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Human Capital

  • Labor Practices
  • Employee Health & Safety
  • Employee Engagement, Diversity & Inclusion

Leadership & Governance

  • Business Ethics
  • Competitive Behavior
  • Management of the Legal & Regulatory Environment
  • Critical Incident Risk Management
  • Systemic Risk Management
General Issue Category
(Industry agnostic)

Disclosure Topics (Industry specific) for:
Forestry Management

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Ecological Impacts

Ecosystem Services & Impacts

Along with their timber output, forests provide valuable ecosystem services including carbon sequestration, wildlife habitat, water purification and storage, soil formation, and recreational opportunities . Meanwhile, in many regions, regulations related to water quality and endangered species protection, as well as harvesting rights that are contingent upon environmental preservation, can create operational risks for companies. As such, protecting or enhancing ecosystem services within managed forestlands could mitigate reputational, demand, and operational risks related to the potential adverse environmental impacts of forestry. Companies increasingly utilize third-party certification to demonstrate sustainable forestry management practices that serve to enhance the value and productivity of their forest assets, as well as to meet rising customer demand for sustainably produced forest products.

Human Rights & Community Relations

Rights of Indigenous Peoples

Forests contribute directly to the livelihoods of millions of people worldwide. Effective relations and engagement with local communities and indigenous populations can be important to forestry companies. Communities may be affected by forestry management operations because of environmental degradation or competition for natural resources such as land and water. Conflict with communities, including or indigenous populations, could affect a company’s ability to operate in some regions, result in regulatory action, and could cause brand impacts. Conversely, companies can provide benefits to community stakeholders through employment opportunities, revenue sharing, and increased commerce. Companies can adopt various community engagement strategies to manage the risks and opportunities associated with community rights and interests, such as maintaining positive relations with local stakeholders and accommodating communities’ needs.

Physical Impacts of Climate Change

Climate Change Adaptation

Global climate change may create long-term business uncertainty for some forestry management companies. Variations in precipitation patterns and temperatures, more frequent extreme weather events and forest fires, and an increased prevalence of tree diseases and pests could adversely impact timberlands through increased mortality or diminished productivity. Conversely, climate change could also facilitate forest productivity through increased atmospheric carbon dioxide, a longer growing season, moderating temperatures in high latitudes, greater precipitation, and expanded geographic ranges for some species, positively impacting forest productivity. In light of such variability, companies could benefit from identifying and understanding potential long-term impacts of climate change on the productivity of forestlands, and adjusting forestry management strategies to optimize the productivity of their forestland assets.

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