WTK Holdings

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

The 2020 annual report of the company covers the sustainability commitments of the company.

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

The company only mentions that suppliers must improve awareness of the group's commitment to sustainability. However, there is no clear policy stating that the company's sustainability commitments apply to all third-party suppliers.

3. High-level position of responsibility for sustainability?

The company has a Group Sustainability Committee (GSC) which is headed by the Managing Director (member of board). Other members of GSC include the 'Executive Director', 'Chief Financial Officer' (part of senior management team) and also key personnel from respective operating units.

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

0 - The company has a 'Group Sustainability Committee (GSC)' which is headed by the 'Managing Director' (member of board).

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

0 - The company reports three members as a part of its key senior management team, none of which are woman.

6. Percentage or number of women board members?

2 - The company reports seven members of the board of directors, two members are women.

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 reports examples of activities on stakeholder engagement. However, it does not report actions taken (or planned) to reduce negative environmental or social outcomes.

9. Sustainability report published within last two years?

The company has published an integrated annual sustainability report for 2020.

10. Reports through standardised reporting systems?

11. Climate risks assessment available?

12. Natural capital assessment available?

13. Lists countries and operations?

The company reports that its upstream operations which include timber concessions and reforestation are located in the central region of Sarawak and the downstream timber processing operations which include plywood manufacturing and the production facilities are in Kuching and Bintulu, Sarawak.

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)?

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)?

18 - Global Forest Watch data includes eight logging concessions and 10 licenses for planted forests, however, it is unclear whether this covers all of the company's operations.

22. Maps of forest management units (FMUs)?

Global Forest Watch data includes maps for eight logging concessions and 10 licenses for planted forests, however, it is unclear whether this covers all of the company's operations.

23. Forest management plans available for all FMUs?

The forest management plan is available for only one FMU (Entulu – Melatai) of the company. It is unclear if this FMU covers all of the company's operations.

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?

4 - The company reports information on four sawmills within its list of properties in 2020.

30. Names and locations of company owned sawmills?

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

This indicator is disabled as the company reports that it does not own pulp or paper mills.

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

This indicator is disabled as the company reports that it does not own pulp or paper mills.

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?

This indicator is disabled as the company reports that it does not own pulp or paper mills.

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 third parties?

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

39. Percentage of supply traceable to country of harvest?

100 - The company reports that the production of logs from the group's upstream logging operations are 100% traceable to known legal origins. This was then translated to 100% traceability of logs supply from various licensed areas to the group's plywood mills in downstream operations.

40. Procedures to trace raw materials to 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?

The company reports that Forest Management Certification ('FMC') is mandatory for all long-term timber licenses in Sarawak and the Sarawak State government target is to have all the long-term timber licenses to obtain their certification by 2022. The group has obtained the FMC under PEFC for its Entulu-Melatai FMU in July 2020 and is pursuing the certification for the remaining FMUs. The group's timber logging and plywood manufacturing operations comply with the Sarawak Timber Legality Verification System ("STLVS"). STLVS is the timber legality assurance system with procedures that has been in place for Sarawak which covers licensing, harvesting, transporting, manufacturing and trading of logs and timber products in accordance with the existing laws and regulations.

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

The company has 55,112 ha of land certified under PEFC FM for its FMU- Entulu-Melatai. However, the total landbank figures are not reported by the company to calculate the percentage of area certified.

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 Controlled Sources requirements?

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

55112 - The company has 55,112 ha of land certified under PEFC FM for its FMU- Entulu-Melatai. However, the total landbank figures are not reported by the company to calculate the percentage of area 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?

54. Commitment to zero 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?

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?

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

62. Implementing a landscape or jurisdictional level approach?

[Externally verified] Points for external verification have been awarded on the basis of the company's PEFC FM certification (PEFC ST 1003:2018). As the Standard does not fully meet the SPOTT indicator criteria limited, externally verified points have therefore been awarded.

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. Additional points cannot be awarded as the total landbank of the company is not reported in order to calculate the percentage of land certified under PEFC. The company also reports multiple examples to protect conservation areas by setting up boundary fencing, putting up signs, and conducts monitoring activities through a patrol system. However, this information is not externally verified.

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

The company reports a commitment to no hunting, however, the commitment is only limited to HCV areas.

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

69. Commitment to protect forest areas from illegal activities?

70. Commitment to protect forest areas from illegal activities applies to all 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. Additional points cannot be awarded as the total landbank of the company is not reported in order to calculate the percentage of land certified under PEFC.

72. Commitment to no use of genetically modified organisms?

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

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

The company reports its commitment to conduct High Conservation Value (HCV) assessments.

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

76. High Conservation Value (HCV) assessments available?

The HCV summary is available for only one FMU (Entulu – Melatai) of the company.

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

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

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

80. High Carbon Stock (HCS) assessments available?

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

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

The company reports its commitment to conduct 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?

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

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

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

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 makes this commitment through the PEFC International Standard (PEFC ST 1003:2018). Full points have therefore been awarded on the basis of the company's PEFC certified landbank. Additional points cannot be awarded as the total landbank of the company is not reported in order to calculate the percentage of land certified under PEFC.

93. Commitment to reduced impact logging?

The company reports an unclear commitment to reduced impact logging.

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 reports its commitment to zero burning.

97. Commitment to zero burning applies to all 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. Additional points cannot be awarded as the total landbank of the company is not reported in order to calculate the percentage of land certified under PEFC. The company's own reporting only covers information on monitoring of fires. Information on management of fires is not reported by the company.

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

0 (0%) - The company reports in its 2018 annual report that there were zero incidents of fire in the plantations, estates and areas within the group for two consecutive years. However, this information is between two and five years old.

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

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

102. GHG emissions intensity?

103. GHG emissions from land use change?

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?

This indicator is disabled as the company reports that it does not own pulp or paper mills.

107. Water use intensity?

This indicator is disabled as the company reports that it does not own pulp or paper mills.

108. Progress towards commitment on water use intensity?

This indicator is disabled as the company reports that it does not own pulp or paper mills.

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

This indicator is disabled as the company reports that it does not own pulp or paper mills.

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

This indicator is disabled as the company reports that it does not own pulp or paper mills.

111. Treatment of pulp and paper mill effluent?

This indicator is disabled as the company reports that it does not own pulp or paper mills.

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

The company only has a wastewater treatment process in place for its sawmill operations.

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

This indicator is disabled as the company reports that it does not own pulp or paper mills.

114. Commitment to protect natural waterways through buffer zones?

The company has published this commitment.

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. The company also reports evidence on buffer zones established in its FMU-Entulu – Melatai. However, the information reported is not externally verified.

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

The company reports that all of its group operations are bound by a high standard in usage of fertilisers, herbicides and pesticides with the ultimate aim of reducing chemical usage by substituting harmful substances with organic fertilisers and an integrated pest management system.

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?

This indicator is disabled as the company reports that it does not own pulp or paper mills.

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?

The company only mentions that in its effort to uphold a sustainable planting culture, it has scaled down its reliance on fertilisers, pesticides and herbicides. However, figures for reduction are not reported by the company.

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. Additional points cannot be awarded as the total landbank of the company is not reported in order to calculate the percentage of land certified under PEFC. The company also mentions it has an integrated pest management system in place through which it uses waste such as empty fruit bunches and decanter cakes which are high in nutrients to return them to the soil as organic fertilisers. However, the information reported is not externally verified.

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. The company self-reports that it has a waste management system in place for all its timber operations. However, the information reported is not externally verified.

127. Commitment to human rights?

The company reports it supports and respects human rights, however, does not reference the Universal Declaration of Human Rights or equivalent.

128. Commitment to human rights applies to all suppliers?

129. Progress on human rights commitment ?

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

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

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

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

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

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

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

137. Examples of local stakeholder engagement to prevent conflicts?

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 mentions it supports community development, however, a clear commitment to provide essential community services and facilities is not reported by the company.

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

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

The company reports 'opportunity of employment' as an area of interest for local communities as a part of its stakeholder engagement activity. However, a clear commitment to provide business/work opportunities for local communities is not reported by the company.

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?

147. 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 cannot be awarded as the total landbank of the company is not reported in order to calculate the percentage of land certified under PEFC.

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

The company has a commitment to eliminate gender related discrimination with regards to employment.

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

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

152. Percentage or number of temporary employees?

153. Percentage or number of women employees?

1169 (27%) - The company reports 27% women employees in its workforce in 2018. Latest information on number of women employees is not reported.

154. Commitment to pay a living wage?

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?

The company has a commitment to address occupational health and safety, however, the commitment reported does not reference ILO Code of Practice on Safety and Health in Forestry Work.

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

160. Provision of personal protective equipment and related training?

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 cannot be awarded as the total landbank of the company is not reported in order to calculate the percentage of land certified under PEFC. The company's own reporting only mentions that 'Personal Protective Equipment (PPE)' is provided for workers who handle hazardous materials or other tasks as necessary.

161. Time lost due to work-based injuries?

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

163. Commitment to support smallholders?

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

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

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

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?

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 commits to ethical conduct and prohibition of corruption.

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

The company commits its suppliers to ethical conduct and prohibition of corruption.

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

The company reports information on proper processes in place to identify and mitigate bribery and corruption. The company also provides training to its employees, however, the information reported is not externally verified.

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?

The company has a whistleblowing policy in place, wherein it clarifies the company's whistleblowing system, communication channel and how the anonymity of the informant is kept confidential.

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

The company reports having a grievance procedure but limited details are provided and the procedure is reported as a part of company's whistleblowing mechanism and is only open to company employees.

179. Details of complaints and grievances disclosed?