APP (Asia Pulp and Paper) Group

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.

3. High-level position of responsibility for sustainability?

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

4. Sustainability report published within last two years?

2016

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.

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.

7. Lists countries and operations?

Indonesia (pulp and paper mills, pulpwood suppliers).

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.

9. Total area of forest plantation (ha)?

2587220 - 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.

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

7746 - 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.

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

1322830 - Figure is over two years old.

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

361000 - Figure is over two years old. The company refers to approximately 600,000 ha conservation areas elsewhere in its reporting.

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.

14. Number of Forest Management Units (FMUs)?

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

15. Maps of forest management units (FMUs)?

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

16. Forest management plans available for all FMUs?

17. Monitoring of forest management plan implementation?

18. Number of company owned pulp and paper mills?

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

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

20. Number of company owned sawmills?

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

21. Maps or addresses of company owned sawmills?

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

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.

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

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.

25. Commitment to protect forest areas from illegal activities?

26. Evidence of monitoring deforestation?

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

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.

28. Commitment to biodiversity conservation?

29. Commitment to set aside areas for conservation?

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

Multiple habitat management projects have been initiated by the company.

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

The company supports conservation projects across 10 landscapes in Indonesia.

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.

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.

34. Commitment not to use genetically modified organisms?

The company allows the use of GMOs in some circumstances.

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

36. Examples of species conservation activities?

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.

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

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

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.

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

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

43. High Carbon Stock (HCS) assessments available?

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

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

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.

47. Commitment to reduced impact logging?

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

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

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

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

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

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

The company only provides evidence of best management practices for peat.

52. Commitment to zero burning?

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

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.

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.

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

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

57. Progress towards reducing GHG emission intensity?

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

58. Report GHG emissions from land use change?

59. Methodology used to calculate GHG emissions?

IPCC/WRI-WBCSD GHG Protocol.

60. Time-bound commitment to improve water quality?

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

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.

62. Protection of natural waterways through buffer zones?

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'.

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.

65. Time-bound commitment to improve water use?

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

66. Progress towards commitment on water use?

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

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

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.

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

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

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

72. Integrated Pest Management (IPM) approach?

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

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.

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

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.

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.

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

79. FPIC commitment applies to independent suppliers?

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

81. Details of process for addressing land conflicts available?

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.

83. Commitment to provide essential community services and facilities?

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).

85. Reference to Fundamental ILO Conventions?

No reference made to Equal Remuneration (No. 100).

86. Total number of employees?

30479 - Data as of 2016.

87. Percentage or number of temporary employees?

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

88. Percentage or number of women employees?

3515 (11.53%) - Data as of 2016.

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.

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.

91. Time lost due to work-based injuries?

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

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.

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.

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

100% - SVLK.

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.

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.

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

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.

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

100. Percentage area (ha) PEFC certified?

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

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.

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.

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

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.

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).

106. Commitment to ethical conduct and prohibition of corruption?

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.

108. Own grievance or complaints system?

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.

110. Details of grievances disclosed?