1. Tackling the Haze: What is the Role of Business? Brad Sanders Fire, Safety & Aviation Department A Presentation to CSR Asia 25 July 2007

2. Contributing Causes of Haze –Weather –Reason for people to ignite fires –Examples Business’ Responsibility –International standard –Fire protection –“No Burn” implementation –Fire prevention & livelihood options –Fire response system –2006 results –Long-term solution Overview

3. Land-clearing with fire in Indonesia is an age-old practice that has now become a major trans-national problem The Haze

4. Source: APRIL Riaufiber Estates 2002 – 2007 In Riau, there are two dry seasons per year when land-clearing with fire occurs Average Fires/Month 2 nd Dry Period 1 st Dry Period

5. HAZE Health Hazards, Economic Losses, Political Tension Poverty, unclear land tenure, agrarian society, fire is traditional tool, no fear of prosecution Ineffective Fire Detection and Response Systems Increased Incidence of Forest and Land Fires Normal Dry Season (1 – 2 times a year) and/or Severe Extended Dry Season (El Nino) Illegal Land Use Speculators / grabbers Illegal plantation developers Illegal settlers Illegal logging Small Farmers Shifting cultivation Oil Palm SME Plantation Companies Cannot afford mechanical land-clearing; No other means to dispose of wood Why Does Haze Happen in Indonesia?

6. Small farmers using land-clearing fires adjacent to remote perimeter boundaries remain the greatest fire threat to Riaufiber plantations.

7. Palm oil company builds windrows but continues to use or allow fire to burn slash before planting palm oil. Small – Medium palm oil enterprise builds “windrows” but unable to dispose of wood waste.

8. Fire is used or allowed to burn the slash before planting palm oil.

9. Temporary laborers working for local elite use fire to claim land for palm oil development.

10. The illegal sale & claiming of land leads to slash & burn land-clearing fires to illegally establish palm oil plantations.

11. Fire & Haze: APRIL’s Position No-burn policy since 1994 - Only use mechanical methods to clear & prepare land Invests in programs, systems, equipment, people: - Provision of livelihood options - Fire prevention education & awareness - Active monitoring & early detection within our plantations - Rapid response to fire incidents within our plantations

12. UN-FAO Fire Management Actions Alliance 16 May 2007 - 4th International Wildland Fire Management Conference, Seville, Spain Thirty world-wide Institutions voluntarily joined the Alliance Improve fire management and reduce fire damage through implementation and promotion of Voluntary Guidelines – Principles & Strategic Actions (www.fao.org/forestry/site/35853/en).www.fao.org/forestry/site/35853/en Defines needed actions to improve fire management by strengthening policies, regulations, plans, procedures & implementation APRIL is the first & only fiber plantation company in Indonesia to commit & implement the Fire Management Guidelines

13. Fire Protection Responsibilities 1.Fiber Plantations (335,000 ha) 2.In-field Wood Supply 3.Conservation Areas 4.Air Quality

14. Organic matter is source of soil nutrients, minimizes soil erosion; protects water quality Wood is our raw material Carbon in fiber reduces pulp quality Fire is a threat to assets and operations Eliminate smoke/haze to protect air quality Why we don’t burn? 4.12 Fuel Management

15. No Burn Policy Implementation 4.12 Fuel Management Mechanical Land Clearing Cost:US$ 150 – 300 / ha Duration: 1-3 days / ha

16. “Mosaic” concept provides biodiversity Wildlife travel corridors Effective to control spread of large fires Natural Forest Greenbelts Serve as Fuel Breaks 4.12 Fuel Management

17. Integrated Farming System  Benefits 3,655 trainees in 96 villages; helps villagers move from shifting cultivation to sustainable agriculture Community Fiber Farms  27,000 ha planted using “No Burn” technique Small & Medium Enterprise Program Vocational training, scholarships, social infrastructure support Providing Livelihood Options 4.3 Fire Awareness & Education

18. Public signboards Contract Requirements Awareness briefings with workers Educational materials Fire Prevention & Awareness 4.3 Fire Awareness & Education

19. Rapid Response Capability 4.9 Initial Attack / Action

20. Pro-active Fiber Estate Management Support All Estate Management recognize the importance of Emergency Response A temporary re- prioritization of all operational work assignments to quickly and effectively resolve the incident. This includes the use of Estate Personnel, contractor equipment, & sustained logistic support… 4.9 Initial Attack / Action

21. 194 fires 541 ha burned Average size fire is 2.8 ha 90% of fires are fully extinguished within 3 days from initial attack 94% of fires extinguished at less than 10 ha 66% of fires extinguished at less than 1 ha 2006 Results 4.15 Monitoring & Assessment

22. Multi-stakeholder involvement - concerted, committed action  Government – Consistent enforcement of existing laws – Develop alternative land preparation methods (no fire) – Legislation & market opportunity to utilize waste wood – Investment in effective fire response systems  Businesses – Sustainable management of forest resources  NGOs, Media, Communities – Grassroots education & awareness Create economically viable options for the use of wood from legal land-clearing –Develop new market opportunities for use of wood that is otherwise burned Long-term Solution 4.4 Fire Prevention