Dear Adam Before answering your questions I would like to give you some context of why we launched the

Make It Wood campaign. Climate Change is not only the greatest threat to our survival it is also the greatest threat to the survival of many other species including forest trees and the many species that depend on forest ecosystems. Climate Change is causing hotter and more frequent forest fires resulting in mass tree deaths around the world including Australia (as a result of heat stress & disease (see http://www.abc.net.au/catalyst/stories/3488105.htm). We need to use all reasonable means to avoid and sequester carbon emissions. One of the best ways is to increase the forested areas of the planet with well-managed natural forests to maximise carbon sequestration and environmental values such as biodiversity. The Intergovernmental Panel on Climate Change 2007 Fourth Assessment report on climate change mitigation states: In the long term, a sustainable forest management strategy aimed at maintaining or increasing forest carbon stocks, while producing an annual sustained yield of timber, fibre or energy from the forest will generate the largest [climate change] mitigation benefit. Responsibly sourced wood is the only major building material that is renewable, that stores carbon and that replaces nonrenewable, high carbon intensive materials like steel, concrete and aluminium. With 50% of the dry weight of wood being stored carbon it is an essential element in the move to a low-carbon economy. Renowned Canadian Architect, Michael Green says: In the next 20 years, three billion people in the world will require an affordable home. So we have to build 100,000 new homes every day for the next 20 years concrete and steel are disasters for the environment I know wood is fundamentally what we should build with. An RMIT study states, Substituting wood products from well managed forests and plantations for carbon intensive products could reduce the embodied emissions of a typical house by up to 18 tonnes over its life (Ref: RMIT University study, 31 January 2011, A Comparative Life Cycle Assessment of Alternative Constructions of a Typical Australian House Design). An RMIT study demonstrates that, substituting wood products from well managed forests and plantations for carbon intensive products could reduce the embodied emissions of a typical house by up to 18 tonnes over its life (Ref: RMIT University study, 31 January 2011, Fact sheet LCA Alternative Constructions House Design) <http://www.fwpa.com.au/sites/default/files/Fact_sheet_LCA_Alternative_Constructions_%20Hous e_Design.pdf> . Looking to the future, the increased use of wood sourced from well-managed forests and plantations contributes to an effective response to climate change. It is also likely to be a driver for more certified wood products as well as driving improvements in forest and plantation management in Australia and globally. These positive outcomes can only be achieved by the continued move towards better forestry practices and educating consumers and the design and building industries about the carbon storage capacity of wood. Europes forests have experienced a net gain of over 17 million hectares over the past 20 years. This is mainly as a result of encouragement to increase wood use by governments concerned about climate change. It is a sign that this is also possible in Australia (ref: State of Europe's Forests 2011 report)

QUESTIONS FROM 7.30 REPORT 1. Why is Planet Ark involved with a review of the Australian Forestry Standard? One of the key objectives of the Make It Wood Campaign is to increase awareness and confidence in Forestry Certification systems Planet Ark believes that certification is the best way to prevent illegal logging and encourage responsible forest management. We are aware that all certification systems are based on continuous improvement and are subject to mandatory reviews as a way of ensuring this. It allows consumers to choose wood products that they know are from responsibly managed forests. Planet Ark identified that AFS has a number of limitations and therefore joined the Standard Review Committee with the express aim of strengthening its environmental outcomes. We made a considered decision to join it knowing that a number of other ENGOs have decided to not participate. We respect their right to not participate just as we would expect reciprocal respect for our position. Specifically our focus on the review committee is on a number of key areas within the standard. We are seeking to improve outcomes in the following areas: biodiversity identification and protection, stakeholder engagement, restriction of conversion of native forests to plantations and the elimination of Genetically Modified Organisms (GMOs). The Standard Review is available for public comment and we welcome feedback and comment to assist in its improvement. 2. How much money has Planet Ark received from the timber industry? The sponsorship is $350,000 pa and the agreement is for 2 years. As is the case in all our campaigns, most of this funding is allocated to running the Make It Wood Campaign, with some contribution to Planet Arks overheads. In the financial year completed (2011-12) this sponsorship income represents approx 13% of our revenue. I would point out that Forest and Wood Products Australia Limited (FWPA) is the forestry and wood industrys service provider, investing in research, development and education and is funded by the Federal Government and industry levies. FWPA has partnered with Planet Arks Make it Wood campaign as a means to educate consumers in the environmental benefits of responsibly sourced timber building products 3. What conditions were placed on that money? Was the funding conditional on Planet Arks review of the AFS? Planet Ark and FWPA entered into an agreement for FWPA to sponsor Planet Arks MIW campaign which is designed to help increase timber use in Australia through greater knowledge of sustainable timber as one of the best environmental choices for building and furniture. Their funding was not conditional on our being involved on the AFS. The decision to be involved in all certification systems was made by Planet Ark. We also joined FSC Australia as a member and have been active in promoting it. The FWPA support certification. http://www.naturallybetter.com.au/certification.html?hp=true 4. How does Planet Ark ensure its independence while receiving substantial funding from the timber industry? Planet Ark was formed in 1992 to create positive environmental change and we have a long history of maintaining independence while working with sponsors whether they are companies, industry associations or governments of all political persuasion. We establish were common goals exist and ensure that we have the ability to agree too

disagree on other issues. In other words we are looking for what we have in common. This is exactly the type of arrangement we have with the FWPA. We guard our independence and reputation fiercely. As an example of this recognition by the Australian public, Mobium LOHAS research has placed Planet Ark in the Top 5 for the past 4 years as an organisation acting an ethical and sustainable manner. 5. Does Planet Arks financial relationship with the timber industry hinder its ability to improve the AFS? Why/Why not? From the beginning of our relationship with FWPA Planet Ark has maintained independence on environmental issues. Our position on a wide range of issues has been made public since the beginning of our relationship. We have stated that we believe the AFS has a number of limitations. This differs from FWPAs views and we agree to disagree. You can see our positions at >>> http://makeitwood.org/about/position-statements.cfm 6. How does Planet Ark respond to environmental groups who say Planet Arks involvement with the AFS and the Make it Wood campaign has damaged its credibility? We dont agree. Planet Ark is an environmental organisation committed to encouraging positive behaviour change. As such we believe that individuals and businesses have the power and responsibility to change unsustainable practices. In terms of forestry, consumer choice is one such method. However, in Australia the public and businesses have low awareness of and demand for certification and therefore do not seek it out. As a consequence, there is no significant economic push for forestry businesses to become certified and, therefore, to be accountable to their customers. Protest can be an effective strategy to encourage businesses to cease certain activities but it is not likely to encourage consumers to seek out responsibly sourced wood. We see the value of protest in achieving certain aims and we recognise the positive impacts that many environment groups have had in this area. However, at some stage businesses need to re rewarded for making positive change as well as being reprimanded for making negative ones. The Make It Wood campaign is a building campaign. Our involvement in promoting FSC and in working to strengthen AFS is designed to give consumers the best possible choices when purchasing wood for building whether from recycled sources or responsibly managed plantations and forests. Climate change is by far the most significant environmental challenge facing the world. Unless we use every scientifically proven method to address it the worlds environment will be irrevocably damaged including the forests that environmentalists have fought so hard to protect. We are not and have never advocated for or endorsed the logging in any specific forest, to think that is to fundamentally misunderstand the Make It Wood campaign. An example of what we aiming to achieve is the Forte Building in Melbourne http://makeitwood.org/made-from-wood/forte.cfm is a 10 storey tall and made almost entirely out of wood cross laminated timber to be exact. By being constructed out of this material it will reduce the carbon emissions by more than 1,400 tonnes of CO2. This is through the carbon stored in the wood as well as the saving that would have been released if it had have been build from steel and concrete. This is a significant environmental improvement and signals the direction that the Australian and worlds construction industry needs to move if we are to achieve a low carbon economy. One of the aims of Make It Wood is to increase the understanding of this type of technology and encourage its use.

7. What prompted the decision to sell Planet Ark Park and offer redundancies to employees? When I become CEO of Planet Ark in July 2010 the Board asked me to undertake a strategic review. One question we were asked was why we had 2 offices less than 100km apart with a staff of just over 20. This review lead us to conclude that there were cost & operational advantages from amalgamating into one office in the City and disposing of the Blue Mountains property. Staff based in the Blue Mountains were offered Home Based Work (HBW) arrangements or a generous redundancy package. 8. Why sell Planet Ark Park at the bottom of the market? Planet Ark Park was sold at market, after an exhaustive sales process that lasted more than 12 months. The sales price was consistent with book value. The property was purchased for $500,000 and sold for $875,000 - a return of over 8% pa over the 7-year period we owned it, which is in line with long-term property returns. 9. How many redundancies were offered? There were 12 redundancies offered (6FT & 6PT) with 8 (3FT & 5PT) taking up the offer. We consulted with the Australian Services Union & HR experts to ensure best practice, which included HBW agreements with 6 months trials. Our HR expert said we were cutting edge in flexibility of the HBW arrangements offered to our staff. 10. Do the recent financial losses incurred by Planet Ark indicate that the charity is in trouble? No. We are a well-managed, financially solvent non-profit organisation that does not provide any financial return to members. As with many not-for-profit organisations, we incurred some difficulty throughout the Global Financial Crisis, but our financials statements for the 2011-12 year are being finalised and we expect a surplus and are budgeting a further surplus in the 2012-2013 financial year. Key to this was the amalgamation of our 2 offices, which has generated substantial financial savings and productivity improvements. 11. Why havent Planet Arks Make It Wood advertisements made it clear that the FSC is the preferable standard for wood products? The aim and message of the ad is to educate the public, builders and architects about the carbon storage capacity of responsibly harvested timber, of which research says there is very low awareness. Using, sustainably sourced wood for building or furniture making purposes locks away carbon and that is good! This is the single focused purpose of the advertisement. Attempting to deal with deeply complex issues in a 30 second ad would be counterproductive as I am sure you would understand. If you go to http://makeitwood.org/choosing-wood/ you will see that we have given preference to FSC.