Ray Risco President Weyerhaeuser Solutions Vice President Weyerhaeuser Timberlands
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INTRODUCTION § Global forests as a sustainable solution § Weyerhaeuser and Weyerhaeuser Solutions: Positioning for the future § Opportunities for professionals and technologies
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EMPTY WORLD TO FULL WORLD Population
Energy
Economics
Human population and industrial economy footprint Biosphere
Climate
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Biosphere
Environment
CONSUMPTION, BIOCAPACITY AND HUMAN DEVELOPMENT Meets minimum criteria for sustainability
World average biocapacity per person Label 0
0.1
Label 0.2
Label 0.3
Label 0.4
Label 0.5
Label 0.6
Human Development Index 4
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Label
11
Label
10
Label
9
Label
8
Label
7 6
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5
Label
4
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3
Label
2 1
Label 0.7
12
0.8
0.9
0 1.0
Ecological Footprint
Threshold for high human development
HUMAN DEVELOPMENT AND ECOLOGICAL FOOT PRINTS
VISION 2050 COMPANIES
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2050 PROCESS Vision Elements
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Pathways
Resources, Energy and Environment
Low (carbon) footprint New energy mix Ecosystem services and capacity Life-cycle and resources management
Governance
Global governance New standards and measures Incentives mandates and policies
People and Values
Eco-affluence Human well-being All stakeholders
Economy
Inclusive economy Green economy Sound financial system
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Solution Spaces Water and ecosystem services Resource management Systems solutions Human well-being Financial frameworks Radical business change
FORESTS / FORESTRY CONTRIBUTIONS § Forests comprise 30% of world land area – 84% publicly owned
§ Forest area has declined by 225 million hectares since 1980 – contributing 17% of global CO2
VALUE PROPOSITION Global Drivers Business Opportunities Forest Solutions “Biomass, Environmental Offsets, Ecosystem Services”
Client Value Proposition Weyerhaeuser knowledge, reputation and experience provides forest solutions for energy and environmental needs 9
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More people and consumption Renewable resource markets Energy use and sustainability
Weyerhaeuser Value Proposition • Leverage expertise and reputation to develop new opportunities • Leader in delivering timberlands values to non-forest products industries and investors
Weyerhaeuser Beliefs Emerging markets growing More options for value from land and forests Sustainability here to stay
Voice of the Client “We need forest-based solutions” “We want to invest in timberlands”
OVER 100 YEARS OF EXPERIENCE
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WEYERHAEUSER VISION
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WEYERHAEUSER SOLUTIONS
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TARGET MARKETS à POTENTIAL CLIENTS Biomass Supply Energy Chemicals Materials & Mining Agriculture Government
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Environmental Offsets
Ecosystem Services
WEYERHAEUSER PLATFORMS Land Logistics
Species Forest Management Silviculture
Harvest
Non-timber
Procurement Sustainability
Conversion Markets / Products
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SILVICULTURE Financial Optimization
Seedlings
US WEST US SOUTH URUGUAY CHINA
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Sustainability Genetics
Stand Management
Site Preparation, Fertilizer, Thinning and Pruning
Final Harvest
HOLISTIC FOREST MANAGEMENT SYSTEM
Optimal Financial Output Soil 16
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Water
Productivity
TECHNOLOGY § Sensing technologies and growth and yield models ensure financially attractive practices
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ROLE OF PROFESSIONALS
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SUMMARY § Weyerhaeuser is adapting to new business environment § First phase of Weyerhaeuser Solutions launch is meeting expectations § Key role for forestry technologies – expanded business models and capitalization § Major opportunity for forestry and forest professionals and technical experts