One of the gravest “true costs” of buying or selling paper without traceability or a verifiable supply chain is the potential human toll. While transparency has become a hallmark for many paper suppliers in North America, some imported paper, particularly from Asia, raises questions—and risks—regarding human rights practices associated with procurement and processing.

According to the World Business Council for Sustainable Development, “Illegal logging is acknowledged as a major problem by government, the forest industry, labor and trade organization, and non-governmental groups. Illegal logging can result in loss of government revenues, unfair competition, increased poverty and destruction of important ecosystems.”¹

Forests are home to an estimated 800 million people throughout the world.² Because of illegal or unethical logging practices, indigenous people are struggling for their rights in many paper producing regions around the globe.³

According to the Environmental Paper Network, “The land rights of indigenous peoples and rural communities must be respected, but in some regions they are violated in the course of activities by pulp and paper corporations. When paper companies are granted concession to log forests and/or establish fiber plantations without gaining the full and informed prior consent of local communities or indigenous peoples with customary rights on that land, this is an abuse of the land rights of those people and communities. Unfortunately, these abuses are too widespread.”³

In Riau, Sumatra, the loss of community forest has lead to the loss of indigenous livelihoods including hunting, fishing, honey gathering, medicinal herbs and lumber for housing, furniture and much more.³ In the Kuntu village of Riau, the community found that their traditional lands had been signed away when the paper companies’ bulldozers arrived. Violent clashes in Riau have lead to property damage, injuries and fatalities.³

In 2003, Human Rights Watch recommended that the Indonesian government investigate and prosecute those involved in incidents of violence involving the pulp and discontinue the practice of creating private militias and armed groups involved in the conflicts.⁴

Labor and Safety Questions

Although North American paper suppliers are required to comply with stringent labor and safety regulations, such as those monitored by OSHA, the employment practices of international suppliers are not always as carefully controlled. This raises questions for buyers who do not know the manufacturing practices associated with the paper they purchase.

China is the second biggest paper producer in the world after the USA.³ Because labor practices associated with some paper imported from China are largely untraceable, questions about labor practices can create concerns for paper buyers. This is especially true as reports of human rights abuses throughout China and its manufacturing industries in general have surfaced.⁵