HOW IS JUNKING THE JUNGLE BY DRIVING RAINFOREST DESTRUCTION IN INDONESIA 1 1 3 2 1. Peatland forest in Sumatra © Kemal Jufri / Greenpeace 2. Sumatran tiger © Alamy 3. Forest clearance for plantation development in Sumatra. May 2011 © Donang Wahyu / Greenpeace 4. Barge loaded with rainforest logs on way to pulp mill, Sumatra. © Greenpeace 5. Stockpiles of timber at APP’s PT Indah Kiat pulp and paper plant in Perawang, Sumatra. © Greenpeace / Daniel Beltrá 6. Inside an Asia Pulp & Paper mill in Sumatra, Indonesia. 7. Some KFC packaging is made from rainforest fibre supplied by Asia Pulp & Paper © Greenpeace 4 2 5 INTRODUCTION KFC is one of the most prominent fast food brands around the world. Its parent company Yum! Brands Inc., a company based in Louisville, Kentucky, USA claims to be the world’s largest fast food company 1 and last year reported revenue of more than US$12 billion.2 Greenpeace International research has revealed that KFC is sourcing paper for its packaging products from rainforests. This has been confirmed in China, the UK and Indonesia. Products found to contain rainforest fibre include cups, food boxes, French fries holders, napkins and the famous chicken buckets. Greenpeace research has tracked a number of these products back to Asia Pulp & Paper (APP), a company that continues to rely on rainforest clearance in Indonesia. By purchasing from APP and by using paper made from rainforests, KFC and its parent company Yum! are driving the destruction of forests in countries like Indonesia. These forests are a key defence against climate change and are habitat for many protected species including the critically endangered Sumatran tiger. Unlike a number of other major international companies, KFC and Yum! have no sustainability policies to exclude commodities connected to rainforest destruction. In fact, the group has consistently failed to even answer questions about its sourcing of products such as palm oil, soya and paper products. This is in contrast to Yum!’s main competitor McDonalds which has played an important role addressing deforestation in the Brazilian Amazon. While its supply chain still contains significant risks, McDonald’s has introduced policies to begin to address its forest impacts. 3 Greenpeace is calling on KFC, and its parent Yum! to immediately implement policies to exclude deforestation from their supply chains and to suspend the use of any products from APP while it continues to clear Indonesia’s natural forests. 6 3 7 Stockpiles of logs at APP’s Indah Kiat Perawang pulp mill. © Greenpeace ASIA PULP & PAPER - DRIVING RAINFOREST DESTRUCTION APP is the pulp and paper division of the its supply of rainforest logs from natural Sinar Mas group4 and claims to be the third rainforest clearance. By processing ramin for largest pulp and paper manufacturer in the pulp, APP is also undermining CITES,11 the world.5 It aspires to be number one,6 and same international conservation agreement by the rapid scale of its expansion it could governing trade in protected species that very well be on track.7 Yet APP’s operations covers ivory and tiger body parts. come at a devastating cost for the people dependent upon Indonesia’s forests, for These revelations come on the back of years endangered species like the Sumatran tiger of evidence showing that APP’s empire and for the future of the world’s climate. is built upon the systematic clearance Indonesia’s own data from the National of natural forest to feed its increasing Council on Climate Change (DNPI) position fibre consumption.12 Despite repeated it as the world’s third largest GHG polluter;8 claims that APP will end its reliance on it attributes some 85% of these emissions to natural forest clearance the company has land use – almost entirely from deforestation comprehensively failed to reach this goal. and peatland degradation.9 APP has been blacklisted by a host of major international brands, a number of which In February of this year Greenpeace tried and failed to encourage the company International released the results of a year- to reform its practices. NGOs such as long investigation into APP which found Rainforest Alliance and WWF have also that the company is systematically violating attempted to work with APP to reform its Indonesia’s laws protecting ramin, an practices, but without success.13, 14 internationally protected tree species.10 The investigation, undertaken at APP’s largest Global companies that have ruled out supply pulp mill in Indonesia, Indah Kiat Perawang, from APP include Nestlé15, Kraft16, Xerox17, on the island of Sumatra, has exposed how Unilever18, Adidas19, Mattel20, Mondi21, illegal ramin logs are regularly mixed into Metcash22, Hasbro23 and Danone 24. APP is chasing the containers represents over two on food packaging, like Jin fast food sector thirds (72%).26 Feng Yuan Paper (Shanghai) Co., Ltd (liquid packaging and In its quest to become the A significant proportion of cup board).30 APP China’s world’s largest pulp and paper APP’s paper production27 is brand new 600,000 tonnes/ company, the food packaging dedicated to packaging and year paperboard mill Guangxi 31 4 sector is an important market most of its paperboard brands Jingui Pulp & Paper Co., Ltd for APP. Approximately half the are certified for use in food is to be ‘one of the world’s world’s pulp production goes grade packaging.28 Some largest forest-pulp-paper into making packaging paper mills have developed special production base and [will] and board.25 Of this, packaging food grade products such as strive to become APPs base for for food and beverage Foopak,29 or focus exclusively paper packaging of liquids’. 32 I do not want to later explain to my granddaughter Almira that we, in our time, could not save Sumatran tigers – the forests and the people that under threat depend on it. I do not want to The Sumatran tiger is the last species of tiger left in Indonesia, tell her the sad news that tigers, with the other two tiger species having become extinct more rhinoceroses, and orangutans than 40 years ago.34 Today, only 33 400 Sumatran tigers exist in vanished like the dinosaurs. the wild35 and the species has suffered a rapid loss of habitat in Indonesian President Susilo Bambang Yudhoyono, September 2011 the past decade. In 2003, 80% of Sumatra’s peat swamp forest was identified 2 as tiger habitat. Between 2003 and 2009, Sumatra lost nearly a third or 800,000 hectares of these same peat swamp forests. Some 22% of this loss occurred in areas currently allocated to APP’s log suppliers. 36 Greenpeace mapping analysis of data from the Indonesian Ministry of Forestry shows that APP’s pulpwood suppliers have been a significant driver of the clearance of Sumatra’s peat swamp forests, a key habitat for the endangered Sumatran tigers. This has pushed tigers into closer contact with humans, often with tragic consequences for both sides.37 Some of the rainforest fibre identified in KFC packaging is coming from APP mills which 5 are fed from cleared Sumatran tiger habitat. KFC and its parent 2. An endangered Sumatran tiger, found trapped in an acacia company Yum! are therefore plantation belonging to Arara Abadi, a supplier to APP in Pelalawan helping to drive the Sumatran District in July 2011. Rainforest mapped as tiger habitat was being cleared in this same area. Tragically a rescue effort failed and the tiger closer to extinction. tiger later died. © Melvinas Prianandra / Greenpeace New Evidence: APP’S ON-GOING RELIANCE ON 1 0°9’9”S 102°47’7”E RAINFOREST CLEARANCE APP has committed on three separate occasions to end its use of natural forest fibre. In 2004 the company pledged to use only plantation fibre by the end of 2007.38 In 2007, it changed the date, this time giving the end of 2009 as a target.39 The most recent statements from APP have moved this commitment back to 201540 – the company therefore acknowledges it will continue to clear rainforests until at least 2015. And, of course, given its history there is no reason to believe this latest commitment will be met. In 2012, natural forest clearance has continued, including areas of peat swamp forests mapped as habitat for the Sumatran tiger. The Kerumutan Peat Swamp Forest41 in Riau is one of Indonesia’s last remaining areas of extensive forested peatland. The landscape has been designated a regional priority for the survival of tigers in the wild.42 APP is supplied from six concessions in Kerumutan, totalling over 150,000 hectares.43 Mapping analysis shows that these concessions cover significant areas of deep peat and forested tiger habitat.44 PT Mutiara Sabuk Khatulistiwa is one of these suppliers. It was identified in a confidential 2007 Sinar Mas Forestry document as a target supply area, with a size of 45,000 hectares.45 Analysis reveals that 100% of the area is mapped as peatland greater than 3 metres deep, and more than 90% of the area was forested tiger habitat 1. Rainforest clearance in PT MSK, an Asia Pulp and Paper 46 in 2006. Forest clearance and peatland (APP) supplier concession, 6 drainage has been repeatedly documented by February 2012 © Kemal Jufri / Greenpeace, most recently in February 2012 Greenpeace (see pictures right). These peat swamp forests 2. Excavators stockpile are also habitat for the protected tree species rainforest logs following ramin, the same species repeatedly identified forest clearance in PT MSK. The area is mapped as deep waiting to be pulped at APP’s largest mill, peat. February 2012. Indah Kiat, Perawang. © Kemal Jufri / Greenpeace 2 0°9’6”S 102°47’14”E 1 2 Indonesia Sumatra 7 Scale 1:600000 0 10km 10mi 3 AND THEIR ROLE IN FOREST DESTRUCTION 1 2 KFC is the largest fast food brand within the Yum! evidence that the company has a comprehensive 1.