1. Indonesian Roundtable A Publisher’s Perspective Lisa Serra October 21, 2010

2. Scholastic Inc. • The world’s largest publisher and distributor of children’s books and a leader in educational technology and related services and children’s media • Our Mission: To help children around the world read and learn

3. Scholastic’s Credo We believe in: The worth and dignity of each individual Respect for the diverse groups in our multicultural society The right of each individual to live in a wholesome environment, and equally, the personal responsibility of each individual to help gain and preserve a decent and healthful environment, beginning with informed care of one's own body and mind High moral and spiritual values The democratic way of life, with basic liberties — and responsibilities — for everyone Constitutional, representative government, and even-handed justice that maintains equality of rights for all people Responsible competitive enterprise and responsible labor, with opportunities for all Cooperation and understanding among all people for the peace of the world

4. Scholastic’s Environmental Mission To have a strong environmental policy that focuses on certification, wise use of resources, and educating children on environmental issues including climate change and sustainability To ensure that the paper fiber used in our product is sustainably harvested and does not come from areas of social conflict

5. 2012 Goals and Paper Fiber Requirements 30% of publication paper to be FSC certified 4% base 2009 – 17.3% 25% of fiber to be recovered (75% of that PCW) 13% base 2009 – 19.8% Balance of fiber to be free of unacceptable sources of fiber as described by the FSC controlled wood standard which includes illegally harvested fiber

6. Applying Policy to Overseas Printing January 2008 Announced policy and notified vendors of our fiber requirements and goals Scholastic decides to phase out Gold East paper due to revocation of FSC certificate, and all APP/April Conversations with our printers to determine options and costs for substitutes

7. Overseas Product Fiber Sourcing and Certification Certified Paper Non-Certified paper from FSC certified mills Utilize various environmental paper graders Asking for fiber basket forms Testing F&Gs to ensure it matches fiber form Non Compliance Printer Dialogue Discontinued Usage

8. Overseas Product With Revision of Lacey Act Letters sent to overseas vendors asking them to sign off on our requirements Fiber must meet conditions of the FSC controlled wood standard Fiber must be Lacey Act Compliant Cannot be sourced from APP or April or any of their subsidiaries As contracts are renewed or negotiated and RFP’s are issued the same requirement language has been/is being added Lacey Act compliancy terms added to purchase order terms

9. THANK YOU