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  • Substantiated concerns
    • In October 2021, Korindo Group was disassociated from FSC. This follows failure to meet conditions set by FSC to address activities relating to deforestation, destruction of HCVs and traditional and human rights violations. See further details and updates here.
  • Media Monitor
    • ZSL's SPOTT team monitors international media for news on assessed companies, collecting articles about pertinent activities. They don't confirm the accuracy of the media coverage, but it can be leveraged by SPOTT users to gain insights into a company's operations and possible risks. To access this company's media reports, scroll down or click here.

Company assessment: Korindo Group – July 2018

Assessment date:

Total: 34.3% 31 / 90.5
  • Sustainability policy and leadership Sustainability policy and leadership
    1.5 / 6 25%
    • Y
      1 / 1

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

    • N
      0 / 1

      2. Sustainability policy or commitment applies to direct and third-party suppliers?

    • N
      0 / 1

      3. High-level position of responsibility for sustainability?

    • N
      0 / 1

      4. Sustainability report published within last two years?

    • N
      0 / 1

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

    • P
      0.5 / 1

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

      The company contributed to the Kampar REDD+ project to protect peat swamp forest and reduce greenhouse gas emissions. They state that 'KORINDO Group contributed to this project by spearheading research and project development together with research institutions from various sectors', but no further details are given.

  • Landbank, FMUs and mills Landbank, FMUs and mills
    3 / 12 25%
    • P
      0.5 / 1

      7. Lists countries and operations?

      The company only provides a map with the countries in which it operates. Details are not given,.

    • N
      0 / 1

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

      524515 - Figure provided is undated.

    • Y
      1 / 1

      9. Total area of forest plantation (ha)?

      94384 - The company state they have a concession area of 94,384 ha and that the effective land used for planting and producing is approximately 79,924 ha.

    • N

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

      This indicator is disabled as the company has informed ZSL that it does not source wood/wood fibre from outgrowers or independent suppliers.

    • N
      0 / 1

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

    • N
      0 / 1

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

      The company commits to 'establishing, maintaining, and securing 41,012 ha of protected areas that are effective and proportional'. However, this figure is undated and it is unclear if this area is already set aside.

    • N
      0 / 1

      13. Area of Intact Forest Landscape (ha)?

    • N
      0 / 1

      14. Number of Forest Management Units (FMUs)?

    • P
      0.5 / 1

      15. Maps of forest management units (FMUs)?

      4 - Four FMUs are shown on Global Forest Watch, but unclear if these cover all of the company's FMUs.

    • N
      0 / 1

      16. Forest management plans available for all FMUs?

    • N
      0 / 1

      17. Monitoring of forest management plan implementation?

    • Y
      1 / 1

      18. Number of company owned pulp and paper mills?

      1

    • N
      0 / 1

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

    • N

      20. Number of company owned sawmills?

      This indicator is disabled as the company has informed ZSL that it does not own sawmills.

    • N

      21. Maps or addresses of company owned sawmills?

      This indicator is disabled as the company has informed ZSL that it does not own sawmills.

  • Deforestation and biodiversity Deforestation and biodiversity
    7.5 / 14 53.6%
    • Y
      1 / 1

      22. Commitment to zero conversion of natural forest?

    • N

      23. Zero conversion commitment applies to outgrower scheme and independent suppliers?

      This indicator is disabled as the company has informed ZSL that it does not source wood/wood fibre from outgrowers or independent suppliers.

    • Y
      1 / 1

      24. Commitment to minimise the impact of logging roads?

    • P
      0.5 / 1

      25. Commitment to protect forest areas from illegal activities?

      The company only commits to protect forest areas from certain forms of illegal activities.

    • P
      0.5 / 1

      26. Evidence of monitoring deforestation?

      The company monitors deforestation by Landsat imagery every two years however the extent of the area monitored is unclear.

    • N
      0 / 1

      27. Amount of deforestation recorded?

    • Y
      1 / 1

      28. Commitment to biodiversity conservation?

    • Y
      1 / 1

      29. Commitment to set aside areas for conservation?

    • P
      0.5 / 1

      30. Examples of habitat management and/or habitat restoration of set-aside areas?

      The company has contributed to tree planting, but no other examples could be found.

    • P
      0.5 / 1

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

      The company refers to a partnership with USAID LESTARI on the development of a sustainable landscape, but it is unclear what the company's involvement is in the project.

    • P
      0.5 / 1

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

      The company commits to protect species of conservation concern however no information on the system of species classification is given.

    • N
      0 / 1

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

    • Y
      1 / 1

      34. Commitment not to use genetically modified organisms?

      The company has committed to not be directly or indirectly involved in the introduction of genetically modified organisms in forestry operations. This commitment is made through the FSC Policy for Association (FSC-POL-01-004).

    • N
      0 / 1

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

    • N
      0 / 1

      36. Examples of species conservation activities?

  • HCV, HCS and impact assessments HCV, HCS and impact assessments
    2 / 7 28.6%
    • Y
      1 / 1

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

    • N

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

      This indicator is disabled as the company has informed ZSL that it does not source wood/wood fibre from outgrowers or independent suppliers.

    • N
      0 / 1

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

    • N
      0 / 1

      40. High Conservation Value (HCV) assessments available?

      No HCV assessments for the company's forestry operations could be found. HCV assessments on the HCV Resource Network for the company's palm oil operations are not available as they are either unsatisfactory or not ready for Quality Panel review.

    • N
      0 / 1

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

      No HCV assessments for the company's forestry operations could be found. HCV assessments on the HCV Resource Network for the company's palm oil operations are not available as they are either unsatisfactory or not ready for Quality Panel review.

    • Y
      1 / 1

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

    • N

      43. High Carbon Stock (HCS) assessments available?

      This indicator is disabled as the company has informed ZSL that it hasn't expanded its plantation area since April 2015.

    • N
      0 / 1

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

    • N
      0 / 1

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

  • Soils, fire and GHG emissions Soils, fire and GHG emissions
    3 / 10 30%
    • N
      0 / 1

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

    • Y
      1 / 1

      47. Commitment to reduced impact logging?

    • N

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

      This indicator is disabled as the company has informed ZSL that it does not have landbank on peat.

    • N

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

      This indicator is disabled as the company has informed ZSL that it does not have suppliers with landbank on peat.

    • N

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

      This indicator is disabled as the company has informed ZSL that it does not have landbank on peat.

    • N
      0 / 1

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

    • Y
      1 / 1

      52. Commitment to zero burning?

    • N

      53. Commitment to zero burning applies to outgrower scheme and independent suppliers?

      This indicator is disabled as the company has informed ZSL that it does not source wood/wood fibre from outgrowers or independent suppliers.

    • Y
      1 / 1

      54. Evidence of management and monitoring fires?

    • N
      0 / 1

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

    • N
      0 / 1

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

    • N
      0 / 1

      57. Progress towards reducing GHG emission intensity?

    • N
      0 / 1

      58. Report GHG emissions from land use change?

    • N
      0 / 1

      59. Methodology used to calculate GHG emissions?

  • Water, chemical and waste management Water, chemical and waste management
    4 / 12 33.3%
    • Y
      1 / 1

      60. Time-bound commitment to improve water quality?

      The company states to comply with Indonesian regulations and maintains water standard established by local government: max BOD5 75, and COD 160.

    • Y
      1 / 1

      61. Progress towards commitment on water quality?

      The company states that it always observes water standards established by local government (max BOD5 75, and COD 160).

    • N
      0 / 1

      62. Protection of natural waterways through buffer zones?

    • N
      0 / 1

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

    • N

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

      This indicator is disabled as the company has informed ZSL that it does not own sawmills.

    • N
      0 / 1

      65. Time-bound commitment to improve water use?

    • N
      0 / 1

      66. Progress towards commitment on water use?

    • Y
      1 / 1

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

    • N

      68. Evidence of minimising or recycling solid waste produced during sawmilling processes?

      This indicator is disabled as the company has informed ZSL that it does not own sawmills.

    • N
      0 / 1

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

    • N
      0 / 1

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

    • N
      0 / 1

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

    • Y
      1 / 1

      72. Integrated Pest Management (IPM) approach?

    • N
      0 / 1

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

  • Community, land and labour rights Community, land and labour rights
    7.5 / 17.5 42.9%
    • Y
      1 / 1

      74. 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 not be directly or indirectly involved in the violation of human rights in forestry operations. This commitment is made through the FSC Policy for Association (FSC-POL-01-004), which defines human rights as those established through the UN Declaration of Human Rights.

    • N

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

      This indicator is disabled as the company has informed ZSL that it does not source wood/wood fibre from outgrowers or independent suppliers.

    • Y
      1 / 1

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

      The company has committed to not be directly or indirectly involved in the violation of human rights in forestry operations. This commitment is made through the FSC Policy for Association (FSC-POL-01-004), which encompasses the rights of Indigenous and Tribal Peoples as established by the ILO Convention 169.

    • P
      0.5 / 1

      77. Commitment to respect legal and customary property rights?

      The company has committed to not be directly or indirectly involved in the violation of traditional rights in forestry operations. This commitment is made through the FSC Policy for Association (FSC-POL-01-004), which encompasses customary rights. This policy does not reference legal rights and no reference to legal rights could be found in company sources.

    • Y
      1 / 1

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

    • N

      79. FPIC commitment applies to independent suppliers?

      This indicator is disabled as the company has informed ZSL that it does not source wood/wood fibre from independent suppliers.

    • N
      0 / 1

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

    • N
      0 / 1

      81. Details of process for addressing land conflicts available?

    • N
      0 / 1

      82. Commitment to mitigate impacts on food security?

    • P
      0.5 / 1

      83. Commitment to provide essential community services and facilities?

      The company does not have a commitment but provides examples of services and facilities it provides to communities.

    • Y
      1 / 1

      84. Commitment to respect all workers' rights?

    • Y
      1 / 1

      85. Reference to Fundamental ILO Conventions?

      The company has committed to not be directly or indirectly involved in the violation of any of the ILO Core Conventions. This commitment is made through the FSC Policy for Association (FSC-POL-01-004).

    • Y
      0.5 / 0.5

      86. Total number of employees?

      30000 - Figure recorded is for the company's entire operations. The company also states a figure of 1,401 direct workers within the company's Timber Plantation Division.

    • Y
      1 / 1

      87. Percentage or number of temporary employees?

      30%

    • N
      0 / 1

      88. Percentage or number of women employees?

      20% - Figure is undated.

    • N
      0 / 1

      89. Commitment to pay minimum wage?

    • N
      0 / 1

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

    • N
      0 / 1

      91. Time lost due to work-based injuries?

    • N
      0 / 1

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

    • N
      0 / 1

      93. Provision of personal protective equipment and related training?

  • Certification standards Certification standards
    2 / 6 33.3%
    • N
      0 / 1

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

      The company state they have some certification, including SVLK, PHPL, FLEGT and FSC but it is unclear how much of their FMUs these certificates cover.

    • N

      95. Percentage wood/wood fibre supply verified as being in legal compliance by a third party?

      This indicator is disabled as the company has informed ZSL that it does not source wood/wood fibre from outgrowers or independent suppliers.

    • N
      0 / 1

      96. Time-bound plan for achieving 100% FSC FM certification of FMUs?

    • N

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

      This indicator is disabled as the company has informed ZSL that it does not source wood/wood fibre from outgrowers or independent suppliers.

    • N
      0 / 2

      98. Percentage area (ha) FSC FM certified?

    • N

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

      This indicator is disabled as the company has informed ZSL that it does not source wood/wood fibre from outgrowers or independent suppliers.

    • Y
      2 / 2

      100. Percentage area (ha) PEFC certified?

      94238 (100%) - The company's operating subsidiary has PEFC certification for 94,384 ha
      .

  • Smallholders and suppliers Smallholders and suppliers
    0 / 0 0%
    • N

      101. Programme to support outgrower scheme smallholders?

      This indicator is disabled as the company has informed ZSL that it does not source wood/wood fibre from outgrowers.

    • N

      102. Percentage of outgrower scheme smallholders involved in programme?

      This indicator is disabled as the company has informed ZSL that it does not source wood/wood fibre from outgrowers.

    • N

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

      This indicator is disabled as the company has informed ZSL that it does not source wood/wood fibre from outgrowers or independent suppliers.

    • N

      104. Suspension or exclusion criteria for suppliers?

      This indicator is disabled as the company has informed ZSL that it does not source wood/wood fibre from outgrowers or independent suppliers.

    • N

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

      This indicator is disabled as the company has informed ZSL that it does not source wood/wood fibre from outgrowers or independent suppliers.

  • Governance and grievances Governance and grievances
    0.5 / 6 8.3%
    • N
      0 / 1

      106. Commitment to ethical conduct and prohibition of corruption?

    • N
      0 / 1

      107. Whistleblowing procedure?

    • P
      0.5 / 1

      108. Own grievance or complaints system?

      The company has an 'assistance and grievance procedure', but this appears to only cover CSR issues.

    • N
      0 / 1

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

    • N
      0 / 2

      110. Details of grievances disclosed?

Media monitor: Korindo Group

SPOTT monitors global media sources for coverage of assessed companies. The media monitor gathers reports about specific activities related to the assessment indicator categories. ZSL does not assess or score the validity of media coverage, but users can explore the media monitor to provide context on implementation, and infer risks associated with reported operations on the ground. The media monitor undergoes a full update at the time of publishing an assessment round, with ad-hoc updates throughout the year. This is not an exhaustive list of all media reports relevant to the company.

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