1. Integrating Social-Responsibility into For-Profit Economic Development Charles V. Fishel, CEO Abundant Biofuels Corporation

3. Bhopal, India December 3, 1984 40 tons of vaporous methyl isocyanate hydrogen cyanide monomethyl amine, carbon monoxide and possibly 20 other chemicals were released from Union Carbide pesticide plant after explosion. 3000 people killed 500,000 injured

4. Bhophal – 20 Years Later In 2004, complaints from area residents led the Supreme Court to order the state to supply clean drinking water to the people living around the factory, like this young girl, filling buckets fed from a government- provided tank By then, nearly 20 years had gone by, with residents of the nearby slum drinking contaminated water, with often disastrous results on their health. http://www.nytimes.com/slideshow/2008/07/07/world/20080707BHOPAL_index.html

6. Hundreds of tons of waste still languish on grounds of Union Carbide pesticide factory in Bhopal, India, nearly a quarter-century after a poison gas leak killed thousands and turned this ancient city into notorious symbol of industrial disaster Just beyond factory wall is blue-black open pit repository of chemical sludge from pesticide plant is now a pond where slum children and dogs swim on hot afternoons. Bhophal – 20 Years Later

8. http://www.nytimes.com/slideshow/2008/07/07/world/20080707BHOPAL_index.html

9. More than 500,000 people were declared to be affected by gas and awarded compensation about $550 Some victims say they have yet to receive any money Interpol’s efforts to extradite Warren M. Anderson, CEO continue, though apparently with little energy. Bhophal – 20 Years Later

11. ChevronTexaco (Texaco merged with Chevron in 2001) While drilling in the Ecuadorian Amazon from 1964 to 1990, Texaco dumped more than 18 billion gallons of toxic wastewater, spilled roughly 17 million gallons of crude oil, and left hazardous waste in hundreds of open pits dug out of the forest floor.

12. ChevronTexaco To save money, Texaco chose to use environmental practices that were obsolete, did not meet industry standards, and were illegal in Ecuador and the United States.

13. ChevronTexaco Contamination of soil, groundwater, and surface streams caused local indigenous and campesino people to suffer mouth, stomach and uterine cancer, birth defects, and spontaneous miscarriages.

14. ChevronTexaco Today, 30,000 Ecuadorians are demanding justice in a landmark class action lawsuit An independent court- appointed expert recently deemed Chevron responsible for up to $27 billion in damage.

15. For-Profit Social-Responsibility Biofuels Case Study:

16. D1 Oils Old Strategy: Traditional Oil Company Model Go to poor country Buy seeds at lowest possible profit Export back to England for refining and Sale to European customers No benefit to indigenous peoples

18. U. S. Biodiesel Refineries 150+ Biodiesel Refineries 47 are idle 100 are operating below capacity.

21. U. S. Biodiesel Refineries Even when operating at capacity, Refinery profitability depends upon U.S. government tax credits / subsidiaries.

22. Food vs. Fuel Diversion of agricultural land Deforestation Water contamination Increasing fuel costs stimulate poverty.

23. Impact on Food Production Some Biofuels Are Destroying agricultural Production Causing food shortages.

24. Increasing Fuel Costs Stimulate Poverty Some farmers benefit from higher prices But many poor countries are net grain importers Poorest of poor spend >70% on food About 1/3 rd of sub-Saharan Africa is undernourished – living on less than $1/day Proportion has barely changed since 1990s. http://www.washingtonpost.com/wp-dyn/content/article/2007/12/11/AR2007121101834.html International Food Policy Research Institute

25. Deforestation Demand for biofuels encourages deforestation in developing countries U-Tube graphically illustrated clearing of Indonesian forests to increase palm oil production for biofuel. http://www.washingtonpost.com/wp-dyn/content/article/2007/12/11/AR2007121101834.html

26. Indonesia …. If 10,000 sq meters of rainforest is cleared to make way for growing soy beans used to make biodiesel Over 700,000 kilograms of carbon dioxide is released Saving generated by resulting biodiesel will cancel out in about 300 years.

27. Indonesia …. If peat land rainforest in Indonesia is cleared to grow palm oil, carbon debt will take over 400 years to repay.

28. Indonesia …. When carbon released is taken into account, corn ethanol produces nearly twice as much carbon as petroleum.

29. http://www.guardian.co.uk/environment/gallery/2008/may/21/endangeredhabitats.fo rests?picture=334279833http://www.guardian.co.uk/environment/gallery/2008/may/21/endangeredhabitats.fo rests?picture=334279833) 2.2 million hectares of Colombian Amazon forest has been cleared to grow coca over past 20 years It will take between 100 and 600 years for just 1 hectare to recover.

31. Sustainable Energy Helping to “decarbonize the world

32. Abundant Biofuels will not Divert land from agricultural production Engage in any deforestation Will not use any water for irrigation.

33. Social Impacts Abundant Biofuels will Increase average daily wage to meet UN Anti-Poverty goals 8 years ahead of schedule provide full health coverage to all employees and their families Share profits with indigenous peoples.

34. Sustainability Abundant is committed to sustainable development Company has chosen a crop that will grow for 40 – 50 years after planting and can be harvested almost continuously after 8 months Abundant Biofuels commits itself to establishing and maintaining highest standards In 21st Century, that is simply good business!

35. Declaration on Rights of Indigenous Peoples Although UN Declaration was rejected by United States (among others), Abundant Biofuels Corporation endorses UN Declaration and intends to fully comply with its principles.

36. Case Study Conclusion Import-Based Strategy Little benefit to indigenous peoples Supply problems Transportation costs Limited profit Food vs Fuel Sell in host country Premium selling price Benefit to indigenous people Full employment Health care Profit sharing Import substitution High profits

37. Socially Responsible Investing In Philippines, Abundant works directly with Lumad federation (land is held communally) Easy structure: Profit-sharing joint venture Employ indigenous people at living wage with health care.

38. Socially Responsible Investing Other countries: Impoverished natives aren’t organized Land is owned by individuals small plots Workforce often concentrated in urban ghettos.

39. Work with Microlenders Our focus is developing 10,000 hectare plantations that need about 4,000 workers Working with small farmers / landowners is very inefficient.

40. Work with Microlenders Abundant Biofuels is working with small and medium sized farmers in Peru and Colombia to produce biodiesel from Jatropha These farms are located in poor, rural where land is under used, and often degraded to due deforestation.

41. Farmers often turn to growing cocaine as the only viable cash crop

42. It is hard to establish trust with these farmers…. Working with NGOs and micro-lenders will help us gain their friendship / trust

43. Working with NGOs / Microfinance We prefer to work with NGOs who can organize cooperatives / communities to reach critical mass --- provide bridge of trust In Peru, Abundant received approval from InterAmerican Development Bank (IADB) to develop 10,000 hectares in Region of San Martin (near City of Tarapoto) Abundant Biofuels will be working with SNV, a Dutch NGO, based in Tarapoto.

44. Working with NGOs / Microfinance Microfinance banks can provide financing to individuals / cooperatives / communities Abundant can provide guarantees where needed Better than creating an Abundant Biofuel “ Company Town ”

45. Together We can bring sustainable economic development with dignity to indigenous and impoverished peoples of the World