Nepenthes vs Dalhoff, Larsen & Hornemann (DLH)

Allegations

Nepenthes filed a complaint against Dalhoff, Larsen & Hornemann (DLH) for helping to fuel violent conflict, human rights abuses and forest crimes by buying timber from countries with a high rate of illegal logging.

The complaint states that DLH buys timber from Burma and parts of Africa, where the timber industry is known to be involved in violent conflicts. Some of DLHs suppliers have also been convicted of forest crimes, and DLH has been caught buying illegal timber several times.

According to the complainant, DLH does not verify whether the timber it buys is legal, and as a result, the company ignores the fact that its timber purchases could perpetuate violent conflicts and human rights violations.

Relevant OECD Guidelines

• Version 2000 Chapter II
• Version 2000 Chapter II Paragraph II.1
• Version 2000 Chapter II Paragraph II.10
• Version 2000 Chapter II Paragraph II.2
• Version 2000 Chapter IV
• Version 2000 Chapter IV Paragraph IV.1
• Version 2000 Chapter IX
• Version 2000 Chapter V
• Version 2000 Chapter V Paragraph V.1

Outcome

The Danish NCP began working on the case after the Danish Government developed a draft position on “sustainable” and “legal” timber in Spring 2007. The NCP held three meetings: two with each of the parties and one joint meeting.

In March 2009, Nepenthes stated an independent evaluation of DLHs operating methods was required; however, the company responded that an evaluation was unnecessary.

In February 2010, the NCP closed the case, claiming it could not force DLH to conduct an evaluation. The NCP was not able to evaluate the case and could not decide whether DLH acted in violation of the Guidelines. DLH has, however, developed some internal procedures that may suggest the company will strive to act in accordance with the Guidelines.

In parallel developments, Nepenthes (which owns one share in DLH) proposed at the companys 2007 annual shareholder meeting that it should conduct its business in accordance with the Guidelines. Shareholders rejected the proposal and instead adopted a board proposal stating DLH will “aim at” conducting business in a way that is in accordance with the Guidelines. Nepenthes requested that DLH provide information about the quantity and origin of its timber purchased and relevant certifications, but the company refused.

More details

Documents

• statement

  1 February 2010

  The Danish NCP closed the case without deciding whether DLH has acted in violation of the Guidelines

  Danish business Authority/ Danisch NCP
• accept

  1 June 2006

  The Danish NCP accepted the case but put it on hold until the Danish environmental ministry concluded its work to define what was meant by “sustainable timber” and “legal timber”.

  Danish business Authority/ Danisch NCP
• file

  10 March 2006

  Complaint submitted to Danish NCP.

  Nepenthes