enviornment

1. Sustainable Development….
Threat or Opportunity
Paper
Working
Group
David Refkin PPPC International Pulp Week
Director, Sustainable Development Montreal
Time Inc. May 8, 2007

2. Time Warner -World’s Largest Entertainment Company
$44 Billion in Revenues
• Warner Brothers
• Time Warner Cable
• AOL
• Networks:
HBO/CNN/Turner
• Time Inc.
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3. Time Inc.
World’s Largest Magazine Publisher
• 20% of all magazine advertising revenues
• 130+ titles
• Revenue: $5.5B
• Adjusted operating income: $1.2B
• Largest UK publisher
• Major titles:
Time Fortune
People Real Simple
Sports Illustrated Money
Entertainment Weekly
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4. Time Inc. Paper Purchasing
• Approximately 550,000 tons of paper purchased
annually from 53 mills:
• 26 in United States
• 13 from Finland
• Primary grade coated groundwood
• Ultra -light weights …28#, 30#, 34#, 38#
• Primary wood baskets impacting Time Inc.
• U.S. • Finland
-- Maine • Scotland
-- Wisconsin • Russia
-- Minnesota
• Canada - Eastern &Western
-- Quebec
-- British Columbia
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5. Environment…Sustainability: An Evolution
Old New
• Stewardship • Sustainable Development
• Enviro, Health & • Transparency, Candor
Safety Dept. • A Never-Ending Journey
• Regulation/Costs • Seizing Opportunities
• Managing Threats
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6. Sustainable Development
Balancing the Needs of the Triple Bottom Line:
Economic Growth
Corporate Social Responsibility (CSR)
Environmental Sustainability
Risk Management
Protecting our brands
Promoting Positive Change
Environmental
Social Responsibility - “From Russia …with Transparency”
Partnering with like-minded companies and solution oriented
companies
Revenue Opportunity
Enhance bottom line
Advertisers
Retailers
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7. Discussion Points
• Where We Are
• Strategic Issues
• Future Challenges
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9. Where We Are:
Forestry:
• Approximately 70% of fiber meets CSF plan
• Up from 25% in 2002
• Loggers and non-industrial landowners now part of the solution
• Key state/county lands certified
• Close partnerships with paper/pulp suppliers
• Paul DeLong - Wisconsin State Forester critical partner
• Sandy Brawders - Master Logger developed and expanded
• Canadian pulp and paper suppliers have played a positive role
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10. From Russia … with Transparency
• Goal: Increase acceptability of Russian wood by enhancing transparency regarding CSR and
environmental issues along the entire supply chain
• Partners:
• Axel Springer - largest German newspaper publisher
• Random House (UK) - leading consumer book publisher
• Time Inc.
• Stora Enso - global forest products company based in Nordic countries
• Russkiy Les - Stora Enso owned logging company in Tikhvin region
• Schujules - privately owned Russian sawmill/logging company
• Transparency International - global NGO who promotes corruption-free practices for countries and companies
• Issues:
• Health & Safety
• Illegal Logging
• Corruption
• Successful Press Event in December, 2006
• Model Sustainable Forest suppliers developed
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11. Where We Are:
Recycling:
• Launch of Re-Mix to promote magazine and catalog
recovery
• Boston • Milwaukee
• PG County/DC Metro • Portland
• Partnership with Verso Paper & National Recycling
Coalition
• Ties into carbon reduction strategy -
• Methane 23x’s CO2
• MPA now promoting “Please Recycle”
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12. Our Carbon Footprint: TIME and IN STYLE
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13. Measuring Our Carbon Footprint
• Measure the net greenhouse gas emissions of the entire product
chain for magazine production
• Life cycle analysis:
• Forestry • Printing
• Pulping & Bleaching • Distribution
• Paper-Making • Disposal
• Partners are: Time Inc., StoraEnso, Canfor, The Home Depot,
University of Wisconsin, and The Heinz Center for Science,
Economics & the Environment
• Start date: May 2001
• Heinz Center to serve as NGO advisor - Dr. Tony Janetos
• Dr. Tom Gower, University of Wisconsin, to perform the LCA
• TIME and IN STYLE basis of study.
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14. Major Results
• Time Magazine
• 0.32 t C (1.17t CO2 eq.) per t magazine
• In Style Magazine
• 0.30 t C (1.11t CO2 eq.) per t magazine
• Dimensional Lumber
• 0.22 t C (0.83t CO2 eq.) per t of lumber
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15. Major Results: Time Magazine
• Forest management and harvesting: 2%
• Transport of material to pulp and paper mills: 8%
• Pulp and paper mill emissions: 61% (Energy from
Wisconsin Power Provider)
• Transportation of paper to printers: 1%
• Printing: 4%
• Transportation and distribution of magazines: 8%
• Final fate (Recycling/Landfill): 16%
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16. Paper Working Group
Organized by Metafore - Formed October 2003
Promote availability of environmentally preferable paper
Founding Companies:
Staples Time Inc. McDonald’s
Starbucks Hewlett-Packard Toyota
Kinko’s Nike Bank of America
Norm Thompson Cenveo
Early Adopter Companies:
RR Donnelley Hearst L.L. Bean
QuadGraphics JC Penney Office Depot
Quebecor Federal Express REI
Wal-Mart
Product: EPAT - Environmental Paper Assessment Tool 16

17. Where Have We Been:
Paper Working Group
• EPAT version 1 completed and operational
but …
Issues do remain
• A fact-based tool to evaluate paper
suppliers’ environmental performance
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18. Strategic Issues
Forestry
In Canada and parts of the U.S.,
• Certification nearing practical limits (with exceptions)
• Chain-of-Custody being implemented
• Focus moving towards Boreal, developing countries
Recycling
• Recycling rates in North America way behind Europe
• Recycling in need of re-branding and marketing effort
• Connection with climate change and resource
utilization needs more emphasis
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19. Reduce Greenhouse Gas Emissions
National Security
Moral Issue
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20. Reduce Greenhouse Gas Emissions
Financial Savings
Future Generations
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21. Realities of Climate Change
• CO2 Concentrations up from 280 to 380 PPM
• Heading to 450-550 PPM at a minimum
• IPCC Reports confirm human activity/burning of fossil fuels is the
cause
• Significant impacts will be felt:
• Drought, crop failures
• Tropical diseases move north
• Flooding due to higher sea levels and heavier rain storms
• Greenland? Antarctica?
• Water supply
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22. Realities of Climate Change
• Adaptation a Major Issue
• Alaska/Northern Canada
• Florida
• Southwest
• Central Africa
• Northern Europe
• Mitigation
• Movement away from fossil fuels,
especially coal
• Energy efficiency
• Lifestyle changes
• Carbon tax/cap and trade
• China
• India
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23. Reduce Greenhouse Gas Emissions
• Target by 2012
• 2004 Base 20%
• 2000 Base 25% Reduction in Greenhouse
• 1996 Base 30% Gas Emissions
• Impacts from full supply chain measured
including power providers
• Energy efficiency
• Energy Mix (Renewable)
• Carbon Offsets
• Source Reduction
• Distribution 23

24. Strategic Issues
Climate Change
• The issue has become a leading subject with an
ever increasing amount of media coverage
• #1 issue among Canadians
• Extremely important issue in the U.K.
• Global Cap & Trade System increasingly likely
by 2010 or 2012 at the latest
• U.S. policy shifts now being driven by states
• Increasingly, business is looking for clarity and
committing to be part of the solution
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25. Future Strategy
• Continue to “Do the Deeds”
• Recycling
• Expand ReMix to NYC
• Promote sustainable forestry
• Improve carbon footprint
• Work with like-minded companies
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26. Future Strategy
Forestry
• New Brunswick Biodiversity Project
• Study impact of harvesting in Acadian and Hemi-Boreal forests on song
birds and woodpeckers
• Launched April 26, 2007
• Partners:
• UPM • Time Inc.
• University of Moncton • Bird Studies Canada
• New Brunswick DNR • Nature Conservancy-Canada
• Continue to encourage certification
• U.S. forestlands
• Southern forests
• Monitor certification schemes, encourage improvements
• Wood as a carbon neutral fuel source
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27. U.S. Paper Recovery
• 2005 U.S. recovery rate: 51.5%
• Western Europe recovery rate: 70–75%
• Vancouver recovery rate: 70%
• As a GHG Methane is 23x’s CO2
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28. U.S. Paper Recovery Goals
• 2010: 60% Recovery Rate
• 2016: 70% Recovery Rate
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29. Leadership companies use
Sustainable Development as a
marketing strategy.
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30. “A Corporate-wide commitment to work with our
customers to meet environmental challenges” Jeff Immelt 30

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32. Future Strategy
Advertisers:
• Selling their products as
environmentally preferable
• Desire to partner with like-minded
companies
• Consistency in messaging
• Large advertisers are sustainability
leaders:
• Toyota • HP
• Honda • Nike
• Ford • Unilever
• Bank of America • Dell
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33. Sustainability Strategy
Challenges and opportunities abound:
Questions about industry practices will
continue
Climate change is now THE issue
Companies will carefully market
themselves as sustainable
How you strategically take on these
challenges/opportunities may decide the
economic sustainability of your company
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