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Headquartered in Indonesia, Asia Pulp and Paper (APP) Group is one of the world's largest

Company assessment: APP (Asia Pulp and Paper Group) – July 2018

SPOTT assesses companies against over 100 indicators across ten categories. Click on the icons or bars below to expand each category for further details, scoring and links to reports and sources.

Assessment date:

Total: 69.4% 72.5 / 104.5
  • Sustainability policy and leadership Sustainability policy and leadership 6 / 6 100%
    • Companies should publish sustainability policies or similar covering their entire supply chain — including third party suppliers — implemented and enforced through high-level leadership that engages with wider industry schemes.

    • Yes
      1 / 1
      Source

      1. Sustainable forestry policy or commitment for all its operations?

    • Yes
      1 / 1
      Source

      2. Sustainability policy or commitment applies to direct and third-party suppliers?

      The commitments made in the company's Responsible and Sustainable Business Declaration are to be applied across the supply chain, including affiliates, contractors and suppliers

    • Yes
      1 / 1
      Source

      3. High-level position of responsibility for sustainability?

      Director of Sustainability and Stakeholder Engagement who reports directly to the CEO

    • Yes
      1 / 1
      Source

      4. Sustainability report published within last two years?

      2016

    • Yes
      1 / 1
      Source

      5. Member of multiple industry schemes or other external initiatives to improve forest management or transparency?

      GRI, TFT, TFA 2020, CDP, HCV Resource Network, HCS Approach, Natural Capital Coalition, Indonesia Global Compact Network

    • Yes
      1 / 1
      Source

      6. Activities with government, NGOs or academic institutions to improve the sustainability of forest products?

      Partnership with Habitat for Humanity and Indonesia Global Compact Network (IGCN) on water projects for communities; Wageningen University on Peatland Best Practice Management (PBPM); collaboration with South Sumatra's Government on reduction in forest fire risk, enables peat mapping and community development

  • Landbank, FMUs and mills Landbank, FMUs and mills 7 / 11 63.6%
    • Companies should publicly report figures on their total landbank and details of different areas under their management. They should also disclose maps of their forest management units and provide forest management plans, as well as details on supplier pulp and paper mills.

    • Yes
      1 / 1
      Source

      7. Lists countries and operations?

      Indonesia (pulp and paper mills, pulpwood suppliers)

    • n/a
      -
      No source

      8. Total area of natural forest designated for wood/wood fibre production (ha)?

      This indicator is disabled as the company does not produce wood/wood fibre from natural forests

    • Partial
      0.5 / 1
      Source

      9. Total area of forest plantation (ha)?

      2,587,220 - Figure indicates land managed by the company and independent suppliers in 2016. Total area of plantation managed solely by the company is difficult to calculate as it is unclear which concessions belong to the company and which to its suppliers

    • Partial
      0.5 / 1
      Source

      10. Area of plantation/natural forest within outgrower schemes (ha)?

      7,746 - The company reports that is has four community forest suppliers (outgrowers). However, information on the area of plantation within this scheme are spread across multiple sources

    • Partial
      0.5 / 1
      Source

      11. Unplanted (areas designated for future development as plantation forest) (ha)?

      1,322,830 - Figure is over two years old

    • Partial
      0.5 / 1
      Source

      12. Conservation set-aside and/or HCV area (ha)?

      361,000 - Figure is over two years old. The company refers to approximately 600,000 ha conservation areas elsewhere in its reporting

    • n/a
      -
      No source

      13. Area of Intact Forest Landscape (ha)?

      This indicator is disabled as the company has informed ZSL that it does not have Intact Forest Landscape within its landbank

    • Yes
      1 / 1
      Source

      14. Number of Forest Management Units (FMUs)?

      38 - The company owns 9 forest concessions and has 29 long-term independent suppliers

    • Yes
      1 / 1
      Source

      15. Maps of forest management units (FMUs)?

      Maps of concessions are available via the company's FCP monitoring site and WRI Global Forest Watch

    • No
      0 / 1
      Source

      16. Forest management plans available for all FMUs?

    • No
      0 / 1
      Source

      17. Monitoring of forest management plan implementation?

    • Yes
      1 / 1
      Source

      18. Number of company owned pulp and paper mills?

      9 - The company is also preparing to commission the OKI mill in South Sumatra

    • Yes
      1 / 1
      Source

      19. Maps or addresses of company owned pulp and paper mills?

    • n/a
      -
      No source

      20. Number of company owned sawmills?

      This indicator is disabled as the company has informed ZSL that it does not own sawmills

    • n/a
      -
      No source

      21. Maps or addresses of company owned sawmills?

      This indicator is disabled as the company has informed ZSL that it does not own sawmills

  • Deforestation and biodiversity Deforestation and biodiversity 10 / 13 76.9%
    • Companies should commit to address deforestation and to set aside areas for conservation. They should report on any activities to manage or restore habitat in their conservation areas, or monitor deforestation in their supply chains. They should also provide evidence of species conservation and biodiversity protection.

    • Yes
      1 / 1
      Source

      22. Commitment to zero conversion of natural forest?

      The company and its suppliers will only develop areas that are not forested, as identified through independent HCV and HCS assessments. This policy became effective on 1st February 2013

    • Yes
      1 / 1
      Source

      23. Zero conversion commitment applies to outgrower scheme and independent suppliers?

    • n/a
      -
      No source

      24. Commitment to minimise the impact of logging roads?

      This indicator is disabled as the company does not produce wood/wood fibre from natural forests

    • Yes
      1 / 1
      Source

      25. Commitment to protect forest areas from illegal activities?

    • Yes
      1 / 1
      Source

      26. Evidence of monitoring deforestation?

      The company is using the Forest Alert Service combined with field verification in all its suppliers' concessions

    • Partial
      0.5 / 1
      Source

      27. Amount of deforestation recorded?

      0.1% - Natural forest cover change in 2017. However, it is unclear if this figure covers the company's full operational area

    • Yes
      1 / 1
      Source

      28. Commitment to biodiversity conservation?

    • Yes
      1 / 1
      Source

      29. Commitment to set aside areas for conservation?

    • Yes
      1 / 1
      Source

      30. Examples of habitat management and/or habitat restoration of set-aside areas?

      Multiple habitat management projects have been initiated by the company

    • Yes
      1 / 1
      Source

      31. Implementing a landscape-level approach to biodiversity conservation?

      The company supports conservation projects across 10 landscapes in Indonesia

    • Partial
      0.5 / 1
      Source

      32. Commitment to protect species of conservation concern, referencing international or national system of species classification?

      Company does not reference an appropriate system of species classification in its commitment

    • n/a
      -
      No source

      33. Commitment to sustainably manage the use of non-timber forest products (NTFPs)?

      This indicator is disabled as the company does not produce wood/wood fibre from natural forests

    • No
      0 / 1
      Source

      34. Commitment not to use genetically modified organisms?

      The company allows the use of GMOs in some circumstances

    • No
      0 / 1
      No source

      35. Commitment to only use alien species where impacts can be controlled?

    • Yes
      1 / 1
      Source

      36. Examples of species conservation activities?

  • HCV, HCS and impact assessments HCV, HCS and impact assessments 7 / 9 77.8%
    • Companies should commit to the High Conservation Value (HCV) and High Carbon Stock (HCS) approaches, and to conduct social and environmental impact assessments (SEIA). They should develop and publish monitoring and management plans, and provide evidence through SEIA, HCV and HCS assessments, typically published in summary form due to the sensitive nature of certain sites.

    • Yes
      1 / 1
      Source

      37. Commitment to conduct High Conservation Value (HCV) assessments?

      The company will only develop areas that are not forested, as identified through independent HCV and HCS assessments

    • Yes
      1 / 1
      Source

      38. HCV commitment applies to outgrower scheme and independent suppliers?

    • No
      0 / 1
      No source

      39. Commitment to only use licensed High Conservation Value (HCV) assessors accredited by the HCV Resource Network's Assessor Licensing Scheme (ALS)?

    • Yes
      1 / 1
      Source

      40. High Conservation Value (HCV) assessments available?

      HCV assessments were completed at the end of 2014. All summary reports are available online via the company's FCP Dashboard

    • Yes
      1 / 1
      Source

      41. High Conservation Value (HCV) management and monitoring plans available?

    • Yes
      1 / 1
      Source

      42. Commitment to the High Carbon Stock (HCS) Approach?

    • Yes
      1 / 1
      Source

      43. High Carbon Stock (HCS) assessments available?

    • Yes
      1 / 1
      Source

      44. Commitment to conduct social and environmental impact assessments (SEIAs)?

    • No
      0 / 1
      No source

      45. Social and environmental impact assessments (SEIAs) available?

  • Soils, fire and GHG emissions Soils, fire and GHG emissions 10.5 / 13 80.8%
    • Companies should commit to protect peatland and undertake best management practices for soils and peat, as well as commit to reduced impact logging. They should also have policies on zero burning and to reduce their greenhouse gas (GHG) emissions. Companies should report their GHG emissions, as well as any fires that occurred in or around their estates, along with plans for managing and monitoring fires.

    • Partial
      0.5 / 1
      Source

      46. Commitment to best management practices for soils and/or peat?

      Commitment in place to develop a landscape approach for best practice peatland management. No commitment to the best practice management of soils could be identified

    • n/a
      -
      No source

      47. Commitment to reduced impact logging?

      This indicator is disabled as the company does not produce wood/wood fibre from natural forests

    • Yes
      1 / 1
      Source

      48. Commitment to no planting on peat of any depth?

    • Yes
      1 / 1
      Source

      49. Commitment on peatland planting applies to outgrower scheme and independent suppliers?

    • Partial
      0.5 / 1
      Source

      50. Landbank or planted area on peat (ha)?

      50% - The company provides an approximate figure of landbank on peat in supplier concessions

    • Partial
      0.5 / 1
      Source

      51. Evidence of best management practices for soils and/or peat?

      The company only provides evidence of best management practices for peat

    • Yes
      1 / 1
      Source

      52. Commitment to zero burning?

    • Yes
      1 / 1
      Source

      53. Commitment to zero burning applies to outgrower scheme and independent suppliers?

    • Yes
      1 / 1
      Source

      54. Evidence of management and monitoring fires?

      Remote sensing 'hot spot' data; ground patrols; helicopter support to on the ground firefighting; Forest Fire Prevention Alert Program; thermal camera detection; training

    • Yes
      1 / 1
      Source

      55. Details/number of hotspots/fires in FMUs controlled by the company?

      Provides daily fire updates in the provinces where APP's pulpwood suppliers operate: Riau, Jambi, South Sumatra, East Kalimantan and West Kalimantan. Information available in the form of interactive spatial map and summary

    • Yes
      1 / 1
      Source

      56. Time-bound commitment to reduce GHG emissions intensity?

      2020 (10%) - Minimum 10% reduction of carbon intensity (tCO2e/ton product) by 2020

    • Yes
      1 / 1
      Source

      57. Progress towards reducing GHG emission intensity?

      1.35 - The company reports a 2% decrease compared to 2012 (baseline year)

    • No
      0 / 1
      No source

      58. Report GHG emissions from land use change?

    • Yes
      1 / 1
      Source

      59. Methodology used to calculate GHG emissions?

      IPCC/WRI-WBCSD GHG Protocol

  • Water, chemical and waste management Water, chemical and waste management 5 / 12 41.7%
    • Companies should commit to managing water use and water quality, providing evidence through time-bound reduction plans, policies on toxic chemical use, waste management and treatment of wastewater and mill effluents.

    • Yes
      1 / 1
      Source

      60. Time-bound commitment to improve water quality?

      10% below national and/or regional limits for COD and BOD by 2020

    • Yes
      1 / 1
      Source

      61. Progress towards commitment on water quality?

      All mills achieved target of 10% below national and/or regional limit for COD and BOD in 2016

    • No
      0 / 1
      No source

      62. Protection of natural waterways through buffer zones?

    • Yes
      1 / 1
      Source

      63. Evidence of treatment of pulp and paper mill effluent?

      The company state that all waste water treated with 'high efficiency activated sludge and chemical processes'

    • n/a
      -
      No source

      64. Evidence of sawmill run-off containment and wastewater treatment?

      This indicator is disabled as the company has informed ZSL that it does not own sawmills

    • Yes
      1 / 1
      Source

      65. Time-bound commitment to improve water use?

      10% - Achieve 10% reduction of water intensity (m3/ton product) based on 2013 baseline by 2020

    • Yes
      1 / 1
      Source

      66. Progress towards commitment on water use?

      15% - Water intensity decrease in 2016 compared to 2013 (baseline year)

    • No
      0 / 1
      No source

      67. mmitment to eliminate chlorine and chlorine compounds for bleaching?

    • n/a
      -
      No source

      68. Evidence of minimising or recycling solid waste produced during sawmilling processes?

      This indicator is disabled as the company has informed ZSL that it does not own sawmills

    • No
      0 / 1
      No source

      69. Commitment to minimise the use of chemicals, including pesticides and chemical fertilisers?

    • No
      0 / 1
      Source

      70. No use of World Health Organisation (WHO) Class 1A and 1B pesticides?

    • No
      0 / 1
      Source

      71. No use of chemicals listed under the Stockholm Convention and Rotterdam Convention?

    • No
      0 / 1
      No source

      72. Integrated Pest Management (IPM) approach?

    • No
      0 / 1
      No source

      73. Chemical usage per ha or list of chemicals used?

  • Community, land and labour rights Community, land and labour rights 14.5 / 19.5 74.4%
    • Companies should commit to respect human rights, including those of indigenous peoples and local communities, consulted with free, prior and informed consent (FPIC). Companies should respect the rights of workers, report relevant workforce data, and comply with health and safety legislation.

    • Yes
      1 / 1
      Source

      74. Commitment to human rights, referencing the UN Declaration of Human Rights or UN Guiding Principles on Business and Human Rights?

      The company has committed to adopt the United Nations Human Rights Council "protect, respect and remedy" framework in assessing and addressing human rights policies throughout its operations

    • Yes
      1 / 1
      Source

      75. Commitment to human rights applies to outgrower scheme and independent suppliers?

    • Partial
      0.5 / 1
      Source

      76. Commitment to respect indigenous and local communities' rights?

      Commitment to respect the rights of indigenous peoples and local communities only extends to new plantings. No reference made to the UN Declaration on Rights of Indigenous Peoples or ILO Indigenous and Tribal Peoples Convention

    • Partial
      0.5 / 1
      Source

      77. Commitment to respect legal and customary property rights?

      The company's commitment to recognise customary land rights only extends to new plantings. No reference is made to legal rights

    • Yes
      1 / 1
      Source

      78. Commitment to free, prior and informed consent (FPIC)?

    • Yes
      1 / 1
      Source

      79. FPIC commitment applies to independent suppliers?

    • Yes
      1 / 1
      Source

      80. Details of free, prior and informed consent (FPIC) process available?

    • Yes
      1 / 1
      Source

      81. Details of process for addressing land conflicts available?

    • Partial
      0.5 / 1
      Source

      82. Commitment to mitigate impacts on food security?

      The company mitigates impacts on food security via its Integrated Forestry & Farming System (IFFS). However, no clear commitment to to ensure local food security or security of food prices could be identified

    • Yes
      1 / 1
      Source

      83. Commitment to provide essential community services and facilities?

    • Yes
      1 / 1
      Source

      84. Commitment to respect all workers' rights?

      The scope of the company's employee welfare policy is unclear - i.e. it does not specify that it applies to all forms of employee (e.g. temporary)

    • Partial
      0.5 / 1
      Source

      85. Reference to Fundamental ILO Conventions?

      No reference made to Equal Remuneration (No. 100)

    • Yes
      0.5 / 0.5
      Source

      86. Total number of employees?

      30,479 - Data as of 2016

    • Partial
      0.5 / 1
      Source

      87. Percentage or number of temporary employees?

      0.06% - Percentage of employees on short term contracts in 2015 (data is over two year old)

    • Yes
      1 / 1
      Source

      88. Percentage or number of women employees?

      3,515 (11.53%) - Data as of 2016

    • Partial
      0.5 / 1
      Source

      89. Commitment to pay minimum wage?

      Base pay for employees across all of the company's mills is at least equal to local minimum wage. Information is not provided on the wages paid to employees across other types of business operations

    • Partial
      0.5 / 1
      Source

      90. Commitment to address occupational health and safety, referencing the ILO Code of Practice on Safety and Health in Forestry Work?

      Does not reference ILO Code of Practice on Safety and Health in Forestry Work

    • Partial
      0.5 / 1
      Source

      91. Time lost due to work-based injuries?

      18 - Figure represents frequency rate of lost time accidents in 2016

    • Partial
      0.5 / 1
      Source

      92. Number of fatalities as a result of work-based accidents?

      3 - Figure only covers mill operations. Data for wider operations (e.g. plantation-level production) is not available

    • Partial
      0.5 / 1
      Source

      93. Provision of personal protective equipment and related training?

      The company mentions the provision of PPE and safety training, but falls short of a full commitment to provide these to all employees

  • Certification standards Certification standards 3 / 10 30%
    • Companies should be certified by credible certification standards, or have time-bound commitments to achieve 100% certification of both forest management units and outgrower schemes. They should also commit to only sourcing certified wood/wood fibre and ensuring that their supply is verified as being in legal compliance.

    • Yes
      1 / 1
      Source

      94. Percentage area (ha) verified as being in legal compliance by a third party?

      100% - SVLK

    • No
      0 / 1
      Source

      95. Percentage wood/wood fibre supply verified as being in legal compliance by a third party?

      All FMUs that supply pulpwood to APP (owned and independent) in Indonesia have achieved mandatory national forest certification under SVLK. However, the company reports that they source wood fibre from around the world (i.e. from areas where SVLK is not in operation). ZSL therefore cannot confirm the amount of wood fibre supply that is verified as being in legal compliance by a third party

    • No
      0 / 1
      Source

      96. Time-bound plan for achieving 100% FSC FM certification of FMUs?

      The FSC disassociated from the company in 2007 due to information that it was involved in destructive forestry practices. FSC are currently developing a Roadmap for addressing the company's non-compliance including compensating social and environmental legacy impacts and improving its forest management practices

    • No
      0 / 1
      No source

      97. Commitment to source only wood/wood fibre that meets FSC Controlled Wood requirements?

    • No
      0 / 2
      Source

      98. Percentage area (ha) FSC FM certified?

      The FSC disassociated from the company in 2007 due to information that it was involved in destructive forestry practices. FSC are currently developing a Roadmap for addressing the company's non-compliance including compensating social and environmental legacy impacts and improving its forest management practices

    • No
      0 / 2
      No source

      99. Percentage of wood/wood fibre supply from outgrower scheme and/or independent suppliers that is FSC FM certified?

    • Yes
      2 / 2
      Source

      100. Percentage area (ha) PEFC certified?

      86% - PEFC-endorsed Indonesian Forestry Certification Cooperation (IFCC) SFM scheme

  • Smallholders and suppliers Smallholders and suppliers 4 / 5 80%
    • Companies should report details of any programmes or schemes to support both schemed and independent smallholders, as well as criteria to assess suppliers on compliance with company policies, and in what cases suppliers should be suspended or excluded due to non-compliance.

    • Partial
      0.5 / 1
      Source

      101. Programme to support outgrower scheme smallholders?

      The company states to support community forests that are included in its supply chain since 2017. However, no details on the support is given. The company also provides financial and technical support, and facilitating access to markets to local communities through its Integrated Forestry & Farming System

    • Partial
      0.5 / 1
      Source

      102. Percentage of outgrower scheme smallholders involved in programme?

      The company included four community forests in its supply chain in 2017 and supported over 3000 households through the Integrated Forestry & Farming System, however it is unclear how many of these households are outgrowers

    • Yes
      1 / 1
      Source

      103. Process used to prioritise, assess and/or engage suppliers on compliance with company's policy and/or legal requirements?

    • Yes
      1 / 1
      Source

      104. Suspension or exclusion criteria for suppliers?

      Any existing or potential supplier to the company is required to meet the its Responsible Fibre Procurement and Processing Policy

    • Yes
      1 / 1
      Source

      105. Percentage of suppliers assessed and/or engaged on compliance with company requirements?

      100% - All of the company's suppliers in Indonesia are continually assessed by the scorecard developed by the company and all new or potential suppliers, regardless of location, are assessed by the Supplier Evaluation and Risk Assessment (SERA)

  • Governance and grievances Governance and grievances 5.5 / 6 91.7%
    • Companies should operate in an ethical manner at all levels, providing accessible channels and clear procedures for both employees and external stakeholders to raise any grievance or complaint with the company, as well as allowing for whistleblowing.

    • Yes
      1 / 1
      Source

      106. Commitment to ethical conduct and prohibition of corruption?

    • Partial
      0.5 / 1
      Source

      107. Whistleblowing procedure?

      The company has an ethical call centre and report form in place. No details are available on the whistleblowing process or how whistle-blowers are protected

    • Yes
      1 / 1
      Source

      108. Own grievance or complaints system?

    • Yes
      1 / 1
      Source

      109. Grievance or complaints system is accessible to internal and external stakeholders?

      An external grievance mechanism in place. This is focused only on the implementation of the company's Forest Conservation Policy

    • Yes
      2 / 2
      Source

      110. Details of grievances disclosed?

Media monitor: APP (Asia Pulp and Paper Group)

SPOTT gathers reports and stories from global media sources, covering specific company activities related to the assessment indicator categories. ZSL does not assess the validity of these reports.

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