European Environmental Paper Network

EEPN

WWF International, Greenpeace International, Finnish Nature League, Finland, Finnish Association for Nature Conservation, Finland, Milieudefensie, Netherlands, FERN, Belgium, Robin Wood, Germany, British-Russian Ecocultural Network, UK, worldforests, Scotland , Terra! onlus, Italy , Friends of the Siberian Forests, Russia, ForestEthics, England, Friends of the Earth England, Wales & Northern, Ireland, UK , Urgewald, Germany, Bruno Manser Fonds, Switzerland, Reforesting Scotland, Scotland, Friends of the Earth Forest Network (Melbourne), Australia, PRO Regenwald, Germany, Friends of the Earth Finland, Finland, Watch Indonesia, Germany, Forest Peoples Programme, England, Boreal Forest Network, Canada, Borneo Orangutan Survival Foundation (BOS), Germany, Estonian Green Movement, Estonia, Estonian Fund for Nature, Estonia, SPOK, Russia, Tropica Verde, Germany , Goongerah Environment Centre, Australia, Environment East Gippsland, Australia, Norges Naturvernforbund (FoE Norway), Norway, Kola Biodiversity Conservation Centre, Russia, Youth and Environment Europe, Czech Republic, GLOBAL 2000, Austria, Safier, Belgium, Bond Beter Leefmilieu, Belgium, Taiga Biological Station, Canada, Swedish Society for Nature Conservation, Sweden, AK Regenwald Aschaffenburg, Germany, Teachers for Forests, Australia, Biodiversity Conservation Centre, Russia, Initiative 2000plus Berlin, Germany, Ecodevelop, Germany, International Animal Rescue, Malta, Salva le Foreste, Italy, ARA (Working Group on Rainforests and Biodiversity), Germany, Amici della Terra, Italy, Ecoinstitut Barcelona, Spain, Forum Ekologie & Papier from Germany, The Polish Green Network, Movement for Defense of the Khimki Forest, Baltijos aplinkos forumas - Lithuania, Timberwatch, South Africa, Natur og Ungdom / Nature and Youth, Norway, WALHI/Friends of the Earth Indonesia

Common Vision for transforming the European

paper industry

• Reduce paper consumption.• Source fibre responsibly.• Reduce reliance on virgin tree fibre • Ensure social responsibility.• Ensure clean production.

World Resources Institute

8,000 years ago

Today, just one fifth of the world's original forest cover remains in

large tracts

World Resources Institute

A CASE STUDYWhere paper production leadsto massive forest destructionhuman rights abuses, biodiversity loss and climate change…

Indonesia•19% of the world’s plants•12% of mammal species•15% of reptilian/amphibian species•17% of bird species

WWF 2010

72% of forests is lost already1.7 millions ha / year51 square kilometres / day300 football field / hour

1990Peatland forest: 7.5 million ha (85% forest cover)Non peatland forest 17.7 million ha (50% forest cover)

Loss of Natural Forest 1990 - 2008

Riau

Jambi

South Sumatra

North Sumatra

Aceh

West Sumatra

Bengkulu

LampungWWF 2010

1985 - 2007Natural forest loss on peat: 37% of total lossNatural forest loss on non peat: 63% of total loss2007Natural forest 2007 remaining on peat: 19%Natural forest remaining on non peat: 81%

2008Peatland forest: 2.4 million ha (28% forest cover)Loss since 1985: 5.0 million ha (67% loss)Non peatland forest : 10.2 million ha (29% forest cover)Loss since 1985: 7.5 million ha (42% loss)

Riau

Jambi

South Sumatra

North Sumatra

Aceh

West Sumatra

Bengkulu

LampungWWF 2010

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

ton/

year

CPO Production

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000 A

ir dr

y to

n/ye

ar

Pulp Production

Natural forest loss in Sumatra

Indonesia’s national production of two commodities

Two powerful & controversial Indonesian cartels largely control the market for cheap commodities

Sinar Mas Group - Vertically integrated owner of Asia Pulp & Paper, PT Aria Abadi, Golden Agri Resources, PT SMART, etc.

Royal Golden Eagle Group - Affiliated with Asia Pacific Resources International (APRIL), Riau Andalan Pulp, PT Asian Agri Agro, etc.

Facts & figuresSMG and RGEG control over 80% of Indonesian pulp capacity and 20% of crude palm oil production.APP and APRIL have 2 of the world’s largest pulp mills in Riau, Sumatra separated by less than 100km.SMG has an oil palm land bank of 1.3 million hectares, the world’s largest.

Asia Pulp & Paper (APP): one of the world’s largest pulp & paper companies and the largest in Indonesia and China

A "pyramid companies and practice ainterplay between private and public businesses” Joe Studwell, Asian Godfathers

Between 1995 and 2009550,000 ha of tiger habitat240,000 ha of elephant habitat 1,500 ha of orang-utans range forests

90% of APP and APRIL new concessions on deep peat (>4m. = illegal*)Peat: up to 300 t. carbon / haIndonesia is world's third largest greenhouse gas emitter.* Presidential Decree Number 32/1990, Government Regulation Number 26/2008 and Law Number 26/2007.

Social impacts

Police Fire Bomb and Evict Community in Arara Abadi Concession (APP)

Conflicts with local communities The case of Suluk Bongkal

Riau 2 mill t/yr +2 mill t/yr

Jambi 0.7 mill t/yr +1.3 mill t/yr

S. Sumatra 0 mill t/yr

+ 2 mill t/yr

W. Kal 0 mill t/yr

+ 2 mill t/yr

Papua0 mill t/yr

+ ? mill t/yr

Province:Current capa.:

New capa.:

APP’s pulp production expansion plans

APRIL in Riau: 2.2 mill t/yr +1.5 mill t/yr

APRIL’s pulp production expansion plansAPRIL in E. Kal:

0 mill t/yr + ? mill t/yr

APP & APRIL’s impacts

26 - Sumatran Islands Lowland and Montane Forests

31 - Borneo Lowland and Montane Forests 14 - Southern New

Guinea Lowland Forests

E. Kal 0 mill t/yr

+ 2 mill t/yr

http://www.nationalgeographic.com/wildworld/ Global 200 map (colored areas are Global 200)

• 2009: concessions on around 5% of Riau remaining natural forests.

• 2010 new concessions in the landscapes of UNESCO Giam Siak Kecil-Bukit Batu Biosphere Reserve, Bukit Tigapuluh, Kampar Peninsula, Kerumutan and Senepis-Buluhala.

Market expansion

• Fibre Excellence Tarascon (France) • Fibre Excellence St-Gaudens(France)• Scheufelen (Germany)• Mackenzie (Canada)• Meadow Lake Mechanical Pulp (Canada)• Prince Albert Pulp (Canada)• Howe Sound Pulp and Paper (Canada) • Northern Resources (Canada)• … the next?

Acquisitions

Greenwashing - certification

“the majority of APP’s production facilities hold Chain-of-Custody certification from LEI and PEFC.”

Greenwashing - certification

“PEFC Chain of Custody cannot be claimed to demonstrate a company’s sustainability”

Greenwashing - Climate

“When plantation sequestration is considered, APP’s weighted average carbon footprint is reduced considerably, close to neutral per ton of paper industry”

104°0'E

104°0'E

103°30'E

103°30'E

103°0'E

103°0'E

102°30'E

102°30'E

102°0'E

102°0'E

1°0'

N

1°0'

N

0°30

'N

0°30

'N

0°0'

0°0'

0°30

'S

0°30

'S

105° E

105° E

100° E

100° E

95° E

95° E

5° N

0°

0°

5° S

¨0 10 20 30 405

Kilometers

Kampar Kerumutan Landscape

2008 Natural Forest APP Associated ConcessionAPRIL Associated Concession

The KamparPeninsula

Greenwashing - Climate

Greenwashing - Climate

“APP’s emissions in 2006 is 67-86 million tons of CO2 from its Indonesian pulp and paper mills and forest concessions. APP’s 2006 total emissions were higher than those of 165 countries around the world.”

Greenwashing

“APP and its pulpwood suppliers play a leading role in the sustainable protection of endangered flora and fauna”

- Giam Siak Kecil - Bukit Batu - Taman Raja- Bukit Tigapuluh - Senepis Sumatran Tiger

Sanctuary

Greenwashing

“APP has a zero tolerance approach to illegal timber”

RAMIN

The trade of ramin (Gonystylus spp.) is banned under Indonesia’s laws and national CITES regulations.

RAMIN

PT Satria Perkasa Agung, micro-delination, Riau, 2008 (to source APP’s Indah Kiat Perawangmill)

Commercials

Greenwashing - Climate

The Dutch Advertising Code Commission (DACC) judged that APP’s TV and paper adverts, which positions APP as a company that cares about the environment, are misleading the public.

La rete politica

• July 2010: joint NGOs letter to the paper industry

• Disney, Mattel, Kraft, Kroger, National Geographic, Walmart, Xerox, Staples / Corporate Express (USA)

• Tesco, Robert Horne, Marks & Spencer, Parragon, Sainsbury, Unilever (UK)

• Mondadori, Burgo, Rusconi, De Agostini, Intimissimi/Calzedonia (Italy)• Idisa Papel, Susaeta, Unipapel (Spain);• Metro Group, Adidas, Tchibo, Deutsche Post, Burda, Karlstadt, Metro,

Montblanc (Germany)• Danone, Carrefour, BNP-paribas, Leclerc (France)• Lego (Denmark)• HSBC, Nestlé (Switzerland)• Cartamundi, Delhaize (Belgium)• ING (The Netherlands) • Unisource (Canada)• Spicers (New Zealand)

The answer from the market

APP commitment to stop pulping natural forests and relying on plantation’s fibre.

• 2004 commitment by 2007• 2007 commitment by 2009• 2011 commitment by 2015• …next?

South Sumatra• New huge paper mill in

Pulai Gading with a line of a capacity of between 1.5 and 2.0 million tonnes per year of pulp.

• A second pulp mill in Jadi Mulya.

• November 2012: joint NGOs letter to the Banks and financial institutions