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APP (Asia Pulp and Paper) Group

Timber and pulp assessment
  • Latest update: July 2019
  • Next scheduled: July 2020

Company assessment: APP (Asia Pulp and Paper) Group – July 2019

Assessment date:

Total: 74.4% 88.5 / 119
  • Sustainability policy and leadership Sustainability policy and leadership
    7 / 9 77.8%
    • Yes
      1 / 1

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

    • Yes
      1 / 1

      2. Sustainability policy or commitment applies to all sourcing?

      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

      3. High-level position of responsibility for sustainability?

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

    • 4. One or more board members have responsibility for sustainability?

      This indicator is disabled as the company is not publicly listed

    • 5. Percentage or number of women board members?

      This indicator is disabled as the company is not publicly listed

    • Yes
      1 / 1

      6. Percentage or number of women in senior management team?

      6% - Figure represents percentage of women in management team

    • Yes
      1 / 1

      7. Sustainability report published within last two years?

      2,017

    • Yes
      1 / 1

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

      TFT, TFA 2020, CDP, HCS Approach, Natural Capital Coalition, NYDF Global

    • Yes
      1 / 1

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

      In partnership with the NGO Habitat for Humanity Indonesia, Tjiwi Kimia mill has worked collaboratively to improve sanitation and hygiene conditions and awareness for neighbouring communities.
      OKI mill is collaborating with Sriwijaya University to develop 400ha of paddy fields for rice production on some abandoned land that flooded.
      Many other collaborative initiatives are mentioned on palm oil sustainability improvement

    • No
      0 / 1

      10. Climate risks assessment available?

    • No
      0 / 1

      11. Natural capital assessment available?

      The company has conducted a Natural Capital assessment based on the Natural Capital Protocol however the assessment is not publicly available

  • Landbank, mills and traceability Landbank, mills and traceability
    14 / 19 73.7%
    • Yes
      1 / 1

      12. Lists countries and operations?

      Indonesia (pulp and paper mills, pulpwood suppliers)

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

      This indicator is disabled as the company has informed ZSL that it only produces wood/wood fibre from plantation forests

    • Yes
      1 / 1

      14. Total area of forest plantation (ha)?

      1,082,790 - Figure indicates total area of plantation managed by the company by adding up the figures for its nine FMUs: Arara Abadi 296,262 ha; Riau Abadi: 12,000 ha; Satria Perkasa Agung Sinar Merawang: 10,070 ha; Satria Perkasa Agung: 77,702 ha; Satria Perkasa Agung Serapung: 11,970 ha; Wirarakarya Sakti: 293,812 ha; Finnantara Intiga: 299,700 ha; Sumalindo Hutani Jaya I: 10,976 ha and Sumalindo Hutani Jaya II: 70,300 ha

    • Yes
      1 / 1

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

      6,674 - Figure represents landbank of the company's three community forest suppliers: KTH Lubuk Jambi in Jambi: 2,316 ha; KTH Jabung Jaya Bersama in Jambi: 2,612 ha; KTH Musi Maju Jaya in South Sumatra: 1,746 ha

    • Partial
      0.5 / 1

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

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

    • Yes
      1 / 1

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

      613,997

    • 18. Area of Intact Forest Landscape (ha)?

      This indicator is disabled as the company has informed ZSL that it doesn't have any intact forest landscapes within its landbank

    • Yes
      1 / 1

      19. Number of Forest Management Units (FMUs)?

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

    • Yes
      1 / 1

      20. Maps of forest management units (FMUs)?

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

    • Yes
      1 / 1

      21. Forest management plans available for all FMUs?

    • Yes
      1 / 1

      22. Monitoring of forest management plan implementation?

    • 23. Company has provided valid legal documents to Open Timber Portal on use rights (at the time of SPOTT assessments)?

      This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal

    • 24. Company has provided valid legal documents to Open Timber Portal on forest management (at the time of SPOTT assessments)?

      This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal

    • 25. Company has provided valid legal documents to Open Timber Portal on timber harvesting (at the time of SPOTT assessments)?

      This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal

    • Yes
      1 / 1

      26. Number of company owned pulp and paper mills?

      10

    • Yes
      1 / 1

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

    • 28. Number of company owned sawmills?

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

    • 29. Maps or addresses of company owned sawmills?

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

    • No
      0 / 1

      30. Number of supplier mills?

    • No
      0 / 1
      No source

      31. Maps or addresses of supplier mills?

    • Yes
      1 / 1

      32. Procedures to trace raw materials to country of harvest?

      All of the company's suppliers are assessed by the Supplier Evaluation and Risk Assessment (SERA) process which includes checking information on country of origin

    • Partial
      0.5 / 1

      33. Procedures to trace raw materials to FMU level?

      The company uses third-party certification (SVLK, IFCC) to trace supply back to source. However the certifications used are only available for Indonesian supply and the company also sources from international markets. It is unclear how this international part of the company's supply traced back to FMU level

    • Yes
      2 / 2

      34. Percentage of supply traceable to country level (above 80%)?

      100% - All of the company's suppliers are assessed by the Supplier Evaluation and Risk Assessment (SERA) process which includes checking information on country of origin

    • No
      0 / 2

      35. Percentage of supply traceable to FMU level (above 75%)?

      The company has a target of all Indonesian suppliers being third party certified by 2020. At present certification of Indonesian supply stands at
      IFCC (Indonesian Forestry Certification Cooperation) certified – 91%
      LEI SFM certified – 83%
      PHPL-VLK certified (SVLK, Timber Legality Assurance System) – 100%
      However the company also sources from international markets and it is unclear what percentage of this is traceable to FMU level.

  • Deforestation and biodiversity Deforestation and biodiversity
    9.5 / 10 95%
    • Yes
      1 / 1

      36. 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

      37. Zero conversion commitment applies to all sourcing?

    • 38. 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

      39. Commitment to protect forest areas from illegal activities?

    • Yes
      1 / 1

      40. 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

      41. Amount of deforestation recorded?

      0.14% - Natural forest cover change in 2018. However, this figure only covers protected areas

    • Yes
      1 / 1

      42. Commitment to biodiversity conservation?

    • Yes
      1 / 1

      43. Examples of species and/or habitat conservation management?

      Multiple habitat management and species conservation projects have been initiated by the company

    • Yes
      1 / 1

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

      APP is committed to support the restoration and protection of 1 million hectares of forest by 2020 across ten priority areas in the five provinces where APP is engaged in Indonesia

    • Yes
      1 / 1

      45. Identified species of conservation concern referencing international or national system of species classification?

    • 46. 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

    • Yes
      1 / 1

      47. Commitment not to use genetically modified organisms?

  • HCV, HCS and impact assessments HCV, HCS and impact assessments
    7 / 9 77.8%
    • Yes
      1 / 1

      48. 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

      49. HCV commitment applies to all sourcing?

    • No
      0 / 1

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

    • Yes
      1 / 1

      51. 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

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

    • Yes
      1 / 1

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

    • Yes
      1 / 1

      54. High Carbon Stock (HCS) assessments available?

    • Yes
      1 / 1

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

    • No
      0 / 1
      No source

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

    • 57. Company has provided valid legal documents to Open Timber Portal on impact assessments (at the time of SPOTT assessments)?

      This indicator is disabled as the company does not operate in DRC, RoC or Cameroon

  • Soils, fire and GHGs Soils, fire and GHGs
    11 / 13 84.6%
    • Partial
      0.5 / 1

      58. 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

    • 59. Commitment to reduced impact logging?

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

    • Yes
      1 / 1

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

    • Yes
      1 / 1

      61. Commitment on peatland planting applies to all sourcing?

    • Partial
      0.5 / 1

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

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

    • Yes
      1 / 1

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

    • Yes
      1 / 1

      64. Commitment to zero burning?

    • Yes
      1 / 1

      65. Commitment to zero burning applies to all sourcing?

    • Yes
      1 / 1

      66. 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

      67. 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

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

      2,020 (10%) - Minimum 10% reduction of carbon intensity (tCO2e/ton product) by 2020

    • Yes
      1 / 1

      69. Progress towards reducing GHG emission intensity?

      14% - The company reported Carbon Intensity decreased 14% in 2017, compared to a 2012 baseline

    • No
      0 / 1

      70. Report GHG emissions from land use change?

    • Yes
      1 / 1

      71. Methodology used to calculate GHG emissions?

      IPCC/WRI-WBCSD GHG Protocol

  • Water, chemical and waste management Water, chemical and waste management
    8 / 12 66.7%
    • Yes
      1 / 1

      72. Time-bound commitment to improve water quality (BOD and COD)?

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

    • Yes
      1 / 1

      73. Progress towards commitment on water quality (BOD and COD)?

      All mills achieved target of 10% below national and/or regional limit for COD and BOD in 2017

    • No
      0 / 1

      74. Commitment to protection of natural waterways through buffer zones?

    • Yes
      1 / 1

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

      The company states that all waste water treated with "high efficiency activated sludge and chemical processes"

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

      This indicator is disabled as the company has informed ZSL that it doesn't own sawmills

    • Yes
      1 / 1

      77. Time-bound commitment to improve water use intensity?

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

    • Yes
      1 / 1

      78. Progress towards commitment on water use intensity?

      11% - Water intensity decreased 11% in 2017 compared to 2013 baseline

    • No
      0 / 1
      No source

      79. Commitment to eliminate chlorine and chlorine compounds for bleaching?

    • Partial
      0.5 / 1

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

      Commitment to minimise the use of pesticides can be found at the FMU level in public summary documents for all of the company's plantation operations however minimising the use of herbicides is not mentioned

    • Partial
      0.5 / 1

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

      Commitment to no use of WHO Class 1A and 1B pesticides can be found in eight out of nine public summaries of the company's plantation operations. Such a commitment is missing from the summary for PT. Finnantara Intiga

    • Partial
      0.5 / 1

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

      Commitment can be found in eight out of nine public summaries of the company's plantation operations. Such a commitment is missing from the summary for PT. Finnantara Intiga

    • Yes
      1 / 1

      83. Integrated Pest Management (IPM) approach?

    • Partial
      0.5 / 1

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

      Figures on chemicals used are available in the Public Summaries for eight out of nine of the company's FMUs. No information found for SHJ I

  • Community, land and labour rights Community, land and labour rights
    17.5 / 22 79.5%
    • Yes
      1 / 1

      85. Commitment to human rights, referencing the UN Declaration on 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

      86. Commitment to human rights applies to all sourcing?

    • Partial
      0.5 / 1

      87. 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

      88. 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

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

    • Yes
      1 / 1

      90. FPIC commitment applies to independent suppliers?

    • Yes
      1 / 1

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

    • Yes
      1 / 1

      92. Examples of local stakeholder engagement to prevent conflicts?

    • Yes
      1 / 1

      93. Details of process for addressing land conflicts available?

    • Yes
      1 / 1

      94. Commitment to support the inclusion of women across forestry operations, including addressing barriers faced?

    • Yes
      1 / 1

      95. Commitment to provide essential community services and facilities?

    • 96. Company has provided valid legal documents to Open Timber Portal on population rights (at the time of SPOTT assessments)?

      This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal

    • Yes
      1 / 1

      97. 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

      98. Reference to Fundamental ILO Conventions?

      No reference made to Equal Remuneration (No. 100)

    • Yes
      1 / 1

      99. Commitment to eliminate gender related discrimination with regards to employment and occupation?

    • 100. Company has provided valid legal documents to Open Timber Portal on labour regulations (at the time of SPOTT assessments)?

      This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal

    • Yes
      1 / 1

      101. Percentage or number of temporary employees?

      15,946 (52%) - Indirect employees including contract and seasonal workers

    • Yes
      1 / 1

      102. Percentage or number of women employees?

      10% - In 2017

    • Partial
      0.5 / 1

      103. Payment of minimum wage?

      The company states it pays the minimum wage but evidence is not provided and statement only covers mill operations

    • No
      0 / 1
      No source

      104. Reporting of salary by gender?

    • Partial
      0.5 / 1

      105. 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

      106. Time lost due to work-based injuries?

      4 - Figure represents lost day rate in 2017 but only relates to mill operations

    • Partial
      0.5 / 1

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

      9 - Figure for 2017 but only relates to mill operations

    • Yes
      1 / 1

      108. Provision of personal protective equipment and related training?

  • Certification standards Certification standards
    5 / 14 35.7%
    • Yes
      1 / 1

      109. Time-bound plan for achieving 100% third-party legality verification of FMUs or achieved?

      100% - Target already met as all the company's own FMUs are SVLK certified

    • Yes
      1 / 1

      110. Time-bound plan to source only wood/wood fibre that is in legal compliance verified by a third party?

      2,020 (100%) - The company has a target for all suppliers to be 100% third party certified by 2020

    • Yes
      1 / 1

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

      100% - SVLK

    • No
      0 / 1

      112. Percentage of all wood/wood fibre supply traded/processed 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 it sources 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

      113. Time-bound plan for achieving 100% FSC FM certification of FMUs or achieved 100% FSC-certification of FMUs?

      The FSC disassociated from the company in 2007 due to information that it was involved in destructive forestry practices. The FSC is 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

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

    • No
      0 / 2

      115. 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. The FSC is 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

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

    • No
      0 / 2
      No source

      117. Percentage of all wood/wood fibre supply traded/processed that are FSC certified (above 75%)?

    • Yes
      2 / 2

      118. Percentage area (ha) PEFC certified (excluding FSC certified area)?

      89% - IFCC (Indonesian Forestry Certification Cooperation) certified

  • Smallholders and suppliers Smallholders and suppliers
    4.5 / 5 90%
    • Yes
      1 / 1

      119. Programme to support outgrower scheme smallholders?

      The company provides various support to outgrowers including microfinance, training on agricultural practices and certification

    • Partial
      0.5 / 1

      120. Percentage of outgrower scheme smallholders involved in programme?

      The company included three community forests in its supply chain in 2017 however it is unclear how they are supported by the company. The company also supported over 3,000 households through the Integrated Forestry & Farming System, however it is unclear how many of these households are outgrowers. As of December 2018, the enrolled household number was 16,807

    • Yes
      1 / 1

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

    • 122. The company has a Due Diligence System (DDS)?

      This indicator is disabled as the company has informed ZSL that it does not trade wood/wood fibre

    • Yes
      1 / 1

      123. Suspension or exclusion criteria for suppliers?

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

    • Yes
      1 / 1

      124. 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 / 6 83.3%
    • Yes
      1 / 1

      125. Commitment to ethical conduct and prohibition of corruption?

    • 126. Company has provided valid legal documents to Open Timber Portal on legal registration (at the time of SPOTT assessments)?

      This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal

    • No
      0 / 1

      127. Disclosure of the company's management approach to tax and payments to governments?

      The company reports tax information for its publicly listed subsidiaries however no tax strategy could be identified

    • 128. Company has provided valid legal documents to Open Timber Portal on taxes, fees and royalties (at the time of SPOTT assessments)?

      This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal

    • Yes
      1 / 1

      129. Whistleblowing procedure?

    • Yes
      1 / 1

      130. Own grievance or complaints system open to all stakeholders?

    • Yes
      2 / 2

      131. 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.

Category filter:
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Scoring criteria: APP (Asia Pulp and Paper) Group

Scoring criteria guide how ZSL conducts SPOTT assessments and allocates scores to ensure a fair and consistent approach, setting the expectations for companies on how they should publish ESG data. The full indicator framework contains 131 indicators across 10 categories.

SPOTT is a ZSL initiative.
Zoological Society of London (ZSL)