Annual Report 2005

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Annual Report 2005

SQN job no: 0510046 Client: Rainforest Alliance Project: Annual Report 2005 Date: 05APR06 Stage: draft 05, outside front cover Finished size: 11 x 8.5 inches Flat size: 22 x 8.5 inches Ink: 4/2 + emboss annual_draft_05.qxp 5/31/2006 4:32 PM Page 1

ll of us at the Rainforest Alliance take A inspiration from the story of the Las Lajas coffee cooperative in El Salvador. When we first began working with the 380 cooperative members, they — like many coffee farmers in El Salvador — were cultivating beans beneath tropical trees that provide some of the last refuge for wildlife in this tiny Central American republic. But some five years ago, as the price for coffee fell around the world, forcing many small farmers to abandon their holdings, the Las Lajas cooperative sought Rainforest Alliance certification in the hopes that the certified seal would enable them to sell their coffee at a premium. The farmers stopped using dangerous pesticides, started soil conservation and recycling programs, upgraded housing, instituted regular training programs, improved the school and health clinic, planted thousands of seedlings, and in the spring of 2000, were awarded the Rainforest Alliance seal of certification. Not only did the changes required by our certification standards make the Las Lajas farmland more sustainable, improve life for workers The mission of the and their families, and enable them to sell their beans at a premium, but their new status piqued Rainforest Alliance the interest of Kraft, which in 2003 began buying high quality beans from the cooperative. is to protect ecosystems Like many other communities with whom and the people and we work, the tale of how the Las Lajas farmers improved their lives and increased their wildlife that depend on them livelihoods concretizes the lofty Millennium Development Goals set forth in 2000 and by transforming land-use ratified by all 191 United Nations member states. Together, these eight goals form the framework practices, business practices for achieving a radical reduction in extreme world poverty, hunger, disease, environmental and consumer behavior. degradation and gender inequality. annual_draft_05.qxp 5/31/2006 4:32 PM Page 2

In September, 2005, the UN member nations reconvened to review the world’s progress toward meeting these goals. While it ranks seventh on the list and overall progress has been halting, we are encouraged that the goal of ensuring environmental sustainability is included in the framework. As Klaus Toepfer, executive director of the United Nations Environment Programme said, “[Sustainability] is not a luxury good, only affordable when all other problems have been solved. It is the oxygen that breathes life into all our aspirations for a healthier, fairer and more stable world.” Maintaining the world’s environmental resources is not only essential for safeguarding the health and well-being of future generations. Environmental sustainability and biodiversity conservation also…

● promote a stable climate.

● help to control pollution.

● provide materials for food, shelter and medicine.

● are important for water and soil conservation.

● provide economic benefits. …and do so much more that is vital not just to human beings but also to all other species on Earth. From the beginning, the Rainforest Alliance has recognized that the economic, social and physical well-being of individuals and communities is inextricably linked to environmental conditions, and that the eradication of poverty is closely connected to conservation. Around the world, more than 500 million of the world’s poorest people live in and around forested areas. For many of them, the most expedient — and sometimes only — way to eke out a living is through the sale of lumber or the clearing of their land for cattle grazing and other livestock. But in the long run, the land cannot support such short-sighted solutions, which is why the Rainforest Alliance works with farmers and foresters and hotel owners to use their land — and the water that flows through it — sustainably. The progress of the Las Lajas farmers fills us with hope and pride. On the pages that follow, you will find dozens more examples of individuals and businesses, small and large, that are committed to the cause of sustainability. From a group of villagers in Sulawesi who have turned their homegrown teak trees into a thriving cottage industry that supports the purchase of books and healthcare services, to a cadre of small hotel owners in Latin America who are learning the ropes of running their businesses sustainably, to rural people of the Nepalese highlands who are harvesting medicinal plants from the wild while protecting their valuable resource from exploitation — we invite you to learn about them all …and to be inspired.

Tensie Whelan, Executive Director Daniel R. Katz, Board Chair

SQN job no: 0510046 Client: Rainforest Alliance Project: Annual Report 2005 Date: 05APR06 Stage: draft 05 Finished size: 11 x 8.5 inches Flat size: 22 x 8.5 inches Ink: 4/2 + emboss annual_draft_05.qxp 5/31/2006 4:33 PM Page 1

Land Use

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Land Use The Rainforest Alliance works with individuals, communities and companies whose livelihoods depend on the land. Much of our work takes place in and around forested areas in some of the world’s most fragile, beautiful and biodiverse landscapes.

ithout the incentive and the know-how to work Sulawesi Sprouts a Homegrown By helping members maintain a reliable Teak Industry market for their harvest, certification has reduced W the land sustainably, so that it continues to pro- What started as an act of quiet rebellion illegal logging and the farmers are reaping the vide for them now and in perpetuity, many of the 500 by a group of disenfranchised villagers in rewards of their investments. Their teak is selling Indonesia has sprouted into an economically at a healthy 25 to 100 percent premium, and million people who live in these areas believe they have viable, environmentally sustainable teak business, the French retailer Castorama, owned by the little choice but to destroy natural resources. Working thanks to the group’s resourcefulness, technical British do-it-yourself company B&Q, is a coop- support from the Tropical Timber Trust and Forest erative customer. hand-in-hand with foresters, farmers and lodge owners, Stewardship Council (FSC) certification by the the Rainforest Alliance and our partner organizations are Rainforest Alliance. In 1970, the Indonesian Lavazza Coffee Brews a Better Life government appropriated large plots of land from for Coffee Farmers providing people with the skills, tools and motivation villages in southwestern Sulawesi and planted In partnership with Lavazza, one of Italy’s they need to be responsible land stewards. them with teak. With few available options, most popular coffee companies, the Rainforest the villagers began to slip into the plantations Alliance’s partner groups in the Sustainable and log illegally. Several enterprising farmers, Agriculture Network are working to improve however, stashed a few seeds in their pockets the quality of life of farmers living in the remote to add to their own small family holdings. Today highlands of Colombia, Honduras and Peru their homegrown teak trees have developed into by preparing them to meet Rainforest Alliance a thriving business, yielding discretionary income certification standards. While they have always for education, medicine, home construction, grown outstanding beans, these coffee-growing wedding ceremonies and pilgrimages to Mecca. communities often had to struggle to make ends meet. With support from Lavazza and the This year, the Koperasi Hutan Jaya Lestari exporting company VOLCAFE, they are receiving community teak operation became the first technical assistance so they can maximize consis- forest cooperative in southwestern Indonesia tency, enhance quality and improve efficiency. to be awarded certification Rainforest Alliance / FSC certification.

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Today, these coffee farmers are… The study, entitled The Global Bolivia Takes the Lead in Forest “Getting certified was pretty Impact of Forest Stewardship Council Stewardship Council Certification difficult,” recalls community member ● protecting wildlife habitat. Certification, analyzed the changes by the Rainforest Alliance Benedín García. “At the beginning, ● planting trees and protective buffer that the Rainforest Alliance’s SmartWood Bolivia has more FSC certified forests we felt inconvenienced. We said, ‘we’re strips along streams. program required of 129 forestry opera- than any other tropical country on Earth, poor and they want us to make these tions in 21 countries in order to comply thanks to its ongoing work with the investments.’ But in the long run, we ● learning to combat pests without with FSC standards. Clear and quantifi- Rainforest Alliance. Over the past realized that those changes were essential the use of dangerous chemicals. able improvements over a wide range ten years, the Rainforest Alliance has for improving our forest management ● rebuilding dilapidated housing. of forest management issues were certified over five million acres (two mil- and addressing the basic needs of our identified for all forests studied. lion hectares) of the country’s forestland, community.” With the help of trained ● replacing inefficient coffee mills so that one quarter of Bolivia’s managed foresters, Uaxactún designed a manage- with modern machines. Impacts included… forests now meet rigorous FSC standards. ment plan that restricts logging to ● composting organic wastes. ● better protection of aquatic Most of the certified lands are owned one-third of the concession. In the and riparian areas, sensitive by the Bolivian government and leased rest of the concessions villagers collect In celebration of the project, Lavazza and high conservation value to private forestry companies. The marketable forest resources such launched “Tierra!,” a new line of coffee areas and threatened and workers employed by these companies as chiclé, allspice and xate palm. that bears the Rainforest Alliance endangered species. regularly receive on-the-job training and Certified seal of approval. In Carmelita, a community are issued appropriate protective gear; ● improvements in worker neighboring Uaxactún, xate harvesting the quality of their food and housing has Rainforest Alliance Study Deems safety training. is also Rainforest Alliance Certified. improved substantially; and, with written Certification a Success Residents gather the popular palm ● communication and conflict legal contracts and the right to negotiate According to a comprehensive study sustainably, so that it remains plentiful resolution with stakeholders. collectively, they feel more secure by the Rainforest Alliance, the rapid and a source of income. The Rainforest in their jobs. growth of Rainforest Alliance/FSC The report also found that Alliance helped strike a deal that enabled certification has brought demonstrably certification promoted… villagers to sell their certified xate Community Forest Management beneficial results for the environment and to Continental Floral Greens, a major ● economic sustainability, including in the Maya Biosphere Reserve for people. It has lead to measurable international flower distributor. The San improved understanding Northern Guatemala’s community improvements in the protection of forests, Antonio-based company agreed to buy of profitability and efficiency. of Uaxactún lies within the Maya wildlife and stakeholder rights worldwide, 280 bundles of sustainably harvested Biosphere Reserve, a 5.2 million-acre as well as to the long-term economic ● greater accountability. xate palm each week, bringing (2.11 million-hectare) expanse that viability of forestry operations. in $100,000 additional annual income ● transparency and compliance harbors ancient Maya ruins, jaguars to Carmelita and other communities. with laws. and tapirs. The Guatemalan government Attractive xate fronds are widely sold requires all logging operations within ● better management planning, in flower shops as “jade palm” and are the reserve to be certified under the monitoring and chain-of- increasingly in demand. standards of the FSC, and like the custody practices. reserve’s other 14 forest concessions, Right: Maria Justina Llatas and her daughter Lucy dry Uaxactún chose certification by the coffee beans on their farm in Peru. The farm is part of an Rainforest Alliance. association started with the help of Pronatur, a local nonprofit organization that works with farmers to improve their approach to farm management. Pronatur has promoted Rainforest Alliance certification since 2003.

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“We know that we used to damage the environment, but we didn’t understand the consequences of cutting the forest then. We are now reforesting with native species and protecting the forests we have. There are still a lot of things we need to do, but we are enthused about making improvements on our farms and complying with the [Rainforest Alliance] norms. The idea is not to stay the way we are, but to continue improving. We need to do more reforestation and to take better care of the water, which is an important resource around here. We need to protect the forest, not just for the birds and other animals, but for us human beings as well.”

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A Growing Supply Alliance certified some 1.5 million acres required to identify, survey and adopt Certifying Small Landholders of Framing Timber (600,000 million hectares) in 14 states measures to protect wildlife. Since identi- and Cooperatives The increase in FSC certified acreage in managed by The Forestland Group, fying three endangered species, including For years, coffee farmer Felix Castañeda North America along with the expanding the world’s only timberland investment the cheer pheasant (Catreus wallichii) — has worked as a volunteer health market for certified lumber has far-reach- management organization to preside over which they had been hunting and eating promoter in his community of Carrizal — ing implications for the home building an entire portfolio that has met the terms — the Nepalese villagers have become a collection of simple wooden homes at sector, which accounts for two-thirds of the FSC. staunch conservationists. As Rainforest the end of a dirt road east of the ancient of the lumber consumption in the US, Alliance senior technical specialist Walter Incan city of Machu Pichu in northern as well as for high-value forest habitats. Improving Village Life in Nepal Smith points out, “Sometimes all it takes Peru. Now Castañeda is promoting Coinciding with the increase in certified The highlanders of Nepal, whose villages to garner support is a little education.” sustainable agriculture as a way to ensure wood is the growth of the US Green are often located days away from the the environmental health and develop- Building Council’s Leadership in Energy nearest road, rely primarily on plants Russia Relies on Certification ment of this area, which lies within and Environmental Design (LEED™) for food, clothing, shelter and income. to Protect Old-Growth Forests one of the most biologically rich regions rating system, which provides national They collect, pack and dry medicinal Reaching from the Baltic Sea to the on Earth, but has long suffered from standards that are used to recognize plants and sell them to traders for export. Pacific Ocean, Russia’s forests cover widespread poverty. achievement in sustainable building tech- The villagers typically sell their goods 11 time zones and occupy some 26 Castañeda is one of 27 coffee niques. Under the LEED system, credit is to exploitative medicinal herb traders, percent of the world’s forest area. The farmers in Carrizal who have had their given to buildings and designers using who encourage them to harvest as much forested Arkhangelsk region in northwest farms certified by the Rainforest Alliance FSC certified wood. LEED standards as they can, while paying them poorly Russia is larger than that of France and over the past two years. In a dozen apply to commercial and residential for their products. Once a plant supply Germany combined and includes some tropical countries, the Rainforest Alliance construction, and are increasingly being runs out, the traders move on, leaving of the last remaining stands of Europe’s provides standards and incentives for adopted by state and local governments the villagers, who have destroyed their pristine old-growth forest. Sadly, farmers like Castañeda to manage their as the standard for new construction. only source of livelihood, without the growing demand for timber fuels land in ways that benefit their families, much recourse. a substantial logging trade that threatens A significant supplier of FSC certified their communities and nature. Coffee, much of this area. wood is Tembec, a leading Canadian Thanks to the work of the Nepal which often grows beneath the shade forest products company that is well Non-Timber Forest Products Promotion In May, three logging companies — of large trees, can play an important on its way to gaining Rainforest Alliance Alliance, in January 2005, the Rainforest Ust Pokshengskiy, Shalakushales and conservation role in the tropics, and certification for all 32 million acres Alliance awarded FSC certification to Velskoye LPP — that manage a total Rainforest Alliance certification, which (13 million hectares) of Canadian forest the Federation of Community Forest User of 1,360,000 acres (550,000 hectares) requires farmers to protect existing forest under its management. Each year, Groups, Nepal, whose members manage — were certified by the Rainforest and plant native tree species, is having a Tembec sells 20 million board feet community forests and supply wild-craft- Alliance’s partner group NEPCon for positive impact on thousands of hectares of certified cut lumber in North America. ed ingredients to the international natural meeting the terms of the FSC. In order of forest in Peru’s Alto Mayo Valley. In Arkansas, the Rainforest Alliance products industry. The villagers’ certified to comply with certification standards, has certified nearly 1.5 million acres essential oils and handmade papers are the companies had to set aside protected Left: In January 2005, the Rainforest Alliance awarded (600,000 hectares) owned by the Potlatch now available in the US and England. areas and protect and monitor rare the world's first certification for handmade paper to the Federation of Community Forest User Groups Nepal. Corporation, bolstering the market The sale of these products is not only wildlife species including the Eurasian Here, a villager lays the paper out to dry. for responsibly harvested southern yellow providing cash income, but the incentive badger, the even-toothed shrew pine, the wood of choice for framing for villagers to conserve their forests. and the brown hare. buildings. And in April, the Rainforest To earn certification, the group was

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In neighboring Colombia’s Santander Increasing the Benefits Conserving Cocoa-Growing Lands According to cooperative organizer region, Grupo Kachalu received of Forest Certification Some of the best cocoa on the planet Victor Chacón, the benefits in health, certification for 67 out of its 77 small The Landscape Initiative for Nature grows on the humid coastal plains education and income have been member farms. The certification was Conservation (LINC) Forest Partnership, of Ecuador. Its floral and fruity aromas significant, but the most important the result of a collaborative effort a Rainforest Alliance program, is aimed add the wow factor to fine chocolates. change is that the self-esteem of the between the Rainforest Alliance, the at increasing the conservation benefits More than 10,000 families living near farmers has increased as they begin Colombian Coffee Federation and of forest certification in Vermont, New the coastal city of Guayaquil depend to take control of their own affairs. the Rainforest Alliance’s Bogota-based Hampshire, Maine and New York, as well on their small plots of cocoa trees. Since Pierrick Chouard, founder of partner, Fundación Natura. The farms, as the Southern Appalachian regions 1997, Rainforest Alliance partner group echocolates.com, has embraced these which on average are about 25 acres of the United States. The three-year Conservación y Desarrollo (C&D) has communities for both the high quality (10 hectares) in size, surround a forest initiative, which concluded in June 2005, worked with five communities to help of their cocoa and their commitment preserve that is a last redoubt of an was founded on the idea that promoting them get a better price for their cocoa to sustainability. Rainforest Alliance endangered species of Andean oak. sustainable forestry practices and while conserving the remarkable biodi- Certified Plantations Arriba chocolate Eager to be good neighbors to the park, certification in key areas could help versity in the farms and remaining forest is now used by top pastry chefs at many the farmers entered their lands into the expand critical habitats and protect patches. Because cocoa grows in forests, fine restaurants, including New York’s Les Rainforest Alliance certification program. larger intact areas of forest. the crop is naturally eco-friendly. C&D Halles, Daniel and The Waldorf Astoria. The farms themselves provide habitat for biologists have recorded long lists of rare By the project’s close, LINC It is available at retail and gourmet shops a rich diversity of birds and other wildlife. species on the farms, from endemic had demonstrated that its innovative across the country, including Fog City Studies conducted by the National monkeys to endangered frogs. approach resulted in specific ecological News in California, Zingerman’s in Coffee Research Center in 2004 found and social benefits. For example, in the C&D helped the farmers organize Michigan and Zabar’s in New York City. 96 bird species in the Kachalu farm Northern Forest the area of Rainforest into associations so that they could share region, a population that the center Alliance/FSC certified forest under strict resources and increase their bargaining attributes to the wide variety of native reserve status increased by 90,050 acres, power. The conservationists developed trees that shade the coffee. and the number of certified forest parcels a cheap solar dryer system for the adjacent to protected areas increased cocoa, allowing every family to increase by 36 parcels. Contiguous forest the quality and value of their crop. areas under protection or sustainable The farmers do not have other income management increased in size, providing sources, so they often sell their aromatic increased ecological viability and beans to the first buyer who offers hard improved riparian habitat. A large cash. In response, C&D recruited number of wood processors in the CitiBank and the Boston-based green regions became certified and are lender EcoLogic Finance, which created now purchasing local certified wood. a revolving fund allowing the coop itself The number of employees at certified to buy the cocoa at a fair price. forestry operations increased by 1,044.

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“Almost everyone agrees that sustainability means giving equal attention to social, economic and environmental questions. If one of those three elements is weak, the business is not sustainable. This holds true whether you’re director ive of ut Sa talking about a coffee farm c lv xe a e N or a shoe factory.” , A z T e U r a R v A l

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More Milestones

As of June 30, 2005, the Rainforest All of Lithuania’s state-owned forests In order to increase the presence of certi- Alliance’s had certified a total of have now been certified by the Rainforest Alliance’s fied sustainable coffee in the marketplace 377,852 acres (152,917 partner, NEPCon, which means that 14 state forest and to promote production practices that hectares). The tropical farmlands enterprises, covering a total of 2,470,966 acres (one protect biodiversity and improve the are sustainably producing bananas, million hectares), now meet FSC standards. State forests economic well-being of coffee farmers coffee, cocoa, citrus and ferns. in Lithuania account for nearly half of the country’s and workers, the Rainforest Alliance and forest areas. its partner members of the Sustainable Agriculture Network (SAN) are working with selected coffee companies across five Latin American countries to Bowing to pressure from supermarkets to protect against possible tainting, oxidation and leakage, many vintners throughout transform the way that Financed by California, Europe, South America and South Africa are replacing coffee is sourced. the Global Environment Facility (GEF) their natural cork with synthetics. In doing so, they are endangering through the United Nations Development one of the last natural forest ecosystems in Western Europe, Programme (UNDP), the seven-year and along with it, an economy and culture that has grown up project is scheduled to begin in early 2006. around cork farming over thousands of years. In an effort to The Eco-Index (www.eco-index.org), the By its end, we anticipate that participating conserve the cork-producing regions of Spain and Portugal, the Rainforest Alliance-managed, trilingual online library of coffee companies will have purchased Rainforest Alliance awarded its first certification for conservation initiatives, news stories and interviews, was between one and five percent of their sustainable management of cork forests. expanded to include detailed descriptions of more than total coffee supplies from our certified 2,254 acres (912 hectares) of cork land managed by Fruticor — 800 projects of some 500 NGOs throughout Latin producers, tripling the volume of current a group of small land owners and managers in the Alentejo cork America and the Caribbean. An average of 40,000 visits Rainforest Alliance Certified coffee and region of Portugal — have been certified by the Rainforest Alliance are paid to the Eco-Index each month by conservationists, representing a signifi- for meeting the terms of the Forest Stewardship Council (FSC) researchers, donors and students eager to learn how cant increase in the for responsible management. to best conserve biodiversity while benefiting local total volume of certified residents in the Neotropics. coffee globally.

In March of 2004, the Rainforest Alliance brought together 48 representatives of grassroots groups from Costa Rica, Nicaragua and Panama for “Conservation Dialogues,” held over two days in Costa Rica. All of the participants manage biodiversity conservation projects that receive support from the Critical Ecosystem Partnership Fund (CEPF). The topics discussed included monitoring and evaluation of the projects and their impact on biodiversity; defining project sustainability in environmental, social and financial terms; and how best to communicate their achievements to local stakeholders.

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Sustainable Agriculture Network Partners The Rainforest Alliance is the international secretariat of the Sustainable Agriculture Network (SAN), a coalition of leading conservation groups that links responsible farmers with conscientious consumers by means of the Rainforest Alliance Certified seal of approval.

Conservación y Desarrollo ECUADOR Fundación Interamericana de Investigación Tropical (FIIT) GUATEMALA Instituto de Manejo e Certificação Florestal e Agrícola (IMAFLORA) BRAZIL Instituto Para La Cooperación y Autodesarrollo (ICADE) HONDURAS Fundación Natura COLOMBIA Nepenthes DENMARK ProNatura Chiapas A.C. MEXICO SalvaNATURA EL SALVADOR Toledo Institute for Development and the Environment (TIDE) BELIZE

Forestry Partners The Rainforest Alliance maintains formal partnerships with leading nonprofit organizations, which provide invaluable local knowledge and expertise and work with us to provide certification services. They include…

Institute for Agricultural and Forestry Management and Certification (IMAFLORA) BRAZIL Nature, Ecology and People Consult (NEPCon) DENMARK

Worldwide Offices With the extension of the Rainforest Alliance’s reach across the globe, we continue to increase our on-the-ground presence with new regional and international offices.

Worldwide Offices: Bolivia ● Costa Rica ● Guatemala ● Indonesia ● Mexico ● The Netherlands ● Spain United States: California ● Minnesota ● New York ● Oregon ● Vermont

Right: Representatives from the nonprofit group Pronatur check the quality of Felix Castañeda’s Rainforest Alliance Certified coffee.

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Business Practices

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ees , I wrote a ploy orkshop manual for my em he w rgy, er t I learned. It inclu ene ft what ded pol saving “A on icies for ed es. as ste and for improvin ye b g wa g relatio mplo agin ns among e an ave been ver m ges h y pos sh han itive ra e c , es g t Th nvironm pecia ucin reasing e ental c lly in red d inc ons an cio ff. r electricity usne y sta ally, ou bill did ss among m Fin n’t g ri, owner o o ra Zerne f Cariblu up and e Bu !” S nga low s, C osta Rica.

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Business Practices As the public brings its environmental and social concerns to market, the business community in the US and around the world is responding by integrating the triple bottom line into its corporate decision-making.

his approach, based on environmental, economic Japanese Bow to Sustainable Wood began to source Rainforest Alliance Certified and Beverages beans from Nueva Granada, a certified farm T and social considerations, is central to sustainability In a culture traditionally given to sipping tea in Guatemala, and Los Nogales, a certified and key to Rainforest Alliance certification. We not only rather than swigging coffee, and to greeting farm in El Salvador, through the commodities the morning with soup, instead of orange juice, trading firms Itochu Corporation and Kane- help companies and producers to build their the Rainforest Alliance certification seal may soon matsu Corporation. businesses on solid, sustainable foundations, but to become another time-honored tradition. Both The latest Rainforest Alliance Certified in agriculture and in forestry, Rainforest Alliance bring their goods and services to a rapidly growing product developed under the UCC brand certification is securing a market niche in Japan, is orange juice from Del Oro, a sustainable number of conscientious consumers. appealing to consumers’ concerns with nature, orchard in Guanacaste, Costa Rica. Lying purity and traceability. adjacent to a national park, the orange grove For the past five years, the Rainforest Alliance provides a buffer zone between the protected has been working with forestry cooperatives forest and treeless cattle pasture, and reflects and prefectural forest managers throughout the the potential for the harmonious coexistence h island nation to improve management practices. of farmland and conservation areas. More recently, the program has shifted its focus to chain-of-custody certification for sawmills, Certified Paper Grows by Reams traditional log home builders, furniture makers and Bounds and producers of household items such as wood- The pulp and paper industry is the single largest en sandals and bookshelves. Among countries industrial consumer of forests worldwide. Each year, that depend upon imported wood, the growth more than 300 million tons of paper are produced of certification in Japan has been faster in the around the world — over 70 percent of it derived past two years than anywhere else in the world. from ecologically valuable, biologically diverse forests. Leading the world in paper consumption Concurrent with Japan’s interest in certified is the US, where every individual consumes an forestry is the growth of Rainforest Alliance average of 730 pounds of paper per year. Given Certified agricultural products in that country, this voracious consumption of paper, the Rainforest particularly coffee. Last year, Ueshima Coffee Alliance is particularly proud of our work promoting Company (UCC), Asia’s leading coffee roaster, the use of sustainably produced pulp.

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This year Domtar, the third largest Guatemala Roundtable Reaps their market access and provide them Tools and Training paper producer in North America, Record Wood Orders with technical assistance aimed primarily for Tourism Entrepreneurs launched a new family of socially and International wood brokers and represen- at cutting waste and complying with Tourism is among the world’s largest environmentally responsible papers tatives of communities and companies market demands. and fastest growing industries, with known as Domtar EarthChoice®. Each managing forest concessions in northern 760 million people traveling annually. of the 13 papers in the Domtar Earth- Guatemala came together in March and Gauging Development’s Impact Unregulated, this extensive globe-trotting Choice product line has been certified struck deals that promise to strengthen on Brazil Nut Trees can lead to such serious problems by the Rainforest Alliance to meet both sustainable forest management and With the support of Elysabeth Kleinhans, as uncontrolled visitation to natural sites the strict environmental and social community development. The productive the Rainforest Alliance provides funds and protected areas, the displacement standards of the Forest Stewardship encounter was organized by the Certified to further research on the sustainable of local people and wildlife, pollution, Council (FSC). FSC chain-of-custody Sustainable Products Alliance — a part- management of tropical resources. and a lack of respectful behavior towards certification tracks paper all along nership of United States Agency for In support of our efforts to transform local cultures. But by providing local the supply chain, from the forests where International Development (USAID), business practices, Kleinhans Fellows entrepreneurs and communities with the trees are harvested to the retail the Rainforest Alliance and more than investigate the ecological, social and the incentive to protect biodiversity store, ensuring that it is produced a dozen communities and companies business challenges for successful non- and cultural traditions — and the know- in accordance with strict criteria. Domtar seeking to increase the sales and benefits timber forest product (NTFP) enterprises. how required to run their businesses manages 18 million acres (seven million of certified forest products, bananas and For the past ten years, both NGOs and sustainably — tourism is a potentially hectares) of forestland in Canada and coffee in Mexico and Central America governments have been encouraging powerful conservation tool. the US, owns 11 paper mills and pro- (see page 20). Wood brokers and the development of NTFPs as a way Toward this end, the Rainforest duces lumber and other wood products builders from the United States, Australia, to slow down tropical deforestation Alliance is providing training and techni- in addition to paper. The company plans Germany and Guatemala placed orders and improve the lives of local people. cal assistance on environmentally and to seek certification for all of the land for certified lumber and wood products The 2005–2007 Kleinhans Fellow, socially sound management, certification it manages by the end of 2006. from 11 communities and two companies Amy Duchelle, is studying the production standards and marketing to trainers, that together manage 1.1 million acres Unisource, the largest privately-held of Brazil nuts in the face of major land- small and medium tourism entrepreneurs (461,000 hectares) of forest in the Maya paper distributor in the US, is also work- scape changes in the Western Amazon. and community-based businesses in Biosphere Reserve. ing to make responsibly produced paper She will examine how majestic Brazil Latin America. Workshops and seminars a mainstream choice. The company Companies including Global Building nut trees are affected by the construction are currently held in Belize, Costa Rica, was awarded Rainforest Alliance /FSC Products, International Specialties, of the Transoceanic Highway. This new Ecuador and Guatemala — countries certification for its largest fine paper EarthSource, Selva Verde and North road promises to have a major impact where biodiversity is a tourist draw, but division, located in Addison, Illinois. American Wood Products ordered on the region, by linking the Amazon is also particularly vulnerable to stress Unisource-Addision purchases paper shipping containers of milled lumber, river port of Assis in Brazil with Pacific and degradation. The project’s goal from mills including Domtar, Neenah floor boards, decking, wheel barrel Ocean ports in Peru. is to prepare businesses in these countries Paper, Mohawk and Finch, Pruyn, handles and guitar parts. Because these to comply with tourism certification all companies whose pulp comes from orders were for milled lumber and requirements in order to make them forests that meet the Rainforest Alliance’s finished products, they are more lucrative more efficient, responsible and profitable. rigorous standards for environmental for local communities than logs would As of June 2005, 471 participants had and social responsibility. be. The Rainforest Alliance has helped attended 14 seminars and workshops. communities in the region set up their own mills, while working to facilitate

16 Rainforest Alliance 2005 Annual Report

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Rainforest Alliance 2005 Annual Report 17 annual_draft_05.qxp 5/31/2006 4:37 PM Page 18

Tour Operators workshops. As part of a concerted effort Sustainable Farming, The benefits are more difficult Commit, Communities to improve, standardize and expand Smart Business to measure and may take time to and Travelers Benefit our training capabilities, the Rainforest Farm families are quick to recognize the accrue, but farmers report cost savings Among the strongest allies in the Alliance has developed a series of formal benefits of protecting the environment in reduced agrochemical use, recycling, Rainforest Alliance’s quest to make training modules. For agriculture, we and conserving the natural resources — fewer accidents, less labor turnover, the tourism industry more sustainable offer an introductory course, a workshop such as healthy soils and clean water longer equipment life and the efficiencies are tour operators themselves, which that prepares experienced auditors — on which they so closely depend. of a better trained workforce. On banana, is why we are encouraging operators to train new recruits, and a course But like all good entrepreneurs, the first cocoa and coffee farms, production and in Guatemala, Belize, Costa Rica and for extensionists, who help small farmers question that many farmers ask about quality often improve, directly adding Ecuador to sign cooperative agreements make the improvements necessary the Rainforest Alliance Certified program to the farmer’s bottom line. A coffee with us. The agreements commit tour to comply with Rainforest Alliance is: “How much does it cost and what farmer in Nicaragua reports that the operators to motivate their affiliated standards. In the past year, the Rainforest will be my return?” savings from better farm management businesses to join them in conserving Alliance has trained more than 35 new allowed him to recoup the costs The costs of making improvements biodiversity and reducing tourism’s auditors, prepared dozens of auditor of meeting the standards in 18 months. can be considerable. According to a negative impacts. Once business owners trainers and graduated more than 175 study done this year on the large banana The most important benefits of the who work with tour operators agree extensionists. These innovations allow farms typical of Central America, prod- certification process, according to farmers, to pursue a sustainable course, the the Rainforest Alliance and our local ucers may spend $60,000 to $80,000 are less tangible but just as important, Rainforest Alliance organizes seminars partner conservation groups to respond to meet the Rainforest Alliance Certified and include improved confidence, better and workshops to help them begin to the growing demand for certified standards. These investments are usually relations with workers, buyers, neighbors to incorporate environmentally, socially, products, while expanding our efforts recouped in a few years, as certified and local communities, as well as height- economically and culturally responsible to infuse ecologically friendly and socially farms are more efficient, safer and have ened optimism due to feeling more practices. In return, the tour operators just practices into agriculture and forestry lower operating costs. in control over one’s own destiny. encourage tourists to choose the lodges around the world. and businesses that have received On coffee farms, which are typically Since June of 2004, the Rainforest training and made changes. small in most Latin American countries, Alliance forestry program has trained the cost of making the changes may be more than 1,100 consulting foresters, Farm and Forestry Training low. In fact, some ecofriendly practices — group managers and other professionals A growing cadre of agronomists, foresters such as allowing volunteer tree seedlings at 72 international events ranging and biologists work on several continents to grow rather than whacking them with from collaborations with the University to determine whether farms and forestry a machete — don’t cost anything at all. of Vermont’s School of Forestry to work- operations comply with the standards Significant costs may come in controlling shops for members of rural indigenous of the Forest Stewardship Council (FSC). pollution, developing training and safety cooperatives in Guatemala. The Early on, most learned the ropes programs for workers, rebuilding housing, Rainforest Alliance also offers online of Rainforest Alliance / FSC certification packing plants and other infrastructure, e-learning to help people access by accompanying experienced auditors reforestation, increasing wages to workers learning remotely. on site visits and through a few short and the cost of the farm inspections.

18 Rainforest Alliance 2005 Annual Report

More Milestones

In early 2005, Kraft Foods The largest home improvement retailer in Europe, An increasing number of corporations, CEO Roger Deromedi and three senior B&Q, has signed an agreement with the Rainforest representing millions of investors, are vice presidents — Mark Berlind, Doug Alliance to verify that all the timber products the company printing their annual and corporate Burns and Paul Carothers — visited two stocks in key UK stores will come from sustainably man- social responsibility reports on Forest Rainforest Alliance Certified coffee farms in aged forests. Under the agreement, Rainforest Alliance Stewardship Council certified paper. They El Salvador to better understand how our auditors will work with B&Q to track lumber and wood include JP Morgan, Citigroup, Johnson program works. Accompanied by products from the sales floors of its major stores back & Johnson, McDonald’s, Nike and the Rainforest Alliance executive director to the forests that provided the wood. HSBC Bank. Tensie Whelan, chief of agriculture Chris Wille and Juan Marco Alvarez, director In response to the growing market demand for certified flooring, plywood of the Salvadoran environmental group and building materials, as well as paper and paper products, the Rainforest SalvaNATURA, the group visited the estate farm of Los Nogales Alliance published a new series of that and the Las Lajas cooperative. Kraft has committed to increasing its “SmartGuides” provide sourcing information for architects, home designers, builders and purchases of Rainforest Alliance Certified coffee in El Salvador and others looking for Forest Stewardship Council certified products. The guide the region, and has already purchased 13 million lbs (6 million kilos) is available at www.rainforest-alliance.org/greenbuilding. of the certified beans.

Through a new partnership with the Rainforest Alliance, the Minneapolis-based Caribou Coffee Co. — the nation’s second largest non-franchised coffee house chain — announced its support of sustainably produced coffee and the communities and farms in coffee growing lands. In June, a farm in Guatemala’s highlands became the first Caribou supplier to be certified. By the end of 2008, half of all the coffee purchased by Caribou will come from Rainforest Alliance Certified farms.

Matthew Algie, one of the UK’s leading Governing Through Markets (Forest Certification and Mayorga Coffee Roasters, independent coffee roasters, is buying the Emergence of Non-State Authority), a new book a US company that works closely with Rainforest Alliance Certified coffee from co-authored by the Rainforest Alliance’s Deanna Newsom, farmers to ensure a high-quality, fresh Honduras for its Tiki Café brand. won the 2005 Sprout Award for being the roasted product, is now selling its The coffee is grown by two certified coop- best new work on international environmental policy and Rainforest Alliance Certified coffees at its eratives near Sierra de Agalta and La Tigra National Parks. The politics. The book explores the emergence of market- own retail locations, through its online store shade coffee farms provide habitat for quetzals, guans and other driven conservation programs, such as sustainable forestry and at Costco stores in the northeast US. endangered wildlife. La Tigra, located 7 miles (11 kilometers) from certification, to address global environmental challenges. Tegucigalpa, provides nearly 40 percent of the city’s drinking water.

Rainforest Alliance 2005 Annual Report 19 annual_draft_05.qxp 5/31/2006 4:38 PM Page 20

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Making Markets Work for the Environment and Local Communities

The Certified Sustainable Products produced timber, bananas and coffee The project’s goals include certifying coffee farms doubled to cover more Alliance (CSPA) is a collaboration of the from Central America and Mexico. 300,000 acres (122,000 hectares) than 77,000 acres (31,000 hectares) United States Agency for International By strengthening the competitiveness of forest and farmland and facilitating by June of 2005. Sales of certified coffee Development (USAID), the Rainforest and sustainability of forest management the sale at premium prices of 13,000 tons increased at a comparable rate, with Alliance, its partners in the Sustainable and agricultural enterprises, this innova- of coffee, 90 million boxes of bananas several major US roasters sourcing Agriculture Network and more than tive alliance intends to raise living and four million board feet of wood certified coffee in the region for the first two dozen companies, including Gibson standards in rural communities, products. During the project’s first year, time and the food and beverage giant Guitars, Green Mountain Coffee Roasters improve protection of the region’s the number of certified farms and forestry Kraft more than doubling its certified and Procter & Gamble. The goal of this natural resources and catalyze new operations in Mexico and Central coffee purchases in the CSPA countries three-year effort is to increase the supply, trade and investment. America grew at an unprecedented pace. to 6.4 million pounds (nearly three demand and value of sustainably The area of Rainforest Alliance Certified million kilos).

Top left: The wood extracted from this Rainforest Alliance Certified forest in Santiaguito, Honduras will be used to make furniture for a major European retailer. Right: Ecotourists survey the Galapagos landscape. The Rainforest Alliance collaborates with nonprofit partner Conservación y Desarollo to ensure that tourists treat this fragile island ecosystem with respect.

20 Rainforest Alliance 2005 Annual Report

Changing Consumer Behavior

Rainforest Alliance 2005 Annual Report 21 annual_draft_05.qxp 5/31/2006 4:39 PM Page 22

“The American public is changing its attitude about purchasing. Consumers are becoming increasingly aware, and demanding to know that the products they buy reflect their own personal values of social and environmental responsibility.”

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22 Rainforest Alliance 2005 Annual Report

Changing Consumer Behavior Awarded to companies, communities and cooperatives that meet a host of rigorous standards for protecting the land and providing for workers, our Rainforest Alliance Certified seal assures consumers that the goods they purchase result from sound environmental and social practices.

rom bananas to beams, coffee to cabinetry and Farm to Table: Closing the Circle After years of preparation, Kraft coffee brands The objectives of our Sustainable Agriculture in the United Kingdom (Kenco), France (Jacques F furniture to ferns, our seal can be found on a program are clean, healthy, productive farms Vabre), Sweden (Gevalia) and Germany (Jacobs) growing number of farm and forest products. Through that support happy families and thriving wildlife. introduced 100 percent Rainforest Alliance But the motor for the program is market demand. Certified lines, giving the choice of sustainable our publications, Web site, media outreach efforts and Around the world and in growing numbers, good taste to countless coffee cuppers in those educational curricula for teachers, we are reaching people do care about the workers and wildlife countries. The largest coffee roaster in Japan, on farms that grow their groceries. By selecting Ueshima Coffee Company, developed several consumers so they understand how Rainforest Alliance Rainforest Alliance Certified goods, shoppers certified preparations — from restaurant servings certification can make a profound difference in commu- can send a positive message to farmers. to ready-to-drink cans for vending machines — now available in hundreds of outlets throughout nities and landscapes around the world. Recognition of the Rainforest Alliance the country. Certified seal ballooned this year, thanks to a steady drumbeat of news coverage and large Improving Coffee Taste and Quality releases of bananas and coffee sporting the Careful care of the land and good treatment green frog. Chiquita tested the seal on bananas of workers not only creates a sustainable farm, in Switzerland and then developed a marketing but also a superior product. At three international campaign for Europe based on the certification. coffee competitions this year, Rainforest Alliance This was a momentous decision for Chiquita, Certified coffees were winners, proving that coffee which had been investing in farm improvements, grown in a way that’s good for the planet also a code of ethics and other efforts for 13 years. tastes great. The company wanted a rock-solid record of Troels Overdal Poulsen, a master coffee achievement before taking the message to their brewer from Denmark, won first place in the banana-buying customers. During the fall, the 2005 World Barista Championship with a 100 famous “Ms. Chiquita” logo got a companion: percent Rainforest Alliance Certified coffee from the Rainforest Alliance frog. Now, the seal Daterra, the first Rainforest Alliance Certified of approval is seen on 50 million bananas farm in Brazil. every week in hundreds of stores in nine Left: A Dutch advertisement for Rainforest Alliance Certified Chiquita brand bananas that appeared in the Netherlands in the summer of 2005. European countries.

Rainforest Alliance 2005 Annual Report 23 annual_draft_05.qxp 5/31/2006 4:39 PM Page 24

In two Internet coffee auctions explains Julianne Schrader, Rainforest and displays, which they sold at a school Morning Herald, as well as generous controlled by the Coffee Quality Institute, Alliance education manager. Using benefit in support of Adopt-A-Rainforest. coverage in trade publications worldwide. where coffees are judged by an interna- a multi-disciplinary approach, the This year, Adopt-A-Rainforest contribu- Our media outreach efforts have not tional jury for a total possible score curriculum gives students a global per- tions went to the support of El Salvador’s only brought public awareness to the of 100, all Rainforest Alliance Certified spective on the importance of protecting Bosque El Imposible Rainforest, a nation- efforts of the Rainforest Alliance and coffees submitted for evaluation ranked the world’s natural resources, along with al parkland that is managed by Rainforest its partners, but have helped to build above 80, which means they all achieved an understanding of the social and Alliance partner SalvaNATURA and and reinforce industry supply chains and status as “specialty coffee” — the top cultural context of environmentalism. is considered the most important natural provide consumers with tools to make grade in the world. area in the country. Donations also went responsible choices with regard to the Anyone Can Adopt-A-Rainforest toward reforestation, trail building and environment, workers and communities. At the Rainforest Alliance’s second community monitoring of illegal poaching In addition to our media outreach, annual Cupping for Quality event, where “Nine year-old Diego Daguier in the Maya Mountain Marine Corridor the Rainforest Alliance brings reporters only Rainforest Alliance Certified coffees says that if he became president wildlands in southern Belize. to see our work in the field, giving them were evaluated, experts sampled more the opportunity to see for themselves than 38 brews in blind taste tests; all of the United States, the rainfor- The Environment is the Message our work on the ground. coffees submitted achieved the coveted est would be a top policy issue.” The breadth of the Rainforest Alliance’s specialty status. work was reflected in the diversity Right: Known for its outstanding social programs, Daterra Tampa Tribune, May 17, 2005 of media coverage we received this year, was the first coffee farm in Brazil to be certified by the Going Bananas Over the New Rainforest Alliance. The farm has implemented a massive Through the Adopt-A-Rainforest much of which was achieved through Middle School Curriculum tree-planting campaign. program, school groups and other targeted outreach. Our achievements In collaboration with Project Learning organizations can contribute to conserva- were highlighted in mainstream US out- Tree, an environmental education pro- tion groups that are working to stop lets including Newsweek, Time Magazine gram of the American Forest Foundation, local rainforest destruction in tropical and CNN; major US dailies such as the Rainforest Alliance has expanded countries. The on-the-ground conserva- The New York Times, The Washington its online Learning Site with new lessons tion projects that serve as the basis Post and the Chicago Tribune; business geared for seventh and eighth grade for the Rainforest Alliance’s Learning publications such as Forbes and the students. Their focus: banana production Site are the same as those supported Financial Times; environmental outlets in Honduras. Each year, in lunchboxes, by Adopt-A-Rainforest. This unique rela- such as E Magazine, ENN and Audubon; with sundaes and in fruit shakes, people tionship gives students the opportunity and lifestyle magazines such as Condé around the globe consume more than to directly support the grassroots groups Nast Traveler and Chow. Outside 55 million tons of bananas — enough they are studying, as well as monitor the the US, we also continued to garner to make the banana the world’s most progress of their conservation initiatives. strong coverage in outlets in more than popular fruit. “By tracing the journey For example, after learning about 15 countries, including Costa Rica’s of bananas from tropical farms to their the rainforest, Diego Daguier and his La Nación, Italy’s La Cucina Italiana, breakfast tables, students learn about the classmates at the Anderson Elementary England’s The Guardian, Germany’s origin of one of their favorite foods and School in Tampa, Florida were inspired Stuttgarter Nachrichten, Canada’s how they are connected to ecosystems to design puzzles, t-shirts, calendars Toronto Star and Australia’s Sydney and cultures that may seem very distant,”

24 Rainforest Alliance 2005 Annual Report

“This is the first time that I have seen age te ngu ach a program have such a positive impact on students.la er d , rl A o n w n Talking about the students , S n t i r r e u to become more accepting of each other. As a result I noticed e o t

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How Can Consumers Change the World? By Buying Products Bearing the Rainforest Alliance Certified Seal.

As of June 2005, the Rainforest Alliance children are receiving health care and The Rainforest Alliance has trained and a better future. To find products had certified 70 million acres (28.2 education. Workers and their communi- nearly 3,000 people who work for bearing the Rainforest Alliance million hectares) of farm and forest ties are learning how to conserve their tourism businesses in seven countries. Certified Seal, please visit land, benefiting millions of people resources. They are planting trees, As secretariat of the Sustainable Tourism www.rainforest-alliance.org/marketplace. and countless plant and wildlife species recycling garbage, reducing pesticide Certification Network of the Americas, we To find out where you can take in more than 40 countries. use and protecting wildlife habitat. are helping tourism businesses in Latin a memorable and sustainable vacation, America become certified as sustainable. visit www.rainforest-alliance.org/ecotravel. Thousands of farm and forest Rainforest Alliance Certified food owners and cooperative members, many and wood products are available As consumers grow more concerned of whom live in the world’s poorest in tens of thousands of retail stores about the effect of their purchases and most biodiverse countries, have around the world and on hundreds on the planet and more conscientious improved their standards of living, thanks of Web sites, giving legions of caring as a result, the Rainforest Alliance certifi- to the sales of their Rainforest Alliance consumers the chance to directly help cation seal is becoming synonymous Certified crops and lumber. Their people and the planet. in their minds with a healthier Earth

Rainforest Alliance 2005 Annual Report 25 annual_draft_05.qxp 5/31/2006 4:39 PM Page 26

e are immensely grateful to our individual members, foundation Wand government funders, corporate partners and in-kind donors for their support. They make our work possible, and their continued generosity is invaluable as we further our mission and expand the reach of our programs. There are many exciting ways to support the Rainforest Alliance, including:

AINFOREST ALLIANCE 15TH ANNUAL GALA R Canopy Associates With a gift of $1,000 or more, you become a Canopy Associate and join a network of individuals committed to providing vital support for the Rainforest Alliance’s conservation activities. As a Canopy Associate you will be invited to special events, environmental briefings and eco-trips.

Corporate Partners We partner with corporations in a number of ways, from workplace giving campaigns to cause-related promotional programs. While helping your company find ways to contribute to our conservation work, we also provide you with a powerful way to reach out to your clients and employees.

Planned Giving: Making the Rainforest Alliance Part of Your Legacy A planned gift is a lasting way to ensure the future of the Rainforest Alliance’s effective global conservation programs, while furthering your financial goals. Planned gifts include any donation that is integrated with your personal financial and estate planning.

We would like to recognize the following individuals for establishing planned gifts with the Rainforest Alliance: Lynn Caporale Elysabeth Kleinhans Dr. Karl Fossum DeNyse Pinkerton Ilse Holliday

Annual and Endowed Funds This year the Rainforest Alliance established an Annual and Endowed Funds program, Top left: Ted Allen of TV’s Queer Eye for the Straight Guy, Luis Pascoal of Daterra which allows donors to underwrite a program, project, division or directorship of the Top right: Santiago Dunn of Ecoventura speaks at a conference for honorees held the day of the gala organization for a full year of operation or for perpetuity. These funds place donors Middle left: Daniel Katz, Board Chair; Catherine Ludden; Eric Rothenberg, Board Member Middle right: Henry Juszkiewicz, Board Member; Ted Allen among a prominent group of stewards leading the way for the future of the Rainforest Bottom: Kerri A. Smith, Board Member; Cliff Robertson; Tensie Whelan; Gina Seau; John Warner Alliance’s sustainable world vision.

26 Rainforest Alliance 2005 Annual Report

We would like to thank Karin and Alan Wilzig for their generosity, pioneering spirit and establishment of The Karin and Alan Wilzig Annual Fund. It was through their initiative that we launched the Rainforest Alliance Annual and Endowed Fund Program.

Funders Dr. Karl Fossum and Christy and Alan Molasky Martin Tandler Contributors Terrence M. Dillon Martina Leonard David and Katherine Moore Dwight W. Taylor Under $1,000 Discovery Elementary School Labeeb M. Abboud FujiHunt Photographic Chemicals, Ricardo Moraes Julie Taymor Douglas Dunn ABC Home & Planet Foundation Inc. / Bert Aerts Joanna E. Morse The Armand G. Erpf Fund Rosalind S. Abernathy Betsy Dunphy Warren Albrecht Geraldine R. Dodge Foundation, Inc. National Fish and Wildlife Foundation The Arthur K. Watson Alan Shepard Elementary School Edmonson Elementary School Anheuser-Busch Companies, Inc. Gibson Musical Instruments / Theresa and Jeffrey Nedelman Charitable Trust Anderson Elementary Mark Eisner Anonymous (4) Henry and Catherine Juszkiewicz Netherlands Ministry of the The Bodman Foundation Sid Anderson Jilian Farwell Arntz Family Foundation Jeffrey Glassman Environment / The Faro Foundation Elayne Archer and Cliff Rosenthal Catherine S. Fellerman Asia Network for Sustainable Global Environment Facility Royal Tropical Institute The Ford Foundation Evan Arnold John P. Fette Agriculture and Bioresources Donors through GlobalGiving Will Nixon The Heinz Endowments Sally Arnold Fort Gratiot Middle School Emma E. Barnsley Diane Glover Daniel J. Okeefe The Kohlberg Foundation, Inc. Ann G. Ash Jacqueline Fowler Timothy and Virginia Beaulac Good Brand Works, Ltd. Oliver S. and Jennie R. Donaldson The Moore Charitable Foundation Avon Products Foundation, Inc. Freedman Broder & Company David Bourne Wendy Gordon and Larry Rockefeller Charitable Trust The New York Community Trust Stephen Badger H. F. Gehrlach Maynard and Katherine Buehler Eugene Grant Overhills Foundation The Overbrook Foundation Judith Bakenhus Nancy Gilbert By Design Legal Graphics, Inc. Robert M. Hallman Janet Owen The Panaphil Foundation Deborah L. Barrentine Carolyn E. Goettsch John N. Caulkins Marjorie L. Hart Jessie and Thomas Paul The Perrin Family Foundation Ben Baxt Jacqueline J. Goldberg Chemonics International Agnese N. Haury Amanda Paulson The Procter & Gamble Company W. Robert Beer Richard Goldstein Citigroup Foundation Roger Herr Richard Perry The Prospect Hill Foundation Douglas J. Bender Reyla Graber Claneil Foundation, Inc. Kenneth Hey Pfizer The Satter Foundation / Berkshire Country Day School Travis Gray Karen and Howard Clark Independence Community Plant Family Environmental Muneer Satter Hans Bertram-Nothnagel Green Hotels Association Coblentz, Patch, Duffy and Bass, LLP Foundation Foundation The Spray Foundation Beverly Vista School Helen M. Green Randolph L. Cowen and Inter-American Development Bank Robert C. Quinlan The Summit Foundation Rebecca L. Blaine Mr. Gruber’s Science Class Phyllis Green Edward Juda Real Estate Trust The Tinker Foundation Inc. Louise Bourgeois Mark Gunderson Charles R. Crisp Maggie Lear and Daniel R. Katz Mike and Faye Richardson The World Bank John A. Bradley Karen Gupta Critical Ecosystem Partnership Fund Sudhakar Kesavan Kathy Robb Thendara Foundation Bruce Broillet Lillian C. Hall Alice Davidson Matthew Kirby and Rockefeller Brothers Fund Tides Foundation Thomas C. Brokaw John Henderson Peter Davidson Karen Riffenburgh Florence and Anthony Rodale Jane M. Timken Dr. Noel Brown Henrico High School Abigail Disney and Pierre Hauser Elysabeth Kleinhans Eric Rothenberg and Mary J. Traeger Marai Camaj John E. Herzog Daniel Doucette and Scottye Lindsey Pamela Kohlberg Catherine Ludden U.S. Agency for International Capital One Financial PAC Joseph Higgins Jacqueline and Rodman Drake Carl W. Kohls Roy A. Hunt Foundation Development Match Program Mark C. Hill Vitaly Dukhon Dr. Julius Korein Jean Rozwadowski U.S. Fish & Wildlife Service Laurie Chapkin Arthur L. Hilt Camille Dull Kraft Foods International Lenore Ruben UNICOMM, LLC Nelson Checkoway Dorothy S. Hines Dutch Association of Investors Isaiah Lang Martha A. and Robert S. Rubin United Nations Development M. Chodroff Hazel and Michael Hobbs for Sustainable Development Helen Lang Patricia Scharlin and Gary Taylor Programme Susan Clark Wolfgang Hoehenwarter Earth Share Paul Lasar Katie Carpenter and Peter M. Schulte USDA Forestry Service Melisande Congdon-Doyle Rebecca Hollingsworth Eddy Foundation / James S. Phillips Peter Lehner Robert Schumann Martha Wales Susan S. Coulter Patricia M. Holmes Roy Essakow Leon Lowenstein Foundation / Ted Shen Wallace Global Fund Custom Direct, Inc. Stephen Hopkins The Edith B. and Lee V. Jacobs Fund Kim Bendheim Isabelle and John Silverman Magnes Welsh Bruce T. Dalzell John R. Hunting / Jamee C. Field Lawrence H. Linden Greg Sparks WestWind Foundation Harvey Dann Richard Hurley Sandra C. Finn Elizabeth Ann Lurie Danielle Spiegel Mary J. Williams David L. Davidson John Fisher Paul B. MacCready Lise Strickler and Mark Gallogly Karin and Alan Wilzig Marianne G. Davis Robert J. Fisher Mary Stuart Masterson Surdna Foundation, Inc. Tom Wirtshafter Deanna Dawson Mr. and Mrs. F. Richards Ford, III. Brian K. and Anne S. Mazar Swiss Foundation for Solidarity World Wildlife Fund Elizabeth Denning Forest Trends Microsoft Matching Gifts Program in Tourism X-Rite John L. Dentler Fortress Investment Group LLC Bradley Miller Richard J. Tait and Karen Fries Vance Zavela Carol Despres Funders

Rainforest Alliance 2005 Annual Report 27 annual_draft_05.qxp 5/31/2006 4:39 PM Page 28

cont... Popp’s Ferry Elementary School Trans Pacific Telecom Events Joyce Haboucha Beau Gage and Glenn Ousterhout Adrienne Pratt Meagan Travlos Robert M. Hallman Jessie and Thomas Paul IBM International Foundation Premium Knowledge Group University of California at Labeeb M. Abboud Holly Hardman Judy and Robert Perl Kurt Jacobson Gail Prestera Santa Barbara Mieke and Bert Aerts Cathy and Lloyd Heller Pfizer Animal Health Carol Jewell Emma Puddefoot-Reynolds Glenn Vargas Kimberly and Nariman Afkhami Christopher Herrmann / Pictorial Offset Corporation Jewish Communal Fund Steven Rabinowitz Vasilius Family Cecilia and Santiago Aguerre Mannic Productions Potlatch Corporation A. S. Johnson Judith E. Randal Seeske D. Versluys Kerri Anderson-Corn Tammy and Larry Hershfield Rabobank International Judith Joy Julia Riddle Vestal Hills Elementary School Anderson-Tully Company ICF Consulting Group, Inc. Luis Rangel Ayala Kalisher and Caleb Kalisher Ben Rinehart Janet B. Watson Anonymous Debby and Hal Jacobs Geoffrey Ringelstein Christine Kasman Riverside Middle School Christine Weir Jai Imbrey and Bob Apfel Joan and Irwin Jacobs Rockefeller Brothers Fund Hope Keating Susanne M. Rohrbaugh Susan Wells ECOM / Atlantic (USA), Inc. Stacy and Paul Jacobs Florence and Anthony Rodale Dennis Keith F. Peter Rose Tracy Weston Vida and Behnam Badiee John and Evelyn Kossak Rothfos Corporation George Kinkle Sarah Rosen Robert F. White Baker & Hostetler LLP Foundation, Inc. Laleh and Alex Roudi Elizabeth L. Kiriazis Myron Rosenthal Jonathan Whitfield Balzac Bros. & Co. Inc. Diane Jukofsky and Chris Wille Martha A. and Robert S. Rubin Christina Kirk Bryan K. Rutledge Anthony T. Williams Elisabeth Bergan Maggie Lear and Daniel R. Katz SABMiller plc La Casa del Caffe S B D Inc. Sara B. Winter Beveridge & Diamond, P.C. KBHome Elena Sansalone and Jan Van Meter Donald J. Le Baige Stephane Samuel Blaikie Worth Board of Trade of the City of New Raymond Keane Patricia Scharlin and Gary Taylor Adele J. Lee Jay & Linda Sandrich Robert G. Zeller York, Inc. Dawn Kearney Dale Schlather David Levkowitz Cassie Savage Dewey K. Ziegler Anna and Michael Brennan Douglas Kimmelman Katie Carpenter and Peter M. Schulte Ann Lewis Evelyn Schmidt Canadian Pacific Railway Company Kingfisher plc Gina M. Seau Leslie Lewkow School District of Amery Central Lewmar L.P. Clay and Garrett Kirk Seventh Generation / Bart Liag Lucy Schulte-Danziger Mary and Adam Cherry Kirkland & Ellis LLP Jeffrey Hollender Valdin A. Lichter Jack P. Schwebel Chiquita Brands International Elysabeth Kleinhans Diana and Tim Sherogan Lissilaa Boutique Christine Semenenko Citigroup, Inc. Catherine Klema and David Resnick Jeanne Jackson-Siegal and Peter G. Lloyd Sisir K. Sengupa Karen and Howard Clark Kraft Foods Inc. Alan Siegal Frederick C. Lyman Rita Shamban John T. Compton Anthony Labozzetta Isabelle and John Silverman Mark Twain Elementary School Richard and Ruth Shearer Daterra & Bruzzi LLC David Larkin Miriam and David Smotrich Marymount Middle School Wil Shull Dependable Distribution Services / Lear Family Foundation Société Générale Robert McCollum Craig Siegel Bonnie and Harvey Weiner Kate Lear and Dr. Jonathan LaPook South Cone Trading Co. Rebecca Mead Stan Siegel Sandra and Roger Deromedi Lawrence H. Linden Mary R. Spicka Kimberly Mele Ronald C. Soltau Abigail Disney and Pierre Hauser Paul Liubicich SPP Capital Partners, LLC Marilyn Meyers South Elementary School Jay Dobson Luigi LavAzza S.p.A. Squire, Sanders & Dempsey LLP Holly Miller South Row Elementary School Domtar Inc. The Lyme Timber Company Starbucks Coffee Company Lucy Mills Martha Steenstrup Jacqueline and Rodman Drake Malcolm Pirnie, Inc. Frances W. Stevenson Philip Mindlin Karen S. Steingraber Henry Dunlop Manhattan Beer Distributors LLC Swiss Re Linda M. Monformoso Stephens Family Gift Fund Kyla duPont Jeffrey Mass Tembec Industries Inc. MTA New York City Transit Shaler Stidham Ecoventura / Galapagos Network Kevin McKernan The Forestland Group, LLC Nesbit Ferry Montessori Philippa Strahm ENVIRON International Corporation Sue Mecklenburg The New York Observer I. Douglas Newman Daniel Strickler Roy Essakow Barry Meinerth The Procter & Gamble Company Oak Meadow Elementary — Jay Strohmaier Favorita Fruit Company Mendocino Redwood Company, LLC Kristen and Richard Thompson NE Independent School District Alexis Strongin FedEx Kinko’s Maureen Michaels Time, Inc. Our Montessori School Linda Strumph Fimat USA, LLC Mitsubishi International Corporation Torys LLP Pace Academy Students of Holistic Living First National Bank /Robert Borgman Mohawk Paper Mills, Inc. Eliot Tubis Peter Paden Arthur Ochs Sulzberger Fletcher Global Management, LLC Morgan, Lewis & Bockius LLP Laura Turner Seydel Raphael Palefsky-Smith William Taylor Forest Stewardship Council U.S. National Federation of Coffee The Waitt Family Foundation Aldo Parcesepe Stephen S. Tezel Dr. Karl Fossum and Growers of Colombia Patsy McCook and Sidney Whelan Rex A. Parker The Bayside School Martina Leonard Theresa and Jeffrey Nedelman Kay White Parkmont Elementary School The Churchill School Fuji Hunt Photographic Chemicals, Inc.Paul Newman Mary J. Williams Ellen Petersen Alicia Todd Gibson Musical Instruments Holly and Dieter Nottebohm Karin and Alan Wilzig Ben Petruk Cheryl Tomchin Wendy Gordon and Larry Rockefeller Ogilvy & Mather Marine and Alexander Zagoreos Carlos Plumley Christopher D. Tower Grant Thornton LLP Michael O’Keeffe Cathy and Seymour Zises

28 Rainforest Alliance 2005 Annual Report

Contributors Pat and Bob Hughes Gwyn and Mark Rice In Kind Beth Lien The Four Seasons Restaurant Live with Regis and Kelly at WABC-TV The John Barrett Salon at Under $1,000 Lawrence D. Isen Nathalie and Ken Riis JN Financial Corporation Diane Bayles Roberts Magus Entertainment, Inc. Bergdorf Goodman Acqua Beauty Bar Moises Abadi Hilda and Christopher Jones Mary and C. Graydon Rogers Make A Better Place The Lowell Hotel, New York ACTUAR Make Up For Ever The Mural Factory / Cindy Avroch Susan Urquidi and Bret Jorgensen Tammy and Cameron Rooke Barry Abell Agroindustrias Unidas de Mexico / Manhattan Beer Distributors The Myriad Restaurant Group Anonymous Mary and Frank Judd Lisa and Hal Rose Cyrille Jannet Mannic Productions The New York Mets Lorena Arnold Beth and Peter Jupp Kristin and Edward Rosen Amazon Rainforest Vodka Maximus Spa/Salons The Perseus Books Group Julie Smith and Hooman Asbaghi Mina and Hamid Kazerouni Betsy and Eric Roudi American Symphony Orchestra MaxMara The River Café Lorna Auerbach John Kehoe Leah and Harry Rubin Art Wolfe, Inc. MAXX, NEW YORK Tiffany & Co. Arjang Babaknia Missy and Matt Kelly Mark Rubinstein Arthur Murray Dance Studio, Melanie Votaw Nature and Christopher Totman John Balint, MD Jeremy Koch Clare F. Saperstein Yonkers, NY Wildlife Photography Twisted Limb Paperworks Aveda Emma E. Barnsley Marianna Koval Oscar L. Schaps Mendocino Brewing Company Vintage Chocolate Imports / Balzac Brothers / Lowell Grosse Metamorphosis Day Spa Pierrick Chouard Christophe Barthelemy Eva Kuo Dennis Schumuiber Barthelemy Fine Arts Michael C. Fina Company Way Out Wax Candles Terri and David Bourne David Levkowitz Seaboard Marine, Ltd. Bergen Hills Country Club Mohawk Paper Mills Tensie Whelan William Bradley Shana and Bill Lew Stefan Shaffer Blue Hill Restaurant Montrachet Tom Wirtshafter Canadian National Railway Company Bart Liag Steve Shall Bouley Beata Moon / Composer and Pianist Wood-U-Believe / Bob Bouvier Dr. Lynn Helena Caporale Gavin Linde Dennis Shay Boyd Coffee Company Mike Mordell / Universal Forest Products Kimberly Ceballos Lissilaa Boutique Terry Sheldon Burberry National Baseball Hall of Fame Chrysalis Ventures Foundation / Ana and Jose Lombrozo Tofigh Shirazi Dr. Lynn Helena Caporale Natural Selection Bath and Body Linda Dicker Todd Lunstead Andrea and Erwin Shustak Cayuga Sustainable Hospitality Neenah Paper Chanterelle Cocoon Studio Christy and Toby MacFarlane Deborah Cooke-Smith and New Age Health Spa Chelsea Piers Sports & Entertainment Newman’s Own Organics Khashayar Mahmoudian James Smith Karl P. Coleman Complex Odegard Inc. Steve Colten Lisa and Maurice Maio Joseph Sorge Dahon Folding Bicycles Pacific Event Productions Gerald Cooklin Melissa and Hamid Mani Sunni and Mehrdad Tabrizi Dendor Wine Management Paratore Audio-Visual, Inc. Ralphael Dibianco Mary McBride and Richard Green Martin Tandler Diedrich Coffee / Martin Diedrich Patagonia Daniel Doucette and Scottye Lindsey Lorna and Christopher McKellar Ana Paula Tavares and Maury DiMauro Peju Province Ivy Dressler Colleen McNally Andrew Rosen Domtar, Inc Perlier Kelemata Earth Share / Kalman Stein Juliet Miller Karen and Richard Taylor ECOM / Atlantic (USA) Piedras y Pretties Jewelry by Ecoventura / Galapagos Network Mohamed T. El-Ashry Haida and Ali Mojdehi Julie Taymor Sarah K. Sweeney Elan Organic Coffees / Karen Cebreros Porto Rico Importing Company Kathy and Mark Fackler Christy and Alan Molasky Ariana Tharp Equinox Fitness Proyecto FODESTUR de la Cooperación Lori and Alvin Faierman Laura Moore and Gregory Olsen Pamela Thornton Evergreen America Corporation Técnica Alemana GTZ Clare and David Farley Danielle Mottale Trans Pacific Telecom, Inc. F. Gaviña & Sons, Inc. / Steve Ruiz Putumayo World Music Evva and Michael Fenison Dr. Manoj Motwani Kay Unger Fuji Photo Film U.S.A., Inc. Rebecca Kelly Ballet John Ferry Jill and Thomas Mullen Alidad and Ommid Vakili Fundación Corcovado Rodale Institute Barbara File Cheryl and Bill Naumann Petra and Klaas Van Der Kaaij Gamut Bistro Rodale Press Bernard Francois Robert F. Nelson Sharon and Michael Wall Gap, Inc. Eric Rothenberg and Catherine Ludden Cynthia Futter Lars Newsome John Warner Gibson Musical Instruments SeaWorld San Diego Lisa Giunta Sabrina and Alberto Giacomelli Caroline and Nico Nierenberg Sophy and Hans Wasmoeth Serafina Broadway Gotham Comedy Club Serendipity 3 Kamran Niknejad Trina and Greg Weiner Stacy Cromidas and Ruth Gilbert Green Mountain Coffee Roasters Sidney Frank Importing Company, Inc. Marleigh and Alan Gleicher Marilyn and Greg Noonan Magnes Welsh Sylvia Heisel Sierra Nevada Brewing Company Dr. Judith R. Glickman and Bettina and Matthew Osborne Annemieke Wijn Herbal Essences Silk Studio, Inc. Bud Glickman Stefano Palminteri Wine Brand Creations Jane Restaurant Specialty Coffee Association of America / Lynn Gorguze and Councilman Jacqueline and Reza Paydar Tom Wirtshafter Java City / Shawn Hamilton Ted Lingle and Joseph Rivera Scott Peters Marilia and Anthony Pernicano Lorri Wittmack John Wiley & Sons SQN Communications Design, Inc. Rebecca and Peter Grunwald Port Cargo Service, LLC / Jill and Bruno Wolfenzon Kenneth Cole Productions Starbucks Coffee Company Kiehl’s Since 1851 David Guss Kevin Kelly Susan and Brian Woods Fawn Stehlin Kraft Foods Inc. Stortz Lighting Eileen and George Haligowski Lee and Stuart Posnock Maryam Yazdi L.L. Bean, Inc. Pamela Sunday Marjorie L. Hart Pure Energy Hair Studio, Inc. La Nación Surdna Foundation W.A. Head Gil Quiniones Lake Quinault Lodge Susan’s Coffee and Tea / Linda Smithers Patricia M. Holmes Robert C. Quinlan Landmark’s Sunshine Cinema Tao Restaurant William Hubbard Victoria and Thomas Reed Late Show with David Letterman The Daily Show with Jon Stewart

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Summary of Activities Financials at a Glance For Fiscal Years ending June 30, 2004 and 2005 Fiscal Year 2005 Revenue Fiscal Year 2005 Expenses

Support and Revenue 2005 2004 Management / General 2% Fee for Services 4,526,856 3,391,067 Fundraising 6% Foundations / Corporations / Govt 2,255,435 1,747,444 Membership / Contributions 1,455,748 1,211,919 Program 92% Special Events 646,231 646,838 Government 3,496,090 1,579,201 Other 97,365 306,737 12,477,725 8,883,206

Expenses

Program 10,984,645 7,666,987 Fundraising 764,342 739,295 Management / General 195,158 134,171 11,944,145 8,540,453

Change in Net Assets 533,580 342,753

Summary of Net Assets

Unrestricted 1,288,405 236,518 Unrestricted-Recoverable Grant* (2,466,750) (2,500,000) Membership and Contributions 12% Temporarily Restricted 1,451,643 1,660,448 Special Events 5%

Total Net Assets 269,682 (260,281) Other 1%

Fee for Services 36% *In 1999, the Ford Foundation and John D. and Catherine T. MacArthur Foundation made a combined investment of $2.5M to support the expansion of the Rainforest Foundations / Corporations / Govt 46% Alliance Smartwood program. Beginning in FY2005, these recoverable grants are being repaid in annual installments, gradually reducing this negative fund balance back toward zero. Financial Overview

30 Rainforest Alliance 2005 Annual Report

SQN job no: 0510046 Client: Rainforest Alliance Project: Annual Report 2005 Date: 05APR06 Stage: draft 05, inside back cover Finished size: 11 x 8.5 inches Flat size: 22 x 8.5 inches Ink: 4/2 + emboss annual_draft_05.qxp 5/31/2006 4:40 PM Page 31

Board of Directors Fiscal Year 2005 Daniel R. Katz, BOARD CHAIR Labeeb Abboud, VICE CHAIR Bert Aerts Robert M. Hallman Martha Rubin Kerri A. Smith Diane Jukofsky* Peter M. Schulte Dr. Noel Brown Henry E. Juszkiewicz Martin Tandler Karen M. Clark Sudhakar Kesavan Jacqueline Weld Drake Jacqueline Weld Drake Mary Stuart Masterson Chris Wille* Karl Fossum, M.D. Anthony Rodale Mary Williams Wendy Gordon Eric Rothenberg Alan Wilzig Henry P. Davison II, EMERITUS Patricia J. Scharlin, EMERITUS Judith Sulzberger, M.D. EMERITUS *Non-voting member, also serves on Rainforest Alliance staff.

Credits EDITOR: Carol Goodstein EDITORIAL ASSISTANT: Eryn Loeb DESIGN: SQN Communications Design, Inc. www.sqndesign.com — with a generous contribution PRODUCTION: SQN Communications Design, Inc. PRINTING: Pictorial Offset — a Rainforest Alliance / FSC certified printer, SW-COC-1340 PHOTOGRAPHY: Cover: © Art Wolfe / www.artwolfe.com; Letter: Steffen Thalemann, Maggie Lear; Page 1: David Dudenhoefer; Page 2: Steve McCurry / Lavazza Tierra Project, Carlos Alberto Gonzalez; Page 5: David Dudenhoefer; Page 6: Steffen Thalemann, Tropical Forest Trust; Page 9: PhotoDisc, Julianne Schrader, David Dudenhoefer; Page 10: Sarah O’Braitis, Liza Murphy; Pg 11: Jonathan Labozzetta, Rainforest Alliance, Lisa Giunta, David Dudenhoefer; Page 13: David Dudenhoefer; Page 14: Chris Wille, Labeeb Abboud; Page 17: ICADE, Steffen Thalemann, Rainforest Alliance; Page 19: Rainforest Alliance; Page 20: David Dudenhoefer, Julianne Schrader; Page 21: Rainforest Alliance; Page 22: ATCO Sawmill, Chiquita; Page 25: Daterra, Steffen Thalemann, Julianne Schrader; Page 26: © 2005 Shari Silk

This annual report is printed on Domtar Proterra, one of the FSC certified papers in the Domtar EarthChoice line. We thank Domtar for their generous support through the donation of this paper. The paper used in this report is produced from raw materials that are certified by the Rainforest Alliance, to the standards of the Forest Stewardship Council (FSC). The FSC is an independent nonprofit organization devoted to encouraging the responsible management of the world’s forests. FSC sets high standards that ensure forestry is practiced in an environmentally responsible, socially beneficial, and economically viable way. Landowners and companies that sell timber or forest products seek certification as a way to verify to consumers that they have practiced forestry consistent with FSC standards. Soy-based inks were not used, because soybean production is a leading cause of rainforest destruction. For information about the Rainforest Alliance’s programs and achievements, please visit www.rainforest-alliance.org.

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Rainforest Alliance 665 Broadway, Suite 500, New York, NY 10012-2331 T. 212.677.1900 F. 212.677.2187 www.rainforest-alliance.org

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