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Management Side
Week of 14 April 2025: How the industry has missed the environmental opportunity

Email Jim at jim.thompson@ipulpmedia.com

On a trip to the Helsinki office of Jaakko Pöyry in 1989, Jaakko Pöyry (the man) grabbed me in the hall one day and we went to the auditorium. He had a tape in his hands and gave it to the projectionist. "Jim, I want you to see this."

It was a news tape from Australia chronicling a large protest taking place in Tasmania over the prospects of a new pulp mill being built there. Both of us were left speechless, we had never seen anything like this before.

When I started my consulting company in 1992, I thought there was a business in interpreting environmental issues at pulp and paper companies to the general public. Pulp and paper companies at the time were not interested, they just wanted to sue anyone who came after them.

In the meantime, in the United States at least, there have been no new virgin fiber pulp mills built since 1989, and several have been shut down. Now, with today's tariff policies, it looks like depulping the USA may have been a very poor decision.

What we have done over the past thirty-three years, besides initiating and defending lawsuits in the environmental aspects of the pulp and paper industry, is withdraw from the public.

We do communicate--with each other. We give environmental awards to--each other. All a silly salve and a poor excuse for the work that really needs to be done. Our silence when it comes to the general public is deafening and perpetuates the idea we are guilty of something.

What should we do? Well, first of all, we should follow all the laws and conform to all the regulations for air, water, noise and smell. Then we should publicize this to the general public--loudly.

Where I live, all restaurants have to pass health inspections, and the results must be prominently displayed at the entrance. Let's do this with our environmental data. If you still have a local newspaper, release to them the results of your tests every time they are taken. If you don't have a local newspaper, or even if you do, release these results to the city council, county commissioners or whomever else is the local governing authority. Have these read into their minutes as a matter of record.

It is one thing to have an occasional open house (which all mills should do), it is another thing to put the numbers out there to show the general public we are being good neighbors.

Then, when the environmental advocates from out of town come around, you can count on the help of the neighbors to set the story straight.

Wars start, marriages break up and friendships are lost due to a lack of communications. Here is a chance to be proactive and get ahead of the game. The costs are tiny when compared to the alternatives.

Get started today--unless you have something to hide. If you do, then fix it!

Be safe and we will talk next week.

Want a deeper dive? Go here.

The Pulp and Paper Industry's Missed Environmental Opportunity: A Study Guide

Quiz

  1. What event in Tasmania in 1989 profoundly affected Jaakko Pöyry and Jim Thompson, illustrating a growing public concern regarding pulp mill development?
  2. According to Jim Thompson, what was the initial business opportunity he identified in 1992 concerning the pulp and paper industry and the general public? Why did this opportunity not materialize as he hoped?
  3. What significant trend has occurred in the United States pulp and paper industry regarding the construction of new virgin fiber pulp mills since 1989? What potential consequence of this trend does the author mention in light of current tariff policies?
  4. What has been the primary focus of the pulp and paper industry's engagement with environmental issues over the past three decades, according to the author? What examples does he give of their current communication efforts?
  5. What is the central problem identified by the author regarding the pulp and paper industry's public communication on environmental matters? What is the consequence of this silence?
  6. What is the first and foremost action that the author suggests pulp and paper companies should take regarding environmental responsibility?
  7. Drawing a parallel to the restaurant industry, what specific action does the author recommend pulp and paper companies take to increase transparency about their environmental performance?
  8. Beyond occasional open houses, what benefit does the author foresee in regularly publishing environmental data to local governing authorities?
  9. According to the author, what can be a significant consequence of a lack of communication, and how does this relate to the pulp and paper industry's environmental challenges?
  10. What is the author's concluding advice to the pulp and paper industry regarding their environmental practices and public communication?

Quiz Answer Key

  1. The event in Tasmania was a large public protest against the prospect of a new pulp mill being built. This demonstration of public opposition was unprecedented for both Pöyry and Thompson.
  2. Thompson saw a business opportunity in interpreting environmental issues at pulp and paper companies for the general public. This did not materialize because pulp and paper companies at the time were more inclined to pursue legal action against critics rather than engage in public communication.
  3. There have been no new virgin fiber pulp mills built in the United States since 1989, and several existing mills have been shut down. The author suggests that "depulping the USA" may have been a poor decision given today's tariff policies.
  4. The industry's primary focus has been on initiating and defending lawsuits related to the environmental aspects of their operations. Their current communication efforts are largely internal, involving giving environmental awards to each other.
  5. The central problem is the industry's deafening silence when it comes to communicating with the general public about their environmental practices. This silence perpetuates the idea that they are guilty of environmental wrongdoings.
  6. The author states that the first step should be to follow all environmental laws and conform to all regulations for air, water, noise, and smell.
  7. The author recommends that pulp and paper companies prominently display their environmental data, similar to how restaurants are required to display health inspection results.
  8. Regularly releasing environmental test results to local governing authorities can provide evidence to the local public that the mills are being good neighbors, potentially leading to community support when external environmental advocates raise concerns.
  9. A lack of communication can lead to wars, breakups, and lost friendships. In the context of the pulp and paper industry, poor communication has fostered distrust and allowed negative perceptions to persist.
  10. The author advises the industry to start being proactive by publicizing their adherence to environmental regulations and their environmental data unless they have something to hide, in which case they should fix it.

Essay Format Questions

  1. Analyze the reasons behind the pulp and paper industry's historical reluctance to engage in transparent public communication regarding their environmental impact, as suggested by Jim Thompson.
  2. Evaluate the effectiveness of Jim Thompson's proposed solutions for improving the pulp and paper industry's relationship with the public concerning environmental issues. Consider potential challenges and benefits of implementing these suggestions.
  3. Discuss the potential long-term consequences for the pulp and paper industry if they continue to maintain a "deafening silence" on their environmental performance, as described by the author.
  4. Compare and contrast the potential impact of proactive public communication about environmental data with the traditional approach of legal defense within the pulp and paper industry, as presented in the source material.
  5. Considering the 1989 protest in Tasmania and the subsequent trends in the US pulp and paper industry, discuss how public perception and environmental activism have shaped the industry over the past three decades.

Glossary of Key Terms

Virgin Fiber: Pulp produced directly from wood or other plant fibers that have not been previously used in paper products.

Pulp Mill: An industrial facility that converts wood or other fibrous raw materials into wood pulp, which is then used to make paper and other products.

Tariff Policies: Government-imposed taxes or duties on imported or exported goods. In this context, tariffs could influence the economic viability of domestic pulp production versus importing.

Depulping: In the context of the text, this term metaphorically refers to the decline in domestic pulp production in the USA due to factors like mill closures.

Salve: Something used to soothe or heal; in this context, referring to the industry's internal awards and communications as inadequate measures to address public concerns.

Environmental Advocates: Individuals or groups who actively work to protect the natural environment.

Proactive: Taking initiative and anticipating future problems or needs rather than just reacting to events.

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