Malaysia’s Prime Minister Anwar Ibrahim should reform the “broken” Malaysian Timber Certification Scheme (MTCS) due to the challenges faced by Indigenous communities, while urging it to be aligned with the EU’s Deforestation Regulation (EUDR), according to a group of non-profits.

In a detailed report titled ‘How to Fix Critical Flaws in Malaysia’s Timber Certification System’, five civil society groups including SAVE Rivers, RimbaWatch, KERUAN, Bruno Manser Fonds, and The Borneo Project highlighted the shortcomings in the current MTCS, and demanded an immediate overhaul of the system, a statement released by climate watchdog RimbaWatch said Tuesday.

MTCS is a certification system for timber and timber products sourced from natural forests and forest plantations in Malaysia and was developed to promote sustainable forest management practices in the timber industry in a bid to safeguard the environment and the country’s rich biodiversity.

However, according to the report, Indigenous communities face numerous obstacles during the certification process when logging takes place on their lands.

A majority of the local communities do not understand the forest certification process including the objectives and meaning of Forest Management Unit (FMU) operation.

As well, free, prior, and informed consent (FPIC) consultations are not prioritised during the audits, the statement said.

“Communities are routinely unable to access reports, even when they formally request copies, including maps of their own territories and mitigation requirements.”

Malaysia lacks national legislation on freedom of information, making it challenging for communities and the public to access crucial information.

The report comes at a time when a joint task force between Malaysia, Indonesia, and the EU is set to meet in Brussels on Thursday to discuss matters related to EUDR implementation, where civil society groups have been promised to be allowed to participate.

Globally, forest-related certification schemes are under increasing pressure to improve their implementation and strengthen due diligence processes in order to align with the EUDR, the statement added.

The EUDR was endorsed last year and comes into effect in 2025.

CONFLICTS OF INTEREST

The report, based on case studies and detailed analysis in the state of Sarawak, found there was “a troubling lack” of independence among auditors, who relied mostly on the companies they were auditing for logistical support during field visits, presenting a conflict of interest.

“The lack of auditor independence appears to lead auditors to prioritise company participation over the enforcement of ethical standards,” it added.

“The auditing process is fundamentally flawed and biased, while the Malaysian Timber Certification Council (MTCC) lacks effective tools to ensure that products bearing the MTCS logo meet the promised standards.”

MTCC is the governing body of the certification scheme.

The report also found that the selection of auditors was at the companies’ discretion, who also paid the auditors directly.

“The threshold for non-conformities that lead to a suspension of the certificate was left to the discretion of the auditors, making the process inconsistent,” it said.

As well, it was found that participation of local communities in meetings with consultants or companies was often misconstrued as consent and such “token consultations” raised questions about the authenticity of community involvement.

Moreover, companies and auditors, possessing greater resources and knowledge, often wield disproportionate influence over communities, it added.

RECOMMENDATIONS

The policy report offered solutions in order to strengthen environmental protections and safeguarding rights of Indigenous peoples.

It called for strengthening of certification standards and auditing procedures and suggested improvement on independence and accountability of auditors in the entire auditing process.

The report also suggested to enhance FPIC compliance and consultation and urged for the revamp of the complaint mechanism.

Lastly, it called on the prime minister to improve freedom of information, ensure civil society protections, and codify Indigenous rights into national legislation.

By Nikita Pandey – nikita@carbon-pulse.com

*** Click here to sign up to our twice-weekly biodiversity newsletter ***