Korindo Group

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

The company has stated its sustainability commitments which cover multiple dimensions of sustainability across the company's operations covering both social and environmental issues in the ESG charter available on its website.

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

The company's sustainability commitments apply to all its suppliers. Full Points awarded.

3. High-level position of responsibility for sustainability?

The company reports on its Environment, Social, and Governance (ESG) division however the extent of responsibilities and hierarchical positioning is unclear. It also doesn't define its relationship with the group.

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

This indicator is disabled as the company reports that it is either privately owned or does not have a Board of Directors.

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

6. Percentage or number of women board members?

This indicator is disabled as the company reports that it is either privately owned or does not have a Board of Directors.

7. Member of multiple industry schemes or other external initiatives to reduce negative environmental or social outcomes associated with timber and pulp production?

8. Collaboration with stakeholders to reduce negative environmental or social outcomes associated with timber and pulp production?

The company has multiple collaborations stated both in the ESG 2020 as well as on the Awards & Collaboration webpage. Few stated are the HPH Project with The Nature Conservancy to protect Indonesia's tropical forests through efficient forest management, the HCV/HCS Project with Ata Marie with the objective of planning and implementing the initial stage of a time-bound workplan focusing on HCV, HCS, and conservation management, Korindo USAID Lestari Project for sustainable landscape management.

9. Sustainability report published within last two years?

The company has published an ESG report in the year 2020. Full points are awarded as the company published an ESG report within the last two years.

10. Reports through standardised reporting systems?

11. Climate risks assessment available?

12. Natural capital assessment available?

13. Lists countries and operations?

Plantation: (Timber) Locations Pangkalan Bun, Central Kalimantan. Balikpapan, East kalimantan. Boven Digoel, Papua. Paper Manufacturingand a paper mill located in Cileungsi, West Java, PT. Aspex Kumbong.

14. Lists countries sourcing from?

This indicator is disabled as the company reports that it does not trade wood/wood fibre.

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

513,865 - The company reports having 199,265 ha and 314,600 ha of forestry concession in Kalimantan and Papua respectively.

16. Total area of forest plantation (ha)?

116,125 - The company reports having 116,125 ha of plantations in 2022.

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

This indicator is disabled as the company reports that it does not source from outgrower smallholder suppliers.

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

107,077 - The company reports having 107,077 ha of undeveloped plantation.

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

145,514 - The company reports having 43,956 ha of protected areas under IUPHHK-HA and 101,558 ha under IUPHHK-HTI.

20. Area of Intact Forest Landscape (ha)?

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

21. Number of Forest Management Units (FMUs)?

4 - The company reports having 4 FMUs.

22. Maps of forest management units (FMUs)?

Maps are available on Global Forest Watch (PT. BELANTARA SUBUR, PT. KORINTIGA HUTANI), but they only cover 119,767 ha, so do not cover all of the company's operations. The company also published a map on its ESG report, however, it is not precise nor geo-referenced (static image).

23. Forest management plans available for all FMUs?

24. Monitoring of forest management plan implementation available?

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

This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal.

26. Company has provided valid legal documents to Open Timber Portal on forest management (at the time of SPOTT assessments)?

This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal.

27. Company has provided valid legal documents to Open Timber Portal on timber harvesting (at the time of SPOTT assessments)?

This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal.

28. Names and locations of all third-party supplying FMUs?

29. Number of company owned sawmills?

3 - The company has three milling locations reported on its website.

30. Names and locations of company owned sawmills?

Google Maps locations are provided for the three milling locations.

31. Number of company-owned pulp and paper mills?

1 - One paper mill has been reported by the company.

32. Names and locations of company-owned pulp and paper mills?

A link to Google Maps showing the location of the mill is publicly available on the company's website.

33. Reports total volumes (or percentages) sourced by company-owned sawmills that come from company's own operations and third-parties?

34. Reports total volumes (or percentages) sourced by company-owned pulp and paper mills that come from company's own operations and third-parties?

35. Number of third party supplying mills?

This indicator is disabled as the company reports that it does not source from supplying mills.

36. Names and locations of all third party supplying mills?

This indicator is disabled as the company reports that it does not source from supplying mills.

37. Reports total volume (or percentages) sourced from third-party supplying mills that come from the supplying mills' own operations and third parties?

This indicator is disabled as the company reports that it does not source from supplying mills.

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

The company makes this commitment through SVLK certification requirements. As SVLK requirements do not fully meet the SPOTT indicator criteria, unless 100% certified, partial points have been awarded on the basis of the company's SVLK certification.

39. Percentage of supply traceable to country of harvest?

40. Procedures to trace raw materials to FMU level?

The company has FSC, PEFC FM, and SVLK certification but does not publish its own procedures to trace raw materials to the FMU level.

41. Percentage of supply traceable to FMU level?

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

100% of developed concessions are PHPL & SVLK compliant.

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

100% - 100% of developed concessions are PHPL & SVLK compliant.

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

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

46. Percentage area (ha) FSC FM certified?

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

The company reports that it will work towards FSC FM certification for its natural forest concessions or FSC CW certification for timber plantations in Indonesia by the end of 2023 but not to 100%.

48. Percentage of wood/wood fibre supply (tonnes) from all suppliers that comes from FSC FM certified areas?

49. Commitment to source only wood/wood fibre that meets FSC Controlled Wood and/or PEFC Controlled Sources requirements?

The company commits to all of the FSC Controlled Wood requirements, except " harvested from forests being converted to plantations or non-forest use" under some circumstances. No points are awarded as the information does not completely fulfill the indicator.

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

94,384 (14.98%) - The company has 94,384 ha of land PEFC certified out of a total 629,990 ha, making 14.98% of it's landbank certified.

51. Commitment to zero conversion of natural ecosystems?

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

53. Commitment to zero deforestation?

The company makes this commitment through the FSC Policy for Association (FSC-POL-01-004 V2-0). Full points have therefore been awarded based on the company's FSC certification/membership. The company also provides a commitment on the webpage.

54. Commitment to zero deforestation applies to all suppliers?

The company provide commitment to no deforestation applies to all suppliers.

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

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

The company monitors deforestation using Global Forest Watch GLAD alerts/imagery monthly. Over 629k ha of land is covered by monitoring. However, the information is not externally verified.

57. Evidence of monitoring deforestation and/or ecosystem conversion in supplier operations?

58. Amount of deforestation and/or ecosystem conversion recorded in own operations since cut-off date?

59. Amount of deforestation and/or ecosystem conversion recorded in supplier operations since cut-off date?

60. Commitment to restoration of deforestation/conversion?

The company claims to restore 20,000 hectares of deforested and degraded land to forests within the next ten years. However, the company does not provide a commitment and cut-off date beyond which deforestation or conversion would not be accepted.

61. Commitment to restoration of deforestation/conversion applies to all suppliers?

62. Implementing a landscape or jurisdictional level approach?

[Externally verified] Detailed reports of the projects mentioned are available in the ESG 2020 report, like the HPH Project with The Nature Conservancy to protect Indonesia's tropical forests through efficient forest management, the HCV/HCS Project with Ata Marie with the objective of planning and implementing the initial stage of a time-bound workplan focusing on HCV, HCS and conservation management, USAID Lestari Project for sustainable landscape management.

63. Biodiversity policy?

64. Biodiversity policy applies to all suppliers?

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

[Externally verified] Limited, externally verified points have been awarded on the basis of the company's PEFC FM certification (PEFC ST 1003:2018) as the requirements do not fully meet the SPOTT indicator criteria.

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

Comprehensive, externally verified points have been awarded on the basis of the company's PEFC FM certification (PEFC ST 1003:2018) as the requirements fully meet the SPOTT indicator criteria.

67. Commitment to no hunting or only sustainable hunting of species?

The scope of commitment reported by the company only overs management and monitoring of endemic species or endangered flora and fauna. Partial points are awarded as the commitment does not apply to all species.

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

The company's commitment to no hunting of only endemic/endangered species applies to all its suppliers. Partial points are awarded as hunting is prohibited only of endangered, rare, threatened species.

69. Commitment to protect forest areas from illegal activities?

The commitment only claims to protect forest areas only from certain forms of illegal activities.

70. Commitment to protect forest areas from illegal activities applies to all suppliers?

The commitment only claims to protect forest areas only from certain forms of illegal activities which applies to all its suppliers.

71. Evidence of protecting forest areas from illegal activities?

Comprehensive, externally verified points have been awarded on the basis of the company's PEFC FM certification (PEFC ST 1003:2018) as the requirements fully meet the SPOTT indicator criteria.

72. Commitment to no use of genetically modified organisms?

The company makes this commitment through the FSC Policy for Association (FSC-POL-01-004 V2-0). Full points have therefore been awarded on the basis of the company's FSC certification/membership.

73. Commitment to no use of genetically modified organisms applies to all suppliers?

The company is FSC, SVLK, and PEFC Certified. Full points are awarded.

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

The company makes this commitment through the FSC Policy for Association (FSC-POL-01-004 V2-0). Full points have therefore been awarded on the basis of the company's FSC certification/membership. The company also provides a commitment for its own operations as well.

75. Commitment to conduct High Conservation Value (HCV) assessments applies to all suppliers?

The company's commitment to conduct High Conservation Value (HCV) assessments applies to all its suppliers.

76. High Conservation Value (HCV) assessments available?

The assessments available are all for palm oil concessions of the company.

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

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

The company reports its commitment to conduct HCS studies before any new development in accordance with the HCS Approach.

79. Commitment to the High Carbon Stock (HCS) Approach applies to all suppliers?

The company's commitment to High Carbon Stock (HCS) Approach applies to all its suppliers.

80. High Carbon Stock (HCS) assessments available?

This indicator is disabled as the company reports that it only produces wood/wood fibre from natural forests.

81. Peer review of all High Carbon Stock (HCS) assessments undertaken since April 2015 by the HCSA Quality Assurance Process?

This indicator is disabled as the company reports that it only produces wood/wood fibre from natural forests.

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

The company commits to conducting social and environmental impact assessments (SEIAs).

83. Commitment to conduct social and environmental impact assessments (SEIAs) applies to all suppliers?

84. Social and environmental impact assessments (SEIAs) available, and associated management and monitoring plans?

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

This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal.

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

The company commits to no planting on peat regardless of depth on its website.

87. Commitment to no planting on peat of any depth applies to all suppliers?

The company's commitment to no planting on peat regardless of depth applies to all its suppliers.

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

0 (0%) - "KORINDO doesn't have any peatland over our all operation area to date.".

89. Implementation of commitment to no planting on peat of any depth?

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

90. Commitment to best management practices for soils and peat?

91. Commitment to best management practices for soils and peat applies to all suppliers?

92. Evidence of best management practices for soils and peat?

The company reports that it does not have operations on peatland. Comprehensive, externally verified points have been awarded on the basis of the company's PEFC FM certification (PEFC ST 1003:2018) as the requirements fully meet the SPOTT indicator criteria. Additional points have been awarded according to the percentage of company landbank certified by PEFC.

93. Commitment to reduced impact logging?

The company commits to reducing the impact of logging on its website.

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

95. Evidence of implementing reduced impact logging practices?

Limited, externally verified points have been awarded on the basis of the company's PEFC FM certification (PEFC ST 1003:2018) as the requirements do not fully meet the SPOTT indicator criteria.

96. Commitment to zero burning?

The company has reported on its commitment to zero burning.

97. Commitment to zero burning applies to all suppliers?

The company's commitment to zero burning applies to all its suppliers.

98. Evidence of fire monitoring and management?

Comprehensive, externally verified points have been awarded on the basis of the company's PEFC FM certification (PEFC ST 1003:2018) as the requirements fully meet the SPOTT indicator criteria.

99. Details/number of hotspots/fires in company FMUs?

13 - The figure is the number of hotspots detected in 2021 using NASA FIRM alerts. Monitoring covers about 629K ha of land.

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

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

The company commits to reducing GHGs but does not reference intensity or give a time-bound target.

102. GHG emissions intensity?

103. GHG emissions from land use change?

This indicator is disabled as the company reports that it only produces wood/wood fibre from natural forests.

104. Progress towards commitment to reduce GHG emissions intensity?

105. Methodology used to calculate GHG emissions?

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

107. Water use intensity?

108. Progress towards commitment on water use intensity?

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

The company complies with Indonesian regulations and maintains water standards established by the local government.

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

The company states that it always observes water standards established by local government (max BOD5 75, and COD 160). However, the information is self reported.

111. Treatment of pulp and paper mill effluent?

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

113. Proportion of processing facilities with closed-loop water treatment system?

114. Commitment to protect natural waterways through buffer zones?

115. Implementation of commitment to protect natural waterways through buffer zones?

Limited, externally verified points have been awarded on the basis of the company's PEFC FM certification (PEFC ST 1003:2018) as the requirements do not fully meet the SPOTT indicator criteria.

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

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

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

Self-reported information on the website claims that the company does not use chlorine chemicals for bleaching. Partial Points are awarded.

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

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

121. Commitment to no use of chemicals listed under the Stockholm Convention and Rotterdam Convention?

122. Commitment to no use of chemicals listed under the Stockholm Convention and Rotterdam Convention applies to all suppliers?

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

124. Implementation of commitment to reduce chemical usage?

125. Integrated Pest Management (IPM) approach?

Comprehensive, externally verified points have been awarded on the basis of the company's PEFC FM certification (PEFC ST 1003:2018) as the requirements fully meet the SPOTT indicator criteria.

126. Waste management system in place to avoid negative impacts?

[Externally verified] Limited, externally verified points have been awarded on the basis of the company's PEFC FM certification (PEFC ST 1003:2018) as the requirements do not fully meet the SPOTT indicator criteria.

127. Commitment to human rights?

The company makes this commitment through the FSC Policy for Association (FSC-POL-01-004 V2-0). Full points have therefore been awarded on the basis of the company's FSC certification/membership.

128. Commitment to human rights applies to all suppliers?

The company commits to human rights and applies to all suppliers.

129. Progress on human rights commitment ?

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

The company makes this commitment through the FSC Policy for Association (FSC-POL-01-004 V2-0). Full points have therefore been awarded on the basis of the company's FSC certification/membership.

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

The company makes this commitment through SVLK certification requirements. As SVLK requirements do not fully meet the SPOTT indicator criteria, partial points have been awarded for this indicator on the basis that 100% of the company's wood/woodfibre supply is SVLK certified.

132. Commitment to respect legal and customary land tenure rights?

The company makes this commitment through the FSC Policy for Association (FSC-POL-01-004 V2-0) AND SVLK. As the requirements of these certifications do not fully meet the SPOTT indicator criteria partial points have been awarded on the basis of the company's FSC certification/membership and SVLK certification.

133. Commitment to legal and customary land rights applies to all suppliers?

Full points based on multiple certifications of FSC Policy for the association, PEFC FM Certification and SVLK Certification.

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

The company reports its commitment to free, prior and informed consent (FPIC).

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

The company has a commitment to the principle and practice of free, prior and informed consent that applies to all suppliers.

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

137. Examples of local stakeholder engagement to prevent conflicts?

The company mentions a conflict resolution framework but does not provide any details, and a consultancy dedicated to stakeholder engagement. Examples/evidence of local stakeholder engagement activities is not reported.

138. Details of process for addressing land conflicts available?

139. Supports the inclusion of women across forestry operations, including addressing barriers faced?

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

This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal.

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

142. Commitment to provide essential community services and facilities ?

The company reports its commitment to provide essential community services and facilities on its website.

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

The company reports multiple examples of facilities and services that have been provided to communities, including the provision of scholarships to schools, building infrastructures, creating jobs and planting trees, in its ESG 2020 report and on its website. However, the information is not externally verified.

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

The company claims that it has induced employment its operations and the support of entrepreneurs, but it does not have a clear commitment that applies to all its operations.

145. Company has provided valid legal documents to Open Timber Portal on labour regulations (at the time of SPOTT assessments)?

This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal.

146. Commitment to Fundamental ILO Conventions or Free and Fair Labour Principles?

The company makes this commitment through the FSC Policy for Association (FSC-POL-01-004 V2-0). Full points have therefore been awarded on the basis of the company's FSC certification/membership.

147. Commitment to Fundamental ILO Conventions or Free and Fair Labour Principles applies to all suppliers?

The company's commitment to Fundamental ILO Conventions or Free and Fair Labour Principles applies to all suppliers.

148. Progress on commitment to respect all workers' rights?

Comprehensive, externally verified points have been awarded on the basis of the company's PEFC FM certification (PEFC ST 1003:2018) as the requirements fully meet the SPOTT indicator criteria. Additional points have been awarded according to the percent of company landbank certified by PEFC. The company is awarded partial points based on the company's PEFC FM, FSC and SVLK certifications.

149. Commitment to eliminate gender related discrimination with regards to employment?

The company reports its commitment to eliminating gender-related discrimination in employment through its Respect Policy Statement.

150. Commitment to eliminate gender related discrimination with regards to employment applies to all suppliers?

The company's commitment extends to all suppliers.

151. Progress on commitment to eliminate gender related discrimination with regards to employment?

152. Percentage or number of temporary employees?

30% - KORINDO Group has promoted 65% of all employees to be permanent employees in 2021.

153. Percentage or number of women employees?

10% - The company states 10% of its workforce is women till 2021.

154. Commitment to pay a living wage?

The company reports providing wages above the applicable district minimum wage (UMP) to promote the welfare of its employees. There is no reference to a living wage commitment.

155. Commitment to pay a living wage applies to all suplliers?

156. Progress on commitment to pay a living wage?

157. Reporting of salary by gender?

158. Commitment to address occupational health and safety?

Points are awarded on the basis of the company's PEFC CoC and SVLK certifications. The company also reports its own commitment to address occupational health and safety however does not reference to the ILO Code of Practice on Safety and health in Forestry Work.

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

The company scored partial points based on the company's PEFC FM, FSC, and SVLK certifications. The standalone policy statement claims to cover all the employees (permanent and temporary), visitors, contractors, and other stakeholders.

160. Provision of personal protective equipment and related training?

The company scored partial points based on the company's PEFC FM, FSC, and SVLK certifications.

161. Time lost due to work-based injuries?

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

163. Commitment to support smallholders?

This indicator is disabled as the company reports that it does not source wood/wood fibre from smallholders.

164. Programme to support outgrower scheme and/or independent smallholders?

This indicator is disabled as the company reports that it does not source wood/wood fibre from smallholders.

165. Number or percentage of outgrower scheme and/or independent smallholders involved in programme?

This indicator is disabled as the company reports that it does not source wood/wood fibre from smallholders.

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

The company makes this commitment through SVLK certification requirements. Partial points have been awarded on the basis of the company's SVLK certification.

167. Number or percentage of suppliers assessed and/or engaged on compliance with company's policy and/or legal requirements?

168. Suspension or exclusion criteria for suppliers?

The company makes this commitment through the PEFC International Chain of Custody Standard (PEFC ST 2002:2020). Partial points have been awarded as the requirements do not full meet the SPOTT scoring criteria.

169. Timebound action plans (including Key Performance Indicators) for suppliers to be in compliance with timber and pulp sourcing commitments?

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

171. Commitment to ethical conduct and prohibition of corruption?

The company reports its commitment to ethical conduct and prohibition of corruption on its website.

172. Commitment to ethical conduct and prohibition of corruption applies to all suppliers?

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

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

This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal.

175. Disclosure of the company’s management approach to tax and payments to governments?

176. Company has provided valid legal documents to Open Timber Portal on taxes, fees and royalties (at the time of SPOTT assessments)?

This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal.

177. Whistleblowing procedure?

A grievance procedure is followed for whistle-blowing and reporting to protect the whistleblowers who raise grievances.

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

The company has its own grievance mechanism open to all stakeholders and publishes extensive details on the procedures.

179. Details of complaints and grievances disclosed?