APP China

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

The company has a Forest Protection Policy, Sustainable Management Policy, and Environmental Policy. It is not clear if these policies apply to all of the company's operations.

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

Only one sustainability-related policy refers to suppliers and it is not clear if the commitments apply to all of the company's suppliers. The policy is not comprehensive enough on its own to score points.

3. High-level position of responsibility for sustainability?

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

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

337 - The company does not report the percentage or number of women in its senior management team, only the percentage and number of women in any management position, hence no points can be awarded.

6. Percentage or number of women board members?

No data available.

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 reported that it partners with a number of colleges, universities, and research institutes, such as Guangxi Academy of Sciences, Hainan University, and Guangdong Eco-Engineering Polytechnic, in carrying out projects on ecological monitoring, plant diversity monitoring, etc. However, it has limited details on how they are reducing negative environmental or social outcomes associated with timber and pulp production.

9. Sustainability report published within last two years?

The company published its most recent sustainability report in 2022.

10. Reports through standardised reporting systems?

The company's reports a GRI index in its 2021 sustainability report which is prepared in accordance with the core option of the GRI standards 2020.

11. Climate risks assessment available?

The company reported in its latest sustainability report that it has identified and assessed the challenges and potential impacts of climate related factors on its production and operations and formulated low-carbon transition strategies, however only limited information on actual and potential impacts of climate change on the company, metrics, targets and processes used to assess or manage climate risks.

12. Natural capital assessment available?

13. Lists countries and operations?

The company has listed its PEFC certified forestry and mill operations in China, but it is unclear if this covers all of its operations.

14. Lists countries sourcing from?

The company reports its pulp procurement by broad geographical regions and not specific countries.

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

270911 - The company states that it has 270,911 ha of forest plantations.

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

0

17. Total area of forest plantation (ha)?

270911 - By the end of 2021, the company's plantations totalled an area of 270,911 hectares.

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

0

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

0

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

The company states that as of the end of 2021, 54% of its plantations had completed an HCV assessment. As this information does not clearly show the total conversation set-aside area, only partial points can be awarded.

21. Area of Intact Forest Landscape (ha)?

0

22. Number of Forest Management Units (FMUs)?

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

23. Maps of forest management units (FMUs)?

24. Forest management plans available for all FMUs?

Forest management plans for all listed PEFC FM certified forestry companies are available, but it is unclear if these cover all the company's FMUs.

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 doesn't operate in a geography 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 doesn't operate in a geography 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 doesn't operate in a geography currently covered by Open Timber Portal.

29. Names and locations 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?

16 - In 2021 the company reported that 16 pulp and paper mills were PEFC CoC certified, but it is unclear if this represents all mills, so only partial points can be awarded.

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

[Externally verified] 90.9% - In 2021 the company stated that 90.9% of its plantation forest area was CFCC/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?

21.13% - In 2021 the company reported that 21.13% of total woodchips and 17.96% of total wood pulp procured is certified.

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)?

246257 (90.9%) - In 2021 the company stated that 246,257.2 hectares or 90.9% of its plantation forest area was CFCC/PEFC FM certified.

52. Commitment to zero conversion of natural ecosystems?

The 3 provisions within the company's sustainable management policy contains a commitment to zero conversion of natural ecosystems.

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

The company's sustainable management policy applies to business partners, but it is unclear if this covers all suppliers.

54. Commitment to zero deforestation?

The company's policies state that it will only operate in non-natural forests and will eliminate illegal logging, but it is unclear if there is commitment to zero deforestation, therefore partial points awarded.

55. Commitment to zero deforestation applies to all suppliers?

The company's sustainable management policy applies to business partners, but it is unclear if this covers all suppliers.

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

The company's forest protection policy, effective 1 Feb 2013, is committed to high conservation value forests and high carbon reserves. The company and its suppliers will only operate in non-natural forest areas in the future, but it is unclear if the effective date of the policy is equivalent to a cut-off date.

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

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

In 2021, the company incorporated relevant parameters such as biodiversity conservation and the maintenance of ecosystem stability into its annual environmental indicator system and started to assess the performance on a weekly, monthly, and quarterly basis. Methodology, extent of area being monitored for deforestation and/or ecosystem conversion, and/or timeframe is unclear.

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's environmental policy states a commitment to protect biodiversity. However no policy or time-bound commitment is provided and therefore no points can be awarded.

66. Biodiversity policy applies to all suppliers?

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

The company reports it has identified species but has not classified them according to an appropriate system. The list is not publicly available and therefore no points can be awarded.

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 makes this commitment through the PEFC International Standard (PEFC ST 1003:2018). As the requirements do not fully meet the SPOTT indicator criteria partial points have therefore been awarded on the basis of the company's PEFC certified landbank.

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

71. Commitment to protect forest areas from illegal activities?

The company makes this commitment through the PEFC International Standard (PEFC ST 1003:2018). Full points have therefore been awarded on the basis of the company's PEFC certified landbank (either 100% or >75% and a further commitment to be 100% certified within 5 years.).

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 tree 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 all suppliers to conduct HCV assessments.

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 commits its suppliers to High Carbon Stock (HCS) but does not specify the High Carbon Stock Approach.

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 doesn't operate in a geography 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?

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

97. Evidence of implementing reduced impact logging practices?

98. Commitment to zero burning?

The company prohibits contractors and workers from using fire for production in the forestland, such as burning vegetated land or performing controlled burns as part of its key biodiversity conservation measures. Unclear commitment to zero burning.

99. Commitment to zero burning applies 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?

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

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

The company only states a commitment to reduce GHGs without mentioning time-bound targets.

104. GHG emissions intensity?

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

The company only reported its gross emissions from 8 mill operations.

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?

The company reports that one of its subsidiaries has set a goal to reduce water consumption by 2% every year to 6.5 tons of water used per ton of paper produced. Only partial points could be awarded as this commitment only refers to a limited sub-set of company operations.

110. Water use intensity?

111. Progress towards commitment on water use intensity?

The company reports on total water withdrawal for the last three years, and it has increased in 2021. As water use has not improved, no points awarded.

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

As of 2021, the company's COD emissions per ton of paper produced and per ton of pulp produced levels are within legal limits.

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

The company reports progress data on COD emissions per ton of paper: 0.24kg (2021), 0.22kg (2020), 0.29kg (2019) and COD emissions per ton of pulp: 0.86kg (2021), 0.85kg (2020), 0.63kg (2019). Figures are not consistently improving hence partial scoring.

114. Treatment of pulp and paper mill effluent?

[Externally verified] The company provides multiple pieces of evidence of wastewater treatment. Wastewater data has been externally verified in 2021.

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 95.74%, but it is unclear if this was achieved due to closed-loop water treatment systems. Wastewater data has been externally verified.

117. Commitment to protect natural waterways through buffer zones?

The company reports it has created 'buffer zones' at a particular site, however no reference is made to protecting natural waterways and this is not a clear commitment across all operations hence no points.

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?

The company states it controls the use of chemicals, but does not mention minimising chemical pesticide or fertiliser use.

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

The company commits 'partners and other interested parties' to control the use of chemicals, it does not mention minimising chemical pesticide or fertiliser use. It is unclear if this covers all suppliers, hence partial scoring.

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

The company reports that in 2021, one of its subsidiaries launched a new product that uses natural-color chemi-mechanical pulp thereby scaling back the use of bleaching chemicals in the production process.

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

The company commits to no use of chemicals banned by the World Health Organisation (WHO).

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

The company commits 'partners and other interested parties' to no use of chemicals banned by the World Health Organisation (WHO). It is unclear if this covers all suppliers, hence partial scoring.

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?

The company commits to human rights principles as a member of the UN Global Compact.

131. Commitment to human rights applies to all suppliers?

The company commits all suppliers to the Universal Declaration of Human Rights.

132. Progress on human rights commitment ?

133. Commitment to respect indigenous and local communities' rights?

The company commits to respect community rights but does not reference the UN Declaration on the Rights of Indigenous Peoples or to the ILO Indigenous and Tribal Peoples Convention (no. 169).

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

The company commits 'partners and other interested parties' to respect community rights but does not reference the UN Declaration on the Rights of Indigenous Peoples or to the ILO Indigenous and Tribal Peoples Convention (no. 169). It is unclear if this covers 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 FPIC.

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

The company commits 'partners and other interested parties' to FPIC. It is unclear if this covers all suppliers, hence partial scoring.

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

140. Examples of local stakeholder engagement to prevent conflicts?

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, plantations survey, or other related activities.

141. Details of process for addressing land conflicts available?

The company states only that a conflict/dispute resolution mechanism has been introduced. No further details are 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 doesn't operate in a geography currently covered by Open Timber Portal.

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

145. Commitment to provide essential community services and facilities ?

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

The company reports that it has built up a four-pronged CSR system consisting of national public emergencies, culture, sports, and education, community development, and rural revitalisation, and provides examples of the community services and facilities.

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

The company is working on providing quality education and work 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 doesn't operate in a geography 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 states that it respects and safeguards the rights and interests of employees and prohibits any form of discriminatory provisions including gender.

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. Percentage or number of women employees?

4474 (23.27%) - The company reports the number of women directly employed to be 4,302 and indirectly employed to be 172 in 2021.

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 FSC Chain of Custody Certification Standard (FSC-STD-40-004 V3-1) and the PEFC International Chain of Custody Standard (PEFC ST 2002:2020). As the requirements of these certifications do not fully meet the SPOTT indicator criteria partial points have been awarded on the basis of the company's FSC/PEFC CoC certification.

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

The company commits 'partners and other interested parties' to address occupational health and safety but does not make the reference to ILO Code of Practice on Safety and Health in Forestry Work. It is also unclear if this covers all suppliers, hence partial scoring.

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?

2234.87 - Hours lost per million working hours. Data as of 2021.

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

0 - Data as of 2021.

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 suppliers on compliance with company's policy and/or legal requirements?

The company reports that its suppliers are categorised as low-, medium-, and high risk based on a risk assessment that looks into their financial status, credit profile, legal risk, reputational risk, and supply capacity, among other areas. They are also assessed on third-party certifications in health, safety, environment, etc. Suppliers are subject to ongoing risk monitoring, and due diligence assessments are reviewed at random intervals.

170. Number or percentage of 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 fully 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 direct and indirect supply that comes from FMUs which are compliant with timber and pulp sourcing policies?

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 commits to ethical conduct and prohibition of corruption. This applies to all suppliers.

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

The company reports it conducts various training sessions for employees related to ethical conduct and prohibition of corruption, and some 25,000 employees signed the pledge of integrity.

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 doesn't operate in a geography 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 doesn't operate in a geography currently covered by Open Timber Portal.

180. Whistleblowing procedure?

The company has an email address and phone number to report whistleblowing complaints. No further details on the whistleblowing process could be found.

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

The company makes this commitment through the FSC Chain of Custody Certification Standard (FSC-STD-40-004 V3-1) and the PEFC International Chain of Custody Standard (PEFC ST 2002:2020). As the requirements of these certifications do not fully meet the SPOTT indicator criteria partial points have been awarded on the basis of the company's FSC/PEFC CoC certification.

182. Details of complaints and grievances disclosed?