- Rimbunan Hijau (RH) Group: 4.2%
- Vicwood Group: 7.2%
- Pallisco-CIFM: 49.1%
- Kayu Lapis Indonesia: 6.2%
- Bracell: 55%
- Precious Woods Holding AG: 73.5%
- APP China Group Ltd: 36.4%
- APP (Asia Pulp and Paper) Group: 69.4%
- Cameroon United Forests (CUF): 21.9%
- Oji Holdings: 28.9%
- SLJ Global Tbk: 17.6%
- Marubeni: 38%
- AMCEL: 21.4%
- Compagnie des Bois du Gabon (CBG): 56.1%
- Cikel Group: 19.1%
- YiHua Life: 7%
- Interholco AG: 93.4%
- Empresas CMPC: 41.8%
- Toba Pulp Lestari Tbk PT: 35.7%
- CENIBRA: 57.7%
- Veracel: 38.9%
- Société Industrielle de Mbang (SIM): 1.6%
- WTK Holdings Bhd: 8.4%
- Suzano Papel e Celulose SA: 64.3%
- APRIL Group: 67%
- Samling Group: 20.7%
- Arauco: 32.4%
- Greenheart Group Ltd: 21.9%
- Groupe Blattner Elwyn (timber): 9%
- Olam International Ltd (timber): 60.3%
- Corà Domenico & Figli: 12.1%
- Duratex SA: 59.8%
- TA ANN Holdings Bhd: 20%
- Tranchivoire: 7.9%
- Bumi Teknokultura Unggul Tbk (BTEK): 4.7%
- Eldorado Brasil Celulose SA: 51.7%
- Wijma: 15.7%
- Rougier Group: 48.7%
- Korindo (timber and pulp): 34.3%
- Maderera Bozovich: 22.8%
- Groupe SEFAC: 18%
- Shin Yang: 22.3%
- Barito Pacific: 5.1%
- Alpi: 9.2%
- Klabin SA: 69.8%
- SODEFOR: 13.3%
- Agra Bareksa: 0%
- Sumitomo Forestry Co Ltd: 39.3%
- Priceworth International: 7.4%
- Golden Pharos Bhd: 27%
APP (Asia Pulp and Paper) Group https://www.spott.org/timber-pulp/app-asia-pulp-and-paper-group/
Headquartered in Indonesia, Asia Pulp and Paper (APP) Group is one of the world's largest... Read more.
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Parent company:Sinar Mas Group
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Landbank (timber/pulp):2,587,220 hectares
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Thomson Reuters ticker:Private company
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Bloomberg ticker:Private company
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Activities:Pulpwood production, pulp and paper production
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Locations:Indonesia
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Headquarters:Indonesia
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Related companies:
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Parent website:
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Website:
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.
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Sustainability policy and leadership
6 / 6
100%
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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.
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1 / 1Source1. Sustainable forestry policy or commitment for all its operations?
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1 / 1Source
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
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1 / 1Source
3. High-level position of responsibility for sustainability?
Director of Sustainability and Stakeholder Engagement who reports directly to the CEO
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1 / 1Source
4. Sustainability report published within last two years?
2016
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1 / 1Source
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
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1 / 1Source
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
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Landbank, FMUs and mills
7 / 11
63.6%
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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.
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1 / 1Source
7. Lists countries and operations?
Indonesia (pulp and paper mills, pulpwood suppliers)
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-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
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0.5 / 1Source9. 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
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0.5 / 1Source
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
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0.5 / 1Source
11. Unplanted (areas designated for future development as plantation forest) (ha)?
1,322,830 - Figure is over two years old
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0.5 / 1Source
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
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-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
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1 / 1Source
14. Number of Forest Management Units (FMUs)?
38 - The company owns 9 forest concessions and has 29 long-term independent suppliers
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1 / 1Source
15. Maps of forest management units (FMUs)?
Maps of concessions are available via the company's FCP monitoring site and WRI Global Forest Watch
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0 / 1Source16. Forest management plans available for all FMUs?
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0 / 1Source
17. Monitoring of forest management plan implementation?
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1 / 1Source
18. Number of company owned pulp and paper mills?
9 - The company is also preparing to commission the OKI mill in South Sumatra
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1 / 1Source
19. Maps or addresses of company owned pulp and paper mills?
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-No source
20. Number of company owned sawmills?
This indicator is disabled as the company has informed ZSL that it does not own sawmills
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-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
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Deforestation and biodiversity
10 / 13
76.9%
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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.
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1 / 1Source
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
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1 / 1Source
23. Zero conversion commitment applies to outgrower scheme and independent suppliers?
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-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
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1 / 1Source
25. Commitment to protect forest areas from illegal activities?
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1 / 1Source
26. Evidence of monitoring deforestation?
The company is using the Forest Alert Service combined with field verification in all its suppliers' concessions
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0.5 / 1Source
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
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1 / 1Source
28. Commitment to biodiversity conservation?
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1 / 1Source
29. Commitment to set aside areas for conservation?
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1 / 1Source
30. Examples of habitat management and/or habitat restoration of set-aside areas?
Multiple habitat management projects have been initiated by the company
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1 / 1Source
31. Implementing a landscape-level approach to biodiversity conservation?
The company supports conservation projects across 10 landscapes in Indonesia
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0.5 / 1Source
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
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-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
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0 / 1Source
34. Commitment not to use genetically modified organisms?
The company allows the use of GMOs in some circumstances
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0 / 1No source
35. Commitment to only use alien species where impacts can be controlled?
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1 / 1Source
36. Examples of species conservation activities?
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HCV, HCS and impact assessments
7 / 9
77.8%
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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.
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1 / 1Source
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
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1 / 1Source
38. HCV commitment applies to outgrower scheme and independent suppliers?
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0 / 1No source
39. Commitment to only use licensed High Conservation Value (HCV) assessors accredited by the HCV Resource Network's Assessor Licensing Scheme (ALS)?
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1 / 1Source
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
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1 / 1Source
41. High Conservation Value (HCV) management and monitoring plans available?
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1 / 1Source
42. Commitment to the High Carbon Stock (HCS) Approach?
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1 / 1Source
43. High Carbon Stock (HCS) assessments available?
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1 / 1Source
44. Commitment to conduct social and environmental impact assessments (SEIAs)?
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0 / 1No source
45. Social and environmental impact assessments (SEIAs) available?
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Soils, fire and GHG emissions
10.5 / 13
80.8%
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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.
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0.5 / 1Source
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
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-No source
47. Commitment to reduced impact logging?
This indicator is disabled as the company does not produce wood/wood fibre from natural forests
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1 / 1Source
48. Commitment to no planting on peat of any depth?
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1 / 1Source
49. Commitment on peatland planting applies to outgrower scheme and independent suppliers?
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0.5 / 1Source
50. Landbank or planted area on peat (ha)?
50% - The company provides an approximate figure of landbank on peat in supplier concessions
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0.5 / 1Source
51. Evidence of best management practices for soils and/or peat?
The company only provides evidence of best management practices for peat
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1 / 1Source
52. Commitment to zero burning?
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1 / 1Source
53. Commitment to zero burning applies to outgrower scheme and independent suppliers?
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1 / 1Source
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
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1 / 1Source
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
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1 / 1Source
56. Time-bound commitment to reduce GHG emissions intensity?
2020 (10%) - Minimum 10% reduction of carbon intensity (tCO2e/ton product) by 2020
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1 / 1Source
57. Progress towards reducing GHG emission intensity?
1.35 - The company reports a 2% decrease compared to 2012 (baseline year)
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0 / 1No source
58. Report GHG emissions from land use change?
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1 / 1Source
59. Methodology used to calculate GHG emissions?
IPCC/WRI-WBCSD GHG Protocol
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Water, chemical and waste management
5 / 12
41.7%
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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.
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1 / 1Source
60. Time-bound commitment to improve water quality?
10% below national and/or regional limits for COD and BOD by 2020
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1 / 1Source
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
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0 / 1No source
62. Protection of natural waterways through buffer zones?
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1 / 1Source
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'
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-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
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1 / 1Source
65. Time-bound commitment to improve water use?
10% - Achieve 10% reduction of water intensity (m3/ton product) based on 2013 baseline by 2020
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1 / 1Source
66. Progress towards commitment on water use?
15% - Water intensity decrease in 2016 compared to 2013 (baseline year)
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0 / 1No source
67. mmitment to eliminate chlorine and chlorine compounds for bleaching?
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-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
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0 / 1No source
69. Commitment to minimise the use of chemicals, including pesticides and chemical fertilisers?
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0 / 1Source
70. No use of World Health Organisation (WHO) Class 1A and 1B pesticides?
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0 / 1Source
71. No use of chemicals listed under the Stockholm Convention and Rotterdam Convention?
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0 / 1No source
72. Integrated Pest Management (IPM) approach?
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0 / 1No source
73. Chemical usage per ha or list of chemicals used?
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Community, land and labour rights
14.5 / 19.5
74.4%
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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.
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1 / 1Source
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
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1 / 1Source
75. Commitment to human rights applies to outgrower scheme and independent suppliers?
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0.5 / 1Source
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
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0.5 / 1Source
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
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1 / 1Source
78. Commitment to free, prior and informed consent (FPIC)?
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1 / 1Source
79. FPIC commitment applies to independent suppliers?
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1 / 1Source
80. Details of free, prior and informed consent (FPIC) process available?
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1 / 1Source
81. Details of process for addressing land conflicts available?
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0.5 / 1Source
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
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1 / 1Source
83. Commitment to provide essential community services and facilities?
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1 / 1Source
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)
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0.5 / 1Source
85. Reference to Fundamental ILO Conventions?
No reference made to Equal Remuneration (No. 100)
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0.5 / 0.5Source
86. Total number of employees?
30,479 - Data as of 2016
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0.5 / 1Source
87. Percentage or number of temporary employees?
0.06% - Percentage of employees on short term contracts in 2015 (data is over two year old)
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1 / 1Source
88. Percentage or number of women employees?
3,515 (11.53%) - Data as of 2016
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0.5 / 1Source
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
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0.5 / 1Source
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
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0.5 / 1Source
91. Time lost due to work-based injuries?
18 - Figure represents frequency rate of lost time accidents in 2016
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0.5 / 1Source
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
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0.5 / 1Source
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
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Certification standards
3 / 10
30%
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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.
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1 / 1Source
94. Percentage area (ha) verified as being in legal compliance by a third party?
100% - SVLK
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0 / 1Source
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
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0 / 1Source
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
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0 / 1No source
97. Commitment to source only wood/wood fibre that meets FSC Controlled Wood requirements?
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0 / 2Source
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
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0 / 2No source
99. Percentage of wood/wood fibre supply from outgrower scheme and/or independent suppliers that is FSC FM certified?
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2 / 2Source
100. Percentage area (ha) PEFC certified?
86% - PEFC-endorsed Indonesian Forestry Certification Cooperation (IFCC) SFM scheme
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Smallholders and suppliers
4 / 5
80%
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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.
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0.5 / 1Source
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
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0.5 / 1Source
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
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1 / 1Source
103. Process used to prioritise, assess and/or engage suppliers on compliance with company's policy and/or legal requirements?
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1 / 1Source
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
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1 / 1Source
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)
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Governance and grievances
5.5 / 6
91.7%
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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.
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1 / 1Source
106. Commitment to ethical conduct and prohibition of corruption?
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0.5 / 1Source
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
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1 / 1Source
108. Own grievance or complaints system?
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1 / 1Source
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
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2 / 2Source
110. Details of grievances disclosed?
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Media monitor: APP (Asia Pulp and Paper) Group
SPOTT monitors global media sources for coverage of assessed companies. The media monitor gathers reports about specific activities related to the assessment indicator categories. ZSL does not assess the validity of media coverage, but users can explore the media monitor to provide context on implementation, and infer risks associated with reported operations on the ground.
November 2018
How can products from an Asia Pulp and Paper company have carried an FSC label for the past seven years, when FSC disassociated from APP in 2007?
August 2018
APP and APRIL violate zero-deforestation policies with wood purchases from Djarum Group concessions in East Kalimantan
June 2018
Coalition Traces Asian Business Ownership Pulp and Paper, What's the Find?
June 2018
Beyond Paper Promises: Assessing the Impacts of Corporate Pulp and Paper Commitments on Forests and Frontline Communities
May 2018
Greenpeace breaks up with APP after investigation links paper firm to deforestation
March 2018
Paper giant and its 'suppliers' are essentially one and the same, investigation finds
March 2018
Five years after zero-deforestation vow, little sign of progress from Indonesian pulp giant
February 2018
Andhra Pradesh may get India's largest paper mill, discussions begin
February 2018
Asia Pulp and Paper is playing a corporate shell game, and #rainforests are losing
February 2018
Asia Pulp and Paper's sustainability progress 'not sufficient' say NGOs
December 2017
Rebutting media reports, pulp giant APP claims links to suppliers do not weaken its sustainability efforts
November 2017
Development or destruction? An inside look at APP's mega paper mill
September 2017
MDA to provide operational forest change detection alerts for world's largest pulp and paper group
July 2017
Probability of 2015 haze repeat much lower this year: Asia Pulp and Paper official
June 2017
Revealed: Paper giant's ex-staff say it used their names for secret company in Borneo
June 2017
Here's a Rare Glimpse of the Local People Impacted by the Destruction of Indonesia's Rainforests
June 2017
'Give us back our land': paper giants struggle to resolve conflicts with communities in Sumatra
May 2017
Deforestation and Industrial Pulpwood Plantations in Indonesia, Devastating Social and Environmental Impacts
May 2017
Life at the Frontline of Deforestation: How Families in Indonesia are Fighting Back
May 2017
Indonesian protesters dismiss Bonn Challenge as mask for APP's 'corporate crimes'
February 2017
Hong Kong consumers willing to pay a premium for sustainable paper
January 2017
Green groups want paper giant to stop using drained peat in Indonesia
December 2016
As accusations fly, paper giant appears to stand by its replanting of burned peat in Sumatra
November 2016
Pulp Giants Asia Pulp & Paper intentionally burned peatlands, says Indonesian NGO
November 2016
APP receives first FLEGT license to boost EU-Indonesia paper trade
November 2016
Healthy forests, zero burning, prosperous economy: Can Indonesia have it all?
October 2016
Asia Pulp & Paper Signs Onto Multiparty Collaboration for Clean Water, Education in Indonesia
August 2016
Pulp firm Bumi Mekar Hijau found guilty of starting illegal fires in Indonesia
April 2016
Grim forecast for paper giant's wood supply raises deforestation fears
April 2016
Greenpeace reveals Indonesia's forests at risk as multiple companies claim rights to same land
March 2016
Study: Maintain Hydrological Peat on Kampar Peninsula or This Region will Drown
February 2016
Fires burned 26% of forestry giant's South Sumatra plantations in 2015
February 2016
Stakeholder Collaboration Enables Accelerated Progress in APP's Peatland Management Efforts
December 2015
Haze fires: Indonesia blames 16 firms, identifies them by their initials
December 2015
Asia Pulp & Paper launches agroforestry program in 500 villages to help protect Indonesia's forests
November 2015
NEWSAPP brand gave PR agencies 'get us out of the news' brief after NTUC Fairprice product ba
September 2015
Singapore sends notices to four Indonesian companies and seeks information from Singapore-listed APP
September 2015
Indonesia arrests seven company executives for illegal forest fires
April 2015
Death of an Indonesian farmer: are companies doing enough to protect local communities?
February 2015
Rainforest Alliance audit confirms Jakarta deforestation unchecked
February 2015
2 years ago, the bad guys pledged to go good on rainforests. How'd they do?
January 2015
Asia Pulp & Paper's Aida Greenbury on changing the story from environmental pariah to sustainability leader
December 2014
Deforestation: Community Land Grabs by Major Pulp and Paper Conglomerate in Indonesia
September 2014
