Annual Administration Fee Update for Chain of Custody Certification
The annual administration fee (AAF) is a fee charged by FSC to accredited certification bodies. The AAF for chain of custody certification is calculated according to the AAF policy using the value of certificate holders’ forest products turnover in the certification body’s portfolio.
The majority of FSC’s income comes from the AAF and is used to fund FSC’s activities. As such, the AAF is a vital contributor to achieving FSC’s mission of Forests for All Forever.
AAF Investment Brings Market Value
INVESTMENT
FSC uses AAF investment to drive implementation of FSC's 2026 strategy
AAF investment will drive implementation of FSC's ambitious 2021-2026 Global Strategy. It is estimated that the AAF policy will enable FSC to invest more than US$10 million over the next three to five years. The investment will help to accelerate value chain development, implement critical upgrades in technology, strengthen system integrity, and enhance stakeholder engagement.
VALUE
The value of FSC's brand presence is growing and generating increasing demand from consumers, brands, and retailers
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.
AAF is Equitable
EQUITY
The FSC fee structure is equitable.
AAF is based on the actual forest products turnover and so all certificate holders contribute proportionately to the FSC System.
Estimate Your AAF
The AAF is calculated based on a certificate holder's actual forest products turnover using a sliding scale. This results in an equitable AAF structure.
For certificate holders to estimate their new fee from 1 January 2025, please consult the AAF Policy. For a precise figure, please contact your certification body.
Investing in Value Chains Brings New Benefits
In the past years, FSC has successfully grown the FSC brand and promoted the uptake of FSC certification in key value chains. Most notably, FSC has:
- Increased the adoption of FSC certification in key value chains such as textiles, packaging, natural rubber, and furniture, providing market growth opportunities for many chain of custody certificate holders. For example, FSC collaborated with Pirelli and BMW to launch the first FSC-certified car tyre, which is a significant step forward in the sustainable development of the natural rubber sector.
- Increased engagement with ecommerce. For example, FSC collaborated with Amazon to highlight FSC-certified products as part of the Amazon Climate Pledge Friendly platform to encourage consumers to choose more sustainable products.
- Reached millions of consumers with stories of FSC impact, most recently on EuroNews and in National Geographic.
- Continued development and expansion of FSC climate and ecosystem services solutions.
- Invested in technology to make the FSC system more transparent and allow auditors to prepare for audits virtually, thus making the audit process faster, more effective, and data driven.
- Developed and piloted new certification protocols for smallholders, ensuring forests are protected, while opening market opportunities for many small forest owners.
AAF will enable FSC to build on this progress and continue to grow the value of the FSC brand and uptake of FSC certification. In turn, this will create larger markets for FSC-certified products. In addition, further investment will accelerate development of climate and ecosystem services solutions and strengthen the integrity of FSC's system through investment in blockchain technology, helping us to address problematic supply chains.
Read more about our plans in our 2021-2026 Global Strategy.