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Korindo

Timber and pulp assessment
Total score: 40.2%
  • Latest update: July 2019
  • Next scheduled: July 2020
  • About this company:

    Established in 1969, Korindo is headquartered in Indonesia.

  • Landbank
    618,899 hectares
  • Thomson Reuters ticker:
    Private company
  • Bloomberg ticker:
    Private company
  • Website:
    http://www.korindo.co.id/

Company assessment: Korindo – July 2019

Assessment date:

Expand all categories
Total: 40.2% 37 / 92
  • Sustainability policy and leadership Sustainability policy and leadership
    2 / 8 25%
    • Yes
      1 / 1
      Source

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

    • 2. Sustainability policy or commitment applies to all sourcing?

      This indicator is disabled as the company has informed ZSL that it has no suppliers including outgrower scheme or independent suppliers

    • Partial
      0.5 / 1
      Source

      3. High-level position of responsibility for sustainability?

      The company has a Environment, Social, and Governance (ESG) Division however it is unclear what responsibility this Division has and how it relates to the rest of the organisation

    • 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

    • No
      0 / 1
      Source

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

    • No
      0 / 1
      Source

      7. Sustainability report published within last two years?

    • No
      0 / 1
      Source

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

    • Partial
      0.5 / 1
      Source

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

      The company mentions some activities (e.g. Kampar REDD+ project, USAID LESTARI) but they don't relate to forestry activities or it is unclear whether they do

    • No
      0 / 1
      Source

      10. Climate risks assessment available?

    • No
      0 / 1
      Source

      11. Natural capital assessment available?

  • Landbank, mills and traceability Landbank, mills and traceability
    6 / 11 54.5%
    6 media reports
    • Partial
      0.5 / 1
      Source

      12. Lists countries and operations?

      The company only provides a map with the countries in which it operates. No details on nature of operations within those countries are available

    • No
      0 / 1
      Source

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

      524,515 - Figure provided is undated

    • Yes
      1 / 1
      Source

      14. Total area of forest plantation (ha)?

      94,384 - The company states it has a concession area of 94,384 ha and that the effective land used for planting and producing is approximately 79,924 ha

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

      This indicator is disabled as the company has informed ZSL that it doesn't use outgrower schemes for wood/wood fibre production

    • Yes
      1 / 1
      Source

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

    • Yes
      1 / 1
      Source

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

      26,159

    • 18. Area of Intact Forest Landscape (ha)?

      This indicator is disabled as the company has informed ZSL that it doesn't have any intact forest landscapes within its landbank

    • Yes
      1 / 1
      Source

      19. Number of Forest Management Units (FMUs)?

    • Partial
      0.5 / 1
      Source

      20. Maps of forest management units (FMUs)?

      4 - Four FMUs are shown on Global Forest Watch:
      PT. BELANTARA SUBUR, PT. FAJAR SURYA SWADAYA,PT. KORINTIGA HUTANI(objectid 98,99)
      But it is unclear if these cover all of the company's FMUs

    • No
      0 / 1
      Source

      21. Forest management plans available for all FMUs?

    • No
      0 / 1
      Source

      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

    • Yes
      1 / 1
      Source

      26. Number of company owned pulp and paper mills?

      1

    • No
      0 / 1
      Source

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

    • 28. Number of company owned sawmills?

      This indicator is disabled as the company has informed ZSL that it doesn't own sawmills

    • 29. Maps or addresses of company owned sawmills?

      This indicator is disabled as the company has informed ZSL that it doesn't own sawmills

    • 30. Number of supplier mills?

      This indicator is disabled as the company has informed ZSL that it has no suppliers including outgrower scheme or independent suppliers

    • 31. Maps or addresses of supplier mills?

      This indicator is disabled as the company has informed ZSL that it has no suppliers including outgrower scheme or independent suppliers

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

      This indicator is disabled as the company has informed ZSL that it has no suppliers including outgrower scheme or independent suppliers

    • 33. Procedures to trace raw materials to FMU level?

      This indicator is disabled as the company has informed ZSL that it has no suppliers including outgrower scheme or independent suppliers

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

      This indicator is disabled as the company has informed ZSL that it has no suppliers including outgrower scheme or independent suppliers

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

      This indicator is disabled as the company has informed ZSL that it has no suppliers including outgrower scheme or independent suppliers

  • Deforestation and biodiversity Deforestation and biodiversity
    7 / 11 63.6%
    9 media reports
    • Yes
      1 / 1
      Source

      36. Commitment to zero conversion of natural forest?

    • 37. Zero conversion commitment applies to all sourcing?

      This indicator is disabled as the company has informed ZSL that it has no suppliers including outgrower scheme or independent suppliers

    • Yes
      1 / 1
      Source

      38. Commitment to minimise the impact of logging roads?

    • Partial
      0.5 / 1
      Source

      39. Commitment to protect forest areas from illegal activities?

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

    • Partial
      0.5 / 1
      Source

      40. Evidence of monitoring deforestation?

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

    • No
      0 / 1
      Source

      41. Amount of deforestation recorded?

    • Yes
      1 / 1
      Source

      42. Commitment to biodiversity conservation?

    • Yes
      1 / 1
      Source

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

    • Partial
      0.5 / 1
      Source

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

      The company mentions implementing sustainable landscape planning and management, however, it does not cover all the operations of Korindo

    • Partial
      0.5 / 1
      Source

      45. Identified 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

    • No
      0 / 1
      Source

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

    • Yes
      1 / 1
      Source

      47. 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)

  • HCV, HCS and impact assessments HCV, HCS and impact assessments
    3 / 7 42.9%
    4 media reports
    • Yes
      1 / 1
      Source

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

    • 49. HCV commitment applies to all sourcing?

      This indicator is disabled as the company has informed ZSL that it has no suppliers including outgrower scheme or independent suppliers

    • No
      0 / 1
      Source

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

    • No
      0 / 1
      Source

      51. 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

    • No
      0 / 1
      Source

      52. 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

    • Yes
      1 / 1
      Source

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

    • 54. 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

    • Yes
      1 / 1
      Source

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

    • No
      0 / 1
      Source

      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

  • Soils, fire and GHGs Soils, fire and GHGs
    4 / 10 40%
    3 media reports
    • No
      0 / 1
      Source

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

    • Yes
      1 / 1
      Source

      59. Commitment to reduced impact logging?

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

      This indicator is disabled as the company has informed ZSL that it doesn't have landbank on peat

    • 61. Commitment on peatland planting applies to all sourcing?

      This indicator is disabled as the company has informed ZSL that it has no suppliers including outgrower scheme or independent suppliers

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

      This indicator is disabled as the company has informed ZSL that it doesn't have landbank on peat

    • Yes
      1 / 1
      Source

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

      The company provides evidence for reducing erosion and fertilising soil through planting trees program

    • Yes
      1 / 1
      Source

      64. Commitment to zero burning?

    • 65. Commitment to zero burning applies to all sourcing?

      This indicator is disabled as the company has informed ZSL that it has no suppliers including outgrower scheme or independent suppliers

    • Yes
      1 / 1
      Source

      66. Evidence of management and monitoring fires?

    • No
      0 / 1
      Source

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

    • No
      0 / 1
      Source

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

    • No
      0 / 1
      Source

      69. Progress towards reducing GHG emission intensity?

    • No
      0 / 1
      Source

      70. Report GHG emissions from land use change?

    • No
      0 / 1
      Source

      71. Methodology used to calculate GHG emissions?

  • Water, chemical and waste management Water, chemical and waste management
    4 / 12 33.3%
    7 media reports
    • Yes
      1 / 1
      Source

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

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

    • Yes
      1 / 1
      Source

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

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

    • No
      0 / 1
      Source

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

    • No
      0 / 1
      Source

      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 has informed ZSL that it doesn't own sawmills

    • No
      0 / 1
      Source

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

    • No
      0 / 1
      Source

      78. Progress towards commitment on water use intensity?

    • Yes
      1 / 1
      Source

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

      The company states that it does not use chlorine chemical for bleaching

    • No
      0 / 1
      Source

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

    • No
      0 / 1
      Source

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

    • No
      0 / 1
      Source

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

    • Yes
      1 / 1
      Source

      83. Integrated Pest Management (IPM) approach?

    • No
      0 / 1
      Source

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

  • Community, land and labour rights Community, land and labour rights
    8.5 / 20 42.5%
    4 media reports
    • Yes
      1 / 1
      Source

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

      Human rights policy

    • 86. Commitment to human rights applies to all sourcing?

      This indicator is disabled as the company has informed ZSL that it has no suppliers including outgrower scheme or independent suppliers

    • Yes
      1 / 1
      Source

      87. 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

    • Partial
      0.5 / 1
      Source

      88. 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

    • Yes
      1 / 1
      Source

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

    • 90. FPIC commitment applies to independent suppliers?

      This indicator is disabled as the company has informed ZSL that it has no suppliers including outgrower scheme or independent suppliers

    • No
      0 / 1
      Source

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

    • No
      0 / 1
      Source

      92. Examples of local stakeholder engagement to prevent conflicts?

    • No
      0 / 1
      Source

      93. Details of process for addressing land conflicts available?

    • No
      0 / 1
      Source

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

    • Yes
      1 / 1
      Source

      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

    • Yes
      1 / 1
      Source

      97. Commitment to respect all workers' rights?

    • Yes
      1 / 1
      Source

      98. 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)

    • Yes
      1 / 1
      Source

      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

    • No
      0 / 1
      Source

      101. Percentage or number of temporary employees?

      30% - Figure is undated

    • No
      0 / 1
      Source

      102. Percentage or number of women employees?

      20% - Figure is undated

    • Partial
      0.5 / 1
      Source

      103. Payment of minimum wage?

      The company states that a minimum wage is paid to all workers, but no evidence provided

    • No
      0 / 1
      Source

      104. Reporting of salary by gender?

    • Partial
      0.5 / 1
      Source

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

      The company HSE management policy does not refer to ILO Code of Practice on Safety and health in Forestry Work

    • No
      0 / 1
      Source

      106. Time lost due to work-based injuries?

    • No
      0 / 1
      Source

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

    • No
      0 / 1
      Source

      108. Provision of personal protective equipment and related training?

  • Certification standards Certification standards
    2 / 7 28.6%
    6 media reports
    • No
      0 / 1
      Source

      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?

      This indicator is disabled as the company has informed ZSL that it has no suppliers including outgrower scheme or independent suppliers

    • No
      0 / 1
      Source

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

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

      This indicator is disabled as the company has informed ZSL that it has no suppliers including outgrower scheme or independent suppliers

    • No
      0 / 1
      Source

      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?

      This indicator is disabled as the company has informed ZSL that it has no suppliers including outgrower scheme or independent suppliers

    • No
      0 / 2
      Source

      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?

      This indicator is disabled as the company has informed ZSL that it has no suppliers including outgrower scheme or independent suppliers

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

      This indicator is disabled as the company has informed ZSL that it has no suppliers including outgrower scheme or independent suppliers

    • Yes
      2 / 2
      Source

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

      94,238 (100%) - The company's operating subsidiary has PEFC certification for 94,384 ha.

  • Smallholders and suppliers Smallholders and suppliers
    0 / 0 0%
    2 media reports

    • 119. Programme to support outgrower scheme smallholders?

      This indicator is disabled as the company has informed ZSL that it has no suppliers including outgrower scheme or independent suppliers

    • 120. Percentage of outgrower scheme smallholders involved in programme?

      This indicator is disabled as the company has informed ZSL that it has no suppliers including outgrower scheme or independent suppliers

    • 121. 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 has no suppliers including outgrower scheme or independent suppliers

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

      This indicator is disabled as the company has informed ZSL that it does not trade wood/wood fibre

    • 123. Suspension or exclusion criteria for suppliers?

      This indicator is disabled as the company has informed ZSL that it has no suppliers including outgrower scheme or independent suppliers

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

      This indicator is disabled as the company has informed ZSL that it has no suppliers including outgrower scheme or independent suppliers

  • Governance and grievances Governance and grievances
    0.5 / 6 8.3%
    4 media reports
    • No
      0 / 1
      Source

      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

    • No
      0 / 1
      Source

      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

    • No
      0 / 1
      Source

      129. Whistleblowing procedure?

    • Partial
      0.5 / 1
      Source

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

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

    • No
      0 / 2
      Source

      131. Details of grievances disclosed?

Media monitor: Korindo

SPOTT gathers reports and stories from global media sources, covering specific company activities related to the assessment indicator categories. ZSL does not assess the validity of these reports.

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December 2019

Hutan Kota sebagai Keberlanjutan Lingkungan (Urban Forests as Environmental Sustainability)

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November 2019

FSC report on palm giant Korindo lists litany of violations, even with redactions

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September 2019

Korindo Group diduga langgar hak masyarakat adat (Korindo Group is suspected of violating the rights of indigenous peoples)

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September 2019

Korindo Threatens Legal Action to Bury the Truth

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December 2018

Log shortage forcing some plywood mills to stop production

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November 2018

KORINDO Group's Response Towards Allegation by Tuk Indonesia and Rainforest Action Action Network (RAN)

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November 2018

Perilous: Korindo, Land Grabbing and Banks

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November 2018

Broken Promises: A case study on how the Tokyo 2020 Games and Japanese financiers are fueling land-grabbing and rainforest destruction in Indonesia

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July 2018

PT Korindo dan Pemrov NTB Resmikan Pengelolaan Sampah Organik (PT Korindo and NTB Provincial Government Inaugurate Organic Waste Management )

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March 2018

Korindo's response to Mighty Earth's post about PT Inocin Abadi

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March 2018

Korindo still clearing forests in timber concession after being outed for fires in Indonesian palm oil plantations

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September 2017

Rupert Murdoch's Aussie papers linked to deforestation in Indonesia

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June 2017

FSC to investigate Korean conglomerate's palm oil operations in Indonesia

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May 2017

Buruh Sampaikan 12 Tuntutan Sambil Dangdutan (Workers Convey 12 Demands With Dangdutan)

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May 2017

Korindo should lose FSC certification over deforestation, says NGO

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February 2017

Greenpeace slams paper giant over loophole in fire-prevention policy

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January 2017

Korindo declares forest clearing ban in wake of NGO pressure

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September 2016

Burning Paradise: Korindo accused of destroying Indonesia's last forests

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Scoring criteria: Korindo

Scoring criteria guide how ZSL conducts SPOTT assessments and allocates scores to ensure a fair and consistent approach, setting the expectations for companies on how they should publish ESG data. The full indicator framework contains 131 indicators across 10 categories.

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