ProtectingProtecting wild placesEmpoweringEmpowering local communities

BuildingBuilding global partnerships

2009–2010 Annual Report

from the executive directorPositive change is addicting. Once you have a taste for it, it’s

impossible to return to indi�erence and inaction. At Paci�c

Environment, positive change is a way of life. As the world around us

takes a turn for the worse—with climate change impacts mounting,

oil spills ravaging our waters, and political divisions undercutting the

momentum for the environment that we enjoyed in 2009—Paci�c

Environment forges ahead, standing behind communities to �ght for

positive change.

After spending a few months away from the organization earlier this

year, I’ve returned refreshed, with a clearer view of just how

unique—and uniquely e�ective—Paci�c Environment is. Our

overhead is small, our vision clear, and our programs serious business.

We understand that this work is a privilege. We take nothing—neither

your support nor our relationships with our partners—for granted.

Together, we’re defending the Paci�c Rim’s natural treasures and

forgotten communities. We are protecting Arctic communities from

o�shore oil and gas development, holding public banks accountable

for how taxpayer dollars are spent abroad, monitoring climate change

impacts on Paci�c walrus, and improving public health in Chinese

villages impacted by water pollution from nearby factories.

Without further ado, it’s my pleasure to share with you our favorite

stories and victories from the last year…

Sincerely,

Leah Zimmerman

Interim Executive Director

Our results speak for themselves. In short, we get stuff done. With a

small staff scattered over a huge geography, we maximize a small

budget to build coalitions and partnerships that have an even greater

impact. For over 23 years Pacific Environment has taken a

community-first approach to solving the world’s most challenging

environmental problems.

Governments and corporations are drilling further and cutting deeper as

communities struggle for clean water to drink, healthy fish to feed their

families, and fresh air to breathe. Fisheries are risking depletion, oil

extraction projects threaten delicate ecosystems, and chemicals are

quickly destroying waterways. Left unchecked, these reckless and

unsustainable practices will devastate livelihoods and ecosystems.

Worse yet, the stakeholders with the most intimate knowledge of the

land are left out of the decision-making process. We believe the key to Pacific Environment protects the living environment of the Pacific Rim by promoting grassroots activism, strengthening communities, and reforming international policies

protecting the Pacific Rim’s shared treasures lies with local people, with

those most affected by reckless exploitation. This is why our conservation

strategy has proven effective time and again.

Pacific Environment has become a powerhouse of environmental

protection and social change around the Pacific Rim. With our grassroots

partners, we’ve preserved millions of acres of forests, conserved pristine

watersheds, and protected threatened species such as the bowhead whale

and Amur leopard. We’ve forced oil, gas, and mining companies to apply

higher standards to resource extraction. Most importantly, we’ve supported

local communities—the people most dedicated to long-term

environmental protection—to shape their environmental future.

AlaskaArctic

Kamchatka

SakhalinMarine Sanctuaries

CaliforniaLake Baikal

Altai

China

Our vision is simple: Local people around the Pacific Rim are the best hope for

protecting our environment over the long term. Investing in the

capacity of community-based environmental activists is how we

create a sustainable future for the Pacific Rim and for our planet.

In Alaska we strengthened and expanded community partnerships throughout the northern Arctic. We make a point to spend time in communities while also walking the halls of power, bringing community voices to Washington, DC, and to the Arctic Council. Together with our partners, we:

• Protected critical habitat for bowhead whales, polar bears, walrus, and other Arctic species by blocking offshore oil and gas development, standing �rm with a coalition of indigenous leaders, lawyers, scientists, and environmental organizations.

• Mitigated impacts from seismic testing and drilling, protecting whales and communities. We’ve successfully advocated for some of the most stringent mitigation measures ever applied to seismic testing.

• Promoted safe shipping in the Arctic. Currently 6,000 vessels make their way through Arctic waters, many making multiple voyages. These vessels dump waste that washes ashore near communities, impact whales, and pollute the air with emissions. We’ve educated communities and brought their concerns to the International Maritime Organization. As climate change impacts are ampli�ed in the Arctic and sea ice recedes, wildlife will be negatively impacted and shipping tra�c will continue to increase. We will not relent until safe shipping measures are adopted for the Arctic.

Thanks to Pacific Environment’s work and partnership with the Ratepayers for Affordable Clean Energy coalition, there is only one remaining proposal for a lique�ed natural gas (LNG) terminal on the West Coast. In short, after �ghting LNG terminals for years, our success allowed us to pivot our work from �ghting against imported fossil fuel to fighting for green jobs in California. Together with our partners, we’re making sure California keeps its clean energy policy. This year we:

• Published the “Green Opportunity” report, detailing how California can shut down its fleet of 17 aging natural gas power plants and cost-effectively replace them with renewable energy sources.

• Advocated for huge investments in locally-sited renewable energy projects with our burgeoning “Put it in Our Backyard” campaign. We organized two major conferences on the subject, one with the Local Clean Energy Alliance of the Bay Area, and another focused on Feed-in Tariffs.

• Fought to stop PG&E’s LNG import project proposed for Southern Oregon. We now have an on-the-ground organizer who is working with local landowners to oppose the project. Because of efforts from grassroots groups all over Oregon, much of the state’s leadership—including the governor—now opposes the project.

Speed Matters! National Oceanic and Atmospheric Administration scientists say that the faster ships travel, the more likely they are to collide with and kill endangered whales. Ships are safer for whales when they travel at a moderate speed of 10 knots or less.

alaska

marine sanctuaries

california energy

We covered miles of ocean this past year, raising awareness of shipping’s multiple impacts on our priceless marine environment. We must stop deadly ship strikes to whales, protect our marine sanctuaries from noises that mask the sounds whales depend on to survive, and protect the Bay from devastating oil spills. This year, we’ve made significant progress:

• We created a Joint Working Group of the Gulf of the Farallones and Cordell Bank Advisory Council to investigate shipping impacts on our sanctuaries. We created this working group through steady advocacy at California’s four National Marine Sanctuaries, with the goal of assembling stakeholders and scientific experts to mitigate threats to whales and their habitat. Program Director Jackie Dragon was also sworn in to the Conservation Alternate seat on the Gulf of the Farallones Sanctuary Advisory Council.

• We joined Marin County Assemblyman Jared Huffman to sponsor AB 234, a bill aimed at protecting our waters from oil spills during ship transfers and fueling. We shepherded the bill successfully through California’s legislature only to see it quashed by the Governor’s veto pen. Our e fforts, though, have ignited an agency review of refueling regulations, to result in increased protections.

2009 marked a year of turbulence for China’s environment. We saw the worst ever oil spill in Dalian, on China’s east coast; a devastating industrial sewage spill in Fujian province that released thousands of tons of toxic chemicals into the waterways; and a horri�c mudslide allegedly caused by excessive deforestation, that buried thousands in Gansu Province. China’s environment and people continue to suffer from shortsighted economic development projects prioritized before environmental protection. Through this turmoil, we supported our grassroots partners as they fought for change.

• In Liangjiawan, Gansu Province, our partner Green Camel Bell secured clean drinking water for a rural village that had been plagued by water pollution for over a decade, pollution that was caused by the damming of a local river.

• Our Water Network audited polluting factories, initiating public outreach and independent investigations to clean up China’s dirtiest industries.

• Together with the Green Choice Alliance, we pressured companies such as Apple, IBM, and Intel to clean up their polluting supply chains in China. Our letter-writing campaigns in China and the US garnered over a thousand letters to Steve Jobs alone, and forced 29 companies to heed our concerns.

We support the emerging Chinese and Russian environmental movements by offering stable financial support; partnering in the development of effective public participation, legal, advocacy, andmonitoring strategies; and connecting our grassroots partners with international organizations and experts to augment ongoing campaign work.

china

“You organized and conducted an outstanding event. Congratulations and thank you for your tremendous effort and result.”

—Craig Lewis, FiT Coalition (on the conference, “Feed-in Tariffs: A Time for Real Action on Renewable Energy”)

photo Dean Biggins

photo Jackie Dragon

photo Xiu Min Li

photo Ellis Doeven

russia

responsible �nanceOur Responsible Finance Program is at the forefront of international bank reform, holding international �nance institutions accountable for harmful extractive projects that threaten local communities and the environment. Protecting the way your tax dollars are used abroad, we:

• Strengthened the environmental policies of the U.S. Overseas Private Investment Corporation (OPIC), including by closing harmful loopholes for �nancial intermediaries and climate change policies. These changes make OPIC’s policies some of the strongest of any public bank in the world.

• Exposed the U.S. Export-Import Bank’s (a U.S. government finance agency) record-breaking $3 billion in financing for an ExxonMobil fossil project in Papua New Guinea just as climate talks opened in Copenhagen.

• Increased public scrutiny of the failed climate change policies of the U.S. Export-Import Bank, securing press coverage in Business Week, Newsweek, New York Times, Environmental Finance, and on National Public Radio.

Environmental catastrophes like the Gulf oil spill and this summer’s devastating fires near Moscow have given eastern Russia’s environmental groups new impetus to oppose the rapid development of oil and gas, mineral, timber, and ocean resources. Pacific Environment continues to bolster these organizations’ efforts by providing direct support, engaging in joint advocacy, and building local, national, and international coalitions. Here are a few highlights from our work:

• We supported over 20 groups with over $600,000 in subgrants to support grassroots conservation projects and campaigns.

• In Kamchatka, our partners demanded that the oil and gas company Gazflot employ internationally accepted best practices when conducting seismic testing and drilling exploratory wells on the Western Kamchatka Shelf.

• We worked with Microsoft and the media to defend Baikal Environmental Wave from extreme government pressure, applied under the false pretense of cracking down on pirated software.

• The Geblerov Society won an important victory in court to prevent logging companies from exploiting protected forests in Altai.

In many remote areas of Russia,

local residents are embracing solar

power as a cheap and

environmentally friendly alternative

to expensive diesel generators.

In 2009, the U.S. Export-Import

Bank provided 2.56 billion dollars

for harmful fossil fuel projects,

which is about 25 times the

amount the bank provided to

renewable energy projects.

�nancial report

Statement of Financial ActivityApril 1 to March 31

REVENUE AND OTHER SUPPORTTotal Grants Unrestricted Temporarily RestrictedTotal Contributions Unrestricted Temporarily Restricted Program Service Fees Interest and Dividend Income Gains (Losses) on Market Value of Investments (Loss) on Disposal of Equipment Other Income Foreign Exchange

TOTAL REVENUES AND OTHER SUPPORT

EXPENSESPrograms and Campaigns Grants to Partner Organizations Total Program Services

Management and General Fund Development

TOTAL EXPENSES

NET INCOME

Net Assets on March 31Cash Assets Accounts Receivable Short-term Investments Grants Receivable Prepaid Expenses Net Property and Equipment Deposits Less: Accounts Payable Accrued Expense Partner Grants Payable

TOTAL NET ASSETS

Report based on 2009–2010 and 2008–2009 audited �nancial statements.Visit www.paci�cenvironment.org/annualreport for an electronic copy of this report.

2008–2009

1,915,067

296,598

14,70017,994

1,244(1,771)

00

2,243,832

1,600,496419,238

2,019,734

236,044164,835

2,420,613

(176,781)

2,890,819289,996

5,9531,547,5661,232,829

42,98832,78017,478

(42,172)(126,099)(201,500)

2,890,819

2009–2010

2,410,94634,397

2,376,549

224,40594,366

130,039

35,00028,655(2,559)

013,963

(34,397)

2,676,013

1,655,226807,500

2,462,726

265,406166,367

2,894,499

(218,486)

2,672,333621,126

33,1071,242,4131,202,451

37,51130,19718,000

(51,080)(117,202)(344,100)

2,672,333

Programs and Campaigns1,655,226

Programs and Campaigns

Grants to Partner Organizations

Grants to Partner Organizations807,500

Management and General265,406

Fund Development166,367

57%

57%

28%

28%

9%

9%

6%

Total Expenses2,894,499

100%

6%

Expenses 2009–2010

Support & Revenue 2009–2010

photo Zov Taigi

100%

Grants2,410,946

Investment & Other Income5,662

Total Support & Revenue2,676,013

Program Service Fees35,000

Contributions224,4058%

90%

1%

<1%

Managementand General

FundDevelopment

Grants

Contributions Program Service Fees

Investment &Other Income

90%

8%

1%

<1%

STAFFGalina Angarova Russia Program Associate (Community)

Nicole Catalano Communications Manager

Rory Cox California Energy Program Director

Jackie Dragon Marine Sanctuaries Program Director

Mazie Fitzgerald Executive Assistant

Igor Goldfarb Consultant, Kamchatka

Carole Holley Alaska Program Co-Director

Sharmila Kana Foundation Relations Manager

Colleen Keane Alaska Program Associate

Shannon Kellman Development and Communications Associate

Leah Lander Operations Manager

Shawna Larson Alaska Program Co-Director

Xiu Min Li China Program Director

Doug Norlen Policy Director

Evan Sparling Russia Program Associate (Kamchatka)

Marcy Straw Deputy Director of Development & Operations

Wen Bo Senior Fellow, China

Audrey WoodRussia Program Associate (Campaign)

Min Zheng China Program Associate

Leah ZimmermanInterim Executive Director

BOARD OF DIRECTORSBJ Chisholm, ChairHelena BrykarzDebbie ChapmanCraig Cramer, Secretary-TreasurerKathy DoanHerb HammondStuart KaplanWalt ParkerPeter RiggsRaisa ScriabineJane Zhang

FOUNDATION, CORPORATE & GOVERNMENT SUPPORTThe Annenberg FoundationL.P. Brown FoundationThe California EndowmentMargaret A. Cargill FoundationCisco Systems Matching Gift ProgramClean Air - Cool PlanetClifBar Family FoundationConservation, Food and Health FoundationEarth Share of CaliforniaEarth Friends Conservation FundFitzgerald, Abbott & Beardsley, LLPGIS ConsultantsGlobal Greengrants FundGlobal TravelGoogle Matching Gifts ProgramRichard and Rhoda Goldman FundIsland PressJewish Communal FundKadoorie Charitable FoundationThe J.M. Kaplan Fund

Kwok Charitable TrustLawrence FoundationMarisla FoundationMcKenzie River Gathering FoundationGordon and Betty Moore FoundationMoriah FundMorrison & Foerster FoundationCharles Stewart Mott FoundationNational Science FoundationOak FoundationO’Keefe Family FoundationOpen Society InstituteThe Pew Charitable TrustsRedwood CreekRegional Marine Conservation ProjectSan Francisco FoundationSeven Castles LLCSigrid Rausing TrustTrust for Mutual UnderstandingWeeden FoundationWells Fargo FoundationWestWind FoundationWilburforce Foundation

INDIVIDUAL SUPPORTERSAnonymous (3) Nabil Abdelfattah & Liv ImsetTodd Acker Eva Adamyan Debbie & Michael Aiona Sarah Aird Susan & Charles Alexander Katie Allan & Bill Spainhour Lani Alo Danny Ames Tom Anderson Helen Anderson Karolo Aparicio Amin Arikat Jared Asch Xanthippe Augerot & Josiah FisherMarjorie Balzer Jaryn Barker & Pete BeckwithPatricia Beall Brian Berkey Phil & Carla Berry Ginny Berson Anne Bertaud-Peuto & Bernard PeutoStephen Berzon Bob Bethea & Joan AnthonyKara Block Shira Blum Ronald Bogin Carmen Bonilla-Jones Scott Boone Ashley Boren Jonathan Borgieda Peter Bosshard Percy Boucher Amanda Bradford Patricia Bradford Dean Bradley June Brashares Peter Bratach Melissa Braukman Francine Brevetti Delia Brinton Gerald Brookman Robin Brooks Krista Brown Helena Brykarz Verity Burgess Vladimir & Valentina BurkanovLisa Marie Burkhard William Campanello Hamilton Candee Thomas Carlino Matt Carreira Catherine Carter Phaedra Caruso-RadinJeremy Chapman Deborah Chapman Sudipta Chatterjee Debbie Chinn BJ Chisholm Janet Chisholm Ione Clagett Robert Cole & Jean MacGregorSandra & Michael Coleman Jill Cornwell & Barry Nelson Caitlin Costin John Courtney Janet Cox Fred Cox Larry Crane Mary Crolius Harriett CrosbyRichard A. Cummings Carina Dames Luke Danielson Leandra Darcy Donna DavidsonJudith Davis Je� Den BroederJackie Dennis

Cli�ord Diver Kathy Doan Lewis DolinskyBrian DonahoeBridget DoonanRoseann DudrickKate Dunham William DvorakJon Elam Robert Ellis Judith Embry Tom Eng Larry Evans Stephanie EvansRobert Fay Simon Firth Michael FischerSheilah Fish David & Natalie FisherScott Fitzmorris Mortimer & Francoise FleishhackerRichard Forrest Brent Foster Kirk Francis Mitch Friedman Erin & Michael Frost Michael Fuchs Kathryn GallagherSanjay Garla Keith Gayler Grace Gellerman Becca & Kurt Gisclair Sheilah Glover Polita Glynn Larry & Shirley Godwin Marsha & Eric Golangco Thomas Gold & Lucy HarrisKevin Goldsack Eileen Goldsmith & Scott KronlandMichael Goldstein William Gonzalez Janet Goodman Neva Goodwin Ingrid Gordon Marc Gordon David & Lysbeth Gordon Gillian Gordon-Smith & Todd SmithQuinn Gorges Joan Gorrell David Gossett Deborah Gouailhardou Katherine Gould-Martun Lorraine L. Grace Andrea Graessle James Graham Christine Greenwood Pete Grogan Joanna Gubman John GussmanRobert Haley Herb Hammond Alan Harper & Carol BairdRandy Hayes Caroline Heal David Helvarg Elizabeth Hewson Peggy Hilden Nathan Hirsch & Alicia SuskiKenneth Hittel Carole Hoefs Trina Horner Miran Horvat Cathy Houde Karen Hoy Karen Humber David Hunter & Margaret BowmanDavid Husch Mark Hutchin Hallie Austen IglehartMark Inouye Rodney Jackson & Darla HillardBruce Jo�e Jeremy JohnsonLeonides & Anthony Jong Cynthia JosaymaPaul Joy Laura Juran & Raphael SperryClaire KadlecekAlbert Kadosh Susan Kagan Avi Kagan Ron Kagan Miranda Kaiser Bharat & Manveen KalyanpurSharmila Kana Larry & Christina KaneStuart Kaplan & Barbara MeislinCarol & Richard Katzo� Martha Kau�manIva Kaufman Marcie Keever Rob Keller Mary Kelley Heather KellmanShannon Kellman

Alycia KellmanHope Kellman Nancy KellmanCelina Kellogg Karen Kelly Daniel Kessler Thomas King Eliza Klose Peter KlostermanCarl & Marilyn Kocher Steven Kohl Melinda Kramer Sebastian Krawczuk Jennifer Krill & Scott Kocino Peter Kristoph Sharon Kulz Lida Kvashina Alfred Kwok Meerim Kylychbekova Johann Laetz Sarah Lamnin Gary Lapid Emily Lee Tamara Lee William & Lucille LeeAaron Lehmer Scott Leiby David Lemon Eric Lerner Kent LewandowskiCraig Lewis Stacey Leyton Anne LiebermannChristopher Lish Clinton & Kristi Littleton Rob & Lisa Lourie Monica Luke Linda Lye Loretta Lynch Edward Mainland Jerry Mander Jesse Marquez Sherry Marsh Tamera Martin Michael Marx Cindy Mason Alan & Judy Massengill John & Pam McCosker Michael & Diane McGill Scott & Kate McGlashan Rick Mei Kenneth & Vera Meislin Carol Merrill Brent Merrill & Mike King Katie & Steven Messick Gordon & Linda MeyerJames Miller Ray & Anja Miller Roger Miller Xiu Min Liu Nori Mizushima Michele Mont-Eton Marianne Moore Charles Moore & Brennan Van Dyke Diane Morey Mary Lynn Morales Lou Morgan Kathleen Morgen Paul Moss Amy Mower Dana Mulvany Maeve Murphy Michael & Mary Murphy Doug Murray & Peggy BlumenthalNana Murugesan Scott Myerson Allen & Martha Neuringer Penelope Nielsen Rebecca Noblin Cynthia OhamaMichael O’Heaney & Laura KurreGail Osherenko & Oran YoungLeonard Pak Helen Panitt David Paradise Alison Parker Walter Parker Burton Peek EdwardsAli Peman Michele Perrault Carl Pezold John Pinson Renee Poirier-PoundDavid Postal Simon Poulton Bill Powers Ella Preger Theodore Raab & Domenique BergmannCindy Rasmussen Ted Rassieur Jim Ratli� Leland Ray James Red�eld Kristin Reed Mary Rees

Beverly Reeves Craig Reeves Lauren Regan Jan Remak Miriam Rhew Mary Jo Rice Dale Riehart Peter Riggs John & Mary Robertson David Rockefeller Claudia Rodriguez-Ibanez Christine Rolfes Armin Rosencranz Gunnar Rosenquist Claudia Rosenthal Heather Rosmarin Peter Rothblatt & Mae ChesneyRochelle Rubinger Mike Ruby Dianne Sa�ord Audrey Samelson Robert Sanders Jeanette Sasek Alixine Sasono� Charles Saylan Brenda Scarborough Laurie Schram Enid Schreibman Mark Schreier Darlene Schueler Kingston & Liz Schwerer-Du�eKirsten Schwind Michael Scott Raisa Scriabine David & Marie Scudder Deb Self Kazim & Rebecca SenogluMarc Shargel Kevin Sheard Raja Shekhar James Shelton Pat Shields Daniel & Joanne ShivelyTeri Shore Daniel Silver Dana Simon Donald Sladkin Carol Smith Toni Smith Jennifer Smith-Lee Maryly Snow Rina Sonobe Reed Sparling Charlie Stein Todd Steiner Mary Strauss Marcy Straw & Mark WestlundMelissa Swinney Andrew Sybilrud Toby Symington Steve & Andrea Taber Zoe Tang George Taylor Marie Telega Lauren Thiem Jesse Tieger Jesse Tippett Heather Todd Marianne & Tom Townsend Alan Tracy Lisa Tracy Judith Tracy Cecilia Trost & Rich JepsonMark Turner Kathrine Turner Mark Vallianatos E.T. Van Popering Vivienne Verdon-Roe & Michael PorterRob Vincent & Connie LaventurierLaura Wais Nancy Ewen Wang Michael Ward Pamela Warren Sandra Wassillie Gary Waxmonsky Valerie Wayne Teresa Webb Jonathan Weissglass Adam Werbach Margaret Williams Percy Boucher Williamson David Wimpfheimer Abigail Wolcott Laura Woltag Gordon Wong Hanson Wood Nobuyuki Yamada Susan & Masatoshi YamanakaViolet& Thomas Yeaton Rives Yost Lee & Peggy Zeigler Jane Zhang Brooke Zobrist Michael Zwirn

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