APP China

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

The company's subsidiary has a basic sustainable forestry policy, but this does not clearly cover the company's entire operations.

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

The company has a basic wood fibre procurement policy, but this does not clearly cover all operations.

3. High-level position of responsibility for sustainability?

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

5. Reports gender balance of senior management team?

6. Reports gender balance of board members?

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

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

The company reports that it has collaborated with Guangdong Eco-Engineering Polytechnic and the School of Earth Sciences of Yunnan University on monitoring plant biodiversity within plantations,.

9. Sustainability report published within last two years?

The company published its most recent sustainability report in 2023.

10. Reports through standardised reporting systems?

11. Climate risks assessment available?

The company has conducted and published a climate risk assessment.

12. Natural capital assessment available?

13. Lists countries and operations?

The company has plantations and pulp mills in China.

14. Lists countries sourcing from?

15. Total land area managed/controlled for forestry (ha)?

286343 - The company states that it operates 286,343 ha of plantations.

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

This indicator is disabled as the company reports that it only has plantation-based operations OR does not produce wood/wood fibre.

17. Total area of forest plantation (ha)?

286343 - The company states that it operates 286,343 ha of plantations.

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

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

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

21. Area of Intact Forest Landscape (ha)?

22. Number of Forest Management Units (FMUs)?

12 - The company reports that it has 12 PEFC FM certified management units, but unclear if this is all of the company's FMUs, partial points have been awarded.

23. Maps of forest management units (FMUs)?

24. Forest management plans available for all FMUs?

Forest management plans are only available for the company's 12 PEFC FM certified plantation units. This does not cover the company's entire operations.

25. Monitoring of forest management plan implementation available?

26. 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 does not operate in a country currently covered by Open Timber Portal.

27. 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 does not operate in a country currently covered by Open Timber Portal.

28. 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 does not operate in a country currently covered by Open Timber Portal.

29. Maps of all third-party supplying FMUs?

30. Number of company owned sawmills?

31. Names and locations of company owned sawmills?

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

10 - The company reports owning 10 pulp and paper mills on its website, but this does not clearly cover all of the company's operations.

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

The company provides names and general locations for some of its mills.

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

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

36. Number of third party supplying mills?

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

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

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

The company makes this commitment through the PEFC International Chain of Custody Standard (PEFC ST 2002:2020). Partial points have been awarded as the requirements do not full meet the SPOTT scoring criteria.

40. Percentage of supply traceable to country of harvest?

41. Procedures to trace raw materials to FMU level?

The company makes this commitment through the PEFC International Chain of Custody Standard (PEFC ST 2002:2020). Partial points have been awarded as the requirements do not full meet the SPOTT scoring criteria.

42. Percentage of supply traceable to FMU level?

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

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

85.65% - The company reports that 85.65% of its plantations are PEFC FM certified.

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

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

19.46% - In 2022 the company sourced 18.88% of wood chips from certified forests and 20.55% of wood pulp from certified forests. Overall, the company sourced 19.46% of wood/wood fibre from certified forests.

47. Percentage area (ha) FSC FM certified?

48. Time-bound plan for achieving 100% FSC FM certification of FMUs within 10 years?

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

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

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

245246 (85.65%) - As of 2022, the company reports that 85.65% of its plantation area is PEFC certified.

52. Commitment to zero conversion of natural ecosystems?

53. Commitment to zero conversion of natural ecosystems applies to all suppliers?

54. Commitment to zero deforestation?

55. Commitment to zero deforestation applies to all suppliers?

56. Criteria and cut-off date for defining deforestation and/or ecosystem conversion?

57. Criteria and cut-off date for defining deforestation in supplier operations?

58. Evidence of monitoring deforestation and/or ecosystem conversion?

59. Evidence of monitoring deforestation and/or ecosystem conversion in supplier operations?

60. Amount of deforestation and/or ecosystem conversion recorded in own operations since cut-off date?

61. Amount of deforestation and/or ecosystem conversion recorded in supplier operations since cut-off date?

62. Commitment to restoration of deforestation/conversion in own operations since cut-off date?

63. Commitment to restoration of deforestation/conversion in supplier operations since cut-off date?

64. Implementing a landscape or jurisdictional level approach?

65. Biodiversity policy?

The company has a biodiversity policy, including a commitment to protect and monitor biodiversity, however it does not provide any specific time bound targets.

66. Biodiversity policy applies to all suppliers?

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

[Externally verified] Limited, externally verified points have been awarded on the basis of the company's PEFC FM certification (PEFC ST 1003:2018) as the requirements do not fully meet the SPOTT indicator criteria.

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

Comprehensive, externally verified points have been awarded on the basis of the company's PEFC FM certification (PEFC ST 1003:2018) as the requirements fully meet the SPOTT indicator criteria.

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

The company only commits to prohibit illegal hunting.

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

71. Commitment to protect forest areas from illegal activities?

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

73. Evidence of protecting forest areas from illegal activities?

Comprehensive, externally verified points have been awarded on the basis of the company's PEFC FM certification (PEFC ST 1003:2018) as the requirements fully meet the SPOTT indicator criteria.

74. Commitment to no use of genetically modified organisms?

The company commits to not use genetically modified organisms or transgenic species.

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

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

The company commits to conduct HCV assessments.

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

The company commits its suppliers to identify and protect HCV areas.

78. High Conservation Value (HCV) assessments available?

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

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

The company commits to High Carbon Stock (HCS) but does not specify the High Carbon Stock Approach.

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

The company's commitment to high carbon stock assessments only applies to suppliers in Indonesia.

82. High Carbon Stock (HCS) assessments available?

83. Peer review of all High Carbon Stock (HCS) assessments undertaken since April 2015 by the HCSA Quality Assurance Process?

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

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

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

87. 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 does not operate in a country currently covered by Open Timber Portal.

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

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

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

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

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

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

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

95. Commitment to reduced impact logging?

This indicator is disabled as the company reports that it only has plantation-based operations OR does not produce wood/wood fibre.

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

97. Evidence of implementing reduced impact logging practices?

This indicator is disabled as the company reports that it only has plantation-based operations OR does not produce wood/wood fibre.

98. Commitment to zero burning?

The company commits to 'prohibit contractors and workers from using fire for production in the forestland, such as burning vegetated land or performing controlled burns'.

99. Commitment to zero burning applies to all suppliers?

The company reports that contractors are prohibited 'from using fire for production in the forestland, such as burning vegetated land or performing controlled burns. This does not clearly apply to all suppliers.

100. Evidence of fire monitoring and management?

Comprehensive, externally verified points have been awarded on the basis of the company's PEFC FM certification (PEFC ST 1003:2018) as the requirements fully meet the SPOTT indicator criteria. Additional points have been awarded according to the percent of company landbank certified by PEFC.

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

The company reports that in 2022 9,114 mu of its plantations were affected by fire.

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

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

The company commits to reduce carbon intensity per unit product by 30% by 2030 and reach carbon neutrality by 2050.

104. GHG emissions intensity?

The company reports that in 2021 its mills produced 12,143,499.26 tCO2e scope 1 and 2 emissions, however this does not cover all forestry operations.

105. GHG emissions from land use change in company's own operations (scope 1)?

106. GHG emissions from land use change in supplier operations (scope 3)?

107. Progress towards commitment to reduce GHG emissions intensity?

108. Methodology used to calculate GHG emissions?

The company's carbon accounting was performed in accordance with the ISO 14064-1:2018, Greenhouse Gas Emissions Accounting Methodology and Reporting Guidelines for Paper and Paper Product Manufacturers (for Trial Implementation) issued by the National Development and Reform Commission and the Corporate Greenhouse Gas Emissions Accounting Methodology and Reporting Guidelines for Power Generation Facilities issued by the Ministry of Ecology and Environment.

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

110. Water use intensity?

In 2022, the company used 140,426,381.96 tons of water.

111. Progress towards commitment on water use intensity?

112. Time-bound commitment to improve water quality (BOD or COD)?

As of 2022, the company's BOD and COD levels are within legal limits.

113. Progress towards commitment on water quality (BOD or COD)?

[Externally verified] The company reports that between 2021-2022 its COD levels per ton of pulp have reduced, whilst the COD levels per ton of paper have stayed the same. Both levels are within legal limits.

114. Treatment of pulp and paper mill effluent?

The company states that it treats wastewater from pulp and paper mills.

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

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

[Externally verified] The company reports that its average industrial water reuse rate is 95%, however this information does not cover all mills.

117. Commitment to protect natural waterways through buffer zones?

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

Limited, externally verified points have been awarded on the basis of the company's PEFC FM certification (PEFC ST 1003:2018) as the requirements do not fully meet the SPOTT indicator criteria.

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

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

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

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

The company commits to not use chemicals banned by the World Health Organisation (WHO), however it does not specify 1A and 1B pesticides.

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

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

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

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

127. Implementation of commitment to minimise inorganic fertiliser usage?

128. Integrated Pest Management (IPM) approach?

Comprehensive, externally verified points have been awarded on the basis of the company's PEFC FM certification (PEFC ST 1003:2018) as the requirements fully meet the SPOTT indicator criteria. Additional points have been awarded according to the percent of company landbank certified by PEFC.

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

[Externally verified] Limited, externally verified points have been awarded on the basis of the company's PEFC FM certification (PEFC ST 1003:2018) as the requirements do not fully meet the SPOTT indicator criteria.

130. Commitment to human rights?

131. Commitment to human rights applies to all suppliers?

132. Progress on human rights commitment ?

133. Commitment to respect Indigenous Peoples' and local communities' rights?

The company commits to respect community rights.

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

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

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

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

The company commits to respect FPIC.

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

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

140. Examples of local stakeholder engagement to prevent conflicts?

[Externally verified] The company reports that its forest plantations have each set up an engagement mechanism working group assuming responsibility for devising community engagement plans and staying in touch with local villagers through visits, notices, and exchange meetings; conducting thorough communication with community members before undertaking forestry operations to ensure no major negative impact is caused by harvesting and transportation, plantation surveys, or other related activities.

141. Details of process for addressing land conflicts available?

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

143. 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 does not operate in a country currently covered by Open Timber Portal.

144. 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 has plantation-based operations OR does not produce wood/wood fibre.

145. Commitment to provide essential community services and facilities ?

The company commits to support community development and public services.

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

The company reports that it has provided pre-school education, contributed to the construction of schools, and helped provide sports facilities.

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

148. 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 does not operate in a country currently covered by Open Timber Portal.

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

The company makes this commitment through the PEFC International Chain of Custody Standard (PEFC ST 2002:2020). Partial points have been awarded as the requirements do not fully meet the SPOTT scoring criteria.

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

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

Comprehensive, externally verified points have been awarded on the basis of the company's PEFC FM certification (PEFC ST 1003:2018) as the requirements fully meet the SPOTT indicator criteria. Additional points have been awarded according to the percent of company landbank certified by PEFC.

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

The company commits to prohibit gender related discrimination with regards to employment.

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

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

155. Percentage or number of temporary employees?

156. Reports gender balance of employees?

4474 (22.7%) - The company reports that 22.70% of employees are female.

157. Commitment to pay a living wage?

158. Commitment to pay a living wage applies to all suplliers?

159. Progress on commitment to pay a living wage?

160. Reporting of salary by gender?

161. Commitment to address occupational health and safety?

The company makes this commitment through the PEFC International Chain of Custody Standard (PEFC ST 2002:2020). Partial points have been awarded as the requirements do not full meet the SPOTT scoring criteria.

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

163. Provision of personal protective equipment and related training?

Comprehensive, externally verified points have been awarded on the basis of the company's PEFC FM certification (PEFC ST 1003:2018) as the requirements fully meet the SPOTT indicator criteria. Additional points have been awarded according to the percent of company landbank certified by PEFC.

164. Time lost due to work-based injuries?

1.25 - In 2022, the company's lost time injury rate was 1.25.

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

1 - Data as of 2022.

166. Commitment to support smallholders?

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

168. Number or percentage of outgrower scheme and/or independent smallholders involved in programme?

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

The company has a supplier risk assessment process that includes ongoing monitoring and engagement with the suppliers to ensure they conform with the company's policies.

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

171. Suspension or exclusion criteria for suppliers?

The company makes this commitment through the PEFC International Chain of Custody Standard (PEFC ST 2002:2020). Partial points have been awarded as the requirements do not full meet the SPOTT scoring criteria.

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

173. Proportion of supply from suppliers that is verified as deforestation and/or conversion-free (DCF)?

174. Commitment to ethical conduct and prohibition of corruption?

The company commits to ethical conduct and prohibition of corruption.

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

The company requires all suppliers to sign an anti-corruption statement.

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

[Externally verified] The company reports it has conducted various training sessions for employees related to ethical conduct and prohibition of corruption.

177. 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 does not operate in a country currently covered by Open Timber Portal.

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

179. 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 does not operate in a country currently covered by Open Timber Portal.

180. Whistleblowing procedure?

The company has detailed its whistleblowing procedure in its latest sustainability report.

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

The company makes this commitment through the PEFC International Chain of Custody Standard (PEFC ST 2002:2020). Partial points have been awarded as the requirements do not full meet the SPOTT scoring criteria.

182. Details of complaints and grievances disclosed?