JAKARTA, Indonesia,
Jan. 18, 2011
(Press Release) -
On 17 January 2011 at the Development Building, PPM Management is organizing a multistakeholder dialogue to help find concrete solutions and cooperation for responsible forest management and sourcing in the Indonesian pulp and paper industry.
The two international industry leaders Carrefour and Kimberly Clark, sponsors of the event, demonstrate the role and responsibility of the private sector in raising awareness of responsible forest sourcing and in promoting responsible forest management through the implementation of sustainability practices across the supply chain.
The signs of climate change that we are experiencing are significant. More recently and as part of the international climate change dialogue taking place in Cancun in December 2010, forests were once again put at the centre stage and their value and services redendered to human kind reiterated, by not only estbalishing a Green Fund but also by committing to establish a program to curb carbon emission through reforestation and the prevention of deforestation.
The tropics are most likely to witness the many consequences for not mitigating or adptating to climate change with for example crop failure due to excessive rainfall, degradation of ecosystem services and so on.
The Economics of Climate report (Stern, 2006) highlight how preventing the destruction of vital ecosystem services and destruction of tropical rainforests can be one of the most cost effective ways to alleviate climate change.
The UN established the International Year of Forests 2011 with a resolution back on December 20, 2006 and invited world governments, non-governmental organizations, and the private sector to make a concerted effort to raise awareness to strengthen conservation and sustainable development of all forests. 2011 is the International Year of the Forests, it is hence an important year not only for the forests, but for all as we rely on them for our survival.
In this light, Indonesia through PPM is convening a multi stakeholder dialogue to look at local solutions and best practices to prevent irresponsible forest management. Governments should be encouraged to implement concrete policies that can contribute in guaranteeing capacity for responsible forest management. With the agreement made by governments in Cancun and assistance provided by companies such as Carrefour and Kimberly Clark to implement concrete solutions for responsible sourcing it should be possible to value the forests, whilst still benefiting from their resources in the long term. Through their actions and commitments these companies confirm the demand for more supply of certified raw material that accounts for the impacts on the environment and the communities.
It is well known that tropical forests in Indonesia have a significant role to play locally as well as globally. The international community considers that Indonesia's tropical forests are crucial to alleviate increasing carbon emissions coming from deforestation and concrete solutions securing economic development, environmental protection and social wlefare need to be found quickly.
Environmentalists and social institutions have to inspire change in the behaviour of all stakeholders in this industry, starting from ‘an open dialogue' to ‘call for boycott' to ensure perpetrators and those responsible for land degradation of natural resources in Indonesia get the message. Their partnerships with companies is vital in setting standards in forest conservation and in order to develop sustainable business models in the pulp and paper industry. It is the responsibility of citizens, governmental representatives and private sector actors to establish sustainable solutions to maintain economic development and benefits to the community for the next generations to come. Indonesia is gifted with natural resources and abundant biodiversity. It would be wonderfu if through valuing these gifts and wealth we can also constructively build the economy for the common progress of all stakeholders.
Commitment and Expectations of the Shareholders in Business Interests
Downstream industries, market participants and retailers in developed countries like the United States and the European Union are very sensitive about these issues. They have witnessed first the consequences of dilapidation of natural resources in their own countries through rapid industrialization. Most NGOs activities and efforts towards finding sustainable solutions in regards to forest management aim at raising awareness on the necessity to share and collaborate to implement better governance, prevent illegal logging, provide training and assistance to the communities who are the guardian of the forests, all fo those which will ultimately have a positive impact for our businesses. Greenpeace and WWF are for example quite aligned with local Indonesian NGOs to build processes and collaboration to secure legal and sustainable soucing of rainforests material which belong to Indonesians.
Consumer goods and retail companies can raise awareness with consumers and enable sustainable products to be placed onto the market. They can also work positively and constructively with their suppliers to promote more responsible and sustainable production practices.. President of the Federation of Trade Unions Indonesian Pulp and Paper - FSP2KI, Irzan Zulpakar, through open letter to President Yudhoyono in May 2010 brings his concern on a vigorous campaign by international NGOs. They worry that this could be bad even fatal to the pulp and paper industry of Indonesia. Their concern is reasonable because of various downstream industries and retailers from the EU and the United States began to take a stand to stop the supply of several national firms that blamed for forest destruction by international NGOs.
Kimberly Clark, is currently not sourcing from Indonesia. The fortune 500 with posted sales of $19.1 billion in 2009 and with global brands sold in more than 150 countries is also one of the largest pulp purchaser in the world and provides products and solutions to create essentials for a better life. Having said that and should the opportunity arise Kimberly Clark would welcome the opportunity to source raw material in the region provided sustainable practices and standards are adopted, says Janti Soeripto Kimberly Clark Indonesia Managing director.
The Indonesian government has so far been neutral on these issues while doing the review of existing regulations. It starts from the signing of a memorandum of understanding with the Norwegian government to do a moratorium on deforestation to the restructuring efforts of the industrial master plan. This is an initial step to a huge and time consuming work that needs to be done. The spatial planning does require a very intensive study, in-depth analysis and multi-dimensional consultation. This work also requires technological support. All these efforts will enable more efficient management of resources, for not only the benefits of a few but society as a whole. Moreover and in light of the recent Cancun discussions the international community desires to help tropical rainforest nations to create a better future and conserve rainforests ‘viewed as the lungs of the world'. Carbon sequestration and payment for ecosystem services are also potential benefits of the responsible management of Indonesian rainforests.
Companies such as Carrefour and Kimberly Clark support regulatory changes from government agencies, local and international certification in the field of forestry, such as LEI, FSC and others, which work to develop responsible forest management practices and certification standards. These certification systems provide standards for responsible forest managers and add certainty for downstream industries, customers and investors. This provides stakeholders reassurance and enables a sustainable and transparent system to develop. Options and additional information can then be given to consumers so they recognize which products come from certified sustainable forest management. FSC for example, they set a criteria similar to a forest moratorium where by the forest areas of high conservation value, better known by the term ‘HCV' converted to industrial tree plantations after 1994 are not eligible to receive certificatation. FSC is also positioning itself to refuse to certify companies that had associations with other companies who practices are in violation of the FSC criteria. The Pulp & Paper Association Indonesia opposes this specific FSC policy.
Consumer roles
Most consumers in Indonesia and around the world are very price sensitive. Their short term interest towards cheap prices sometimes even superceeds loyalty to the brands. It is important to raise awareness with consumers so that they make conscious choices and understand their impacts on society, the environment and the economy of their country and producing countries.
Goods labeled with environmental protection remain mainly accessible to higher income households. This can be sometimes be explained as there is no choice for manufacturers other than applying a premium price for the compensation to the additional efforts they have taken to protect the environment. However, lately, environmentally friendlier behaviour began to get a breath of fresh air in Indonesia. Growing communities concerned about the environment demonstrates this. Look at the rise of the community 'bike to work' as well as the forest restoration efforts undertaken by several companies working with communities in their corporate social responsibility programmes. Hopefully, these movements can also eventually lead to the awareness of consumers to prioritize the purchase of labeled ‘environmentally friendlier' products. This will in turn enable product manufacturers to increase demand for sustainable sources down the supply chain and make sustainable consumption more affordable for all.
Breakthrough!
One of the leading academic institutions in Indonesia, PPM Management, also seeks to find constructive solutions. Event Manager PPM, Hewynda, explained that her institution is trying to provide constructive discussion platform for all stakeholders in this industry on January 17, 2011 in the campus of PPM, Cikini Jakarta. Together with several partners who care enough about the future of pulp and paper industry in Indonesia, PPM management try to sit down with several stakeholders in this industry, among others, upstream and downstream industry players, governments, unions, NGOs, associations, national and international certification bodies, as well as national and international media. Hewynda added that at the end of the event, PPM sincerely hope that the establishment of an early embryo in the form of Proceedings for solving the problems facing this industry. We are also very aware that the multi-dimensional problems like this can not possibly be solved by a few hours dialogue, she said.
Carrefour and Kimberly Clark's Contribution to Global Climate Change
As a global retailer, Carrefour is committed to preserving biodiversity, natural resources and to tackling the causes of climate change. A number of concrete initiatives have been taken by Carrefour to contribute to combatting tropical deforestation. Sustainable development Manager for Carrefour Indonesia, Faisal Firdaus, explains the main steps taken by his Group:
- Carrefour is a long time supporter of the need for European regulation against the commerce of illegal wood and, in 2010, was a founding member of Timber Retail Consortium, aiming at working with the European institutions to implement a pragmatic FLEGT regulation
- Carrefour joined the Roundtable for Sustainable Palm Oil (RSPO) in 2006 and is a member of the RSPO Executive Board since 2009. Carrefour has taken the commitment to use 100% certified sustainable palm oil developed with RSPO criteria by 2015 for its own brand products and is developing a quality line cooking palm oil in Indonesia.
- Carrefour supports and welcomes the moratorium on deforestation in Indonesia that was recently announced by the President if Indonesia
- Carrefour supports the call for a moratorium on soy as an effort to break the lionk between deforestation and soybean production in Brazil in 2006 and joined the Roundtable for responsible Soy (RTRS) in 2007
- In 2009 Carrefour supported the UN « Seal the Deal » campaign calling for a ambitious, fair and effective deal including forest preservation. Carrefour also signed Copenhagen Communiqué
- Concerning paper and fibre products Carrefour wishes to promote responsible forest management and ensure that it does not overtly nor unknowingly contribute to rainforest destruction, biodiversity loss and considerable greenhouse gas emissions. Carrefour also is committed to sell only FSC certified tropical wood garden furniture.
- Recently, in November 2010, the CEO of Carrefour - Mr. Lars Olofsson during the Consumer Goods Forum (CGF) meeting declared the CGF resolution of zero net deforestation by 2020.
Kimberly Clark's longstanding commitment towards responsible forestry management
Facts and quotes
- In light of its commitment towards sustainability and as an industry leader in pulp and paper Kimberly-Clark has been sharing its path to responsible sourcing with Carrefour in order to raise awareness to a larger audience. It is important to note that Kimberly Clark has not been able to provide more certified products to its customers such as Carrefour as there is a lack of supply for certified pulp and paper in the region.
- KC is committed to achieve 100% supplier certified by one of five certification schemes of the most recognized worldwide. Currently 98% of the global supplier of KC has been certified, confirms Skip Krasny. Global sustainability forestry programmes.
- In early 2010, we began funding work with WWF-US in partnership with WWF-Indonesia to develop tools for identification, mapping and monitoring of High Conservation Value Forests in Sumatra, Indonesia as well as to develop best practices for plantation forestry in Indonesia.
- KC has had a Corporate Policy on the Sustainable Use of Natural Resources since 1992 that prohibits the use of fibre from rainforests.
- Together with Greenpeace, WWF, the High Conservation Value Forests Kimberly Clark helped in further mapping areas and researching on degraded land and impacts of illegal logging in the tropical rainforests of Indonesia. Such projects have helped in further identifying degraded areas and endangered species vital for the functioning of our ecosystems but also to enable sustainable business practices.
- Suhas Apte, Vice President, Global Sustainability, says that the key aim of the agreement with Greenpeace was to protect important old growth forests globally, but especially the Boreal Forests in Canada.
