Deforestation-free supply chains:

From commitments to action

Written on behalf of 240 investors with US$15 trillion in assets

CDP Global Forests Report 2014 November 2014 01 Contents

2 CEO foreword

3 UK Government perspective

4 Investor demand for corporate action

6 Executive summary

7 Key findings

8 Roadmap to deforestation-free supply chains

10 Commitments

12 Risk asssessment

16 Targets

20 Implementation

26 Leadership

28 Unlocking opportunities

30 Join our participating companies

32 Should you be participating? Non-responding companies

35 Investor signatories

36 Acknowledgements

To read company responses in full please go to www.cdp.net/en-US/Results/Pages/responses.aspx

Important Notice The contents of this report may be used by anyone providing acknowledgement is given to CDP. This does not represent a license to repackage or resell any of the data reported to CDP or the contributing authors and presented in this report. If you intend to repackage or resell any of the contents of this report, you need to obtain express permission from CDP before doing so.

CDP has prepared the data and analysis in this report based on responses to the 2014 climate change information request. No representation or warranty (express or implied) is given by CDP or any of its contributors as to the accuracy or completeness of the information and opinions contained in this report. You should not act upon the information contained in this publication without obtaining specific professional advice. To the extent permitted by law, CDP and its contributors do not accept or assume any liability, responsibility or duty of care for any conse- quences of you or anyone else acting, or refraining to act, in reliance on the information contained in this report or for any decision based on it. All information and views expressed herein by CDP and its contributors are based on their judgment at the time of this report and are subject to change without notice due to economic, political, industry and firm-specific factors. Guest commentaries where included in this report reflect the views of their respective authors; their inclusion is not an endorsement of them.

CDP and its contributors, their affiliated member firms or companies, or their respective shareholders, members, partners, principals, directors, officers and/or employees, may have a position in the securities of the companies discussed herein. The securities of the companies mentioned in this document may not be eligible for sale in some states or countries, nor suitable for all types of investors; their value and the income they produce may fluctuate and/or be adversely affected by exchange rates.

‘CDP’ refers to CDP Worldwide, a United Kingdom company limited by guarantee, registered as a United Kingdom charity number 1122330. © 2014 CDP Worldwide. All rights reserved. 02 03 CEO foreword UK Government perspective The imperative to act on deforestation

As the key milestone of Our challenge now - besides 2020 approaches, how can encouraging ever more companies commitment translate into to join this reporting initiative - is corporate action? There is no to turn words into action. one single solution, as this report clearly shows, but a vital step for companies is to tackle the global drivers of deforestation.

Forests are critical for keeping the global average temperature rise Next year—2015—will be an important one for all who share an interest below 2°C, providing one of the cheapest and most effective ways of in a sustainable future. International agreements on the post-2015 removing carbon from the atmosphere and therefore mitigating climate development agenda and on climate change offer a unique opportunity to change. In the past few decades the world’s forests, two-thirds of set the global economy on a more sustainable and equitable trajectory. which are managed by humans, have absorbed nearly a third of the annual CO e released into the atmosphere from fossil fuels1. Tackling poverty and climate change are two sides of the recognizing that they need to act now to stop 2 same coin. Climate change could swiftly reverse progress deforestation. More need to follow this lead. If deforestation rates in the Brazilian Amazon had remained Some in the finance world are recognizing the potential that has been made in reducing global poverty in recent at 2005 levels, an extra 3.2 billion metric tons of carbon risk this poses to the value of their portfolios. A number years; while measures to combat climate change will only Over time, commitments to take deforestation out of dioxide would have entered the atmosphere. While Brazil of activist investors, notably in the US, have filed be effective if they help people in developing countries to supply chains for ‘forest-risk commodities’, such as timber, has made progress in curbing these levels of deforestation, shareholder resolutions and earlier this year Storebrand, improve their livelihoods in a sustainable way. Forests bring palm oil, cattle products, soya and paper, could have a the rates are once more increasing2. Worryingly, we are one of Norway’s largest insurance and pension savings these interconnections into stark relief. Over 1 billion people transformative impact, supporting sustainable jobs and now also seeing increasing deforestation in South East companies, divested from 11 palm oil companies due to depend on forests for their livelihoods. Forests provide growth in developing countries, while meeting global Asia: in fact in 2014 the rate in Indonesia is thought to perceived sustainability risks6. habitat for over half of the world’s terrestrial plant and animal demand for these commodities without destroying forests. have surpassed that of Brazil3 - historically the country with species. 10% of global greenhouse gas emissions come the highest rates. An unprecedented number of companies have also set from deforestation. Transparency and disclosure are the first tentative steps on strong deforestation targets over the last year. Notably the road to realizing this ambitious agenda. That’s why I’m The message that deforestation must be addressed is Wilmar International, a discloser to CDP’s forests If we can get it right on forests, then we can also crack so proud of what has been achieved by CDP’s forests filtering through to government and policy makers: some program, committed to zero deforestation. This is many of the other big sustainability challenges which we program, which DFID has supported since its launch as 1 http://www.sciencemag. need to address in the post-2015 world. ‘The Forest Footprint Disclosure Project’ in 2009. The initiative org/content/333/6045/988 ambitious new commitments were made at the 2014 expected to save emissions of more than 1.5 Gigatonnes has grown rapidly from humble beginnings. This year’s report UN Climate Summit in New York, including a strong of CO2 by 2020 – roughly equivalent to the combined 2 http://www.vox. Conversion of forests to agricultural commodity plantations has been compiled on behalf of 240 investor signatories with com/2014/10/21/7023415/ pledge by governments and multinational companies to annual carbon emissions of Central and South America deforestation-brazil-surging- eliminate deforestation from the production of agricultural from energy consumption7. has been the largest single cause of deforestation in recent US$15 trillion in assets, and draws together data collected again-after-years-decline commodities altogether by 20204. years. Some of this conversion has been legal, but large from over 160 of the world’s largest companies. 3 http://www.nature.com/ Companies that regularly respond to CDP’s forests tracts have also been illegally cleared. nclimate/journal/v4/n8/full/ But as the key milestone of 2020 approaches, how can Our challenge now—besides encouraging ever more nclimate2277.html program are now identifying many more of the commitment translate into corporate action? There is opportunities available to them, including securing Private sector entities on all scales, including multinational companies to join this reporting initiative—is to turn words 4 http://www.un.org/ no one single solution, as this report clearly shows, but their supply chain against the risks associated with corporations, national companies, small and medium into action. climatechange/summit/ enterprises, cooperatives and smallholder farmers, play a wp-content/uploads/ a vital step for companies is to tackle the global drivers deforestation and commodity sourcing. This in turn is sites/2/2014/09/FORESTS- of deforestation. helping to secure shareholder value. role in this process of change, connected together through This is a shared challenge. If companies are willing to step New-York-Declaration-on- supply-chain links and national and international trade. forward and build the ground-breaking partnerships required Forests.pdf The major driver of global deforestation comes from the Different parts of the supply chain are moving at different Encouraging companies to identify and manage the risks to take deforestation out of supply chains and work with us 5 http://www.nature.com/ to their businesses stemming from deforestation, and to to build a more sustainable future, then the British nclimate/journal/v4/n10/ demand for four critical agricultural commodities – beef, rates to tackle this issue. What is clear is that leading full/nclimate2353.html palm oil, paper/pulp and soy. These commodities feature companies, as identified by CDP, are those that are recognize the positive role which they can play in a shift government will use its influence and its climate finance to away from this business-as-usual pattern, are key parts of help you to go that extra mile. 6 http://www.bloomberg. in the supply chains of countless companies, ending bringing their supply chains with them on this journey. com/news/2014-01-22/ up in food, fuel and many other everyday products. As the sustainability challenge which we face. storebrand-puts-palm-oil-on- Rt Hon Lynne Featherstone MP blacklist-with-tobacco.html demand for these commodities grows, we can expect Paul Simpson global agricultural cropland to expand by 42% by 20505. CEO, CDP Recent trends are encouraging, with an increasing Parliamentary Under-Secretary of State 7 http://greencentury.com/ number of companies showing leadership and for International Development palm-oil-starbucks-wilmar- This demand cannot be met without incurring significant kellogg/ business and environmental risk. 04 05 Investor demand for corporate action

We press companies to make Most notable over the last year strong commitments to tackle has been the collaboration deforestation, eliminating between investors on the issue unsustainable forestry practices of deforestation. from their supply chains, and report on progress through CDP’s forests program.

As long-term investors, climate-related effects will structurally and Investor focus on the issues around deforestation in supply systematically affect the markets in which we invest and therefore chains has seen unprecedented increase in 2014, as evidenced the underlying value of our portfolios over time. Climate change and by the 30% increase in the number of investor signatories its drivers, such as deforestation, must therefore take centre stage demanding corporate disclosure through CDP’s forests program. for companies to ensure that investment decisions taken today will be relevant and value creative in the future. Palm oil in particular has received much of the made an offer in October to buy New Britain Palm Oil, investors’ attention, with many facing their own one of the leaders in sustainable production, at an 85% 12 Forests are an important method of carbon capture There is also reputational risk companies should pressure from NGOs to act on the deforestation premium . Companies ignore this investor focus on and storage and key in perpetuating the water cycle. address. Consumers and companies alike are hidden within their portfolios. Following the lead set deforestation to their disadvantage. For a heavily diversified universal asset owner such as becoming more and more aware of the damage by the Government Pension Fund of Norway in 2013, a pension fund which is focused on long-term wealth caused by unsustainable practices and are choosing Storebrand, one of Norway’s largest life insurance and James Hulse creation, destruction of such a valuable ecosystem with products which are sourced or produced in a pensions companies, reported it had divested holdings Head of Investor Initiatives, CDP no comparable alternative makes no sense. sustainable way to reflect this. This is fuelled by activist in 11 palm oil companies earlier this year for failing to 8. NGOs and negative press coverage which further meet its sustainability criteria One company externalizing its costs (for example by not create risk to the top line. paying for the value it is destroying through deforestation) 8 http://www.bloomberg. Investor activism has also manifested itself through com/news/2014-01-22/ the filing of shareholder resolutions in the US. Ceres simply means that the costs will manifest themselves For all of these reasons, we press companies to storebrand-puts-palm- elsewhere and those short-term benefits to one are felt make strong commitments to tackle deforestation, oil-on-blacklist-with- reported that 150 climate-related resolutions were filed as costs elsewhere. These costs are likely to be borne by eliminating unsustainable forestry practices from their tobacco.html by institutional investors during the 2014 proxy season, resulting in 20 major corporations committing to reduce wider society so they affect adversely the context in which supply chains, and report on progress through CDP’s 9 http://www.ceres.org/ 9 all companies do business. This is not conducive to overall forests program. press/press-releases/ emissions or to source sustainable palm oil . investors-secure- wealth creation and presents a significant portfolio risk. groundbreaking- corporate-commitments- However, most notable over the last year has been Freddie Woolfe to-protect-forests- 240investors the collaboration between investors on the issue We need companies to be aware of and prepared for Associate Director - Corporate Engagement, reduce-carbon-emissions regulatory changes to tackle unsustainable practices. Hermes Investment Management of deforestation. Starting at the end of 2013 with representing US$15 trillion in assets 10 http://www.unpri.org/ a coalition of investors that contributed to Wilmar are signatories to CDP’s forests For instance, a clamp-down on illegal deforestation or a press/investors-urge- sudden policy change on permits or licences means that greater-sustainability- International’s significant commitment to zero program to understand corporate commitments-from-palm- deforestation, the momentum has continued into companies will face significant risks to security of supply oil-producers/ management of the risks associated and input costs if they are not appropriately prepared. In 2014. The UN-backed Principles for Responsible with deforestation. addition, regulation that forces companies to internalize 11 http://greencentury. Investment’s Sustainable Palm Oil Working Group com/major-palm- 10 costs that they have previously been externalizing, oil-growers-agree- has called for producers to make commitments to-moratorium-on- and a coalition representing over half a trillion dollars for example through trading schemes, means that deforestation-following- unprepared companies will be exposed to increased letter-from-investors/ successfully urged five major palm oil producers to margin and competition pressure. Both of these present adopt an immediate moratorium on clearing high 12 http://www. carbon stock forest11. potential material impacts on business operations and bloomberg.com/ corporate strategy. news/2014-10-09/ sime-offers-to-buy-new- This investor interest is not surprising. In a sign of the britain-palm-oil-for-7-15- pounds-a-share.html increasing value of sustainable palm oil, Sime Darby

06 07 Executive summary

We now need business to move from commitments to action with a sense of urgency, something leading companies are already recognizing. 162 162 companies with market capitalization of US$3.24 trillion* demonstrate an understanding of the imperative to tackle deforestation by responding to CDP’s forests program.

You would be forgiven for thinking that 2014 has been the year of ‘deforestation-free supply chain’ commitments. This year has seen Key findings: many large global companies make a commitment to rid their supply chains of deforestation. These commitments are in part a response Making a corporate commitment is the first step to demand from investors for companies to recognize and act on the on the journey to deforestation-free supply chains risks facing their business. and critical for addressing climate change. On palm oil alone, 19 major consumer goods companies, This brings into question whether companies are including L’Oréal, Kellogg’s and Danone, adopted zero- really proactively addressing the risks associated with deforestation policies between January and September deforestation across all their commodities, or whether 1 in 2014. Some companies, such as Cargill, extended they are reacting to pressure from more recent these pledges to cover commodities beyond palm oil. NGO campaigns. There is an urgent business imperative for these According to the Action Statements and Action Plans commitments to be translated into action; document accompanying the UN’s New York Declaration Action on commodity-linked deforestation has to be on Forests, these commitments taken together mean taken by companies at every stage of the supply chain. that the share of palm oil-related zero deforestation However, retailers and manufacturers need to catch up commitments has grown from 0 to about 60 percent in with producers, processors and traders in progressing 2 the last year.13 along the journey to achieving their commitments. Despite the considerable momentum corporate commitments on deforestation have seen over From commitments to action Despite these inconsistencies, opportunities associated However, commitments are only meaningful if they with sustainable sourcing, such as increased brand value the last year, our data shows a number of are acted upon and this report seeks to push the and securing the best suppliers, are recognized by the inconsistencies concerning corporate action conversation forward to enable companies to act on majority of respondents and more so by companies that on this journey, both across commodities and these policies. The report outlines the current state of play are long-term respondents to CDP’s forests program. and identifies steps on the journey to implementing such supply chains; and commitments. If your company has not made a commitment, now is the time to take that first step on the journey and to disclose Despite the encouraging momentum on corporate this to demonstrate to your investors and other important commitments, we see varying levels of performance stakeholders that you are truly tackling and managing the 3 by companies on the journey and some concerning issue. We now need business to move from commitment Businesses can realize opportunities inconsistencies: to action with a sense of urgency, something leading from partaking in the journey. companies are already recognizing. Although we know that the commodities covered by 13 http://www.un.org/ climatechange/summit/ CDP’s forests program are major drivers of deforestation Katie McCoy wp-content/uploads/ globally, recognition of the risks, target setting and Head of CDP’s forests program sites/2/2014/07/ FORESTS-Action- implementation in many instances is more advanced on Statement_revised.pdf palm oil and timber than it is for the other commodities.

*market capitalization includes an estimation for the value of responding private companies based on the best available data. 08 09 Roadmap to deforestation-free supply chains From commitments to action

Making a corporate commitment is the first step on Despite the considerable momentum corporate the journey to deforestation-free supply chains and commitments on deforestation have seen over critical for addressing climate change. There is an the last year, our data shows a number of urgent business imperative for these commitments to inconsistencies concerning corporate action be translated into action. Moving from commitment on this journey, both across commodities and to action can be challenging and requires risk supply chains. assessment, target setting, implementation and driving continuous improvement towards leadership.

1 2 3 4 5 Commitments Risk assessment Targets Implementation Leadership

The first step for Understanding how Effective implementation Acting to achieve corporate Companies should be companies is to make your company may of a deforestation deforestation targets is striving for leadership a public commitment to be exposed to the commitment requires an iterative process and in their work towards remove the commodity- risks associated with a roadmap of specific, can differ depending on removing commodity- linked deforestation deforestation is a critical interim targets. the company concerned. driven deforestation, embedded within their scoping exercise and one Typically companies use a which will help unlock global supply chains. that should be reviewed combination of the many opportunities on a regular basis. certification, supply chain available to those engagement and traceability. working on sustainable commodities.

*Please note that analysis for the roadmap was conducted on company responses received before 18th August 2014 10 11 Commitments 1Making a deforestation commitment

The first step for companies is to make a public commitment to remove the commodity-linked deforestation embedded within their global supply chains. An unprecedented number of such commitments have Checklist: common elements of corporate commitments been made in 2014. CDP believes this commitment and the progress towards it should be transparently disclosed in a standardized format Any commitment must be worth the paper it is written on. The importance to investors and broader stakeholders through CDP’s forests program. of making a strong, actionable and time-bound commitment on deforestation is made clear in Greenpeace’s ratings of corporate ‘zero deforestation’ commitments as part of their Tiger Challenge14. The strongest company commitments reported to CDP include:

Company examples: commitments 3 Legal compliance 3 No peatland clearance

3 High Carbon Stock protection 3 Social criteria As part of its “zero deforestation” commitment Peat lands shall not be used for the cultivation by 2020, the Group plans to take this of palm oil [and] Existing plantations on peat 3 High Conservation Value protection commitment further by closely involving land shall observe best management practices its suppliers in this objective. [...] L’Oréal with regard to protecting the environment and commits to ultimately work with suppliers workers’ health and safety. whose responsible practices can guarantee Inconsistency across commodities: [...] the conservation and restoration of High Orkla Conservation Value and High Carbon stocks (Regarding the % of reporting companies with commodity specific policies Areas when expanding palm plantations. protection of peatland)

L’Oréal (Regarding palm oil plantation expansion) Compliance with applicable legal 85% requirements of each country in which we operate and from which we source. 53% 82% 61% 65%

PepsiCo (Regarding legal compliance) Soy Palm oil Cattle products Biofuels Timber

Impact of deforestation commitments* Inconsistency across supply chains: % of reporting companies with commodity specific policies Wilmar International’s “No Deforestation, No Peat, 1.5 Gigatonnes No Exploitation” policy alone is estimated to prevent of CO emissions 0 20 40 60 80 100 2 the emission of more than 1.5 Gigatonnes of CO2 saved by 2020 by 2020, equivalent to the annual carbon emissions 80% from the consumption of energy in Central and Biofuels 68% South America combined.

Cattle 83% products 61%

Palm oil 100% 81% The New York Declaration on Forests, launched at the 4.5-8.8 billion UN Climate Summit and endorsed by over 150 organizations, including 100% tons of carbon 40 companies, commits to halve global forest loss by 2020 and strive Soy 51% emissions to end natural forest loss by 2030, remove forest loss from commercial supply chains by 2020 and restore at least 350 million hectares of saved per year 89% degraded forest lands by 2030. By 2030 action on this declaration is Timber 86% expected to cut carbon emissions by 4.5-8.8 billion tons per year.

Producers, Processors & Traders

*Analysis conducted by Climate Advisors with publically available methodologies online: http:// Manufacturers & Retailers www.climateadvisers.com/the-climate-impact-of-wilmars-no-deforestation-no-peat-no- exploitation-policy/; http://www.climateadvisers.com/wp-content/uploads/2014/09/Climate- Advisers-Quantifying-Benefits-of-the-New-York-Declaration-on-Forests.pdf. 14 http://www.greenpeace. org/usa/tiger-challenge/ 12 13 Risk assessment 2 Identifying exposure to deforestation risk

Understanding how your company may be exposed to the risks associated with deforestation is a critical scoping exercise and one that should be reviewed on a regular basis. After establishing Types of risks recognized baseline data on your company’s contact with each of the forest-

risk commodities (timber products, palm oil, soy, cattle products & 55% of companies recognize at least one biofuels), you can begin to establish exposure to risks, the nature reputational risk across commodities 55% of those risks and their magnitude and likelihood. 51% of companies recognize at least one operational risk across commodities 51%

45% of companies recognize at least one across commodities Shifting to sustainable palm oil is regulatory risk 45% Ultimately, I want to understand whether cheaper than facing reputational risk management understands its impact. Do they understand their supply chain and A study from Euromonitor15 earlier this year looked its contribution to deforestation? Do they at the potential impact of consumer boycotts understand the risks they face, and the on the sales of a packaged foods company. risks they are creating? I think any investor, If Kellogg’s was to lose 1% of its customers, Inconsistency across commodities: regardless of their ultimate concern, is going to Euromonitor estimated it could face a fall in sales % of companies identifying material reputational risks want to know the answer to that question. of US$200 million. The cost of sustainable palm oil for this type of company pales in significance Adam Kanzer against this potential risk. Managing Director and of companies reporting General Counsel, 62% 46% of companies reporting on palm oil identify material Domini Social Investments 46% on cattle products identify 62% reputational risk. material reputational risk.

15 http://www.foodnavigator.com/Market-Trends/Sustainable- palm-oil-shift-is-cheaper-than-bad-publicity-impact Palm oil Cattle products

The inconsistency with which reputational risk is recognized across commodities suggests that companies do not recognize any potential for past NGO campaigns, such as on cattle products and soy, to resurface. Operational risk: Extreme weather linked to deforestation is threatening agriculture in Brazil Inconsistency across supply chains: % of companies identifying material operational risks associated with soy A record drought in central and southeast Brazil, followed by an unusually heavy deluge of rainfall Producers, Processors & Traders across some states, has taken its toll on agricultural 83% production this year. Brazil was expected to produce Manufacturers & Retailers 35% 74%74% of companies recognize more soy than the United States for the first time at least one material business in 2014 but the year’s harvest is expected to have 83% of producers, processors and traders reporting on soy identify operational risks. been seriously affected, resulting in large losses for 35% of manufacturers and retailers reporting on soy identify operational risks. risk associated with the key agricultural producers and driving high commodity 16 commodities driving deforestation. prices on the market . Overall, recognition of operational risks does not seem to translate along the supply chain. However, when a company reports to have full visibility along its supply chain, it is then more likely to identify material operational and Scientists have long connected the precipitation regulatory risks. This implies that understanding your supply chain is important for revealing hidden risk. in this region with the movement of water vapour evaporated from the Amazon, termed ‘flying rivers’. Leading Brazilian climatologist, Antonio Nobre, was quoted as saying: “Destroying the Amazon Future demand to advance the agricultural frontier is like shooting 35% of all respondents yourself in the foot. The Amazon is a gigantic on palm oil are unable to hydrological pump that brings the humidity of the identify sufficient sources of Atlantic Ocean into the continent and guarantees the sustainable palm oil to meet irrigation of the region.”17 their future demand.

16 http://www.forbes.com/sites/kenrapoza/2014/03/03/brazil-loses-billions- 35% as-crop-losses-mount-from-wacky-weather/; 17 http://www.theguardian.com/environment/2014/sep/15/drought-bites-as- amazons-flying-rivers-dry-up 14 15 Risk assessment 2 Identifying exposure to deforestation risk Company examples: risks

A good reputation is a fundamental resource that can The Group now needs over 7 million m3 roundwood equivalent significantly help Sofidel to create added value for its (RWE) of wood to supply its customers with the product it does today. We rely on an estimated forest area the size of products and to develop long term, loyal relationships Switzerland. The sustainable wood market will see marked with its customers. [...] A bad reputation could also shortages to 2020: Brazil, Russia, India and China will absorb decrease the possibility to get access to financial 55%of global wood demand by 2020. European ‘clean energy’ targets drive demand for biomass to 10-20% greater than the markets (reducing dramatically the negotiation power current demand for wood. Increased demand for sustainable with banks and financial institutions preventing wood from retail, building, pulp/paper. We can expect 10-30% Sofidel from doing future investments) and to get wood shortages over the next 5-10 years. These factors are access to the labour market since, for an equal pay, already impacting cost prices and species availability today. We expect scarcity and price increases in sustainable wood. […] talented people will prefer a sustainable company As deforestation and illegal logging distort global markets and than a company with a bad reputation. timber prices, security of supply is fast becoming a myth. Sofidel Kingfisher

Large changes in the FSC/PEFC criteria or in new As we directly import some A drought or excessive Whilst we are not major A possible problem with buying timber regulations could affect the availability and timber based products in rainfall influences on pasture users of palm oil […] due to soy from deforestation areas access to certified timber, which would drastically the EU we are subject to productivity and result in animal its unique qualities, we are may cause a trade embargo, reduce SCA’s supply. This […] could also prevent the EU Timber Regulations. feed, since it is the main source reliant on palm oil for a wide which can affect exportation SCA from delivering FSC/PEFC Chain of Custody There is then a risk of of cattle food, affecting its range of food and non-food to Europe and other markets. both product seizure entire production cycle. During products. We have identified With the expiration of the certified products to its customers. This is seen and prosecution if our the year 2013 there was an that palm oil is difficult to Soy Moratorium, JBS cannot as a material risk since this would negatively due diligence against the increase of the value substitute, and possible guarantee to have suppliers influenceSCA’s sales and thereby profit. importation of illegal timber paid for the animals due to alternatives come with their involved or signatories of a is not adequate. We have the scarcity and because of the own sustainability challenges substitute soy commitment. SCA chosen to only import drought that affected the offer (e.g. GM). Therefore an inability The uncertainty about the Soy timber and timber fibre of pasture, which affected the to source sufficient quantities Moratorium future can generate products covered by the fattening of animals, affecting of palm oil would undermine insecurity on JBS as a grain regulation that are credibly the capacity to slaughter our product development buyer, and on its clients in In addition to paper being a major raw material certified to either FSC of the Brazilian industry. and offering, and relation to the sustainable origin for printing companies, it is also a raw material or PEFC. competitiveness. of soy fed poultry and pork. that is familiar to consumers, and as a result, Travis Marfrig Woolworths JBS social concern runs high. […] It is believed that Perkins Alimentos Holdings loss of order opportunities, “outing” by NGOs and the media, and purchase boycotts are examples of reputational risk.

Dai Nippon Printing Co. 16 17 3 Targets

Effective implementation of a deforestation commitment requires a roadmap of specific, interim targets. The level of ambition of these targets clearly needs to reflect the urgency of global environmental Average target date for 3rd party certified material challenges, but using baseline and risk assessment data to prioritize The average company with certification targets for the next decade, regardless of commodity, is action in different parts of the business helps to ensure that targets striving to meet them before 2020. This is in the context of deforestation commitments from the are effective and achievable. How these targets are subsequently Consumer Goods Forum, the Tropical Forest Alliance and contained in the New York Declaration, embedded and incentivized within the company is key. all of which have a target date of 2020, just over 5 years away.

Biofuels Case study: KAO Corporation Palm oil Soy Timber Cattle products Motohiro Morimura Q: What is KAO Corporation doing to monitor and Executive Officer, communicate progress against those targets? Vice President Environment Coordinate with various stakeholders, including the 2014 2016 2017 2018 2019 2020 and Safety Management, RSPO, plantations, suppliers, non-governmental *For targets set in the next ten years: average date by which targets for 3rd party certification will be completed KAO Corporation organizations, specialists and third-party organizations (taking 1 Jan 2014 as the baseline & averaging ranges provided as target dates). to carry out items above. We will notify all our suppliers that they should comply with Kao Sustainable Palm Oil Procurement Guidelines. If our suppliers are found in contravention of Kao guidelines, we will take appropriate action including auditing of our suppliers. Q: What is KAO Corporation’s overarching Inconsistency across commodities: commitment to tackling deforestation? By studying and reporting to CDP’s forests program, % of companies with a quantified procurement target for third party certified material Recognizing the dependence of its businesses on natural Kao recognizes the latest trends in forest issues. CDP’s capital, Kao commits to zero deforestation at the source forests program is one of the important drivers to urge in its procurement of raw materials including palm oil and our own activity. paper. Over the medium-to-long term, Kao strives to reduce its use of natural capital by reducing the amount of raw materials used in its business and shifting to 78% have a quantified 36% 36% have a quantified alternative raw materials such as algae or other non- 78% procurement target or procurement target or have edible biomass sources, in addition to working toward have already achieved already achieved their target for sustainable procurement that also takes into account their target for third party third party certified soy. ethical issues that have emerged due to globalization. As investors we look for a company certifiedpalm oil. to clearly define its expectations for Q: What targets have been established for sustainable production and to report Palm oil Soy reaching that goal? regularly on progress in upholding By 2020, Kao commits to zero deforestation at the source those standards throughout the of palm oil through cooperation with plantations, suppliers (mills and refineries) and third-party organizations. We will supply chain. not purchase palm oil that contributes to development of any high conservation value (HCV) forests, high carbon Lucia von Reusner Inconsistency across supply chains: stock (HCS) forests or peat lands, regardless of the depth. Shareholder Advocate, % of companies with a quantified procurement target for cattle products Green Century By the end of 2015, Kao commits to purchase only Capital Management sustainable palm oil traceable to the mill for use in Kao Producers, Processors & Traders 83% Group consumer products. Manufacturers & Retailers 55% By 2020, Kao will purchase only sustainably sourced palm oil that is traceable to the plantation for use in Kao Group consumer products. 83% of producers, processors & traders report to have a quantified target for meeting their defined standards for cattle products.

55% of manufacturers and retailers report to have a quantified target for meeting their defined standards for cattle products. 18 19 3 Targets

To embed this strategic shift we have established eight targets specific to Our Net Positive timber aspiration timber to be achieved by 2020. for 2050 is to create more forest than we use. Recognizing that timber is an essential raw material for our business, used in up to 40% of the products

Case study: Kingfisher day-to-day management and assurance processes which we sell, we must aim beyond just are in place and formally on an annual basis using our Q: What is Kingfisher’s overarching commitment Foundations Questionnaire. The results (e.g. timber KPIs) avoiding deforestation. to tackling deforestation? are reviewed by our Operating Company CEO’s and senior Our Net Positive timber aspiration for 2050 is to create directors at Group level and are presented to the more forest than we use. Recognizing that timber is Board annually. […] an essential raw material for our business, used in up to 40% of the products we sell, we must aim beyond We use a combination of performance targets, just avoiding deforestation; we aim to protect forests training and communication to engage and involve our and our timber supplies by ensuring that the forests employees in achieving our Net Positive goals. Much are sustainably managed (using certification standards of our focus for 2013/14 has been on our most senior such as FSC as our proxy) and additionally by taking a managers (including the Board) who must take the lead restorative approach to forests. on integrating Net Positive into our commercial strategy and day-to-day operations. Net Positive related targets Q: What targets have been established have been integrated into the performance objectives for for reaching that goal? key members of our One Team Board (linked to bonus To embed this strategic shift we have established eight payments) and further work with our HR team is underway targets specific to timber to be achieved by 2020. to roll this out at Group and Operating Company level. These include targets and KPI’s for timber product, store construction, packaging, palm oil, leather as well We have also now established a Group Sustainability as strategic sourcing initiatives with the value chain and Committee made up of Director level members from the roll out and exploration of forest projects that are around the Group which will provide collective assurance able to secure sustainable supply. The business’ main to the executive teams over the delivery of the Group Net area of focus is to achieve ‘100% responsibly sourced Positive plan. timber and paper in ALL our operations by 2020’. B&Q UK achieved this (FSC, PEFC, TFT & recycled) for all of Q: What is Kingfisher doing with the its products last year and recently opened a new store wider industry? where not only the product but the timbers in the store Our sustainability aspirations are very ambitious and build itself were certified. We are quickly building on that to achieve our goals (including with regards timber) success in operations in Spain, France and Poland. we need to look beyond our own boundaries to find Each of our companies has a plan for how they will new ideas and sources of innovation. […] One such contribute to these Net Positive targets, with targets for initiative is the VIA (Value and Impact Analysis) Initiative their business. The CEO of each of these businesses is whereby Kingfisher, IKEA, and Tetra Pak are co-building a responsible for the delivery of their plan. Each operating methodology for collating impact data related to the company also has a representative who coordinates the FSC certification scheme. management of Net Positive on a day-to-day basis. Jamie Lawrence Q: What is Kingfisher doing to monitor and Senior Sustainability Advisor. communicate progress against those targets? Forests and Timber - Net Positive, We track progress at Operating Companies as a result of Kingfisher 20 21 Implementation 4 and continuous improvement

Acting to achieve corporate deforestation targets is an iterative process and can differ depending on the company concerned. Companies reporting to CDP’s forests program demonstrate a wide Certification range of approaches towards managing their impact but typically % of companies reporting to have already use a combination of: 23% Palm oil met their procurement target for third Certification party certified material: 20% Timber 19% Biofuels At least half of the companies claiming Supply chain engagement to have already achieved 100% certified 15% Cattle products palm oil are relying on GreenPalm 11% Soy Traceability certificates rather than physical material to meet that commitment. 0 50% 100%

Most improved companies 2013-2014 Supply chain engagement Sector grouping Company Inconsistency across commodities: Agricultural Products Wilmar International Limited % of companies reporting engagement in capacity building activities in their supply chain

Food & Staples Retailing Delhaize Group 51% of companies 79% of companies 51% reporting on soy claim to reporting on timber claim Hotels, Restaurants & Leisure Sodexo be engaging in capacity to be engaging in capacity building activities in their 79% building activities in their Household & Personal Products The Hain Celestial Group, Inc. supply chain to provide or supply chain to provide or use sustainable materials. use sustainable materials. Soy Industrials & Autos Travis Perkins Timber Materials Klabin S/A Inconsistency across supply chains: Media British Sky Broadcasting % of companies reporting engagement in capacity building activities for palm oil in their supply chain

Packaged Foods & Meats / JBS S/A 0 20 40 60 80 100 Brewers and Soft Drinks Producers, Processors & Traders 100% Retailing Williams-Sonoma Inc. Manufacturers & Retailers 68%

Textiles, Apparel & Luxury Goods LVMH 100% of producers, processors & traders reporting on palm oil claim to be engaging in capacity-building activities in their supply chain to provide or use sustainable materials. Transportation SAS 68% of manufacturers & retailers reporting on palm oil claim to be engaging in Note: Companies are identified as most improved for their sector based on their scores across the two responding years. Scores are awarded based on our scoring methodology, publically available on https://www.cdp.net/en-US/Pages/guidance-forests.aspx and updated every year. capacity-building activities in their supply chain to provide or use sustainable materials.

Traceablility Top 10 most commonly cited multi-stakeholder intiatives

RoundtableOver ½ of companies on Sustainable Palm Oil Traceability down to the level of the plantation is critical - we Forestreporting Stewardship on timber Council become very concerned when companies are not able to identify and palm oil claim to where their palm oil is coming from or verify the conditions under Roundtablehave already on Responsible met their Soy which it was produced…Certification can be a tool that companies The Leatherprocurement Working Group target for use, but in some cases companies will need to go beyond WWF -third The Global party Forest certified & Trade Network 35% certification to meaningfully address risks related to deforestation. The Sustainablematerial Aviation Fuel Users Group In only 35% of commodity responses do Lucia von Reusner, WBCSD - Forests Solutions Group companies report being able to identify Shareholder Advocate, The Consumer Goods Forum the actual location of production. Green Century Capital Management Roundtable on Sustainable Biomaterials Retailers’ Soy Group 22 23 Implementation Company examples: implementation 4 and continuous improvement

Klabin is providing Cargill is working with the RSPO Since the horse meat crisis in Through Marfrig Club we are able to technical knowledge and training and Control Union Certification to 2012/13, Unilever has had to promote a closer relationship with to improve the ability provide training to the company’s demonstrate due diligence in ranchers, explaining our commitments of producers to obtain crude palm oil suppliers to raise understanding the origin of all of and the importance of promoting good certification. One of the actions awareness of RSPO. Cargill our meat products back to the launched a sustainability program farm. practices for their everyday work, was a joint effort developed Supplier questionnaires with FSC Brasil, other forest in Malaysia in 2013 with NGOs have helped us accomplish this. aiming to meet social and environmental companies and WWF to adapt Wild Asia and Solidaridad to help We have included the traceability regulation and promoting continuous principles and criteria for more than 2,400 independent requirement in the publication of improvement in their management. small landowner producers smallholder farmers meet an updated Quality Manual and (SLIMF)... Using this new RSPO standards for palm are directing the sourcing of our standard, Klabin started a pilot production. This three-year materials as much as possible to project to certify a group program will provide technical vertically integrated operators. In of producers. Almost three assistance, training and Brazil our suppliers have provided thousand hectares of more capacity building. In July 2012 us with maps of all the origins of than 40 different producers are Cargill announced its collaboration our beef prior to slaughter. being certified in this group. with one of Indonesia’s leading Unilever agriculture institutes, Institut Klabin Pertanian Bogor (IPB), to build Case study: Marfrig Q: What work have you done to improve Indonesia’s first oil palm visibility along your supply chain? teaching farm which will provide Our sustainability team works Q: What actions are you undertaking to decouple Marfrig have a team of technicians working closely training to students on the with over 50 suppliers to provide your supply chain from deforestation? with ranchers, through our Marfrig Club Program. We latest plantation production and support in preparing their Marfrig have implemented a deforestation monitoring visit farms, collect relevant information and provide During 2013, SCA developed management techniques. systems for sustainability audits system for our cattle suppliers in the Amazon biome. knowledge on market demands and government and launched a shared business by providing Through that, we are able to know if any deforestation compliance documents, such as environmental licensing system – the Global Fiber Cargill training packs,

took place within our suppliers’ farm boundaries, (CAR), which is a farm management tool based on the Database – for the assessment conference calls and site visits. We also help in the registration removing from our sourcing those who have deforested New Forest Code. and purchase of fiber in process and even conducting from 2009 onwards. We have more than 7000 suppliers compliance with SCA’s forest gap management policies. The audits and expert consultation monitored in the region, making up around 15 million The Marfrig Club Program promotes best practice tools The major European energy database is an internal system for suppliers…Our work with hectares of monitored area. Our monitoring systems for livestock production and has been contributing utilities have been collaborating containing all the Group’s pulp, downstream supply chains is have blocked more than 2000 suppliers due to new on information sharing and technical assistance over on the development of recovered fiber and alternative rarely on an exclusive basis deforestation and encroachment into indigenous land different production regions, as the main contact the Sustainable Biomass fiber suppliers. It provides meaning all buyers in the industry and conservation units. channel between industry and producer. Partnership (SBP) with the […] fast and easy access have access to certified product. aim of developing a Common to important information Marfrig uses INPE (Brazil’s National Institute of Spatial Q: How are you engaging and working with your Assurance Framework – a tool Greenergy about suppliers, volumes, Research) deforestation data to monitor each farm: if supply chain to achieve your desired outcome? to credibly demonstrate legal forestry, pulp specifications, any deforestation polygon is found on a supplier´s farm, Through Marfrig Club we are able to promote a closer and sustainable sourcing of life cycle assessment data animals are not purchased. Apart from this geospatial relationship with ranchers, explaining our commitments woody biomass, specifically and bleaching methods, We are founder members of monitoring system, we also check Brazil’s Environmental and the importance of promoting good practices being focused on those areas supplier audit reports on PREPS, a joint initiative from Agency blacklist, using each farmer´s social security for their everyday work, aiming to meet social and where there is little FSC/ fibre traceability, species of twenty-six leading publishers number, which is blocked, if their name is on the list. environmental regulation and promoting continuous PEFC forest management wood, regions of supply and to develop understanding of improvement in their management. certification. Moving forward as so forth. […] This means that responsible paper supply chains. Q: How important is establishing traceability for an industry initiative will expedite the Global Fiber Sourcing unit The group is supported by a acting on your targets? Marfrig Club seeks alignment between social, development of a common and can locate the actual location of database which holds technical Traceability is key for our business. As we are the link environmental and animal welfare issues, promoting credible level of assurance which production, ensure traceability, specifications and details of the between field and consumer markets, traceability is very knowledge and awareness to suppliers and its is in line with the forest products the development department pulps and forest sources of the important for our process, considering both sanitary employees, over environmental legislation and sector and in a way that is not can check the availability of a papers used. This covers country aspects (diseases, vaccines) and socio environmental production alternatives which promote environmental considered anti-competitive. aspects (deforestation, forced labor). conservation on farms, social responsibility and animal certain raw material and the mills of origin of pulps and tree species. welfare. It gives a premium to farms that achieve the can show customers exactly Drax We ask our suppliers to certify Marfrig understands traceability as a vital effort and a highest levels of compliance, reaching Platinum level. what has been purchased. origin and carry out random way for the company to differentiate its work, showing The program’s intention is to promote development The database covers Europe, fibre testing to verify the fibre consumers the product story, relating food security to of the whole supply chain, from the beginner level, Americas and Asia. mix reported to us. social and environmental management throughout its going through bronze, silver and gold, giving a special SCA Pearson value chain, promoting sustainable development and premium for the top level. providing a stimulus to local communities. Mathias Azeredo De Almeida Sustainability Manager, Marfrig Global Foods 24 25 Implementation 4 and continuous improvement

Barriers and challenges

Implementing actions to tackle deforestation is undoubtedly challenging and relies on a number of different actors to drive progress and collaborate. The key barriers our reporting companies identify as limiting their progress are identified below.

Government regulation Standards and certification Internal organization When companies disclose Governance and regulatory compliance is still There are particular challenges reported with regard CEO and board level buy-in and ongoing support is problems they are encountering, seen as weak in many of the countries in which to the compatibility of multiple existing standards; needed within companies to ensure that all parts of the commodities are produced. Economic and the time, effort and bureaucracy required for the business, including procurement and finance, this gives investors greater incentives are also considered generally lacking certification. The same is true for national regulations, are actively aligned. Companies report that there confidence that management is for supporting sustainable supply and uptake of where respondents appeal for governments to do needs to be a lot more training, support and sustainable products. There is an onus on bodies more to consolidate, coordinate and streamline the investment in the supply chain and its organization. facing reality, rather than seeking such as the United Nations, and regional and requirements placed on companies. This investment is expected to pay off in the long to paint us a pretty picture. economic groupings, to disseminate best practice run as customer demand picks up and supply risks and put pressure on countries where illegal and There are also serious challenges for smallholders, are reduced. Adam Kanzer, unsustainable activities are taking place. There is medium-sized farms and plantation holders, for Managing Director and also an onus on governments and companies in whom certification is proportionately more costly and General Counsel, Domini consuming countries to ensure that they do not time consuming. More work is particularly requested Social Investments engage in purchasing products from unsustainable on the quality, development and roll-out of the or illegal sources. certification standards for palm oil, soy and cattle products.

Market demand Collaboration Supply chain organization Corporate drivers

High cost, lack of availability and low consumer The need for better cross-sector and industry Long, fragmented and complex supply chains are More examples of corporate action on and customer demand for certified sustainable collaboration is a strong theme throughout inherently more challenging when managing and deforestation being linked to strong financial products is the most frequently mentioned company responses. This is particularly important tracing products. For commodities and particularly returns need to be publically communicated to challenge across all sectors. Collaborative efforts because most companies, particularly small and for derivatives, segregated supply chains are reinforce the business case for action. from supply chain players, government and medium-sized businesses, are unable to effect physically challenging and costly to monitor and NGOs, are crucial to expand product supply, and significant change on their own. Monitoring, audit. Securing engagement from traders and the to set clear market direction in terms of demand. managing and improving product traceability ability to shift the supply chain to more responsible Respondents across all sectors stressed the need and transparency can be time consuming and practices is limited when organizations act in to inform and educate consumers, customers, costly, so it is important for organizations to pool isolation. This is where industry collaboration, investors, suppliers, and their own staff, on the knowledge and resources, and share the load. ethical codes, and the dissemination of best importance of sourcing sustainable products. There is also a lot of work to be done to improve practice systems and risk approaches is crucial. the cross-sector systems and tools which support traceability and policy compliance and this is difficult for companies to do in isolation. 26 27 5 Leadership

Companies should be striving for leadership in their work towards removing commodity-driven deforestation, which will help unlock the many opportunities available to those working on sustainable commodities. The vanguard of leadership is being driven forward as companies innovate and demonstrate new instances of best practice.

The hallmarks of leadership: An ambitious and specific roadmap of targets CDP’s forests program assists us CDP would like to congratulate the leaders in this year’s to meet the company commitment, including forests information request. The definition of a leader interim targets; in this space is one that has evolved and one that will in understanding how companies continue to change as increasing numbers of companies Quality work to build capacity in the supply innovate and push the boundaries of what is currently chain and clear supplier improvement plans; perform against their peers and what thought of as best practice. Furthermore, one company’s actions that define it as a leader may be different to Work with the wider supply chain including we can expect in best practice. It is another’s. That being said, there are a number of multi-stakeholder groups and NGOs; and common elements that we see in the companies also home to a wealth of knowledge reporting to CDP’s forests program which we would Engaging customers to create demand and consider to be the current ‘hallmarks of leadership’: differentiate their product. and expertise on sector and An ambitious commitment across all forest-risk CDP works to transform the way the world does commodities with a good scope, including but not business to prevent dangerous climate change and commodity issues, which we greatly limited to provisions for HCV, HCS, no peatland protect our natural resources. Increasingly, companies clearance and the rights of local communities; are looking at environmental issues holistically and appreciate its willingness to share. leaders now and in the future will be those that A strong and comprehensive risk assessment address their environmental impact across the process leading to a good articulation and related issues of climate change, water stress and understanding of risks; deforestation. Freddie Woolfe Associate Director - Corporate Engagement, Hermes Investment Management Sector leaders 2014

Sector grouping Company

Agricultural Products Cargill

Food & Staples Retailing J Sainsbury Plc

Hotels, Restaurants & Leisure Sodexo

Household & Personal Products SCA

Industrials & Autos Dai Nippon Printing Co., Ltd.

Materials UPM-Kymmene Corporation

Media Reed Elsevier Group

Packaged Foods & Meats / Nestlé* Brewers and Soft Drinks

Packaged Foods & Meats / Unilever plc* Brewers and Soft Drinks

Retailing Marks and Spencer Group plc

Textiles, Apparel & Luxury Goods LVMH

Transportation British Airways

*Joint sector leaders

Note: sector leadership is awarded on the basis of the information disclosed in 2014, assessed using our publically-available scoring methodology and the sector leadership criteria listed within, available from https://www.cdp.net/en-US/Pages/guidance-forests.aspx. 28 29 Unlocking opportunities Company examples: opportunities

Recognizing opportunities Within the palm oil supply Facilitated access to certain From large retail corporations chain, we have noticed markets, mainly in Europe to publishers and newspaper that smallholders play an and in the Fast Food chains. editors, environmental and increasingly important role in Competitive advantage related social responsibility is essential production. Smallholders’ to sustainability. Lower cost to maintaing both a durable oil yields per hectare are for financing, based on the fiber supply and remodel an 89% of companies lower than big companies’, same reason, as an example the industry cast as a strong actor recognize opportunities and thus there is a big access to BNDES financing lines in global deforestation. Indeed, associated with the opportunity for improvement. is conditioned to the purchase of the use of certification label on sustainable sourcing of at Neste Oil does not have cattle from sustainable sources. printed pieces serves both as a least one of the commodities specific expertise in oil palm proof of responsible purchasing 89% Marfrig Alimentos they produce or use. and as a strong cultivation, and thus we have (Regarding cattle marketing and educational tool. engaged partners such as products) IFC who have the capacity Transcontinental Opportunities associated with the sustainable sourcing of and resources to do such commodities with length of reporting to CDP’s forests program training and capacity building. Neste Oil PrimeAsia is continually % of new disclosers recognizing opportunities seeking to stabilize its supply Our aims are chain to source from the most security of supply and . sustainable suppliers while market transformation M&S believes that more progress manufacturing leather with The sourcing and marketing of will be achieved, and faster, the lowest energy, water, and sustainably sourced materials through industry collaboration waste footprint. Investing in creates business opportunities than competitive differentiation 50% 38% 83% 50% 70% sustainable manufacturing through enhanced brand therefore all opportunities relate techniques today will help the Biofuels Cattle products Palm oil Soy Timber reputation, ability to retain to influencing the direction of the sector combat risks from business with existing clients, retail and production sectors. develop business with new climate change. % of disclosers that have responded for 4+ years recognizing opportunities clients, attract and retain PrimeAsia Marks and talent in the workforce, reduce Leather Company Spencer Group costs, and attract financial investment. Sodexo 67% 77% 89% 82% 91% Acting in an environmentally Biofuels Cattle products Palm oil Soy Timber sensitive way is not only the The Sumitomo Forestry Group Without PEFC/FSC right thing to do but it also believes that by properly certification, we would delivers tangible benefits responding to regulations that On the opportunities from buying be precluded from a high such as protecting the prohibit the import of illegal timber sustainable raw materials proportion of tenders for ecosystems upon which will lead to an increased level At Green Century we believe projects/schemes. Public our products depend; of trust among customers, an companies that act to reduce their role must show sustaining our business contracts increase in business opportunities, 1. Cost reduction responsible sourcing of timber and reputation; achieving in deforestation could reduce key risks and an expansion of the trade 2. Motivated personnel and and sheathing. The profile of long-term profits and cost and enjoy competitive advantages. area for its timber distribution qualified workers responsible sourcing within advantages; improving business. 3. Tax advantages Lucia von Reusner the supply chain is increasing the economies of local 4. Higher market standard creation Shareholder Advocate Green and our ability to show this is communities, thereby Sumitomo 5. Consumer satisfaction Century Capital Management a positive. ensuring that our business, Forestry Co. 6. Responding to client’s needs in turn, prospers; benefitting 7. Anticipation of new future regulation Kingspan from new business 8. Increased credibility and trust Group 9. Accessibility to capital opportunities; risk prevention; 10. Enhanced reputation and the traceability of specific products. Sofidel Mondi 30 31 Join our participating companies Join our participating companies

Company name Country Commodities reported on Company name Country Commodities reported on Company name Country Commodities reported on

Agricultural Products Toppan Printing Co., Ltd. Japan Timber Packaged Foods & Meats / Brewers and Soft Drinks Cargill* USA Palm Oil, Soy Transcontinental Inc. Canada Timber, Soy PepsiCo, Inc. USA Timber, Palm Oil Grupo André Maggi Brazil Timber, Soy, Cattle Products, Biofuels Travis Perkins UK Timber, Cattle Products Pioneer Foods* South Africa Timber, Palm Oil, Soy Grupo JD Brazil Soy, Cattle Products Materials Sapporo Holdings Limited* Japan Palm Oil IOI Malaysia Palm Oil Ahlstrom Corporation Finland Timber Smithfield Foods, Inc. USA Timber Olam International Singapore Timber, Palm Oil Amcor Australia Timber Stonyfield Farm Inc USA Timber, Palm Oil, Soy, Biofuels Wilmar International Limited Singapore Palm Oil, Biofuels Asia Pulp & Paper Singapore Timber SunOpta Inc. Canada Timber, Palm Oil, Soy Energy BillerudKorsnäs* Sweden Timber, Biofuels The Hershey Company* USA Palm Oil Greenergy UK Biofuels Catalyst Paper Corporation Canada Timber Unilever plc UK Timber, Palm Oil, Soy, Cattle Products Neste Oil Oyj Finland Palm Oil, Soy, Cattle Products, Biofuels Danzer Switzerland Timber Wimm-Bill-Dann Foods Russia N/A** Food & Staples Retailing Domtar Corporation Canada Timber Retailing Boots UK UK Timber, Palm Oil, Soy, Cattle Products Evergreen Packaging Inc. USA Timber, Biofuels Best Buy Co., Inc. USA Timber Carrefour France Timber, Palm Oil, Soy, Cattle Products Holmen Sweden Timber, Biofuels Coop Genossenschaft Switzerland Timber, Palm Oil, Soy, Cattle Products Delhaize Group Belgium Timber, Palm Oil, Soy International Paper APPM Ltd. India Timber H&M Hennes & Mauritz AB* Sweden Timber, Palm Oil J Sainsbury Plc UK Timber, Palm Oil, Soy, Cattle Products, Biofuels International Paper Company USA Timber Inditex Spain Timber, Cattle Products Jerónimo Martins SGPS SA Portugal Timber, Palm Oil, Soy, Cattle Products Klabin S/A Brazil Timber Kingfisher UK Timber, Palm Oil, Cattle Products Kesko Corporation Finland Timber, Palm Oil, Soy, Cattle Products Mayr-Melnhof Karton Austria Timber Marks and Spencer Group plc UK Timber, Palm Oil, Soy, Cattle Products Koninklijke Ahold Netherlands Timber, Palm Oil, Soy, Cattle Products Aktiengesellschaft* Office Depot, Inc. USA Timber METRO AG Germany Timber, Palm Oil, Soy, Cattle Products MeadWestvaco Corp. USA Timber RONA inc. Canada Timber Migros Genossenschafts Bund Switzerland Timber, Palm Oil, Soy, Cattle Products, Biofuels Metsä Board Finland Timber Staples, Inc.* USA Timber Morrison Supermarkets UK Timber, Palm Oil, Soy, Cattle Products, Biofuels Mondi PLC UK Timber Williams-Sonoma Inc USA Timber Tesco UK Timber, Palm Oil, Soy, Cattle Products Nippon Paper Industries Co Ltd Japan Timber Woolworths Holdings Ltd South Africa Timber, Palm Oil, Soy, Cattle Products Wesfarmers Australia Timber, Palm Oil, Soy, Cattle Products, Biofuels Oji Holdings Corporation Japan Timber Textiles, Apparel & Luxury Goods Hotels, Restaurants & Leisure Rengo Co., Ltd. Japan Timber adidas AG Germany Timber, Cattle Products Alsea of Mexico Mexico Soy, Cattle Products Resolute Forest Products Inc. Canada Timber Burberry Group UK Timber, Palm Oil, Cattle Products Compass UK Timber, Palm Oil, Cattle Products RockTenn* USA Timber C & J Clark International Ltd UK Timber, Cattle Products McDonald’s Corporation USA Timber, Palm Oil, Soy, Cattle Products, Biofuels Sappi South Africa Timber Christian Dior France Timber, Palm Oil, Soy, Cattle Products Millennium & Copthorne Hotels UK Timber, Palm Oil, Soy, Cattle Products Smurfit Kappa Group PLC Ireland Timber LVMH France Timber, Palm Oil, Soy, Cattle Products Sodexo France Timber, Palm Oil, Soy, Cattle Products Stella-Jones Inc* Canada Timber Mulberry Group Plc* UK Timber, Cattle Products Media Household & Personal Products Stora Enso Oyj Finland Timber NIKE Inc. USA Timber, Cattle Products Avon Products, Inc. USA Timber, Palm Oil Sumitomo Forestry Co., Ltd.* Japan Timber PrimeAsia Leather Company USA Timber, Cattle Products Clorox Company* USA Timber, Palm Oil Sveaskog Sweden Timber, Biofuels Transportation Colgate Palmolive Company USA Timber, Palm Oil, Soy, Cattle Products SWM* USA Timber British Airways UK Timber, Palm Oil, Soy, Cattle Products, Biofuels Henkel AG & Co. KGaA Germany Timber, Palm Oil UPM-Kymmene Corporation Finland Timber Deutsche Post AG Germany Timber, Biofuels Johnson & Johnson USA Timber, Palm Oil, Soy, Cattle Products Weyerhaeuser Company USA Timber Eurostar UK Timber, Cattle Products KAO Corporation Japan Timber, Palm Oil Media FedEx Corporation USA Timber Kimberly-Clark Corporation USA Timber British Sky Broadcasting UK Timber Grupo Aeromexico SAB de CV* Mexico Timber, Cattle Products, Biofuels Kimberly-Clark de México Mexico Timber Lagardere S. C. A.* France Timber Nankai Electric Railway Co., Ltd. Japan Timber S.A.B. de C.V. News Corp* USA Timber SAS Sweden Biofuels L’Oréal France Timber, Palm Oil, Soy News UK UK N/A** UPS* USA Timber, Biofuels Natura Cosméticos S.A. Brazil Timber, Palm Oil Pearson UK Timber Virgin Atlantic Airways Ltd* UK Timber, Palm Oil, Soy, Cattle Products, Biofuels Oriflame Cosmetics AB Sweden Timber, Palm Oil Reed Elsevier Group UK Timber Utilities Reckitt Benckiser UK Timber, Palm Oil, Soy, Cattle Products Sanoma* Finland Timber Drax Group UK Timber SCA Sweden Timber Walt Disney Company USA Timber National Grid UK Timber, Biofuels Shiseido Co., Ltd. Japan Palm Oil Packaged Foods & Meats / Brewers and Soft Drinks Other Responding Companies Sofidel S.p.A.* Italy Timber Associated British Foods UK Timber, Palm Oil, Soy Daito Trust Construction Co., Ltd.* Japan Timber, Soy, Cattle Products The Hain Celestial Group, Inc. USA Timber, Palm Oil, Soy B&G Foods, Inc. USA Palm Oil, Soy, Cattle Products Fidelity National Information USA Timber, Palm Oil, Soy, Cattle Products, Biofuels Uni-Charm Corporation Japan Timber Chocoladefabriken Lindt & Switzerland Palm Oil Services* Industrials & Autos Sprüngli AG* Hewlett-Packard USA Timber Brambles Australia Timber, Palm Oil Cranswick UK Timber, Cattle Products Quanta Computer Taiwan Timber, Palm Oil, Cattle Products Croda International* UK Palm Oil, Soy, Cattle Products Danone France Timber, Palm Oil, Soy Dai Nippon Printing Co., Ltd. Japan Timber Greencore Group PLC Ireland Timber, Palm Oil, Cattle Products Fiat Italy Timber, Soy, Cattle Products Grupo Bimbo, S.A.B. de C.V. Mexico Timber, Palm Oil, Soy ITOCHU Corporation* Japan Timber, Palm Oil, Soy, Cattle Products, Biofuels Grupo Herdez* Mexico Timber, Soy Johnson Controls USA Timber, Palm Oil, Soy, Cattle Products, Biofuels Hillshire Brands Company* USA Timber, Palm Oil, Soy, Cattle Products Kajima Corporation* Japan Timber JBS S/A Brazil Timber, Soy, Cattle Products Kingspan Group PLC Ireland Timber Kellogg Company USA Timber, Palm Oil, Soy Kokuyo Co., Ltd.* Japan Timber Kirin Holdings Co Ltd Japan Timber, Palm Oil, Soy Marubeni Corporation* Japan Timber Maple Leaf Foods Inc. Canada Soy, Cattle Products Mitsubishi Corporation* Japan Palm Oil Marfrig Alimentos S.A. Brazil Timber, Soy, Cattle Products Saint-Gobain France Timber McCormick & Company, USA Soy Sekisui House, Ltd.* Japan Timber Incorporated Skanska AB Sweden Timber, Biofuels Mitsubishi Shokuhin Co., Ltd.* Japan N/A** Sojitz Corporation* Japan Timber Nestlé Switzerland Timber, Palm Oil, Soy, Cattle Products Bold = sector leader 2014 Stanley Black & Decker, Inc. USA Timber NH Foods Ltd. Japan Cattle Products * = new respondent in 2014 Taisei Corporation Japan Timber, Biofuels Orkla ASA* Norway Palm Oil ** = see another 32 33 Should you be participating? Should you be participating? Non-responding companies Non-responding companies

Company name Country Company name Country Company name Country Company name Country Company name Country Company name Country Consumer Discretionary Consumer Discretionary General Motors Company USA Polo Ralph Lauren Corporation USA Aryzta AG Switzerland Flowers Foods Inc USA Nong Shim South Korea Aaron`s Inc USA Genting Berhad Malaysia Pou Chen Corp. Taiwan Asahi Group Holdings, Ltd. Japan Fraser and Neave Singapore Nu Skin Enterprises Inc USA Accor France Geox Italy Prada Italy Astra Agro Lestari Tbk Pt Indonesia Fuji Oil Co., Ltd. Japan Nutreco Holding Netherlands Alpargatas SA Brazil Giordano International Ltd Hong Kong PSA Peugeot Citroen France Avi Ltd South Africa General Mills Inc. USA Parmalat Spa Italy Amazon.com Inc. USA GNC Holdings Inc USA PUMA SE Germany Axfood Sweden George Weston Limited Canada Petra Foods Ltd Singapore Ann Inc USA Golden Eagle Retail Group Ltd Hong Kong PVH Corp USA Bakrie Sumatera Plantations Tbk Indonesia Glanbia PLC Ireland Philip Morris International USA Anta Sports Products Ltd Hong Kong Graham Holdings Company USA Renault France Barry Callebaut AG Switzerland Godrej Consumer Products India Pick ‘n Pay Stores Ltd South Africa APN News & Media Australia Greene King United Kingdom Restaurant Group United Kingdom Beiersdorf AG Germany Golden Agri-Resources Singapore Pilgrims Pride USA Arcos Dorados Holdings Inc Argentina Grendene SA Brazil Royal Caribbean Cruises Ltd USA Big C Supercenter Thailand Goodman Fielder Australia Pinnacle Foods Group USA Arezzo & Co Brazil Gucci Group NV Italy S.A.C.I. Falabella Chile BİM BİRLEŞİK MAĞAZALAR A.Ş. Turkey GrainCorp Australia Pola Orbis Holdings Inc. Japan Asics Corporation Japan Guess ?, Inc. USA Sally Beauty Holdings Inc USA BINGGRAE Co. Ltd South Korea Greggs United Kingdom PPB Group Malaysia Astra International Indonesia Haining China Leather Market Co Ltd China Salvatore Ferragamo SpA Italy Booker Group United Kingdom Groupe Auchan France Premier Foods United Kingdom Audi AG Germany Harvey Norman Holdings Australia Schibsted ASA Norway BRF S.A Brazil Grupo Bafar Mexico Procter & Gamble Company USA Autogrill Spa Italy Hermes International France Scholastic Corporation USA Britannia Industries India Grupo Comercial Chedraui Mexico PT Musim Mas Indonesia Axel Springer SE Germany Hilton Worldwide, Inc. USA Sears Holdings Corporation USA British American Tobacco United Kingdom Grupo Nutresa S.A. Colombia PT PP London Sumatra Indonesia Tbk Indonesia Bed Bath & Beyond Inc. USA Home Retail Group United Kingdom Seven West Media Australia Britvic United Kingdom Gruppo Cremonini Italy PT Sumber Alfaria Trijaya Indonesia Bertelsmann Germany Honda Motor Company Japan Shangri-La Asia Hong Kong Bukit Darah Plc Sri Lanka Gudang Garam Indonesia Puregold Price Club Inc Philippines Bloomin’ Brands Inc USA Hongkong & Shanghai Hotels Ltd Hong Kong Shenzen Overseas Chinese Town Holdings China Bumitama Agri Ltd Indonesia H.J. Heinz Company USA PZ Cussons United Kingdom BMW AG Germany HUGO BOSS AG Germany Shinsegae South Korea Bunge USA Hap Seng Plantations Holdings Berhad Malaysia QL Resources Bhd Malaysia Bob Evans Farms Inc. USA Hyatt Hotels USA Singapore Press Holdings Singapore BW Plantation Tbk Pt Indonesia Heilongjiang Agriculture Co Ltd China Raia Drogasil SA Brazil Brinker International, Inc. USA IKEA Sweden Starbucks Corporation USA Calbee, Inc. Japan Henan Shuanghui Investment & China Raisio Oyj Finland Buffalo Wild Wings Inc USA Indian Hotels Co. India Starwood Hotels & Resorts Worldwide, Inc USA Campbell Soup Company USA Development (A) Rallye Sa France Burger King Worldwide USA Informa United Kingdom Steinhoff International Holdings South Africa Casino Guichard-Perrachon France Hengan Intl Group China Revlon USA Café de Coral Holdings Ltd Hong Kong Intercontinental Hotels Group United Kingdom Stella International Holdings Ltd Hong Kong Cencosud SA Chile Herbalife Ltd Cayman Islands Reynolds American Inc. USA Carnival Corporation United Kingdom Isetan Mitsukoshi Holdings Ltd. Japan Steven Madden Ltd USA Charoen Pokphand Foods PCL Thailand Hormel Foods USA Ruchi Soya India Caxton and CTP Publishers and Printers South Africa Izumi Co., Ltd. Japan Sun International Ltd South Africa China Agri-Industries Holdings Ltd China HOUSE FOODS GROUP INC. Japan S.C. Johnson & Son, Inc. USA Cheesecake Factory Bakery Inc. USA Jack in the Box Inc USA Takashimaya Company, Limited Japan China Foods Ltd Hong Kong Hypermarcas S/A Brazil Safeway Inc. USA Chipotle Mexican Grill USA jcpenney USA Tamedia AG Switzerland China Mengniu Dairy Company Limited Hong Kong IJM Plantations BHD Malaysia Salim Ivomas Pratama Indonesia Choice Hotels International, Inc. USA JD Group Ltd South Africa Target Corporation USA China Resources Enterprise China Imperial Tobacco Group United Kingdom Sampoerna Agro Indonesia Coach, Inc. USA John Wiley & Sons Inc USA Texas Roadhouse USA China Yurun Food Group Ltd Hong Kong Indofood Sukses Mak Tbk Pt Indonesia San Miguel Pure Foods Company Philippines Columbia Sportswear USA Jollibee Foods Philippines The Home Depot, Inc. USA Church & Dwight Co., Inc USA Industrias Bachoco SA Mexico Sanderson Farms Inc USA Compagnie Financière Richemont SA Switzerland Jubilant Foodworks Ltd India Tim Hortons Inc. Canada Chuying Agro-pastoral Co Ltd China Inner Mongolia Yili Industrial Group China Saputo Inc. Canada Cracker Barrel Old Country Store Inc USA Kering France Time Warner Inc. USA Cia. Brasileira de Distribuicao (CBD) Brazil ITC Limited India Sarawak Oil Palms Berhad Malaysia Crown Resorts Australia Kohl’s Corporation USA TJX Companies, Inc. USA Grupo Pao de Acucar Japan Tobacco Inc. Japan Seaboard Corporation USA Daily Mail & General Trust United Kingdom L Brands, Inc. USA TOD’S Italy CJ Cheiljedang South Korea J-Oil Mills Inc Japan Seven & I Holdings Co., Ltd. Japan Daimler AG Germany Las Vegas Sands Corporation USA Toyota Motor Corporation Japan Cloetta AB Sweden Keck Seng (Malaysia) Bhd Malaysia Shoprite Holdings Ltd South Africa Daphne International Holdings Ltd China Levi Strauss & Co. USA Tsogo Sun Holdings Ltd South Africa Coca-Cola Amatil Australia Kerry Group PLC Ireland Sinar Mas Agro Resources Indonesia Darden Restaurants, Inc. USA L’Occitane International S.A. Luxembourg TUI Travel United Kingdom Coca-Cola East Japan Co Ltd Japan Kikkoman Corporation Japan and Technology Tbk PT David Jones Australia Lotte Shopping South Korea Ulta Salon Cosmetics & Fragrance Inc USA Coca-Cola Enterprises, Inc. USA KOSE Corporation Japan Sipef NV Belgium Debenhams United Kingdom Lowe’s Companies, Inc. USA Urban Outfitters, Inc. USA Coca-Cola Femsa Sab-Ser l Mexico Kraft Foods USA SLC Agricola SA Brazil Deckers Outdoor Corp. USA Lumber Liquidators Holdings USA Valassis Communications Inc USA Coca-Cola West Co., Ltd. Japan Kroger USA Snyder’s-Lance Inc USA Dicks Sporting Goods, Inc. USA Macy’s, Inc. USA VF Corporation USA Colruyt Belgium Kuala Lumpur Kepong Malaysia Socfin Luxembourg Dillard’s Inc. USA Marriott International, Inc. USA Volkswagen AG Germany ConAgra Foods, Inc. USA Kulim Malaysia Bhd Malaysia Souza Cruz S.A. Brazil DineEquity Inc USA Marston’s PLC United Kingdom Wendy’s International USA Controladora Comercial Mexicana Mexico Lancaster Colony Corporation USA Standard Food Corporation Taiwan Dollar General Corporation USA Mattel, Inc. USA Wetherspoon United Kingdom Corbion Netherlands LAWSON, Inc. Japan Sun Art Retail Group Ltd Hong Kong Domino’s Pizza Group plc United Kingdom McGraw-Hill Education, Inc. USA WH Smith United Kingdom Costco Wholesale Corporation USA LG Household & Health Care South Korea Suntory Beverage & Food Japan Domino’s Pizza, Inc. USA Melco Crown Entertainment Ltd Hong Kong Whitbread United Kingdom CP ALL Pcl Thailand Lion Corporation Japan SUPERVALU INC. USA Don Quijote Holdings Co., Ltd. Japan Melia Hotels International SA Spain Wolverine World Wide Inc USA CVS Health USA Loblaw Companies Limited Canada Swedish Match Sweden DOUGLAS HOLDING AG Germany Meredith Corporation USA Wyndham Worldwide Corporation USA Dabur India India Lorillard Inc. USA Sysco Corporation USA Dr. Ing. h. c. F. Porsche AG Germany MGM Resorts International USA Wynn Resorts, Limited USA Dairy Crest Group United Kingdom Louis Dreyfus France The Co-Operative United Kingdom DSW Inc USA Michael Kors Holdings Ltd USA Yue Yuen Industrial Hong Kong Dairy Farm International Holdings Hong Kong M Dias Branco SA Brazil The J.M. Smucker Company USA Dunkin’ Brands Group USA Minor International PCL Thailand Yum! Brands, Inc. USA Dean Foods Company USA Magnit Russia The Spar Group Ltd South Africa Eagle Ottawa Canada Mitchells & Butlers United Kingdom Consumer Staples Dr Pepper Snapple Group Inc USA Marico India Tiger Brands South Africa Echo Entertainment Group Australia Mohawk Industries, Inc. USA Aarhuskarlshamn Sweden DuPont Nutrition & Health USA Mars USA Tingyi (Cayman Islands) Holdings Hong Kong El Puerto de Liverpool SAB de CV Mexico N Brown Group Plc United Kingdom Adecoagro Sa Luxembourg Ebro Foods SA Spain Massmart Holdings Ltd South Africa Tootsie Roll USA Euromoney Institutional Investor PLC United Kingdom Naspers South Africa Aeon Co., Ltd. Japan Edeka Zentrale Germany Mayora Indah Tbk PT Indonesia Toyo Suisan Kaisha, Ltd. Japan Fairfax Media Australia New York Times Company USA Agropalma Brazil Elizabeth Arden, Inc. USA McCain Foods USA USA Tradewinds Plantation Bhd Malaysia Family Dollar Stores, Inc. USA Next United Kingdom Ajinomoto Co.Inc. Japan Emami Ltd. India Mead Johnson Nutrition Company USA TSH Resources Bhd Malaysia Faurecia France NH Hoteles Spain Alimentation Couche-Tard Inc. Canada E-MART Co., Ltd South Korea Meiji Holdings Co Ltd Japan Tyson Foods, Inc. USA Foot Locker Inc USA Nissan Motor Co., Ltd. Japan Almacenes Éxito Colombia Emmi AG Switzerland Metcash Australia ÜLKER BİSKÜVİ SANAYİ A.Ş. Turkey Ford Motor Company USA Nordstrom, Inc. USA Almarai Company Ltd Saudi Arabia Estee Lauder Companies Inc. USA Metro Inc. Canada UNFI USA Formosa International Hotels Taiwan Oriental Land Co Ltd. Japan Altria Group, Inc. USA Ezaki Glico Co., Ltd. Japan Mondelez International Inc USA Uni-president Enterprises Taiwan Fossil, Inc. USA PanaHome Corporation Japan AmorePacific Group South Korea FamilyMart Co., Ltd. Japan New Britain Palm Oil Papua New Guinea United Biscuits United Kingdom Galaxy Entertainment Group Hong Kong Panera Bread Co. USA Anglo-Eastern Plantations Plc United Kingdom Felda Global Ventures Malaysia Nichirei Corporation Japan United International Enterprises Limited Denmark Gannett Co., Inc. USA Papa John’s International Inc USA Anheuser Busch InBev Belgium Femsa - Fomento Economico Mexicano Mexico Nisshin Seifun Group Inc. Japan Universal Robina Philippines Gap Inc. USA Petsmart, Inc. USA Archer Daniels Midland USA First Resources Ltd Singapore Nissin Foods Holdings Co., Ltd. Japan Vinda International Holdings Ltd Hong Kong 34 35 Should you be participating? Investor signatories Non-responding companies

Company name Country Company name Country Company name Country Consumer Discretionary 240 financial institutions Erste Asset Management Northward Capital Wal Mart de Mexico Mexico Sime Darby Bhd Malaysia Ethos Foundation Northwest and Ethical Investments L.P. (NEI Investments) Walgreen Company USA Singapore Airlines Singapore with assets of US$15 Etica SGR OceanRock Investments Inc. Evangelical Lutheran Church in Canada Pension Plan for Clergy Oppenheim & Co Limited Wal-Mart Stores, Inc. USA Sumitomo Corporation Japan trillion were signatories and Lay Workers Opplysningsvesenets fond (The Norwegian Want Want China Holdings Ltd. Hong Kong Thai Airways Intl. Thailand to the CDP 2014 forests Evangelical Lutheran Foundation of Eastern Canada Church Endowment) Whole Foods Market, Inc. USA TNT Express Netherlands information request dated F&C Asset Management Panahpur Woolworths Limited Australia Toda Corporation Japan Federal Finance Park Foundation 1st February 2014 Fédéris Gestion d’Actifs Pax World Funds Yakult Honsha Co. Ltd. Japan Toppan Forms Co., Ltd. Japan Finance S.A. Pensioenfonds Vervoer Yamazaki Baking Co. Ltd. Japan TÜRK HAVA YOLLARI A.O. Turkey Financiere de l’Echiquier Pensionsmyndigheten Energy United Continental Holdings USA 3Sisters Sustainable Management LLC FIPECq - Fundação de Previdência Complementar dos Empregados PGGM Active Earth Investment Management e Servidores da FINEP, do IPEA, do CNPq Pictet Asset Management SA United Kingdom BP US Airways USA Addenda Capital Inc. First Affirmative Financial Network Pinstripe Management GmbH Chevron Corporation USA Virgin Australia Holdings Australia Advanced Investment Partners First Commercial Bank Portfolio 21 Investments ConocoPhillips USA Volvo Sweden Alcyone Finance First State Investments Progressive Asset Management, Inc Alliance Trust Folksam Psagot Investment House Ltd Exxon Mobil Corporation USA Materials Amundi AM Fondo Pensione Gruppo Intesa Sanpaolo - FAPA Railpen Investments Petróleo Brasileiro SA - Petrobras Brazil Asia Pacific Resources International Singapore Antera Gestão de Recursos S.A. FRANKFURT-TRUST Investment Gesellschaft mbH Rathbone Greenbank Investments Royal Dutch Shell Netherlands Limited (APRIL) APG Group Friends Fiduciary Corporation Real Grandeza Fundação de Previdência e Assistência Social Arisaig Partners Fundação Forluminas de Seguridade Social - FORLUZ Representative Body of the Church in Wales Total France Barito Pacific Indonesia Arjuna Capital General Equity Group AG River Twice Capital Advisors, LLC Valero Energy Corporation USA BASF SE Germany Australian Ethical Investment Generation Investment Management Robeco Financials Boise Packaging & Newsprint, L.L.C. USA Aviva German Equity Trust AG RLAM Boustead Holdings Berhad Malaysia Boral Australia Avaron Asset Management AS Global Forestry Capital S.a.r.l. Rockefeller Asset Management Aviva Investors Globalance Bank Rothschild & Cie Gestion Group Daiwa House Industry Co., Ltd. Japan Canfor Corporation Canada AXA Group GOOD GROWTH INSTITUT für globale Vermögensentwicklung mbH Russell Investments Plum Creek Timber Co. Inc. USA Celulosa Arauco y Constitucion SA Chile AXA Investment Managers Good Super RobecoSAM AG Potlatch Corp USA China Resources and Transport Group Hong Kong Baillie Gifford & Co. Government Employees Pension Fund (“GEPF”), Republic Samsung Fire & Marine Insurance BAE Systems Pension Scheme of South Africa Sarasin & Partners USA Cikel Brazil Rayonier Inc. Banco do Brasil Previdência Greater Manchester Pension Fund Schroders Industrials Clearwater Paper USA Banco Nacional de Desenvolvimento Economico e Social (BNDES) Green Century Capital Management Scottish Widows Investment Partnership Adani Enterprises India Columbia Forest Products USA Banesprev – Fundo Banespa de Seguridade Social Groupe Investissement Responsable Inc. Servite Friars Bank Sarasin & Cie AG GROUPE OFI AM Shinkin Asset Management Co., Ltd Aeroflot Russia CRH Plc Ireland Bank Vontobel Grupo Santander Brasil Sisters of St. Dominic Air Berlin PLC & Co. Luftverkehrs KG Germany Daio Paper Corporation Japan Bankinter Harbour Asset Management Società reale mutua di assicurazioni Air Canada Canada Dalhoff Larsen & Horneman A/S (DLH) Denmark Banque Degroof Hazel Capital LLP SNS Asset Management BASF Sociedade de Previdência Complementar Air China Limited China DS Smith Plc United Kingdom Henderson Global Investors Smith Pierce, LLC Blom Investment Bank HESTA Super Solaris Investment Management Air France - KLM France Duratex S/A Brazil Blumenthal Foundation Hermes Fund Managers Sompo Japan Insurance Inc. Alaska Air Group USA Empresas CMPC Chile Boston Common Asset Management, LLC Impax Asset Management Group plc Soprise! LLP Alliance Global Group Inc Philippines Ence Energia y Celulosa SA Spain Breckinridge Capital Advisors Ilmarinen Mutual Pension Insurance Company Sonen Capital LLC British Airways Pensions Independent Planning Group Spring Water Asset Management, LLC American Airlines Group Inc USA FIBRIA Celulose S/A Brazil BSW Wealth Partners Inflection Point Capital Inflection Sprucegrove Investment Management Ltd Armstrong World Industries Inc. USA Fletcher Building New Zealand CAI Corporate Assets International AG Inflection Point Capital Management SPF Beheer bv Asiana Airlines South Korea Georgia-Pacific USA California State Teachers’ Retirement System (CalSTRS) Insight Investment Management (Global) Ltd StatewideSuper Calvert Group, Ltd. Instituto Infraero de Seguridade Social - INFRAPREV Storebrand ASA Balfour Beatty United Kingdom Glatfelter Airlaid Ltée Canada CareSuper Interfaith Center on Corporate Responsibility (ICCR) Strathclyde Pension Fund Bidvest Group Ltd South Africa Glencore Xstrata plc Switzerland Caser Pensiones E.G.F.P Invesco Perpetual Uk Smaller Companies Trust Sustainable Insight Capital Management Bolloré France Graphic Packaging USA Catholic Super Investec plc Sustainable Development Capital LLP Cbus Superannuation Fund Jessie Smith Noyes Foundation Svenska Kyrkan, Church of Sweden Bunzl plc United Kingdom Hallmark Cards, Inc. USA CCLA Investment Management Ltd Kaiser Ritter Partner Privatbank AG (Schweiz) Svenska Kyrkans Pensionskassa Carillion United Kingdom Hokuetsu Kishu Paper Co., Ltd. Japan Cedrus Asset Management Kagiso Asset Management Swisscanto Holding AG Cathay Pacific Airways Limited Hong Kong Huhtamäki Oyj Finland Central Finance Board of the Methodist Church Kepler Cheuvreux Swift Foundation China Airlines Taiwan Jaya Tiasa Malaysia Ceres KeyCorp Sycomore Asset Management Christian Brothers Investment Services Inc. Kleinwort Benson Investors TD Asset Management (TD Asset Management Inc. China Eastern Airlines Co., Ltd. China Kapstone Paper And Packaging USA Chinatrust Financial Holding Co Limited KPA Pension and TDAM USA Inc.) China Southern Airlines China Koninklijke DSM Netherlands Christopher Reynolds Foundation Legal and General Investment Management Terra Global Capital, LLC Company Limited Lee & Man Paper Manufacturing Hong Kong Church of England Pensions Board LGT Capital Partners The Bullitt Foundation Christian Super Local Authority Pension Fund Forum The Children’s Investment Fund Foundation Japan Chiyoda Corporation Louisiana-Pacific USA Church Commissioners for England Local Government Super The Council of Lutheran Churches Delta Air Lines USA Nine Dragons Paper Industries Hong Kong The Clean Yield Group London Pensions Fund Authority The Environmental Investment Partnership LLP Deutsche Lufthansa AG Germany Norbord Inc. Canada Climate Change Capital Group Ltd Marc J. Lane Investment Management, Inc. The Joseph Rowntree Charitable Trust ClearBridge Investments Matrix Asset Management KEVA easyJet United Kingdom Packaging Corporation Of America USA CM-CIC Asset Management Mercy Investment Services, Inc. The New School Gol Linhas Aereas Inteligentes S.A. Brazil Portucel Empresa Produtora Portugal Colonial First State Global Asset Management Limited Mistra, Foundation for Strategic Environmental Research The Presbyterian Church in Canada Hutchison Whampoa Hong Kong Samling Global Hong Kong CommInsure MN The Russell Family Foundation Commonwealth Superannuation Corporation Momentum Manager of Managers (Pty) Ltd The Sustainability Group Iberian Airlines United Kingdom Siam Cement Thailand Compton Foundation, Inc. Monega Kapitalanlagegesellschaft mbH Threadneedle Asset Management Jardine Matheson Hong Kong Sonoco Products Company USA Connecticut Retirement Plans and Trust Funds Mongeral Aegon Seguros e Previdência S.A. Trillium Asset Management, LLC Jetblue Airways Corporation USA Suzano Papel & Celulose Brazil Conser Invest Mutual Insurance Company Pension-Fennia Tri-State Coalition for Responsible Investment Korean Air South Korea Ta Ann Holdings Malaysia Co-operative Asset Management Nathan Cummings Foundation, The Triodos Bank Cyrte Investments B.V. National Australia Bank Trusteam Finance LATAM Airlines Group SA Brazil West Fraser Timber Co. Ltd. Canada Delta Lloyd Asset Management National Grid UK Pension Scheme Union Investment Privatfonds GmbH Malaysia Airlines Malaysia Utilities Development Bank of Japan Inc. Natural Investments LLC Unionen Masco Corporation USA ACCIONA S.A. Spain Dexia Asset Management National Pensions Reserve Fund of Ireland UNISON staff pension scheme DLM INVISTA ASSET MANAGEMENT S/A Nelson Capital Management, LLC Veris Wealth Partners Mitsui & Co., Ltd. Japan American Electric Power Company, Inc. USA Domini Social Investments LLC New Forests VicSuper Noble Group Hong Kong Enel Green Power SpA Italy Doughty Hanson & Co. New Amsterdam Partners LLC Vinva Investment Management Obayashi Corporation Japan GDF Suez France East Capital AB Neuberger Berma Walden Asset Management, a division of Boston Trust & EBG Capital Newground Social Investment Investment Management Company OfficeMax Incorporated USA Northland Power Inc Canada Ecclesiastical Investment Management Newton Investment Management Limited WHEB Asset Management Qantas Airways Australia EEA Group Ltd Norges Bank Investment Management (NBIM) Zevin Asset Management RR Donnelley & Sons Co USA Eko NorthStar Asset Management, Inc Zurich Cantonal Bank Environment Agency Active Pension fund Ryanair Holding PLC Ireland Northern Ireland Local Government Officers’ Superannuation Dana Investment Advisors Environmental Investment Services Asia Committee (NILGOSC) Church of England Shimizu Corporation Japan Erik Penser Fondkommission 36

CDP is a not-for-profit organization. If you would like to support our vital work on deforestation and forest risk commodities through donations or sponsorship opportunities, please email the Head of CDP’s forests program: [email protected].

We are grateful to receive core funding for the project from:

Principal advisor on forests and forest risk commodities Christiana Figueres Executive Secretary of the Our further thanksUN is Framework extended to: Convention on Climate Change (UNFCCC) JMG Foundation thewaterloofoundation*

Our sincere thanks are extended to the following individuals and organizations: Barbara J. Bramble and Nathalie Walker at the National Wildlife Federation, Pedro Burnier, the International Sustainability Unit, Andrew Mitchell and staff at the Global Canopy Programme, Andrew Prosser, Daniel Sanchez and Eduardo Jr. Arenas at Reforestamos México.

CDP’s forests program was first pioneered by the Global Canopy Programme (www.globalcanopy.org) which remains a prime funder for the program and acts as the principal advisor on forests and forest risk commodities to CDP. CDP Contacts CDP Board of Trustees CDP Advisors

Paul Dickinson Chairman: Alan Brown Lord Adair Turner Executive Chairman Wellcome Trust Rear Admiral Paul Simpson James Cameron Neil Morisetti CB Chief Executive Officer Climate Change Capital & ODI

Frances Way Ben Goldsmith CDP’s forests program Co-Chief Operating WHEB Officer Katie McCoy Chris Page Head of Forests Sue Howells Rockefeller Philanthropy Co-Chief Operating Advisors Roberta Iley Officer Senior Project Officer Jeremy Smith Marcus Norton Lena Meintrup Chief Partnerships Officer Takejiro Sueyoshi Technical Officer

Daniel Turner Tessa Tennant Rafel Servent Head of Disclosure Project Officer Martin Wise James Hulse Relationship Capital Partners Head of Investor Initiatives Collaborators

Andrew Prosser CDP Head office Capitalactiv 3rd Floor, Quadrant House, 4 Thomas More Square, Thomas More Street, London, E1W 1YW United Kingdom Tel: +44 (0) 2079705660/ +44 (0) 2038183900 @cdp www.cdp.net [email protected]

Global Partners

Global Implementation Partner