Shandong Chenming Paper Holdings Ltd

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

The company in its ESG Report 2018 states that "The Group implements a policy for green, innovative and diversified development and strives to build a complete industrial chain to continuously improve its industrial competitiveness." However, no sustainability or related policy published by the company.

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

3. High-level position of responsibility for sustainability?

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

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

1 - Ms. Li Xueqin is the only female in the senior management as per the biographies of Senior Management provided by the company in its Annual Report 2019.

6. Percentage or number of women board members?

4 - Ms. Qiu Lanju, Ms. Zhang Hong, Ms. Pan Ailing, and Ms. Yin Meiqun are the four female directors on the board. Gender is not directly reported but is determined from the biographies of members.

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 set up a mutual aid foundation to support the employees and their families in need, in a drive to put into practice the spirit of solidarity and mutual assistance.

9. Sustainability report published within last two years?

10. Reports through standardised reporting systems?

11. Climate risks assessment available?

12. Natural capital assessment available?

13. Lists countries and operations?

China (plantation, pulp production and paper making).

14. Lists countries sourcing from?

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

16. Total area of forest plantation (ha)?

46700 - The company states that it has built its own artificial forests with an area of 46,700 hectares.

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

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

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

20. Area of Intact Forest Landscape (ha)?

21. Number of Forest Management Units (FMUs)?

22. Maps of forest management units (FMUs)?

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?

This indicator is disabled as the company reports that it doesn't own sawmills.

30. Names and locations of company owned sawmills?

This indicator is disabled as the company reports that it doesn't own sawmills.

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

3 - The company in its Annual Report 2019 states that it has three major pulp mills in Zhanjiang, Huanggang, and Shouguang regions, however, the total number of company-owned pulp and paper mills is unclear.

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

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

This indicator is disabled as the company reports that it doesn't own sawmills.

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

35. Number of third party supplying mills?

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

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

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

The company has an FSC CoC certificate, however, it covers only the certified portion of its supply.

39. Percentage of supply traceable to country of harvest?

40. Procedures to trace raw materials to FMU level?

The company makes this commitment through the FSC Chain of Custody Certification Standard (FSC-STD-40-004). As the Standard's requirements do not fully meet the SPOTT indicator criteria partial points have been awarded on the basis of the company's FSC CoC certification.

41. Percentage of supply traceable to FMU level?

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

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

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?

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 Controversial Sources requirements?

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

51. Commitment to zero deforestation or zero conversion of natural ecosystems?

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

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

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

53. Criteria for defining deforestation?

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

54. Evidence of monitoring deforestation?

55. Amount of illegal/non-compliant deforestation recorded?

56. Amount of illegal//non-compliant deforestation recorded in supplier operations?

57. Commitment to restoration of non-compliant deforestation/conversion?

58. Commitment to restoration of non-compliant deforestation/conversion applies to all suppliers?

59. Implementing a landscape or jurisdictional level approach?

60. Commitment to biodiversity conservation?

61. Commitment to biodiversity conservation applies to all suppliers?

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

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

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

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

66. Commitment to protect forest areas from illegal activities?

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

68. Evidence of protecting forest areas from illegal activities?

69. Commitment to no use of genetically modified organisms?

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

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

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

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

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

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

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

73. High Conservation Value (HCV) assessments available?

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

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

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

77. High Carbon Stock (HCS) assessments available?

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

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

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

Environmental Impact Report for subsidiaries Huanggang Chenming Pulp & Paper Co., Ltd and Shouguang Meilun Paper Co., Ltd. found. Full points can not be awarded as the report is not externally verified.

81. 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.

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

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

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

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

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

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

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

89. Commitment to reduced impact logging?

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

91. Evidence of implementing reduced impact logging practices?

92. Commitment to zero burning?

93. Commitment to zero burning applies to all suppliers?

94. Evidence of fire monitoring and management?

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

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

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

98. GHG emissions intensity?

The company reports total GHG emissions (Scope 1 and 2) for the year 2018 as 894,900 tonnes of carbon dioxide equivalent.

99. GHG emissions from land use change?

100. Progress towards commitment to reduce GHG emissions intensity?

101. Methodology used to calculate GHG emissions?

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

103. Water use intensity?

67888300 - The company only reports its total water consumption for 2018 as 67,888,335 m3 and a water consumption density of 4,469 m3 per person.

104. Progress towards commitment on water use intensity?

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

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

107. Treatment of pulp and paper mill effluent?

The company states that each production unit has a sewage recycling system where all sewage is treated and purified before being discharged. However, external verification is missing.

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

This indicator is disabled as the company reports that it doesn't own sawmills.

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

110. Commitment to protect natural waterways through buffer zones?

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

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

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

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

The company states that a chlorine-free bleaching process is introduced in subsidiary Huanggang Chenming Pulp & Paper, however, it is unclear if this covers all of company's operations.

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

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

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

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

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

120. Implementation of commitment to reduce chemical usage?

121. Integrated Pest Management (IPM) approach?

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

The company states that it is fully aware of the ways to reduce landfills and incinerators while promoting the use of resources. It stores waste in two categories, recyclable and non-recyclable, and actively searches for upgrading recycling methods so that the waste can be reused as much as possible. However, the information is not externally verified.

123. Commitment to human rights?

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

124. Commitment to human rights applies to all suppliers?

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

125. Progress on human rights commitment ?

126. Commitment to respect Indigenous and local communities' rights?

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

127. Commitment to Indigenous and local communities' rights applies to all suppliers?

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

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

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

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

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

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

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

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

133. Examples of local stakeholder engagement to prevent conflicts?

134. Details of process for addressing land conflicts available?

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

136. 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.

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

138. Commitment to provide essential community services and facilities ?

The company states that it strives to provide aids to the community by participating in community investment activities such as poverty alleviation, elderly care, education assistance, and promotion of cultural education, to support the community and promote its healthy and sustainable development.

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

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

The company's subsidiary, Zhanjiang Chenming Pulp & Paper engages in poverty alleviation and providing job opportunities. However, commitment covering all operations to provide business/work opportunities to local communities is not in place.

141. 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.

142. 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). Full points have therefore been awarded on the basis of the company's FSC-certification/FSC membership.

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

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

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

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

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

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

148. Percentage or number of temporary employees?

149. Percentage or number of women employees?

150. Commitment to pay at least minimum wage?

151. Commitment to pay at least minimum wage applies to all suppliers?

152. Progress on commitment to pay at least minimum wage?

153. Reporting of salary by gender?

154. Commitment to address occupational health and safety?

The company commits to provide a healthy and safe work environment to its employees, however, the commitment is not referring to ILO code.

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

The company makes this commitment through the FSC Chain of Custody Certification Standard (FSC-STD-40-004). As the Standard's requirements do not fully meet the SPOTT indicator criteria partial points have been awarded on the basis of the company's FSC CoC certification.

156. Provision of personal protective equipment and related training?

The company has a safety department to implement occupational safety measures as per the guidelines of the safety committee. The safety department is responsible for providing PPE and tools to employees and also trains them to increase safety awareness. However, the information is not externally verified.

157. Time lost due to work-based injuries?

The company states that during 2018, it had no work-related fatalities and injuries caused by industrial accidents among employees. However, no data is reported by the company.

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

0 - The company states that during 2018, it had no work-related fatalities.

159. Commitment to support smallholders?

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

161. Percentage of outgrower scheme and/or independent smallholders involved in programme?

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

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

164. Suspension or exclusion criteria for suppliers?

The company makes this commitment through the FSC Chain of Custody Certification Standard (FSC-STD-40-004). As the Standard's requirements do not fully meet the SPOTT indicator criteria partial points have been awarded on the basis of the company's FSC CoC certification.

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

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

167. Commitment to ethical conduct and prohibition of corruption?

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

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

The company states that it has formulated binding measures against illegal or unethical acts, has the provision for employees to report illegal activities, and also offers regular law courses on anti-corruption to spread awareness. However, the information is not externally verified.

170. 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.

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

172. 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.

173. Whistleblowing procedure?

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

175. Details of complaints and grievances disclosed?