APP China

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

The company states in its sustainability report that it has a Forest Operation Policy and an Environmental Guidance Policy. However, these policies could not be identified on the company's website.

2. Sustainability policy or commitment applies to all sourcing?

3. High-level position of responsibility for sustainability?

The company's Sustainable Development and Corporate Social Responsibility Committee is chaired by the senior executive vice president.

4. One or more board members have responsibility for sustainability?

This indicator is disabled as the company is not publicly listed.

5. Percentage or number of women board members?

This indicator is disabled as the company is not publicly listed.

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

7. Sustainability report published within last two years?

2017

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

APP Group is a member of TFT, TFA 2020, GRI, HCSA, HCVRN, Natural Capital Coalition.

9. Activities with government, NGOs or academic institutions to improve the sustainability of forest products?

United Nations Global Compact China, a regional network dedicated to promote the sustainable development of Chinese enterprises.

10. Climate risks assessment available?

11. Natural capital assessment available?

12. Lists countries and operations?

Limited information available. Operations focused on the Yangtze River and Pearl River Delta regions.

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

This indicator is disabled as the company's reporting broadly suggests that it only produces wood/wood fibre from plantation forests. Please note that ZSL has been unable to confirm this.

14. Total area of forest plantation (ha)?

288208

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

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

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

18. Area of Intact Forest Landscape (ha)?

This indicator is disabled as the company's reporting broadly suggests that it doesn't have any intact forest landscapes within its landbank. Please note that ZSL has been unable to confirm this.

19. Number of Forest Management Units (FMUs)?

The company only states it has over 20 plantation farms and this information is undated.

20. Maps of forest management units (FMUs)?

21. Forest management plans available for all FMUs?

The company has committed to compile and implement forest management plans (2012-13 Sustainability Report). However, these FMPs could not be located.

22. Monitoring of forest management plan implementation?

23. Company has provided valid legal documents to Open Timber Portal on use rights (at the time of SPOTT assessments)?

This indicator is disabled as the company's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this.

24. 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's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this.

25. 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's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this.

26. Number of company owned pulp and paper mills?

The company reports different figures for the same period that are contradictory (nine / over thirty).

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

28. Number of company owned sawmills?

This indicator is disabled as the company's reporting broadly suggests that it doesn't own sawmills. Please note that ZSL has been unable to confirm this.

29. Maps or addresses of company owned sawmills?

This indicator is disabled as the company's reporting broadly suggests that it doesn't own sawmills. Please note that ZSL has been unable to confirm this.

30. Number of supplier mills?

31. Maps or addresses of supplier mills?

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

33. Procedures to trace raw materials to FMU level?

34. Percentage of supply traceable to country level (above 80%)?

PEFC CoC-certified pulp procured accounts for 17% of all pulp purchased and PEFC CoC-certified wood fibre accounts for 16.9% of all wood fibre purchased.

35. Percentage of supply traceable to FMU level (above 75%)?

PEFC CoC-certified pulp procured accounts for 17% of all pulp purchased and PEFC CoC-certified wood fibre accounts for 16.9% of all wood fibre purchased.

36. Commitment to zero conversion of natural forest?

The company and its suppliers will only develop areas that are not forested, as identified through independent HCV and HCS assessments. This policy became effective on February 1st 2013.

37. Zero conversion commitment applies to all sourcing?

38. Commitment to minimise the impact of logging roads?

This indicator is disabled as the company's reporting broadly suggests that it only produces wood/wood fibre from plantation forests. Please note that ZSL has been unable to confirm this.

39. Commitment to protect forest areas from illegal activities?

The company commits to eliminate illegal logging. No references to wider forms of illegality could be found.

40. Evidence of monitoring deforestation?

41. Amount of deforestation recorded?

42. Commitment to biodiversity conservation?

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

Compiled the Inventory of Protected State-level Animals and Plants in Hainan to assist employees and contractors in protection efforts. To protect the natural vegetation in mountainous areas, the company sets aside 10-metre buffer zones and plans the composition of tree species according to local conditions.

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

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

Species have been identified but not classified according to an appropriate system. The inventory also only covers species in Hainan.

46. Commitment to sustainably manage the use of non-timber forest products (NTFPs)?

This indicator is disabled as the company's reporting broadly suggests that it only produces wood/wood fibre from plantation forests. Please note that ZSL has been unable to confirm this.

47. Commitment not to use genetically modified organisms?

The company has made a commitment to not use transgenic tree species.

48. 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.

49. HCV commitment applies to all sourcing?

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

This indicator is disabled until sufficient number of HCV ALS licensed assessors are available for the location where the company operates.

51. High Conservation Value (HCV) assessments available?

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

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

The company will only develop areas that are not forested, as identified through independent HCV and HCS assessments. It does not specify whether it commits to the HCS Approach.

54. High Carbon Stock (HCS) assessments available?

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

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

57. 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's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this.

58. Commitment to best management practices for soils and/or peat?

The company commits only to reduce soil erosion. It reports that it has no plantation operations on peatland.

59. Commitment to reduced impact logging?

This indicator is disabled as the company's reporting broadly suggests that it only produces wood/wood fibre from plantation forests. Please note that ZSL has been unable to confirm this.

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

This indicator is disabled as the company's reporting broadly suggests that it doesn't have landbank on peat. Please note that ZSL has been unable to confirm this.

61. Commitment on peatland planting applies to all sourcing?

This indicator is disabled as the company's reporting broadly suggests that it doesn't have suppliers with landbank on peat. Please note that ZSL has been unable to confirm this.

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

This indicator is disabled as the company's reporting broadly suggests that it doesn't have landbank on peat. Please note that ZSL has been unable to confirm this.

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

Provides evidence of soil management. The company does not have plantations on peat.

64. Commitment to zero burning?

65. Commitment to zero burning applies to all sourcing?

66. Evidence of management and monitoring fires?

The company states that it has strengthened its pre-warning systems for forest fires.

67. Details/number of hotspots/fires in FMUs controlled by the company?

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

The company only has a vague commitment to "conserve energy, reduce emissions and practice global leading environmental standards". This commitment is not target-based or time-bound.

69. Progress towards reducing GHG emission intensity?

70. Report GHG emissions from land use change?

71. Methodology used to calculate GHG emissions?

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

The company only has a general commitment to "minimise the emission of pollutants, including COD and BOD".

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

The company reports 0.26 kg of COD emission per ton of paper produced (national standard limit is 1.6 kg) and 1.99 kg of COD emissions per ton of pulp produced (national standard limit is 5 kg) in 2017.

74. Commitment to protection of natural waterways through buffer zones?

75. Evidence of treatment of pulp and paper mill effluent?

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

This indicator is disabled as the company's reporting broadly suggests that it doesn't own sawmills. Please note that ZSL has been unable to confirm this.

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

The company only has a general commitment to reducing water use in some mills through the UNGC 'Water Mandate', and has reduction targets in place for its mills. However, it does not disclose a time-bound target for improving water quality.

78. Progress towards commitment on water use intensity?

124417000 - The company reports figures on water use but not as water use intensity. The company used a total of 124,417,000 tons of water in 2016 compared to 118,173,907 tons in 2017.

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

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

The company states an intention to reduce the impact and use of "dangerous chemicals" and herbicides in its operations, but does not have a time-bound commitment.

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

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

83. Integrated Pest Management (IPM) approach?

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

85. Commitment to human rights, referencing the UN Declaration on Human Rights or UN Guiding Principles on Business and Human Rights?

The company has a commitment to respect human rights, but does not refer to UN Declaration on Human Rights or UN Guiding Principles on Business and Human Rights.

86. Commitment to human rights applies to all sourcing?

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

The company has a commitment to "acknowledge and respect rights of community citizens including traditional rights of ethnic minorities", but does not refer to the UN Declaration on Rights of Indigenous Peoples or ILO Indigenous and Tribal Peoples Convention.

88. Commitment to respect legal and customary property rights?

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

90. FPIC commitment applies to independent suppliers?

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

92. Examples of local stakeholder engagement to prevent conflicts?

93. 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.

94. Commitment to support the inclusion of women across forestry operations, including addressing barriers faced?

95. Commitment to provide essential community services and facilities?

96. 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's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this.

97. Commitment to respect all workers' rights?

The company commits to respecting labour rights, but does not specify that this commitment applies to all workers.

98. Reference to Fundamental ILO Conventions?

The company refers to all Fundamental ILO Conventions, except for No.138, on Minimum Age.

99. Commitment to eliminate gender related discrimination with regards to employment and occupation?

100. 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's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this.

101. Percentage or number of temporary employees?

102. Percentage or number of women employees?

27.44%

103. Payment of minimum wage?

The company states that it pays its employees above the minimum wage, but no evidence is provided.

104. Reporting of salary by gender?

105. Commitment to address occupational health and safety, referencing the ILO Code of Practice on Safety and Health in Forestry Work?

The company has a commitment to health and safety, but does not reference the ILO Code of Practice on Safety and Health in Forestry Work.

106. Time lost due to work-based injuries?

1090.55 - Hours lost per million working hours.

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

1

108. Provision of personal protective equipment and related training?

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

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

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

254660 (88.36%)

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

16.9%

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

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

115. Percentage area (ha) FSC FM certified?

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

117. Percentage of all wood/wood fibre supply traded/processed that are FSC certified (above 75%)?

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

254660 (88.36%)

119. Programme to support outgrower scheme smallholders?

120. Percentage of outgrower scheme smallholders involved in programme?

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

122. The company has a Due Diligence System (DDS)?

The company's Due Diligence System appears to only cover Hainan Jinhai Pulp & Paper.

123. Suspension or exclusion criteria for suppliers?

The company states that it will withdraw from 'all purchases and other agreements with any suppliers' that do not comply with its HCV, HCS, and natural forest protection commitments.

124. Percentage of suppliers assessed and/or engaged on compliance with company requirements?

125. Commitment to ethical conduct and prohibition of corruption?

126. 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's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this.

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

128. 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's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this.

129. Whistleblowing procedure?

The company has an email address to report whistleblowing. No details of the whistleblowing process could be identified.

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

The company states they have a complaints and disputes mechanism, but only limited information is available on this process.

131. Details of grievances disclosed?