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A Revised AAF
FSC has revised the AAF structure for chain of custody certification to make it more equitable and provide FSC with additional funding to invest in increasing the value delivered by FSC; thereby creating more value for certificate holders.
Additional Investment Brings Market Value
Additional investment will drive implementation of FSC's ambitious 2021-2026 Global Strategy. It is estimated that the new AAF policy will enable FSC to invest more than US$10 million over the next three to five years. The additional investment will help to accelerate value chain development, implement critical upgrades in technology, strengthen system integrity and enhance stakeholder engagement.
The value of FSC's brand presence is growing
The value of FSC's market presence is growing and generating more and more opportunities to engage positively with consumers, brands and retailers for the benefit of the world's forests. Strengthening FSC will enable the organization to respond to market needs and leverage these opportunities. Increasing awareness of and demand for FSC-certified products will create market opportunities for chain of custody certificate holders, and thus incentivize the adoption of sustainable forest management across an increasing area of the world's forests.
Coming Soon: A More Equitable AAF
Currently, the AAF for chain of custody certification is calculated according to a series of wide bands of forest products turnover, with a fixed fee charged depending on the turnover category that a certificate holder falls into. This is set to change from July 2022, to make the AAF more equitable.
The current AAF calculation can lead to inequalities because companies at the lower end of a turnover band pay the same fee as those at the top of the band. For example, a company with forest products turnover of US$101 million will pay the same fee as a company with a forest products turnover of US$499 million, using the turnover band method. To address this, a new structure will be introduced that calculates AAF based on the actual forest products turnover, rather than using broad ranges. In addition, the single site discount will be removed.
Estimate Your New AAF
The new AAF will be calculated based on a certificate holder's actual forest-products turnover using a sliding scale. This results in a more equitable AAF structure.
For certificate holders to estimate their new fee from 1 July 2022, please consult the AAF Policy. For a precise figure, please contact your certification body.
The New AAF Applies From 1 July 2022
