How APP is toying with extinction

Transcription

1 Greenpeace International Media Briefing. How APP is Toying with Extinction. June 2011

2 How APP is toying with extinction 1 Rainforests in Indonesia are being destroyed. Some of it ends up as packaging for wellknown toy brands. 2 Forensic testing by the world authority in paper analysis revealed Mixed Tropical Hardwood (MTH) in the packaging. MTH means rainforest clearance. MTH is only pulped at commercial scales in Indonesia. 3 The companies that make the packaging for toy companies like Mattel, Disney, Hasbro and LEGO 4... are buying paper from companies whose mills are pulping Indonesia s rainforests. Only APP and one other company produce pulp using MTH. Products made from this pulp are traded globally. 5 Greenpeace investigators went into the rainforest to document the impact of APP s current operations on wildlife habitat and peat swamp forests. 6 Destroying Indonesia s rainforests for toy packaging is pushing critically endangered wildlife like tigers towards extinction, and it is making climate change worse.

3 Greenpeace International Media Briefing How APP is Toying with Extinction June Millions of hectares of Indonesia s rainforest habitats and carbonrich peatlands are earmarked for destruction The government of Indonesia has identified the pulp and palm oil sectors as the main drivers of deforestation. 1 Both of these sectors have been gearing up for massive expansion, with targets to treble pulp production over the next 15 years 2 and double palm oil production in the next decade. 3 In an attempt to curb Indonesia s contribution to global emissions, some 85% of which are due to land-use change, 4 in May 2011 the government announced a moratorium on new business concessions on primary forests and peatlands. 5 Greenpeace analysis shows that millions of hectares of forested wildlife habitat and carbon-rich peatlands remain available for pulp and palm oil expansion. For instance, within identified concession areas, best available government data suggest there are more than 30 million hectares of rainforests and peatland, 6 as well as nearly half of all remaining orang-utan habitat. 7 Clearance of these areas will drive climate change and push endangered wildlife one step closer to extinction. The leading player in both the pulp and palm oil sectors is the Sinar Mas Group: Asia Pulp & Paper (APP) is the pulp division; Golden Agri Resources (GAR) is the palm oil division. Both companies have made recent policy announcements in advance of the moratorium. APP announced that it would need to remain dependent on clearance of Indonesia s rainforests until the end of APP s business development strategy is based on the ongoing expansion of its suppliers into rainforest areas. This is in sharp contrast with Sinar Mas s palm oil division, Golden Agri Resources (GAR), which introduced a new forest conservation policy in 2011 to ensure that its palm oil operations have no deforestation footprint. 9 Greenpeace investigations show the most recent impacts of APP suppliers operations, including destruction of wildlife habitat and clearance of deep peatlands.

4 Greenpeace investigations link the toy sector to rainforest destruction and APP PT Indah Kiat, 28 August 2008: Stockpiles of logs at APP s main pulp mill in Riau, Indonesia. Beltra/ Greenpeace Greenpeace International investigations have linked the world s leading toy brands to rainforest destruction. Forensic testing shows that the packaging for Mattel-, Disney-, Hasbro- and LEGO-branded merchandise contains Indonesian rainforest fibre. Greenpeace investigators have also established links between these brands and Asia Pulp & Paper (APP), the largest and most notorious pulp and paper company operating in Indonesia. The key steps for the investigation were as follows: 1. Greenpeace sourced a selection of toy products from leading brands in a number of countries around the world. 2. Greenpeace identified printing houses or packaging manufacturers from the packaging, where possible. 3. Greenpeace established links between these printers/ packaging manufacturers and APP through trade data, publicity materials and confidential sources. 4. Greenpeace sent samples of the packaging materials to IPS 10 laboratories for analysis IPS is the global authority for testing of paper products, widely used by the paper sector. 5. An IPS expert prepared and examined the packaging samples under a forensic microscope to test for the presence of MTH (mixed tropical hardwood). MTH is only pulped at commercial scales in Indonesia. 11 Only APP and one other company produce pulp using MTH. 12 Products made from this pulp are traded globally. None of leading toy brands Mattel, Disney, Hasbro and LEGO has organisation-wide policies to ensure that neither it nor any of its third-party suppliers or licensees is contributing to the destruction of the world s remaining rainforests. The investigations show that some of the packaging for Mattel-, Disney-, LEGO- and Hasbro-branded merchandise is made using APP paper. IPS has confirmed the presence of MTH in a range of the samples supplied by Greenpeace. This forensic evidence links major players in the toy sector to the destruction of Indonesia s rainforests. For a list of products and brands testing positive for the presence of MTH, see appendix. These investigations are just the tip of the iceberg in terms of revealing the potential scale of APP s trade links within Indonesia and China to the toy sector, as well as the wider impact of the toy sector on Indonesia s rainforests. A growing number of corporate consumers who were buying products produced by APP, many identified in Greenpeace investigations, have now introduced policies that will eliminate products from companies linked to deforestation in their supply chains. These companies include Kraft, Nestlé, Unilever, Carrefour, Tesco, Auchan, LeClerc, Corporate Express and Adidas.

5 Greenpeace International Media Briefing How APP is Toying with Extinction June Asia Pulp & Paper is pulping Indonesia s rainforests Overview of SMG/APP operations and areas targeted for expansion in Sumatra. Greenpeace investigations document the impact of current operations in Bukit Tigapuluh and Kerumutan. APP is the pulp and paper division of the Sinar Mas Group. Companies within the Sinar Mas Group supply APP pulp mills with pulpwood. APP pulpwood suppliers clear rainforest from areas of critical wildlife habitat and deep peatland. Deep peat is theoretically off limits to development under Indonesian law. Current company policy shows APP will continue its dependence on rainforest clearance until Mapping analysis by Greenpeace shows that millions of hectares of wildlife habitat and carbon-rich peatland remain threatened by pulp sector expansion, led by APP. Rainforest areas targeted by APP suppliers remain unprotected under the recent government moratorium. Forest clearance within areas targeted by APP suppliers is driving climate change and is pushing species such as the Sumatran tiger only 400 or so of which remain in the wild 14 one step closer to extinction. Two critical areas of forested tiger habitat under threat from APP suppliers are Bukit Tigapuluh and Kerumutan, both located on the island of Sumatra.

6 The Bukit Tigapuluh Forest Landscape in central Sumatra has been designated one of twenty Global Priority Tiger Conservation Landscapes. 15 Around 30 tigers are estimated to live within the Bukit Tigapuluh Forest Landscape. 16 The Landscape is also critical to the future of the Sumatran orang-utan it is the site of the only successful reintroduction programme for this critically endangered species. 17 The government has zoned much of this lowland forest for clearance for industrial plantations such as pulpwood. 18 As a result, APP suppliers continue to target and actively clear some of Sumatra s most important forest for the survival of critically endangered wildlife. According to Greenpeace mapping analysis, between 2007 and 2011 APP s suppliers Kerumutan added 69,500 hectares inside the Bukit Tigapuluh Forest Landscape to its pulpwood supply areas. Aerial photographs by Greenpeace in April and August 2010 show extensive areas of clearance and recent plantation establishment in areas that were forested in A further priority area for tiger conservation is the 1.3 million hectare Kerumutan Peat Swamp Forest in Riau. 19 Riau in Sumatra holds 40% of Indonesia s peatland, perhaps the world s most critical carbon stores and a key defence against climate change. Much of the area is on deep (>3 metres) peat. 20 Aerial photographs by Greenpeace in August 2010 and May 2011 document ongoing clearance of areas mapped as deep peatland. Greenpeace satellite analysis reveals extensive clearance within SMG/APP supply areas, notably since Aerial photographs in August 2010 and May 2011 document ongoing rainforest clearance on deep peatland. Greenpeace Bukit Tigapuluh Greenpeace mapping analysis shows that between 2007 and 2011 APP s suppliers added 69,500 hectares inside the Bukit Tigapuluh Forest Landscape to its pulpwood supply areas; two-thirds of this area was forested in Aerial photographs in April and August 2010 show extensive rainforest clearance and recent plantation establishment in mapped tiger habitat. Greenpeace

7 Greenpeace International Media Briefing How APP is Toying with Extinction June Mattel is number one in toys Forensic testing shows that a wide range of packaging for the Mattel Barbie fashion dolls regularly contains MTH from Indonesia s rainforests.21 Mattel facilities in Indonesia specialise in the manufacture of dolls, largely focusing on production of its wide range of Barbie products and its other iconic doll characters. In addition, Mattel is licensed by Disney to produce a large range of dolls from Disney films.22 Mattel requires testing and certification for materials, including paper products such as packaging, to attest that they meet its standards in terms of the exclusion or limitation of a range of hazardous chemicals. Mattel has recently received certificates for APP packaging material for use both within Indonesia and in China.23 APP s paper and packaging mills are supplied by APP s pulp mills in Sumatra;24 these source MTH from Indonesia s rainforests.25 Mattel s Indonesia facilities produce a wide range of fashion dolls. This includes dolls under Mattel s own Barbie brand, as well as the popular Monster High brand and special edition dolls usually linked to movie and TV characters. The Indonesian facilities also manufacture Disney-branded dolls under license; these include the Princess doll range and the High School Musical range. Greenpeace identified two Indonesian printers producing packaging for Mattel s Made in Indonesia fashion dolls sold in Germany, Australia, the UK, the USA and elsewhere: Sansico and PT Bukit Muria Jaya (PT BMJ).26 Further investigations have uncovered the trade links between these companies and APP. Sansico27 has facilities in Indonesia, and claims to produce over 1 million items of packaging per week. Mattel is one of its principal clients, and Sansico has reportedly supplied printed packaging to the company for two decades.28 This is primarily through Sansico s printing house, PT Printec II, which adjoins Mattel Indonesia s main production facility. The printing house produces all kinds of packaging products for Mattel, including those licensed to Disney. Sansico s mill, PT Grafitec, also provides packaging to Mattel Indonesia.29 PT BMJ is part of the Indonesian Djarum Group and is one of the country s leading packaging producers across sectors.30 According to confidential information, BMJ is a customer of APP Indonesia. Forensic tests of Mattel packaging from these printers identify regular use of MTH.

8 Disney is number one licensed brand Greenpeace has identified that Mattel manufactures Disney Princess and High School Musical-brand fashion dolls in Indonesia. These iconic dolls, including Snow White, Cinderella, Rapunzel and Sleeping Beauty, are manufactured at the same Mattel Indonesia facilities that produce Barbie. Forensic testing of a wide selection of packaging materials for these dolls reveals that they regularly contain significant amounts of MTH. 31 Greenpeace investigations show that Mattel Indonesia uses packaging material produced by APP. Mattel Indonesia manufactures Disney-branded fashion dolls. Some of the packaging for these products is labelled as printed by Sansico, which is supplied with packaging material by APP.

9 Greenpeace International Media Briefing How APP is Toying with Extinction June Hasbro and Lego are major players In addition to identifying Mattel- and Disney-branded products linked to the destruction of Indonesian rainforests, Greenpeace investigations have identified a number of other major toy manufacturers, including Hasbro and LEGO, which produce merchandise in China that has tested positive for MTH in its paper products. Like Mattel, Hasbro requires certification for materials, including paper products such as packaging, to attest that they meet its standards in terms of the exclusion or limitation of a range of hazardous chemicals.32 Hasbro has recently received certificates for APP packaging material for use within China.33 APP s paper and packaging mills are supplied by APP s pulp mills in Sumatra;34 these source MTH from Indonesia s rainforests.35 LEGO has an exclusive licensing agreement with Lucasfilm Ltd. granting the company the right to manufacture and market a series of LEGO sets based on themes from the original Star Wars trilogy and the three subsequent films.36 Some of these special edition Star Wars products are published by Dorling Kindersley (part of the Penguin Group) and printed in China by printers with links to APP. One printer of these products (Leo Paper) was a 2009 winner of two Sinar Mas Print Awards a competition open only to customers of APP; another one (Hung Hing Printing) belongs to the same group of companies as Sun Hing Paper. According to confidential 2010 trade data, Sun Hing Paper is one of China s top three importers of APP Indonesia paper. Fore nsic testing of one of the special edition Star Wars products produced by Hung Hing revealed MTH.37

10 The recipe for low-carbon development Kampar Peninsula, Riau, 6 November 2009: Greenpeace activists and local community work to build a dam across canals through peat swamp forests. Peatland degradation is Indonesia s highest source of GHG emissions. Rose/ Greenpeace Indonesia s President s vision for low-carbon development is being undermined by a weak moratorium on the allocation of new business concession areas in areas of primary forest and peatland. 38 Millions of hectares of rainforest are being rebranded as degraded lands available for development. Greenpeace mapping analysis of areas earmarked for development as pulpwood, oil palm, timber or agricultural plantations include carbon-rich peatlands and areas critical for the survival of tigers and orang-utans in the wild. 39 By contrast with this business-as-usual approach to economic growth based on deforestation-dependent expansion, Indonesian industry s own figures show that Indonesia s ambitions for economic growth can be met without the need to impact rainforests and biodiversity. 40 What is missing is the political will and strong leadership from within key government ministries to support companies whose business models are based on forest conservation policies and high-efficiency productivity. At the same time, companies who pursue illegal or destructive operations must be penalised through strong law enforcement. Urgent and concerted action is required to drive a shift away from a business-as-usual deforestation-dependent development model to a model based on zero deforestation and high-efficiency productivity. Stop the problem and start the solution Corporate consumers: A growing number of progressive companies are implementing policies to achieve a zerodeforestation footprint. This includes a set of requirements that suppliers must meet for all commodities linked to deforestation and peatland destruction. APP: APP s sister company within the Sinar Mas Group, GAR, has set the bar for a progressive forest conservation policy to ensure that operations have no deforestation footprint, including no development on peatlands. 41 APP and other players within Indonesia s pulp and palm oil sectors needs to follow GAR s lead. Indonesian government: The current moratorium does not provide adequate scope to stem the conversion of rainforests and peatlands important to wildlife and climate stability. The government needs to extend the moratorium to cover ALL natural forest and peatland areas; this includes areas within existing concessions. This should be followed by a review of existing concessions to establish whether they were granted in compliance with Indonesian law.

11 Greenpeace International Media Briefing How APP is Toying with Extinction June Packaging found to contain MTH # Country Brand/ Product Printer MTH Acacia of Purchase Product Code MATTEL BRANDS MADE IN INDONESIA 1 US Barbie Swan Lake T4792 Sansico 2 US Barbie Happy Birthday T UK Barbie Swim n Dance Mermaid T UK Barbie Swim n Dance Mermaid (instruction leaflet) T Australia Barbie Princess Perfect N5242 PT BMJ 6 Germany Barbie Ballerina T2214 Sansico 7 Germany Barbie Ballerina T2214 Sansico 8 Germany Barbie Spring/Summer (pink dress version 1) R4183 Sansico 9 Germany Barbie Spring/Summer (pink dress version 1) R4183 Sansico 10 Germany Barbie Spring/Summer (pink dress version 2) R4184 Sansico 11 Germany Barbie Spring/Summer (pink dress version 2) R4184 Sansico 12 Germany Barbie Spring/Summer (pink dress version 3) R4185 Sansico 13 Germany Barbie Spring/Summer (pink dress version 3) R4185 Sansico 14 Germany Barbie 12 Dancing Princesses V1970 Sansico 15 Germany Barbie Mermaid Colour Change Hair T7404 PT BMJ 16 UK Monster High Draculaura N Brazil Barbie Ballerina R MATTEL BRANDS MADE IN CHINA 18 US Barbie Ballroom Dancer T Australia Barbie Glamour N Netherlands Barbie Fashionistas - DISNEY BRANDS MADE BY MATTEL IN INDONESIA 21 UK Sleeping Beauty R UK High School Musical 3 N UK Cinderella R UK Snow White R UK Princess Doll Belle R4842 Sansico 26 UK Rapunzel T UK Rapunzel doll (instruction leaflet) T Germany Princess Belle / Bath Beauty R4870 Sansico 29 Brazil Princess Ballerina Cinderella R DISNEY BRANDS MADE BY MATTEL IN CHINA 30 Germany Winnie the Pooh Uno card game HASBRO BRANDS MADE IN CHINA 31 Netherlands Transformers / Robot Fighters - 32 Netherlands My Little Pony / Pinkie Pie - LEGO BRANDS MADE IN CHINA 33 Germany Star Wars game set Hung Hing

12 References 1 DNPI (Dewan Nasional Perubahan Iklim National Council on Climate Change) (2010) Indonesia s greenhouse gas abatement cost curve August DNPI-Media-Kit/reports/indonesia-ghg_abatement_cost_ curve/indonesia_ghg_cost_curve_english.pdf 2 DNPI/UNCCC (2009) National economic, environment and development study (NEEDS) for climate change: Indonesia country study final report December Media Indonesia (2010) Step Up Palm Oil Production Without Expansion Media Indonesia 28 September id=nzgyng== 4 DNPI (2010): 12, 13 attributes net deforestation emissions as 772Mt from peat and 838Mt from other LULUCF sources. Other DNPI documents from 2010 give net deforestation emissions as 763Mt, peat decomposition as 300Mt and peat fire as 550Mt in Government of Indonesia (2011) Presidential Instruction No. 10/2011, 20 May Greenpeace analysis based on MoFor (Indonesian Ministry of Forestry) (2009) Landcover Indonesia 2006 and MoFor (2010a) Landuse maps (provincial planning maps/forest Land Use by Consensus maps (TGHK), provided by the Planning Department of the Ministry of Forestry, Indonesia, downloaded as Google Earth files (kml) from appgis.dephut. go.id/appgis/kml.aspx March Note: for Riau and Central Kalimantan, MoFor still uses the outdated TGHK maps. For the purpose of this report, for Riau, the draft provincial planning map as of 2007 has been used. 7 Greenpeace analysis based on: MoFor (2009); MoFor (2010a); MoFor (2010b) HTI concession maps, provided by the Planning Department of the Ministry of Forestry, Indonesia, downloaded as Google Earth files (kml) from appgis.dephut.go.id/appgis/kml.aspx September 2010 and updated using information available at go.id/files/buku_pemanfaatan_2010.pdf and webgis. dephut.go.id/ditplanjs/index.html; and Meijaard et al (2004) Borneo Orangutan PHVA Habitats Units: Composite dataset developed by Meijaard & Dennis (2003), amended by delegates of the Orangutan PHVA Workshop, Jakarta, January 2004, and subsequently further updated by Erik Meijaard. 8 Greenbury (2011) Truly sustainable business model eliminates either/or choices, Eco-Business. com, 14 April truly-sustainable-business-model-eliminates- %E2%80%9Ceitheror%E2%80%9D-choices-by-aidagreenbury/ 9 GAR (2011) Golden Agri-Resources Initiates Industry Engagement for Forest Conservation 9 February Resources%20Initiates%20Industry%20Engagement%20 for%20forest%20conservation.pdf p4 10 Integrated Paper Services (IPS): 11 See eg: Pihlajamäki & Hytonen (2004) Mixed tropical hardwood a minor and declining source of fibre for paper, twogether, Voith Paper customer magazine, issue 17. The authors are working for pulp and paper industry specialist consultancy Jaakko Pövry. 12 The other two companies producing large amounts of pulp, Kertas Nusantara (ex Kiani Kertas) and PT Tanjung Enim Lestari, use acacia fibre only. See Pirard & Cossalter (2006) The Revival of Industrial Forest Plantations in Indonesia s Kalimantan Provinces, PT Tanjung Enim Lestari website id=3&itemid=10 accessed 13 May Greenbury (2011) 14 WWF (2011) WWF Captures Rare Footage of Sumatran Tiger Triplets Playing in Forest Under Imminent Threat of Clearing 9 May eportid=12&language=en 15 Global Priority Tiger Conservation Landscapes are habitats that can support at least 100 tigers and where there is evidence of breeding. Source: Dinerstein et al (2006) Setting Priorities for the Conservation and Recovery of Wild Tigers: , A User s Guide. WWF, Wildlife Conservation Socity (WCS), Smithsonian, and NFWF-STF, Washington, D.C. New York. 16 KKI Warsi / Frankfurt Zoological Society / Eyes on the Forest / WWF-Indonesia (2010) Last chance to Save Bukit Tigapuluh: Sumatran tigers, elephants, orangutans and indigenous tribes face local extinction, along with forest 14 December 2010 indigenouspeoplesissues.com/attachments/ article/8051/savebukittigapuluh.pdf p8 citing Balai Taman Nasional Bukit Tigapuluh, Kabupaten Tebo, Kabupaten Tanjabar, Kabupaten INHIL, Kabupaten INHU, Frankfurt Zoological Society, WWF, Warsi, ZSL, PKHS (2009) The Bukit Tigapuluh Ecosystem Conservation Implementation Plan Conservation%20Plan.pdf 17 Perth Zoo website: -Research/Projects-in-the-Wild/Sumatran-Orangutan- Pilot-Project/. The re-established orang-utan population now inhabits large parts of the Bukit Tigapuluh landscape, especially in the southern buffer zone. Source: GRASP (2009) Bukit Tigapuluh ecosystem background orang-utan reintroduction (Pers. Comm.), GRASP (Great Apes Survival Partnership). 18 Based on Greenpeace Mapping Unit analysis of Ministry of Forestry Landuse maps. Source: MoFor (2010a). 19 Dinerstein et al (2006) 20 Wahyunto, S Ritung and H Subagjo (2003) Peta Luas Sebaran Lahan Gambut dan Kandungan Karbon di Pulau Sumatera / Maps of of Peatland Distribution Area and Carbon Content in Sumatra, Wetlands International Indonesia Programme & Wildlife Habitat Canada (WHC) 21 IPS test results Copies held by Greenpeace. 22 Greenpeace investigations Indah Kiat Pulp & Paper (Sinar Mas) Serang mill, online, product certificates certificates.asp; Ningbo Zhonghua Paper Co. Ltd., online UploadFile/ pdf 24 See eg APP (Asia Pulp & Paper) (2007) Environmental and Social Sustainability Report for Indonesia www. asiapulppaper.com/portal/app_portal.nsf/web-menupage/ F1F6E3DAF915A B00232E67/$FILE/APP%20 Environmental%20and%20Social%20Sustainability%20 Report%20for%20Indonesia%202005%20-% pdf p % in 2007, according to APP (2009) Growing a Sustainable Future Environmental and Social Sustainability Report for Indonesia APP_Portal.nsf/WebMenuPage/5BFB083D5FD9781C EF0035E314/$FILE/090724%20APP-2007-New%20 Rev1Final.pdf. Greenpeace calculations based on Indonesian government data likewise resulted in 20% for Source: MoFor (2010c) Daftar Nama-Nama iphhk dan rekapitulasi realisasi Pemenuhan Bahan Baku tahun 2009 Nasional Kapakitas Lebih dari M3/tahun ( ). 26 KBA (2010) Sansico Group in Jakarta takes Rapida 105 and Genius 52UV: KBA technology invigorates Indonesian packaging sector html?newsfocus=nxps%3a%2f%2fkba%2fnews%2f16f2b9 6d-fac0-451b-8798-aefc273e55e4%2F%3Flanguage%3De n%26pool%3dkba and BMJ (2008) BMJ Printing Catalogue 27 Sansico Resources website: Affiliated.html 28 KBA (2010) 29 KBA (2010) 30 Goliath (2010) Indonesian Commercial Newsletter 1 November 2010 goliath.ecnext.com/coms2/gi_ /djarum-group.html 31 IPS test results Copies held by Greenpeace. 32 Hasbro (2005) Corporate Quality Assurance Safety and Reliability Specifications 12 December Indah Kiat Pulp & Paper (Sinar Mas) Serang mill, online, product certificates certificates.asp; Ningbo Zhonghua Paper Co. Ltd., online UploadFile/ pdf 34 See eg APP (2007): % in 2007, according to APP (2009). Greenpeace calculations based on Indonesian government data likewise resulted in 20% for Source: MoFor (2010c). 36 LEGO Group (2011b) Company Profile: An introduction to the LEGO Group November 2011 cache.lego.com/upload/contenttemplating/ AboutUsFactsAndFiguresContent/otherfiles/ download98e142631e71927fdd52304c1c0f1685.pdf 37 IPS test results Copies held by Greenpeace. 38 Government of Indonesia (2011) 39 Mapping analysis using 2006 forest cover data (MoFor 2009) and best available data on existing and allocated concession areas 40 See Greenpeace (2010) Protection Money 23 November reports/protection-money/ p43 for full figures 41 GAR (2011): 4 Full presentation of the evidence summarised in this briefing is available at June 2011 Published by Greenpeace International, Ottho Heldringstraat 5, 1066 AZ Amsterdam, The Netherlands [email protected]