1. FSC Pre-Assessment of Forestal Arauco S.A., 2009
Pre-Assessment summary report
The Pre-Assessment was carried out by Soil Association Woodmark
between 7th September and 8th November 2009
OVERVIEW
On the basis of the observations recorded on the standard and checklist (annex 1) and subject
to the corresponding corrective actions suggested (section 2 of annex 1), it is considered that
the certificate holder’s system of management, is not currently fully compliant with FSC
requirements. However, subject to implementation of Corrective Actions as described, Arauco
would be capable of demonstrating compliance with the requirements of the applicable
standard(s) over the whole forest area covered by the scope of the evaluation.
MAIN CHARACTERISTICS
The Multisite is composed of 3 sites:
Forestal Valdivia S.A.
Bosques Arauco S.A.
Forestal Celco S.A., including Forestal Cholguán S.A
Forestal Arauco is composed by the 3 sister forest companies plus Bioforest S.A., the latest dedicated
to applied forestry research. The properties (forests and plantations) are in regions VII to X.
Forestal Arauco is a company established for and focussed on producing and purchasing wood from
plantations in order to supply industrial production needs of Grupo Arauco.
The forest companies' main tasks are establishing, harvesting, restocking, maintenance, and
management of plantations of Pinus radiata and Eucalyptus globulus, and maintenance of native
forests. The company gives work to over 13 000 people, mostly through sub-contracting.
Total Area 1 117 438 ha 100%
Plantations / Plantaciones y Por Plantar 772 529 ha 69%
Native Forests / Bosque nativo 150 184 ha 13%
Other Vegetation and Protection / Otra Vegetación/Protección 120 349 ha 11%
Other Uses / Otros Usos 74 376 ha 7%
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2. Site visits covered all three members of the group.
General Base of the Pre-Assessment:
APPLICABLE FSC STANDARDS
The Pre-Assessment was done in full accordance with the applicable FSC standards, and the
company was evaluated against the
Woodmark Generic Standard adapted for Chile, which is based on standard FSC-STD-
01-001 (versión 4-0) ES adapted with Chilean standards:
STDPL201205 VF PROPUESTA DE ESTANDAR PARA LA CERTIFICACION FSC DE
PLANTACIONES FORESTALES DE OPERACIONES A GRAN Y PEQUEÑA ESCALA
STD- BN 201205-VF ESTANDAR PARA LA CERTIFICACION FSC DE BOSQUES
NATIVOS DE OPERACIONES A GRAN Y PEQUEÑA ESCALA
During the Pre-Assessment, potential non-compliances were identified
The Pre-Assessment was done in several stages:
1. Informing stakeholders (emails, newspaper ads, telephone)
2. Site visits, Stakeholder interviews, First phase
3. Collecting stakeholders’ information
4. On-site assessment, Stakeholder interviews, Second phase
Five SA auditors were involved, having spent 33 workdays in terrain, visiting the company, the
sites, or consulting stakeholders. The auditors were:
Team Leader: Milan Reška - Forestry
Jorge Trevin – Forestry, Resource Mgmt
Vanessa Linforth – Social Anthropology & Development, Forest Management
Rena Muxica Schwinghammer - Licensed Forester
Omar Rebolledo Montanares - Forestry Social Consultant
Supporting team (of three people) was contacting stakeholders, organizing logistics.
Stakeholders were selected from
1. The generic SA list of Chilean stakeholders,
2. The Arauco stakeholder list
3. The list of the most relevant stakeholders, supplied by FSC NI Chile
Altogether, 172 stakeholder interviews were held, and over 60 written responses were received
The sampling intensity enabled SA to state potential non-compliances with the Standard or “areas
of concern” on level of indicator, which hereunder is summarized into levels of Principles.
SUMMARY OF FINDINGS
General:
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3. The technical forestry level of Arauco is very high and efficient.
Stakeholders are focused on environment impact and social issues, and they do not
differentiate between the Forest Management part and Industrial Production (pulp mill)
part.
History of the last 25 years plays a huge role in the perception of the stakeholders.
The IMS (Integrated Management System, SGI) of the three members of the group is the same.
However, their practical application varies. Thus incompliance in one group member does not
automatically mean incompliancy in other group members, or compliance found in one group member
may not mean compliance in either of the other members
FSC PRINCIPLE #1: COMPLIANCE WITH LAWS AND FSC PRINCIPLES.
Positive issues: Managers are aware of the legislation and guidelines. Training of all personnel on
laws, H&S, technical issues. Also contractors and their employees attend to the courses. The
company has a confirmed information about contractors payments to their employees and to sub-
contractors.
Areas of Concern: During harvesting activities, the company partially enters into streamside protected
zones, e.g. by skidding, but also by harvesting, and with post-harvest intentional burning of slashes
when fire is limited on the property edges but not inside, e.g. native vegetation along streams, in the
buffer zones.
FSC PRINCIPLE #2: TENURE AND USE RIGHTS AND RESPONSIBILITIES
Positive issues: All property in state register, in GIS, maps, also neighbours are known. Each piece of
land has its unique register number (Rol). The company has state certificates for each land property.
Official procedures exist for resolution of disputes.
Areas of Concern: Some stakeholders feel limited by the situation, like e.g. having their ancestral sites
being a property of a forest company. Complaints of stakeholders: loss of water due to vast areas
planted with Eucalypt or Pine, access to the traditional forest water springs is limited.
FSC PRINCIPLE #3: INDIGENOUS PEOPLES' RIGHTS
Positive issues: The identity, location and population of all indigenous the vicinity of the management
area are known by the forest managers and the contacts with them and their communities are
frequent, namely on local level. Their rights (e.g. of passage) are known.
Areas of Concern: The indigenous people have not been documented. Impacts of plantations on
indigenous people have not been considered.
FSC PRINCIPLE #4: COMMUNITY RELATIONS AND WORKER'S RIGHTS
Positive issues: The company, and the contractors, pay insurance for accident cases of employees.
Health care and social insurance payments are set according to the law. Risk assessments are taken
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4. seriously, done for all variety of jobs. Training registers of contractors, registers of PPE, 1st aid
training done, annual health checks done. A perfect accident reporting system is set.
Areas of Concern: Evaluations of the social impact are not done comprehensively and systematically.
A system for ongoing consultation with local people and interest groups is not set or operational.
Communities and stakeholders, in many cases, feel uninformed, and ignored/overlooked by Arauco.
Health and safety: Individual loggers are too remote in a case of a real emergency (beyond horizon,
st
end of a long skyline track, etc.). Contracted truckers do not have 1 aid kit.
Complaint management processes seem rather fragmented, and stakeholders perceive the solution
processes as not operative or too slow, and many even do not know if and where they can place the
complaint.
FSC PRINCIPLE # 5: BENEFITS FROM THE FOREST
Positive issues: Plans and budgets are detailed and well balanced both for short time and for long-
term outlooks. The whole production of wood is processed inside Chile; partly into pulp, partly into
lumber. The company allows local people collect NTFPs, such as fruits (rose), mushrooms, medicinal
herbs, etc.
Areas of Concern: On harvested sites, burning harvest slashes often damages the residual stands
inside the plot, e.g. trees and vegetation left in buffer zones along water streams.
Evaluation of the forest management is not fully and evenly done throughout the harvesting sites.
PRINCIPLE #6: ENVIRONMENTAL IMPACT
Positive issues: More than 20% of Arauco land is managed with biodiversity as a major objective,
designated as a conservation zone, identified on maps. Native forests are designated as a protected
area, identified on maps, and is fully protected from commercial harvesting.
The matrix of environment impact assessment is used in EIA, and also preventive alert system,
"alertas comunitarias", for informing public and communities. The survey of all possibly present rare,
threatened and endangered species started in 2003 and is focused on native forests. Surveys are
also done in plantations. Each compartment has its FMP, which includes also conservation plans.
Planting lands of intensive agriculture put a stop to huge erosion problems in history.
Areas of Concern: Assessment of environmental impact is not participative.
Assessment of environmental impact is not done consistently. Public summaries do not exist.
Large clear cuts are common. Small scale fellings have not been properly considered or evaluated.
Buffer/protection zones are not protected from unplanned/unintentional intervention.
In plantations, there is no policy on retaining standing and fallen dead wood.
Impact of fire when is used as a management practice.
Oil spillage was seen untreated, during the site visits.
FSC PRINCIPLE #7: MANAGEMENT PLAN
Positive issues: FMPs are detailed and well balanced both for short time and for long-term outlooks.
The general objectives are stated in the Management Plan (Plan de Manejo). This plan also set
clearly the objectives for each compartment.
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5. Areas of Concern: Site-specific environmental impact assessment (EIA) is not made before each site
disturbing operation.
Summaries are not public.
FSC PRINCIPLE #8: MONITORING AND ASSESSMENT
Positive issues: The company has a Environment Management System (Sistema de gestión
ambiental), and a huge and operational manual Matriz de identificación y evaluación de aspectos
ambientales. Over 400 environmental aspects are considered, including applicable law.On that base
instruction manuals for environmental impacts were created. Monitoring of those impacts is done on
form Lista de Control Única, and also the contractors do this evaluation.
Areas of Concern: Monitoring of the effects of forestry operations on plant and animal species,
including aquatic habitats (names, abundance, distribution, habitat requirements, biology, ecology,
behaviour) is not done on site-level.
Summaries are not public.
FSC PRINCIPLE #9: MAINTENANCE OF HIGH CONSERVATION VALUE FORESTS
Positive issues: The concept of HCVF has been considered, HCVF forests have been identified
according to scientific criteria that were validated with external scientist and they are protected.
Areas of Concern: HCVF were identified without even consulting the major relevant stakeholders,
therefore the whole point should be re-done for major part.
FSC PRINCIPLE #10: PLANTATIONS
Positive issues: The company knows the history of each piece of its land property and is aware of the
conversions that happened in history. Intensive plantation management generates resources enabling
protection or non-intervention in natural forests.
Areas of Concern: Restoration is not included within the objectives of plantation management.
Visited sites of plantation, bordering native forests or fragments of young native vegetation inside
plantation stands are not considered.
Degradation of the sites seen.
Social and environmental aspects of large area harvesting have not been evaluated.
The evaluation of the conversion data is incomplete.
General: Several written documents, specific for FSC, needs be present, before a FSC audit, e.g.
adherence to FSC, freedom of organization of workers, etc.
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6. MISCELLANEOUS
Points, noticed by auditors, and also by stakeholders:
There are recent changes inside Arauco, considering EIA, forest management, social issues, etc.,
however:
1. These are quite recent, a couple of months
2. Those changes haven’t been evenly transmitted within the company. Each company (Bosques
Arauco, Forestal Celco, Forestal Valdivia) has different approach towards similar issues
3. The changes have not been publicized.
a. There has been very little time to notice
b. Many stakeholders do not trust the changes be real, especially as
i. the issues are recent, and
ii. mistakes occur as the company employees and contractors haven’t had a time to
accustom.
Main General Concerns
Stakeholder consultations – largely absent
Public information – very fragmental
Clearcuts – EIAs too superficial, not considering many aspects
Conversion – partially investigated history, thus unknown
Industry (pulp mills) – separate issues, but impacting stakeholders’ views
Points of intensive contact with communities and stakeholders, NGOs.
The general opinion towards Arauco is lead by the opinion on the Industries
Slurries – dumped in rivers, and ocean
Documents and other data of reference
1. WM FSC Standard and Checklist Adapted for Chile
2. General data of Forestal Arauco and each Group Member
3. List of stakeholders, contacted, and interviewed
4. Maps of Arauco lands
5. Flujograma Operaciones
6. Detailed list of Certification Processes
7. Detailed register of Areas of Concern / non-compliances
8. Administrative Context – summary of the legislative, administrative and land use contexts
in which the forest management enterprise operates
9. List and archive of stakeholder responses
10. Photos of visited sites
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Woodmark • South Plaza • Marlborough St • Bristol • BS1 3NX • United Kingdom
Tel (+44) (0) 117 9142 435 • Fax (+44) (0) 117 314 5001 • Email wm@soilassocation.org
Soil Association Certification Ltd • Company Registration No. 726903 • A wholly-owned subsidiary of the Soil Association Charity No. 206862
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