Japan’s Efforts for the Promotion of Deforestation Free Global … · Governments: Indonesia, Malaysia, EU, France ... Private: AEON, Airbus D&S, Ajinomoto, Hakuhodo, Japan Paper

Japan’s Efforts for the Promotion of Deforestation-

Free Global Supply Chains

Toshimasa Masuyama, Forestry Agency, Ministry of Agriculture, Forestry and Fisheries, Japan

Japan’s active interventions toward SFM globally

Participation in international dialogues on forests (UNFF, FAO/COFO, Montreal Process, etc.)

Combatting illegal logging and associated tradeTechnical support for producer countries“Clean Wood Act” enacted in 2016 with the aim to promote the use of legally harvested timber

Support for REDD+ activitiesA number of bilateral technical cooperation projects undertaken by JICA, financial support for developing countries, financial contribution to international organizations (GCF, FCPF, UN-REDD, etc.), Japan public-private platform for REDD+ established

Deforestation still ongoing while the rate is on a slowing trend. Drivers of deforestation lie outside the forest sector , e.g. agriculture, infrastructure.

Public-sector driven approaches have limitations (sustainability, impact) Deeper engagement of stakeholders outside the forest sector is essential

Working on supply chains as the key factor

NY Declaration on Forests signed at the UN Climate Summit (2014) The Government of Japan and one Japanese company (Kao) committed to supporting and helping meet

the private-sector goal of eliminating deforestation from the production of agricultural commodities

SDGs promotion in Japan Established a new Cabinet body called “SDGs Promotion Headquarters” (May 2016)

Adopted the SDGs Implementation Guiding Principles (Dec 2016)

Established the SDGs Promotion Roundtable Meetings comprising a wide range of stakeholders (local governments, NGOs/NPOs, academia, the private sector, international organizations, etc.)

Created the “Japan SDGs Award” to be presented to leading initiatives by private companies and organizations

Worldwide private sector initiatives expanded

Forest 500, CDP Forest, TFA2020, Supply Change, etc.

Signatory of RPI expanded, ESG investment

Japan depending on global trade for domestic

consumption of food and forest products Almost 70% of wood demand met by imports (50 mil. CUM in log-equivalent, annually) Food self-sufficiency ratio (calorie supply basis) stands at 39%

As a major global market player, Japan needs to recognize and assess the risks of deforestation the imported commodities may cause even if they are not the real drivers of deforestation in producer countries.

With this consciousness, the Forestry Agency of Japan organized an international symposium to raise awareness on interlinkages between “supply chains” and “deforestation”.

Food self-sufficiency ratio (calorie supply basis)

100

0

10

80

70

60

50

40

30

20

90

Rice 99%

Livestock products 16%

Oils & fats 3%

Sugar 28% Seafood 59%

Wheat 12%

Vegetable 76%

Soybean 27%Others 22%

Fruits 35%

0 100Self-sufficiency ratio(%)

Cal

ori

e su

pp

ly (

%)

Wood self-sufficiency ratio (in log-equivalent)

17 25 15 5

57 44

1

19%33%

0

20

40

60

80

100

0

20

40

60

80

100

120

140

1955 60 65 70 75 80 85 90 95 2000 5 10 15

(Million CUM) (%)

YR2002YR 2015

Domestic Wood

Imported Wood

(in log)(in products)

International Symposium on the Promotion of Deforestation-Free Global

Supply Chains to Contribute to Halting Deforestation– Challenges of the Private Sector for Forest Conservation as the Key to Achieving SDGs and Aichi Biodiversity Targets –

January 23-24, 2018, Tokyo Japan Organized by Forestry Agency in cooperation with FAO & ITTO A total of 350 participants

(Speakers) Governments: Indonesia, Malaysia, EU, France

International organizations: FAO, ITTO, CIFOR, GCF

NGOs: Global Canopy Programme, Forest Trends, Wild Asia

Private: AEON, Airbus D&S, Ajinomoto, Hakuhodo, Japan Paper Association, Kao, Meiji, Nestle Japan, QUICK ESG Research Center, Response Ability, Sekisui House, Starbucks Coffee Japan

Moderators’ Summary which includes 14 key messages was adopted as an outcome document.

Key points of the Moderators Summary (1)1. Deforestation-fee global supply chains play a critical role in achieving many of SDGs and Aichi

biodiversity targets. The goals set out in NY Declaration on Forests provide good reference for the implementation.

2. The private sector should establish sound procurement policies and continue to disclose information concerning the implementation status thereof while paying due attention to the potential risks of their commodities becoming the driver of deforestation on the supply side.

3. Efforts should be made to build capacity for establishing and operating verified legal and sustainable supply chains.

4. Businesses and institutions of every scale, from multinational giants to small and medium sized, are able to contribute to deforestation-free global supply chains by joining forces in platforms and consortiums.

5. Efforts should be made to develop and disseminate innovative tools in order to improve the market transparency, enhance the credibility and reliability of procurement policies and raise the bar of their sustainability standards (e.g. remote sensing technologies).

Key points of the Moderators Summary (2)6. Commitments to zero-deforestation and disclosure of their implementation status are increasingly

linked to worldwide ESG investments. Finance and investment sectors can also urge those stakeholders to make transformational changes toward sustainable production and consumption by leveraging deforestation-free commodities and associated supply chains.

7. Given the public sector should also play an active role, private and public partnerships should be further strengthened by making concerted efforts and implementing government policies.

8. Awareness of consumers should be raised on the underlying causes of deforestation and its impacts on the economic, social and environmental aspects of sustainability.

9. Particular attention should also be paid to the importance of addressing forest degradation.

10. Taking into account the intrinsic nature of trade-offs between safeguarding forests and achieving food security under the trend of ever-increasing food demand, it is important to take an inclusive approach in line with land use policies established in a way that is well-coordinated among all stakeholders.

How can government organizations in charge of

forests reach out to non-forestry enterprises? Most of the companies involved in supply chains with potential risks of causing deforestation are NOT

forestry/wood related enterprises (e.g. food, chemical, retail, finance etc.).

Government organizations responsible for forests have little communication with those enterprises in the course of day-to-day business.

In case of “Forest 500”, there are only 4 wood related companies out of the 30 corporations assessed.

KAO CORP.DAIWA HOUSE INDUSTRY CO. LTD.OJI HOLDINGS CORP.AJINOMOTO CO. INC.NIPPON PAPER INDUSTRIES CO. LTD.SHISEIDO CO. LTD.SUMITOMO GROUPAEON CO. LTD.ASICS CORP.CALBEE INC.

KIKKOMAN CORP.MITSUBISHI CORP.QP CORP.SEKISUI HOUSE LTD.TOYO SUISAN KAISHA LTD.YAKULT HONSHA CO. LTD.JA GROUPMEIJI HOLDINGS CO. LTD.NISSHIN OILLIO GROUP LTD.NITORI HOLDINGS CO. LTD.

SEVEN & I HOLDINGS CO. LTD.YAMAZAKI BAKING CO.JBICMITSUBISHI UFJ FINANCIAL GROUPNOMURA PARTNERS FUNDSNORINCHUKIN BANKORIX CORPORATIONSUMITOMO MITSUI FINANCIALMIZUHO FINANCIAL GROUPSUMITOMO MITUI TRUST HOLDING

Communications should be enhanced between public/private, forest/non-forest sectors in order to make “supply chains” approach more meaningful and impactful

Better collaborations are needed even within and among the ministries

Thank you

Photo: Courtesy of CIFOR