APP (Asia Pulp and Paper) Group

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

2. Sustainable forestry policy or commitment applies to all suppliers?

3. High-level position of responsibility for sustainability?

The company has a Chief of Sustainability Officer.

4. One or more members within the board of the company have responsibility for sustainability?

The Sustainability Committee Board is headed by the company's CEO and includes its Deputy Chairman and Managing Director.

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

6. Percentage or number of women board members?

0 - Gender balance not directly reported by the company but identified from the profile photos of the Board of Commissioners and Directors. No female member found.

7. Member of multiple industry schemes or other external initiatives to reduce negative environmental or social outcomes associated with timber and pulp production?

[Externally verified] HCV, HCS, NYDF, TFA, Natural Capital Coalition.

8. Collaboration with stakeholders to reduce negative environmental or social outcomes associated with timber and pulp production?

The company supports a local 'Green Village' programme which brings together a range of stakeholders to cooperate in establishing a waste bank, community biogas project, catfish farming and creating green spaces within the community. Also the company collaborates with many other agriculture and forestry companies to make a positive impact on forest protection.

9. Sustainability report published within last two years?

10. Reports through standardised reporting systems?

11. Climate risks assessment available?

12. Natural capital assessment available?

13. Lists countries and operations?

Indonesia (pulp and paper mills, pulpwood suppliers).

14. Lists countries sourcing from?

This indicator is disabled as the company reports that it does not trade wood/wood fibre.

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

This indicator is disabled as the company reports that it only produces wood/wood fibre from plantation forests.

16. Total area of forest plantation (ha)?

1082790 - Total planted areas are considered from owned FMPs and the outgrower scheme area is not included. Company owned FMUs: PT. Arara Abadi 296,262 ha; PT. Satria Perkasa Agung: 77,702 ha; PT. Satria Perkasa Agung Serapung: 11,970 ha;PT. Riau Abadi Lestari: 12,000 ha; PT. Satria Perkasa Agung Sinar Merawang: 10,070 ha; PT. Wirarakarya Sakti: 293,812 ha; PT. Finnantara Intiga: 299,700 ha; PT. Sumalindo Hutani Jaya I: 10,976 ha and PT. Sumalindo Hutani Jaya II: 70,300 ha. Total = 1082792 ha.

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

6674 - 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.

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

1322830 - The unplanted area is reported in the HCS assessment summary. The data is two to five years old.

19. Conservation set-aside area, including HCV area (ha)?

20. 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.

21. Number of Forest Management Units (FMUs)?

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

22. Maps of forest management units (FMUs)?

23. Forest management plans available for all FMUs?

24. Monitoring of forest management plan implementation available?

The company reports performance against management objectives in all management plans for each FMU. However, these reports are not externally verified therefore full points cannot be awarded.

25. Company has provided valid legal documents to Open Timber Portal on use right (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.

26. 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.

27. 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.

28. Names and locations of all third-party supplying FMUs?

29. Number of company owned sawmills?

This indicator is disabled as the company reports that it doesn't own sawmills.

30. Names and locations of company owned sawmills?

This indicator is disabled as the company reports that it doesn't own sawmills.

31. Number of company-owned pulp and paper mills?

32. Names and locations of company-owned pulp and paper mills?

33. Reports total volumes (or percentages) sourced by company-owned sawmills that come from company's own operations and/or third-parties?

This indicator is disabled as the company reports that it doesn't own sawmills.

34. Reports total volumes (or percentages) sourced by company-owned pulp and paper mills that come from company's own operations and/or third-parties?

35. Number of third party supplying mills?

This indicator is disabled as the company reports that it doesn't source from supplying mills.

36. Names and locations of all third party supplying mills?

This indicator is disabled as the company reports that it doesn't source from supplying mills.

37. Reports total volume (or percentages) sourced from third-party supplying mills that come from the supplying mills' own operations and/or third parties?

This indicator is disabled as the company reports that it doesn't source from supplying mills.

38. 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.

39. Percentage of supply traceable to country of harvest?

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.

40. Procedures to trace raw materials to FMU level?

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

41. Percentage of supply traceable to FMU level?

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.

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

The company's forest concessions are 100% PHPL-VLK (SVLK, Timber Legality Assurance System) certified.

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

100% - The company is 100% SVLK certified.

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

The company has a target for all suppliers to be 100% third party certified by 2020.

45. Percentage of all wood/wood fibre supply traded/processed verified as being in legal compliance by a third party?

46. Percentage area (ha) FSC FM certified?

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

48. Percentage of wood/wood fibre supply (tonnes) from all suppliers that comes from FSC FM certified areas?

49. Commitment to source only wood/wood fibre that meets FSC Controlled Wood and/or PEFC Controversial Sources requirements?

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

51. Commitment to zero deforestation or zero conversion of natural ecosystems?

52. Commitment to zero deforestation or zero conversion of natural ecosystems applies to all suppliers?

53. Criteria for defining deforestation?

The company defines forests using independent HCVF and HCS assessments.

54. Evidence of monitoring deforestation?

55. Amount of illegal/non-compliant deforestation recorded?

0.14% - The company reports in 2018 0.14% of its suppliers concession area experienced natural forest loss as defined by RADARSAT2 technology. However, this figure is just for protected areas so only partial points can be awarded.

56. Amount of illegal//non-compliant deforestation recorded in supplier operations?

0.14% - The company reports in 2018 0.14% of its suppliers concession area experienced natural forest loss as defined by RADARSAT2 technology. However, this figure is just for protected areas so only partial points can be awarded.

57. Commitment to restoration of non-compliant deforestation/conversion?

The company reports it has a restoration strategy but this could not be found. It has reported on the strategy's progress, however a clear commitment with a cut-off date beyond which deforestation or conversion would not be accepted could not be found.

58. Commitment to restoration of non-compliant deforestation/conversion applies to all suppliers?

The company reports it has a restoration strategy that applies to suppliers but this could not be found. It has reported on the strategy's progress, however a clear commitment with a cut-off date beyond which deforestation or conversion would not be accepted could not be found.

59. Implementing a landscape or jurisdictional level approach?

60. Commitment to biodiversity conservation?

61. Commitment to biodiversity conservation applies to all suppliers?

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

The company reports that it identifies species protection as listed on the IUCN Red List of Critical Endangered Species and CITES. However, this is not externally verified therefore full points cannot be awarded.

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

Points for external verification have been awarded on the basis of the company's PEFC-certified landbank. The company gives multiple examples of species and habitat conservation in its Sustainability Report.

64. Commitment to no hunting or only sustainable hunting of species?

65. Commitment to no hunting or only sustainable hunting of species applies to all suppliers?

The company has a commitment to sustainable hunting of species for some of its suppliers but companies such as PT. Bina Daya Bentala does not have such a commitment.

66. Commitment to protect forest areas from illegal activities?

67. Commitment to protect forest areas from illegal activities applies to all suppliers?

68. Evidence of protecting forest areas from illegal activities?

The company reports that it carries out SMART Patrols to protect forest areas from illegal activities. The company has 91% of its landbank certified under PEFC. Therefore, additional points are available for this indicator.

69. Commitment to no use of genetically modified organisms?

70. Commitment to no use of genetically modified organisms applies to all suppliers?

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

72. Commitment to conduct High Conservation Value (HCV) assessments applies to all suppliers?

73. High Conservation Value (HCV) assessments available?

The company provides HCV assessments for its operations which are available online via the company's FCP Dashboard. Full points cannot be awarded as the assessments are not externally verified.

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

The company provides HCV assessments for its operations which include management and monitoring and are available online via the company's FCP Dashboard.

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

76. Commitment to the High Carbon Stock (HCS) Approach applies to all suppliers?

77. High Carbon Stock (HCS) assessments available?

This indicator is disabled as the company reports that it hasn't expanded its plantation area since January 2015.

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

79. Commitment to conduct social and environmental impact assessments (SEIAs) applies to all suppliers?

80. Social and environmental impact assessments (SEIAs) available, and associated management and monitoring plans?

81. 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 reports that it doesn't operate in a geography currently covered by Open Timber Portal.

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

The company commits to protecting forested peatland using HCV and HCS methodologies, but does not commit to no planting on non-forested peatland.

83. Commitment to no planting on peat of any depth applies to all suppliers?

The company policy only protects forested peatlands in supplier concessions and requires best management practices for non-forested peatland.

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

50% - The company provides an approximate figure (50%) of landbank on peat in supplier concessions. Additionally, 7,000 hectares of retired production forests in peatland by end of 2015. However, it is not clear if this cover's the company's whole operations so full points cannot be awarded.

85. Implementation of commitment to no planting on peat of any depth?

86. Commitment to best management practices for soils and peat?

The company provides a commitment to the best management practices for peat. Details for each supplier's soil management methods can be found in 'Public Summaries' on the company's Forest Conservation Plan (FCP) monitoring website.

87. Commitment to best management practices for soils and peat applies to all suppliers?

The commitment to best management practices for peat has been applied for some suppliers, but not all.

88. Evidence of best management practices for soils and peat?

The company provides best management practices for peat and details for each supplier's soil management methods can be found in 'Public Summaries' on the company's Forest Conservation Plan (FCP) monitoring website.

89. Commitment to reduced impact logging?

This indicator is disabled as the company reports that it only produces wood/wood fibre from plantation forests.

90. Commitment to reduced impact logging applies to all suppliers?

This indicator is disabled as the company reports that it only sources wood/wood fibre from plantation forests.

91. Evidence of implementing reduced impact logging practices?

This indicator is disabled as the company reports that it only produces wood/wood fibre from plantation forests.

92. Commitment to zero burning?

93. Commitment to zero burning applies to all suppliers?

94. Evidence of fire monitoring and management?

The company has its own integrated fire management system for concessions and scores additional points for PEFC FM certification.

95. Details/number of hotspots/fires in company FMUs?

The company publishes weekly fire updates that report the number of hotspots and fires per province.

96. Details/number of hotspots/fires in suppliers operations?

0.07% - The company reports 0.07% of suppliers' concessions were impacted by forest fire in 2018.

97. Time-bound commitment to reduce greenhouse gas (GHG) emissions intensity?

The company has committed to a minimum 10% reduction of carbon intensity (tCO2e/ton product) by 2020, using 2012 as a baseline.

98. GHG emissions intensity?

The company reports Scope 1 (direct) and Scope 2 (indirect) carbon emissions for the year 2018.

99. GHG emissions from land use change?

This indicator is disabled as the company reports that it hasn't expanded its plantation area since January 2015.

100. Progress towards commitment to reduce GHG emissions intensity?

101. Methodology used to calculate GHG emissions?

GHG or carbon emission assessment is based on the Intergovernmental Panel on Climate Change (IPCC) and World Resources Institute (WRI)/World Business Council for Sustainable Development (WBCSD) - Greenhouse Gas (GHG) Protocol methodology.

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

The company has a target to reduce 10% of water intensity by 2020 based on a 2013 baseline.

103. Water use intensity?

21 - The company reports water use intensity for the year 2018 as 21 m3/t. Water consumption for production amounts to 246,727,784 m3.

104. Progress towards commitment on water use intensity?

[Externally verified] The company reports its water use intensity on a graph and states that in 2018 it achieved a 24% reduction compared to the 2013 baseline, thus achieving its target of 10% reduction by 2020.

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

The company is committed to reducing BOD and COD by 10% below the national and regional limits by 2020.

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

[Externally verified] The company states that all mills achieved the target of 10% below national and/or regional limits for COD and BOD in 2018.

107. Treatment of pulp and paper mill effluent?

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

This indicator is disabled as the company reports that it doesn't own sawmills.

109. Proportion of processing facilities with closed-loop water treatment system?

110. Commitment to protect natural waterways through buffer zones?

111. Implementation of commitment to protect natural waterways through buffer zones?

[Externally verified] Points for external verification have been awarded on the basis of the company's PEFC-certification. As the International Standard's requirements do not fully meet the SPOTT indicator criteria limited, externally verified points have therefore been awarded for this indicator.

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

Commitment to minimise the use of pesticides does not cover all operations.

113. Commitment to minimise the use of chemicals, including pesticides and chemical fertilisers, applies to all suppliers?

Commitment to minimise the use of pesticides does not cover all suppliers, for instance, PT. Daya Tani Kalbar.

114. Evidence of eliminating chlorine and chlorine compounds for bleaching?

115. Commitment to no use of World Health Organisation (WHO) Class 1A and 1B pesticides?

116. Commitment to no use of World Health Organisation (WHO) Class 1A and 1B pesticides applies to all suppliers?

117. Commitment to no use of chemicals listed under the Stockholm Convention and Rotterdam Convention?

118. Commitment to no use of chemicals listed under the Stockholm Convention and Rotterdam Convention applies to all suppliers?

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

The company does not report the chemical use per ha in all FMPs.

120. Implementation of commitment to reduce chemical usage?

121. Integrated Pest Management (IPM) approach?

The company in FMP (Public Summaries) reports that it has implemented the Integrated Pest Management approach in its own and suppliers' concessions. Full points could not be awarded as FMPs are not externally verified.

122. Waste management system in place to avoid negative impacts?

123. Commitment to human rights?

124. Commitment to human rights applies to all suppliers?

125. Progress on human rights commitment ?

The company expects all its employees to comply with the code of conduct (Human Rights Commitment) and provides training for the same. It also has developed Supplier Evaluation and Risk Assessment (SERA) tools to evaluate suppliers on 12 indicators one of them is 'Company's respect for traditional civil and human rights'. The evidence is not externally verified therefore full points cannot be awarded.

126. Commitment to respect Indigenous and local communities' rights?

The company respects indigenous and local communities' rights, however, the commitment does not refer to ILO (no. 169).

127. Commitment to Indigenous and local communities' rights applies to all suppliers?

Commitment to respect indigenous and local communities' rights applies to suppliers, however, the commitment does not refer to ILO (no. 169).

128. Commitment to respect legal and customary land tenure rights?

The company makes this commitment through SVLK certification requirements. As SVLK requirements do not fully meet the SPOTT indicator criteria, partial points have been awarded on the basis of the company's SVLK certification.

129. Commitment to legal and customary land rights applies to all suppliers?

The company, in its 2018 Sustainability Report, states that 91% of the Concession area is certified to Indonesian Forestry Certification Corporation and 100% of Forestry concession is PHPL-VLK certified.

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

131. Commitment to free, prior and informed consent (FPIC) applies to all suppliers?

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

133. Examples of local stakeholder engagement to prevent conflicts?

[Externally verified] The company has a Regional Social Working Group, maps land disputes and aims to establish a Social and Security Division to handle land dispute resolutions.

134. Details of process for addressing land conflicts available?

135. Supports the inclusion of women across forestry operations, including addressing barriers faced?

136. 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.

137. Commitment to enable sustainable use of non-timber forest products (NTFPs) by local communities?

This indicator is disabled as the company reports that it only produces wood/wood fibre from plantation forests.

138. Commitment to provide essential community services and facilities ?

139. Progress on commitment to provide essential community services and facilities?

140. Commitment to provide business/work opportunities for local communities?

141. 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.

142. Commitment to Fundamental ILO Conventions or Free and Fair Labour Principles?

The company in Employee Welfare Policy abides by ILO Conventions. However, It does not explicitly mention all the fundamental ILO Conventions.

143. Commitment to Fundamental ILO Conventions or Free and Fair Labour Principles applies to all suppliers?

The company makes this commitment through SVLK certification requirements. As SVLK requirements do not fully meet the SPOTT indicator criteria, partial points have been awarded on the basis of the company's SVLK certification.

144. Progress on commitment to respect all workers' rights?

The company states that it provides "information, education, training and resources to help our employees, contractors and suppliers to support us in our commitment to care for their welfare", however this information is more than five years old and therefore points cannot be awarded.

145. Commitment to eliminate gender related discrimination with regards to employment?

146. Commitment to eliminate gender related discrimination with regards to employment applies to all suppliers?

147. Progress on commitment to eliminate gender related discrimination with regards to employment?

148. Percentage or number of temporary employees?

15946 - 15,946 are indirect employees including contractors and seasonal workers as per the sustainability report - 2017.

149. Percentage or number of women employees?

150. Commitment to pay at least minimum wage?

151. Commitment to pay at least minimum wage applies to all suppliers?

152. Progress on commitment to pay at least minimum wage?

[Externally verified] The company only states that each of its mills pays equal to or more than the local minimum wages.

153. Reporting of salary by gender?

154. Commitment to address occupational health and safety?

Commitment does not refer to the ILO Code of Practice on Safety and Health in Forestry Work, therefore full points cannot be awarded.

155. Commitment to address occupational health and safety applies to all suppliers?

Commitment does not refer to the ILO Code of Practice on Safety and Health in Forestry Work, therefore full points cannot be awarded.

156. Provision of personal protective equipment and related training?

157. Time lost due to work-based injuries?

5 - As per the Sustainability Report - 2018 lost day rate is 5. Partial point is awarded as it does not cover all operations.

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

10 - The company reports 10 fatalities for the year 2018 in the Sustainability Report. However, this does not cover all operations.

159. Commitment to support smallholders?

The company has three community forests within its concessions that aim to provide access for communities to benefit from the forestry industry. However, details on how the company is supporting these smallholders (e.g. improving yields or improving access to markets) has not been reported.

160. Programme to support outgrower scheme and/or independent smallholders?

161. Percentage of outgrower scheme and/or independent smallholders involved in programme?

[Externally verified] The company supports three community forests and the Integrated Forestry and Farming System, a community-forestry program has been rolled out in 284 villages, benefiting 16,807 households. However, the number of outgrowers/ smallholders are unclear.

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

The company has developed Supplier Evaluation and Risk Assessment (SERA) tools to facilitate the implementation of the RFPPP across the fiber supply chain.

163. Number or percentage of suppliers assessed and/or engaged on compliance with company's policy and/or legal requirements?

164. Suspension or exclusion criteria for suppliers?

All the suppliers are required to comply with the Responsible Fibre Procurement and Processing Policy. Also, the company has developed SERA to evaluate the suppliers. Suppliers who violate or are in non-compliance with the policy are warned immediately and are expected to take corrective measures within an agreed time or else the contract will be revoked.

165. Timebound action plans (including Key Performance Indicators) for suppliers to be in compliance with timber and pulp sourcing commitments?

166. Proportion of direct and indirect supply that comes from FMUs which are compliant with timber and pulp sourcing policies?

167. Commitment to ethical conduct and prohibition of corruption?

168. Commitment to ethical conduct and prohibition of corruption applies to all suppliers?

169. Progress on commitment to ethical conduct and prohibition of corruption?

170. 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.

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

172. 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.

173. Whistleblowing procedure?

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

175. Details of complaints and grievances disclosed?