2007-2008 sustainability report


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2007-2008 sustainability report

  1. 1. 2 0 0 7 - 2 0 0 8 s u s ta i n a b i l i t y r e p o rt 1
  2. 2. chairman’s letter 1 overview 2 reducing the carbon footprint 4 recycling 8 editorial content 10 forestry and paper 12 the future 17 about this report Why sustainability? It’s a matter of prosperity. It’s a matter of survival. It’s the responsibility of us all—governments, companies, households, individuals. It means conducting ourselves in such a way that future generations will enjoy an economy and an environment at least as rich as what we enjoy today. Time Inc., a Time Warner company, is one of the largest content companies in the world. Beginning in 1923 with TIME magazine, Time Inc. has built a portfolio of more than 125 magazines, including some of the world’s most popular, powerful and trusted brands. We are the largest magazine publisher in the U.S. and U.K., and the third-largest publisher in Mexico. Each month, one out of every two American adults reads a Time Inc. magazine, and one out of every seven who are online visits a company website. At Time, we believe we have a dual mission. We should make our operations financially and environmentally sustainable. And our magazines and websites should give readers the information they need to practice and promote sustainability in their own lives. In the following pages, you’ll see examples of what we’re doing internally and also see illustrations of how we are spreading the message of sustainability in print and online. This is our company’s second sustainability report, and it has a special new focus: the challenge of climate change. Each section will cover how our company’s environmental efforts, from encouraging responsible forestry to promoting recycling, help fight global warming. We begin with a few words from our chief executive.
  3. 3. from chairman and ceo ann s. moore 2007 was the year when the environment rose to the top of the national and international agendas. It wasn’t just that Al Gore won an Academy Award and the Nobel Peace Prize. It was the warning from hundreds of the world’s leading scientists, delivered in a report from the Nobel-winning Intergovernmental Panel on Climate Change, that evidence of potentially dangerous global warming is “unequivocal.” It was the realization that rising sea levels and stronger storms could make the tragedy of Hurricane Katrina merely a preview of a threatening future. It was the way Presidential candidates in both major parties were finally talking about fighting global warming. It was the growing understanding that climate change is one of the most complex issues of our time. What does all this have to do with Time Inc.? Like every other big enterprise, our company uses large amounts of resources and produces tons of the greenhouse gases that help fuel global warming. And like every individual and every other business, we have an obligation to do all we can to reduce our effect on the environment and our contribution to climate change. Accepting this responsibility is nothing new for our company. TIME magazine began its Environment section in 1969 and produced its first global warming cover story in 1988. For decades the company has worked to downsize its footprint on the planet. In the following pages, you’ll read about our most recent initiatives, led by David Refkin, our Director of Sustainable Development. We make sure that the forests supplying the pulp for our paper are replanted and replenished. We promote the recycling of our magazines after readers are finished with them. We’ve launched a major new program to curb greenhouse-gas emissions all along our supply chains. Those are the essential steps we’re taking in our path to sustainability. Is sustainability incompatible with maximizing earnings for shareholders? Certainly not in the long run. To keep generating profits, we must help protect the environment that supplies our resources and help nurture our employees and the communities in which we operate. A lasting enterprise must achieve a delicate balance between economic growth, social responsibility and environmental sustainability. It’s like a three-legged stool. Rip off even one leg and the stool collapses. The specter of climate change will make achieving sustainability tougher than ever before. It is a threat that won’t go away if ignored. Only if the world’s governments, businesses and households act together can we meet this challenge. As this report will show, Time Inc. is working hard to do its part. 1
  4. 4. overview: the times ar e changi ng The business world is facing a new reality. Global population pressures and economic development are straining the supplies of natural resources. The long-term trend in commodity prices is sharply higher. Communities, especially in the developing world, are increasingly hard-pressed to handle their waste and provide adequate supplies of clean drinking water. Most important of all, the rising production of carbon dioxide, methane and other greenhouse gases is threatening the planet with major climate change. While the U.S. has lagged behind the rest of the world in taking steps against global warming, Congress is now considering laws to limit greenhouse-gas emissions, and many states have already set targets for reductions. By early 2008 the talk of the political campaign suggested that national action against climate change was coming, no matter which party won the election. Sooner or later government policies will generate higher costs for burning fossil fuels and releasing carbon. Meanwhile, soaring market prices for oil and gas have already driven up the cost of pollution. Any company not prepared to become much more efficient and environmentally sustainable will not be competitive in the new global economy. Fortunately, Time Inc. is ahead of the curve. We put protecting the planet on our agenda in the early days of the environmental movement. This report highlights the following major new developments in our on-going quest to achieve sustainability. 2
  5. 5. hi ghli ghts 1 CLIMATE CHANGE: REDUCING OUR CARBON FOOTPRINT The company was the first publisher to measure the greenhouse-gas emissions of its entire supply and disposal chain, from logging operations to landfills. Armed with that information, we have asked our paper suppliers to reduce their carbon emissions at least 20% by the year 2012. See pages 4-7. 2 RECYCLING: THE BIG APPLE CAMPAIGN The ReMix program to promote magazine recycling, in Every year, New York City throws out over 400,000 tons of recyclable paper. which Time Inc. is a major partner and sponsor, launched That’s enough to fill the Empire State Building. a major new initiative in New York City in January 2008. This is Recycle magazines, catalogs and other paper. Help fight global by far the biggest project in a program already established in four climate change. other cities since 2004. Magazine recycling reduces the strain on It’s your city. It’s your earth. For more information call 311 or visit nyc.gov. resources and combats climate change by lowering the amount of methane released by decaying paper in landfills. See pages 8-9. 3 THE MAGAZINES: COVERAGE FROM EVERY ANGLE Time’s publications and websites have continued to play a leadership role in alerting the public and policymakers to the dangers of climate change and other environmental problems. They have suggested actions readers can take in their own homes and communities. See pages 10-11. 4 FORESTRY AND PAPER: PROGRESS ON ALL FRONTS The percentage of our paper that comes from forests certified as being sustainably managed, according to the rigorous standards set by our company, has risen in the past five years from 25% to 69%. As a member of the Paper Working Group, Time has helped develop an online tool that makes it easier for buyers to find paper that is produced in an environment- friendly way. See pages 12-16. Opposite: A coal-fired power plant at Ratcliffe- on-Soar, England, near the River Trent. 3
  6. 6. c limate change: redu ci ng o ur carbon footprint 1 The trail of a magazine from forest to reader to landfill—or, preferably, a recycling bin—is a long and winding road. Greenhouse gases are released every step of the way: when trees are harvested and transported to pulp and paper mills, when the wood is converted into pulp and then paper, when the paper is moved to the printers, when words and pictures are printed onto the paper and pages are bound together, when the magazines are transported to readers, and finally when the magazines are discarded or recycled. But where is the most energy consumed? If a publisher wants to slash its carbon emissions, which parts of the trail should the company focus on first? To find out, Time Inc. joined with Home Depot and two forest- products companies, Canfor and Stora Enso North America, to sponsor a groundbreaking study of the amount of greenhouse gases (carbon dioxide, methane and nitrous oxide) released by every sector of the lumber, paper and magazine industries. The research was overseen by Stith T. Gower, Professor of Forest Ecosystem Ecology at the University of Wisconsin, Madison with help from the Washington, D.C.-based non-profit H. John Heinz III Center for Science, Economics and the Environment. In 2006 the Heinz Center published the results of the study in a book entitled Following the Paper Trail: The Impact of Magazine and Dimensional Lumber Production on Greenhouse-Gas Emissions— A Case Study. The diagram on the facing page shows the results of research on the life cycles of TIME and IN STYLE magazines. For every ton of TIME magazines produced, compounds equivalent to 1.17 tons of carbon dioxide are released into the atmosphere. One fact jumps out: more than two-thirds of carbon is released from the operation of pulp and paper mills, from the generation of energy for the mills and, to a lesser extent, during the transport of wood fiber to the mills. To get the biggest possible reductions in emissions, Time had to look to its main suppliers: the paper companies. After considering what would be both ambitious and practical, Time became the first U.S. publisher to set targets for producing less greenhouse gas throughout its supply chains. Time asked the paper companies to reduce carbon emissions 20% from a 2004 base by the year 2012. Some suppliers pointed out that they had already achieved some reductions before 2004 and felt they deserved credit for their leadership role. To accommodate these suppliers, Time set some alternative but equally challenging goals. Keeping the same target year of 2012, the paper companies have the options of cutting carbon output by 25% from a 2000 base or 30% from a 1996 base. This will be just the beginning of a long-term process of curbing the use of fossil fuels. Much of the carbon produced by paper-making is actually released by the power companies that supply energy to the paper mills. For that reason Time and its paper suppliers will have an ongoing dialogue with power companies, urging them to continue switching from burning coal and other fossil fuels to using renewable sources, such as wind and biofuel. 4
  7. 7. p e r c e n tag e o f g r e e n h o u s e g a s r e l e a s e d time in style f o r e s t m a n ag e m e n t a n d h a rv e s t i n g 2% 2% p u l p a n d pa p e r m i l l e m i s s i o n s 61% 77% printing 4% 2% t r a n s p o rtat i o n 17% 9% f i n a l fat e o f m ag a z i n e s 16% 10% The measurements for TIME magazine represent data from one of several supply chains for this magazine. Transportation figures include all stages: wood from forest to mill, paper to the printers, and distribution of magazines. TIME magazine’s In a TIME.com coverage avoids page, Jeffrey Sachs, t ime inc.’s carbon reduction targets for 2012 doom and gloom. Director of Paper suppliers have 3 options for cutting emissions along their supply chains It’s 2007 “Global Columbia’s Earth Warming Survival Institute, declared Base year 2004 20 % Guide” contained that climate change 51 climate tips, “will only wreck the Base year 2000 25% from getting a planet if we remain home energy audit paralyzed with Base year 1996 30% to eating less unreasoning fear beef (cows emit and inaction.” lots of methane). 5
  8. 8. Since Time’s operations and supply chains stretch from Finland to British Columbia (see the map), wood and power sources vary widely. Actions taken by paper companies in one part of the world may not be so easy for others elsewhere, so more research is planned to find the best ways to maximize carbon reductions around the globe. For example, Time’s European arm, IPC Media, is working on a study of the carbon footprint of its magazines. After paper-making, the biggest portion of carbon—10% to 16%—is released by what researchers called the “final fate” of magazines. If discarded magazines are incinerated, the carbon in their paper is released all at once. Even if magazines are dumped into a landfill, they gradually decompose, releasing such compounds as methane, which is a particularly powerful greenhouse gas. But if magazines are recycled, their carbon remains locked inside the recycled fiber. Time’s efforts to promote magazine recycling—and thus slow the greenhouse effect—are described in the next section of this report. Another part of the trail with considerable room for improvement is the transport of magazines from printers to wholesalers. In the future Time will be talking with its distributors about reducing carbon emissions, possibly by using fewer or more fuel- efficient trucks. Time is part of Climate Northeast, a group of companies from many industries brought together by World Resources Institute, a Washington, D.C.-based environmental research organization. The group members meet regularly to discuss and share ways to reduce their carbon footprint. Why, you might ask, don’t people just cut out the paper and the printing and the trucks by reading all their magazines online? But that’s not a complete solution either. When you think about it, both delivery systems have impacts on the environment. Dot- com versions do not require the harvesting of trees, but the manufacture and operation of computers require substantial amounts of energy. In any case, many customers aren’t ready to give up paper. Time’s goal is to keep providing cutting-edge products for readers who want to go digital, while working to make traditional paper magazines environmentally sustainable. The company will continue its efforts to ensure that forests are sustainably managed, and it will be up to readers to recycle Ou TSIDE P OWER P ROvIDERS* magazines and turn off computers when they are not in use. 1. Minnesota Power and Light, Boswell Energy Center, While the writing and design of a magazine are responsible Cohasset, Minnesota for a very small percentage of the carbon released during the 2. n Power, Worcester, u.K.** magazine’s whole life cycle—so small that it was not worth 3. LEW Power, Essen, Germany** calculating in the Following the Paper Trail study—this part of 4. Wisconsin Public Service, Milwaukee, Wisconsin** the trail is not being neglected either. Our parent company, Time 5. Consolidated Water and Power Company, Warner, has a program to reduce energy usage in our buildings, Wisconsin Rapids, Wisconsin from magazine editorial offices to movie studios. 6. Duluth Steam District #2, Duluth, Minnesota 7. XCEL Energy, Minneapolis, Minnesota** * Many paper and pulp mills generate their own power. ** This is the location of the company’s headquarters; the power comes from a variety of locations. 6
  9. 9. 2006 paper supplier energy sources time inc. ’ s 2006 supply chains The company is directly responsible for relatively little of the greenhouse coal gas emitted from the production of our magazines. To reduce those emissions substantially, Time must enlist the cooperation of its biomass 23% total independent pulp and paper suppliers, whose locations span half the globe. They in turn will need to encourage their power suppliers to switch 45% oil 6% fossil fuels as rapidly as is practical and economical from the use of fossil fuels to natural gas renewable forms of energy, such as wind and biofuel. The pie chart at 17% right shows the current mix of power sources for Time’s paper suppliers. The 23% share of coal, which is the least efficient fossil fuel but also cheap and plentiful, is an obvious target for improvement in the future. other renewables other fossil fuels 1% hydro 2% 3% 3% nuclear PA P E R S uP P L I E RS P u LP Su P P LIERS myllykoski upm 1. Rumford Mill, Rumford, 10. Botnia-Rauma, Botnia 1. Myllykoski Mill, 10. Augsburg Mill, Augsburg, Maine, uSA Rauma, Rauma, Finland Anjalankoski, Finland Germany 2. Wickliffe Mill, Wickliffe, 11. verso Paper, Androscoggin new page 11. Blandin Mill, Grand Rapids, Kentucky, uSA Mill, Jay, Maine uSA 2. Rumford Mill, Rumford, Minnesota, uSA 3. Canfor, Northwoods, Prince 12. SFK Pulp Fund, St. Felicien, Maine, uSA 12. Caledonian Mill, Irvine, George, British Columbia, Quebec, Canada Ayrshire, united Kingdom Canada 13. verso Paper, Quinnesec Mill, 3. Wickliffe Mill, Wickliffe, Kentucky, uSA 13. Kaukus Mill, Lappeenranta, 4. Canfor, Intercontinental, Quinnesec, Michigan, uSA Finland Prince George, British 14. West Fraser, Hinton, Hinton, stora enso Columbia, Canada 14. Mirmamichi Mill, Miramichi, Alberta, Canada 4. Biron Mill, Wisconsin Rapids, 5. Stora Enso, Sunila Oy, Sunila, Wisconsin, uSA New Brunswick, Canada Finland 5. Corbehem Mill, Corbehem, 15. Rauma Mill, Rauma, Finland 6. Weyerhaeuser, Prince Albert, France 16. Schongau Mill, Schongau, Prince Albert, Saskatchewan 6. Duluth Mill, Duluth, Germany 7. Weyerhaeuser, Grand Prairie, Minnesota, uSA verso paper Grand Prairie, Alberta 7. Kotka Mill, Kotka, Finland 17. Androscoggin Mill, Jay, 8. Bowater, Thunder Bay 8. Niagara Mill, Niagara, Maine, uSA Mill, Thunder Bay, Ontario, Wisconsin, uSA 18. Bucksport Mill, Bucksport, Canada 9. Whiting Mill, Stevens Point, Maine, uSA 9. uPM, Kaukus, Lappeenranta, Wisconsin, uSA 19. Quinnesec Mill, Quinnesec, Finland Michigan, uSA 20. Sartell Mill, Sartell, Minnesota, uSA 7
  10. 10. rec yc ling: the big apple cam pai gn 2 On the night of January 30, 2008, the top of the Empire State Building was bathed in a bright green light. And it wasn’t even Saint Patrick’s Day. The occasion being honored was New York City Mayor Michael Bloomberg’s press conference in the lobby of the famed skyscraper that morning announcing that ReMix, a magazine recycling program in which Time Inc. is a major sponsor, was coming to the Big Apple. Bloomberg pointed out that city residents have two options after finishing a magazine: throwing it in the regular trash or recycling it. “We want more New Yorkers to make the right choice and recycle,” said Bloomberg. The choice should be simple. When New Yorkers put their garbage cans on street curbs for pickup, they are supposed to put all their waste paper, from the New York Times to empty Cheerios boxes, into a separate can for recycling. But many people don’t do it at all, and others don’t recycle everything they could. Some, for example, have recycled newspapers for years but don’t realize that advances in the recycling business have made it just as easy to reuse the glossy paper in magazines and catalogs as it is to recycle old copies of the Daily News. New York’s sanitation department estimates that the city’s residences put out for recycling only 34% of the paper, other than newspapers and corrugated cardboard, that it would be possible to recycle. To help boost that number, the ReMix program (short for Recycling Magazines is Excellent) aimed to bombard New Yorkers with messages to recycle. ReMix ads began appearing on buses, bus shelters, subways, taxis and billboards, in movie theaters and on cable TV. The ads could also be found in the pages of Time publications and other magazines. The plan called for more than $5 million worth of advertising and promotion. If people heed the message, the benefits will go well beyond saving space in landfills. Since the demand for recovered paper exceeds supply, selling waste paper to recyclers generates revenue for the city. Even more important, recycling can sharply reduce the amount of methane released in landfills when paper decays. As a greenhouse gas, methane is 23 times more potent than carbon dioxide. So recycling is a vital weapon in the fight against climate change. Launched in 2004 by Time, Verso Paper (back when it was part of International Paper) and the non-profit National Recycling Coalition (of which Time’s David Refkin is now President), ReMix has already run $6 million worth of advertising in pilot projects to promote magazine recycling in Boston, Milwaukee, Portland (Oregon) and Prince George’s County in Maryland. For the New York City campaign, the original partners have been joined by Hearst Corp. (another large media company), Pratt Industries (a paper and packaging company with major recycling operations), Time Warner Cable and the non-profit Council on the Environment of New York City. ReMix has had a measurable positive impact. Boston, for example, saw an 18% increase in magazine recycling, Prince George’s County went up 19% and even Portland, where citizens were already excellent recyclers, achieved a 3% jump. New York will be the big test. When the results are in, ReMix’s partners will have a better idea if they can achieve their goal of expanding the campaign into a self-sustaining national program. 8
  11. 11. remix improves recovery Increase in the percentage of paper collected that consists of magazines and catalogs boston Rise since March 2004 18% prince george ’ s county, maryland Rise since April 2004 19% portland Rise since April 2006 3% what about recycled content? In the early 1990s Time Inc. was one of the leading publishers in the drive to put recycled fiber into magazines. At one point both TIME magazine and ENTERTAINMENT WEEKLY were printed on paper that contained at least 10% post-consumer content. But then the market suffered a seismic shift. The demand for recycled paper surged, and the supply did not keep up. Prices soared, and it was no longer close to economical for Time to use recycled paper, in most cases. One problem is that most paper mills are close to forests, not to the metropolitan areas where lots of used paper can be recovered. Moreover, of all paper grades, the coated groundwood used by most of Time’s titles is the one for which using recovered fiber is the least economical, as confirmed by the Environmental Defense Fund Paper Task Force. virtually the entire coated paper industry infrastructure is built for virgin fiber. Another barrier to using recycled content is that recovery rates of old magazines are not what they should be, especially in the u.S. The global demand for recovered paper is enormous. Thus the question arose: what can Time do to increase the supply? The answer was to help launch ReMix, an ambitious program to boost the recovery rate for magazines and catalogs. Those old magazines should be used in whatever way the market dictates. Initially, much of the recovered magazine paper is being recycled into newsprint and tissue paper. Many facilities have already been established to make recycled newsprint, and thus at the present time the economics of printing newspapers on recycled paper are much more favorable than the economics of printing glossy magazines on recycled paper. What old magazine paper goes into is beside the point. The fact that it is recovered and goes into some kind of recycled product will take pressure off forests, especially in the tropics, and help meet the world’s demand for more fiber. That is one of the key the points of ReMix. There are exceptions to the general situation. IPC Media’s WHAT’S ON Tv and Tv EASY have 100% recycled content because they can economically buy paper from a German mill (uPM’s Schongau mill) that uses recycled fiber. And An Empire State Want to be smarter no wonder: Germany has a 75% paper recovery rate. As recovery rates grow Building made of in the way you treat in the u.S., and facilities potentially expand to recycle more paper from the magazines? That’s Mother Earth? “urban forest,” Time will gladly look for more opportunities to use recycled the arresting image REAL SIMPLE content in cases in which the long-term economics are sustainable. used to promote offered “Recycling recycling in ReMix 101” as part of its ads appearing in comprehensive Time’s publications, “Green Living 101.” in other magazines, That’s a course as well as on we all need to get a subways, buses, taxis good grade in. and other places. 9
  12. 12. t he magazines: cover age f r o m ev ery angle 3 Anyone who reads Time Inc. magazines or visits our websites knows how much emphasis our editors put on climate change and other environmental issues. Each publication has its own perspective, and so we cover what ails the planet— and what can be done about it—from every angle. It’s amazing how often a sustainability element can be found in stories big and small, from a TIME magazine feature about where Presidential candidates stand on the issues to a picture in PEOPLE showing how the singer Usher is helping the recovery effort in hurricane-ravaged New Orleans. NEWS YOU CAN USE FORTUNE produced a “Green Issue” that profiled Patagonia and 10 other “green giant” companies that are working to solve environmental problems. In April, 2008, FORTUNE brought together business executives, government leaders and environ- mentalists for what the magazine called a Brainstorm: GREEN conference in Pasadena, California. COUNTRY LIFE’s readers were surprised to see a power station on the cover one week instead of the usual country scenes; it was a special issue on climate change. TIME FOR KIDS did a cover story on the effects of global warming on the Arctic. ESSENCE has covered developments in New Orleans in the aftermath of Katrina. SPORTS ILLUSTRATED did a cover story on the impact of global warming on sports, pointing out, for example, that seven World Cup ski events had to cancel all races because the weather was too warm and the venues had too little snow. IN STYLE showed that it’s in style to be an environmental activist; the fashion magazine covered how such celebrities as Leonardo DeCaprio and Cameron Diaz have headlined the Live Earth Concerts and other events to raise environmental awareness. And while we never used to think of Al Gore as an entertainment figure, ENTERTAINMENT WEEKLY put him on its cover just before the release of his global warming movie, An Inconvenient Truth. A print and online Climate change General Electric’s feature in THIS OLD could affect sports Ecomagination HOuSE told how events by making advertising, right, an Austin, Texas, storms stronger. faced TIME magazine’s family transformed Former Marlins’ “51 Things We Can Do.” a 1940 brick house pitcher Dontrelle GE had no influence badly in need of Willis, who made on editorial content renovation into a the cover of SPORTS but wanted an comfortable, energy- ILLuSTRATED, would appropriate setting efficient showplace. say Miami was stormy to promote energy- enough already. saving products. 10
  13. 13. Time’s magazines aren’t just raising alarms. They are giving readers practical suggestions for how they can make their own lifestyles more sustainable. TIME magazine ran a 44-page cover package entitled “The Global Warming Survival Guide: 51 Things You Can Do to Make a Difference.” REAL SIMPLE’s “Green Living 101” covered everything from recycling to “earth-friendly cleaning products.” THIS OLD HOUSE did a feature on green remodeling, and COASTAL LIVING did one on sustainable seafood. Many of IPC Media’s titles, including WOMAN, WOMAN’S OWN and WOMAN & HOME, carry regular advice on green living. The UK version of MARIE CLAIRE went so far as to include a reusable cotton shopping bag with an issue, and HORSE told equine lovers how to give their steeds a “carbon neutral hoof-print.” GREEN ADVERTISING More and more businesses see sustainability as an opportunity rather than a burden. As they develop greener technology, they are eager to market it and create new profit streams. Now more than ever, green is the color of money, and advertising is beginning to reflect that fact. BP created a “Beyond Petroleum” campaign to highlight its investments in alternative energy, and all the major auto companies are touting low-emission cars. General Electric coined the term “Ecomagination” to promote its energy-efficient technology, which is expected to bring in $20 billion in annual revenues by 2010. You know environmentalism has hit the big time when the world’s largest retailer, Wal-Mart, embraces sustainability. Its major initiative ranges from pushing energy-saving compact fluorescent light bulbs to putting a green roof (composed of living plants!) on a Chicago store. Time produces the magazine ALL YOU for sale exclusively in Wal-Mart stores, and the two companies are discussing how they can work together on environmental initiatives. Companies that believe in sustainability like to place advertising with publishers that have their own dedication to sustainability. It made perfect sense for General Electric to put its “Ecomagination” ads in TIME magazine’s “Global Warming Survival Guide.” As Time’s Director of Sustainable Development, David Refkin is spending an increasing portion of his time accompanying our magazines’ publishers to meetings with advertisers, many of whom want to hear about Time’s editorial and corporate commitment to sustainability. 11
  14. 14. f ores try and paper: pro gr ess o n all f r o nts 4 Think about all the things that forests do. They provide a home for much of the world’s wildlife. They retain moisture, moderate the weather and control floods. They supply wood for our lumber and paper needs. They give human beings wondrous settings for recreation and personal renewal. And forests perform another essential function that we are only now beginning to appreciate. They are vast reservoirs of carbon. As they grow, trees soak up carbon dioxide from the atmosphere and help regulate the climate. Every forest felled, and not renewed, is a lost fortification against climate change. CERTIFIED SAFE FOR NATURE Time Inc. has long encouraged sustainable forestry—the practice of harvesting trees in a well-managed way that does not deplete the forest, hurt wildlife or damage the landscape. This is vital for both the environment and the economy. From a financial standpoint, our company has always recognized that if forests aren’t protected, eventually paper supplies will tighten, and the price of the raw material to make our magazines will soar. Now the threat of climate change gives added urgency to the mission of guarding the forests. For more than a decade, Time has supported the emergence of several expert groups that have established standards, mechanisms and auditing procedures for certifying forests that are being logged sustainably. Those groups include the Forest Stewardship Council (www.fsc.org), the Canadian Standards Association (certifiedwood.csa.ca) and the Sustainable Forestry Initiative (www.aboutsfi.org). These organizations typically certify publicly owned forest land or land owned by major companies and other large landholders. But much of the paper Time uses comes from wood taken from the property of small landowners who can’t afford the certification process. For this reason, Time has also supported the groundbreaking work of Sandy Brawders, who created Maine’s Master Logger Certification Program, which has served as a template for similar programs in many other states. These programs teach loggers how to harvest wood sustainably and certify the logging companies that cut trees owned by small landholders. Time has asked its paper suppliers to increase steadily the proportion of the wood they get from forests or loggers that are certified by one or more of the sustainable-forestry organizations. The results have been dramatic. In 2002, when certification programs were still in their early stages, only 25% of the paper Time used was made from wood from certified sources. By 2006, that figure had risen to 69%. A special nod of appreciation should go Wisconsin State Forester Paul DeLong, who has used tax incentives and other innovative means to promote certification in his state. Wisconsin paper mills typically get 85% to 90% of their wood from certified sources. Time has also found a good partner in the Rainforest Alliance, which works to spread the practice of sustainable forestry. For example, the Alliance’s SmartLogging program is making an effort to certify loggers operating in Kentucky and Tennessee. Those states provide wood to a New Page paper mill in Wickliffe, Kentucky, that is a supplier to Time. 12
  15. 15. TIME magazine’s In a “Green Initiatives” As a founding member of the Paper 2006 special report web feature, Working Group, Time helped develop the on global warming TIME.com offered Environmental Paper Assessment Tool explained how the many strategies (EPAT), an online matchmaking service for burning of forests for fighting the earth-conscious buyers and sellers. releases huge greenhouse effect, amounts of carbon including preventing dioxide, potentially deforestation and speeding up the encouraging utilities process of climate to switch from change. fossil fuel to renewable energy. CHAIN OF CUSTODY The wood that paper mills buy does not often come directly from loggers. Usually it passes through one or more middlemen, and it is sometimes not clear what the original source was or whether that source was certified as sustainable. As a result, the independent verification of the source of wood is an important component of certification. Built into the programs of the major certification groups are procedures to ensure that the chain of custody is transparent and that certified wood is tracked every step of the way from forest to mill. In addition, some paper mills have an independent chain-of-custody system that verifies the origin of wood and whether or not it comes from certified sources. The challenge is to bring these procedures to small landowners who have not traditionally been part of certification programs. Time has set a goal that by 2009, 80% of the fiber used to make Time’s paper will be independently certified for the fiber’s entire chain of custody, according to the standards set forth in Time’s Certified Sustainable Forestry Program. DEEP IN THE HEART OF RUSSIA A major frontier for certification is Russia, which holds some of the world’s largest forests. Since some of Time’s magazines contain paper manufactured in Finland, partly from Russian wood, Time took part in an important venture to improve the management of Russian forestry. Called the Tikhvin-Chalna Project, it has so far focused on logging operations around the towns of Tikhvin and Chalna in the forest land north and east of St. Petersburg. In addition to Time, the main partners were Axel Springer, the German publisher; Random House Group UK, the British unit of the international publisher; Stora Enso, a Swedish/Finnish forest-products company; and Tetra Pak, a packaging company that is part of an industrial group now headquartered in Switzerland. In 2006 and 2007, the Project, with the help of the advocacy group Transparency International, conducted workshops in Russia aimed at helping local logging companies install programs to protect their workers’ health and safety, combat illegal logging and get their operations certified as sustainable. As part of the effort, Stora Enso, one of Time’s major paper supplies, worked with several of its Russian subsidiaries to get 400,000 hectares (1 million acres) of forest land certified by the Forest Stewardship Council. 13
  16. 16. BIRD WATCHING As demand for wood rises, logging companies are beginning to edge into pristine forests in Canada and Russia. That raises important questions. Are the current standards of sustainable forestry sufficient to protect these delicate ecosystems? Even if the trees are harvested selectively and carefully replanted so that the forest is preserved, will biodiversity be affected? In other words, will the local wildlife be hurt in any way? To begin gathering answers, Time, in partnership with the UPM paper company, has commissioned a four-year study of how sustainable logging is affecting bird life on 1 million hectares (2.5 million acres) of Acadian hemiboreal forest land in the Canadian province of New Brunswick. Researchers will survey populations of several species of songbirds and woodpeckers and monitor their nests to see if they are reproducing normally. The project is being conducted by Professor Marc-André Villard, the Canada Research Chair in Landscape Conservation at the University of Moncton, in cooperation with the New Brunswick Department of Natural Resources and two environmental groups, Bird Studies Canada and the Nature Conservancy of Canada. This time inc. > 500- 100- < work could become a model for biodiversity studies in other csf standards 10,000 10,000 500 100 forests. Just for undertaking this cutting-edge project, Time and accepted acres acres acres acres the other participants in the study have been awarded the SFI Approved Certification * * * * Leadership in Conservation Research Award from the Sustainable to Land Forestry Initiative. Approved Group TAKING CARBON INTO ACCOUNT Even if logging is managed in a sustainable way that preserves Certification * * * the forest and protects wildlife, there’s still the issue of carbon Approved National balance. Does a particular logging operation help or hurt the cause of slowing climate change? It’s a complicated calculation. Is the forest growing new wood as fast as wood is removed? Are Standard in Europe to Land or Group * * * * Approved Master * * the loggers unnecessarily disturbing the soil and releasing some Logger Certification of the carbon stored there? What happens to the wood removed with Management Plan from the forest? Is it burned or used to make paper and furniture, Approved Master * where the carbon remains stored? How much fossil fuel is used by Logger Program with the loggers’ trucks and harvesting equipment? Are forests being Harvest Plan cleared for agricultural or commercial use? Approved Controlled Time thinks forest managers need to be addressing those questions. In 2007 the company signed on to the Clinton Stumpage Program * * Global Initiative in a partnership with the Rainforest Alliance. Among its commitments to the Initiative, Time pledged to keep time inc. ’ s certified sustainable forestry increasing its use of certified paper and to move toward requiring program forest managers, when developing management plans as part of The company has developed rigorous standards. certification, to consider the impact of forest activities on the For u.S. and Canadian forest tracts of 10,000 carbon cycle as well as how forest practices will be affected by acres or more, specific forests must be certified, not just as part of a group of tracts. a warmer and changing climate. Time is working with Sandy Small landowners can have their wood certified Brawders and her Master Logger program to develop standards through a Master Logger program after meeting for taking carbon into account. Time’s specific requirements (often after lengthy discussions). Some of our requirements are tougher than those in major certification programs, such as the controlled wood standard of the Forest Stewardship Council and Objective 8 of the Sustainable Forestry Initiative. In all cases, the wood must be certified at every step in the chain of custody, and back to the land where the wood came from. 14
  17. 17. WASTE WOOD AS RENEWABLE FUEL Paper and power companies are under pressure from both customers and governments to lower their carbon emissions. Minnesota, for example, has set a target of getting 25% of its energy from renewable sources by 2025. Those sources could include wind, solar, hydropower and biofuel from plants. One of the biofuels increasingly considered to be an option is wood chips. In 2006, UPM, which has a major paper mill in Minnesota, approached Time to discuss the best ways to reduce its carbon emissions. The task is difficult because Minnesota’s power companies rely heavily on coal, which releases large amounts of carbon dioxide. UPM pointed out that a fair amount of woody debris was left behind in the forest by loggers. This debris would gradually decay and release its carbon. Why not use this excess wood from the forest floor and turn it into renewable energy for power generation? To explore that possibility, Time organized two meetings that included representatives from UPM, Minnesota Power, the U.S. Forest Service, the State of Minnesota and St. Louis County, where percentage of time inc. the power company is based. The consensus was that the use of paper from certified woody debris for fuel, if done sustainably, was a good idea. In April, sustainable fiber 2007, Minnesota Power announced a Biomass Energy Initiative to used by the major mills that provide over 80% of the company’s paper supply generate power by “material such as wood waste and forest residue.” The Initiative includes a new 50 megawatt biomass-fueled generator and the use of some biomass in existing power plants. To reach the target established by the state, more facilities of this type are likely to be built in future decades. 2009 80% (goal with a certified chain of custody) Of course, burning wood should be done in a careful, measured way 2006 with appropriate standards to protect forests and their ecosystems. 69% Just because wood is “renewable” doesn’t guarantee that it will be renewed. If wood is removed from the forest or the land is 2004 58% converted to other uses faster than the forest can regenerate that wood, then the process is not sustainable. Certainly, clearing wide swaths of forest and burning the wood could not be a solution to climate change. Quite the contrary. One of the best ways to guard against global warming is to protect the planet’s vast reservoirs of carbon, especially the tropical rain forests. 2002 25% PURCHASING: THE PAPER WORkING GROUP Imagine that you are head of the purchasing department of a company that buys large amounts of paper. Imagine also that you and your company believe in sustainability and you want paper manufactured in a way that does the least possible damage to the environment. How do you find the paper that’s right for you? As with so many other things these days, you can go to the Internet—to www.epat.org. Now imagine you are head of marketing for an environmentally conscious paper company hoping to attract customers who want sustainable paper. In that case, you also would travel on the Internet to www.epat.org. This is the site of the Environmental Paper Assessment Tool, a matchmaking service that helps both companies and the environment. Buying sustainable paper wasn’t always so organized. Many years ago, Time became so concerned about how its paper was being manufactured that it developed a “report card.” It was a detailed questionnaire, covering such issues as forestry, energy use and pollution, and any company who wanted to sell paper to Time had to complete this report card. It has helped Time decide which suppliers would be best to buy from. 15
  18. 18. But why should every company who wants sustainable paper have to reinvent this wheel? To help make such paper more readily available was the reason Time became a founding member of the Paper Working Group (PWG), an alliance of major corporate paper purchasers brought together by Metafore, an Oregon-based non-profit organization. The other founding PWG members are Bank of America, Hewlett-Packard, Fedex Kinko’s, McDonald’s, Nike, Staples, Starbucks and Toyota, and in 2006 they were joined by early adopters Wal-Mart, JCPenney, Office Depot, L.L. Bean, Hearst, Quad/ Graphics, Quebecor World and RR Donnelley. The group wanted to use its combined purchasing power to help encourage the paper industry to improve its environmental sustainability. At the same time, the industry would benefit from the development of standards and procedures that would help papermakers satisfy the environmental concerns of a broad array of purchasers. PWG’s main achievement so far is the creation of Environmental Paper Assessment Tool (EPAT). The epat.org website was launched in October 2006, and a new version, EPAT 2.0, went online in March 2008. And here’s the beauty of this versatile tool: how the pulp used for time it doesn’t assume that one size fits all. Paper buyers may have inc.’s paper is bleached different ideas about what’s most important. One might be more Kraft pulp, produced by chemical means concerned about carbon emissions and climate change, while 2 0 01 another could be more exercised about sustainable forestry 415,000 tons or mercury emissions. Is it a bigger deal that the paper have recycled content or that less water was used in its production? ecf 50% With EPAT, the buyer decides. When a buyer logs on to EPAT, he or she gets an Excel spreadsheet eecf 48% of 26 indicators of a paper’s sustainability. They are arranged into six categories: (1) efficient use and conservation of natural tcf 2% resources (recycled content? energy use?) (2) minimization of waste (is the paper recyclable and compostable?) (3) conservation 2006 of natural systems (is the paper from certified forests and 523,000 tons loggers?) (4) clean production (amount of greenhouse gas released? mercury?) (5) community and human well-being (how are relations with the paper mill’s neighbors?) and (6) credible ecf 26% verification and reporting (are the paper company’s sustainability data publicly reported and independently verified?). Each buyer eecf 72% assigns relative weights to the 26 indicators so that the total adds up to 100%. tcf 2% Meanwhile, paper suppliers log on and enter data from their entire supply chain, including outside power sources, and answer Paper Supplier Bleaching Technology questions regarding each of the 26 indicators. By comparing the buyer’s desires with the supplier’s characteristics, EPAT can find Elemental Chlorine-Free (ECF): pulping and bleaching technique that replaces the use of the right fit. From an environmental standpoint, it is a match chlorine with chlorine dioxide (or other chlorine made in Internet heaven. derivatives) resulting in reductions in dioxin releases to non-detectable levels. Enhanced Elemental Chlorine-Free (EECF): the use of oxygen delignification and/or extended cooking processes in addition to standard ECF bleaching. This reduces the amount of bleaching chemicals required. Totally Chlorine-Free (TCF): pulp bleaching technique that uses hydrogen peroxide, ozone, or other non-chlorinated compounds as the bleaching agent. 16
  19. 19. sustainable paper from david refkin, purchasing policy director of Time Inc. is committed to ensuring that our sustainable development paper purchasing policy supports corporate social responsibility and sustainable In our day-to-day work at Time, management of natural resources, while we can never take our eyes off minimizing the environmental impacts of the entire paper supply chain. We work with the future. Sustainability will our suppliers to continually improve the not be easily achieved or easily maintained. environmental profile of the paper we buy, and we give preference to those suppliers that In a world where we can no longer take even the share our commitment to the environment and to sustainable management practices. climate for granted, changing conditions will Time Inc., through its Certified Sustainable mean changing challenges—and opportunities. Forestry (CSF) program, has set targets for The quest for sustainable forestry, for example, raises many questions. our paper suppliers that dramatically increase the amount of certified fiber used in the paper What species of trees should be planted today? Which ones will survive we purchase. We believe that certification best in the warmer climate expected in the future? When should trees programs recognized as credible can foster be harvested to maximize the forest’s carbon storage? How do we sustainable forestry. In addition, we identify minimize soil disturbance during harvests to reduce carbon releases? forests of high conservation value and help develop appropriate safeguards for these As we manage forests for carbon, how do we also protect other forest forests. We also encourage appropriate social values, such as biodiversity? and labor policies and the preservation of Two worrisome forest issues stand out. As the demand for wood, pulp and biodiversity, especially in developing countries. paper rises, logging companies are moving farther into the vast forests We encourage the manufacturing of paper with recycled content whenever the of developing countries such as Indonesia and Brazil. These forests economics are sound over the long term. are vital storehouses of carbon and biodiversity. The harvest must be Our recycling focus has been to promote the sustainable, not reckless. And as the demand for and price of fossil fuels maximum recovery of paper and the most surges, there will be greater demand to harvest wood for fuel. This too cost-effective use for the recovered fiber. must be done in a controlled way that does not destroy forests. Time Inc. promotes improving energy efficiency and reducing greenhouse-gas The overriding challenge is to mitigate and adapt to climate change. emissions. We have set aggressive targets As early as 2009, many believe, the U.S. will move toward a system for our paper supply chains. We actively in which carbon releases are capped and permits to emit carbon encourage suppliers to boost their efficiency, decrease use of fossil fuels and increase use are traded. Another possibility is a carbon tax. Every business will of renewable energy. need to calculate the potential impact. What does your business We are committed to purchasing paper model look like with a $50 (or higher) per ton carbon tax? What are manufactured with advanced pulping and the implications for your supply chains of a carbon cap-and-trade bleaching techniques, specifically totally mechanism? Will your company be a winner or a loser? Will your chlorine-free or enhanced elemental chlorine- environmental sustainability determine the economic sustainability free processes. We do not purchase paper made from pulps bleached with chlorine gas. of your company? Can any chief financial officer or risk manager Time Inc. works to reduce the amount of raw afford to ignore these questions? material used to make our products. One The reality of our world is that the business community will need way is to encourage the development of to justify economically the needed investments. While it will no lighter-weight grades of paper that meet our functional and quality needs. doubt be difficult for some, the potential payoff could be substantial. We expect continuous improvement in Developing new products and practices that reduce a company’s ourselves and our partners. Time Inc. rewards carbon footprint, including the footprint of all its supply chains, leaders and encourages all of our suppliers will keep engineers and marketers employed for years. Practical, to reach the standards set by the leaders. We innovative solutions will be in high demand. will strive not to do business with suppliers that do not meet our requirements, and we We all have a solemn obligation to make sure that future generations intend to stop doing business with any current will have the opportunity to live in a sustainable world that promotes supplier that adopts practices violating economic growth and social advancement. After all, each one of us is this policy. just “renting” the planet for our brief stay here on Earth. 17
  20. 20. time & life building rockefeller center new york, ny 10020-1393 timeinc.com The nation behaves well if it treats the Natural Resources as assets, which it must turn over to the next generation increased and not impaired in value. T HE O DO RE ROOS E V E LT , 1910 Contact our sustainability department at sustainability@timeinc.com Time Inc. is a subsidiary of Time Warner Inc. ©2008 Paper: 80 Text, 80 Cover; Mohawk Options Printing: Pictorial Offset Corporation Writing: Charles Alexander Design: www.faustltd.com