APP (Asia Pulp and Paper) Group

1. Sustainability policy or commitment for all timber, pulp and paper operations?

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?

Sustainability and Stakeholder Engagement Team (led by a Managing Director) reports directly to the CEO.

4. Sustainability report published within last two years?

2015

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

GRI, UNGC, TFT.

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

Work with the Government of Indonesia (GoI) and partners on Best Practice Peatland Management Plan (PBPMP); coordination with GoI enforcement agencies on wildfire prevention and management; Partnership with Habitat for Humanity and Indonesia Global Compact Network (IGCN) on water and sanitation projects for communities.

7. Lists countries and operations?

Indonesia (pulp and paper mills, pulpwood suppliers).

8. Total land area managed/controlled for the production of wood/wood fibre (ha)?

2613150 - Figure indicates land managed by APP and independent suppliers in 2015. A disaggregated figure is not available.

9. 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.

10. Total area of forest plantation (ha)?

2613150 - Figure indicates land managed by APP and independent suppliers in 2015. A disaggregated figure is not available.

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

12. Unplanted (areas designated for future planting as forest) (ha)?

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

600000 - Approximate area set aside for forest conservation and ecosystem restoration within supplier concessions.

14. Maps of forest management units (FMUs)?

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

15. Forest management plans available?

The company is developing Integrated Sustainable Forest Management Plan (ISFMP) for each of its 38 suppliers. These are not yet available.

16. Monitoring of forest management plan implementation?

The company is developing Integrated Sustainable Forest Management Plan (ISFMP) for each of its 38 suppliers. These are not yet available.

17. Number of company owned pulp and paper mills?

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

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

Addresses for some mills provided.

19. Number of and names of supplying pulp and paper mills?

20. Commitment to address deforestation?

The indicator has been disabled as the company has only plantation based production.

21. Commitment to zero or no net deforestation?

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 February 1st 2013.

22. Zero or no net deforestation commitment applies to outgrower scheme and independent suppliers?

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 February 1st 2013.

23. Evidence of monitoring deforestation?

An independent observer (2016) identified no violations of the company's Forest Conservation Policy (FCP) commitment to protect natural forest cover.

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 set aside areas for conservation?

The company states that all areas identified as HCV in supplier concessions, including all natural forest, will be managed and protected.

26. Evidence of habitat management and/or habitat restoration of set-aside areas?

Multiple habitat management projects have been initiated by the company.

27. Commitment to biodiversity conservation?

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

The company has committed to support the protection and restoration of 1 million hectares of forest in Indonesia, taking into account 'the sustainability of the entire landscape'.

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

The company commits to support the 'national target to increase by 10% the population of 25 specified endangered species', but does not reference a recognised system of species classification.

30. Commitment to sustainably manage the use of non-timber forest products?

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

31. Commitment to protect forest areas from illegal activities?

A new division Social and Security Division has been established to improve coordination and strengthen forest security and the social engagement and management initiatives of the company's pulpwood suppliers' concessions.

32. Commitment not to use genetically modified organisms?

The company allows the use of GMOs in some circumstances.

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

34. Evidence of species conservation activities?

Multiple examples of species conservation activities.

35. 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.

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

37. 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.

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

39. Commitment to conduct High Carbon Stock (HCS) assessments?

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

40. High Carbon Stock (HCS) assessments available?

Summary of the HCS assessments available via the companies FCP Dashboard.

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

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

43. Commitment to best management practices for soils and 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.

44. Commitment to reduced impact logging?

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

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

No further canal or other infrastructure activities will take place within undeveloped suppliers' concessions on non-forested peatland until independent HCV assessments including input from peat experts has been completed.

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

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

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

The company has established a Peat Expert Team to develop 'best practice' management for the peat landscapes where its pulpwood suppliers operate. Over 400 dams have been put in place to block plantation perimeter canals (as of 2015).

49. Commitment to zero burning?

No-burning policy for land preparation since 1996 and a 'zero deforestation' policy since February 2013.

50. Commitment applies to outgrower scheme and independent suppliers?

The company states that its Zero Burning Policy is enforced through its entire supply chain.

51. Evidence of management and monitoring fires?

Remote sensing 'hot spot' data; ground patrols; helicopter support to on the ground firefighting.

52. 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.

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

0.1% - Minimum 10% reduction of carbon intensity (tCO2e/ton product) by 2020.

54. Report GHG emission intensity?

1.4 - tCO2e/t.

55. Progress towards reducing GHG emission intensity?

Carbon emissions intensity increased 0.7% in 2014 at which point it stood at 1.37 tCO2e/t. A 2015 carbon intensity figure of 1.4 tCO2e/t indicates that the company is not on target to meet its commitment.

56. Report GHG emissions from land use change?

57. Methodology used to calculate GHG emissions?

IPCC/WRI GHG Protocol.

58. Time-bound commitment to improve water quality?

Achieve minimum 10% below national and/or regional limit for COD and BOD.

59. Progress towards commitment on water quality?

All mills achieved target of 10% below national and/or regional limit for COD and BOD in 2014.

60. Protection of natural waterways through buffer zones?

61. 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'.

62. Time-bound commitment to improve water use?

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

63. Progress towards commitment on water use?

Water intensity increased 30% in 2015.

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

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

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

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

68. Integrated Pest Management (IPM) approach?

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

70. 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.

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

No reference is made to the UN Declaration of Human Rights or UN Guiding Principles on Business and Human Rights.

72. 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.

73. Commitment to respect legal and customary property rights?

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

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

75. FPIC commitment applies to independent suppliers?

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

77. Details of process for addressing land conflicts available?

78. Commitment to mitigate impacts on food security?

No commitment in place. The company provides a case study on agricultural support projects at the Lontar Papyrus Community Development centre and is delivering a series of pilot community agroforestry programmes through its Integrated Forest & Farming System.

79. 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).

80. Reference to Fundamental ILO Conventions?

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

81. Total number of employees?

37951 - 2015 figure.

82. Percentage or number of temporary employees?

0.06% - Percentage of employees on short term contracts (2015).

83. Percentage or number of women employees?

4788 (0.126163%) - 2015 figure.

84. Commitment to pay minimum wage?

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

85. 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.

86. Time lost due to work-based injuries?

Lost day rate is 77 for males and 10 for females (2015).

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

Inconsistent data provided. The company's sustainability report indicates that either four or five fatalities were recorded in the companies mills (2015). Figures for wider operations (e.g. plantation-level production) are not available.

88. Provision of personal protective equipment and related training?

Mentions the provision of PPE and safety training, but falls short of a full commitment to provide these to all employees involved in pulp and paper operations.

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

1% - All FMUs that supply pulpwood to APP (owned and independent) have achieved mandatory national forest certification under SVLK.

90. 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) 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 therfore cannot confirm the amount of wood fibre supply that is verified as being in legal compliance by a third party.

91. Time-bound plan for achieving 100% FSC 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.

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

93. Time-bound plan to source 100% FSC certified wood/wood fibre from independent suppliers?

94. Percentage area (ha) FSC 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.

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

96. Percentage area (ha) PEFC certified?

12% - PEFC-endorsed Indonesian Forestry Certification Cooperation (IFCC) SFM scheme.

97. Programme to support outgrower scheme smallholders?

Acacia and Eucalyptus Nursery Program in partnership with the Bunut Abadi Microfinance Organization. The program provides seedlings for the company, helps develop entrepreneurial and managerial skills, and generates income for local families.

98. Percentage of outgrower scheme smallholders involved in programme?

The Acacia and Eucalyptus Nursery Program benefited 157 participants and their families in 2007. More up-to-date information is not available.

99. Programme to support independent smallholders?

100. Percentage of independent smallholders involved in programme?

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

102. 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.

103. Percentage of suppliers assessed and/or engaged?

52 - The company is working with TFT to engage their suppliers on compliance with APP's Fibre Procurement and Processing Policy. According to TFT, 52 suppliers of APP (Indonesia) have been engaged. Overall, TFT report that 79% of APP Group's (APP China and APP Indonesia) have been engaged to date.

104. Commitment to ethical conduct and prohibition of corruption?

105. Whistleblowing procedure?

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

106. Own grievance or complaints system?

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

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

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

108. Details of grievances disclosed, if anonymity not requested, including the following: - date - issue - complainant category - actions taken - status?