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Rainforest Alliance VP Forestry June 4, 2014

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Rainforest Alliance VP Forestry June 4, 2014 Richard Z. Donovan Senior VP Rainforest Alliance VP Forestry June 4, 2014 1 What is the Rainforest Alliance? Rainforest Alliance is an international, nonprofit (501c3) conservation & development organization established in 1997. Our mission - Protect biodiversity & livelihoods by transforming: Land use practices Business practices Consumer behavior 2 RA OFFICES & REPRESENTATIVES Americas Asia Pacific Europe Argentina Australia Belarus 1. Bolivia China Denmark Brazil India Estonia 2. Canada 9. Indonesia Germany Chile Japan Italy Colombia Malaysia Latvia 3. Costa Rica New Zealand Lithuania 4. Ecuador Vietnam Poland El Salvador Russia (3) 5. Guatemala Africa Serbia Guyana 10. Cameroun 13. Spain Honduras Congo Kinshasa (DRC) 14. UK 6. Mexico 11. Ghana Nicaragua Ivory Coast 7. Peru 12. Kenya Uruguay 8. USA (3) Many collaborators, but 2 partners worth singling out (20+ years working together): • Imaflora/primary focus Brazil • NEPCon/primary focus Europe & CIS countries 3 3 THE CONTEXT – TRENDS UNDERLYING MARKET DYNAMICS 1. As of 2011, the majority of the world’s population is urban & the urbanization trend continues & will be an increasing part of the world’s projected population of 9 billion by 2050 2. Over past 10 years 1 billion people moved up to middle class; OECD projection is that between now and 2030 there will be continued huge growth of the middle class in emerging economies 3. Historically there has been a “lockstep” relationship between income growth & per capita consumption of raw materials 4. We see the above resulting in increased demand for consumer products (e.g. tissue, diapers), & forest-based raw material for packaging & housing 5. We also see increased demand for food, fiber and fuel – indeed a fight in the natural resources space – increasing pressure on natural forests/ecosystems, water, farmland & creating pressures within communities & with corporations & government 4 GROWTH OF THE MIDDLE CLASS 2/3’s of global economic growth between now & 2030 will come from emerging economies, e.g. China, India, Vietnam, Africa, Latin America; Table from OECD Development Centre Working Paper 285, 2011, By OECD & Standard Chartered Research 5 Who owns forests – change is happening…. Source: Sunderlin, et al. 2008. GIVEN THE ABOVE, WHAT’S HAPPENING IN THE MARKETS? Responsible to Sustainable? • There seems to be a diverse set of values that many are working towards that may in fact be shared values, sometimes competitive & often messy & even illogical • Responsible? - legal, traceable, “deforestation free”, ILO core conventions, FPIC (e.g. RA current involvement as independent evaluator of Asia Pulp & Paper or APP) • Sustainable? – FSC, Sustainable Agriculture Network (SAN), organic, Fair Trade, PEFC, HCV, HCS 7 MARKET DEVELOPMENT MODEL #1 WORKING WITH COMMUNITIES & SME’S IN BIODIVERSITY-CRITICAL LANDSCAPES • Advisory support, with partners, in communities • Targeted focus on local & national markets (e.g. Mexico) • Capture global or regional market demand opportunities where there is a good match between supply/species & scale/quality of demand (e.g. musical instruments) • Create/support complementary national public procurement policies that reinforce soc/env values 8 Working with Community/SME Businesses 9 Guatemala . Forest certification training (1996) . First certified community concession (1998) . Business/management capacity building for community businesses & organizations . Assistance with business planning and forest products marketing . Development for lesser-known species and NTFPs . Target markets – local, national & international Total Phase 3: Value-added processing and economic certified non-timber forest products value of the + forest Phase 2: Certified wood products production & lesser-known species + Phase 1: Conventional forest management © Copyright 2008, Rainforest Alliance Wednesday, June 11, 2014 9 Petén Results To Date - Metrics • 480,000 ha of forest certified according to FSC standards • 180,000 ha certified Non Timber Forest Product production – Xate palm, nuts, latex • Total sales to date of forest products by community concessionaires to domestic and export markets: more than $30 million • More than 1,300 permanent jobs created – about 5,000 annual temporary and seasonal jobs – most jobs well above Guatemala minimum wage • Diversification – NTFP Xate (ornamental palm) sales tripled and growing • Role of women - >50% of all NTFP jobs are held by women; women in leadership positions leading the cooperatives • Community reinvestment ($200K/year) from profits into social development, e.g. infrastructure, healthcare and education, as well as forest protection 10 Guatemala Highlands - Totonicapán Province – 24 cantons protecting forest watersheds, reforesting, adapting to climate change & creating livelihoods 11 12 Martin Guitars – one example, multiple players 12 MARKET DEVELOPMENT MODEL #2 – LEVERAGING GLOBAL BUYERS Stepwise approach to sustainable supply for global brands, retailers & buyers, i.e. SmartSource, LegalSource (w NEPCon, FSC, etc.) –Framework of traceable>legal>certified SFM is now getting fairly consistently accepted (e.g. Consumer Goods Forum – coalition of 400 brands/retailers – stepwise procurement policy for pulp, paper & packaging, numerous companies) –Ongoing global dialogue on deforestation, FPIC/human rights, etc.; not just about forestry/forest products – Tropical Forest Alliance (TFA) 13 SmartSourcing • In 2004 started engaging global brands/retailers • Collaborating with them to: – Reduce deforestation and forest degradation & support traceable, legal & sustainable forest management (SFM) for timber & non-timber forest products, ecosystem services, etc.; – Promote responsible sourcing (i.e. procurement) for pulp, paper, wood, and packaging; and, – Explore where these companies can support communities and small/medium enterprises (SMEs) • Working directly with approximately 35 companies of varying sizes now; we are not alone, e.g. WWF, TFT, etc. 14 Examples of global brands, retailers 15 LOOKING FORWARD 1. Common “responsible” sourcing approach across forestry & agriculture): – Traceable – Legal – Deforestation-sensitive (“free”, “zero”, “net zero”, etc.) – ILO core convention sensitive (child labor, bonded/slave labor, etc.) – Free, prior & informed consent (FPIC) – Respect for formal protected areas & protect RTE species – Move towards sustainable over time 2. Combined 1st, 2 nd & 3rd party due diligence systems, with certification/verification required in high risk situations 3. SME & small landowner realities require group or other “scale up” approaches, e.g. jurisdictions or landscapes (e.g. FSC Controlled Wood, Brazil & Colombia “municipios verdes”, etc.) 4. Given emerging economy (often producer countries) development patterns, increase focus on developing responsible & sustainable markets locally 16 The Rainforest Alliance works to conserve biodiversity and ensure sustainable livelihoods by transforming land-use practices, business practices and consumer behavior. 17 .
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