The Future of Our Forests

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THE FUTURE OF OUR FORESTS

Anti-deforestation pledges are a positive step forward for companies beginning to assess their environmental impact. But after this first step, what comes next? Domtar, with the support of key partners, explains why Forest Stewardship Council® (FSC®) certification is the strongest approach.

THE CRUCIAL

ROLE OF FORESTS

Forests make up nearly one-third of the land area on our planet. 1.6 billion people rely on the benefits that forests offer, including food, fresh water, clothing, traditional medicine and shelter. In addition, many of the world’s most threatened and endangered animals live in forests.

Forests are also essential to mitigating the negative effects of climate change. They serve as crucial carbon stores, soaking up carbon dioxide that would otherwise be left in the atmosphere.

But today, the world’s forests are being threatened as the demand for development, agriculture, beef and other products grows worldwide. As many as 58 thousand square miles of forest are lost each year – the equivalent of one football field every two seconds.

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The Main Drivers of Deforestation

1. Agriculture

The biggest threat to forests is agricultural expansion, which accounts for 70 percent of global deforestation. All too often, converting forests to agricultural uses strips the soil of vital nutrients, requiring farmers to clear new areas of land every few seasons. Farming can also be responsible for water pollution and habitat destruction, especially in tropical regions where many of the most in-demand products thrive.

2. Beef Production

Forestland is being converted into pastures at alarming rates to support the beef industry, especially in developing countries such as

Brazil. Because of the carbon that is released when trees are felled, this type of deforestation is responsible for 14.5 to 18 percent of global greenhouse gas emissions. The problem is worsened because cattle produce significant amounts of methane, a heat-trapping gas, during the digestive process.

3. Development Patterns

The global trend of urbanization is another driver of deforestation. The rise of the middle class has increased the demand for products and resources, including palm oil, soy, rubber, coffee, tea, rice and many others. In addition, rapid economic expansion leads to the construction of roads and infrastructure, putting further pressure on forestland, especially in underdeveloped countries.

The scenario poses a difficult dilemma. In many cases, human needs are in direct opposition to the protection of forestland. Therefore, creative solutions must be developed to help responsibly meet demand.

In many cases, human needs are in direct opposition to the protection of forestland.

Therefore, creative solutions must be developed to help responsibly meet demand.

Stopping Deforestation: A First Step

While we can all agree that forests are worth saving, there is much debate about the correct method, given the complicated circumstances.

One approach is to stop deforestation entirely, especially in parts of the world where it has been particularly severe, such as Indonesia and

Brazil . Many governments, companies and organizations have recently pledged to enact complete bans on the harvesting of natural forests – striving for zero deforestation.

The primary issue with zero deforestation is that, when taken alone, this pledge often lacks specific guidelines regarding the quality of the forestland that remains. Without clear principles for management, it can be difficult to ensure that forests will remain as healthy as possible.

In addition, zero deforestation can be difficult to achieve in practice, because the demand for forest products doesn’t simply subside after a pledge is made. In order for developing countries to continue growing their economies, demand must somehow be met. As a result, alternative systems have arisen to allow for more flexibility – one of which is called zero net deforestation (ZND).

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What is Zero Net Deforestation?

ZND requires that harvested forests must either be replaced with new monocultural plantations or through regeneration, so the total loss is zero.

This approach has quickly gained traction. In fact, it has many reputable supporters, some of whom have put forth the goal of mobilizing resources to help achieve ZND by 2020. Although the concept certainly has a progressive sentiment, in practice, it can mean many different things – and the effects are not always positive.

The Uncertainties of ZND

Put simply, natural forests and newly planted trees are not created equal. While offsetting logging by replanting may appear to solve the problems on the surface, this practice has a very real potential to diminish the quality of a forest.

Forest conservation experts agree. According to Dr. Sandra Brown of Winrock International and Dr. Daniel Zarin of the Climate and Land

Use Alliance, ZND “inherently and erroneously equate[s] the value of protecting native forests with that of planting new ones.”

Here is Why:

• ZND pledges too often discount the unique biodiversity of natural forests, as compared to tree plantations – which are often monocultures that grow a single type of tree species.

• ZND pledges may lead to a greater release of carbon dioxide into the atmosphere, if natural forests are converted to plantations (although some organizations pledging ZND have smartly set separate targets to monitor carbon loss).

Forest Stewardship Council® (FSC®) certification is a stronger approach than zero deforestation or zero net deforestation alone.

FSC places an emphasis on protecting water quality, which is crucial for the overall health of a forest and its ability to support plants and wildlife. The FSC certified forest pictured above supplies Domtar’s Windsor, Quebec mill.

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• ZND pledges alone do not take into account the conditions of human communities that rely on natural forests for survival.

• ZND pledges alone do not monitor water or air quality, which in turn affect the quality of life for people, plants and animals.

On the surface, ZND may seem like a clear and realistic solution. However, upon further examination, it quickly becomes apparent that more holistic thinking is needed around this topic.

“Without proper safeguards, a zero deforestation target could promote conversion of natural forests for industrial tree plantations, undermining efforts to slow climate change and preserve biodiversity,” said Rhett Butler, the president of Mongabay.org, a non-profit that seeks to raise public interest in forests.

THE CARBON QUESTION

Forests act as natural carbon stores, which is why they play an important role in mitigating the negative effects of global climate change.

The amount of carbon stored within an area of land varies based on the type of vegetation. Natural forests are considered “high carbon stock” (HCS) because larger, older trees are able to store more carbon than smaller, younger plants.

When trees are felled, this carbon is released into the atmosphere. Therefore, conversion of forestland is closely tied to greenhouse gas emissions.

Every individual plant serves as a key puzzle piece in the larger forest ecosystem. FSC certified forests are able to support a diverse range of plant types, to create a healthy habitat for wildlife.

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Third-Party Certification:

An Essential Tool in

Sustainable Forest Management

At its core, the word “sustainable” refers to endurance – the ability to remain for years to come. Therefore, sustainable forestry requires using land in a way that maintains its regeneration capacity, and protects its full potential to fulfill ecological, economic and social functions.

While anti-deforestation commitments are certainly preferable to inaction, they are not the most sustainable course of action. When taken alone, zero deforestation policies do not go far enough to address issues such as biodiversity or air quality. In addition, ZND pledges have the potential to pose a serious threat to natural forests, by replacing them with plantations.

The world’s forests require a more thoughtful and comprehensive approach – one that measures the quality of forests, in addition to the quantity of trees. That is where responsible third-party certification comes in.

There are more than 50 forest certification systems worldwide, with the two largest being

Forest Stewardship Council® (FSC®) and

Programme for the Endorsement of Forest

Certification™ (PEFC™).

Despite the many available options, FSC certification is widely considered the gold standard of forest management. Its governing rules are clear and defined, and include numerous elements that are not consistently addressed within anti-deforestation pledges alone. In fact, FSC is the only program that specifically restricts the conversion of natural forests to monoculture plantations or nonforest uses.

To meet FSC standards, forest operations must meet rigorous environmental, social and economic requirements, as confirmed by independent third-party auditors. Among other things, these requirements:

• Protect water quality

• Restrict the use of highly hazardous chemicals

• Place limitations on clearcutting to preserve forest ecology

• Protect high conservation value forests, such as rare old growth

• Prevent the loss of natural forest cover

• Protect customary rights of indigenous people and local communities

• Ensure democratic and transparent governance

“FSC or equivalent certification provides the most robust and comprehensive solution.”

-Richard Donovan, Rainforest Alliance

Major environmental organizations such as the Rainforest Alliance, the National Wildlife

Federation, the Nature Conservancy and

Greenpeace tout the credibility and superiority of FSC over alternative certification systems.

“Zero deforestation efforts are critically needed, but we should be clear that they are a starting point,” said Richard Donovan, SVP & VP Forestry at Rainforest Alliance. “Ultimately, FSC or equivalent certification provides the most robust and comprehensive solution – this is something that we and most of the organizations working to halt deforestation agree on.”

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Global FSC Certificates By Forest Type

Worldwide, nearly 62 percent of FSC certificates are granted to natural forests, while less than 10 percent of certificates are granted to plantations. In order for a plantation to become certified, FSC requires that 10 to

30 percent of land is restored to natural forest conditions. Natural forests tend to include a more diverse range of plant and animal species, and are able to adsorb higher levels of carbon.

Plantations

9.14%

FSC Certified Forest Area

(Millions of Hectares)

Natural Forests

61.69%

Mixed Plantation and Natural Forest

29.15%

Plantation

Mixed Plantation 53.43

& Natural Forest

*Source: Forest Stewardship Council, Sept. 2014

Natural forests have unique characteristics that aren’t always found in plantations. A majority of the FSC certificates awarded worldwide are for natural forests, such as the one above, which supplies Domtar’s Windsor, Quebec mill.

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Domtar believes that FSC certification is the best way to ensure that our forests will remain intact forever.

In fact, this goal is core to

Domtar’s business.

Domtar’s mills are supplied by North American forests across the United States and Canada. The FSC certified forest above is located in New Hampshire.

Domtar’s Approach

In 2002, Domtar revolutionized the industry when it became the first forest products company in North America to offer an FSC certified line of copy paper – and today,

Domtar’s EarthChoice® Product Line includes the widest range of FSC certified paper on the

North American market. To date, the company has sold more than five million tons of FSC certified paper, a first for the industry. This success proves that maintaining a profitable business doesn’t need to be in conflict with protecting the environment.

“The success of EarthChoice shows that there is real demand for paper that comes from sustainably managed forests here in North

America,” said Paige Goff, Vice President of

Sustainability and Business Communications at Domtar. “Our customers recognize that when they purchase from Domtar, they are dealing with a company whose longstanding commitment to responsible forestry is proven.”

Since partnering with FSC more than a decade ago, Domtar has continued to raise the bar by encouraging small landowners across North

America to achieve certification for their forests, which supply the fiber that ultimately goes into Domtar’s products.

“FSC offers a real solution by protecting the environmental and social values inherent in natural forests, even as global demand continues to grow,” said Corey Brinkema,

President of FSC US.

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The Rainforest Alliance

Domtar has been a consistent supporter of the FSC system, which has included rigorous forest and chain-of-custody auditing by Rainforest Alliance. In fact, all FSC certified EarthChoice products also include the Rainforest Alliance Certified™ seal.

This globally recognized symbol of sustainability assures consumers that products

come from responsibly managed forests.

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MILESTONES IN OUR RELATIONSHIP

By working with FSC to develop the certification system that is now considered the gold standard, Domtar put forth a new model for how Fortune 500 companies and leading NGOs can work hand-in-hand.

1993

FSC was established as a little-known entity in forest management.

1997

Domtar participated in several important forest management initiatives, including the Ontario government’s Lands for Life project.

1998

FSC Canada approached Domtar for assistance in developing a forest management standard for the Great Lakes - Saint Lawrence region of Canada and the Northeastern U.S. Domtar agreed to learn more about the new forest management program to help develop a workable standard.

2000

Through a collaborative effort, Domtar became the first forest products company in North America to achieve FSC certification for its lands in the

Adirondack Mountains in Upstate New York.

2002

Domtar manufactured its first ton of FSC certified paper, which established a new benchmark for the paper products industry in North America.

2005

The EarthChoice ® Product Line was officially launched as Domtar offered the first FSC certified, general-use line of copy paper in the North American market.

2009

Domtar celebrated a significant milestone with the sale of its millionth ton of FSC certified paper.

2012

Domtar announced the goal to procure 100 percent of its fiber from sources that are certified to the FSC standard, upping its commitment to help increase the supply of certified fiber in North America.

2014

Domtar celebrated the sale of five million tons of FSC certified paper, cementing its position as an industry leader.

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What’s Next:

A Long-Term Solution for Forests

In the immediate future, it is absolutely necessary to combat the forest loss that is occurring worldwide. But while addressing deforestation is a commendable first step, it is not a final solution. In the longer term, organizations must identify a comprehensive approach that goes further than stopping destruction.

“Ending deforestation is an important goal, but the real challenge is wider than that,” said Kim

Carstensen, Director General of FSC. “We need to manage the forests, so that they maintain their crucially important variety of social, environmental and economic values.”

The battle against deforestation should not be seen as an isolated cause – rather, it should be integrated into a broader system for sustainable management. Domtar strongly believes that a commitment to third-party certification, and FSC in particular, is the most holistic and meaningful solution.

“At Domtar, we are optimistic about the future.

While many companies are beginning to set anti-deforestation pledges, we’re looking toward what’s next,” said Goff. “In the long term, we believe that a preference for third-party certified products is critical to protecting the health of the world’s forests – and ensuring that they remain for decades to come.”

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The battle against deforestation should not be seen as an isolated cause – rather, it should be integrated into a broader system for sustainable forest management. Domtar strongly believes that a commitment to thirdparty certification, and FSC in particular, is the most holistic and meaningful solution.

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Greenpeace International. “Weaker Certification Schemes.” http://greenpeace.org/international/en/high/ campaigns/forests/solutions/alternatives-to-forest-destruc/Weaker-Certification-Schemes/)

Mongabay.com. “Zero net deforestation is the wrong target, warn experts.” http://news.mongabay.

com/2013/1114-zero-net-deforestation-wrong-target.html

National Geographic. “Deforestation.” http://environment.nationalgeographic.com/environment/globalwarming/deforestation-overview/

Rainforest Alliance. “Our Work in Sustainable Agriculture.” http://www.rainforest-alliance.org/work/ agriculture

Rainforest Alliance. The Frog Blog. “Colombia vs. Brazil: Can History Be Changed?” http://thefrogblog.org.

uk/2014/07/04/colombia-vs-brazil-can-history-be-changed/

Resilience.org. “Report Links Beef Production with Deforestation, Threats to Climate and Health.” http:// www.resilience.org/stories/2012-06-30/report-links-beef-production-deforestation-threats-climate-andhealth

Science Magazine.org. “What Does Zero Deforestation Mean?” http://www.sciencemag.org/ content/342/6160/805.short

The Consumer Goods Forum. “Board Resolution on Deforestation.” http://www.theconsumergoodsforum.

com/strategic-focus/sustainability/board-resolution-on-deforestation

Trust.org. “ ‘Zero net deforestation’ goals may harm natural forests – experts.’” http://www.trust.org/ item/20131114180757-53gin/?source=spotlight

United Nations. “New York Declaration on Forests Action Statement and Action Plants.” http://www.

un.org/climatechange/summit/wp-content/uploads/sites/2/2014/09/FORESTS-New-York-Declaration-on-

Forests.pdf

World Wildlife Fund. “Overview.” http://www.worldwildlife.org/threats/deforestation

World Wildlife Fund Global. “Zero Net Deforestation.” http://wwf.panda.org/what_we_do/how_we_work/ conservation/forests/zeronetdeforestation/

World Wildlife Fund. “Zero Net Deforestation by 2020: A WWF Briefing Paper.” http://d2ouvy59p0dg6k.

cloudfront.net/downloads/wfc_2009_wwf_2020_zero_net_deforest_brief_rt_final_coms.pdf

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