Country risk

Timber importing companies run a variety of risks in relation to their supply sources. Those include economic and financial risks (e.g. exchange rate stability), political risks (e.g. government stability), and also environmental risks. Environmental risks for a timber importer basically mean that the supplied products do not satisfy UK environmental standards and understanding of sustainable forest management.

Unsustainable or illegal forestry practices are not widespread, but they do occur in a few regions. Getting unsustainable or otherwise ‘controversial’ timber into a supply chain means reputational risk to importing companies that can lead to loosing customers. The risk that the timber purchased originates from such sources is generally higher in a country with weak forest law enforcement than in a country were good forest laws are in place and enforced. Nevertheless, excluding a particular country from the global economy because of its weak rule of law is not fair to the people who do good business and does not protect the environment either. Read more (Why boycotts won’t work)

It is a difficult task to high lighten potential risks connected with certain supply regions without effectively blacklisting countries as such. However, if a country is considered to be a generally high-risk source, e.g. if corruption and a weak rule of law effect the country, the trade needs to take additional action and engage with its individual suppliers. Read more in Private Sector Initiatives.

Forests Forever is producing Country Reports covering main supplying countries of the UK. The reports will inform Forests Forever/TTF members about the forest related business environment in their supplying countries. Responding to recent issues in the trade, the focus of the reports is on potentially ‘illegal’ and ‘unethical’ practices within the covered countries.

The Country Reports so far:
Brazil, Burma/Myanmar, Estonia, Finland, Latvia, Malaysia, Romania, Russia, Vietnam