1. Lafcadio Cortesi Forest Campaign Director, RAN October 21, 2010 Achieving Reforms in Indonesia’s Pulp and Paper Sector; Information and Ideas for Publishers and Printers

2. 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

3. 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

4. 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

5. Police Fire Bomb and Evict Community in Arara Abadi Concession

6. Continuing natural forest conversion on peat unsustainable and highly emissive

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

9. 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

10. Supply Chain Links and Opportunities for Publishers & Printers to Secure Reforms Controversial fiber/pulp (Acacia & MTH) and suppliers (April & APP) from Indonesia Indonesia or China Paper Mills Asian printers specify and use paper in children’s and other books and applications Books sold in U.S., Europe and other markets

11. 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

12. 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

13. 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

14. 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.