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com Claire Adam at +44 (0) 23 8011 1220 or c.adam@tft-forests.org

HOLD FOR RELEASE UNTIL 08:00 GMT ON 5 FEBRUARY 2013

Paper Giant Pledges No Deforestation

Citing historic turning point in story of Asia Pulp and Paper Forestry non-profit brokers agreement to end destructive practices; Suggests revolutionary role for private sector in slowing climate change
JAKARTA, INDONESIA (5 February 2013)In an agreement brokered by TFT (the Forest Trust), a global forestry non-profit, Asia Pulp and Paper Group (APP) announced today an immediate end to all natural forest clearing in its supply chains in Indonesia. The companys pledge, along with its improved transparency and accountability processes, will help protect some of Indonesias most important remaining forest areas, home to Sumatran tigers and orangutans; recognize and respect the rights of the regions indigenous peoples, many of whom depend for their livelihoods on forest resources; and protect forested peatlands that store massive amounts of greenhouse gases. APPs decision marks a turning point for the role of industry in the destruction of the worlds most vulnerable forest regions, said Scott Poynton, the executive director of TFT, which worked closely with APP and with Greenpeace as the two negotiated meaningful new conservation guidelines for the company. If one of the worlds largest paper producers can identify a way to clean up the complex social and environmental issues that plague its supply chain, then others can do so too. This should mark the start of a global push to address the most destructive drivers of deforestation worldwide. In todays announcement, APP outlined a set of policiespart of its agreement with TFT that will end its role in the practice of destroying forests to make room for tree plantations. The company also pledged to respect the rights of forest-dwelling communities and bring all third-party suppliers into line with its sustainability efforts. The new policies, which went into effect February 1, apply to all of the companys operations around the world, its suppliers in Indonesia as well as its paper mills abroad, including those in China. Poynton says the agreement is unprecedented for APP. Globally, he adds, it represents a possible tipping point for using the influence of advocacy groups such as Greenpeace to affect the role of the private sector in global deforestation and climate change. The key, he says, is to hammer out a strategy for how industry can do the right thing while surviving economically. APPs commitments are far-reaching, Poynton said. There is of course a lot of work to be done to implement the policy in its entirety, particularly on the social and community engagement front where conflicts between the company and communities remain. But that work is underway, as are the tactics TFT will use to monitor and transparently report their progress. APPs commitments show other producers worldwidewhether they sell pulp and paper, palm oil, soy, or beefthat it is possible to run a business without destroying humanitys habitat.

TFT has a proven track record of designing deforestation-free supply chains for companies worldwide from a timber company in the Republic of Congo to a shoe retailer in the European Union. Most notably, TFT has shaped no deforestation policies for the food powerhouse Nestl and the worlds secondlargest palm oil producer, Golden Agri-Resourcesin 2011, TFT successfully helped GAR launch a Forest Conservation Policy. TFT is now using this same model in working with APP to change the way it supplies its mills with fiberthe building block of the companys internationally-produced and distributed paper products. Half of TFTs 100-member team is based in Indonesia, where they work directly with suppliers feeding into global supply chains. If our experience with other companies is any indication, were confident that this partnership will enable APP to truly turn over a new leaf, Poynton said. With little hope that worlds governments will ever agree on a climate change treaty, companies have a huge role to play in reducing emissions, and deforestation has always been a primary target. We will closely support and monitor APP to make sure its contribution is realized. The forest conservation policy that APP unveiled today with TFT and Greenpeace includes the additional commitments that were implemented with immediate effect on 1 February 2013 under the supervision of TFT. APP and its suppliers will only develop non-forested areas, as identified through independent High Conservation Value Forests (HCVF) and High Carbon Stock (HCS) forests assessments. It will suspend suppliers that do not comply with these guidelines, which identify forests with high ecological, social (HCVF), or climate change mitigation (HCS) value. APP will support the Indonesian governments efforts to reduce greenhouse gas emissions by ensuring that forested peatland is protected and that GHG emissions from these natural resourcesknown to store significant amounts of carbonare reduced or avoided. To avoid and resolve social conflicts across its supply chain, APP will work with stakeholders, including civil society, to implement free, prior and informed consent of indigenous people and local communities; the responsible handling of complaints and of conflict resolution; and open and constructive dialogue with local, national and international stakeholders. Furthermore, APP will respect the rights of indigenous peoples and local communities where new plantations are proposed. This includes recognition of customary land rights.

We have reached this point by working closely with APP and some of its stakeholders, including Greenpeace, to get our arms around the complexity of the issues facing the company, Poynton said. Our discussions have been informed by the realities of the fieldour teams are out there studying APPs practices and those of its suppliers; talking with communities and visiting factories; as well as learning the social and political dynamics of the many different regions where APP has operations. The bottom line is that APP cant keep going in business the way it has been; customers dont want deforestation. ### About TFT (The Forest Trust): Established in 1999, TFT is a global non-profit that helps businesses bring responsible products to market. Responsible products improve peoples lives and respect the environment at all stages of the product lifecycle. TFT helps its more than 90 members worldwide build responsible supply chains by identifying and addressing embedded social and environmental issues. Having established a strong record of achievement in timber supply chains, TFT has expanded its work into palm oil, leather and stone. TFTs has offices in 15 countries, and an on-the-ground presence in many morewww.tft-forests.org