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Sunday, May 6, 2012

Invester backlash against illegal logging results in APP contract cancellation...

Notorious company  Asian  Pulp and Paper (APP),  linked to illegal logging and the clearance of Sumatran tiger habitat, today suffered  another massive blow with Canadian  investment giant Mackenzie  Investments announcing  that it has ceased  in investing in APP operations...


A view of Bukit Tiga Puluh National Park, the biggest tiger habitat in Sumatra.
The notorious company Asia Pulp and Paper (APP), linked to illegal logging and the clearance of Sumatran tiger habitat, today suffered another massive blow with Canadian investment giant Mackenzie Investments announcing that it has ceased investing in APP operations.
Greenpeace recently exposed APP’s main mill in Indonesia for using illegal timber to fuel its operations. Not only did Greenpeace investigations find that the Indah Kiat mill is systematically violating Indonesia’s laws protecting the internationally protected tree species ramin, it also found that the mill is supplied with rainforest timber from areas mapped as habitat of critically endangered species like the Sumatran tiger, whose numbers are down to an estimated 400 in the wild.
In a brief statement posted online, Mackenzie stated:
PT Indah Kiat Pulp & Paper Corp. TBK is no longer held by Mackenzie. Based on a full review of the holding and taking all aspects of the investment into consideration, the portfolio manager determined that the sale of Indah Kiat was in the best interest of the Funds.
As an Imagine Canada Caring Company, Mackenzie Investments embraces corporate citizenship and is committed to following ethical and environmentally responsible business practices. Greenpeace strongly welcomes Mackenzie’s move.
The announcement comes on the back of another large international investor, Norway’s Skagen funds, selling its shares in Inda Kiat based on a “review of investment philosophy, ethical guidelines and our aim of providing our unit holders with the best possible risk adjusted return.” Indah Kiat’s share price fell a massive 25% last year alone.

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