The MTO Group’s Cape plantations have celebrated a major milestone in 2018 – 20 years of FSC Forest Management certification. The journey continues with a commitment to maintain world-class environmental and social standards for all MTO Group companies. It is a journey rooted in the South African Government’s strategy to convert and privatize forestry land. Prior to the year 2000 State forestry was conducted through the South African Forestry Company (SAFCOL). The government then initiated a forestry land conversion process to remove untapped plantations from this use. These “exit areas” would be converted into other land uses, mostly conservation, and also agriculture and development. A stressful time SAFCOL Western Cape and Eastern Cape regions first obtained FSC certification in 1998.To prepare for sale, some SAFCOL Eastern Cape and Western Cape plantations and two sawmills were transferred to a new company, MTO Forestry (Pty) Ltd (now part of MTO Group), in November 2001. These early years of FSC certification were a stressful time for MTO. Changes due to the government’s privatization and conversion strategy occurred amidst fires and floods which required a huge effort to keep FSC certification. In April 2005, the government signed three agreements with Cape Timber Resources (CTR) to lease SAFCOL Cape forestry areas. CTR was specially set up to buy 75 per cent of MTO from SAFCOL. In the first of these, the Tokai district (956 ha, with plantations of 595 ha) was cleared of forestry and handed back to the government for transfer to South African National Parks for amalgamation into the Table Mountain National Park by 2024. The second entailed 59,802 ha (with 28,291 ha under forest) in the southern Cape being handed back to government by 2020. The third was a 70-year lease of 57,717 ha(with 36,902 ha under forest) to be managed for sustainable forestry.The trouble with standards. The exit leases created complications when plantations were FSC certified. By 2005,it was becoming clear that the government’s exit strategy was in conflict with FSC criteria, particularly Criteria 6.10. At that t me, the standard did not provide for removal of plantations, even if it was destined for conservation and involved exotic plantations, rather than indigenous forests. These plantations were removed from formal FSC certification. A change to the FSC standard to include this option could be approved only during an FSC General Assembly (GA). And in 2008,the GA voted to revise Criteria 6.10 to allow removal of plantations for rehabilitation of conservation areas. These exit areas were reinserted in FSC certification.The 2011 FSC surveillance audit resulted in MTO being issued with a major non-conformance Criteria 2.1 warning which requires demonstration of clear evidence of long-term forest use rights to the land. Exit areas were being cleared yearly, as per lease requirement. FSC standards were in place, but these areas were being handed back to the government, thus relinquishing MTO control over how land was managed. MTO maintained FSC certification for all Cape sustainable lease plantations.However, it decided to again remove the exit lease areas from FSC certification in 2012, although they are still audited externally each year against the standard. Its management believes that review of activities by an independent, internationally recognized auditor is the best way to ensure that the company continues to comply with South African laws and regulations, as well as the standards itself out in its own integrated management system. Central to realizing its vision The group’s stated purpose is “Reshaping the African timber landscape responsibly” and its mission and vision is to be the leading Pan African timber product and solutions provider. Management recognizes that maintaining FSC certification for all its companies is central to this. In November 2010, the Global Environment Fund (now managed by Criterion Africa Partners) bought the majority shareholding of MTO Forestry,and it started acquiring other forestry companies in South Africa and in Africa. MTO Group operations now span the Western Cape, as well as the Mpumalanga province. The company continues to acquire and accumulate assets, not only in plantations, but also in processing and downstream value-adding opportunities. Stakeholders FSC has also had a positive effect on the relationship of the company with its stakeholders.It has put formal stakeholder liaison programmes in place to continue to improve and build this relationship. As stated by Ntuthu Ponoyi, Stakeholder Relations Manager at MTO Group: “We always do our best to attend to all social matters for the benefit of our stakeholders and sustainability of our business through ongoing consultations aimed at creating good neighbourly relations.”