Land cover is monitored at least annually The rule of law is established The jurisdiction has low corruption levels

2.3 Existence of a system to verify legality of commodity production or a commitment to implement such a system, for the production of one or more forest risk commodities The jurisdiction has developed or committed to implement a system that verifies the legality of production of one or more FRCs. Examples include jurisdictions that have signed a Voluntary Partnership Agreement VPA with the EU and are implementing a legality assurance system for tropical timber exports, or national certification schemes such as the Indonesian Sustainable Palm Oil System ISPO that certify legal production. Yes: 6 pts No: 0 pts

2.4 Land cover is monitored at least annually

The jurisdiction has developed a process to monitor land cover change on at least an annual basis. Jurisdictions that are currently developing a process are awarded fewer points. Examples include satellite monitoring systems developed as part of National Forest Monitoring Systems for REDD+ strategies. Yes: 6 pts Developing: 1 pt No: 0 pts

2.5 The rule of law is established

The extent to which the rule of law is perceived to be present within a jurisdiction according to the World Bank’s Worldwide Governance Indicators that range from -2.5 weak governance to 2.5 strong governance. The Governance Indicator score for each jurisdiction is weighted as a proportion of the 6 available points. The rule of law is defined as ‘the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence ’ 3 , Weighted out of 6 pts

2.6 The jurisdiction has low corruption levels

The extent to which the jurisdiction’s public sector is perceived to be corrupt according to Transparency International’s Corruption Perceptions Index 2015 4 . The Index ranges from 0, where a country is perceived as highly corrupt, to 100, where a country is perceived as very clean. Each jurisdiction’s score is weighted as a proportion of the 6 available points. Weighted out of 6 pts 3 The World Bank Group 2016. The Worldwide Governance Indicators. [Online] Available from: http:info.worldbank.orggovernancewgiindex.aspxhome 4 Transparency International 2016. Corruption Perceptions Index. [Online] Available from: http:www.transparency.orgcpi2015results-table SUBNATIONAL JURISDICTIONS The extent of decentralised governance in some tropical forest countries makes it important to recognise the role that subnational governments play in addressing deforestation. The 10 subnational jurisdictions were assessed for similar criteria as national forest jurisdictions, with a Policy section and Transparency Governance section accounting for 50 of the overall score respectively. POLICY NUMBER INDICATOR MAX POINTS 1.1 National Policy Context This indicator refers to questions 1.1 to 1.3 in the forest jurisdictions methodology above. The overall Policy score of the national jurisdiction in which the state or province is located is weighted as a proportion of the 12 available points. Weighted out of 12 pts 1.2 Existence of a public policy to end or reduce deforestation from the production of one or more forest risk commodities Commitments to achieve zero deforestation of natural, primary, intact andor high conservation value forests are awarded full points. Commitments that are regional or ecosystem specific that protect the above forest types from industrial production of one or more FRCs, or jurisdiction-wide zero net deforestation commitments are awarded fewer points. Commitments to reduce deforestation rates or protect a stable level of forest cover from deforestation but that do not necessarily specify protection of certain forest types are awarded points for a ‘Reduction’ commitment. Commodity-specific, multi-stakeholder commitments endorsed by or in which the government is involved qualify for points. Jurisdictions are not awarded points where they have endorsed collective goals, such as the Rio Branco Declaration or the New York Declaration on Forests, without repeating such commitments within their own policy. Zero: 18 pts Zero net, commodity, region or ecosystem specific commitment: 12 pts Reduction commitment: 5 pts None: 0 pts TRANSPARENCY GOVERNANCE NUMBER INDICATOR MAX POINTS

2.1 National Transparency and Governance Context