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WWF Global Forest & Trade Network Newsletter July 2010

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July 2010

Contents

Cover Photo: Rio Negro Forest Reserve, Amazonas, Brazil © Michael Roggo / WWF-Canon

This publication is made possible by the generous support of the American people through the United States Agency for International Development (USAID), as well as with support from the European Commission. The contents are the responsibility of WWF and do not necessarily reflect the views of USAID, or the United States government or the European Commission.

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Global Forest & Trade Network News pg 1

GFTN on the Ground pg 2-3

New GFTN Participants pg 4

The Faces of GFTN pg 4

GFTN Market Links – Local Forests, Global Market pg 5

GFTN and Credible Certification pg 6

GFTN Notes from the Field pg 7

GFTN Cutting Edge Insights pg 7-8

GFTN Across the Globe pg 8

GFTN at a Glance pg 9

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GFTN’s New Interactive Guide to Legal and Responsible Sourcing

Only a click away, this new interactive guide combines the wisdom previously contained in GFTN’s resources on legality and responsible procurement into a single, more in-depth resource to help companies navigate the complex and fast-changing regulatory and legislative landscape governing trade in timber and timber products.

Features of this vital and indispensable tool for forest products

purchasers include:

• Comprehensive and integrated advice from GFTN’s Guide to Responsible Purchasing of Forest Products and Keep It Legal manual

• Never before published set of national indicators and verifiers for legality—GFTN’s Common Legality Framework

• New guidance on addressing legality in major timber producing and exporting countries and much more

Bookmark this indispensable resource: gftn.panda.org/sourcing

Legality Training in Southeast Asia

Undertaken by WWF’s Global Forest & Trade Network (GFTN) and TRAFFIC, with support from USAID’s Responsible Asia Forestry and Trade (RAFT) programme, these training workshops aim to ensure that the details of the Lacey Act amendment are broadly understood within the target audience in the selected RAFT project countries, including China, Indonesia, Malaysia and Vietnam.

For more information, visit gftn.panda.org/training

1Laying a Foundation for Responsible Forestry

This June, I had the pleasure of gathering with a diverse group of experts from industry, government and the environmental community to commemorate the second anniversary of the US Lacey Act—the first law of its kind to prohibit the import, sale or trade of illegally-harvested wood and wood products.

As I sat listening to their remarks, I was reminded of the urgency that drives much of work around the globe. Causing devastating impacts on the world’s climate, illegal logging also jeopardizes the raw material that the forest products sector depends on and threatens the economic viability of responsible producers.

In many places, we are racing against the clock in our efforts to engage industry as an influential lever in driving improvements in the management of the world’s richest and most vulnerable forests. Increased international legislation, like the US Lacey Act and the Due Diligence Regulation in the EU, is a key tool in helping to drive this change.

However, for these initiatives to truly have teeth, there needs to be proper capacity and resources to enforce them; companies who understand what it takes to demonstrate compliance; and lastly, producing countries that have the assistance needed to enforce their own laws.

To that end, the GFTN is pleased to announce the interactive Guide to Legal and Responsible Sourcing and a suite of training seminars in Southeast Asia throughout July, August and September, helping suppliers navigate the shifting legal landscape and provide legal exports to influential markets like the US and Europe.

Legality is but a first step. Most laws don’t address real sustainability in forestry, but without legality as a baseline, there can be no sustainability to work towards. To really create sustainable forests, the forest products industry needs to send clear and consistent market signals for legal and credibly certified timber.

We hope that these resources will be indispensable in helping companies legally and responsibly source their timber and fiber, helping to transform the global forest products supply chain, and consequently, its impact on forest resources around the world.

George White Head, Global Forest & Trade Network [email protected]

Global Forest & Trade Network News

Malaysia

Kuala Lumpur JUL 27 Sibu, Sarawak JUL 28 Kota Kinabalu JUL 29

Indonesia

Jakarta AUG 2Surabaya AUG 3 Samarinda AUG 5

Vietnam

Hanoi AUG 23 Quy Nhon AUG 25 Ho Chi Minh AUG 27

China

Beijing SEP 8 Shanghai SEP 9 Guangdong SEP 10

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2A Shift Towards Sustainability

David Cheng, Walmart’s Global Sourcing Director, explains the company’s timber sourcing policy and requirements to suppliers.

With the acceleration of globalization, industrialization and urbanization, China’s production and consumption patterns are putting the country’s as well as the world’s ecosystems at risk. As China’s economy continues to grow, more pressure is placed on the planet’s resources. Through initiatives like the GFTN, WWF is working in China to ensure that the country’s development goes hand-in-hand with long-term sustainability and environmental protection. By engaging Chinese companies to implement environmentally and socially responsible practices in their operations, the GFTN is working with committed companies like Walmart to harness the power of China’s international trade flows in reducing the ecological footprint on the world’s valuable and threatened forests.

As the world’s largest retailer, Walmart’s commitment to legal and responsible sourcing is having a profound impact on the global supply chains. Walmart and the GFTN recently co-hosted a training workshop on responsible timber sourcing for the company’s wood suppliers in Shenzhen, China. More than 55 representatives from 42 enterprises attended the training, including Walmart’s top suppliers of wood products to the US market.

“Walmart’s vision is to secure a continuous supply of sustainable wood for the wood and paper products sold in our stores, thereby conserving the forest resource base and mitigating climate change over the long term,” said David Cheng, Walmart’s Global Sourcing Director. “We will continuously improve Walmart’s supply chain management and cooperate with our suppliers to deliver on our commitment to sell products that sustain people and the environment.”

During the training workshop, Cheng explained the company’s timber sourcing policy and the requirements to its suppliers. Jin Zhonghao, GFTN-China Manager, then trained suppliers on how to mitigate the risk of sourcing and trading illegally harvest wood by establishing a responsible purchasing programme and committing to sourcing credibly certified wood.

“Engaging suppliers in responsible sourcing throughout our global supply chain is an essential component in improving the traceability and transparency of our wood and paper supply chain and moving towards even more sustainable

sourcing,” said Taylor Holley, Walmart’s Sustainable Sourcing Manager. “Similarly, as China is the world’s leading exporter of wood products, we see the importance of influencing the sustainability of this crucial link in the global timber supply chain by building capacity among Chinese manufacturers.”

Through Walmart’s participation in the GFTN, the company is working to gradually increase the percentage of certified products and eliminate unwanted sources from its supply chain. Through training seminars like these, Walmart is not only building capacity among its suppliers but also helping them overcome challenges by learning from GFTN-China’s experience of advancing responsible forestry over the past five years.

“This is one of GFTN’s most successful training workshops to date,” said Jin Zhonghao. “As part of a series of training workshops with the China Green Wood Initiative, this seminar, co-hosted with Walmart, was instrumental in helping solve practical problems of these enterprises.”

“We believe that through training opportunities and further cooperation in the future, that these companies will display stronger competitiveness and become valuable partners for leading global retailers, like Walmart,” he added.

Jin Zhonghao, GFTN-China Manager, sharing insights on how to overcome responsible sourcing challenges.

As a result of this training, several enterprises have expressed interest in joining GFTN-China and committing to responsible sourcing. Through its continued commitment to advancing responsible forestry and trade, Walmart is helping the forest products industry shift towards sustainability, enabling this crucial link in the global supply chain to reduce its environmental impact and protect important ecosystems worldwide.

For more information, contact: Jin Zhonghao ([email protected]) Linda Kramme ([email protected])

GFTN on the Ground

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Transforming Spain’s Cities into Champions for the World’s ForestsDespite conservation efforts, the world’s forests continue to be lost at an alarming rate of 13 million hectares per year or 36 football fields a minute. Driven by the world’s demand for cheap timber and paper products, unsustainable and often illegal logging occurs in vast areas of forest worldwide. These unsustainable practices are putting the future of our planet in jeopardy, with deforestation and degradation collectively contributing to 15 per cent of global greenhouse gas emissions. WWF’s GFTN is working to curb illegal logging and its devastating effects on the world’s biodiversity, people, economy and climate by advancing responsible forestry and trade—with a new focus on promoting responsible public procurement.

Recognizing that government has a key role to play in promoting sustainable consumption and production, the GFTN has been working with local governments in Spain to develop and implement responsible public procurement policies. The campaign, Ciudades por los Bosques or Cities for the Forest, is evaluating the measures that local municipalities and other institutions are taking to avoid buying products coming from illegal timber and promote responsible forest management by indicating a preference for FSC-certified products in their purchasing policies. All cities in Spain with a population greater than 20,000 have been evaluated and their performance ranked on Cities for the Forest’s Green, Yellow or Red lists.

This month, GFTN-Iberia welcomed the City Councils of Madrid and Murcia and the Provincial Council of Toledo as Cities for the Forest, recognizing their performance in implementing responsible procurement policies that give preference for wood from well-managed forests. The Council of Toledo was given special distinction as the first Spanish public administration to indicate a preference for FSC-certified cork above other artificial materials.

Alberto Ruiz Gallardón, Mayor of Madrid and WWF-Spain CEO Juan Carlos del Olmo commemorate Madrid’s commitment to responsible public procurement.

“We have decided to join Cities for the Forests because it is a very important tool in supporting sustainable forest management and recognition of our efforts to implement a responsible public procurement policy,” said Elisa Barahona, Sustainability Deputy Director, City Council of Madrid. “FSC is

the best guarantee for the sustainable origin, considering both social and environmental aspects of the forest products we purchase in the City Council of Madrid.”

Implementing a responsible public procurement policy, the City Council of Madrid unveils FSC-certified benches throughout downtown Madrid.

This initiative to promote responsible public procurement will be instrumental in influencing responsible consumption in Spain as local governments represent 18 per cent of Spanish consumption of forest products, spending more than 2 million Euros (US$ 2.45 million) annually. In 2006, Spanish forest law recognized the importance of public procurement of forest products and asked governments to establish policies giving priority to certified products. However, only 3 per cent of Spanish municipalities have developed and implemented such a policy so far.

There is much work still to be done, which is why GFTN-Iberia is engaging with the remaining 97 per cent of cities that have not yet developed and implemented responsible public procurement policies. This is increasingly important as it is believed that at least 10 per cent of timber and paper consumed by the Iberian market comes from regions where the risk of illegal logging is high. With the European Parliament recently passing a law to ban trade in illegal timber, there is a growing urgency for European governments and businesses alike to ensure that they have the proper systems in place to prevent illegal timber from entering their supply chains.

“Our goal is to achieve the greatest number of cities joining so that Spain will be a leader in responsible consumption of forest products, contributing to the implementation of European legislation on this issue. Public procurement is key to influencing the forest products market, and furthermore, governments cannot afford to be involved in forest destruction through their purchases,” said Juan Carlos del Olmo, WWF-Spain CEO.

To learn more about Cities for the Forest, please watch the campaign video at www.youtube.com/user/wwftv.

For more information, contact: Elena Domínguez ([email protected])

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German Paper Industry Giant Joins GFTN in Safeguarding Forests

Papyrus Deutschland GmbH & Co. KG formalized their commitment to responsible forestry and trade, joining WWF’s Global Forest & Trade Network in Germany. Within the next three years, the company has set a target to increase the proportion of Forest Stewardship Council (FSC)-certified papers in its overall volume significantly. Papyrus, formerly Schneidersöhne, is the second largest German paper wholesaler and a leader in the German paper industry, supplying many of the countries large banks and insurance companies.

“By taking this step, a true industry giant acknowledges its responsibility for the worldwide protection of the Earth‘s forests, sending a strong signal to the entire paper industry,” said Johannes Zahnen, GFTN-Germany Manager. “As a result, this will improve the offer of environmentally friendly papers in the German marketplace.”

“For us, participation in the GFTN is a major step towards a comprehensive environmental management system,” comments Boris Borensztein, General Manager of Papyrus Germany. “As a leading paper wholesaler we want to contribute to sustainable forest management and rule out procurement sources that we consider risky or about which we do not have sufficient or reliable information.”

Through their participation in the GFTN, Papyrus has agreed to strengthen its responsible procurement guidelines, eliminating unwanted timber from their supply chains, such as products purchased from companies involved in the depletion of forests. This step sends a clear message to the industry to eliminate illegal and unsustainable wood and fibre from their supply chains and send clear market signals for legal and credibly certified timber and fibre. By implementing commitments like these, the nature of the global forest products supply-chain and consequently, its impact on forest resources around the world, can be positively transformed.

For more information contact Johannes Zahnen ([email protected])

Raúl DancéRaúl Dancé serves as the Trade Marketing Specialist for GFTN’s Latin America and Caribbean programme. Joining WWF in 2003, he has spent the last seven years career in WWF implementing forests management projects, forest certification and fair trade with indigenous communities and forest

concessionaires in Peru, Bolivia and Panama.

Raúl’s ten years of professional experience has been devoted to forestry sector. He started his career as the Timber Manager in Promperú, a Peruvian government agency dedicated to the promotion of exports. In this role, he explored the development and investigation of new markets, commercial channels and positioning of products. Later, he joined the private sector as an Export Manager of an important Chinese group. Raúl holds a degree in Economic Science from Ricardo Palma University in Lima, with graduate studies in International Business and Marketing and additional expertise in management, trade and forest certification.

Joko SarjitoJoko Sarjito joined GFTN-Indonesia in late 2009 as the Responsible Forest Coordinator. In this role, he supports GFTN Participants in implementing responsible forest management practices through a stepwise approach to achieve FSC certification. Joko is currently focusing his efforts on helping

participants effectively manage high conservation values in their concessions. He brings with him a wealth of experience in implementing responsible forestry in the private sector.

Prior to joining WWF, Joko served as the Certification Manager for PT. Narkata Rimba and PT Belayan River Timber (Integra Group) in 2009 where he was responsible for helping the company implement forest management practices to the standard of FSC. Before this role, he served as the Certification Manager and Environmental, Safety, Health and Community Development departments of PT. Sumalindo Lestari Jaya Group for ten years. He holds a Bachelors degree in Forest Management from Mulawarman University.

3 New GFTN Participants

4 The Faces of GFTN

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Driving Responsible Trade Across Borders

The integrity of the global environment depends on the health of the Amazon, the largest tropical rainforest and river basin in the world. Today, rapid deforestation threatens these biologically rich forests. At current rates, 25 per cent of the Amazon’s original forests are projected to be destroyed by 2020—a looming disaster not only for the region’s plants and animals, but for the world. If this global crisis is to be averted, then the root of the problem must be addressed—unsustainable demand. Through the strength of its global network, the GFTN is reaching across borders to facilitate links between committed companies to drive responsible trade and combat irresponsible and illegal logging.

Partnering together to tackle this challenge of increasing global demand on the Amazon’s natural resources, GFTN’s programmes in North America and Latin America organized a trade mission to Peru and Bolivia in June to link responsible demand to responsible producers. Two US distributors of tropical hardwood joined GFTN staff on a ten day journey, touring certified forest operations and processing plants in Peru and Bolivia. And these efforts are already beginning to pay off with Aserradero Espinoza, a GFTN-Peru Participant, negotiating an agreement for approximately US$200,000 to supply 158 cubic metres of sawn wood to one of the visiting US buyers.

The GFTN is helping to drive improvements in the management of the Amazon’s valuable and threatened forests by working with companies, such as this FSC-certified forest concession in Peru.

“For companies to really understand what it takes to source responsibly, these types of trips are an invaluable way to gain firsthand knowledge, make contacts and illustrate the benefits that GFTN provides to participating companies,” said Amy Smith, Senior Programme Officer for GFTN-North America. “A trip like this goes beyond conversations or discussions on how to implement responsible procurement. It helps buyers put theory into practice, enabling them to see what is happening on the ground and hear directly from responsible forest operators the ways that GFTN is assisting them in reaching their certification goals and responsibly managing their forests.”

Raúl Dancé, pictured on right, tours facilities of a GFTN Participant in Peru with visiting

US buyer.

A key challenge facing the GFTN in Latin America is working with responsible producers to increase their capacity to supply consistent levels of certified and finished products to the US and European markets. Smith shared that many US buyers come to the region with a specific product in mind, and while a semi-finished product may be a short term solution, they are ultimately looking to source products that can quickly be put on the market.

“In order to increase their production levels, many GFTN Participants in Peru and Bolivia require additional investments, especially for machinery, equipment and working capital,” said Raúl Dancé, Trade Marketing Specialist for GFTN-Latin America and Caribbean (LAC). “We are working through opportunities like this to create strategic partnerships between responsible demand and supply. And the relationship that has emerged from this trade mission is a great step in this direction.”

Through strategic efforts over the past nine months to increase trade of timber products from responsible sources in Latin America, the GFTN is driving lasting and positive change for the Amazon’s valuable and threatened forests. Building off the momentum from these efforts, the team is already planning another trip for buyers to Colombia in October—continuing to link together companies committed to achieving and supporting responsible forestry.

For more information contact Amy Smith ([email protected]) Raúl Dancé ([email protected])

5 GFTN Market Links – Local Forests, Global Market

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6 GFTN and Credible Certification

FSC Takes Root in Russia

A key to fighting irresponsible and illegal logging practices throughout the world is making responsible forestry pay, by creating demand for FSC-certified products. Considerable efforts have been taken in Europe over the past decade to increase consumer preference for products from well-managed forests.

But often little has been done within domestic markets to create demand there. For the past year, the GFTN has been working to do just that in Russia, promoting FSC to the government, industry and consumers. And the campaign is starting to see positive results.

Seizing an OpportunityHistorically, the driving force of FSC certification in Russia was lead by the international market, mainly the European Union, and to a lesser extent, the US, Japan and China. However, WWF recognized that with 40 per cent of Russia’s wood and paper products distributed to the domestic market, a great opportunity for further increasing the development of certification and responsible forest management existed in the domestic market.

“Recognizing the potential in the domestic market, we began to reach out to large pulp and paper consumers, such as big corporations and state governments, to develop and implement purchasing policies that indicate a preference for FSC-certified wood and paper products,” said Alexander Voropaev, GFTN-Russia Manager. “And our efforts are beginning to pay off, with several large banks and hotels in Moscow agreeing to source only FSC-certified paper.”

He shared that similar advances are being seen in the public sector. Engaging with different levels of government, the GFTN has been working to advance responsible public procurement. These efforts have been successful in influencing the adoption of responsible public procurement policies in both the Northern Administrative region of Moscow and now the government of Moscow.

With progress seen at these levels, the GFTN is now setting its sights on the federal government and indicators look promising. At the last State Council, the President made a commitment to the government to develop a federal procurement policy, which will be discussed in the government as early as October.

Receptivity has also been seen in other areas of the domestic market with the Organizing Committee of the 2014 Winter Olympic Games in Sochi agreeing to use only FSC-certified paper and forest products in printed materials and construction for the Winter Olympics.

Reaping Rewards“Through the combined efforts of WWF’s GFTN and these influential stakeholders in industry and government, 50 per cent of all office paper sold in Russia is now FSC-certified,” he added. “But to influence the entire pulp and paper sector, it is essential that we also engage with pulp and paper mills, printing houses and tissue and packaging manufacturers.”

Building off the successes already realized through GFTN Participant Solikamskbumprom—responsible for certifying roughly 25 per cent of the newsprint produced in Russia—WWF is working to promote certification to pulp and paper mills and is seeing significant results. Recently, the biggest Russian newsprint producer, Kondopoga certified its production. Mondi-Syktyvkar, a GFTN Participant, will soon extend its FSC certificate to newsprint production.

“Now about 60 per cent of Russia’s newsprint is FSC-certified and we anticipate that this percentage will increase as other pulp and paper mills is pursuing FSC certification,” shared Voropaev.

However, a key obstacle facing the increase of FSC-certified materials in the Russian marketplace is the availability of certified printing houses and traders of printing paper. To overcome this obstacle, WWF began working with printers in Moscow, helping one company achieve CoC certification.

Later this year, Voropaev expects that fellow citizens will start seeing FSC-certified newspapers on newsstands throughout Russia, as a large printing house is currently progressing towards certification. He added that it is just a matter of time until they start seeing bags with the FSC logo appear in Russian shops as GFTN Participant Segezha Packaging, the largest Russian producer of industrial sacks, has certified the production of their entire paper line.

A Vision for the FutureWith momentum building in the paper sector, the GFTN will continue efforts in more challenging sectors: timber and tissue. In Russia, the majority of timber produced is oriented to the export market, resulting in much of the country’s certified furniture and flooring being imported from other European countries.

“We will be holding several roundtables in the coming months to engage with small to medium enterprises that are able to serve the domestic market on the benefits of FSC certification. But we are pleased with the momentum being built,” said Voropaev.

He also shared the need for continued efforts to promote FSC in Russia, building on the continued momentum of the successes achieved to date. “When the campaign started last June, only 69 chain of custody certificates were issued into the Russian supply chain. Now there are 126 companies that have achieved certification, and we hope to see this number continue to grow as we engage more sectors of the forest products supply chain,” he concluded.

For more information contact Alexander Voropaev ([email protected])

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7 GFTN Notes from the Field

8 Cutting Edge Insights

On the Front Lines of Combating Illegal Logging

Across the globe, irresponsible and illegal logging is jeopardizing the future of the world’s forests. These risks cannot be more clearly seen than in the valuable and threatened forests of the Brazilian Amazon. In 2008, WWF estimated that between 50 to 70 per cent of Brazil’s timber is illegal, amounting to 15 million cubic metres. Working to combat illegal logging, the GFTN is engaging the front lines of this fight, helping to increase capacity on measures to eliminate unwanted and unknown wood from key purchasing centres in Brazil.

Working in partnership with Fundação Getúlio Vargas (FGV) Friends of the Amazon Network, GFTN-Brazil is helping municipalities and states develop responsible public procurement policies for wood products. Through these collaborative efforts, GFTN-Brazil and the Friends of the Amazon Network are helping local governments and private businesses implement responsible purchasing policies and phase out unwanted and unknown wood.

Consuming between 15 to 20 per cent of Brazil’s domestic timber production, with a third being used directly by the government, the Brazilian state of São Paulo is a key driver in influencing change in the region.

Through a close partnership with the Friends of the Amazon Network, GFTN’s Keep It Legal guide in Portuguese (Seja Legal) is now being used by the São Paulo State Environmental Police in courses and training seminars given to the more than 2,500 policemen that guard the state frontiers and control the transport and trade of wood products in São Paulo.

“The GFTN has been instrumental in increasing the understanding of basic and advanced concepts building capacity among the São Paulo State Environmental Secretariat on the issues of illegal logging and responsible procurement,” said Carlos Eduardo Beduschi, Manager, São Paulo Friend of the Amazon Programme and Sustainable Development Department of the São Paulo State Environment Secretariat. “Keep It Legal is an

important tool in increasing the technical knowledge and capacity of those responsible for law enforcement in preventing illegal wood from entering the State of São Paulo and halting illegal logging within the state.”

GFTN’s Keep It Legal manual in Portuguese, Seja Legal, was used to help train São Paulo State’s Environmental Police to combat illegal logging.

Beduschi conveyed that decentralization, increased public awareness and effective participation of all sectors—from government and NGOs to retailers and consumers—are key to accomplishing a legal and responsible forest products industry in Brazil. And efforts in São Paulo State are starting to pay off, with over 7,800 tons of illegal timber confiscated since 2007.

“Working collaboratively with both government and industry ensures greater adoption of responsible procurement not only in São Paulo but throughout Brazil. It is only through collaboration like this that the Amazon’s valuable and threatened forests can truly be saved,” said Estevão do Prado Braga, GFTN-Brazil Manager.

For more information, contact Estevão do Prado Braga ([email protected])

Protecting Valuable and Threatened Forests

As a leading supplier of imaging and printing equipment, Hewlett-Packard, the world’s largest IT company and GFTN-North America Participant, recognizes the impact that it has on global paper use and consequently, the world’s valuable and threatened forests. Because of its strong commitment to global citizenship, HP was recently recognized by Corporate Responsibility Magazine as a leader in sustainability, ranking first on the magazine’s 11th annual 100 Best Corporate Citizens List.

With the aim of being the world’s most environmentally responsible IT company, HP is examining the sustainability of all aspects of its business and is currently in the midst of a three year plan to implement its Environmentally Preferable Paper Policy with the support of the GFTN. This policy aims

to increasingly source paper from suppliers that demonstrate responsible

forestry practices, recycle paper when possible and reduce the tonnage of

paper the company uses in its operations. HP has set a target that 40 per

cent or more of HP Branded paper sold will be FSC-certified or have more

than 30 per cent post-consumer waste content by the end of 2011.

Out of their commitment to advance legal and responsible forestry, HP

has made a generous contribution of US$75,000 to support WWF’s

work to conserve Indonesia’s rainforests and endangered species like

wild elephants and Sumatran tigers. HP will contribute directly to the

monitoring of High Conservation Value Forests (HCVFs) in the Riau

Province in Sumatra, Indonesia, and will fund efforts to help community

forests in Southern Java progress towards credible certification.

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9 GFTN Across the Globe

8“Environmental and social responsibility has long been a fundamental cornerstone of HP’s business model,” says Gail Fisher, Manager of HP’s Global Manufacturing Engineering, Technology and Environment. “Our partnership with WWF’s Global Forest & Trade Network provides us with many opportunities to continue to demonstrate our leadership and commitment to responsible forest management and trade. We are pleased to engage with WWF to support responsible forestry and trade in Indonesia, a region important for both conservation and wood and paper procurement.”

As a key forest products sourcing region for many companies around the world, responsible management of Indonesia’s forests is critical to the sustainability of the global forest products supply chain. However, Indonesia’s forests are increasingly under threat. A recent report by a coalition including the BlueGreen Alliance and Rainforest Action Network found that 40 to 50 per cent of Indonesia’s timber is illegally harvested and warned that 98 per cent of the archipelago’s lowland forests could be gone by 2022.

This unique partnership between industry and the environmental community will play an important role in protecting Indonesia’s HCVFs—forests of outstanding or critical importance due to their environmental, socioeconomic, biodiversity or landscape values. With these funds, WWF will work with local NGO partners to monitor eight blocks of remaining natural forest in Riau that serve as key habitats for wild elephants and tigers, in an effort to protect these forests from being converted to other uses.

“One of HP’s principles in its global paper purchasing policy includes sourcing our paper in such a way that maintains or enhances forests of High Conservation Value,” says Francisco Aragon, HP’s Sustainability Program Manager. “Forests that contain such values should be monitored and protected to ensure their viability over the long term, and HP is committed to supporting such efforts.”

In addition to protecting Indonesia’s valuable and threatened forests, this partnership will also support the efforts of GFTN-Indonesia and other local partners in engaging with community forest cooperatives in the Gunung Kidul district in Southern Java. The GFTN is working with these communities to help them pursue and achieve certification under both the Forest Stewardship Council (FSC) and Lembaga Ekolabel Indonesia (LEI), Indonesia’s national forest certification standard.

“Global companies are increasingly asking for assurance that the wood and paper products they are purchasing from Indonesia are legally and responsibly harvested,” says Aditya Bayunanda, GFTN-Indonesia Manager. “With support from environmental leaders like HP, Indonesia will help grow the supply to meet the increasing demand for responsibly sourced and traded forest products.”

For more information contact Linda Kramme ([email protected])

Cutting Edge Insights

An influential networkGFTN encompasses more than 288 participating forestry companies, manufacturers and retailers, which generate jobs for nearly 2.8 million people globally.

GFTN at a GlanceLocal Forests. Global Markets.

Supports local communitiesGFTN participants' enterprises support 42,749 local families through responsible forestry projects.

Facilitates credible certificationThrough GFTN's pioneering stepwise approach, participants have achieved credible certi�cation for 20.6 million hectares of forest, with 6.8 million more hectares in progress towards certi�cation.

Opens marketsTrading by GFTN participants represents 18 percent of every forest product bought or sold internationally every year, with combined annual sales of $68 billion.

Forges trade dealsGFTN has facilitated 205 trade links between its participants, creating new business opportunities for both buyers and suppliers of responsibly produced forest products.

Champions responsible forestry16 percent of the volume of internationally traded timber and �bre passes through GFTN participating companies.

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GFTN at a GlanceLocal forests, global markets

Guide to Legal and Responsible SourcingWWF, June 2010Combines the wisdom previously contained in GFTN’s resources on legality and responsible procurement into a single, more in-depth resource to help companies navigate the complex and fast-changing regulatory and legislative landscape governing trade in timber and timber products. Bookmark this indispensable resource: http://gftn.panda.org/sourcing

Exporting in a Shifting Legal LandscapeWWF, June 2010GFTN’s guide to legal exports, Exporting in a Shifting Legal Landscape, is aimed at companies that currently export, or intend to export, forest products to the US market. Download the PDF: http://gftn.panda.org/resources/tools/?193890

WWF Guide to Buying PaperWWF, November 2007 This guide makes it easy for an organization to understand the environmental impacts of paper-making and to source responsibly produced paper products. View this report at: http://assets.panda.org/downloads/wwf_paper_guide_1.pdf

External tools:

FSC Certificate Search Database:http://www.fsc.org/en/getting_involved/buy_sell

Forest Certification Resource Centre:http://www.certifiedwoodsearch.org/searchproducts.aspx

Transparency International:http://www.transparency.org/

Illegal Logging: http://www.illegal-logging.info

GFTN Toolbox

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GFTN Contacts

George WhiteHead [email protected] T: +44 1394 420 518

Hisayo FujikawaOperations Manager [email protected] T: +1 202 495 4340

Ian GrayResponsible Forestry Coordinator [email protected] T: +44 14 91 824 025

Deidre ZollProgramme Associate [email protected] T: +1 202 495 4589

Natalie GiustiWebsite/Database Coordinator [email protected] T: + 62 81 338 428 438

Betsy HickmanCommunications Manager [email protected] T: +1 202 495 4233

GFTN at a Glance

The GFTN is WWF’s initiative to eliminate illegal logging and transform the global marketplace into a force for saving the world’s valuable and threatened forests. By facilitating trade links between companies committed to achieving and supporting responsible forestry, the GFTN creates market conditions that help conserve forests while providing economic and social benefits for the businesses and people that depend on them. The GFTN considers independent, multi-stakeholder-based forest certification a vital tool in this progression and helps infuse the principles of responsible forest management and trade practices throughout the supply chain.

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