|
“Change is painful but the failure to change is the kiss of
death.”
As I fly through the air on my way back to North Carolina
from the International Paper (IP) annual shareholder meeting in White Plains
New York, I can’t help but wonder just how long it will take for IP’s CEO, John
Faraci, to get it that his company’s production of paper is devastating forests
and that continued business as usual is a sure recipe for ecological and
financial disaster.
John Faraci, in the midst of major financial turmoil in the
global paper industry, has positioned IP as the global leader in paper
technology and production efficiency – effectively retooling old paper mills to
produce the same or more paper at less cost to IP. Certainly this is the kind of guy that, if he
put his mind to it, could also position IP as a clear leader when it comes to
forest practices. Yet IP is throwing up
nothing but excuses when its customers approach them about producing products
without destroying forests.
Meanwhile, positive change is happening all around IP. IP customers in the office supply market have
set aggressive goals for expanding their purchases of post-consumer and FSC
certified paper. Some of these companies
are shifting paper purchases to companies other than IP that are able to meet
higher environmental standards. IP isn’t
even in the race with some of its competitors when it comes to taking real
action to improve forestry practices.
And, as if pressure from customers and competitors weren’t
enough, IP is even getting the squeeze from shareholders. Domini Social Investments introduced a
shareholder resolution this year calling on the company to produce a
feasibility report on transitioning all of its fiber to FSC certified and
recycled sources. Domini filed a similar
resolution with MeadWestvaco – one of IP’s major competitors in the packaging
sector. While MeadWestvaco agreed to
take action on the resolution and will be producing a report over the next
year, IP stubbornly stood opposed to it. Why IP would oppose this resolution is very
difficult to understand, given that the marketplace is becoming more
sophisticated in its understanding of forestry issues and is increasingly
endorsing recycled and FSC certified paper as environmentally preferable to
business as usual.
My colleague Andrew Goldberg and I flew to New York to attend the IP annual shareholder
meeting hoping to get some answers. We
asked Mr. Faraci why IP has not been meaningfully engaged with Dogwood
Alliance, the leading organization in the Southern US
(where IP’s operations are most concentrated) driving change in the marketplace
with its customers and competitors, in trying to resolve concerns about IP’s
forest destruction. We also asked him to
explain why IP is a clear industry laggard when it comes to embracing high
standards of forest management, when it such a leader in its industry on issues
unrelated to the environment.
Faraci’s answers were less than impressive, reminding me of the
teachers in the old Charlie Brown cartoons – whaa whaa whaa whaa whaa….
Come on Mr. Faraci!
IP’s customers are getting it; your competitors are getting it. SFI certification is simply inadequate to
ensure the long-term viability of the world’s forests.
An IP shareholder unknown to Dogwood Alliance or Domini reminded
Mr. Faraci that “Change is painful but the failure to change is the kiss of
death.” I was reminded of Darwin’s basic theory of
evolution – species adaptability to change is critical to long-term
survival. John Faraci is a
survivor. IP will adapt when push comes
to shove. Dogwood Alliance, through its work with IP customers
in the office supply and packaging sectors and through moving IP competitors
along, is creating the change that will help the world’s largest paper producer
evolve.
We’re trying to help you, Mr. Faraci, because we know you
can do better….much better. Oh, and by
the way, the health of the Earth – our home -- depends on it.
For the Forests,
Danna
***
Danna Smith, Policy Director
Dogwood Alliance
Trackback(0)
 |
TrackBack URI for this entry
Show/Hide comments
Show/Hide comment form
