3.7 Environmental and Social Impacts
Projects must comply with all relevant European Union, local, and national laws and regulations related to environmental and social impacts.
Project proponents are responsible for assessing environmental and social risks associated with the project, ensuring potential adverse impacts are identified and mitigated. Environmental and social impacts must be assessed as part of the project design, with ongoing evaluations as necessary, scaled appropriately to the nature and impact of forestry projects.
Where any potential adverse impacts on indigenous peoples or local communities (IPLCs) are identified during the assessment, the project proponent is required to carry out the stakeholder input process (3.5) as part of addressing any concerns.
All projects are required to adhere to the "Do No Harm"-Principle.
3.7.1 Environmental Impacts
Scope of Environmental Impact Assessment: Projects must assess and document key environmental risks related to resource use efficiency, biodiversity, soil health, and water management. This assessment focuses on the immediate and ongoing impacts of the project’s activities on the environment. Risks of reversal are addressed separately in the reversal risk mitigation plan of the applicable methodology pursuant to the requirements set out in section 2.5.10.
Mitigation and Remediation: The project proponent must implement preventative measures to avoid environmental harm. Should unintentional environmental harm occur, the project proponent is responsible for timely remediation to restore any impacted areas.
Impact Minimisation in Forestry Context: Given the low-impact nature of forestry projects, assessments are simplified. Key environmental impacts to consider include:
Biodiversity conservation, specifically avoiding unnecessary harm to local flora and fauna.
Prevention of soil degradation, erosion, and water stress through sustainable forestry practices.
Avoidance of pollution or waste generation that could impact local ecosystems.
3.7.2 Social Impacts
Social Risk Assessment: Projects must conduct a baseline assessment of social risks, with particular attention to potential impacts on IPLCs, and any other relevant stakeholders.
Stakeholder Engagement: If any risks – potential or actual – are identified, the project proponent is responsible for consulting with stakeholders as set out in section 3.5. Documentation of engagement efforts and results of the consultation must be included in the PDD, along with any relevant agreements or considerations.
Labour Rights and Community Interaction: Although risks in European forestry projects may be limited due to the high standards of labour rights across the EU, project proponents must ensure:
Safe and fair working conditions for any hired workers.
Non-discriminatory practices in hiring and treatment.
Protection of any Indigenous or community rights related to land or resources.
3.7.3 Sustainable Development Impacts
SDG Relevance and Alignment: If applicable, Projects must demonstrate contributions to the Sustainable Development Goals (SDGs) relevant to the project, except SDG 13 (Climate Action) and SDG 15 (Life on Land).
Documentation of Positive Impacts: A brief, qualitative assessment of the project’s positive SDG impacts must be included in the PDD.
Tools and Methods: The project proponent must outline any standardised tools or methods used to assess SDG contributions.
3.7.4 Waivers
If the project proponent provides evidence demonstrating that the submitted lands comply with a forest certification that upholds higher environmental and social standards, the requirements outlined in sections 3.7.1 and 3.7.2 may be waived.
The VVB will verify proof of compliance with the following recognised certifications:
Forest Stewardship Council (FSC)
Programme for the Endorsement of Forest Certification (PEFC)
3.7.5 Template
The project proponent may use a template provided by the NCS to conduct the environmental and social risk assessment.
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