World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search

 


Warning to Financiers - Don't Fund Forest Destruction

Press Information From The European Environmental Paper Network (EEPN)

FOR IMMEDIATE RELEASE - Tuesday 6 November 2012

Warning to Financiers - Don't Fund Forest Destruction

Financial institutions have been warned today to avoid investments in pulp and paper mills associated with deforestation and human rights abuses in Indonesia. Sixty environmental and social non-governmental organisations, including a dozen Indonesian civil society groups, have sent letters to banks and other financial institutions around the world asking for assurances that they will not invest in increased pulp milling capacity by Asia Pulp and Paper (APP) or other companies associated with the Sinar Mas Group until reforms have been achieved.

Three representatives from Indonesian social and environmental NGOs that are signatories to the letter will travel to Europe this week to meet with investors, governments, NGOs and media in eight countries. They will present information on the social and environmental impacts of APP and other Indonesian pulp and paper manufacturers.

Aidil Fitri, who will travel to Europe to represent Yayasan Wahana Bumi Hijau, said, 'In South Sumatra APP is destroying natural peat lands forest, which is a living place for Sumatran tigers. In Jambi, Sumatra, APP has caused the loss of livelihood resources of thousands of local people. In Riau, Sumatra, APP is strongly indicated to have links with an illegal logging scandal and is currently being investigated by the Ministry of Environment.'

Asia Pulp and Paper (APP) is one of the world's most controversial pulp and paper companies. It is reported to be planning a new pulp mill in Sumatra, Indonesia where the company is estimated to have already pulped more than two million hectares of natural forests. This new mill would produce between 1.5 and 2.0 million tonnes per year of bleached hardwood pulp, making it the largest single pulp line in the world.

The letter highlights APP's past failures to honour its environmental covenants and to fulfil its financial obligations to investors. It also points to the loss of market confidence in APP, signaled by the loss of a number of high-profile customers (such as Staples, Office Depot, Hasbro, Mattel, Unilever, Nestle, Danone, Xerox and Mondi) as a result of concerns about its deforestation practices, community conflicts and the business and reputational risk to buyers.

Sergio Baffoni, Indonesian Forests Campaign Co-ordinator for EEPN, said, 'APP's hunger for fibre for cheap paper already leads them to unsustainable and legally questionable deforestation. Expansion of their pulp capacity will inevitably involve conversion of more and more rainforests into plantations, endangering species, violating local peoples’ rights and accelerating climate disaster.'

Bustar Maitar of Greenpeace International said, 'Asia Pulp & Paper's repeated promises to become sustainable have been proven greenwash time and time again. Financial institutions should not be involved in APPs' deforestation in Indonesia.'

--

Notes for editors

1. The European Environmental Paper Network (EEPN) is a coalition of 64 environmental and social NGOs in 24 countries that share a common vision for transforming the European paper industry to become ethical and sustainable.

2. The letter has been delivered to banks and investors in Indonesia, China, Japan, USA, South Africa, Switzerland, Germany, France, Austria, Taiwan, Australia and Sweden and published on the EEPN's website: http://environmentalpaper.eu

Forest Peoples Programme

http://www.forestpeoples.org

ENDS

© Scoop Media

 
 
 
 
 
World Headlines

 

Myanmar Election: UNICEF Urges Prioritisation Of Children

With 99 days to go before Myanmar elections, UNICEF urges candidates make children the clear winner More>>

Liberia Thousands Of Unregistered Children Born During Ebola Crisis

Thousands of unregistered children born in Liberia during Ebola crisis at risk of exploitation – UNICEF More>>

UN Refugee Agency Envoy Angelina Jolie Visits Myanmar

UNHCR Special Envoy Angelina Jolie Pitt (left) in Myitkyina township, Kachin State, Myanmar, meeting with some of the 100,000 displaced people who currently live there. Photo: UNHCR/T.Stoddart More>>

As Health Needs Rise In Somalia, Funding Hits New Low

As health needs rise in Somalia, funding hits new low, cutting off 1.5 million from care – UN More>>

Need To End Violence Against Children In Conflict

‘We should be outraged’ more not being done to end violence against children in conflict – UNICEF chief More>>

On Mandela Day, UN Joins Call To Promote Community Service

Nelson Mandela, then Deputy President of the African National Congress of South Africa, raises his fist in the air while addressing the Special Committee Against Apartheid in the General Assembly Hall. UN Photo/P. Sudhakaran More>>

Some $3.2 Billion Needed For Ebola Recovery Efforts

Some $3.2 billion needed for Ebola recovery efforts in Guinea, Liberia and Sierra Leone – UN More>>

World Day: UN Spotlights Plight Of Vulnerable Populalations

Syrian refugees fleeing the fighting near the Syrian city of Kobani wait in a holding area before boarding buses in Turkey (September 2014). Photo: UNHCR /I. Prickett More>>

Afghanisatan: Direct Talks Between Government And Taliban

The United Nations Security Council has welcomed the recently held direct talks between Afghan Government and Taliban representatives as a step towards “peace and reconciliation” in the region. More>>

Eradicating World Hunger By 2030

Agriculture workers collect carrots on a farm in Chimaltenango, Guatemala. Photo: World Bank/Maria Fleischmann More>>

Bangladesh: Flood Leads To UN Agency Providing Food Relief

Anwar Hossain unloads cartons of High Energy Biscuits from a pickup truck and transfers them to a distribution center in Kawar Khop union, Ramu upazila, Cox’s Bazar, Bangladesh. Photo: WFP/Kamrul Mithon More>>

Get More From Scoop

 
 
 
 
 
World
Search Scoop  
 
 
Powered by Vodafone
NZ independent news