AmazonWatch2008

2008 ANNUAL REPORT

AMAZON WATCH

Cover: Achuar C

ommunity in Ecuador (A

ntoine Bonsorte / A

mazon W

atch)

From regime change in the White House to the major shake up of theglobal economy, 2008 marked the beginning of a new era. The meltdownon Wall Street awakened people to the perils of rampant corporate greed,lack of accountability and the failures of unbridled capitalism.

While the oil industry reported record profits through most of 2008,Amazon Watch worked hard to shine the spotlight on the industry’s abus-es in the Amazon.

Our dedicated staff organized delegations from affected communities tothe annual stockholder meetings of Occidental Petroleum, ConocoPhillips,Talisman, and Chevron calling for corporate accountability and respect forhuman rights.

We celebrated some strategic milestones throughout the year; amongthem the following stand out.

n Ecuador’s Constitutional Assembly voted to grant inalienable rights tonature in the country’s new constitution.

n Petrobras abandoned plans for the controversial oil block 31 inEcuador’s Yasuni National Park.

n The court appointed expert in the trial against Chevron released hisfindings that the company is liable for an estimated $27 billion forcleanup in the Ecuadorian Amazon.

MESSAGE FROM

THE EXECUTIVE

DIRECTOR

Outside Occidental Petroleum Annual Shareholder Meeting (Thomas Cavanagh / Amazon Watch)

n Nominated by Amazon Watch, Pablo Fajardo and LuisYanza won the 2008 Goldman Environmental Prize forleading the 16-year legal battle against Chevron. Thecompany chose unwisely to attack them in the mediawith their efforts backfiring.

n Amazon Watch and the Amazon Defense Coalition’smultifaceted Chevron campaign for clean up of theEcuadorian Amazon took first place at the BusinessEthics Network’s 2008 Benny Awards.

n With support from Amazon Watch, Peru’s indigenousmovement effectively forced the Peruvian Congress tomodify several Presidential decrees that attempted toroll back indigenous land rights. The problem howeverdid not get fully resolved in 2008 foretelling an uprisingin 2009.

n In Los Angeles, Tomas Maynas Carijano, the PeruvianAchuar elder and lead plaintiff in the oil pollution lawsuitagainst Occidental Petroleum, delivered his message tothe company’s doorstep. Favorable editorials by the LATimes called for “corporations doing business around theworld to take their best practices with them.” The editorialbrilliantly framed the issue: “Call it a reverse incursion—tribes following corporate giants into their native habitats . . . Maynas and other indigenous leaders are beardingbusiness lions in their own cultural dens: at shareholdermeetings, in boardrooms and, increasingly, in court.”

n In Calgary, Talisman’s CEO met with our delegationand pledged to respect the Peruvian Achuar’s right toconsent.

n Throughout the year, Amazon Watch campaigners trav-eled to remote regions of the Amazon to carry out fact-finding missions and advocacy training with local organi-zations and communities.

n Amazon Watch completed its strategic plan and visionfor the next 3 to 5 years. We identified strategies thatare working and created a plan to scale up programsand campaigns in the face of daunting challenges fac-ing the Amazon region, namely the reality that theAmazon rainforest is approaching the tipping point ofecological collapse in our lifetime.

As 2008 came to a close, signs of hope appeared on thehorizon. We witnessed a growing public awareness foraddressing the global climate crisis and the role of tropicalrainforests in stabilizing our global climate became morewidely recognized.

On behalf of everyone at Amazon Watch, I thank all of oursupporters and invite you to continue investing in AmazonWatch in this critical time as we generate greater momen-tum for defense of our planet and human rights.

For Future Generations,

Atossa SoltaniFounder / Executive Director

Ecuadorian Amazon (Antoine Bonsorte / Amazon W

atch)

Our Vision

We envision a world that honorsand values cultural and biologicaldiversity and the critical contribu-tion of tropical rainforests to ourplanet’s life support systems.

We believe that indigenous self-determination is paramount, andsee that indigenous knowledge,cultures and traditional practicescontribute greatly to sustainableand equitable stewardship of theEarth.

We strive for a world in which gov-ernments, corporations and civilsociety respect the collective rightsof indigenous peoples to free, priorand informed consent over anyactivity affecting their territoriesand resources.

We commit, in the spirit of partner-ship and mutual respect, to sup-port our indigenous allies in theirefforts to protect life, land, and cul-ture in accordance with their aspi-rations and needs.

Amazon Watch works to protect the rainforest and advance the rights of

indigenous peoples in the Amazon Basin. We partner with indigenous

and environmental organizations in campaigns for human rights, corporate

accountability and the preservation of the Amazon’s ecological systems.

Peruvian Achuar Territory (Nathalie Weemaels)

OUR MISSION

AND VISION

In the Amazon region of Brazil,

Colombia, Ecuador and Peru, Amazon

Watch is working directly with indige-

nous communities to build local

capacity and advance the long-term

protection of their territories. In part-

nership with indigenous peoples, non-

governmental organizations, con-

cerned shareholders and citizens, we

utilize the following strategies:

Campaign to persuade decisionmakers in corporations, internationalfinancial institutions and national gov-ernments to honor the rights of indige-nous peoples to self-determinationand free, prior and informed consentover “development” decisions in theirterritories and to fund full cleanup ofareas devastated by past and presentoil drilling. We use media exposure,

legal action and shareholder cam-paigns to demand corporate socialand environmental accountability.

Strengthen capacity of indige-nous organizations in the Amazon todefend their rights in local, nationaland international fora. Through legal,advocacy, media and technology train-ing and the donation of equipment, wehelp our indigenous partners asserttheir collective and territorial rights andadvance an alternative vision for con-servation-based development of theirterritories

Seek permanent protectionfor threatened areas and vulnerableindigenous populations in the Amazonrainforest. In partnership with nationalgovernments and ally organizations inSouth America, we promote new, sus-tainable alternatives to resource

extraction-based economic develop-ment. At the same time we monitorand publicize new threats in pristine orvulnerable Amazon frontiers and seekan end to public financing for destruc-tive projects.

Educate corporate executives,shareholders, public officials and thegeneral public using media coverage,websites, publications, documentaryfilms and dialogue. We strive to fosterwidespread understanding of theintrinsic value of indigenous peoplesstewardship and the global signifi-cance of the Amazon rainforest. Bybuilding awareness and promotinggreen economic alternatives to thecurrent export-oriented fossil fuelbased development model, we arehelping to bring about a paradigm shiftwithin key institutions and society.

OUR STRATEGIES

Human Banner in Ecuador (Lou Dematteis / Spectral Q) Protest outside Oxy (Thomas Cavanagh / Amazon Watch) Kevin Koenig and Achuar Leader in Houston (Amazon Watch)

2008 was a landmark year for the campaign to hold Chevron

accountable for the environmental disaster caused by Texaco

(now Chevron) in the Ecuadorian Amazon. During three decades

of drilling, Texaco dumped over 18 billion gallons of toxic waste-

water into rivers and streams, and abandoned 916 open-air waste

pits. In support of the class action lawsuit against Chevron, now in

its final stretch, Amazon Watch intensified a public pressure cam-

paign urging the company to clean up its toxic pollution and com-

pensate the roughly 30,000 residents of the area for the epidemic

of cancer and other health problems they continue to suffer.

Developments in the lawsuit against Chevron came to a head

when a court-appointed expert determined that Chevron was

liable for up to $27 billion in damages. Through media outreach

and direct communication, Amazon Watch alerted Chevron share-

holders to the company’s efforts to conceal this liability, which had

also been illegally omitted from its SEC filings. Throughout the

year, we worked with major institutional shareholders to bring

attention to Chevron’s tarnished record on environmental and

human rights abuses. The Clean Up Ecuador Campaign received

high-profile recognition winning first place in Business Ethics

Network’s annual BENNY awards.

THE CLEAN UP

ECUADOR

CAMPAIGN

Pablo Fajardo and leaders of the Frente de Defensa marching in Lago Agrio, Ecuador (Courtesy of the Goldman Environmental Prize)

January

Berkeley City Council votes to boy-cott Chevron products and services.The authority adopts aresolution mandating that it "ceaseall purchases from Chevron" as aresult of the corporation's record ofecological destruction and involve-ment in human rights abuses inAngola, Burma, Ecuador and Nigeria,as well as the San Francisco BayArea, where Chevron operates arefinery widely suspected of causingcancers and other health problemsamong local residents.

April

In Ecuador, court-appointed expertRichard Cabrera recommends to thejudge that Chevron pay up to $16.3billion in damages, for environmentalremediation, compensation for cancerdeaths, and an “unjust enrichment”penalty for the money Texaco saved bydeliberately using inadequate environ-mental practices. The assessment isbased on three years of scientific datacollection, which reveal massive levelsof soil and water contamination.

Nominated by Amazon Watch, PabloFajardo, the lead Ecuadorian lawyerfor the communities suing Chevron,and Luis Yanza, founder of the AmazonDefense Coalition in Ecuador, are hon-ored with the Goldman EnvironmentalPrize, the world’s most prestigiousenvironmental award. Chevronattempts to defame Luis and Pablotaking out full-page ads in the SanFrancisco Chronicle resulting in amainstream media flurry that furtherdamages Chevron’s reputation.

May

Amazon Watch again has a powerfulpresence at Chevron’s annual share-holder meeting at its headquarters inSan Ramon, California. ThreeEcuadorians from the affected commu-nities travel to participate in con-fronting CEO David O’Reilly face toface about Chevron’s deadly legacy.Amazon Watch helps promote ashareholder resolution filed by the

New York City and New York Statepension funds, two of the nation’slargest, calling on Chevron to assessthe adequacy of compliance with host

country laws to protect human healthand the environment. A “Clean UpChevron” demonstration outside themeeting, attended by over 100activists in hazmat suits, draws signifi-

PROGRAM HIGHLIGHTS

(Mitch Anderson / Amazon Watch)

Luis Yanza and Emergildo Criollo at the Chevron Annual General Meeting (Thomas Cavanagh / Amazon Watch)

Goldman Prize Winners, Attorney Pablo Fajardo and Lead Organizer LuisYanza (Mitch Anderson / Amazon Watch)

cant media attention to growing public

outrage at the company’s actions.

June

The San Francisco Board of

Supervisors votes to condemn

Chevron for “a systemic pattern of

socially irresponsible activities and

complicity in human rights violations.”

Amazon Watch’s efforts to bring the

Ecuador controversy directly to

Chevron’s doorstep has visible results

in the Bay Area.

October

The Clean Up Ecuador Campaignwins first place in the Business EthicsNetwork’s annual BENNY awards, for“outstanding achievement in advanc-ing corporate ethics.”

November

Amazon Watch participates in a dele-gation to the affected region inEcuador, which includes U.S.Representative Jim McGovern (D-MA),chair of the House Human RightsCaucus. McGovern, upon seeing first-

hand the devastation caused byTexaco, writes a letter to President-elect Barack Obama urging him tooffer the support of the U.S. govern-ment to improving conditions for thoseliving in the polluted area.

Court-appointed expert RichardCabrera increases his assessment ofChevron’s liability to $27 billion, inlight of findings that he had dramati-cally underestimated the likely numberof cancer deaths (now estimated at1401) attributable to oil contamina-tion. The New York Post runs a story.

Lou

Dem

atte

is

Flares in Ecuadorian Amazon (Mitch Anderson / Amazon Watch)

Amazon Watch continues to promote an alternative vision of

sustainable development in the well-conserved rainforests of

Ecuador, a country whose economy is highly dependent on oil

exports. Having supported local communities in halting

destructive drilling plans in the southern Ecuadorian Amazon

by Burlington Resources and ConocoPhillips, Amazon Watch

continued to work to ensure that ecologically and culturally

sensitive areas remain “no-go zones” to the oil industry in the

future.

In 2008, Amazon Watch continued to play an important role

supporting the Government of Ecuador in its pioneer proposal

to protect world-renowned Yasuni National Park by not allow-

ing extraction of Ecuador’s largest undeveloped oil reserved,

the Ishpingo-Tambococha-Tiputini (ITT) oil block. The 2.5 mil-

lion-acre Yasuni Park, one of the world’s greatest biodiversity

hotspots, is the home to the Huaorani people and two indige-

nous groups in voluntary isolation.

PROTECTING

ECUADOR’S

REMAINING

RAINFORESTS

Achuar Leader in Ecuador (Antoine Bonsorte)

May

Amazon Watch joins forces withsocially responsible investor col-leagues Lily La Torre of Racimos deUngurahui and Navajo activists fromNew Mexico. Together, they meet withConocoPhillips senior managementduring their annual meeting inHouston, demanding that the companyadopt a policy requiring free, prior andinformed consent—with a focus onoperations in Peru and Ecuador. Interms of its Ecuador holdings, thecompany confirms that it has attempt-ed to sell its Block 24 concession and50 percent share in Block 23 withoutsuccess—an indication that the compa-ny intends to leave Ecuador perma-nently.

June

The German parliament unanimouslyapproves a resolution backing theYasuni-ITT initiative and commits thegovernment and Chancellor AngelaMerkel to financially and politically sup-porting the proposal, as well as pro-moting it among European Unioncountries and the Club of Paris. At therequest of Germany’s Parliament,President Correa extends the deadlinefor securing funds until December, andall signs point to another extension ifconcrete financial advances can beshown.

July

On July 22 in the coastal city ofGuayaquil, Amazon Watch, along withthe national Ecuador campaignAmazonía por la Vida and the

Fundación Pachamama, participatesjointly with the Minister of ForeignAffairs, the Ministry of Energy andMines, and other government officialsin making the first financial contribu-tions to the Yasuni-ITT initiative.

September

Ecuadorian voters approve a ground-breaking new national constitution, thefirst in the world to grant specificrecognition to the “Rights of Nature.”

In essence, the constitution providesexplicit legal protection for the exis-tence of nature and for all of its lifecycle functions, including regenerationand evolution. Legal claims can bebrought by any individual to stop adamaging activity and restore anecosystem to its original state. Article409 of the new constitution now theo-retically bans resource extraction innational parks and areas declared“áreas intangibles,” or no-go zones.

Also in September, Brazilian oil giantPetrobras announces its departurefrom controversial oil Block 31 withinYasuni National Park. This victory forthe campaign to protect Yasuni fromoil drilling follows intense criticism ofPetrobras’s drilling plans from AmazonWatch and an international network ofally organizations. Amazon Watch pro-vides support for an indigenous mobi-lization of local Huaorani people whotraveled to Quito in protest.

December

Amazon Watch participates in a highlevel strategy meeting with theEcuadorian President’s team and lead-ing environmental experts inWashington, DC to develop and pro-mote the Yasuni-ITT initiative.Following the meeting, the governmentteam begins a tour of the EU to seekgreater support for the proposal.

PROGRAM HIGHLIGHTS

During the year, the Yasuni-ITT proposal acquired major

political support within Ecuador and abroad, particularly

from the governments of Spain, Norway, Italy and

Germany. Amazon Watch was instrumental in safeguard-

ing the proposal’s integrity from co-option by private oil

companies, pushing for a diverse range of funding

sources beyond the sale of carbon credits, and seeking to

obtain greater engagement and participation by

Ecuadorian civil society in the proposal, especially the

national indigenous organizations.

(Antoine Bonsorte)

With 74 percent of the Peruvian Amazon

now zoned for oil and gas extraction,

Amazon Watch worked with our indige-

nous partners to curtail industry’s expan-

sion and instead advance indigenous

peoples’ vision for an alternative devel-

opment path that does not destroy

nature or culture. Amazon Watch

worked with the Achuar and other

indigenous groups to protect nearly 20

million acres of well-conserved primary

rainforest. We supported indigenous

land claims and pressured and engaged

companies currently holding conces-

sions in the region, including Talisman,

Petrolifera, Amerada Hess, Ramshorn,

Hunt Oil and ConocoPhillips, to respect

the rights of indigenous peoples to free,

prior and informed consent over any

activities affecting their territories and

livelihood.

In Northern Peru, Amazon Watch contin-

ued support for the Achuar people as

they sought justice for past harm to their

health and environment. During its 30

years operating in the Corrientes River

basin, Occidental Petroleum (Oxy)

dumped over 9 billion barrels of toxic

production waters directly into the rain-

forest. Oxy sold the operation to

Argentine company Pluspetrol in 2000.

In 2008, Amazon Watch joined as a

plaintiff in a U.S. lawsuit filed by

EarthRights International against Oxy for

its pollution of Achuar communities in oil

Block 1AB. Although the court ruled

that the U.S. is an “inconvenient forum”

for the lawsuit, the legal team appealed

the decision while preparing to file the

lawsuit in Peru.

NORTHERN

PERU

PROGRAM

Northern Peruvian Amazon (Nathalie Weemaels)

April

The campaign to hold Oxy responsiblefor polluting the Achuar territory isdealt a setback when a federal judgein Los Angeles rules that the caseshould be heard in Peru. The plaintiffs,including Amazon Watch and theAchuar, publicly vow to continue pur-suing all legal means of redress,including appealing the decision in theU.S. and bringing the case to PeruThe Los Angeles Times issues a favor-able editorial.

Amazon Watch leads its first advocacymission to Calgary, the heart ofCanada’s oil industry, bringing twoAchuar representatives from Peru toconfront the latest companies active intheir territory: Talisman Energy andPetrolífera. Following a meeting withTalisman’s CEO John Manzoni andother executives, Talisman publiclycommits in front of the company’sshareholders to operate only where itobtains community consent.

May

Amazon Watch attends Oxy’s annualmeeting at its Los Angeles headquar-ters, accompanied by Achuar leadersfrom Peru. Several days before, a largedemonstration at Oxy headquarters,attended by Daryl Hannah and StuartTownsend, garners strong mediaattention. At the shareholder meeting,Achuar leaders confront senior man-agement and call for Oxy to takeresponsibility for its legacy of contami-nation. This results in major press cov-erage.

Amazon Watch meets withConocoPhillips senior management at

their annual meeting in Houstondemanding that the company adopt apolicy requiring free, prior andinformed consent. We continue tomonitor Conoco’s exploration anddrilling plans in its 10 million acre“mega-block” of adjacent oil conces-sions in northern Peru, an area whichoverlaps ecological reserves, titledindigenous lands, and the territory ofindigenous peoples living in voluntaryisolation.

August

Amazon Watch joins a fact-finding andpartnership building delegation to visitthe remote Corrientes River region toengage Achuar communities, evaluatecapacity-building needs and monitoractive oil concessions. Amazon Watchverifies that Argentinian companyPlusPetrol is abiding by the terms ofan earlier agreement with the Achuarand the Peruvian government to re-inject the toxic waters that are a by-

product of oil drilling. However, ananalysis later conducted by AmazonWatch partner E-Tech Internationalconcludes that remediation of toxicwaste pits in the area was insufficient.

November

Amazon Watch calls on TalismanEnergy to suspend its operations inthe Pastaza River basin due to con-cerns that that the company has not

obtained free, prior and informed con-sent for oil exploration from the com-munities in Peru’s oil Block 64. 34communities in this Achuar, Shuar andShapra territory declare their intent toprevent Talisman from starting work inthe area. Amazon Watch maintains adialogue with the company about theadequacy of its consultation process.The controversy receives favorablecoverage in Canadian press.

PROGRAM HIGHLIGHTS

Henderson Rengifo, Achuar Leader, and Daryl Hannah speak at a rally outside the Oxy Annual Meeting in Los Angeles (Thomas Cavanagh / Amazon Watch)

On a national level, as part of our efforts

to fight hydrocarbon expansion in the

face of the Peruvian government’s disre-

gard for indigenous rights, Amazon

Watch stepped up our capacity building

work to provide tools and resources for

our partners to leverage political pressure

both in Peru and abroad. Specialized

trainings, targeted funding and sharp-

ened communications skills have enabled

groups in Peru to more effectively com-

municate directly with national and inter-

national decision makers.

In Southern Peru, Amazon Watch con-

tinued to monitor the Camisea natural

gas project. Located in the remote

Lower Urubamba Basin in the south-

eastern Peruvian Amazon, the project

includes two pipelines to the Peruvian

coast, cutting through an Amazon biodi-

versity hotspot described by scientists

as “the last place on earth” to drill for

fossil fuels. Through extremely poor envi-

ronmental oversight, the project has

been plagued by repeated spills and has

harmed the local Machiguenga, Nanti,

Nahua and Yine peoples while bringing

little economic benefits to the communi-

ties. Following the Inter-American

Development Bank’s unfortunate deci-

sion to approve funding for Camisea

Phase II in January 2008, Amazon

Watch supported local partners in moni-

toring and documenting the project’s

impacts on local communities and bring-

ing their concerns to key international

financial institutions. Moreover, we con-

tinued to call for a halt to oil drilling in

territories of isolated indigenous peoples

within the Kugapakori Nahua Reserve.

INDIGENOUS

CAPACITY

BUILDING

AND

SOUTHERN PERU

Achuar Leaders and Amazon Watch staff strategize during a workshop in the Peruvian Amazon (Amazon Watch)

January

Amazon Watch encounters a majorsetback when the Inter-AmericanDevelopment Bank (IDB) loan pack-age for Camisea II is approved. Thisloan approval again clearly indicatesthe lack of accountability within theIDB and its lack of respect for its ownsocial and environmental safeguardpolicies.

Amazon Watch and EnvironmentalDefense jointly fund an Analysis ofthe Peru LNG Project by a HarvardUniversity professor. This economicanalysis argues that exporting Peru’snatural gas reserves, as to be carriedout in Camisea II, would be economi-cally detrimental to Peru in the longterm.

April

Amazon Watch brings its message toMiami for the annual meeting of the

Inter-American Development Bank(IDB), one of the principal financiersof destructive large-scale “develop-ment” projects in the Amazon. Wecoordinate the publication of an “IDBWatch” publication by civil societygroups, which provides a critical lookat IDB policy and investments, includ-ing the Camisea project. We alsofacilitate a delegation of Peruvianleaders from partner groupsAsociación Labor and Derechos,Ambiente y Recursos Naturales(DAR) to attend meetings with seniormanagement and board members ofthe Bank.

June

Amazon Watch participates in the sec-ond year of Escuela Senen Soi, atraining program by and for indigenousleaders of the Peruvian Amazon tobuild leadership in defense of theirhuman rights and environment. Twostaff members travel to Pucallpa, Peruto teach a curriculum focused onstrategic communication includingspokesperson training and media out-reach. Some 35 indigenous partici-pants attend from across the PeruvianAmazon.

October

In early October, our Environmentaland Human Rights Campaigner par-ticipates in a fact-finding and capaci-ty building mission with OxfamAmerica to visit the Machiguengacommunities of the lower UrubambaRiver region including Timpia,Camisea, Segakiato, Cashiriari andKirigueti. While in the region, we alsoparticipate in the congress of theMachiguenga federation, COMARU,

and deliver a video camera and train-ing to its communications team.

November

In November, we set in motion aprocess to have DAR, a local partnerorganization, investigate the social andenvironmental impacts of Camisea andto file a complaint through theInternational Finance Corporation’sinternal ombudsman’s office in 2009.

December

Throughout the year, Amazon Watchprovides continued support toAIDESEP, the National Organization ofthe Amazon Indigenous People ofPeru, in their efforts to protect theKugapakori-Nahua Reserve for isolat-ed indigenous peoples affected by theCamisea project. In December, aftertraveling to Washington, D.C. to pres-ent arguments at a hearing of theInter-American Commission on HumanRights, AIDESEP presents a formalrequest for precautionary measureswith the Commission.

PROGRAM HIGHLIGHTS

Camisea fact-finding mission along the Urubamba Riverin Peru (Andrew Miller / Amazon Watch)

Amazon Watch launches IDB WATCH

In 2008, Amazon Watch strengthened

our collaboration with the leadership of

Colombia’s U’wa indigenous people as

we jointly responded to the renewed

threat of hydrocarbons projects within

their cloud forest homelands.

Ecopetrol, the Colombian state oil

company, moved quickly to construct a

gas production plant in Gibraltar, within

the U’wa’s ancestral territory and pre-

sented its plans to explore for oil in the

heart of the U’wa’s legal reserve.

Ecopetrol’s activities have coincided

with increased militarization and pres-

ence of guerrilla groups in the U’wa

region. During 2008, the number of

incidents of human rights abuses

increased, including several killings of

innocent community members by

armed groups.

Amazon Watch continued to spearhead

an international campaign to halt oil and

gas operations on U’wa land and pres-

sured the Colombian government to

demilitarize the area. In 2008, Amazon

Watch staff visited Colombia several

times to strategize with the U’wa lead-

ership. We worked closely with the

U’wa to support their grassroots activi-

ties, including a mobilization of hun-

dreds of community members in oppo-

sition to Ecopetrol’s activities. We alert-

ed the international financial community

to the human and environmental costs

of Ecopetrol’s projects as the company

looked to raise capital on Wall Street. In

addition, we helped connect the U’wa

to international supporters and political

leaders during a tour to New York City

and Washington, D.C.

U’WA

DEFENSE

PROJECT

U'wa Leader at River Crossing (Proyecto Mujer U’wa)

February

Two Amazon Watch staff make anemergency field visit to Bogotá, meet-ing face-to-face with U’wa leadersabout their security situation, due toreports of increased armed presencestarting in December of 2007. AmazonWatch facilitates a larger coordinationmeeting between the U’wa andBogotá-based organizations involvedin the campaign.

March/April

Amazon Watch provides small grantsto support both visits by U’waAssociation (ASOUWA) leaders toU’wa communities and the mass U’wapresence at the Permanent PeoplesTribunal’s regional hearing inSaravena.

June

Amazon Watch coordinates an openletter to Colombian President AlvaroUribe, calling for the demilitarization of

both Colombian military forces andillegal armed groups from U’wa territo-ry. 42 Colombian groups, 70 interna-tional organizations from 27 countries,and dozens of individuals sign ontothe letter. In conjunction, we launch anon-line action, urging the public topressure the Colombian Ambassadorto the U.S., Caroline Barco, in supportof the U’wa's call for de-militarizationof their territories.

September

As Ecopetrol prepares to sell shareson the New York Stock Exchange,Amazon Watch targets JPMorganChase, the underwriting bank. AmazonWatch engages the bank in dialoguesabout the human and environmentalcosts of Ecopetrol’s projects on U’waland, as well as the financial and repu-tational risks for JPMorgan Chase.

October

Over 1,000 U’wa peacefully occupyEcopetrol’s Gibraltar oil platform,

which is located within their ancestralterritory against firm and reiteratedU’wa opposition. Amazon Watch pro-vides media support in the form of dis-tributing an English press release andfacilitating connection between U’waleaders and Bogotá-based journalists.

November

Amazon Watch brings U’wa indige-nous leaders to the U.S. for a two-week delegation In New York, theymeet with a dozen financial analystsand representatives of institutionalinvestors, urging them not to buyshares of Ecopetrol. In Washington,DC, the U’wa delegation raises itscase with congressional leaders,including Representative JimMcGovern, and the Inter-AmericanCommission on Human RightsAmazon Watch launches an on-lineurgent action, building public pressurefor JPMorgan Chase to terminate itsfinancial support for Ecopetrol.

PROGRAM HIGHLIGHTS

Sirakubo Tegria, U'wa President (Atossa Soltani / Amazon Watch) Girl in the U'wa territory photographed by the late Terence Freitas, founder ofthe U'wa Defense Project

Climate Change

Deforestation, especially of tropical forest, accounts forapproximately 17 percent of total greenhouse gas emis-sions, contributing significantly to climate change and cre-ating a positive feedback loop that threatens the survivalof the Amazon rainforest and life on our increasingly frag-ile planet.

Given that indigenous peoples own three times more forestthan national governments, the emerging discussion onReducing Emissions from Deforestation and Degradation(REDD), as well as the inclusion of forest-based climate mit-igation in the carbon markets, is of great concern to them.

In the Amazon and elsewhere, many indigenous communi-ties lack official legal title to their ancestral territories. Thus,there is a great risk that their rights and access to forestterritories could be adversely affected by REDD as a mar-ket based emissions reduction mechanism, with grave cul-tural and social repercussions.

In 2008, Amazon Watch staff participated in various strate-gy discussions on the topic of REDD with our indigenousand NGO allies. We focused on identifying strategies toengage around REDD in the series of international climatemeetings throughout 2009 leading up to the UN Frameworkon Climate Change COP-15 meeting in Copenhagen.Amazon Watch is uniquely positioned to help indigenousorganizations in the Amazon Basin understand the implica-tions of REDD and engage in the global climate debate.

IIRSA

The Initiative for Integration of Regional Infrastructure inSouth America (IIRSA), a pan-regional development blue-print of over 500 infrastructure projects, will bring majorecological and social devastation to the Amazon throughextensive alterations to landscapes and livelihoods in theregion. IIRSA’s development framework views mountains,forests, and wetlands as barriers to economic growth toconquer while rivers are seen as the means for extractingnatural resources and the generation of hydroelectricity.Amazonian indigenous peoples and traditional communities,whose lands lay in the path of these “development” proj-ects, will be deeply and irreversibly affected, yet their per-spectives are rarely if ever considered relevant to projectplanning, approval, and financing. Among the most contro-versial of IIRSA’s projects is the Madeira River Complex,the cornerstone of IIRSA’s Brazil-Bolivia-Peru developmenthub, that seeks to turn the principal tributary to the Amazonriver into a major corridor for energy production and rawmaterial export.

Amazon Watch continued to expand its work on IIRSA in2008 confronting officials from the Inter-AmericanDevelopment Bank once again at its annual meeting inMiami about their funding for IIRSA projects. We identifiedadditional financial leverage points, namely Brazil’s NationalDevelopment Bank and the Andean DevelopmentCorporation. Amazon Watch hired a dedicated Brazil IIRSAcampaigner as we sought to build a stronger network withallied civil society groups in Brazil and beyond.

CLIMATE CHANGE, IIRSA

The Ecuadorian Amazon (Lou Dematteis)Rapids on the Madeira river (Glenn Switkes)

Organizations & Businesses

7%

Individual Donors

17%

Funds for Partner Groups9% Foundation Grants

Temporarily Restricted20%

Foundation Grants47%

Investment and Other Income

>1%

Management6%

Grants to Amazonian

Groups10%

Programs and Campaigns70%

Fund Development14%

Statement of Financial Activity

January 1 to December 31 2008 2007

INCOMEFoundation Grants 460,436 252,328 Foundation Grants Temporarily Restricted 195,676 201,352

Funds for Partner Groups 91,614 111,005 Individual Donors 162,712 175,281 Organizations & Businesses 73,540 53,560 Investment & Other Income 709 27,165

TOTAL INCOME 984,687 820,691

EXPENSESPrograms and Campaigns 661,252 570,584 Grants to Amazonian Groups 97,501 136,097 Total Program Services 758,753 706,681

Management 58,851 53,551 Fund Development 127,648 116,527

TOTAL EXPENSES 945,252 876,759

Net Income 39,435 (55,765)

Net Assets on January 1 418,644 474,409

Net Assets on December 31 458,079 418,644

Net Assets on Dec 31 IncludeCash Assets 181,040 189,164 Short-term Investments 61,375 30,405 Prepaid Rent 7,452 7,452 Grants Receivable 195,676 161,200 Net Equipment Assets 6,556 8,400 Other: Stock Donations 12,192 24,229 Less: Accounts Payable (6,212) (2,206)

TOTAL NET ASSETS 458,079 418,644

AMAZON WATCH FINANCIAL REPORT

INCOME 2008

EXPENSES 2008

Note: This report is based on the 2007 and 2008 audited financial statements.

Amazon WatchStaffAtossa Soltani Founder and ExecutiveDirector

Paul Paz y Miño Managing Director

Thomas Cavanagh Technical and FinancialManager

Cyndie Berg Development Director

Simeon Tegel* CommunicationsDirector

Kevin Koenig Northern AmazonProgram Coordinator

Mitchell Anderson Corporate AccountabilityCampaigner

Maria Lya Ramos* Southern AmazonProgram Coordinator

Gregor MacLennan Southern AmazonProgram Coordinator

Andrew Miller Environmental andHuman RightsCampaigner

Christian PoirierBrazil ProgramCoordinator

Elisa Bravo Research, Finance andDevelopment Associate

Daniel HerrigesProgram Assistant

Board ofDirectorsAndrew Beath Treasurer

Dee Dominguez*

Jonathan Frieman

Ken Larson President

Lily la Torre

Daniela Meltzer Chair

Jeff Mendelsohn

Jonas Minton

Ana Maria Murillo

Leila Salazar-Lopez

Atossa Soltani Secretary

Richard Wegman

AmbassadorsAntoine Bonsorte

Benjamin Bratt

Cary Elwes

Daryl Hannah

Bianca Jagger

Q’orianka Kilcher Youth Ambassador

John Quigley

Zoe Tryon

ExecutiveDirector'sLeadershipCouncilMegan Wiese Chair

Suzanne West

Contract Staff and Consultants

Melissa Adams

Celia Alario

Deborah Bassett

Bart Beeson

Greg Bernstein

Moira Birss

Ouida Chichester

Design Action

E TechInternational

Susan E.Goranson, CPA

Daniel Herriges

Marika Holmgren

Zachary Hurwitz

Kristen Irving

Ariel Lopez

David Matchett

Leslie Morava

Ana Maria Murillo

Joseph Mutti

John Parnell,WavebridgeCommunications

John Picone

Radical Designs

Aliya Ryan

Mark Stuver

Shannon Wright

Michael Zap

SPECIAL THANKS TO

Our Partners in the AmazonWe offer special thanks to all of our Amazonian partners whostand on the frontlines of this struggle for life, land and dignity.We are honored to stand with them.

Collaborators, Volunteers & Interns

Celia Alario

Janet Anderson

Karolo Aparicio

Zachary Boone

Martha MariaCarmona

Sue Chiang

Ouida Chichester

Jackie Coates

Damara Ganley

StephanieGonzales

Heidi Kreiss

Michael Kuehnert

Marianne Manilov

Allison McManis

Maury Mendenhall

Katherine Needles

Amelia Rudolph

Kristen Sague

Roel Seber

Ashkan Soltani

Roxana Soltani

Claudia Wheeler-Rappe

Rachel Whyte

Deborah Zierten

Acción Ecológica

AIDESEP

AsociacionIndígena deMorona

AsoU'wa

ATI

CEDIA

CENSAT AguaViva

COIAB

COICA

COMARU

Communidad deSarayaku

DerechosAmbiente yRecursos

FECONACO

FECONAU

FENAP

FICSHE

FIPSE

Frente de Defensade la Amazonia

Fundación Hemera

FundaciónPachamama

NAE

OilWatch

ONIC

ORACH

ORAU

Racimos deUngurahui

Red AmbientalLoretana

Selva Viva

Shinai

* Departed 2008

Jaguar$100,000 and Up

The Blue Moon Fund**

Charles Stewart MottFoundation**

Wallace Global Fund

Harpy Eagle$50,000 to $99,999

The Moriah Fund**

Rudolf Steiner Foundation

The Sigrid Rausing Trust

Anaconda$25,000 to $49,999

American Jewish WorldService**

Conservation, Food & HealthFoundation

John Dabrowski

Overbrook Foundation

Francis Tansley

Threshold Foundation

Pink River Dolphin$10,000 to $24,999

The Atticus Foundation

The BENNY Award /Corporate EthicsInternational

The Kindle Project

Michael Klein

Levi Strauss Foundation

The Network for Social Change

Spider Monkey$5,000 to $9,999

As You Sow

Raj and Helen Desai

The Olivia Companies

PS321 School

Rupp Foundation

Megan & Russell Wiese

Latin America Fund /Combined FederalCampaign

Kapok Tree$1,000 to $4,999

Amnesty International

Angelo, Gordon & Co

Bank Information Center

Jeffrey Goldberg/CaliBamboo

The Christensen Fund

Scott Fitzmorris

Forest Peoples Project

Heidi Gifford

Goldman EnvironmentalFoundation

Hesperian Foundation

Hull Family Foundation

Sarah Jaffe

Todd Laby

Ken Larson

Lowepro

The George and Judy MarcusFamily Foundation

John Anthony Martinez

Jonas M. Minton & JulieCarrasco Minton

Letitia & Milan Momirov

Daniel Nord

Jenny Overman

Pachamama Alliance

Lyon and Rob Petty FamilyFoundation

Rainforest Action Network

Bruce Robertson

Heather Rosmarin

Peter Rosmarin

Ray and Anna Sargoni

John Seed / EarthWaysFoundation

Zoe Tryon

Vitaquest

Frederick Welty

Charities Aid Foundation / ZoeTryon Walk

Tree Frog$500 - $999

Alan Hunt Badiner

Environmental Defense

Five Stones

Cherie Glasse

Daniel Greaney

Thomas Hall

Jacques Harari

Deborah Harmon

Michael Hirschhorn

Tamar Hurwitz

Terry Lynn Karl

Terry and Carolyn Koenig

Kohn, Swift & Graf

Carol A. Kurtz

Leeann Lahren

Daniela Meltzer

Radical Media

The Rockefeller Foundation

Jill Southard

Allan Spiwak

Wendy Volkmann

Nadine Weil

James Whitson

AMAZON WATCH SUPPORTERS IN 2008

Tomas Maynas and Youth Ambassador Q'orianka Kilcher speak outside the Oxy AGM (Thomas Cavanagh / Amazon Watch)

**Giving levels reflect multi-year grants

River Spirits$100 to $499

Stan Adler

Leilani Alo

Karolo Aparicio

Linda Assante

Assurat Health Foundation

Joseph E. Baker

Sheldon Baker

Ben S. Bayer

Michael A. Beer

Robbie Bent

Kenneth Bernstein

Steven Berse

Stephen Bickel

Phyllis Bieri

J. Billock

Colleen Bolton

Ben Bowman

Risa Boyer Leritz

David Brast

Eldy Bratt

Adam Browning

Michael Brune

Scott Bryan

Anthony Buscemi

Jesse Carmichael

Anna Carmichael

Troy Casey

Julie Casinelli

boona cheema

Steven Chow

Dana Clark

Christopher Clay

Molly Clinehens

Kevin Connelly

Allison Connor

Daniel Coughlin

David J. Crawford

Custom Direct

Tim Dale / Yoga Tree

Joanne Dale

Davis Family Trust

Mark Delavalle

Dolphin Foundation

Earth Rights International

Ana Eder

Robert Eisenbach

David Eliason

Melanie Engles

Emily and Peter Evers

Lawrence E. Fahn

Yael Falicov

Linda and John Finn

First Giving / Zoe Tryon WalkFund

James Eric Fisher

Lindsey Ford

S. David Freeman

Michael Freund

Josh Fryday

Marianne Gagen

Angie Garling

Al Gedicks

Camellia George

Global Exchange

Robert Goodland

Ryder Goodwin

Google

Gordon and Betty MooreFoundation

Nanci Graham

Sara Greenfield

Aurora Guerrero

Robert Guilbert

Rodrigo Guimaraes

Dan Bienenfeld / L.A. HealingArts Center

Jeffrey Hertz

Morgan Stanley Trade - DanielHolzer

Marika Holmgren

Jack Howell

I Do Foundation / Grelia andClark Smith

Aviva Imhof

International Rivers

Rosalind Jackson

Peter James

Donald Kagan

Cindy and Michael Kamm

Jennifer Kim

Tracy King

Sarosh Kumana

Deborah Kushner

Maureen Langloss

Ralph & Sandy Larson

Leslie Leslie

Lorna Li

Mary J. Marcus

Matthew May/May Realty

Jeff Mendelsohn

Bruce Michael

Jamie Myers

Martha Nicholson

James Nunemacher

James O'Dea

Gigi Obrecht

Lucky Otting

Patagonia

Perforce Foundation

Diane Perry

Elaine Phillips

Project Bandaloop

Tao Radoczy

Mark Randazzo

American EndowmentFoundation / ResonateFoundation

Jesus Rodriguez

Erin Rogers

Barbara Rogoff

Lorraine Rominger

Laurie Rosmarin

Laurie Rowley

Jenny Rudolph

Amelia Rudolph

Matthew Rudolph

Leila Salazar

Antonia Scott Day

Abby Sher

Richard Silver

Kristin Spychalsky

Robert Stack

Marie-Elisabeth Steindamm

Jan Stensland

Daniel Susott

Tellus Construction

Robert Tindall

Karen Topakian

Jeanne Trombly

Thomas Van Dyck

Fred Vasquez

Maria Verdesoto

Violeta Villacorta

Anna S. Wagner

Scott D. Walker

Paige Weber

Dewey Webster

S. & K. Weinstein Family Fund

Weitz Brothers

Michelle C. Wells

Barbara Williams

Jan Williamson

Gina Zappia

Brooke Zobrist

SUPPORTERS (CONTINUED)

And a very special thanks to our hundreds of grassroots supporters whose contributions help make our critical work possible.

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SUPPORTING INDIGENOUS PEOPLESPROTECTING THE AMAZON RAINFOREST

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Back Cover (Antoine B

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atch)

MAIN OFFICE221 Pine Street, 4th FloorSan Francisco, CA 94104

Tel: 415-487-9600Fax: 415-487-9601

LOS ANGELES, CAP.O. Box 2421

Malibu, CA 90265Tel: 310-456-9158Fax: 310-456-0388

WASHINGTON, DC1350 Connecticut Ave., NW

Suite 1100Washington, DC 20010

Tel: 202-785-3962Fax: 202-355-7570

QUITO, ECUADORE-1270 y Portete

c/o Frente de Defensa de laAmazonia

Quito - EcuadorTel: (593-9) 79-49-041

SUPPORTING INDIGENOUS PEOPLESPROTECTING THE AMAZON RAINFOREST

www. amazonwa t ch . o r g