Annual Report 2008

10 G Street, NE Suite 800 Washington, DC 20002 www.wri.org ANNUAL REPORT 2008

Inside…

In Conversation with the Chairman and President

Seizing the Moment WRI’s Strategic Plan

Our Stories Top 10 Outcomes

Our Community

Board, Donors, and Staff

COP meeting: Stephanie Hanson Stephanie meeting: COP PAGE 12 PAGE

Both from Matthew Steil Steil Matthew from Both PAGE 11 PAGE

Indian crowd: Flickr/Nokes crowd: Indian PAGE 10 PAGE

Electricity wires: Jonathan Talbot Jonathan wires: Electricity PAGE 9 PAGE

Algae: Flickr/daveknapik Flickr/daveknapik Algae: PAGE 8 PAGE

China: Flickr/sherrattsam Flickr/sherrattsam China: PAGE 7 PAGE

Logs on Amazon: Flickr/loadletter Amazon: on Logs PAGE 6 PAGE

Pineapple boat: Florence Landsberg Florence boat: Pineapple PAGE 5 PAGE

Wind turbines: BrooksElliott/iStockphoto.com turbines: Wind PAGE 4 PAGE

Aloe ﬁ eld: Flickr/green.thumbs eld: ﬁ Aloe PAGE 3 PAGE PHOTO CREDITS PHOTO WRI at a Glance: Mission, Goals, Approach

MISSION APPROACH Th e World Resources Institute (WRI) is an environmental Everything WRI does is built on four key elements: think tank that goes beyond research to fi nd practical ways Q Focus on Results: we organize all our work to to protect the earth and improve people’s lives. Our mission produce powerful and practical solutions, strategies is to move human society to live in ways that protect Earth’s and tools, policies and partnerships. environment and its capacity to provide for the needs and aspirations of current and future generations. Q Analytical Excellence: we identify problems, drivers, The WRI logo represents a knot tying together the threads of natural economic incentives, and consequences to arrive at resource use and conservation, economic development, and social equity WRI has a global reach, working with more than 400 partners comprehensive, incentive-based, practical solutions. through research, capacity building, and institutional change. in 50 countries. Each of our projects contributes to one or more of four program goals: Q Partnerships: we work with scientists, governments, businesses, NGOs, and international institutions GOALS worldwide to create incentives and pressure for change. Q Climate Protection Protect the global climate system from further harm due to Q Communication: we foster change by disseminating emissions of greenhouse gases and help humanity and the our solutions and ideas to targeted audiences. VALUES natural world adapt to unavoidable climate change. In our day-to-day work we are guided by our core institutional values. Q Governance Empower people and support institutions to foster environmentally sound and socially equitable decision- Innovation: Independence: Urgency: Integrity: Respect: to lead change for a our eff ectiveness we believe that change honesty, candor, and our relationships are making. sustainable world, we depends on work that in human behavior openness will guide our based on the belief that Q Markets and Enterprise will be creative, forward is uncompromised is urgently needed to work to ensure credibility all people deserve respect. Harness markets and enterprise to expand economic thinking, entrepreneurial, by partisan politics, halt the accelerating and build trust. opportunity and protect the environment. and adaptive. institutional or personal rate of environmental allegiances, or sources of deterioration. Q People and Ecosystems fi nancial support. Reverse rapid degradation of ecosystems and assure their capacity to provide humans with needed goods and services.

On the Cover Environmental activists call for action during a demonstration at the UN Climate Change Conference, Bali, December 14, 2007. WRI’s climate experts are working at a high level to help shape these ongoing, and critically important international negotiations (see page 12). Photo credit: Jewel Samad/AFP/Getty Images

WRI’s Green Roof The rooftop of WRI’s headquarters in Washington, DC is now green, and houses a labyrinth. WRI collaborated on the project with the American Psychological Association (APA), the building owner. In Conversation

Q: How did WRI make a diff erence in 2008? JH: For the past few years we have been building relationships with the private sector on all issues related to sustainability. In 2008 we were able—through the U.S. Climate Action Partnership and other programs—to encourage the private sector to take a greater leadership role, which they did to signifi cant eff ect. JL: I would focus on advances in China and in Brazil, where WRI was able to use a very “wonky” entry point— greenhouse gas accounting—to raise a subject with businesses that we would have made little progress on if we had just come at them saying: “You should reduce greenhouse gas emissions.” Instead, by asking questions such as “how do you measure greenhouse gas emissions?” and “what are the opportunities there?” we helped initiate major voluntary steps by companies in Brazil and China to WRI President Jonathan Lash (left) and Chairman James A. Harmon measure, report, and reduce emissions.

Q: What obstacles and opportunities does the economic shared agenda on energy security and climate change, which crisis create for WRI? in turn enables a global climate change agreement on a JH: Th is is as challenging a crisis as our country has faced scale not seen before. I hope WRI will be able to contribute since the 1930s. I am concerned that even if the White uniquely to achieving each of those things. House is willing to act on environmental questions, it will be harder and harder to get Congress and the population Q: What is your message for 2009 to the WRI community— to support issues that appear long-term rather than what’s Board members, staff , partners, and donors? facing them today. JH: People are very anxious for leadership, to see a new JL: I see two silver linings, Jim. One is that government direction for the country and for the world, and the is back, and there is a willingness to consider regulation environment is a critical part of that. With WRI’s good that would have been out of the question 12 months ago. reputation and standing, we—Board members, partners, President-elect Obama can play on that skillfully to build staff , and donors—could all make a greater diff erence this support for initiatives he wants to take, including on coming year than has been possible for a long time. environment and energy. Secondly, because there is such JL: I think that is exactly right. Th e economic crisis has broad recognition that government funds have to be used subordinated partisanship to pragmatism, and that creates to stimulate the economy, and to create jobs, there is a new a very important moment for WRI. We have always been openness to spending on clean technology. carefully nonpartisan, non-ideological, and pragmatic. In recent years, Washington has been so divided that at times Q: What goals do you have for 2009? it has almost rendered our analytical partnering style less JH: WRI’s strength is that it is more than just U.S.-based, important. I think that now the analytical, problem-solving it is a world organization. All the things we work on are style is back and we have a very important role to play. increasingly dependent upon interaction and cooperation around the world. So moving forward with our new center and work in China will be very important in 2009. JL: My dream would be that the United States enacts domestic legislation in 2009 on climate and energy that James Harmon Jonathan Lash leads to a breakthrough with China in which we fi nd a CHAIRMAN PRESIDENT

WRI 2008 Annual Report 1 Seizing the Moment

WRI HAS ADOPTED A STRATEGIC PLAN FOR 20082012 Most importantly, after 25 years based solely in Washington, to steer our work at this crucial time in human history. Th e D.C., by 2012 WRI will establish a full-time presence in three issues we focus upon—climate change, ecosystem protection, key emerging countries—China, India, and Brazil. environmental governance, green markets, and sustainable Th ese economies are already among the ten greatest emitters transportation—have become ever more urgent. Yet, in the of greenhouse gases, and it is imperative that WRI maximize United States and around the world, the response of govern- our eff orts within their borders. Our fi rst overseas offi ce, in ments and key institutions has lagged. Beijing, opened in 2008. Both China’s government and pri- Th e urgent challenge for WRI is to help trigger the transforma- vate sector have welcomed WRI’s objective, analytical, and tive changes required to solve these environmental crises within collaborative approach. the short timeframe that scientists say the world must act. PROVEN APPROACH NEW FRONTIERS MANAGING FOR RESULTS FOCUS ON CHINA, INDIA, BRAZIL In implementing our strategic plan, WRI will build on our To this end, under our fi ve-year plan, we will: focus more rigor- strong focus on results. We defi ne these as signifi cant actions ously on results; expand our presence in key emerging countries; taken as a consequence of our activities and infl uence, by gov- emphasize communications to expand our reach and impact; and ernment agencies, corporations, policy-makers, scientists, or increase synergy and innovation among our programs. civil society. Our results or “outcomes” are generated through a highly focused system of clear goals and 3–5 year strategic objectives. Many are achieved in collaboration with WRI’s more than 400 partner organizations around the world.

OUR VIEW OF A SUSTAINABLE WORLD To inform our strategic plan, WRI conducted a comprehensive analysis of key global trends aﬀ ecting our work. Th is has led us to strengthen our focus on avoiding a climate catastrophe and reversing the accelerating degradation of ecosystems and their life-sustaining goods and services. It also identiﬁ ed the following paths to work toward our goals:

Taking advantage of the new multipolar world with its diverse centers of political and economic power. Engaging with an expanding global middle class, especially in Asia, whose decisions will shape our world’s future, while responding to the challenges of globalization including unprecedented consumption and widening inequality. Responding to the impacts of an increasingly urban world on the natural environment. Promoting convergence of new technologies for a sustainable, low-carbon world.

2 Strategic Plan

n 2002, Falk Weltzien and his siblings took over Cassio- catalyzed by New Ventures peia, his father’s small business selling household cleaning from angel investors, com- Iproducts in São Paulo. Inspired by their father’s enthu- mercial and development siasm for nature, they developed a new product line based banks, green funds, and on natural ingredients which they sold wholesale to super- venture capitalists exceeded markets. Th e family also used minimal production processes, US$158m. including hand-sticking labels, in order to hire more workers WRI’s New Ventures and keep the company’s environmental footprint light. Brazil program is run by In 2007–8, Cassiopeia’s fortunes blossomed when, with the Fundação Getulio Var- WRI’s help, it attracted new investment and customers, in- gas (FGV), a top business cluding the national U.S. organic chain Whole Foods Market. school in São Paulo, which During 2009, Weltzien hopes to see his products in 2,000 scouts out likely candidates for green investment including U.S. chain stores. Cassiopeia. Weltzien describes as “an invaluable experience” working with WRI and FGV on the company’s business plan Cassiopeia is one of 52 Brazilian companies mentored and and investment strategy. showcased by WRI’s New Ventures program, which also oper- ates in China, Columbia, India, Indonesia, and Mexico. New “Before that I hadn’t done any calculations about how to Ventures and its national partners help sustainable small and balance our books and so on,” he explained. “I took the busi- medium-sized businesses improve their business plans, strate- ness plan to a bank and got fi nancing to expand. I also took it gies, and operations and then match them with investors. to Whole Foods in the U.S. and in 2008 they started selling Businesses we help range from organic farms and ecotour- fi ve of our EcoPath cleaning products in 270 U.S. stores.” Be- ism to fi rms working on renewable energy, clean technology, tween 2007 and 2008, the company’s gross income doubled and green consumer products. In 2008, total investments to $3.3m Brazilian real (US$1.3m).

CHALLENGES AND NEXT STEPS Despite such individual successes, scaling up the specialized sustainable small and New Ventures has catalyzed US$158m medium business sector in emerging countries is a major challenge in the current investment climate. To maximize our impact, WRI will seek to attract more mainstream in- in investments and celebrates its vestment as we pursue our role as an honest broker between businesses and investors. 10th anniversary in 2009.

Our Stories 3 n the absence of federal climate legislation, states from WRI’s climate policy experts helped shape the design of this New York to Kansas and California have stepped into the pioneering system, facilitated negotiations on a fi nal agreement Ivacuum. between participating states’ energy and environment agencies, and provided technical support up to RGGI’s launch. With WRI providing critical technical and policy advice, three mandatory regional carbon trading markets are being es- We are playing a similar advisory and bridging role in the tablished to limit states’ greenhouse gas emissions, spur energy development of the two other regional cap-and-trade schemes. innovation, and create green jobs. Twenty-three U.S. states Th ese will be operational by 2012 and will have a wider reach and four Canadian provinces are participating, accounting than RGGI, covering multiple industrial sectors. Th e West- for over half the U.S. population and 80 percent of Canada’s. ern Climate Initiative includes seven western U.S. states and Seven more U.S. states are formal observers. (See map.) four Canadian provinces (with several Mexican states among observers). Th is economy-wide program would reduce green- In September 2008, history was made when the fi rst region- house gas emissions 15 percent from 2005 levels by 2020. Th e al cap-and-trade program in the United States—the North- Midwestern Greenhouse Gas Reduction Accord is a collabora- east and Mid-Atlantic Regional Greenhouse Gas Initiative tive eff ort among six U.S. states and Manitoba, Canada. Its (RGGI)—began formal carbon trading. Th e program caps parameters remain under development. carbon dioxide emissions from large electricity generating facilities across ten states and will reduce such emissions by 10 percent by 2018.

CHALLENGES AND NEXT STEPS WRI’s rationale for engaging states on climate change policy is based on their traditional role as laboratories for policy innovation. Th eir eﬀ ective “We were fortunate to have WRI’s assistance example can and should form the basis of a federal greenhouse gas emis- in bringing the participating states together sions market under the new Obama administration. WRI will work with around a program design for the Regional both state governments and federal policy-makers to communicate the Greenhouse Gas Initiative.” lessons learned from the state initiatives, and to help deﬁ ne the role for states within a federal climate change program. Jeanne Fox, President, New Jersey Board of Public Utilities

4 WRI 2008 Annual Report n many rural regions, poverty and the degradation of na- livelihoods. In areas with wetlands identifi ed as degraded or at ture’s bounty go hand in hand. In Africa, innovative map- risk, restoration or protection eff orts could help maintain or Iping techniques, supported by WRI, are helping govern- improve vital subsistence services for local communities. ments to both improve people’s lives, and protect the natural resources on which they depend. In Kenya, analysis of localized mapping data has enabled government agencies to pinpoint poverty hotspots and target CHALLENGES AND NEXT STEPS aid. For example, poverty maps have been used to distribute Using mapping to integrate poverty reduction and ecosys- US$475m from Kenya’s Constituency Development Fund tem protection eff orts off ers signifi cant benefi ts for people to needy villages. Previously distributed on the basis of pop- and nature in Kenya, Uganda, and beyond. ulation, more of these funds are now fl owing to neglected rural areas. Th e maps are also being used by the Kenya Water In Uganda, WRI will continue to work with government and Sanitation Program—a fi ve-year, US$65.3m eff ort sup- agencies on the development and allocation of specifi c ported by the Danish and Swedish governments, to improve funds for wetland management programs that also reduce access to safe water and sanitation for the country’s poorest poverty. During 2009 we will also develop localized maps communities. of Uganda that overlay poverty data with communities’ access to water and sanitation. In Uganda—whose citizens rely on wetlands for food and water, wood and fuel, livestock grazing, fi shing, and water WRI also plans to expand our poverty and ecosystems purifi cation—we have taken high resolution mapping tech- mapping work into Tanzania and to promote lessons niques a step further. Working with two government agen- learned from East Africa in other developing countries. cies, the Wetlands Management Department and the Bureau of Statistics, we overlaid poverty maps for the entire country with data on the state of health of local wetlands. “I congratulate WRI for committing itself to use its Th e resulting wealth of information can be fed into both na- incredible skills to produce maps and photographs tional and local poverty reduction and resource management plans. For example, in poverty-ridden areas with relatively that are outstanding, and that are going to change untouched fl oodplains or forest swamps, development eff orts the way we look at ecosystems.” could include generating new wetland-based services and Nobel Peace Laureate Wangari Maathai

Our Stories 5

hat do a multinational oil corporation and a natu- and energy businesses; and multinationals such as Alcoa, An- ral cosmetics chain have in common? Both Petro- glo American, and WalMart Brazil. bras and Natura are founder members of the Brazil W Th ese pioneers were recruited by WRI and our partners, GHG Protocol Program, South America’s fi rst national public Brazil’s Ministry of Environment, the Getulio Vargas Founda- registry of corporate greenhouse gas emissions, launched in tion (FGV), and the World Business Council for Sustainable May 2008 with help from WRI. Development. Each company will voluntarily log annual Brazil is one of the world’s ten biggest emitters of green- inventories of the greenhouse gases they generate, and receive house gases (GHG), generated mainly by agriculture and advice on strategies for reducing emissions. WRI facilitated forest clearance. With the country’s energy generation sources agreements between the government and businesses, and long dominated by hydropower shifting toward fossil fuels, its guided the program’s design process. During the pilot phase, national carbon footprint could further increase. through March 2010, our expert staff will train participating companies in registry and verifi cation systems and in report- Brazil’s government, however, is committed to taking action ing their GHG inventories. to counter climate change. One key initiative is the Brazil GHG Protocol Program, involving 27 diverse founding com- In May 2010, Brazil’s government plans to roll out the program panies, including national banking, food, retail, engineering, nationally, opening membership to any interested company.

CHALLENGES AND NEXT STEPS Deforestation in Brazil’s Amazon and Atlantic forests is accelerating, due to soaring world demand for soy products, and other development pressures. Slowing deforestation is now a major focus of international climate change negotiations. Tracking speciﬁ c sectors with signiﬁ cant “For Natura, participating in the Brazilian greenhouse gas emissions will lay the foundation for climate change GHG Protocol Program has been a great mitigation initiatives in Brazil. opportunity for improving our strategy of Over the next two years WRI and our partners will expand the training mapping emissions throughout the program and develop GHG accounting tools and training for agriculture and forestry. We will also use GHG inventory information from lifecycle of the company.” participating organizations to develop benchmarking data so that busi- Daniel Gonzaga, nesses can compare a location’s performance with comparable facilities. Research and Technology Director, Natura

6 WRI 2008 Annual Report Pankaj Bhatia, WRI’s Director, GHG Protocol, describes bringing our GHG Protocol program to China.

How signifi cant is China’s cement sector to global climate What diffi culties did you encounter? change? Working in a new country brings its own set of challenges— Five percent of global emissions of carbon dioxide (CO2), cultural or otherwise. One of the fi rst was to convey our the main greenhouse gas (GHG), originate from worldwide use of the word ‘protocol.’ Th e literal Chinese translation is cement manufacturing. China, the top cement producer, ‘treaty’ and it caused some confusion. It was also important has a 45 percent share. Some estimates suggest that between to gain our Chinese colleagues’ trust—by being open and now and 2030 China will erect half of all new buildings transparent, and by not dictating solutions but letting these worldwide. Moreover, the Chinese cement sector is composed evolve through a collaborative process. of energy ineffi cient small and medium producers. What comes next? How has WRI intervened in China’s cement industry? In the coming year, we will scale up training to cover China’s Th e fi rst step toward managing greenhouse gas emissions approximately 5,000 cement producers. We will also initiate is to measure them, which is how WRI’s GHG Protocol similar programs in other greenhouse gas-intensive sectors (GHGP) team is helping Chinese cement producers. We including oil and gas, petrochemicals, aluminum, iron and ventured into China in August 2006 and approached key steel, and the power sector. We anticipate this initiative will players about establishing comprehensive programs to reduce lead to national monitoring and reporting standards in these business sector emissions. Th e fi rst step was to understand sectors that can serve as a foundation for any future goals and the needs and concerns of Chinese policy-makers and targets set by China. businesses in order to fi nd a path forward rooted in China’s own objectives and approaches. Our fi rst breakthrough was an agreement with the China Business Council for Sustainable Development (CBCSD) to jointly design a voluntary corporate energy and GHG management program. “The GHG Protocol program can successfully steer the Subsequently, the China Building Materials Academy cement sector toward achieving energy effi ciency/ (CBMA) approached us to start a cement sector program. In conservation goals and serve as an example for other 2008, WRI and CBMA organized two workshops to train energy-intensive sectors.” about a hundred cement industry representatives in CO2 emissions accounting. Liu Ming, National Development and Reform Commission, China

Our Stories 7 armers in Pennsylvania are earning income by using less practices would generate most credits, and how much revenue fertilizer, and helping clean up the Chesapeake Bay in they would raise.” the process. F Peter Hughes and his clients are helping address a common Using NutrientNet, an innovative pollution credit online water resources problem in agricultural regions across the trading tool developed by WRI, farmers are adopting agricul- United States and worldwide. Nutrient pollution—also called tural practices that reduce nitrogen and phosphorus runoff eutrophication—is choking the life out of Chesapeake Bay. from their land. Th e nutrient reductions achieved are converted Nitrogen and phosphorus runoff has caused explosive algal into credits certifi ed by the Pennsylvania Department of En- growth, blocking out sunlight, consuming oxygen, and killing vironmental Protection. Th ese credits are then purchased by underwater grasses, fi sh, and other aquatic life. wastewater treatment plants in order to keep their nutrient NutrientNet is among a new generation of environmental discharge within state-imposed caps. management tools from WRI that stem natural resource deg- Peter Hughes, President of Red Barn Trading Company, an radation using the power of markets. Four Chesapeake Bay agricultural services consultancy in Lancaster, has facilitated states—Maryland, Pennsylvania, Virginia, and West Virginia— the certifi cation and sale of farmers’ credits attributable to will soon cap nutrient discharges from wastewater treatment 750,000 lbs. of nitrogen and 250,000 lbs. of phosphorus. plants and allow them to purchase nutrient credits from farm- “Th ere are 26 agricultural practices farmers can pick from to ers. NutrientNet has been implemented in Pennsylvania since reduce nutrient use,” he says. “Th ey just need the incentive. I 2007, and is currently being adopted by Maryland and West use NutrientNet’s diagnostic tools to calculate for farms what Virginia.

CHALLENGES AND NEXT STEPS Two-thirds of all rivers and coastal bays in the United States suﬀ er from nutrient pollution. Nutrient pollution credit trading, in its infancy in the United States, needs to be scaled up signiﬁ cantly. “I would recommend NutrientNet as a As a step in this direction, WRI is working with Maryland, Pennsylvania, universal tool for farmers and state and West Virginia state agencies to facilitate interstate trading using Nu- environmental protection agencies.” trientNet. Th e same tools are also directly applicable to other regions with severe nutrient pollution such as the “dead zone” where the Mississippi Peter Hughes, President, Red Barn agricultural meets the Gulf of Mexico. services consultancy, Pennsylvania

8 WRI 2008 Annual Report Shining a Light on Electricity Governance orldwide, 1.6 billion people still live without pines, South Africa, and Th ailand to promote open and ac- electricity. While provision is improving in many countable decision-making processes that will aid these coun- Wdeveloping countries, citizens often have little or tries’ transition to a fairer and cleaner energy future. no say over how or to whom electricity is provided and who In Th ailand, for example, EGI partners played a key role in pays for it. In Th ailand, for example, national energy plans recent energy policy reforms that will greatly improve gov- have prioritized large coal-fi red power plants. While this en- ernance of the sector. Th e development of the Th ai Energy ergy is needed in the capital, Bangkok, and other large cities, Industry Act, which was approved in December 2007, was these coal plants would be sited near fi shing villages. Yet, the prompted by public opposition to proposed privatization of people living in those villages, whose lives are likely to be the electricity sector. Th e law requires public participation in disrupted have been denied the opportunity to voice their electricity decision-making, and for the fi rst time appointed concerns. an independent regulator to champion consumer and citizen WRI’s Electricity Governance Initiative (EGI) works with interests. Th e Act seeks to promote fairness, transparency, and civil society partners in Brazil, India, Indonesia, the Philip- accountability in energy provision.

CHALLENGES AND NEXT STEPS Th e EGI is a joint eff ort by WRI and the grows over the health impacts of local air of electricity generation choices; and to Prayas Energy Group of India. Together pollution and the eff ects of global climate create better outcomes for consumers. we have developed a set of common indi- change. But there is enormous scope WRI and its partners are using our com- cators to measure “good governance” in to make better choices: to improve the prehensive indicator tools and analyses to the power sector. Conventional genera- energy effi ciency of existing systems; to help civil society, policy-makers, regulators, tion technologies such as coal-fi red pow- introduce more effi cient and less green- and other electricity sector players world- er stations are increasingly recognized house gas-intensive technologies; to al- wide to make these better choices, and to as problematic in the region, as concern leviate social and environmental impacts introduce a fairer, cleaner energy future.

Our Stories 9 WRI’s Institutions and Governance program promotes the right and ability of poor people to inﬂ uence environmental decision-making that affects their lives. Lalanath de Silva, director of The Access Initiative, explains two recent successes in Indonesia and Thailand.

Th e Access Initiative (TAI) is the largest global action How did the Access Initiative help shape Th ailand’s new network of its kind, operating in 45 countries. Can you Constitution? describe how it works? TAI Th ailand drafted language on environmental governance, By following four simple, tried and tested steps. First, we including the public’s right to be informed and consulted help to establish coalitions of civil society groups in countries about new development projects, which was enshrined in the where people have limited or no space to infl uence decisions new Constitution in December 2007. about natural resources; second, we equip them with tools to assess the state of access rights in their nation; third, they What diff erence have these laws made to the lives of the use these tools and identify gaps in laws, institutions, and poor and how will WRI build on its success? practices; and fourth, they engage their governments through Th e people of these countries now have legal rights to access evidence-based advocacy and collaboration. government information and participate in government decisions that aff ect their lives. Th is has strengthened their What role does WRI play? ability to gain livelihood benefi ts from natural resources such WRI was a founder member. We act as TAI’s global secretariat as land, forests, and water. and provide intellectual leadership and global fundraising. For them to actually use these rights is a further step, and our next challenge. Our main partners—the Indonesia Center What role did TAI play in Indonesia’s new Freedom of for Environmental Law, and the Th ailand Environment Information Act? Institute—are running awareness-raising and educational Th is Act is a milestone in Indonesia’s young democracy. workshops for civil society groups. Th rough these groups, Indonesia’s TAI coalition played a signifi cant role, using our we will reach communities aff ected by development, such as diagnostic tools to identify gaps in the law, promoting legal dams or mining projects, and provide them with practical reforms, and participating in the lawmaking process. Specifi c tools to exercise their new rights. provisions they helped develop included maximum access to information, full and accurate information disclosure, whistleblower protection, and dispute resolution.

10 WRI 2008 Annual Report tretching across six countries, the Congo Basin contains the world’s second largest contiguous tropical rainforest CHALLENGES AND NEXT STEPS Sand hosts a wealth of biodiversity. WRI has helped fi ve Central African nations to de- As global demand grows for forest resources, Central African velop and adopt such forest data and management nations have increasingly recognized the importance of better tools. In 2009 we will also begin work in Equato- managing these valuable natural assets. WRI works with gov- rial Guinea. Moving forward, the challenge is to ernments and civil society in Cameroon, the Central African persuade governments to embed these tools in daily Republic, Gabon, the Republic of Congo, and the Democratic decision-making processes so that they produce Republic of Congo to help them achieve this goal. results where they matter—on the ground. WRI In the Republic of Congo, forests cover almost 65 percent of will also work with governments on developing a national territory, and forestry-related revenue is second only to region-wide approach to managing the Congo petroleum. Since 2004, WRI has helped collect and digitize data Basin’s forests, on which the livelihoods of 30 mil- on all of the country’s forest concessions, logging roads, and pro- lion people depend. tected areas for the fi rst time. Our GIS-based mapping tools, developed in partnership with the Ministry of Forest Economy, and Friends of the Environment—a Congolese NGO—have enabled improved management of forest data and better forest protection. Using our innovative and user-friendly Interactive Forestry Atlas for Congo the government is now better able to control illegal logging, enforce forest laws, build local capacity, and promote transparency and accountability in the forest sector. Government employees now have access to a harmonized set of digital forest data making it easier to keep track of logging titles. Congolese offi cials can also use GIS data to better priori- tize limited resources to combat illegal logging—pinpointing problem areas remotely and then dispatching fi eld units to in- vestigate. In addition, the Congolese government now requires timber companies to submit requests for logging concession allocations and annual timber harvests using a GIS platform—a substantial improvement in effi ciency and transparency over the previous paper-based system.

Our Stories 11

Jonathan Pershing, Director of WRI’s Climate, Energy, and Pollution Program and Rob Bradley, Director of International Climate Policy at the UNFCCC meeting in Poland in December 2008.

n December 2009 the world’s nations are due to CHALLENGES AND NEXT STEPS sign a new global climate treaty to counter global Iwarming. It will not be easy for negotiators to reach agreement by December, when governments aim to write the new treaty Th e stakes could not be higher. Th e impacts of a warming in Copenhagen, Denmark. world are already apparent within U.S. borders, from drought in the Southwest to melting Arctic ice. Action by all nations One major challenge is the mobilization of adequate fund- to reduce their greenhouse gas emissions is critical if we are to ing from developed countries to support climate mitigation keep rising temperatures within the limits to which humanity actions in the developing world, whose emissions are rapidly can adapt. climbing. Th e rest of the world is also unlikely to commit to a new treaty without leadership from the United States, the For several years, WRI’s climate experts have worked at a world’s largest economy and one of the biggest per capita high level to help shape the negotiations on an agreement to emitters of greenhouse gases. succeed the Kyoto Protocol. WRI’s expert climate policy team will work both in the Th e Bali Action Plan, agreed by 187 nations including the international arena and in the United States to overcome United States in December 2007, provides the roadmap for the such hurdles. We will help to: formulate workable structures new treaty. It introduced the concept, championed by WRI, and mechanisms for both adaptation and mitigation within of emerging nations taking “nationally appropriate actions” to the climate agreement; design policies to protect the world’s cut emissions in return for fi nancial and technology aid. Under forests as carbon sinks; and work with business to open up the Kyoto Protocol such countries, including China and India, new investment and technology for a low-carbon future. In were not bound to act to mitigate their climate impacts. WRI the United States we will work with members of Congress to and its developing country partners now have a central role design a robust domestic climate policy for the new adminis- in designing practical mechanisms through which developing tration to bring to the table in Copenhagen. countries can take specifi c, verifi able actions to reduce their greenhouse gas emissions with developed country support. Th e world simply cannot aff ord for this eff ort to fail.

12 WRI 2008 Annual Report Our Community WRI launched its new Corporate Consultative Group (CCG) in September 2008 with a dinner and donors “mindshare” meeting. The CCG is a vehicle for deeper, two-way engagement between WRI and the corporate community. CORPORATIONS

Strategic Relationships Pfi zer, Inc. Interface, Inc. Supporters Alcoa Foundation SC Johnson Intuit Angeleno Group BP and BP Foundation Shell International JBS International Arete Corporation Caterpillar Foundation Toyota Motor Corporation Johnson & Johnson Family of Avon Products Foundation Citigroup and Citigroup Wal-Mart Stores Companies Baker & McKenzie Foundation Weyerhaeuser Company JPMorgan Chase Foundation Bambu Goldman Sachs Wheels, Inc. Kimberly-Clark Corporation Bristol Myers Squibb Company NewPage Corporation Levi-Strauss & Company Capital Group Companies SC Johnson Program/Project Partners Michelin North America Climate Clean Shell International and Shell Advanced Micro Devices (AMD) Newry Corporation Edison International Foundation Alticor News Corporation Firsthand Capital Management Toyota Motor North America, Inc. Bristol Myers Squibb Company Nike, Inc. General Atlantic Service Company BT Americas, Inc. Novartis Corporation General Electric Company Corporate Consultative Group Deutsche Bank Pacifi c Gas and Electric Company Hydrogen Energy International Members Th e Dow Chemical Company Pactiv Corporation IBM Akzo Nobel DuPont Company Pfi zer, Inc. Invention Machine Alcoa Eastman Kodak Company PricewaterhouseCoopers Panasonic Corporation of North BP eBay Rabobank America Citigroup, Inc. EKO Assets Management Partners San Juan Ventures Sempra Energy Constellation Energy Group ESRI Siemens Corporation Universal Studios DuPont Company FedEx Corporation Staples, Inc. Wellington Management Company Eastman Kodak Company GE Foundation Starbucks Coff ee Company Weyerhaeuser Company FedEx Corporation General Motors Tetra Pak International Foundation Goldman Sachs Georgia-Pacifi c Unilever Johnson & Johnson Google United Parcel Service (UPS) JPMorgan Chase Hewlett-Packard Company United Technologies Corporation Monsanto Company HSBC Bank Volvo Group North America NewPage Corporation IKEA Wal-Mart Stores News Corporation Intel Corporation

DONOR PROFILE: BP ENGAGING BUSINESS, BUILDING PARTNERSHIPS

Working with business is a and sustainable transportation. Paul Jefferiss, BP sectors and on CCS research. This type of inclusive critically important part of WRI’s director of environmental policy, calls the partnership approach and sophisticated work is what Jefferiss and mission-driven strategy to seek a valuable one “because it provides us with access to BP describe as most appealing about the company’s solutions to environmental and genuinely insightful and knowledgeable people.” partnership with WRI. development challenges. Since During 2008, ﬁ nancial support from BP was also For a global company like BP, the opportunity for staff its founding in 1982, the Institute worldwide to tap into the activities of WRI through has worked around the world with instrumental in helping WRI develop a set of recommendations and best practices for those the Institute’s Corporate Consultative Group is also Paul Jefferiss, companies of all sizes, in every an important value proposition. The company’s sector. interested in the emerging carbon capture and storage Director of (CCS) technology. Can CCS help solve the climate membership in the Group underpins a long-term Environmental For almost a decade, WRI has crisis? These guidelines offer a strong technical commitment to a two-way exchange of ideas and Policy, BP partnered with BP, crafting roadmap to help answer this key question. To develop insights between strategists and analysts across the a strategic relationship that the guidelines, WRI brought together a diverse group two institutions. consists of multiyear plans to work together on of over 80 stakeholders including representatives from WRI is also enriched by this exchange, and its work shared issues. In 2008, these included U.S. and academia, business, governments, and environmental and funding base is strengthened by the long-term international climate policy, biofuels, energy security, groups, as well as experts working in industrial commitment and vision of the partnership.

Our Community 13 DONOR PROFILE: DORIS DUKE FOUNDATIONS CHARITABLE FOUNDATION Abramson Family Foundation Th e John Merck Fund SPEEDING THE Alexander Foundation Preston R. and Carol Smith Miller Fund TRANSITION TO A CLEAN Ray C. Anderson Foundation Joyce S. Mills Family Trust ENERGY ECONOMY AVINA Foundation Charles Stewart Mott Foundation Sybiel B. Berkman Foundation Th e Curtis and Edith Munson Foundation The Doris Duke Charitable Th e Samuel P. Black Family Fund of Th e Erie Th e New York Community Trust Foundation launched in Community Foundation Norwottack Charitable Trust 2007 a multi-million dollar Helen Brach Foundation Oak Foundation Climate Change Initiative Ed Henry, President, Cabell and Shirley Brand Charitable Lead Trust Th e Ocean Foundation Th e Keith Campbell Foundation for the Open Society Institute designed to put low-carbon Doris Duke Charitable Environment Oppenheimer Brothers Foundation technologies on a fast track Foundation to becoming affordable Catto Charitable Foundation Gilman Ordway Charitable Lead Trust norms, rather than expensive Chino Cienega Foundation Th e David and Lucile Packard Foundation alternatives. Climate Works Foundation Th e Pew Charitable Trusts Cox Family Fund Polsky Foundation “With a new Administration and a new Congress, Michael R. and Elsa S. Deland Fund Th e Prospect Hill Foundation attention to climate change policy is ramping up,” Dolphin Foundation Robertson Foundation explains Ed Henry, the Foundation’s president. “Our Louisa Copeland Duemling Charitable Lead Rockefeller Brothers Fund goal with the Climate Change Initiative is to ensure Trust Rockefeller Foundation that the best possible policy options are on the table, Doris Duke Charitable Foundation Ruckelshaus Charitable Fund thoroughly researched and ready for policy-makers Th e Eacho Family Foundation Th e Salon Family Foundation to consider.” Energy Foundation Fannette H. Sawyer Fund Richard and Rhoda Goldman Fund Sea Change Foundation WRI was among the fi rst grantees from the Climate Horace W. Goldsmith Foundation David K. Smoot Sustainability of Life on Earth Change Initiative. Over the last two years, with Greene-Milstein Family Foundation Fund the Foundation’s support, we have undertaken Harmon Foundation James Gustave Speth Fund for the Environment pioneering work in analyzing the emissions Th e Henry Foundation Sunstone Fund of Th e Minneapolis Foundation implications of climate policy options. One notable Th e William and Flora Hewlett Foundation Mark & Amy Tercek Foundation outcome was a clear visual depiction of the Hunt Alternatives Fund Tides Foundation GHG trajectories of legislative proposals, which I Do Foundation Town Creek Foundation allowed for an easy comparison and assessment Th e J & L Foundation Emily Hall Tremaine Foundation of different policy approaches. We also helped Mitchell Kapor Foundation Trust for Mutual Understanding establish a mandatory federal GHG registry, and Lawrence & Dana Linden Trust Turner Foundation produced technical analysis and a roadmap for Th e Libra Foundation Wallace Genetic Foundation Linden Trust for Conservation Wallace Global Fund policies that support both energy security and Lookout Foundation Adam J. Weissman Foundation climate goals. Ernest Lowenstein Foundation West Hill Foundation for Nature “With its sound research, effective Th e John D. and Catherine T. MacArthur Westwind Foundation communications, and nonpartisan reputation, Foundation Whalesback Foundation WRI has helped inform the climate debate in Marisla Foundation Washington,” says Ed Henry. “Together we will continue to support the analysis of key policy options so that federal policy-makers have the information they need to develop legislation that can move our nation quickly and effi ciently to a new, clean energy economy.” The John D. and Catherine T. MacArthur Foundation awarded WRI a grant of $1.5 million, over three years, to advance the Institute’s communications efforts. The award focuses on WRI’s use of technology to engage its many partners and communities of infl uence throughout the world. The funds are supporting innovative and leading-edge projects, underwriting key staff capacity, and fostering an organization-wide culture of communicating for optimal impact on social and environmental issues.

Pictured: Jonathan Fanton, President, The John D. and Catherine T. MacArthur Foundation

14 WRI 2008 Annual Report INDIVIDUALS We appreciate the support of all our individual donors. Due to space limitations in this annual report, however, we are listing donors whose gifts are larger than one hundred dollars.

Nazir Ahmad Jodene Eikenberry The Global Impact Fund is a special way for individuals, companies, and foundations David C. Aldrich Mohamed and Patricia El-Ashry to support WRI. Acting much like an internal venture fund, it directs fi nancial Raymond C. Alexander Christine Elias resources to scale up critical initiatives; help China, India, and Brazil green their Richard Alper John Lemoyne Ellicott economies; and fi nance innovation at WRI. WRI launched the Global Impact Fund in Allan Alson and Sue Ann Glaser Alice F. Emerson May 2008 with a dinner in Los Angeles hosted by Daniel Weiss and Abby Wolf-Weiss Anonymous Nancy Emmons and featuring the Honorable Al Gore. Mark Augenblick Andrew Escoll and Tina Snider Photo shows Zeb Rice, Daniel Weiss, Jeff Miller, Jonathan Lash, Al Gore. Andrew Aulisi Marantha Espeland Duncan Austin Jill Feasley and Kurt Lawson Merribel Ayres Claudia Fenelon Harriet and Bruce Babbitt Tracey I. Fine Elizabeth Bahs-Ahern Craig and Diane Fischer Benjamin M. Baker Vivian Fong GLOBAL IMPACT FUND Geoff rey W. Baldwin Justin D. Fortier Doug Barker Tom Fox Viridian Investors Supporters Steven Barker Norio Fukao Angeleno Group Atlas Family Foundation Rich Barnett E. Marianne Gabel Alison and David Blood Hattie and Bruce Babbitt Gail and Charles Bennett Roy Garrigus Alan and Daveen Fox Lee Bailey John R. Bermingham Th eodora Gauder General Electric and Universal Wendy Benchley David Gergen Studios Gail Berman-Masters Afsaneh Beschloss News Corporation Gordon Crawford Albert Beveridge Robert W. Gillespie TAUPO Fund Th e Laurie David Foundation Linda Black Jamshyd N. Godrej Dennis Deconcini Mr. and Mrs. Robert O. Blake Sharon Goldwater Investors Craig Fox Parker W. Borg Christopher Gootkind Agatha Barclay Stanley Gold Karen J. Boyd Pamela Green Lisa and Josh Bernstein Goldsmith Family Foundation Peter Breault Arthur and Leslie Greenberg Adelaide P. Gomer Karen and William Boyd Paul Brillinger Marni Gutkin Denis A. Hayes Bristol-Myers Squibb Company William B. Brown John C. and Chara C. Haas Climate Clean Lookout Foundation Karin Brownstein David Hackett Timothy J. Disney James McDermott Ridgway M. Hall, Jr. Edison International Al Meyerhoff Judith M. Buechner Carol and Moise Emquies Zazi Pope and Jack Cairl Robert Burt John and Nancy Hammond Alan and Cindy Horn Adele Simmons Laurie N. Burton Leslie Hand Hydrogen Energy International Elizabeth Steele Luther and Marsha Carter Craig Hanson Edward Lazarus and Amanda Moose Mrs. Samuel Reid Sutphin Douglas Caulkins John A. Harris IV Hyman Levine Family Foundation Gail Zappa Charles Cerf and Cynthia Dunbar Laurence Hausman Th e Musk Foundation Nathaniel Chamberlin Denis and Gail Hayes Ronald and Jane Olson Foundation Tracey Chase Urs Hoelzle Pacifi c Gas & Electric Th omas Coleman Gail Hoerauf-Bennett Barry and Lea Porter Daniel P. Hofer Alison Sander Elizabeth Cook Sempra Energy Pamela Cosby Julie Hotchkiss Michael J. Shannon David Cushing David T. Hung Sam Shine Foundation Kevin W. Davis Sarah F. Hunnewell Th e Honorable George Shultz David and Josephine de Give Betty T. Hunter Southwest Regional Council of Tatyana V. Deryugina Margaret Inokuma Carpenters Mike Des Tatsushi Izuta Janet and Tom Unterman Masada Disenhouse Sasha Jack Werner Family Foundation April Johnson Th e Winnick Family Foundation Diane and Lowell Dodge Suzanne Duley Ralph and Bonnie Johnson Michael Eckhardt Mr. and Mrs. Charles R. Jorgensen

Our Community 15 INDIVIDUALS (continued) DONOR PROFILE: STEVEN M. ROSS AND JAMSHYD N. GODREJ NEW FRONTIERS: CHINA AND INDIA Scott Juntti Barrie Ringelheim China and India are fast-growing countries Steve Kaplan Kip Robbins attempting to modernize at high speed. James Keith Dennis Rodrigues Decisions taken by their governments, Dennis Keller Stephen M. Ross businesses, and consumers are already having Brooks M. Kelley Shane Runquist a profound effect on the global environment. Dr. Donald Kennedy John and Virginia Sall Acting on the recommendation of its Board of Shad Khan Alison Sander Directors, WRI is committed to establishing a William A. Krug, Jr. Roger and Vicki Sant full-time presence in these critically important Helen P. Ladd Brian Savarino nations. Jonathan Lash Blake A. Schaefer Two WRI board members are helping to make this Arthur A. Levin Valerie A. Sellers vision a reality. A generous planning grant from Karen and John-Marc Levy Hillery Simmons Stephen M. Ross enabled the Institute to develop David Lipson Edith and Bruce Smart a business plan for an expanded program and Jeff Logan Dirk Smith Steven M. Ross, Chairman presence in China, which led to the opening of Gretchen Long Rick Mayo Smith and CEO, Related Cos. our 1,500 square-foot Beijing offi ce in October Th omas E. Lovejoy III Stephen C. Smith 2008. Mr. Ross is the Chairman and CEO of Jay McAllister Adam Sonfi eld Related Companies, a real estate fi rm with a Mr. and Mrs. Bruce McLeod Haluk Soykan growing commitment to green building. Through Stephen and Joann Manger Elissa Spelman his expanding business in China and investment Jan and Lois Mares Benjamin F. Stapleton III in WRI, Mr. Ross hopes to play a role in helping Adrienne Mars Sunny Stastny China build a sustainable future. Wilhelm M. Merck Peter Steven and Liz Segal Carolyn and William Lee Meronek Emma Stewart Jamshyd N. Godrej provided to WRI a 1,200 square-foot furnished offi ce suite within the Robin G. Micheli Joe and Anne Taranto Godrej Group corporate headquarters in Mumbai. Mark B. Milstein Dr. Janice Teal This now houses the India operation of WRI’s Peter Model and Marjorie Russel Glenn and Ann Th omas EMBARQ Center for Sustainable Transport. Mr. George G. Montgomery, Jr. Joan E. Th omas and Godrej is Chairman of Godrej & Boyce Mfg. Co. Mr. and Mrs. Kenneth Mountcastle Lee B. Th omas, Jr. Ltd., one of India’s largest engineering and A.J. Mowry Lee M. Th omas consumer products companies. An outspoken Cassandra Murphy Mr. and Mrs. Russell Train advocate of making India a global leader for Robin and Mary Claire Murphy Glenn Trewitt and Lucy Berlin green business, he also chairs the Confederation John Nay Dan Tunstall of Indian Industry Sohrabji Godrej Green David Ness Jory and Tracy Twist Business Center. The Center is housed in a LEED William Neukom Laura D. Tyson Platinum demonstration building—the fi rst of Matthew Nimetz Jim Upchurch Jamshyd N. Godrej, its kind in India, and the greenest building in the Heidi Nitze Scott Utzinger Chairman, Godrej & Boyce world when it was fi rst rated. Kimberly J. Noble Jean van der Tak Mfg Co. Ltd. George L. Ohrstrom II Robert Vernon Ronald and Jane Olson Emily V. Wade Rebekah Paulson and Mark Pierson Felicia Walker David J. Perlstein Dr. Diana H. Wall Th omas A. Peterson Mrs. Michael A. Walstad Carol Pfi ster Chris Wanha Dave and Ann Phillips Keith White Victoria A. Pierce Ann M. Williams Vincent Pietropaolo Mr. and Mrs. Sheldon Willner Michael Polsky Megan L. Winter Mrs. Edward Pope David Wright Julie K. Rayfi eld Xiaofeng Xia Joan and Robert Rechnitz Amy Yates Dayle Reilly Cody Zindler Libby Richman

16 WRI 2008 Annual Report DONOR PROFILE: NETHERLANDS MINISTRY OF FOREIGN AFFAIRS GOVERNMENT AND MULTILATERAL CONTINUITY PAYS ORGANIZATIONS The Dutch Ministry of Foreign Affairs, through its development cooperation, invests more than Th e Province of British Columbia four billion euros a year to tackle global poverty. European Commission Recently, the Ministry has enhanced its policy European Parliament focus on economic growth and equity, and on French Ministry of Foreign Aff airs sustainability, climate and energy. German Agency for Technical Cooperation (GTZ) Inter-American Development Bank With Dutch support, WRI has achieved International Finance Corporation remarkable results in these areas: Irish Department of Foreign Aff airs (Irish Aid) strengthening forest agencies in developing Netherlands Ministry of Foreign Aff airs countries to better assess and manage their Norwegian Ministry of Foreign Aff airs resources; helping countries open up the Royal Danish Ministry of Climate and Energy channels of information on environmental Royal Danish Ministry of Foreign Aff airs (Danida) decision-making; guiding and energizing Swedish International Development Cooperation Agency (Sida) the international community towards a new Swedish International Biodiversity Programme (SwedBio) Renee Jones-Bos, international climate treaty. United Kingdom Department for International Development Netherlands Ambassador United Kingdom Foreign and Commonwealth Offi ce to the United States Funding from the Ministry of Foreign Affairs United Nations Development Programme supports WRI’s programs in developing United Nations Environment Programme countries, thereby empowering people and United States Agency for International Development (USAID) institutions to achieve environmentally sound United States Department of Agriculture and socially equitable development. Meanwhile, United States Department of the Interior the Ministry draws on WRI’s rigorous and United States Department of State objective analysis to inform Dutch policies on United States Environmental Protection Agency energy and climate. United States Fish and Wildlife Service USAID India “WRI is a great place to go for ideas and USAID Kinshasa solutions,” says Netherlands Ambassador State of Washington Department of Ecology to the U.S. Renee Jones-Bos. “The Institute Wisconsin Department of Natural Resources is in the forefront in shaping US climate Th e World Bank policy, leverages millions of dollars worth of investments in sustainable enterprises in key emerging economies, and works with major financial institutions to ensure that environmental risk and opportunities are properly understood and reflected in investment allocations. We look forward to continuing our fifteen year partnership.”

OTHER ORGANIZATIONS ARD, Inc. Institute for Financial Management and Research Pinchot Institute for Conservation Bipartisan Policy Center Institute for Global Environmental Strategies UNEP GRID-Arendal Brookings Institution Kalispel Natural Resources Department West Virginia University Bucco Reef Trust Lake Michigan Air Directors Consortium Western Governors Association Th e California Climate Action Registry Midwestern Governors Association World Business Council for Sustainable Confederation of Indian Industry Th e Nature Conservancy Development e-Parliament Pact, Inc. World Economic Forum Greenhouse Gas Management Institute Peterson Institute

Our Community 17 CHAIRMAN OF THE BOARD Aditi Kapoor Fellow, Leadership for Environment and Development James A. Harmon (LEAD); independent journalist and media/development Chairman, Harmon & Co.; former President of the Export- Board consultant, India Import Bank, United States Jonathan Lash of VICE CHAIR President, World Resources Institute, United States Harriet (Hattie) Babbitt Preston R. Miller, Jr. Former U.S. Ambassador to the Organization of American Partner, The Tremont Group, LLC, United States States, United States Ngozi Okonjo-Iweala Directors Managing Director, The World Bank, United States; CHAIRMAN EMERITUS former Minister of Finance, Government of Nigeria, Nigeria William D. Ruckelshaus Strategic Director, Madrona Venture Group; former James W. Owens Chairman & CEO, Caterpillar, Inc., United States Administrator, U.S. Environmental Protection Agency, United States Michael Polsky President and Chief Executive Ofﬁ cer, Invenergy, MEMBERS United States Alice F. Emerson (Vice Chair Emeritus) C.K. Prahalad President Emeritus, Wheaton College, United States Harvey C. Fruehauf Professor of Business Administration, University of Michigan Business School, United States Roberto Artavia President of VIVA Trust, Costa Rica, Costa Rica Qian Yi Professor, Department of Environmental Engineering, Gay Barclay Tsinghua University (Beijing), China Founder and Board Member, PAVA Foundation, United States Theodore Roosevelt, IV Managing Director, Barclays Capital, United States Frances G. Beinecke President, Natural Resources Defense Council, Stephen M. Ross United States Chairman and CEO, Related Companies LP, United States

Afsaneh Beschloss Alison Sander President and CEO, The Rock Creek Group, United States Globalization Topic Advisor, Boston Consulting Group, United States Antony Burgmans Former Chairman, Unilever N.V. and PLC, José Sarukhan The Netherlands Professor, Institute of Ecology, National University of Mexico (UNAM) and National Coordinator, Mexican Fernando Henrique Cardoso Commission on Biodiversity (CONABIO), Mexico Former President of Brazil James Gustave Speth (top image) Elizabeth Cook, WRI Vice President for Institu- Jessica Catto Dean, Yale School of Forestry and Environmental Studies; President, Crockett Street Management, LLC; President, former Administrator, United Nations Development tional Strategy and Development, and WRI Vice Chairman Elk Mountain Builders, Inc., United States Programme; Founder and former President, World Hattie Babbit Resources Institute, United States Robin Chase (joined January 2009) (bottom image) WRI Director José Sarukhan and Janet Co-Founder & Former CEO, Zipcar; CEO, GoLoco.org, Ralph Taylor Ranganathan, WRI Vice President for Science and Research United States Founding Chair, Global Action Network Net, United States Leslie Dach Lee M. Thomas Photos taken at the opening reception of the green roof with Executive Vice President, Corporate Affairs and Chairman, President and Chief Executive Ofﬁ cer, Rayonier, labyrinth at WRI’s headquarters. WRI collaborated on the Government Relations, Wal-Mart Stores Inc., United States United States project with the American Psychological Association (APA), the building owner. Jamshyd N. Godrej Todd S. Thomson Chairman and Managing Director, Godrej & Boyce Mfg. Founder & CEO, Headwaters Capital LLC, United States Co. Ltd., India Diana H. Wall Honorable Al Gore Director, School of Global Environmental Sustainability, Chairman of Generation Investment Management, London; Professor of Biology & Senior Research Scientist, Natural and former Vice President of the United States Resource Ecology Lab, Colorado State University, United States Denis Hayes President, Bullitt Foundation, United States Daniel Weiss Co-founder and a Managing Partner, Angeleno Group, Chen Jining United States Professor and Executive Vice President, Tsinghua University (Beijing), China

18 WRI 2008 Annual Report WRI welcomed four new members to its Board of Directors

Dr. Roberto Artavia is President of VIVA Dr. Chen Jining is Professor in Trust, an organization that combines in a single Environmental Engineering and Executive strategy investments in productive endeavours, Vice President at Tsinghua University, China. particularly in forestry and fair trade, with Professor Chen holds an honorary fi rst philanthropic activities. Th e latter focus on degree in Environmental Engineering from the promotion of leadership, innovation, and Tsinghua University (1986) and a PhD in the formation of networks in Latin American organized civil society. Environmental System Analysis from Imperial College, London Dr. Artavia is also President of Fundación Latinoamérica Posible, a (1992). His research interests include environmental systems analysis private not-for-profi t organization that promotes corporate social and integrated assessment, water resources and environmental policy. responsibility and sustainable development in the region’s productive He is Deputy Chair of China’s National Environmental Science private sector. & Technology Committee, and Vice President of the National Environmental Science Association. He is also a board member From 1999–2007 Dr. Artavia served as President of INCAE Business of the Chinese Environmental Foundation as well as a number of School, a private, not-for-profi t international school of business with other scientifi c committees, professional associations, and advisory operations in 12 Latin American countries. INCAE was ranked for councils related to water and the environment. He also sits on several ten consecutive years among the top three business programs in Latin environmental journal editorial boards, and has published over 200 America by both the Financial Times and America Economía, and papers, books, chapters, and monographs. Dr Jining owns a number among the world’s top 10 international business programs by the Wall of registered environmental software and patents, and has won several Street Journal. scientifi c prizes for his work. Dr. Artavia is the strategic advisor for the Panama Canal Authority; Grupo Nación, the largest media group in Costa Rica; Toyota in Robin Chase is the co-founder and former Costa Rica and México; the ORREDES Foundation in Northwestern CEO of Zipcar, an innovative car sharing Argentina; FUNDESA, the Guatemalan Foundation for Economic service, and is currently the CEO of Development and many other profi t and nonprofi t organizations in GoLoco.org, a venture combining online the region. In 2007 the governments of Panama, Guatemala, and carpooling and social networking. She is also Nicaragua awarded him the highest civilian merit orders allowed by founder of Meadow Networks, a transportation their respective governments. consulting fi rm, and maintains a blog—Network Musings—on the topics of climate change, transportation, and wireless networks. Daniel Weiss is co-founder and Managing Ms Chase has been frequently featured in the major media including Partner of Angeleno Group LLC (“AG”), a Los the Today Show, Th e New York Times, National Public Radio, Angeles-based private equity fi rm focused on Wired, Newsweek, and Time magazines, as well as in several books high-growth investments in the energy sector. on entrepreneurship. She has received many awards, including the Prior to the formation of AG, Mr. Weiss was Massachusetts Governor’s Award for Entrepreneurial Spirit; Start-up an attorney at O’Melveny & Myers in Los Woman of the Year; Business Week’s Top 10 designers; Fast Company’s Angeles, working in the fi rm’s mergers and acquisitions, international Fast 50 Champions of Innovation; technology and innovation and high technology practice groups. He represented multiple Global awards from Fortune, CIO, and InfoWorld magazines; and numerous 1000 clients, including utilities and energy-related companies, in a environmental awards from national, state, and local governments and wide array of private equity and corporate fi nance transactions. organizations. Mr. Weiss also has a signifi cant history of involvement in government, She graduated from Wellesley College and MIT’s Sloan School regulatory, and public policy entities that deal with the energy sector, of Management, and won the competitive Loeb Fellowship at the including work experience in the White House and the United States Harvard Graduate School of Design. Congress. Additionally, he has lectured and published articles on the topics of law, business, and public policy. Mr. Weiss currently or recently has served on boards or public commissions for several nonprofi t and government organizations. He holds a J.D. from Stanford Law School, an M.A. from Stanford University, and a B.A. from U.C. Berkeley.

Our Community 19 ACCESS AND GOVERNANCE CLIMATE, ENERGY, AND TRANSPORT WRI Access Initiative: Th e largest network in the Architecture of Climate Agreements: WRI world dedicated to ensuring that citizens have works with key governments to shape the the right and ability to infl uence decisions post-2012 climate agreement. We will about the natural resources that sustain their build governmental and nongovernmental Projects communities. constituencies supportive of policy and action. EarthTrends — The Environmental Information Biofuels Production and Policy — Implications Portal: Infl uences policy and research with a for Climate Change, Water Quality, and At a Glance comprehensive online collection of data and Agriculture: Seeks to ensure that energy analysis about the environmental, social, and and agricultural policies are as sustainable economic trends that shape our world. as possible given increased pressure for agricultural energy production, and to Electricity Governance Initiative: Works with direct development of the biofuels industry sector decision-makers and civil society to toward those technologies that are most promote transparency, accountability, and environmentally sustainable. public participation in the electricity sector. Business Engagement — Green Power Market Equity, Poverty, and the Environment: Seeks Development Group and U.S. Climate Business to reduce poverty and promote sound Group: Leverages the private sector to scale-up environmental management by ensuring deployment of renewable energy and energy equitable access to ecosystem goods and effi ciency technologies through technology services and fair distribution of natural deployment and policy support. resource benefi ts. Carbon Capture and Sequestration (CCS): Governance and Forests Initiative: Encourages Develops solutions to the policy, regulatory, sustainable management of forests and helps investment, environmental, and social reduce deforestation and related emissions challenges associated with CCS demonstration under the UNFCCC by providing civil and deployment in key coal-consuming society, government, industry, climate policy- countries with current focus on the United makers, and other actors with a framework States and China. for assessing governance of forests, and incentivizing improvement. China and the Climate Change Challenge: A collaboration with Chinese partners to International Financial Flows and the accelerate climate change mitigation in the Environment: Works to improve the social and context of Chinese energy and economic environmental performance of public and development and, in doing so, address one private IFIs by holding them accountable to barrier to U.S. re-engagement in international their investors, to donor countries, and to climate action. the communities that are impacted by their investments. ClimateTrends: Provides access to information and analysis tools on global climate change World Resources Report: Helps shape the that help support future policy decisions made environment and development debate by under the U.N. Climate Convention, in the providing governments, civil society, donors, United States Congress and states, and in and the private sector with new thinking and other forums. analysis on the environment-development nexus. Developing Country Actions (DCA): Designs incentives and international policy frameworks for developing countries to undertake actions for mitigating greenhouse gases that are supported by technology and fi nance. EMBARQ — The WRI Center for Sustainable Transport: Fosters viable government-business- civil society partnerships whose members are committed to fi nding solutions to the transportation-related problems facing the cities in which they operate.

20 WRI 2008 Annual Report Emissions Markets: Facilitates the development MARKETS AND ENTERPRISE Economic Valuation of Coral Reefs: Develops of globally consistent markets for greenhouse and applies practical methods for estimating Capital Markets Research: Provides tools and gas emission reductions, which will form the economic contribution of coral reefs, losses frameworks to investors, fi nancial institutions, a critical component of U.S. policies and from reef degradation, and the economic issuers, and analysts in advanced market international agreements on climate change. benefi ts gained by investing in coastal zone economies to help incorporate environmental management. Energy Security and Climate Change: Frames and risk and opportunity into traditional fi nancial communicates solutions that address energy analyses and investment decisions. Ecosystem Service Indicators — Developing security concerns while enhancing, rather than Measures of the State, Trends, and Drivers of Emerging Markets Equities: Analyzes the damaging, climate protection. Ecosystem Services: Identifi es gaps in existing fi nancial impact of sustainability issues on ecosystem services indicators and develops new Greenhouse Gas Protocol Initiative: A decade- critical business sectors in six focus countries indicators to fi ll those gaps, thereby helping long partnership between World Resources in emerging Asia. Th e objective is to develop to inform ecosystem management decisions at Institute and the World Business Council tools and frameworks to help embed extra- the international, national, and sub-national for Sustainable Development, the GHG fi nancial sustainability issues into mainstream levels. Protocol is the most widely used international fi nancial analysis. accounting tool for government and business Global Reefs at Risk Revisited: Examines Green Supply Chain Project: Th e Green Supply leaders to understand, quantify, and manage human pressures on coral reefs (including Chain Project promotes corporate supply greenhouse gas emissions. climate-related threats), the resulting eff ect on chain initiatives that minimize impact to the ecosystem goods and services, and implications International Technology Policy: Engages public environment and build value for both buyers for economic impacts in coastal communities. and private sector partners to frame solutions and suppliers. for international technology deployment that Forest Landscapes: Helps governments, New Ventures: New Ventures promotes the will result in a measurable and signifi cant shift industry, NGOs, and community groups growth of small and medium enterprises to in investment toward zero-carbon technology in Southeast Asia, Russia, Central Africa, help drive inclusive, sustainable economic in the power sectors of key developed and and the Amazon Basin access and properly development in emerging economies. Our developing countries. integrate timely, accurate, and accessible global network helps entrepreneurs in key forest landscape information to strengthen Learning and Leading by Doing — Expanding sectors to improve their business skills, access the management of working forests, reduce the Impact of WRI’s CO Reduction Commitment: capital, and grow. 2 deforestation, and safeguard primary forests. Helps service and retail companies understand Building Investor Capacity for Small Enterprises: their role in climate change solutions. Helps Integrating Ecosystem Service Concepts in Public Working in key emerging markets, WRI build new constituencies in support of climate Sector Decision-Making: Aims to raise awareness and its partners promote innovation in the change action. about the condition of ecosystem services and fi nancial sector and grow the pool of capital provide guidance on how ecosystem services State Successes: Actively supports successful available to small, sustainable enterprises so can be incorporated into decision-making state and regional climate change policy, which they may increase their positive environmental processes. leads to local emissions reductions, informs and social impacts. and encourages near-term federal policy, and Performance-Based Incentives for Improving Base of the Pyramid (BOP) Markets: WRI supports continued and increased stringency Water Quality: Aims to reduce eutrophication increases knowledge and action with respect to in subsequent federal action. and hypoxic zones through the development BOP markets in energy, water, and agriculture and adoption of performance-based UNFCCC Mechanisms for Forests and Climate: by providing new investment and market incentives—nutrient trading, reverse auctions, Works to reduce emissions from deforestation analysis on the potential of small enterprises and performance-based payments. in developing countries by analyzing carbon to eff ectively and viably address the needs of fi nancing mechanisms currently under the BOP. Poverty and Ecosystem Services Mapping discussion in the UNFCCC process and in East Africa: Develops and applies new off ering alternatives and additions to these mapping methods to analyze ecosystem mechanisms. PEOPLE AND ECOSYSTEMS services and poverty, helping policy-makers Biofuels Production and Policy: to understand and act on linkages between U.S. Climate Policy Analysis and Design: Seeks to ensure that energy and agricultural policies poverty and ecosystem services and improve Facilitates the development, adoption, and are as sustainable as possible given increased implementation of poverty reduction eff orts, implementation of U.S. GHG emission pressure for agricultural energy production. ecosystem management, policies, or plans at reduction policies, focusing primarily on cap- Directs development of the biofuels industry national and local levels. and-trade policy. toward those technologies that are most Vulnerability & Adaptation to Climate Change: environmentally sustainable. Works to help developing countries integrate Corporate Ecosystem Services Review: Refi nes climate change impacts and adaptation and promotes adoption of Th e Corporate approaches into their national development Ecosystem Services Review, a methodology for planning. Also supports the design of integrating ecosystem service considerations the adaptation elements of a post-2012 into private sector decision-making. international climate agreement.

Our Projects 21 Our Communitystaff

OFFICERS Jonathan Lash, President Manish Bapna, Executive Vice President/Managing Director Steven Barker, Chief Financial Oﬃ cer/VP, Administration Elizabeth Cook, Vice President, Institutional Strategy & Development Robin Murphy, Vice President, External Relations Janet Ranganathan, Vice President, Science & Research

ADMINISTRATION Franz Litz Dario Hidalgo Heather McGray Clayton Lane Angela Butler Hilary McMahon Soniann Oliver Olga Dolegui Eliot Metzger Madhav Pai Cathy Donn Remi Moncel Seema Parakh Arthur Droe Seth Ort Laura Root Vivian Fong Alexander Perera Rhys Th om Jennie Hommel Laura Pocknell Alper Unal Julia Hussey Samantha Putt Del Pino Nancy Kiefer David Rich EXTERNAL RELATIONS Leslie Kruse Kaleigh Robinson Anna-Lise McManus Stephen Russell Robin Murphy, Vice President, Mary Maguire Deborah Seligsohn External Relations Georgia Moyka Neelam Singh Hyacinth Billings John Murray Sr. Margaret Staley Amy Cassara Sheryl Newkirk Xiaomei Tan Laura Lee Dooley Allison Sobel Preeti Verma Kathy Doucette Rashawn Stepp Jack Warner Samah El Sayed Kristin Synder Kate Zyla Polly Ghazi Wendy Washington Timothy Herzog Lauren Withey DEVELOPMENT Paul Mackie Camilo Ramirez CLIMATE AND ENERGY Elizabeth Cook, Vice President, Payson Schwin Institutional Strategy and Development Oretta Tarkhani Jonathan C. Pershing, Program Director Elisabeth Bahs-Ahern Lydia Weiss Pankaj Bhatia Rich Barnett Nicholas Bianco Anne Calvert INSTITUTIONS AND GOVERNANCE Deborah Boger Heidi Donovan Robert Bradley Leslie Myers Jacob Werksman, Program Director Natalie Bushell Frances Nepomuceno Arisha Ashraf Cynthia Cummis Christopher Perceval Maria Athena Ballesteros Th omas Damassa Lillian Torres Emily Chessin Florence Daviet Devan Tucker Crystal Davis Christina Deconcini Daniel Tunstall Allenisheo Lalanath De Silva Aarjan Dixit Mary Upchurch Joseph Foti Sarah Forbes Elsie Velez Whited Anne-Gaelle Heliot Taryn Fransen Ryan Herbertson Gregory Fuhs EMBARQ Monika Kerdeman Stephanie Hanson Isabel Munilla Robert Heilmayr Nancy Kete, Director Smita Nakhooda Alexia Kelly-Schwartz Claudia Adriazola Linda Shaﬀ er John Larsen Ethan Arpi Peter Veit Christopher Lau Maria Cordeiro Davida Wood Jennifer Layke Luis Gutierrez Alisa Zomer

22 WRI 2008 Annual Report MARKETS AND ENTERPRISE PEOPLE AND ECOSYSTEMS Elizabeth Marshall Kathlene Martini Andrew Aulisi, Program Director Craig Hanson, Program Director Pierre Methot Virginia Barreiro Karen Bennett Susan Minnemeyer Ray Cheung Evan Branosky Carmen Nogueron Chang Elaine Delio Lauretta Burke Suzanne Ozment Hiranya Fernando Lauriane Cayet Boisrobert Sara Parr Aram Kang Emily Cooper Kathleen Reytar Dana Krechowicz John Finisdore Mindy Selman Leblond Adriana Lacerda Peter Hazlewood Lucas Shindeldecker Saurabh Lall Norbert Henninger Matthew Steil Kelly McCarthy Charles Iceland Alfred Stolle Francisco Noguera Cyrus Jones Scott Th ompson Clayton Rigdon Lars Laestadius Richard Waite Chandan Singh Florence Landsberg Jeﬀ rey Wielgus Visalakshi Venugopal Christian Layke

Our Staff 23 Financial Overview

Th e trust of our supporters is of great Statement of Consolidated Activities concern to WRI. We receive donations from individuals, governments, foundations, and Revenues TOTAL 2008 TOTAL 2007 corporations, and have stringent fi nancial Grants/Contributions $20,355,000 $17,225,000 controls in place to ensure compliance with Federal Grants 3,156,000 4,237,000 donors’ wishes. We are effi cient, for 2008 over Support from Endowment Income/Publications/Others 2,918,000 2,165,000 82 percent of our revenue supports program Total Unrestricted Revenues and Other Support 26,429,000 23,627,000 activities. To maintain our credibility and eff ectiveness, our income and expenditures are Expenses reviewed by professional auditors. Program Activities 21,785,000 18,832,000 General Administration 2,601,000 2,598,000 Development 2,017,000 2,197,000 Total Expenses 26,403,000 23,627,000 Change in Net Assets 26,000 0

24 WRI at a Glance: Mission, Goals, Approach