2010 Forest Ethics Annual Report

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    Insruct1.

    Hear rom our earless leader.pages 2-5

    2.Protect orests, fght climate change,and transorm corporations.

    pages 6-11

    3.Learn more about the operation.

    pages 12-13

    how to save the world1

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    LETTER FROM the Executive director

    Todd PagliaFearless Leader.

    On Svinghe Wrld

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    Back in 1999 when I started working at ForestEthics, I knew

    thatorests mattered, but I didnt realize exactly how much. I wasnt a

    scientist I was a lawyer. Right and wrong was more where I came rom

    than data, science, and conservation mapping.

    Over the years, Ive learned that orests are one o the most powerul engines

    out there or keeping us healthy and well. Forests clean our air and water,

    help regulate our climate, and provide the core ingredients in medicines that

    literally save our lives.

    My rst job at ForestEthics was to launch our campaign to get oce sup-

    ply giant, Staples, to stop selling paper rom endangered orests. It wasnt

    easy: I dont know o any company that had a sustainability department

    back then, or even a sense o where their products came rom. Staples

    certainly didnt. And they were big they brought in more money

    rom one store in one week than our entire annual budget.

    Tat was a little intimidating.

    We couldnt just start a ght with them we had to talk to them.Maybe they would do the right thing. So I wrote letters and called Staples,

    sent them axes back when that was pretty high tech, but nobody got back

    to me. Eventually Mark Buckley, a mid-level manager, was put on the le.

    While Mark was curious about where Staples products came rom,

    there wasnt any obvious market value in nding out. Customers didnt

    seem to care, and thereore neither did the executives.

    We were getting nowhere.

    However, taking No or an answer was never my strong suit. I knew i we

    could get their attention, we would be able to get somewhere. We had to.

    Paper had become the largest industrial use o orests worldwide and the

    environmental impact was simply not part o the conversation. Little by

    little we began organizing, educating people about paper and orests, and

    Staples impacts. Tose conversations gained momentum until, on a singleday, we staged 100 protests at Staples stores across the country. Suddenly,

    Staples environmental practices were in the news. It turns out that the

    media attention did matter to people at Staples other than Mark, because it

    was threatening the companys public image.

    how to save the world3

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    Despite warnings rom colleagues that you cant talk with

    environmentalists, theyre not reasonable, Mark ew rom Boston to

    Seattle to meet with me. It was the rst o many meetings, most o them

    in a window-less boardroom in a cramped budget hotel near Staplesheadquarters outside o Boston. Mark was troubled to learn that Staples

    was selling products sourced rom endangered caribou habitat in North

    Americas Boreal orest. But one employees concern is a long way rom a

    company-wide commitment to change.

    While our talks gained momentum so did the campaign:

    hundreds o protests happened in dozens o cities, an expos was pub-lished in Te Wall Street Journal, and we even carried out a crazy public-

    ity stunt involving a plane ying a banner over

    Fenway Park during a Red Sox game. (Go Sox Staples Stop

    Destroying Forests, read the airborne banner.)

    Ater two long years, Staples adopted an industry-leading

    paper policy and agreed to work with us on a phase-out o

    products rom endangered orests. We celebrated with a ull-page ad in

    USA oday applauding the company, an ad that still hangs

    in the caeteria o their headquarters and inspires a whole

    new generation o employees.

    But it wasnt until the ashbulbs subsided and the phones stopped ringing

    that Mark and I really got down to business. See, while the ashy stunts

    and protests are what capture peoples hearts and minds, its thebehind-the-scenes stuf that oten yields the most change.

    In the case o Staples, its new environmental policies sent a shock wave

    not only through the oce supply industry, but also through the

    entire paper industry. In short order, Staples biggest competitors

    were trying to meet or beat its environmental policy, recycled paper

    production stopped losing ground, and recycled mills were operating

    at more than 90% capacity or the rst time in many years, a act

    directly attributed to our work with Staples.

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    how to save the world5

    Flash orward a decade and our work with Staples is ar rom over. In

    act, our Staples campaign exposed the needless destruction o North

    Americas Boreal Forest, one o our greatest natural treasures, to make

    things like copy paper, catalogs and magazines.

    So, we launched a campaign to protect the Boreal, and not only

    did Mark Buckley and Staples lend their support and substantial

    buying power, so did Oce Depot, Victorias Secret and dozens o

    other US companies. While the Boreal logging companies might

    be able to ignore environmentalists and other critics, they couldnt

    ignore their largest customers.

    And our hard work paid of. In May 2010, I stood on a stage in oronto,

    side by side with some o the biggest names in the environmental and

    logging industries, to announce the largest conservation initiative in

    history, the Canadian Boreal Forest Agreement. It isnt close to complete

    and accomplishing its goals will not be simple but i it works, tens o

    millions o acres o Boreal Forest will be permanently protected.

    Tis kind o progress takes vision, strategy, a heaping dose o audacity,

    and a whole lot o help rom supporters like you.

    Helping to create the biggest conservation initiative in history isnt

    the only thing that we were up to in 2010. Teres more, a lot more, and

    you can read about it in the pages that ollow. But dont worry

    all this success isnt going to our heads. You wont see us riding

    around in rechargeable limos toasting each other with organic

    champagne. Were just going to keep doing what we do best:

    investing every dollar you donate into, you guessed it, saving orests

    or the people and wildlie that depend on them.

    odd PagliaExecutive DirectorForestEthics

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    PROGRAMs

    Boreal Forest.

    In 2010, we made history with theworlds largest conservation initiative:the Canadian Boreal Forest Agreement.Signed by nine environmental groupsand 21 orest companies, this landmarkagreement is the culmination o morethan a decade o markets campaigns runby ForestEthics and our allies. TeCanadian Boreal Forest Agreements

    key components include:

    Forests clean our air and water, provide lie-saving medicine, and regulate our climate.

    Teyre also teeming with animals, insects, and plants. I you want to save the world,

    orests are a great place to start. And i you want to nd one o the best organizations or the

    job, youre in the right place. Our strategies are always a step ahead, and our results speak or

    themselves: weve secured protection agreements or 65 million acres o orests and helped

    move billions o dollars o corporate buying towards sustainable market solutions.

    Woodland Caribou in the Boreal Forest.

    photo:brian

    evans

    The Spirit Bear o the Great Bear Rainorest.

    photo:barry

    Komar

    In the years ahead, ForestEthics willwork to turn this historic promise oprotection or the worlds largest intactorest into an on-the-ground reality.

    .h

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    how to save the world7

    The SFI Greenwash Label.

    PROGRAMs

    ForestEthics goes Primetime: Harmony on NBC

    NBCs flm Harmony.

    Last November, NBCs Harmonylm gave millions o Americans theirrst glimpse o our groundbreakingwork to protect the Great BearRainorest. Hundreds o supportersacross the US and Canada organizedparties to watch and celebrate.

    oday, were looking at how we canapply this model o conservationto orests across North America, as well as support our colleagues asthey protect critical wild places around the world.

    Paper.

    Last Fall, ForestEthics and DogwoodAlliance released the 4th Annual GreenGrades Report Card, which ranks thepaper practices and policies o largecorporate buyers o products that afectorests. While there will always be roomor improvement, many o the companies

    weve worked with the longest, such asFedEx, Oce Depot and Staples received As and Bs.

    In early 2010, the city o Seattle, WA,took a strong stand against junk mail.

    Tanks to the work o ForestEthicssupporters, the Seattle City Councilpassed a resolution calling or a Do NotMail registry in the state o Washington.

    h

    Sustainable Forestry Initiative Greenwash.

    Consumers count on eco-labels suchas organic and energy-star to guide theirpurchases. Unortunately, there are labelsout there that take advantage oenvironmental concerns and reap prots

    while meeting ew to no environmentalstandards. Te Sustainable ForestryInitiative (SFI) is one such deceptive

    eco-label, but ForestEthics is on the case!Last all, we released our report, SFI:Certied Greenwash, at Greenbuild, the

    worlds largest greenbuilding conerence. Inthe report, we expose SFI as an industry-sponsored scam that threatens our orests,communities, resh water and wildlie.

    h

    ForestEthics supporters outside San Franciscos City Hall.

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    PROGRAMs

    Sacred Headwaters.

    erritory o the ahltan First Nation, theSacred Headwaters is also home to richpopulations o grizzly bears, caribou andstone sheep. Yet none o these enduringacts have kept Shell rom attemptingto transorm this rich wilderness into anindustrial moonscape o coalbed methane

    wells and pipelines.

    Last all, we exposed Shells plans andracheted the pressure up a notch: aphoto o a ForestEthics volunteerconronting Shell CEO Peter Voser atthe World Energy Congress in Montreal(at right) was published in CBC News,our online supporters sent thousands omessages to Shell executives, and we

    placed the ad below in theMontrealGazetteand the Calgary Heraldwith theSkeena Watershed Conservation Coalition.

    h

    The Sacred Headwaters.

    photo:b

    rian

    huntington

    A ForestEthics volunteer with Shell CEO Peter Voser.

    A Corporate Shit Towards a Clean Energy Future

    With the help o ForestEthics, tenlarge businesses and one US city havepublicly announced actions they havetaken to reduce the environmentaland social impacts that come romossil-ueled transportation:

    Walgreens has decided toeliminate Canadas ar Sands rom

    its transportation ootprint. Whole Foods has committedto the elimination, where possible, oits use o uels produced by reneriesthat use eedstock rom Canadasar Sands.

    Actions byGap Inc., Levi Strauss& Co., andTimberland are notspecically ocused on Canadas arSands, but they are relevant becauseuels rom ar Sands are higher incarbon and other environmental andsocial impacts than conventionaluels. And each o these companieshas said, in its own way, that it wants

    to reduce the environmental and socialimpacts o transporting products.

    LUSH Fresh Handmade Cosmeticshas required its transportationproviders to avoid uel rom USreneries connected to Canadas arSands.

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    programs

    how to save the world9

    Tar Sands.

    Tanks to our work, ten major companies,including brands as diferent as Walgreensand Whole Foods, publicly announcedcommitments in 2010 to move away romthe most toxic transportation uels, suchas those rom ar Sands reneries. At atime when governments are ailing to takeaction on climate change, ForestEthicscorporate strategy is pressuring industries

    to do the right thing regardless o whichway political winds are blowing.

    Beginning to shit the transportation uel market.

    Rally in Kitimat, BC against Enbridges proposed Tar Sands pipelines.

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    Shifting the Marketplace.

    When a company is ready to protect orests,wild places and the climate whether theycome to that conclusion on their own or

    because o our public campaigning ourMarket Solutions program helps themdevelop and implement sound policies. Andeven ater a policy is in place, our work isar rom over. We continually encourageand empower companies to improve theirpolicies and practices with strategic toolssuch as our 2010 Green Grades, whichupdated our 2009 ratings o the

    orest- and ecosystem-related policies andpractices o twelve major oce productsand services companies, including FedExOce, Oce Depot, PaperlinX, Staples,Unisource, and United Stationers.

    Market Solutions also has the unique andpowerul ability to turn corporate leaders

    into environmental advocates. Corporationshave enormous leverage with loggingcompanies, energy producers andgovernment ocials and Market Solutionsensures that when a campaign needs itmost, corporate support will be there.

    Corporate engagement with suppliers and

    other supply chain actions have helpedlead us to major environmental victoriesand agreements in endangered orestsincluding Canadas Great Bear Rainorest,Inland emperate Rainorest, Boreal Forest,and Chiles Native Forests.

    h

    For years we were told that we had to make a choice: we could either work withcorporations or against them. We decided to do both and weve become

    exponentially more powerul because o it.

    MARKET SOLUTIONS

    Continuing to shit the paper market.

    2010 was another strong year or Market

    Solutions. We saw continued corporate

    shits away rom Endangered Forest

    products and the timber industrys

    greenwashing program, towards more

    ecologically sustainable alternatives. We

    saw versions o our rst-ever model

    corporate low-carbon uel standard adopted

    by a growing number o companies in

    response to ForestEthics ar Sands

    campaign. And we saw the ruit o some

    partner companies assistanceand For-

    estEthics Boreal campaignborne by theconservation promises o the Canadian

    Boreal Forest Agreement (CBFA).

    Corporate Transormation:All in a Years Work

    Continuing to shit the paper market.

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    how to save the world11

    At ForestEthics we know that oten, the ate o a orest is decided by the big

    corporate buyers o that orests products. So we spend a lot o time educating thosebuyers and convincing them to buy better. And smarter. And with a Forest Ethic inmind. Becoming environmentally responsible is good business both or a

    companys bottom line today, and or our childrens uture.

    Below is a list o some o the companies that have shown strong leadershipon the environmental ront.

    Oce Depotshited its greentop paper to a Forest Stewardship Council-certied, 30% post-consumer recycled paper rom the US South, agreed to phase-outthe Sustainable Forestry Initiative logo rom its private brand papers by early 2011,

    and helped leverage the Canadian Boreal Forest Agreement, including throughsupply chain actions and supplier communications.

    Staples has worked hard to improve its environmental perormance. In 2010, thecompany strengthened its paper policy, including with a commitment to

    eventually source only paper that is Forest Stewardship Council certied and/or post-consumer recycled ber. Te companys past supplier communications also helped

    leverage the Canadian Boreal Forest Agreement.

    United Stationers strengthened their chain o custody system and suppliersurvey, and committed to shiting their private brand paper to Forest

    Stewardship Council-certied sources. Te companys supplier communicationsalso helped leverage the Canadian Boreal Forest Agreement.

    MARKET SOLUTIONS

    Other examples o companies that have made environmental progress that wasinfuenced and supported in part by our Market Solutions Department in 2010 include:

    Limited Brands | PaperlinX | REI | Wells Fargo

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    2010 audited FINANCIALS

    RevenueFoundation Grants 2,471,142

    Contributions rom Individuals 241,063

    Program Revenue (ee or service) 253,694

    Other Income 25,544

    Total Support and Revenue $2,991,443

    ExpensesPrograms

    BC Forests Campaign 263,541

    Boreal Forest Campaign 380,946

    Market Solutions Program 82,989

    Paper Campaign 167,546

    Sacred Headwaters Campaign 394,061

    Save the Sierra Campaign 5,959Stop SFI Greenwash Campaign 248,288

    ar Sands Campaign 682,054

    Total Program Services $2,225,384

    Support and Services

    Administration 163,738

    Development 467,611

    Total Support Services $631,349

    Total Expenditures $2,856,733

    Increase/Decrease in Net Assets $134,710

    Net Assets-Beginning of Year $948,421

    Net Assets-End of Year $1,083,131

    2010 Revenue Breakdown

    FoundationGrants(83%)

    Other

    (1%)ProgramRevenue

    (8%)

    IndividualContributions

    (8%)

    2010 Expense Breakdown

    Administration(6%)

    Development(16%)

    Programs(78%)

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    how to save the world13

    Staff/BOARD

    Board o DirectorsKevin JohnsonPresident

    Andrea Leebron-ClayVice-PresidentNadine Weil

    reasurerJames Clay

    SecretaryMarika Holmgren

    DirectorNeal Goreno

    DirectorStuart Sender

    DirectorMichael Uehara

    Directorangel Kyodo williams

    DirectorAnne Kroeker

    Director

    Senior Management TeamTodd J. Paglia

    Executive DirectorKristi Chester Vance

    Deputy DirectorPierre Iachetti

    Conservation DirectorAaron Sanger

    Director, U.S. Campaigns

    Matt WestendorChie Operating Ofcer

    StaJolan BaileyCanadian Outreach Coordinator

    Christina BruningAdministrative Coordinator

    Will CravenMedia Ofcer

    Marlene CummingsBC Forest Campaigner

    Stephen Danner

    Senior Development OfcerMax Fleisher

    Database & Ofce AdministratorAdam Gaya

    Organizer, U.S. CampaignsDaniel Hall

    Director, Market SolutionsKayla Henson

    Administrative AssistantMary Humphries

    Senior Relationship ManagerChuck Kapelke

    Grant WriterValerie Langer

    BC Forest Campaigns DirectorJason Paglia

    Executive AssistantClaire Richards

    Development AssociateDan Ross

    Operations ManagerRangsan Sanguanchaiyakit

    AccountantMark Schofeld

    Paper Campaign CoordinatorNikki Skuce

    Senior Energy CampaignerHilary Stamper

    Online Communications SpecialistKaren Tam Wu

    Senior Conservation CampaignerParas UpadhyaySenior Accountant

    Alex VanderweeleNew Media Manager

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    San Francisco Bellingham Vancouver www.orestethics.org www.orestethics.ca

    [email protected]

    Be pa or lut

    When you give to ForestEthics, you have the satisaction oknowing youve made a tangible diference in the struggle

    to protect Endangered Forests.Tere are many ways you can make a donation to ForestEthics:

    Visit www.forestethics.org/donate

    Call us at 1-800-725-0087

    Or, nd other ways to give at www.forestethics.org/ways-to-give

    ForestEthics would like to thank the thousands of

    grassroots supporters, volunteers, donors, and concerned

    citizens in the US and Canada who make our work possible.