted national standards for FM SH KEY concepts SH Living transparency Facilitating dialogue SUPPORTING strategies

7. Social, environmental, economic benefits on the ground Promotion of Responsible Forest Management INCENTIVES KNOCK-ON effects Changing attitudes High performance and innovation ENGAGEMENT pathway MARKET pathway Strong certification / accreditation system Accreditation of certification bodies Accreditation standards 3rd party verification / audits STANDARDS pathway Non-compliance CORRECTIVE ACTION STAKEHOLDER consultation SH ASSURANCE pathway Living transparency Facilitating dialogue SUPPORTING strategies

8. Social, environmental, economic benefits on the ground Promotion of Responsible Forest Management CORRECTIVE ACTION INCENTIVES Changing attitudes High performance and innovation ENGAGEMENT pathway ASSURANCE pathway MARKET pathway STANDARDS pathway Serving as model KNOCK-ON effects Building capacity Law enforcement Policy change Living transparency Facilitating dialogue SUPPORTING strategies

9. Social, environmental, economic benefits on the ground 1. Forest management (FM) operations gain market advantages through certification. 2. Harvesting activities are based on the principle of sustained yields: there is a balance of growth and yields of the forest species composition 4. FM operations have good and fair relations with indigenous and any other local communities, and maintain or enhance fair access to resources and economic benefits. 5. Forest-dependent, forest- managing certified communities improve their livelihoods as well as their forest management and marketing skills. ECONOMICSOCIALENVIRONMENTALGENERAL 7. Minimized degradation of natural forests, no conversion of forests to other land use in certified areas. 10.FM operations develop strategies to diversify their portfolio of forest products, and manage a broad portfolio to increase environmental and economic resilience. 6. FM operations improve workers’ living and working conditions, especially with respect to occupational health and safety. 8. FM operations maintain or enhance biodiversity. High Conservation Values of the forests are identified with stakeholder input and maintained or enhanced through appropriate management. 11. Legal compliance by FM operations and exclusion of illegal activities within the FMUs. FSC intended impacts 12. Bring together diverse groups of people to craft policy; with local (Network) and international (FSC) consistency; empowering marginalized groups with a stake in forestry. 3. FM operations gain increased competencies for example in planning, impact assessment and evaluation, silviculture, health and safety, and marketing. 9. FM operations identify and maintain the forests’ manifold ecosystem services from forest soil, water, biodiversity.