In a conservation economy, growth Ecotrust Canada Annual Report 2006

is about‘getting rich slow.’

It is about ensuring that companies and communities profit on the interest, not capital, of nature. That means harvesting trees without destroying the rainforest ecosystem. It means fishing without erasing the very stocks that feed us. It means tapping into energy sources that are clean and renewable.

But most of all, a conservation economy is about people — where they live, how they prosper. People, place and profit. That’s the conservation economy.

Ecotrust Canada Annual Report 2006 / Page 1 Executive letter

A Conscious Economy

Al Gore’s film, An Inconvenient Truth, has arguably had a more transformative effect on how people think about the environment than any other single event of this generation.

Now the hard part starts: turning awareness into action. That’s because “action” is often viewed only through the lens of consumerism. Drive a smarter car, buy a carbon offset, screw in a fluorescent light bulb — all of these actions worthy, but somehow not quite enough.

If people — and by extension the governments we elect, and the companies we invest in or work for — all now have a heightened consciousness about the environment, why can’t we have a more conscious economy? Why is there such a yawning gap between the economy we want — one that delivers clean air, clean water, healthy food, good jobs and time to share with families — and an economy that overheats the planet and imperils us all?

In a word, investment. With rare exceptions, there is vastly too little capital invested in enterprises that strive not just for a financial return, but for social and environmental returns as well. Without a fundamental shift in how we view money, the gap between what we want and what we get from our economy will continue to grow.

As we envision a conservation economy, we realize we are also striving for a conscious economy — one where people invest their money, save their money and, yes, spend their money carefully, intentionally, consciously.

At Ecotrust Canada, we take encouragement from Europe’s Triodos Bank, and its vision of the future of finance. “If money makes the world go around, why not turn it in the right direction?” Triodos asks. It champions “conscious investment” in businesses that make a difference, which enables customers and consumers to do so, too.

Closer to home, we take heart from the Great Bear Rainforest agreements that have brought new capital to our coast — a conscious effort to invest in conservation and communities. We applaud investments in leadership, as in the selection of Guujaaw, president of the Council of the Haida Nation, as winner of the 2006 Buffett Award for Indigenous Leadership. And we make investments of our own — in the stewardship future of Cougar Annie’s Garden, in new fishing, forestry and energy enterprises, and in our new subsidiary, Ecotrust Canada Capital.

As befits an organization whose resources are modest and whose ambitions are boundless, we rely on many partners to achieve our goals. As such, we take comfort from the fact that a lot of people seem to want the same thing we do. A conscious, indeed a conservation economy.

Jacqueline Koerner Ian Gill Chair President

Ecotrust Canada Annual Report 2006 / Pages 2 / 3 hooked on conservation

Groundfish are some of the slowest-growing fish on the B.C. coast. Quillback rockfish have been known to live to 76 years and red snapper to 117 years. A female spiny dogfish reaches reproductive maturity after 19 years. A sustainable fishery of these long-lived species demands the highest a thousand-year conservation standards in the world. In 2006, Ecotrust Canada partnered with a group of Island fishermen to found and finance the Pacific Coast Fisheries Conservation Company. This unique enterprise owns business plan fish quota and leases it to member-fishermen to improve their sustainable fishing practices. These hook-and-line fishermen represent a sea change in how we harvest our ocean’s bounty. Conservation doesn’t have to be about stopping logging. Instead, think about a thousand-year business plan that generates value from our forests for generations to come. That’s what ecosystem-based management (EBM) can accomplish. This new eco-forestry approach minimizes the risk to the ecosystem first, and then designs appropriate logging to suit. The rainforest ecosystem remains fully functional after low-impact logging. Ecotrust Canada is a leader in understanding and implementing EBM forestry on the B.C. coast. We have established partnerships in Clayoquot Sound, the Great Bear Rainforest and Whistler to prove that EBM forestry works for communities and conservation. growing wisely

Nestled between the wet coast and dry interior plateau — a transition zone known as the Sea to Sky corridor — the Lil’wat people are witnessing unprecedented growth in their traditional territory. They receive some eighty referrals for development projects each year. The population in neighbouring Pemberton has ballooned and the region will host the 2010 Winter Olympics. Ecotrust Canada helped the Lil’wat Nation in Mount Currie launch a new Geographic Information Systems or GIS Program to map out the development pressures in their territory. Through GIS and proper planning, the Lil’wat are making more informed decisions about the use of the rivers, lands and wilderness in their territory.

going against the grain

Alfred Butterfield and Dali Lin are going against the grain in more ways than one. While most of B.C.’s forest companies are building bigger and faster mills, these two business partners launched TF Sawmill, a small specialty mill in Cumberland that operates at a fraction of the speed of most industrial mills. Its niche is quality, not quantity. As they buck conventional wisdom, TF Sawmill bucks logs differently too. Logs are cut from the inside-out creating highly stable lumber of exceptional appearance. TF Sawmill is just one of the innovative enterprises that Ecotrust Canada financed through our business lending program this year. 06 Program highlights

Business Lending Real Estate

Transforming progressive ideas into profitable enterprises is at the heart of building Our work this year centred on feasibility studies for a new administrative a conservation economy. One way we do this is by providing loans to small- and building for the Tsleil Waututh Nation in North Vancouver and a downtown medium-sized enterprises. This year our new subsidiary, Ecotrust Canada Capital, redevelopment project for the ‘Namgis Nation in Alert Bay. We also produced a - - made 15 new loans totaling $1.7 million to entrepreneurs who incorporate study on real estate opportunities in Clayoquot Sound for the Nuu-chah-nulth ecological values in their operations, and who promote jobs and diversification in Central Region Management Board. rural and Aboriginal communities. Some 354 people were employed in full-time, part-time and seasonal jobs by businesses financed by our lending program in Aboriginal Mapping Network 2006. More than a quarter of our portfolio is made up of Aboriginal entrepreneurs, Revamped and relaunched, the Aboriginal Mapping Network (AMN) has a bold including a new loan to Taku Wild, a fisheries enterprise owned by the Taku River new look and many new functions including discussion forums, a network user Tlingit First Nation. map and job postings. The website is now based on open-source software and allows mappers from and around the world to share best GIS & Planning practices in Indigenous people’s mapping methodologies. Launched in 1998 as Our work this year shifted in two telling directions in the Great Bear Rainforest on an online resource for local First Nations, the AMN has expanded into a global the Central Coast. First, we began working with the Heiltsuk Nation in Bella Bella hub of Aboriginal know-how. From Africa to Ahousat, more than 800 users to implement their land-use plan in two distinct watersheds. Second, modeled on across six continents have registered with the AMN (see map below). For more the success of this terrestrial work, the Heiltsuk marine-use planning process information visit www.nativemaps.org. completed initial work on the community’s vision, and on data collection and research. Ecotrust Canada also developed the first phase of the Lil’wat’s Indian Reserve plan in Mount Currie and built an electronic catalogue to better manage Aboriginal Mapping Network their geographic information. The catalogue’s innovative software was then shared Worldwide registered users with the Haida and Heiltsuk. We continued to provide support to the Haida Mapping Office and built a GIS model of biophysical diversity for Haida Gwaii.

Tourism

For the past 20 years, Peter Buckland has doggedly worked to reclaim Cougar Annie’s Garden and to build the Temperate Rainforest Field Study Centre in Clayoquot Sound. In 1999, he founded the nonprofit Boat Basin Foundation to maintain and operate the 117-acre property located above Hesquiat Harbour 50 km northwest of Tofino. This year Ecotrust Canada became a stewardship partner to help the Foundation deliver research, educational and cultural tourism offerings at the Field Study Centre and historic garden. For more information visit www.boatbasin.org.

Ecotrust Canada Annual Report 2006 / Pages 8 / 9 06 Program highlights

Fisheries

In partnership with six commercial fishermen, Ecotrust Canada founded and New Aiyansh financed the Pacific Coast Fisheries Conservation Company, an innovative business model that promotes community-based fisheries and conservation. The company owns a pool of groundfish quota which its member-fishermen lease at a fair price to better enable them to meet new fisheries conservation rules. The fishermen Masset Prince Rupert Terrace have also agreed to a “conservation covenant” furthering their commitment to sustainable fishing practices. We are now developing software to improve the efficiency of recording catch and trading quota in B.C.’s integrated groundfish fishery. This year we also worked on marine monitoring programs with the ‘Namgis Nation in Alert Bay and Tsleil Waututh Nation in Burrard Inlet, and - - provided corporate governance advice for Qum’ul Seafoods Inc., a new enterprise British Columbia launched by the Hul’qumi’num Treaty Group on .

Forestry

Ecotrust Canada is a leader in developing and implementing ecosystem-based management (EBM) for forestry on the B.C. coast. EBM ensures that the entire forest ecosystem remains fully functional and protected even after logging. This Bella Bella Bella Coola year we signed a landmark contract to manage Iisaak Forest Resources, a First Nations-owned forestry operator in Clayoquot Sound. Certified by the Forest Namu Stewardship Council, Iisaak is one of the pioneers in EBM forestry. Our goal is to meet the highest environmental standards for forestry in the province, increase the value of spin-off benefits to the local communities and boost the company’s Ecotrust Canada financial bottom-line. Program Activity We also partnered with the Heiltsuk Nation to design and implement EBM forestry Fisheries Port Hardy in their territory in the Great Bear Rainforest, and worked on EBM with the Haida Alert Bay as well. Other projects this year included completing an FSC woodlot plan for the Aquaculture Tsleil Waututh Nation in Indian Arm and a value-added feasibility study for the GIS and Planning ‘Na-mgis Nation in Alert Bay. - Tahsis Mt. Currie Lending Campbell River Whistler

Energy Powell River Hesquiat Comox Valley Squamish Tourism Sechelt Parksville Forestry Tofino Vancouver Real Estate Ucluelet Cowichan Valley

N Ladysmith

Victoria 0 25 50 100 150

Kilometres

Ecotrust Canada Annual Report 2006 / Pages 10 / 11 the richest place on earth

Cougar Annie’s Garden is rich in tales. Ada Annie Rae-Arthur raised eight children, outlasted four husbands and reportedly shot more than eighty cougars during her seventy years living in the wilds of Clayoquot Sound. This year Ecotrust Canada became a stewardship partner in the Boat Basin Foundation which owns and operates the pioneer heritage site. Ecotrust Canada 06 Financials* Summarized Consolidated Statement of Activities and Surplus

Revenues and Assets: 2002–2006 For the year ended December 31, 2006 2006 2005 Unrestricted Temporarily Total restricted $8,000,000 Revenues, gains, and other support Organization grants $ 104,287 $ 172,714 $ 277,001 $ 23,992 $7,000,000 Individual contributions 165,464 63,457 228,921 77,889 Foundation contributions 863,638 2,772,826 3,636,464 2,576,217 $6,000,000 Other contributions 3,132 74,269 77,401 64,041 Training, cost recovery & other 412,719 – 412,719 443,633 $5,000,000 Loan fees and interest 236,919 – 236,919 221,910 1,786,159 3,083,266 4,869,425 3,407,682 $4,000,000 Satisfaction of program restrictions 1,163,798 (1,163,798) – – $3,000,000 2,949,957 1,919,468 4,869,425 3,407,682

$2,000,000 Expenditures Sector Programs $1,000,000 Aquaculture 56,233 – 56,233 47,806 Energy 10,841 – 10,841 15,489 Forestry 266,854 – 266,854 268,349 2002 2003 2004 2005 2006 Real Estate 240,601 – 240,601 28,302

Revenues Assets Tourism 105,934 – 105,934 200,785 Fisheries 118,759 – 118,759 158,237 General Programs 536,703 – 536,703 485,436 Program Expenditures 2006 Economic Development 876,010 – 876,010 882,145 Natural Capital Fund 2% Planning and Information Services 539,178 – 539,178 571,109 Administration Enterprise Fund 2% Administration 222,328 – 222,328 167,045 & Fundraising 18% Fundraising 414,255 – 414,255 402,504 Natural Capital Fund – 84,576 84,576 (7,658) Planning & Enterprise Fund 88,416 – 88,416 31,592 Information Sector Programs 22% 3,476,112 84,576 3,560,688 3,251,141 Services 15% Surplus of (expenditures over revenues) revenue over expenditures (526,155) 1,834,892 1,308,737 156,541

Surplus, beginning of year 482,291 3,640,132 4,122,423 3,965,882 General Programs 15% (Deficit) surplus, end of year $ (43,864) $ 5,475,024 $ 5,431,160 $ 4,122,423 Economic Development 25%

* Full audited financial statements can be viewed at www.ecotrustcan.org Ecotrust Canada Annual Report 2006 / Pages 14 / 15 06 Donors Board of Directors Staff

Individuals Brenda Reid-Kuecks Prata Investments Inc. Organizations/Government Ecotrust Canada Kristina Barr, Operations Assistant Anonymous Nancy Schaub Cindy Reid Alchemy Foundation Michelle Bonner, Development Associate A-in-chut (Shawn Atleo), Ahousaht, BC Don F. Archibald Robert M. Shaunessy Heide Reid Alliance Projects David Bremner, Manager of Grant Development Spencer B. Beebe (Vice Chair), Portland, OR Kristina Barr Derek Smith Susan J. Sadoway Anonymous Michael Cabrita, IT Administrator Spencer Beebe Pieter van Gils Salon J. Hairstudios Bullitt Foundation Leah D. George-Wilson, North Vancouver, BC Lori Cribbs, Loan Client Account Representative Allan Waisman Lesley Sheehan Betsy & Winslow Bennett Gilbert and Ildiko Butler Foundation Ian Gill, Vancouver, BC Ian Gill, President Michelle Bonner Bryan Williams Ship Shape Carpentry Connor, Clark & Lunn Foundation Bill Girard, Investment Manager Ronald Grzywinski, Chicago, IL George Butterfield Michael Woods Rosalind Shortt Donner Canadian Foundation Yvette Harrison, Director of Finance Barry Campbell Abby Yellen Lois Slotten Dream Designs Byron Horner, Vancouver, BC Jessica Hawkins, CED Project Planner

Yvon Chouinard E.D. Sollitt Endswell Foundation James Hume, Calgary, AB Jane Hennessey, Director of Development & Communications Sandra and Sterling Aveda Earth Month Eva A. Stammer Ford Foundation Clarren Donors Jacqueline Koerner (Chair), Vancouver, BC Philip Hogan, Central Coast Planning Analyst Neeltje Stavast The FSC Global Fund Rhonda Eager alternative wares Doug Hopwood, Registered Professional Forester Barbara Strachan Foundation for Youth Maureen Lunn, Vancouver, BC John R. Evans Aveda Greg Kehm, Information Services Manager Studio 103 Government of Canada David Martin, Vancouver, BC Robert Friedman Mary Biyak Dionne Kilian, Credit Manager Jill Sydneysmith The William and Flora Hewlett Foundation Ian Gill Blush Salon & Spa Eric (Ric) Young, Toronto, ON Rick Kohn, Chief Financial Officer Steven Tieu The Illahie Foundation Bill Girard Brenda Bowes Brenda Kuecks, Director of Community Programs Susan E. Vasilev International Development Research Centre Ronald Grzywinski Paul Ceyssens Eliana MacDonald, Cartographer / GIS Trainer Marika Veysey Richard Ivey Foundation Ecotrust Canada Capital Yvette Harrison Chakra Holdings Inc. Jill Morton, Program & Operations Assistant Victoria Bug Zoo The Kahanoff Foundation John Berdes, Ilwaco, WA Jane Hennessy Larissa L. Domay Mark Munn, Development Associate Karin Watson John C. Kerr Family Foundation Jean Jordan Eco-Chic Dominque Collin, Victoria, BC Paul Ng-Stewart, Investment Manager Beverley A. Wells Koerner Foundation Gregory J. Kehm Lisa Edwards Karen Peachey, Director of Community Programs Law Foundation of British Columbia Ian Gill, Vancouver, BC Debbie & Jonathan Klein Sharon Evans Marie-Claire Seebohm, Project Services Manager Program Related Lazar Foundation Bill Young, Toronto, ON Jacqueline Koerner Diane Fryer Investments Jen St. Denis, Office Administrator The C.P. Loewen Family Foundation Inc. Rick Kohn Headwest Designs Ltd. Calvert Foundation Eric Enno Tamm, Communications Manager Marisla Foundation Lucy Lee Hana L. Hermanek Endswell Foundation Pieter van Gils, Director of Economic Development The Gordon and Betty Moore Foundation Stuart R. Loewen David Jardine The Illahie Foundation Mike Vitt, Forestry Program Manager Moore Family Foundation Larry & Maureen Lunn Juliette’s Hair Studio Maytree Foundation Niki Westman, Program & Financial Assistant Murray-Darling Basin Commission Sandy Mactaggart Renee Justesen Monarch Community Nina Winham, Vice-President Fund Oak Foundation Robert McGill Andrea Lloyd Abby Yellen, Executive Assistant to the President Working Opportunity Patagonia David J. Martin Luna Aveda Concepts Fund Real Estate Foundation of British Columbia Salon Mark R. Munn Rockefeller Brothers Fund Tina Masse Paul Ng-Stewart Service Canada Sue Moore Karen Peachey Social Activist Law Student Association Alfred Morgan Penny & Peter Pearse Tides Canada Foundation Margaret Oldroyd Dennis Perry Vancity The Parkers Weyerhaeuser Paul Da Costa Institute Wilburforce Foundation Lois D. Peterson Kathryn Phillips

Place FSC logo here

Photo credits: Chris Cheadle, cover; Eric Enno Tamm, pages 3, 6, 7, 13, 14; Adrian Dorst, page 5; Gary Fiegehen, page 8 Revenue Canada Charitable Registration Number 89474 9969 RR0001

Ecotrust Canada Offices Vancouver Office: Suite 200 - 1238 Homer Street Vancouver, B.C. V6B 2Y5 Phone: (604) 682-4141 Fax: (604) 682-1944 Alberni-Clayoquot Office: PO Box 491 Tofino, BC V0R 2Z0 Phone: (250) 725-2536 Fax: (250) 725-2537 Comox Valley Office: Suite 200 - 580 Duncan Avenue Courtenay, B.C. V9N 2M7 Phone: (250) 898-8770 Fax: (250) 898-8330 [email protected] www.ecotrustcan.org