Introducing TFT A Non-profit private sector model to

Introducing TFT A Non-profit private sector model to fight deforestation

What is TFT? A UK Registered non-profit (charity) • 90+ staff (>75% in field locations) Offices in 14 countries • UK, Switzerland, France, US • Indonesian, Malaysia, China, Vietnam, India, Laos • Cameroon, Gabon, Republic of Congo • Brazil We’re a MEMBERSHIP based organization • > 85 member companies – retailers, manufacturer, suppliers – growing rapidly Please visit us at www. tft-forests. org

What drives us? We’re Passionate about: People, Products & the Environment We believe we can be best in the world at: Helping businesses deliver Responsible Products

What Do We Do? Businesses Engage Transform Pragmatic On-the-ground Deliver Brand value Profits – Good Wood Good Business

Something of our History 99 00 01 02 03 04 Illegal wood FSC wood Policy support Comms support Traceability 05 06 07 08 09 10 11

How Do We Do It? $$ Donors Comms NGO Customer $$ TA, Comms Retailer Finished product $$ Manufacturer Raw materials $$ $$ Raw Material Producer Tech. Assistance to FSC wood

Some Achievements • Transformed the Global Garden Furniture Industry • First FSC Certificates achieved in Peninsula Malaysia, Indochina, Congo Basin, Community forests in Indonesia, Laos • Legality certificates; excluding illegal wood through SE Asia, Africa, Brazil, China • Won Global Awards - “Biso na Biso” • Grew the business, added new members, survived 2009! But…. 13 million hectares of forest lost per year, mostly through agriculture expansion • Cattle ranching, soy, Palm oil – used in consumer products 15% of all GHG emissions from tropical deforestation Can we do more?

Something of our History cont… 99 00 01 02 03 04 05 06 07 08 09 10 11 Illegal wood FSC wood Policy support Comms support Traceability Beyond Wood Forest Responsible Products Delivering Responsible Products

Responsible Products Respect the environment and improve peoples’ lives at all points in the supply chain • Wood • Pulp & Paper • Palm Oil • Leather All Underway • Cotton • Stone • Sugar, Soy, Cocoa – preliminary discussions • Any product really…… It’s about one end of the supply chain taking RESPONSIBILITY for what happens at the other end

How Do We Do It? Banks $$ Donors Comms NGO Customer $$ TA, Comms Retailer Finished product $$ Manufacturer Raw materials $$ $$ Raw Material Producer Tech. Assistance to become RP Cert standard

Our Partnership with Nestlé May 17 th 2010: “No Deforestation” Commitment & Responsible Sourcing Guidelines (RSGs) • Compliance with all laws and regulations • Protect High Conservation Value Forest (HCVF) • Respect Free, Prior & Informed Consent for IPs and local communities • Protect Peat lands • Protect High Carbon Stock (HCS) forests Sent a crystal clear message to ALL suppliers across ALL commodities that it’s time to innovate deforestation out of their products Link to RSPO…. RSGs = Nestlé Sustainability Standard - not new cert scheme

Our Partnership with Nestlé Our Approach – Engaging & Transforming • Identify key markets – India, Thailand, China • Supply chain mapping; Risk mapping • RSG Checklist development • Traceability - Exploring the “Natural Segregation” Model • Stakeholder Engagement • RSG Assessments • Supplier meetings, other markets, mapping

GAR Forest Conservation Policy A Genuine Breakthrough in the global palm oil industry GAR wants to ensure that its palm oil operations have no deforestation footprint. Core to this is: • No development on high carbon stock forests • No development on high conservation value forest areas • No development of peat lands (regardless of depth) • Free, Prior and Informed Consent for indigenous and local communities • Compliance with all relevant laws and National interpretation of RSPO P&C Mirrors the Nestlé RSGs

Scaling Up Buyers critical Bankers, investors – critical This will only work if those that make the NO DEFORESTATION COMMITMENT are rewarded i. e. more profits, greater shareholder value Let’s speak clearly – it’s 100% about $$$$ And that’s OK! And that’s where we really need the financial services sector to come in – it’s not all about cost!

TFT’s NO DEFORESTATION COMMITMENT Nestlé RSGs are excellent – clear message to supply chain partners But…Nestlé buys 0. 7% of palm oil traded on the global market Our model needs leverage to TRANSFORM So, we need others to make the NO DEFORESTATION COMMITMENT too! We need to give raw material growers a clear, overwhelming message: “If you’ve got DEFORESTATION in your product, we can’t buy it!”

And Finally… Deforestation is a supply chain issue…. TFT model is about one end of supply chain taking responsibility for what happens at the other end We’ve shown in the past with wooden products what CAN be achieved The NO DEFORESTATION COMMITMENT can have a mighty big impact if we can only get leverage

“Ten years ago, Greenpeace and its counterparts were lambasting virtually the entire industry as unsustainable, socially exploitative and environmentally destructive. Now, they're suggesting that if GAR/TFT standards were applied across the whole sector, the war would virtually be over. ” Richard Black, BBC Science & Environment Correspondent http: //www. bbc. co. uk/blogs/thereporters/richardblack/

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