Lafcadio CortesiForest Campaign Director, RAN

October 21, 2010

Achieving Reforms in Indonesia’s Pulp and Paper Sector;

Information and Ideas for Publishers and Printers

Presentation Overview

1. Rainforest Action Network and RAN’s Forest Program

2. The Need for Pulp and Paper Sector Reforms

3. The Publishing Industry and Opportunity to Leverage Reform through the Supply Chain

4. What Reform Looks Like

5. Pathway to Reform

RAN Background & Forest Program

Founded in 1985 to help protect forests and forest peoples rights – has added energy & climate

Works with private sector to leverage purchasing power and investment for change

4.5 million budget & 32 person staff in SF, Tokyo, Edmonton and DC

Forest Program focused on helping protect Indonesia’s forests and forest dependent peoples

Working with local networks and engaging with customers and investors in palm oil, pulp and paper and with policy makers, influencers and the public

Current industry practices are unsustainable and are having negative impacts on:

- Forest Communities

- The Climate

- Biodiversity

Pressing Controversy - the need for reforms to Indonesia’s pulp and paper industry

Police Fire Bomb and Evict Community in Arara Abadi

Concession

Continuing natural forest conversion on peat unsustainable and highly emissive

APRIL & APP practices also pose significant risks to supply chain partners’ business and brands

Fiber Testing in Coated Paper Children’s Books

-Top 10 Children’s Book Publishers

- 30 samples of color kid’s books on coated paper printed in China

- 60% found with Acacia

- 10% with MTH

Supply Chain Links and Opportunities for Publishers & Printers to Secure

Reforms

What Reform Looks Like No sourcing from or conversion of natural forests No sourcing from or conversion of peatlands or high carbon landscapes

Resolve land disputes and social conflict

Shift fiber production to “barren lands” on mineral soils with free, prior and informed consent of indigenous and affected communities

No mill capacity expansion without wood supply in place

Independent verification of the above

Pathway for Achieving Reforms

Goal:

Eliminate controversial fiber and suppliers from papers used. Initial focus on eliminating controversial sources linked to deforestation and degradation in Indonesia. Action:

Publishers and printers establish purchasing requirements for paper and suppliers

Require Transparency and Specify Environmental Paper:

1. Disclosure from paper manufacturers/suppliers with detailed description of (origin & species) break down of fiber basket to concession level

2. No paper that contains natural forest (MTH) or plantation (e.g. acacia) fiber from Indonesia or is from APP or April or affiliated companies (e.g. Goldeast) until reforms achieved and independently verified

3. Substitute with FSC certified, high recycled content or other non controversial sheets

Timelines & Verification Establish Timeline and benchmarks for current

vendors:

If reforms are not undertaken within 6 months, require printers to switch papers used or shift business elsewhere

Work with stakeholders who develop benchmarks and indicators that reforms are undertaken

Require new vendors to comply with requirements before doing business

Verify:

Conduct systematic independent fiber testing Verify that reforms are achieved or business is

withdrawn using mutually agreed independent verifier.