Forestry Section

1
Recent Campaign Developments
Forestry Section Montreal February 6th, 2006
2
Where are the Campaigns Going?

• Activists remain focused on high profile
  customers
• Emphasis on cataloguers, publishers financial
  institutions
• Greenpeace on Kimberly-Clark
• RAN on TD Bank
• Forest Ethics on Victorias Secret
• Next Targets
• J Crew, LL Bean, Sears Lands End
• Expanding to customers with multi-sector exposure
• E.g. Tiffany, Birks
• Accessing distributors and data

3
Campaign StatusKey Issues Role of Other
Players

• Key Issues
• Woodland Caribou Habitat
• Recycled content (PCW)
• Paper use reduction 
• Endangered Forests
• Protected Areas
• Certification  CoC
• Increasingly linking to Macro issues
• Climate Change
• Forest Loss
• Responsible value chain (fibre cycle, illegal
  logging)
• Endangered Species
• Role of Other Players
• Pressure on other sectors (Oil, Mining)
• Government starting to act
• Engagement by banks
• Foundations open to partnership

4
Customer Status Profile is Changing
2004

• Engaged Buyers (20)
• Major buyers of forest products, major brands
• More knowledgeable
• Dedicated staff on sustainability issues
• Better prepared but risk averse
• Aware buyers (40-50)
• Across sectors various company sizes
• In regions where sustainability is a concern
• Awareness grown over the past 5 years
• Recognize that they need to do more
• Have yet to face impact of ENGO efforts
• Disengaged buyers (30-40)
• Not all that aware of issues
• Not all that concerned

Engaged
Disengaged
2006
Engaged
Aware
Disengaged
5
Status Customers Perceptions

• Confidence in Canadian products is high/higher
  than in the past
• Canada seen as a leader, if not superior in
  sustainability
• Canada seen as having responded well to
  expectations
• But.
• Remaining fear of exposure to ENGO campaigns
• Substance of our efforts is only known by the
  engaged buyers
• They will not become defenders of suppliers
• Want industry to be out there to tell its story
  more proactively
• Certification is the leading reference point for
  sustainability. FSC is winning the communication
  battle in the US marketplace

Proactive work with partners on substantive
issues is reason for our success