CANADA’S BOREAL FORESTStatus Report For Customers and Investors

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INTRODUCTION

May 18 marks the second anniversary of the Canadian Boreal Forest Agreement (CBFA). This unprecedented collaboration between Canadian forest companies and nine leading environmental organizations outlines a bold plan for increasing conservation and protection of the Boreal Forest1 and supporting a more prosperous forest industry and the communities that depend on it.

Unfortunately, after two years of intense work to implement the Agreement, there has been no significant change on the ground in the Boreal.

For ForestEthics, Canopy and Greenpeace, there is also no change in our commitment to the clear vision laid out by the CBFA.

As signatories to the Agreement, we remain determined to achieve the goals of protecting large tracts of Canada’s Boreal, implementing world leading forest practices that use FSC as a baseline and positioning companies producing forest products from Canada’s Boreal to capitalize on opportunities in the growing green marketplace.

The lack of results to date is not the result of any one party, but is shared by all. It is time to take stock and confirm the best way forward to creating lasting solutions in Canada’s Boreal.

1 The Signatories: The Forest Products Association of Canada (FPAC) represents the largest Canadian producers of boreal forest products, and its members today include Resolute Forest Products (formerly AbitibiBowater), Alberta-Pacific, AV Group, Canfor, Cariboo Pulp and Paper, Conifex, DMI, Fortress, Howe Sound, Kruger Inc., Louisiana Pacific, Mercer, Mill and Timber, Millar Western, Tembec, Tolko, West Fraser and Weyerhaeuser. Environmental organizations signed onto this agreement include: ForestEthics, Canopy, Greenpeace, Canadian Parks & Wilderness Society/Wildlands League, David Suzuki Foundation, The Nature Conservancy, Canadian Boreal Initiative, Ivey Foundation and Pew Environment Group International Boreal Campaign.

THE CANADIAN BOREAL FOREST AGREEMENT: BY THE NUMBERS

730: Number of days since the signing of the CBFA.

28.5 million: Number of hectares of FPAC tenures deferred on signing of the Boreal Agreement in 2010.

0: Number of hectares of legislated protected areas as a result of CBFA protected areas planning to date.

58/75: The number of CBFA milestones that have not been completed.

Stretching across Canada from Alaska to the Atlantic

Ocean, the Boreal provides habitat to hundreds of wildlife

species and holds more freshwater than anywhere else on

the planet.

Jiri Rezac/Greenpeace

DEFINING PROGRESS

The Signatories to the CBFA often speak of the twin pillars; these are conservation outcomes and socio-economic outcomes, and the Agreement is founded on the understanding that both must be strengthened in order for it to succeed.

The Agreement establishes six strategic goals to deliver these outcomes:

1. New Forest Practices: World-leading “on-the-ground” forest management practices based on the principles of ecosystem-based management and using FSC as a baseline.

2. Increasing Protected Areas: The completion of a network of protected areas that, taken as a whole, represents the diversity of ecosystems within the Boreal region and serves to provide ecological benchmarks.

3. Safeguarding Species at Risk: The recovery of species at risk within the Boreal forest including the Woodland Caribou.

4. Reduced Climate Impact: Reducing greenhouse gas emissions along the full life cycle from forest to end of product life.

5. Prosperous Communities and Viable Forest Sector: Improved prosperity for local communities and a viable forest sector.

6. Marketplace Recognition: The CBFA’s implementation will be recognized by the marketplace (e.g., customers, investors, consumers) in ways that demonstrably benefit FPAC Members and their products from the Boreal.

At the time of signing the CBFA these six goals were broken down into 75 milestones, each with a specific timeline attached. A number of Boreal Forest Hotspots were also identified in order to prioritize negotiations on milestones within these specific areas of the Agreement. These included:

Caribou Forest, Ontario

Agreed to Deliverables:

• Joint recommendations on Protected Areas Proposal

• Joint recommendations on Caribou Action Plan

Valley of the White Mountains, Quebec

Agreed to Deliverables:

• Joint recommendations on Protected Areas Proposal

• Joint recommendations on Caribou Action Plan

Abitibi River Forest, Ontario

Agreed to Deliverables:

• Phase 1 area agreement on candidate areas of conservation interest

• Government supported Caribou Action Plan, based on joint recommendations on Caribou Action Plan

These three areas were a focus of agreement implementation from the onset, deadlines for caribou action plans were set for the November 2010, then November 2011. Again in February 2012, all CBFA signatories agreed that the outcomes listed above would be delivered by the second anniversary of the CBFA. As of the print deadline of this report, only one of the plans listed above has been completed.

Jiri Rezac/Greenpeace

RESPECTING AND FORWARDING RIGHTS AND TITLE

Greenpeace, ForestEthics and Canopy support the United Nations Declaration on the Rights of Indigenous People and believe it is essential to build a culture of conservation around the world that respects Aboriginal rights and title.

The Boreal forest overlaps pre-existing Treaties and traditional territories of First Nations. We have ensured that our work in the Boreal Forest recognizes that Aboriginal peoples have constitutionally protected Aboriginal and treaty rights and title as well as legitimate interests and aspirations and the decision-making authority of First Nations over traditional territories.

While the CBFA lays out a roadmap to achieve shared goals between the signatories as stakeholders, it’s understood that final decisions rest with governments, including federal, provincial, territorial, and Aboriginal decision-makers. The Agreement is not intended in any way to usurp Aboriginal peoples’ efforts to resolve outstanding Rights and Title issues and does not resolve, or attempt to resolve, any outstanding issues that First Nations may have with forestry companies. Instead, the main focus of the CBFA is to try and resolve longstanding conflicts between the environmental organizations and forestry companies through the introduction of a conservation planning process that will ultimately recommend an increase in protected areas and more sustainable forest practices to Provincial and Aboriginal governments.

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hectares under the agreement

hectares in 2010 deferral package

hectares proposed for protection by CBFA

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hectares legally protected as an

outcome of the CBFA

hectares proposed for indefinite deferral by

CBFA signatories

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STATUS UPDATE The following snapshots provide updates and on-the-ground status for the three critical Boreal Forest Hotspots identified at the time of signing of the CBFA and two additional Hotspots.

Caribou Forest

SIGNIFICANCE: This Canadian Boreal Forest Agreement first tier planning area in Ontario is located within the largest tract of intact forest left in the world and some of the highest value caribou habitat in Ontario.

TIMELINE: This was originally set for delivery in November 2010. After not meeting the agreed upon deadline of November 30th, 2011, the Steering Committee committed to finalizing joint protected area and caribou action plan recommendations prior to the Boreal Agreement’s 2nd Anniversary (May 18th, 2012).

LEAD FOREST COMPANIES: Resolute Forest Products as part of the Ontario Regional Working Group, which also includes Weyerhaeuser and Tembec.

STATUS: At risk. Forest industry and environmentalists have yet to agree on # hectares to be protected, # hectares to be deferred from logging and areas of harvest.

Valley of the White Mountains

SIGNIFICANCE: Prioritized for high ecological values, this Agreement first tier planning area in Québec is also one of the areas of most active logging in Canada’s Boreal Forest.

TIMELINE: This was originally set for delivery in November 2010. After not meeting the agreed upon deadline of November 30th, 2011, the Steering Committee committed to finalizing joint protected area and caribou action plan recommendations prior to the Boreal Agreement’s 2nd Anniversary (May 18th, 2012).

LEAD FOREST COMPANIES: Resolute Forest Products as part of the Québec Regional Working Group, which includes Tembec and Louisiana-Pacific.

STATUS: At risk. Forest industry and environmentalists have yet to agree on # hectares to be protected, # hectares to be deferred from logging and areas of harvest.

Markus Mauthe/Greenpeace

Abitibi River Forest

SIGNIFICANCE: The Abitibi Forest is a large intact area of Boreal Forest in the North East of Ontario known for large herds of threatened woodland caribou.

TIMELINE: Joint work between environmentalists and industry on caribou conservation has been ongoing since before the signing of the CBFA. CBFA signatories are hopeful that a government announcement will be coming soon.

LEAD FOREST COMPANIES: Tembec Forest Products, with Resolute as an active forest company in the region and Weyerhaeuser as a member of the Regional Working Group.

STATUS: A joint recommendations on a caribou action plan has been complete for some time and includes 835,000 hectares of caribou habitat in deferral. Local communities and First Nations have provided input into the caribou action plan. The next step of government approval is outstanding.

Broadback Valley

SIGNIFICANCE: The Broadback Valley covers 6 million acres of particularly rich Boreal forest. The region lies entirely within the ancestral lands of the Cree, about 600 km north of Montréal. First Nations have proposed large protected areas with support from environmentalists. Forest companies have agreed to suspend logging operations.

TIMELINE: We are hopeful that a government announcement is coming soon.

LEAD FOREST COMPANIES: Resolute Forest Products (formerly Abitibi), Eacom Timber Corporation

STATUS: 1 million hectare candidate area for protection.

Manitoba’s Boreal Gem

SIGNIFICANCE: This Tolko tenure is over 9 million hectares in size and is a significant source of freshwater, contains many high value ecosystems and critical habitat for caribou.

TIMELINE: Caribou action planning and protected areas planning has not yet commenced as it was not a priority by May 18th.

LEAD FOREST COMPANIES: Tolko and Louisiana Pacific

STATUS: Regional working group members are continuing to reach out to Aboriginal groups seeking their engagement on caribou action planning and participation on the regional working group. Some preliminary mapping has occurred identifying conservation values.

ASSESSMENT: WHERE ARE WE TODAY?

Canopy, Greenpeace and ForestEthics remain committed to improving the long-term health of the Boreal Forest. We will continue working to deliver real change on the ground in the Boreal.

What we are committed to achieving:

• Approximately 50-70% of the Boreal forest under management will be conserved through legislation and regulation, based on today’s leading conservation science;2

• Populations of threatened species such as woodland caribou and other key species including grizzly bear, wolverine, wood bison and whooping crane will be recovered and viable;

• A terrestrial carbon storehouse will be secured for years to come;

• On Boreal forestland not dedicated for conservation, forestry practices will be based on ecosystem based management principles, building from the FSC Boreal Standard.

• Boreal Forest communities will prosper and aboriginal treaty rights and traditional territories will be respected.

MOVING FORWARD: COLLABORATION IS THE KEY

Greenpeace, ForestEthics and Canopy all have long histories of collaborating to secure meaningful conservation outcomes and lasting certainty in Canada’s forests. We are keenly aware of issues of efficiency and the importance of measuring results as they relate to these processes.

We look forward to our success being informed by jointly commissioned science to answer the tough questions like “How much is enough?” and what are the drivers and factors defining forest company success.

The Boreal Forest urgently needs increased permanent protection and more sustainable management. In the coming months, it is critical that a more efficient pathway is created for the realization of the win-win opportunities the Agreement describes.

2 Final conservation outcomes should be grounded in jointly undertaken conservation and socio-economic science.

Jiri Rezac / Greenpeace

LOOK WEST FOR A MODEL OF SUCCESS

The Great Bear Rainforest Agreements span the coast of British Columbia covering one of the last large intact tract of coastal temperate rainforests left in the world. Today 33 per cent of the Great Bear Rainforest (2.1 million hectares) is protected through historic agreements endorsed by the B.C. government, First Nations, forest companies and environmental organizations.

In 2009, the forest companies achieved Forest Stewardship Council certification of approximately 850,000 hectares of their forest tenures in the Great Bear Rainforest. This was a signal that the forest industry was responding to the growing market demand for environmentally responsible forest products.

The jointly commissioned independent science that was carried out for the Great Bear Rainforest Agreements concluded that 70% of the forest must be maintained in old growth to secure low risk to the ecology of the region. Our organizations continue to actively engage to see these Agreements finalized by the Spring 2013. We are applying our experience with forging the Great Bear Rainforest Agreement to our collaborative efforts in the Boreal Forest.

Andrew Wright