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Timber and pulp assessments

Korindo https://www.spott.org/timber-pulp/korindo/

Established in 1969, Korindo is headquartered in Indonesia. The company is engaged in timber production,

Score:  34.3%

Latest update: 18 Jul 2018
Next scheduled: July 2019
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  • Landbank (timber/pulp):
    618,899 hectares
  • Thomson Reuters ticker:
    Private company
  • Bloomberg ticker:
    Private company
  • Activities:
    Timber production, pulpwood production, timber processing and manufacturing, pulp and paper production, trading and distribution
  • Locations:
    Indonesia
  • Headquarters:
    Indonesia
  • Website:
    https://www.korindo.co.id/

Company assessment: Korindo – July 2018

SPOTT assesses companies against over 100 indicators across ten categories. Click on the icons or bars below to expand each category for further details, scoring and links to reports and sources.

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Assessment date:

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

    • Companies should publish sustainability policies or similar covering their entire supply chain — including third party suppliers — implemented and enforced through high-level leadership that engages with wider industry schemes.

    • Yes
      1 / 1
      Source

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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      3. High-level position of responsibility for sustainability?

    • No
      0 / 1
      No source

      4. Sustainability report published within last two years?

    • No
      0 / 1
      No source

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

    • Partial
      0.5 / 1
      Source

      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%
    • 5 media reports

      Companies should publicly report figures on their total landbank and details of different areas under their management. They should also disclose maps of their forest management units and provide forest management plans, as well as details on supplier pulp and paper mills.

    • Partial
      0.5 / 1
      Source

      7. Lists countries and operations?

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

    • No
      0 / 1
      Source

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

      524,515 - Figure provided is undated

    • Yes
      1 / 1
      Source

      9. Total area of forest plantation (ha)?

      94,384 - 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/a
      -
      No source

      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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      Source

      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

    • No
      0 / 1
      No source

      13. Area of Intact Forest Landscape (ha)?

    • No
      0 / 1
      No source

      14. Number of Forest Management Units (FMUs)?

    • Partial
      0.5 / 1
      Source

      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

    • No
      0 / 1
      No source

      16. Forest management plans available for all FMUs?

    • No
      0 / 1
      No source

      17. Monitoring of forest management plan implementation?

    • Yes
      1 / 1
      Source

      18. Number of company owned pulp and paper mills?

      1

    • No
      0 / 1
      No source

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

    • n/a
      -
      No source

      20. Number of company owned sawmills?

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

    • n/a
      -
      No source

      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%
    • 9 media reports

      Companies should commit to address deforestation and to set aside areas for conservation. They should report on any activities to manage or restore habitat in their conservation areas, or monitor deforestation in their supply chains. They should also provide evidence of species conservation and biodiversity protection.

    • Yes
      1 / 1
      Source

      22. Commitment to zero conversion of natural forest?

    • n/a
      -
      No source

      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

    • Yes
      1 / 1
      Source

      24. Commitment to minimise the impact of logging roads?

    • Partial
      0.5 / 1
      Source

      25. 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

      26. 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
      No source

      27. Amount of deforestation recorded?

    • Yes
      1 / 1
      Source

      28. Commitment to biodiversity conservation?

    • Yes
      1 / 1
      Source

      29. Commitment to set aside areas for conservation?

    • Partial
      0.5 / 1
      Source

      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

    • Partial
      0.5 / 1
      Source

      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

    • Partial
      0.5 / 1
      Source

      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

    • No
      0 / 1
      No source

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

    • Yes
      1 / 1
      Source

      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)

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      36. Examples of species conservation activities?

  • HCV, HCS and impact assessments HCV, HCS and impact assessments 2 / 7 28.6%
    • 4 media reports

      Companies should commit to the High Conservation Value (HCV) and High Carbon Stock (HCS) approaches, and to conduct social and environmental impact assessments (SEIA). They should develop and publish monitoring and management plans, and provide evidence through SEIA, HCV and HCS assessments, typically published in summary form due to the sensitive nature of certain sites.

    • Yes
      1 / 1
      Source

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

    • n/a
      -
      Source

      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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      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

    • No
      0 / 1
      No source

      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

    • Yes
      1 / 1
      Source

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

    • n/a
      -
      No source

      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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

  • Soils, fire and GHG emissions Soils, fire and GHG emissions 3 / 10 30%
    • 6 media reports

      Companies should commit to protect peatland and undertake best management practices for soils and peat, as well as commit to reduced impact logging. They should also have policies on zero burning and to reduce their greenhouse gas (GHG) emissions. Companies should report their GHG emissions, as well as any fires that occurred in or around their estates, along with plans for managing and monitoring fires.

    • No
      0 / 1
      No source

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

    • Yes
      1 / 1
      Source

      47. Commitment to reduced impact logging?

    • n/a
      -
      Source

      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/a
      -
      No source

      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/a
      -
      No source

      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

    • No
      0 / 1
      No source

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

    • Yes
      1 / 1
      Source

      52. Commitment to zero burning?

    • n/a
      -
      No source

      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

    • Yes
      1 / 1
      Source

      54. Evidence of management and monitoring fires?

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      57. Progress towards reducing GHG emission intensity?

    • No
      0 / 1
      No source

      58. Report GHG emissions from land use change?

    • No
      0 / 1
      No source

      59. Methodology used to calculate GHG emissions?

  • Water, chemical and waste management Water, chemical and waste management 4 / 12 33.3%
    • 3 media reports

      Companies should commit to managing water use and water quality, providing evidence through time-bound reduction plans, policies on toxic chemical use, waste management and treatment of wastewater and mill effluents.

    • Yes
      1 / 1
      Source

      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

    • Yes
      1 / 1
      Source

      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)

    • No
      0 / 1
      No source

      62. Protection of natural waterways through buffer zones?

    • No
      0 / 1
      No source

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

    • n/a
      -
      No source

      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

    • No
      0 / 1
      No source

      65. Time-bound commitment to improve water use?

    • No
      0 / 1
      No source

      66. Progress towards commitment on water use?

    • Yes
      1 / 1
      Source

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

    • n/a
      -
      No source

      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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • Yes
      1 / 1
      Source

      72. Integrated Pest Management (IPM) approach?

    • No
      0 / 1
      No source

      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%
    • 4 media reports

      Companies should commit to respect human rights, including those of indigenous peoples and local communities, consulted with free, prior and informed consent (FPIC). Companies should respect the rights of workers, report relevant workforce data, and comply with health and safety legislation.

    • Yes
      1 / 1
      Source

      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/a
      -
      Source

      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

    • Yes
      1 / 1
      Source

      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

    • Partial
      0.5 / 1
      Source

      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

    • Yes
      1 / 1
      Source

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

    • n/a
      -
      No source

      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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      81. Details of process for addressing land conflicts available?

    • No
      0 / 1
      No source

      82. Commitment to mitigate impacts on food security?

    • Partial
      0.5 / 1
      Source

      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

    • Yes
      1 / 1
      Source

      84. Commitment to respect all workers' rights?

    • Yes
      1 / 1
      Source

      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)

    • Yes
      0.5 / 0.5
      Source

      86. Total number of employees?

      30,000 - 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

    • Yes
      1 / 1
      Source

      87. Percentage or number of temporary employees?

      30%

    • No
      0 / 1
      Source

      88. Percentage or number of women employees?

      20% - Figure is undated

    • No
      0 / 1
      No source

      89. Commitment to pay minimum wage?

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      91. Time lost due to work-based injuries?

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      93. Provision of personal protective equipment and related training?

  • Certification standards Certification standards 2 / 6 33.3%
    • 5 media reports

      Companies should be certified by credible certification standards, or have time-bound commitments to achieve 100% certification of both forest management units and outgrower schemes. They should also commit to only sourcing certified wood/wood fibre and ensuring that their supply is verified as being in legal compliance.

    • No
      0 / 1
      Source

      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/a
      -
      No source

      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

    • No
      0 / 1
      No source

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

    • n/a
      -
      No source

      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

    • No
      0 / 2
      No source

      98. Percentage area (ha) FSC FM certified?

    • n/a
      -
      No source

      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

    • Yes
      2 / 2
      Source

      100. Percentage area (ha) PEFC certified?

      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

      Companies should report details of any programmes or schemes to support both schemed and independent smallholders, as well as criteria to assess suppliers on compliance with company policies, and in what cases suppliers should be suspended or excluded due to non-compliance.

    • n/a
      -
      No source

      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/a
      -
      No source

      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/a
      -
      No source

      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/a
      -
      No source

      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/a
      -
      No source

      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%
    • 4 media reports

      Companies should operate in an ethical manner at all levels, providing accessible channels and clear procedures for both employees and external stakeholders to raise any grievance or complaint with the company, as well as allowing for whistleblowing.

    • No
      0 / 1
      No source

      106. Commitment to ethical conduct and prohibition of corruption?

    • No
      0 / 1
      No source

      107. Whistleblowing procedure?

    • Partial
      0.5 / 1
      Source

      108. Own grievance or complaints system?

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

    • No
      0 / 1
      No source

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

    • No
      0 / 2
      No source

      110. Details of grievances disclosed?

Media monitor: Korindo

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 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.

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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

Visit external site

March 2018

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

Visit external site

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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