APP customer: Disney

Background - November 26, 2011
Forensic testing shows that a wide range of packaging and paper products carrying the Disney brand regularly contain Indonesian rainforest timber. In Indonesia, Mattel manufactures a wide range of Disney-branded fashion dolls. Mattel uses packaging material produced by APP, a group Greenpeace investigations reveal continues to destroy rainforest habitat of critically endangered wildlife and to be engaged in large-scale illegal clearance of peatland.

 Disney graphic

  • Disney licensing agreements cover all companies manufacturing merchandise under the Disney brand. However, these agreements do not require the manufacturer to exclude use of rainforest timber.
  • Mattel manufactures a wide range of the Disney-branded Princess fashion dolls, including Snow White, Cinderella, Rapunzel and Sleeping Beauty dolls, at the same facility in Indonesia that manufactures Barbie.
  • Greenpeace evidence shows Mattel Indonesia is using Indonesian rainforest timber in packaging for Disney-branded merchandise.
  • Greenpeace investigations show that APP is supplying packaging board for Disney-branded merchandise manufactured by Mattel.

Disney is number one licensed brand

2011: Disney branded packaging was found to contain Mixed Tropical Hardwoods (rainforest fibre).

 

Disney is 'the world's largest [merchandise] licensor with global retail sales of $27 billion for 2009'.[1]

Disney is a public company, listed on the New York Stock Exchange, with its headquarters located in Burbank, California, USA.[2] Founded in 1923 as a cartoon studio, today the company has grown into a multinational entertainment business.[3]

Disney's total 2010 sales amounted to US$ 38.1 billion (€28.2 billion).[4] While the consumer products division accounted for only 7% of sales,[5] the company is currently working with key retailers to shift from its 'licensed business model' to a 'consumer products company':[6] it is looking to expand its direct marketing of merchandise.

'Disney-branded merchandise is inspired by characters from Disney's beloved animated films, including its first - Snow White and the Seven Dwarfs - to more recent films like The Princess and the Frog and Disney Pixar's Toy Story and Cars.'[7]

'Disney Princess has become a powerful lifestyle brand accounting for $4 billion in global retail sales, touching every aspect of girls' lives around the world.'[8]

Paper policy

'Nature conservation is a top Disney priority.'[9]

Disney has written to Greenpeace recognising it has a role to play in reducing deforestation,[10] and has introduced purchasing policies that cover limited parts of its direct merchandise manufacturing.

Own production

'Disney seeks to have 100% of paper sourced for products and packaging by its non-licensed businesses be sustainable. The paper sourced will contain recycled content, be sourced from certified forests, or be of known sourced origin.'[11]

This is a weak policy that does not ensure that Disney does not trade with companies involved in deforestation. By 'known sourced origin' they mean that 'the purchaser has been informed of where the timber is grown and has determined that the source is not unwanted (eg illegally harvested)'.[12]

Products manufactured by third parties or under license

'The vast majority of Disney-branded products are manufactured and sold under licenses granted by Disney to third party licensees.'[13]

In theory, Disney's code of conduct applies to all manufacturers of Disney-branded merchandise, including items produced by third parties and licensees.[14] 'Companies that make Disney-branded products must sign a contract stating that they do not and will not use child labor',[15] for instance. However, under the heading 'Protection of the Environment', the code only requires that manufacturers 'comply with all applicable environmental laws and regulations'.[16] Furthermore, Disney's paper policy[17] only applies to the limited number of products it manufactures directly. It does not require any of its more than 3,700 licensees[18] to avoid trade with companies involved in deforestation.

End matter

Footnotes

[1] Disney (2010)
[2] Disney (2011a)
[3] Disney (2011a)
[4] Disney (2011a): 28
[5] Disney (2011a): 30
[6] Disney (2010)
[7] Disney (2010)
[8] Disney (2010)
[9] Disney (2011b)
[10] Stevens (2011)
[11] Disney (2011b)
[12] Disney (2011b)
[13] Disney (2011b)
[14] The Walt Disney Company website: 'Corporate Citizenship - Labor Standards - Code of Conduct for Manufacturers'
[15] The Walt Disney Company website: 'Corporate Citizenship - Labor Standards - FAQ'
[16] The Walt Disney Company website 'Corporate Citizenship - Labor Standards - Code of Conduct for Manufacturers'. See also The Walt Disney Company website 'Corporate Citizenship - Labor Standards - FAQ'; eg 'As a condition of doing business with Disney' the company requires 'licensees and vendors to identify the facilities where they intend to source Disney-branded products'.
[17] Disney (2011b)
[18] Disney (2011b)
[20] IPS test results 2010-2011. Copies held by Greenpeace

Forensic evidence links Disney to the destruction of Indonesia's rainforests

Disney branded packaging was found to contain MTH (rainforest fibre) and printed by Sansico.

 

Expert forensic testing reveals that MTH is regularly found in a wide range of packaging and paper products for Disney-branded merchandise.[19] This evidence exposes Disney's role in the destruction of Indonesia's rainforests.

 

End matter

Footnotes

[19] IPS test results 2010-2011. Copies held by Greenpeace

Disney-branded merchandise containing MTH

Selection of Greenpeace evidence of packaging or paper products for Disney-branded merchandise found to contain MTH:[20]

Sample number Country of purchase Brand/ product Product code Packaging and printing company Presence of MTH in test sample Presence of acacia in test sample
21 UK Sleeping Beauty doll R4855 - yes yes
22 UK High School Musical 3 doll N6880 - yes yes
23 UK Cinderella doll R4854 - yes yes
24 UK Snow White doll R4858 - yes yes
25 UK Princess Doll Belle doll R4842 Sansico yes yes
26 UK Rapunzel doll T3244 - yes yes
27 UK Rapunzel doll (instruction leaflet only) T2579 - yes yes
28 Germany Princess Belle / Bath Beauty R4870 Sansico yes yes
29 Brazil Princess Ballerina Cinderella doll R4304 - yes yes
30 Germany Winnie the Pooh Uno card game   - yes yes

Greenpeace investigations link Disney to APP

Disney brand UNO cards made by Mattel.

Disney Princess brand 'Made in Indonesia'[21]

Greenpeace has identified that Mattel manufactures Disney Princess and High School Musical-brand fashion dolls in Indonesia. These iconic dolls, including Snow White, Cinderella, Rapunzel and Sleeping Beauty, are manufactured at the same Mattel Indonesia facilities that produce Barbie. Forensic testing of a wide selection of packaging materials for these dolls reveals that they regularly contain significant amounts of MTH.[22]

Greenpeace investigations show that Mattel Indonesia uses packaging material produced by APP. Mattel Indonesia manufactures Disney-branded fashion dolls. Some of the packaging for these products is labelled as printed by Sansico, which is supplied with packaging material by APP. See 'Greenpeace Investigations Link Mattel to APP'.

The tip of the iceberg[23]

Disney reigns as 'the world's largest licensor with global retail sales of $27 billion for 2009'.[24] More than 3,700 licensee companies produce Disney-branded merchandise under license globally.[25] Most Disney merchandise either is sold with packaging or is itself a paper product (stationery, puzzles, drawing books etc).

Packaging for Disney-branded merchandise manufactured by Mattel Indonesia is clearly just the tip of the iceberg in terms of the company's links to APP and the destruction of Indonesia's rainforests. Ningbo Asia Pulp & Paper holds a Mattel certificate for playing card paperboard.[26] Forensic testing of cards and packaging for a Disney-branded edition of Mattel's UNO card game made in China have tested positive for MTH.[27]

Within Indonesia, preliminary Greenpeace investigations identified a variety of Disney-branded merchandise marketed by a wide range of licensees for sale in international retailers such as Carrefour. Forensic testing of a range of packaging for these products revealed the use of MTH.[28]

In the absence of specific safeguards, paper products in particular from China or Indonesia have a high risk of being linked to APP and of driving destruction of Indonesia's rainforests.

End matter

Footnotes

[21] Greenpeace investigations 2010-2011
[22] IPS test results 2010-2011. Copies held by Greenpeace
[23] Greenpeace investigations 2010-2011
[24] Disney (2010)
[25] Disney (2011b)
[26] Ningbo Zhonghua Paper Co. Ltd., online
[27] IPS test results 2010-2011. Copies held by Greenpeace
[28] IPS test results 2010-2011. Copies held by Greenpeace

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