app fcp 5th anniversary update may 2018 website
FOREST
CONSERVATION
POLICY
5TH ANNIVERSARY UPDATE
MAY 2018
2
FOREWORD BY
DIRECTOR OF
SUSTAINABILITY
When APP launched the Forest Conservation Policy
(FCP) in 2013, we were armed with limited knowledge
and experience on the subject but with full
awareness that it had to be done. More importantly,
it had to be done right. APP made a irm decision to
have a deforestation-free supply chain, which is a
commitment that remains steadfast. We have proven
this with maintaining 100% plantation iber supply to
all our mills since 2013. We also knew that change was
not going to happen overnight and it was not going
to be easy. Hence, we were prepared to embark on
a journey, illed with challenges that we could and
could not anticipate. The launch of the FCP signiied a
complete business model transformation for APP as well
as for all of our suppliers across Indonesia. Since then,
the four pillars of the FCP have become completely
embedded in our business and day-to-day operations.
Throughout the journey of implementing the FCP over
the past ive years, our approach has evolved from irst
focusing on changing practices in APP concession
including third party suppliers concession areas, to
now working together with communities to protect
forests both within the concessions but also at the
larger landscape level. Community involvement is an
especially prevalent aspect of the FCP implementation.
Aside from communities, we are also strengthened
by the support of our other implementation partners
3
and stakeholders, having engaged critical voices to
rewetted peatlands, rehabilitation and restoration as
understand diferent perspectives while ensuring that
well as conlict resolution, among others.
we do not rest on our laurels.
As we take the FCP forward, our focus will be to
The
understanding
that
a
multi-stakeholder
assess our progress by developing more science-
approach is crucial to the success of the FCP is
based targets with measurable metrics and improving
why we give serious weightage and consideration
data collection, reporting and transparency, continue
to the expectations of our stakeholders. APP also
working alongside our partners and stakeholders.
appreciates that stakeholders would like to view
tangible and measurable results while hearing from
We still have a long journey ahead of us and the road
us on the progress, milestones and success thus far.
can be a little bumpy at times as we strive to fulill our
However, we still encounter many challenges along
FCP commitments while aspiring to become a more
this journey; some old and some new. Third party
sustainable and more responsible global corporate
forest clearance and social conlicts are among our
citizen. We thank you for accompanying and supporting
many prevailing challenges that we continue to face.
us thus far but for us to achieve our collective goals,
Meanwhile, our more recent challenges include
we certainly hope to continue receiving your support
measuring the impact of our FCP as well as our eforts
in the years to come as we strive to continuously and
for peat land management.
consistently improve ourselves in this journey.
In the FCP 5th Anniversary Progress Report, we share
our progress to date, signiicant achievements we
have had to date, our thoughts on the challenges
we have faced over these last ive years and how we
have resolved or are approaching them as we move
forward. Some of our initiatives and eforts however
require a longer duration before any signiicant result
or success can be achieved, including our work
on development of alternative species to grow in
Elim Sritaba
May 2018
4
A WORD FROM OUR IMPLEMENTATION PARTNER
THE FOREST TRUST (TFT)
Having worked with APP since February 2012 to
launch the Forest Conservation Policy, TFT has been
deeply involved in this exciting journey as a partner,
both on the ground and strategically. As I look back
at the work achieved to date, there are three key
learnings that stand out.
The irst is that company leaders who state their vision
and values through an ambitious policy, like APP did,
can drive an immense amount of change. Overcoming
the challenge of transforming a business model reliant
on natural forest ibre to make it exclusively reliant
on plantation ibre,while at the same time becoming
an agent for forest conservation, is not a small task.
But APP is proving to the world that it is possible.
Along the way it discovered ways to reduce waste
(9% reduction in ibre waste) and optimize production,
eiciently combat ires, accelerating the transition of
the company into a way of operating that is in line with
what the world expects from such a large business.
The second learning is that while change can be
fast in some respects, it does not happen overnight.
Solving the numerous social conlicts that were
simmering when the work started in 2012required
time, because it meant engaging on the ground with
skilled people to ind a mutually agreeable solution
to issues that have been present for years and
that are extremely complicated. Allowing time for a
company to change, while at the same time making
sure that things go as fast as they possibly could, is of
5
paramount importance. This understanding however
led to the realization that progress is hard to monitor
quantitatively. TFT introduced tools to monitor
forest concessions by satellite images - which APP
embraced - and we are now discussing how to better
integrate the feedback from local NGOs.
The third learning is that none of the above is
possible without strong partnerships and a genuine
stakeholder engagement, keeping ears wide open
to criticism, even if it sometimes appears unjustiied.
We have been challenging and will continue to
challenge APP on that front because we believe
they can do more to share their learnings, as well
as their challenges, with a wider audience. I am a
strong believer that doing so is also a way to call
for more support. The challenge of ighting climate
change and supplying the material needs of a
growing population worldwide has never been so
daunting, and nobody can face it alone. Yet, thanks
to an increased transparency, APP’s customers,
investors, governments and NGOs can make their
own assessment and eventually support APP
towards achieving the full implementation of its FCP.
Conscious of the great challenges ahead, we
remain committed to supporting APP in solving the
problems and the issues that we are facing and
which we will meet together as we continue on this
journey of change.
6
A WORD FROM OUR IMPLEMENTATION PARTNER
DELTARES
Deltares has been engaged in helping improving APP’s water and peatland management practices in coastal
lowlands since 2014, after their FCP announcement in 2013. The scale of APP’s operations is huge, maybe even
unprecedented for any private company in the world.
Considering the challenges faced, we can conidently say that much has already been achieved in the last four
years. However it is also clear that much more still needs to be done. In terms of peatland management, the
massive ires in drained peatlands of 2014 and 2015 have been a wake up call to APP, that it has responded to with
very substantial investments in knowledge development and, subsequently, management improvement.
A major obstacle to management improvement in the past has been a lack of data and understanding of peatland
functioning and condition. In fact, even the presence and thickness of peat was in many areas not clear from
existing maps. Over 2014-2017 we have therefore focused on measuring conditions and creating maps and
models. A key tool in this has been airborne LiDAR that was collected from 2015 to 2017, over an area exceeding
5 million hectares. Combined with ield surveys, LiDAR data was used in creating elevation models, peat thickness
maps, water depth assessments, lood maps and more. A ield monitoring system and database system for water
levels was set up that now allow APP to better understand conditions in many thousands of locations.
In parallel to improving data availability, we have worked with APP on deining pilot activities that will provide the
basis for larger scale management improvements. This includes retiring 7,000 hectares of productive plantation in
South Sumatra and Riau to let forest return, constructing over 5,000 compacted peat dams in plantation boundary
canals to start bringing up water levels to better protect neighbouring peat swamp forest and reduce ire risk,
developing a trial site with raised water levels in Siak for alternative production species that are tolerant of such wet
conditions, and detailed assessments olooded areas to help ind out how these can be made more productive.
7
Now that data availability has much improved and the irst results of pilots and assessments are becoming clear,
we are committed to help APP start applying this knowledge to management improvements at a much larger scale.
Diiculties and opportunities in raising water levels in peatlands are better understood now, allowing targeted
interventions. Work is ongoing on a full rezoning plan for all APP supplier concessions that contain peatland. The
objectives of the zoning are to create large water storage areas with natural or near natural high water levels on
top of all peat domes, which is necessary toimprove control of water levels on lower slopes, and to better protect
remaining forest applying bufer zones within the concessions. This includes additional retirement of plantations
to forest in most sensitive areas.
These changes aim to substantially improve sustainability in APPs supplier concessions, in terms of reduction of
ire risk, carbon emissions, health of natural forest and eventually also production if losses to ire and loods are
prevented. Working with a large company like APP is complex but we remain impressed by the will to push forward
with improvements despite internal and external challenges. While the pace of change may seem slow sometimes,
the targets are worthwhile and deserving of our support in implementation. APP will need partners in achieving these
targets, and this requires openness from all sides about expectations andchallenges, plans and achievements.
8
FCP 5 YEARS PROGRESS TIMELINE
2013
1. Launch APP Forest
Conservation Policy
2. APP mills stopped receiving natural
3.
4.
5.
6.
7.
2014
1. Rainforest Alliance Assessment on
FCP implementation progress
2. Deltares (Peat Expert) engaged,
forest woods
work started on developing peat
HCV, HCS, Social assessment start
management plan
Conlict Mapping
3. APP released Procedure for
Growth and Yield study
Association for its existing and
Senyerang Conlict resolved (1st Pilot)
potential suppliers
Independent Observer Moratorium
formed and started
8. FCP Monitoring Dashboard launch
4. Launched commitment to support
forest protection and restoration
outside concessions
9
2015
1. HCV and HCS assessment
completed in all suppliers
2. Updated FCP Implementation Plan
2015 based on RA assessment
3. 1st LiDAR Mapping completed
Retirement of 7,000 ha of
productive plantation on peat
4. Integrated Forestry & Farming
2016
1. ISFMP completed for all suppliers
Rolled out of Integrated Fire
Management strategy
2. Research for alternative species
for peatland started
3. IFFS program implemented in
80 villages
4. Jurisdictional approach with
System (IFFS) program launched
South Sumatra and West
in COP21
Kalimantan province
5. Landscape masterplan completed
6. Stakeholder Advisory Forum for
FCP progress update
7. Belantara Foundation launched
in COP21
8. PSPI / Datuk Rajo Melayu conlict
resolved (2nd Pilot)
2017
1. Utilizing high technology to monitor
forest cover (MDA)
2. 2nd LiDAR mapping completed
Riding conlict resolved
3. Regional Social Working Group
(SWGR) established
4. IFFS implemented in 146 villages
10
FCP ACHIEVEMENTS - SUMMARY IN NUMBERS
100%
100%
APP Suppliers’
Plantation Area
Certiied under
the Wood Legality
Veriication System
APP Suppliers
Plantation Area IFCC
– PEFC Sustainable
Forest Management
Certiied
OVER
600,000HA
0.1%
ZERO
APP Products
Sourced from
Plantation Fibres
Protected Areas in
APP’s Suppliers’
Concessions after HCV
and HCS Assessments
Natural Forest Loss
Rate in APP’s Suppliers
Protected Areas by 3rd
Party Deforestation
(Mar 2017 – Jan 2018)
86%
ZERO casualty from
human-wildlife conlict
within APP’s suppliers
concession areas
since 2013
0.01%
Areas Impacted by
Forest Fire in 2017 out
of the Total Gross Area
7,000HA
Commercial Plantation
in Peat land Retired for
Conservation Purposes
46%
Social Conlicts
Resolved
OVER
5,000
12
Perimeter Canal Dams
Built to Raise and
Maintain Water Levels
Alternative Peat Tree
Species Identiied for
Rewetted Peat Areas
191
13,800
Villages Participating in
the IFFS Program
Households are
Beneiciaries of the
IFFS Program
(as of March 2018)
(as of March 2018)
11
FCP INVESTMENTS IN NUMBERS
DEVELOPMENT OF
THE INTEGRATED
FIRE MANAGEMENT
SYSTEM
100 MIL
LANDSCAPE
APPROACH FOREST
CONSERVATION
IMPLEMENTATION
OF THE IFFS
PROGRAM
50 MIL*
10 MIL*
*over a 5 year period
*over a 5 year period
12
FCP PROGRESS REPORT:
FEBRUARY 2013 - FEBRUARY 2018
13
COMMITMENT 1: NATURAL FOREST PROTECTION
APP and its suppliers will only develop areas that are not forested, as identiied through independent High
Conservation Value (HCV) and High Carbon Stock (HCS) assessments.
100%
100%
APP Suppliers’
Plantation Area
Certiied under
the Wood Legality
Veriication System
APP Suppliers
Plantation Area IFCC
– PEFC Sustainable
Forest Management
Certiied
OVER
600,000HA
0.1%
ZERO
APP Products
Sourced from
Plantation Fibres
Protected Areas in
APP’s Suppliers’
Concessions after HCV
and HCS Assessments
0.01%
Areas Impacted by
Forest Fire in 2017 out
of the Total Gross Area
Natural Forest Loss
Rate in APP’s Suppliers
Protected Areas by 3rd
Party Deforestation
(Mar 2017 – Jan 2018)
86%
ZERO casualty from
human-wildlife conlict
within APP’s suppliers
concession areas
since 2013
14
•
•
2013
•
•
•
APP mills stopped
receiving Mixed
Hardwood (MHW), relying
only to plantation iber
HCV, HCS, Social
assessment start
IO Moratorium formed
and started
2015
Launched commitment to
support forest protection
and restoration outside
concessions
•
•
•
•
2014
•
ISFMP completed for ALL 38
concessions
Rolled out of Integrated Fire
Management strategy
IFFS program implemented
in 80 villages
Jurisdictional approach with
South Sumatra and West
Kalimantan province
HCV and HCS
assessment completed
in all suppliers
Integrated Forestry &
Farming System (IFFS)
Program Launched
in COP21
Landscape Master
Plan completed
•
•
•
2016
2017
Utilizing high technology to
monitor forest cover (MDA)
0,01% of total gross area
were impacted by forest ire
IFFS implemented in 146
villages ( 191 as per
March 2018)
Since February 2013, APP and our suppliers stopped converting natural forest for the purpose of pulpwood
plantation development. As of September 2013, APP’s mills stopped accepting Mixed Hardwood (MHW), and only
relies 100 percent on plantation wood and certiied material.
Integrated Sustainable Forest Management Plans (ISFMP)
APP designed and completed the Integrated Sustainable Forest Management Plans (ISFMP) for all suppliers’
concessions with the support and assistance of our implementation partners and key stakeholders that we engage with.
The ISFMP is a consolidation of recommendations as well as data that was gathered through various assessments – High
Conservation Value (HCV), High Carbon Stock (HCS), Social Impact, Peat Mapping, Growth and Yield – that serves as the
foundation in developing management plans for each of our suppliers’ concessions. The process included an extensive
stakeholder consultation process to ensure that their concerns were taken into account in the ISFMP.
15
ISFMP PROCESS
1.
•
•
Map of recommendation
synergies and conlicts
List of redundant
recommendation
if no conlicts between all
recommendation
Recommendation
analysis
2.
6.
3.
Landscape region multi
stakeholder workshop
•
•
Key stakeholder
awareness raised
Working group (4-people)
for the development
of management plan
priorities (hierarchy)
Integrated management
plan hierarchy development
•
Agreed upon hierarchy
for reconciling conlicting
recommendation
4.
5.
Guideline Development
Dissemonation to key
stakeholders
Spatial and non-spatial
analyses
• Map or guideline detailing
where recommendation need
to be inserted into
• Final priorities for nonspatial recommendations
agreed upon
• Most acceptable spatial
scenario chosen
• Final priorities for non-spatial
recommendations
• Best spatial
scenario produced
7.
The ISFMP for all suppliers were completed in 2016,
with several of them subsequently being approved by
the Government of Indonesia. These plans were then
developed into manuals to serve as guidelines for its
implementation.
Management plan and
SOP development
• Management plan document
• SOPs
The protected areas within APP and its third party
suppliers’ concessions, according to the initial version
of the ISFMP, increased to more than 20 percent
(over 600,000 hectares) from the gross area,
which is twice the minimum amount required by the
Government of Indonesia.
The ISFMP is currently undergoing further revision and
updating to align itself to the new Peat Regulation and
the process set forth by the Government of Indonesia.
16
1
Protecting Forests:
3rd Party Deforestation & Fires
security vendors, whereby community members will
Among the concerns and challenges that APP still
The involvement of community is also a critical
faces is third party deforestation despite the fact that
factor in protecting forests. Strengthening the
APP’s suppliers no longer convert natural forests
existing forest security patrol by the suppliers and
into pulpwood plantation since February 2013. We
their security vendors, we developed a community-
have been working tirelessly to address this through
based forest security program, complementing the
various eforts, including engaging communities as
forest patrols conducted by APP’s security vendors,
well as harnessing technology to further enhance our
whereby community members will patrol the forest
forest security and monitoring measures.
area surrounding their villages. This program is being
patrol the forest area surrounding their villages.
piloted in South Sumatra, with a view to be rolled out
APP started using the Forest Alert Service provided
to all regions.
by MacDonald, Dettwiler and Associates (MDA)
in March 2017 to monitor APP’s and its suppliers’
These various eforts resulted in a signiicant decrease
concession areas, with special focus in the protected
of forest cover loss in APP’s suppliers protected area.
areas. The MDA feeds alerts directly to our operations
An assessment taken from MDA data analysis in the
team on a 24-day cycle. These alerts will enable us to
period March 2017 till January 2018 indicates only
detect of forest cover changes and follow by speciic
0.1 percent third party deforestation rate, signiicant
ield veriication to identify the causes such as illegal
reduction in natural forest cover change from total
logging, encroachment, and other sources of forest
protected area compared with the 2014 and 2015
loss while the data captured by MDA will form as a
where the average rate was more than 5%.
basis to develop our strategy in addressing these
issues.
The involvement of community is also a critical
factor in protecting forests. Hence, we developed
a
community-based
forest
security
program,
complementing the forest patrols conducted by APP’s
17
2
Integrated Forestry & Farming Systam (IFFS)
The Integrated Forestry & Farming System (IFFS)
plays a critical role in protecting natural forests as it
aims to reduce the threats of ire, encroachment and
social conlict. Also known as Desa Makmur Peduli
Api (DMPA), the IFFS program was rolled out in 2016
and targets 500 villages. The program supports
communities to improve their livelihoods through
training on agro-ecological practices and climatesmart agriculture, thus reducing pressure on forests
from agricultural expansion and one of the driving
forces behind uncontrolled ires and land clearance.
As
of
March
2018,
the
program
has
been
implemented in 191 villages, beneitting more than
13,800 households. APP partnered with the Center
for International Forestry Research (CIFOR) and
the World Agroforestry Centre (ICRAF) to better
understand the impacts and to further improve our
ability to attribute impacts to speciic components of
the programme, with the aim of developing a feasible
business model that can be adapted and scaled up with
smallholders across forest landscapes in Indonesia.
Integrated Fire Management (IFM) Strategy
In 2016 APP rolled out the Integrated Fire Management to tackle the issue of forest ire across APP’s and its
suppliers’ concession areas. Developed in consultation with ire experts from Canada and South Africa, the IFM
consist of four main pillars: Prevention, Preparedness, Early Detection and Rapid Response.
In prevention, APP mainly engaged with the communities through the IFFS program, providing training and
assistance on agro-ecology, maximizing the yield of the available land to reduce the risk of opening forest area for
agricultural purpose. On preparedness, APP continues to improve the personnel’s capacity by providing routine
training to the ire marshals as well as the ireighting teams. APP also continues to research technologies that can
provide quicker and reliable alerts to hotspot and irespot. In ensuring rapid response, APP has invested to deploy
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6 helicopters – 3 of them large capacity Superpumas, as well as helitack teams and implementing a more cohesive
strategies in ire suppression.
Since 2016, APP has invested more than USD 100 million on the IFM. In 2017, only 0,01% of the total APP’s and its
suppliers’ concession areas were impacted by forest ire.
PREVENTION
• Integrated Forestry & Farming System (IFFS)
• MPA Incentives
• Prevention Planning
• Water Management : Built more than 5,000
perimeter canal blocks
PREVENTION
PREPARATION
PREPARATION
INTEGRATED
FIRE
MANAGEMENT
• Training
• Situation room
• Patrol routes
• 2,700 Fire-fighters standby
EARLY DETECTIO N
• Infra-red detection cameras
• Satellite trial
• Increased ground patrol
• Integrated Fire Information IT System
RAPID
RESPONSE
EARLY
DETECTION
RAPID RESPONSE
• Suppression strategy
• Online fire reporting
• Incident room
• 6 Helicopters standby
Landscape Approach to Restoration and Conservation
APP quickly realized when we started implementing the FCP that forest protection cannot be done in silo. Rather,
it needs a landscape approach with multi-stakeholder involvement to succeed. With that in mind, in 2014, APP
provided the seed funding to set up the Belantara Foundation, a grant-making institution with the goal of delivering
wide- ranging community and conservation results in 10 landscapes in Indonesia. Formally established in 2016,
the Foundation primarily focuses on allocating grants to support restoration, protection and conservation of
endangered species, institutional development and community empowerment initiatives.
Belantara Foundation has signed MoUs with stakeholders in the landscapes, such as the Provincial Government
of South Sumatra, Provincial Government of West Kalimantan, the Man and Biosphere Program, IDH Sustainable
Trade Initiative, YAPEKA, and KPHP Meranti, to name a few. The Foundation has also developed catalogues on
ive main commodities amongst the communities in the regions: cacao, cofee, rubber, coconut, and palm oil, in
order to enable potential donors and partners to identify potential areas for the projects suitable with their
respective objectives.
More information on Belantara Foundation projects can be found at : www.belantara.or.id
19
COMMITMENT 2: PEATLAND BEST
MANAGEMENT PRACTICES
APP will support the Government of Indonesia’s low emission development goals and its target to reduce the
emission of greenhouse gases.
OVER
5,000
7,000HA
Commercial Plantation
in Peat land Retired for
Conservation Purposes
2014
Alternative Peat Tree
Species Identiied for
Rewetted Peat Areas
2016
•
•
•
12
Perimeter Canal Dams
Built to Raise and
Maintain Water Levels
1st LiDAR Mapping Completed
Retirement of 7,000 Ha of
Productive Plantation on Peat
Deltares (Peat Experts)
engaged and started work
on developing Peat Best
Management Practices
•
•
•
2nd LiDAR Mapping Completed
Research on Alternative
Species for Peatland Started
Develop over 5000 Perimeter
canal Dams
2015
2017
APP committed to employing its resources to explore and test approaches in a means to identify the best practices
to manage peatland. This includes identifying methodology to rehabilitate the natural function of peatlands, which
is to store carbon and contribute towards biodiversity.
APP has given top priority to this, having invested heavily to improve the management of peatlands in APP’s
and its suppliers areas, including, but not limited to, ire prevention and suppression eforts, peat mapping, peat
rehabilitation strategy as well as research into alternative species.
20
Peat Mapping
APP, together with Deltares, in 2015 undertook
a LiDAR (Light Detection and Ranging) mapping
exercise over approximately 5 million hectares of
coastal lowland across Riau, Jambi, South Sumatra
and West Kalimantan. The primary purpose of the
irst LiDAR initiative was to map the distribution and
topography of peat in the landscapes where APP’s
suppliers operate.
A second LiDAR mapping exercise followed in 2017
for more assessments and products. The LiDAR data
have yielded an elevation model that is accurate
results look promising. A system of dipwells was
enough (within 0.5m) for improved water management
implemented across all plantations on peatland
zoning and design, and for peat thickness mapping.
to monitor groundwater depth and land surface
A new technique was developed to determine canal
subsidence; to this the PROPER monitoring system
water depth (CWD) below the surface, and CWD maps
designed by the Ministry of Environment and Forestry
were produced. The LiDAR data are now also used
is now being added. A central database system
to better determine vegetation types from canopy
(Operational Water Management System / OWMS)
height, with a focus on retirement areas.
allowing water managers to enter and analyze
relevant information such as water levels and rainfall
Retirement
is being implemented.
We have also built 5,076
perimeter canals dams to raise water levels along the
APP
decided
to
retire
7,000
hectares
of
commercial plantations on peatlands located
near the Berbak – Sembilang National Park in
South Sumatra and near the Kerumutan Wildlife
Reserve in Riau to protect the natural forest in
these landscape based on the data analysis from
the first LiDAR mapping.
The retired areas are
now used to develop knowledge on strategies to
rehabilitate peat, both on natural regeneration as
well as assisted restoration. APP is working with
academics and researchers in finding suitable
methods to restore peat forests on a large scale.
Water Management
boundaries of our suppliers’ production areas, with a
focus on natural forest.
Alternative Species Research
In
collaboration
with
Gadjah
Mada
University
(UGM), APP has identiied 12 species able to grow
in peatlands with higher water tables for alternative
species to be used of commercial, restoration and
community production purposes. Eleven of the
species are already planted and monitored in trial sites
in Riau and South Sumatra. Helped by the Research &
Development Agency of the Ministry of Environment
& Forestry, APP also conducts research into peatland
mychorrhiza, which are various types of fungi that
APP is exploring the possibility of using LiDAR as
have symbiotic relationships with plants, and can help
a monitoring tool, working with experts to assess
them better absorb nutrients. APP will continue to
whether it can be used to help measure canal water
implement the trial and research, and will involve the
levels in the future, alongside ground monitoring;
wider Peat Experts to be part of the process.
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COMMITMENT 3: SOCIAL ENGAGEMENT
To avoid and resolve social conlicts across its supply chain, APP actively seeks input and feedback from a wide
range of stakeholders, including civil society, to implement a set of principles including the FPIC, responsible
resolution of conlicts and community empowerment.
46%
Social Conlicts
Resolved
191
13,800
Villages Participating in
the IFFS Program
Households are
Beneiciaries of the
IFFS Program
(as of March 2018)
(as of March 2018)
•
•
2013
•
•
•
•
•
Conlict Mapping
Conducted
Conlict Resolution
Guideline developed
1st Pilot Senyerang
Conlict Resolved
•
IFFS Program Launched
in COP21
2nd Pilot Datuk Rajo
Melayu Conlict Resolved
Conlict Resolved by end
of 2015: 34%
2016
•
•
•
•
3rd Pilot Riding Conlict
Resolved
Regional Social Working
Group Established
IFFS Implemented
in 146 Villages
Conlict Resolved by end
of 2017: 46%
IFFS Program
Implemented in
80 Villages
Conlict Resolved by end
of 2016: 40%
2015
2017
APP recognizes that communities must be engaged as we grow our business. We also recognize that the survival
of our business depends on being able to balance the interests of the company with that of local communities and
the environment, therefore inding a solution that works for everyone.
Thus, we dedicated signiicant resources towards tackling social challenges and to also ind ways of providing
support to local communities living in and around our suppliers’ concessions to improve their livelihoods and thus
reduce the pressure of the natural forest deforestation.
22
Social Conlict Resolution
Soon after launching the FCP, APP and our suppliers began the process of mapping land disputes, grouping them
by the eight typologies identiied, which are:
1 2 3
4
5
6 7 8
OLD
VILLAGE
NEW
VILLAGE
CUSTOMARY
LAND (ADAT)
LIVELIHOOD
PURPOSE
EIGHT
ILLEGAL LAND
TRADING
LAND
SPECULATOR
NON
PROCEDURAL
LAND USE
TYPOLOGIES
OVERLAPPING
LICENSES
We developed stages in the Conlict Resolution
APP considers a conlict as resolved when it has
Process for monitoring and evaluation purposes.
reached Phase 3. As of February 2018, 46 percent of
These are the four phases:
social conlicts mapped at the beginning of the FCP
are in phase 3 and phase 4.
PHASE
1
COMPLETION OF CONFLICT
MAPPING, ANALYSIS AND
ACTION PLANS
We
subsequently
developed
guidelines
for
responsible conlict resolution that emphasised on the
need for multi-stakeholder engagement. We piloted
PHASE
2
ENGAGEMENT, EXPLORING OPTIONS,
NEGOTIATION PROCESS, ACHIEVEMENT
OF INITIAL AGREEMENT
this guidance while rolling it out across all conlicts
to ensure that it was efective and for continues
improvement. The three pilots that were determined
at the beginning of the FCP implementation have now
been concluded and have shown that this type of
PHASE
3
PHASE
4
methodology can work.
MOU/AGREEMENT SIGNED
MOU/AGREEMENT IMPLEMENTATION
23
Pilot Project: Senyerang
Highlighting the complexities of reaching conlict resolution, this particular case dated back to 2000.
Following numerous meetings, agreements for community development programme investments, external
veriication, government endorsements and multi stakeholder working groups a resolution was inally agreed
by all parties in 2013. Regular monitoring & evaluation of the implementation is now in place.
Pilot Project: Datuk Rajo Melayu
A local tribe claimed that the land managed by an APP supplier for pulpwood plantation was in fact their land
to develop rubber and palm oil. An resolution agreement was signed in June 2015 – implementation of the
agreed actions has begun and the schedule for monitoring is currently being discussed by the parties.
Pilot Project: Riding Village
In 2005, the community of Riding Village in South Sumatra claim a portion of land located in an APP’s
supplier’s concession area. By involving the local government, village leaders, 2 local social NGOs, and the
Ministry of Environment and Forestry, in April 2017 the conlict was resolved through a community forestry
partnership agreement.
24
Regional Social Working Groups (RSWG)
Based on recommendations from the biannual
Stakeholder Advisory Forum (SAF), in 2017, APP
established Regional Social Working Groups (RSWG)
for social conlict resolution at the provincial levels.
The RSWG gathers NGOs, academicians, local
government and community representatives to
discuss social conlicts at the regional level. Ad hoc
teams were set up from within the groups to verify,
monitor, resolve conlicts and to reach agreements.
These regional platforms are formed to speed up the
conlict resolution process and identify mechanisms
for establishing better cooperation between APP and
the communities living in and around concessions.
While the dynamics between these three regions
difers from one another, the RSWG in Jambi has
shown encouraging results with one conlict already
resolved through MOU signing, and two more in the
pipeline. From the experiences since mid-2017, key
lessons learnt in multi-stakeholder conlict resolution
process is the importance of all parties sharing the
same spirit to resolve conlict as soon as possible.
It is also critical that companies act in proactive way
during the resolution process and for the community
to receive assistance and support from NGOs.
Free, Prior and Informed Consent (FPIC)
APP adopted the UN Guiding Principles on Business
and Human Rights, ensuring that FPIC procedures are
performed before proceeding with any proposed
new developments (conservation and plantation).
All of APP’s suppliers have begun to use the Standard
Operating Procedures (SOPs) for FPIC and land
tenure issues in preparing their Annual Work Plans.
APP continues to monitor the efectiveness of our
approach. In 2017, we conducted a pilot to assess
FPIC implementation in South Sumatra.
Integrated Forestry and Farming Systems (IFFS)
The IFFS program rolled out by APP not only contributes
to Commitment 1 in terms of protecting natural forest
but is also aimed at improving APP’s engagement
with communities and building a more reciprocal and
respectful relationship through support for livelihood
development. APP provides direct inancial support
for each community to implement the programs they
choose, participatory mapping, capacity building,
technology transfer as well as providing facilitator
in the village to assist the program implementation.
As the programme is rolled out, APP will also work
with communities to improve market access for the
products they produce by facilitating relationships
and agreements with oftakers. As well as lending
technical and inancial support, we believe in the
importance of building capacity at the cooperative or
either BUMDES. In 2017, APP also signed an MoU with
the Ministry of Village, Underdeveloped Region and
Transmigration on collaborating to strengthen villagebased institutions.
25
COMMITMENT 4: SUSTAINABLE FIBRE
SUPPLY & SOURCING
APP and its suppliers will only develop areas that are not forested, as identiied through independent High
Conservation Value (HCV) and High Carbon Stock (HCS) assessments.
100%
100%
APP Products
Sourced from
Plantation Fibres
•
2013
•
•
•
APP mills stopped
receiving natural
forest woods
Established the
Responsible Fiber
Procurement &
Processing Policy
Strengthening Supplier
Evaluation Risk
Assessment (SERA)
comply to FCP
86%
APP Suppliers’
Plantation Area
Certiied under
the Wood Legality
Veriication System
APP released the
Procedures for
Association for its
existing as well as
potential suppliers
2015
•
•
2014
APP Suppliers
Plantation Area IFCC
– PEFC Sustainable
Forest Management
Certiied
2017
•
21 suppliers are IFCC-PEFC
SFM certiied
Implementation of SERA
to potential suppliers
3 suppliers are IFCCPEFC SFM certiied
•
25 suppliers are IFCC-PEFC
SFM certiied (as of March
2018, 30 suppliers are
IFCC-PEFC SFM certiied)
2016
APP commits to only sourcing ibre from sustainable sources. All existing and potential APP suppliers must
comply with the FCP, the Responsible Fibre Procurement & Processing Policy (RFPPP) and Supplier Evaluation
& Risk Assessment (SERA), the last being a tool APP uses to continuously ensure compliance and to monitor
risks associated with potential suppliers entering our supply chain. One key parameter in SERA is that the
potential suppliers should not be involved in deforestation or natural forest conversion as of February 2013.
If the potential suppliers are unable to show proof of this, they will be automatically rejected. This pass-fail
mechanism help to ensure the integrity of APP supply chain in complying with the FCP.
In conducting the SERA assessment, APP is assisted by The Forest Trust (TFT). The result of risk assessment,
which may consist of a ield assessment, is then submitted to the Joint Steering Committee (JSC), which includes
26
representatives from APP, APP Forestry Division,
and The Forest Trust (TFT). The JSC then takes the
decision on whether or not to accept the potential
supplier into our supply chain. Details of existing
and potential suppliers are listed on the FCP
Monitoring Dashboard.
In 2017, APP approved six new one-time suppliers
through the SERA process. Outside of these
six suppliers, APP terminated contract with two
one-time suppliers as they are proven to have
affiliated companies that are still involved in forest
conversion practice.
As part of our efort to integrate local communities
into our supply chain, and in line with the Government
of Indonesia’s ambition to boost social forestry and
empower forest communities, APP has also focused
in the last year on supporting communities to supply
pulpwood to our operations. In May 2017, the JSC
approved the acceptance of four community forests
as APP pulpwood supplier. These are consolidations
from the farmers that previously supplied to APP mills
individually. These community forests will supply
pulpwood to APP mills as a long term suppliers,
bringing in additional income for the communities
managing these forests and become entrepreneur
under cooperative.
27
ADDRESSING CONCERNS REGARDING
FUTURE FIBER SUPPLY
Despite the progress made by APP in fulilling its FCP commitments, especially with regards to ending
natural forest clearance, concerns were raised pertaining to our ability to fulill the increasing demand
following the OKI mill commencing operations. These concerns were based on APP’s past performance,
referencing our previous Growth and Yield Assessments.
Fortunately, over the last ive years, we have made many improvements in yield and eiciency, such as
addressing wood loss and leakages, none of which relected when stakeholders raised their concerns.
Using a methodology which was veriied by Rainforest Alliance, and working closely with TFT and Ata
Marie, APP conducted its own growth and yield projections that take into account, among others, the area
burnt in 2015 as well as potential development on existing land banks in APP’s suppliers’ concessions.
The result of this indicates that APP will be able to supply all of our mills, including OKI, through to 2025.
However, between now and 2025, APP will be reviewing potential new suppliers while also exploring
ways to further improve yield and eiciency. We are working with research facilities to explore how to
maximise yields sustainably on these soils.
APP has existing undeveloped areas in its concession on mineral soils in Kalimantan (PT Finnantara Intiga)
which could also be developed through the implementation of ISFMP with the partnership with the local
communities inside the concession.
In addition, APP is working with communities and smallholders to source for additional wood, having
approved four community forests as new suppliers in 2017. All new suppliers are required to meet APP’s
FCP and SERA process prior to acceptance to supply chain.
28
REFLECTING ON THE IMPLEMENTATION OF THE
FCP AS WE LOOK AHEAD TO VISION 2030
APP has started the process to develop the next sustainability roadmap – Sustainability Roadmap Vision
2030 – by taking stock of our achievements in meeting and even exceeding many of the goals set in
APP’s Vision 2020. The aim is for the new Vision 2030 to be a more cohesive strategy, which targets
forests, peatlands, people, and products under the overarching frame of contributing to addressing climate
change and the Sustainable Development Goals. The Sustainability Vision 2020 is the integral foundation
for our ability to achieve the targets we will identify for 2030. It is thus important that we relect on our
implementation of the FCP over the last ive years to identify how to overcome key obstacles.
Transparency is fundamental in building trust and we have aimed to build trust with our stakeholders in
part by regularly reporting on FCP progress and organising bi-annual multi-stakeholders consultations to
discuss progress with stakeholders. We have been using this platform to take opportunity to share the
challenges we have faced and our plans to overcoming them.
We are conscious that progress in some areas has been time-consuming, particularly in areas where we
are breaking new ground with research and restoration, which take considerable time to produce results.
This in no way means that we are reducing our ambitions. We hope that the challenges outlined in this
report can inspire further conversations and partnerships, leading to solutions that spur our eforts to
accelerate the progress within the FCP implementation.
29
CHALLENGES AND PROPOSED
STRATEGIES TO RESOLVE
Challenge:
Third Party Forest Clearance
Challenge:
Culture Change
Approach over 5 years: We continue to face
Approach over 5 years: When we undertook
challenges in eradicating third party forest clearance
the endeavour to decouple our business from
and encroachment into protected forests. Over
deforestation, we knew that we were also taking
the last ive years, we have deployed a number of
on the responsibility for achieving a shift in
strategies and initiatives – e.g. IFFS programme
culture. A shift in culture not only in our business,
and increased monitoring. We’ve strengthened
but the culture of our suppliers, the culture of the
our monitoring of forest change through the use
communities within and around our concessions,
of forest cover alert technology and on the ground
and with the stakeholders all around us. One of the
monitoring networks of communities in order to be
gifts of Indonesia is its incredible cultural diversity,
able to respond more quickly to changes we see
but this also means that a strategy that works in
and quickly address any clearing activities before
shifting practices in one village will not necessarily
they expand. Through our landscape approach to
work in another. This means that we need to target
forest protection we have also aimed to work with all
our initiatives and engagements to the speciic
stakeholders across the landscape – including other
cultural context of each area across 5 provinces. In
private sector actors addressing the same issue
some instances, we have tried to make progress with
one approach and have had to improve and re-plan
2018 Strategy: APP will continue to strengthen its
when we have come up against cultural diferences.
forest protection eforts, particularly by involving
communities. APP is also looking into new ways
2018 Strategy: As part of the IFFS programme,
to improve the efectiveness of its patrol, such as
we will train ‘change agents’, in an efort to ‘train
improving & prioritising the patrol routes based
the trainers’ in each community on climate smart
on the data received through MDA, as well as
agricultural practices and agro-forestry techniques
integrating SMART patrol concept to its suppliers’
who can then adapt them to their own context and
forest security patrol.
with APP’s support facilitate training for the larger
community. We will also continue to work with NGO
Further, APP will continue to pursue collaboration
partners on raising awareness related to issues
with other stakeholders on forest protection
around human-animal interactions and the negative
and
impacts of ires, among other issues.
community
development.
A
key
focus
going forward will be to engage with neutral,
independent organisations that can take up a role
as facilitator and/or mediator in order to bring
stakeholders with diverse interests together. We
will also increase our support for jurisdictional
approaches to forest protection.
30
Challenge:
Measuring Impact
Challenge:
Social conlict resolution
Approach over 5 years: The initiatives APP is
Approach over 5 years: We have been very careful
embarking on, whether environment or social,
in addressing the very complex issue of managing
need to be measured in terms of impacts so that
conlicts we inherited from the moment the company
we can identify what works and what needs to be
was granted concessions by the Government of
improved. This is where the challenge lies – there
Indonesia. We conducted a detailed mapping of
is no globally acknowledged method to measure
these conlicts to adapt the resolution process to
impacts of conservation and restoration eforts
each case. As mentioned previously in this report,
– particularly over the short-term. While success
each situation is a speciic one and there is no one
stories can be found in some places, they have
solution to address these diferent types of conlicts.
usually been conducted in small areas. Measuring
We are learning a lot from our collaboration with
impacts in large areas such as APP’s concession and
local stakeholders and hope to be able to develop
its third party suppliers’ concessions is a relatively
more partnerships with local groups that would be
new endeavour.
ready to support our eforts to solve all conlicts as
soon as possible.
2018 Strategy: APP will increase engagement with
academics and research organisations to deine and
2018 Strategy: APP will continue working closely
develop a science-based methodology to measure
with stakeholders joining the regional platforms.
the impact of its protection, conservation and
We will also analyse through case studies how the
restoration eforts economically, environmentally
diferent components of our FCP – ire prevention,
and socially. Collaboration has already commenced
IFFS, community forestry – can be better integrated
with CIFOR – ICRAF in the IFFS project in 2017 and
with our conlict resolution eforts to hopefully help
expanding with University of Indonesia in 2018.
reinforce these eforts. In addition, we will continue
training our staf to improve their capacity to prevent
and address disputes.
These eforts, among many others, will take time to produce results. We recognise the urgency of halting
deforestation, and we remain committed to doing our part to stamp out illegal logging and encroachment in addition
to upholding our commitment to no natural forest clearance in our concessions or those of our suppliers. At the
same time, we are keen on investing resources where we can be proactive and bring sustained improvement. APP
will continue to engage in longer-term projects, such as restoration, research on alternative species, social conlict
resolution and changing mindsets.
As we take on more complex challenges, which take longer time to deliver results, we will remain accountable to our
commitments. To this end, we will work with relevant experts and organisations to develop more science-based targets
with measurable deined metrics to facilitate tracking and assessment of our progress in overcoming these challenges.
We will also improve our data collection, reporting, and transparency to make it easier to follow our progress. Through
all of this we will maintain in dialogue with all our stakeholders hearing their criticisms but also welcoming their proposals
to help us to achieve our ambitions to improve forest landscapes and transform our business successfully.
www.asiapulppaper.com
www.fcpmonitoring.com
CONSERVATION
POLICY
5TH ANNIVERSARY UPDATE
MAY 2018
2
FOREWORD BY
DIRECTOR OF
SUSTAINABILITY
When APP launched the Forest Conservation Policy
(FCP) in 2013, we were armed with limited knowledge
and experience on the subject but with full
awareness that it had to be done. More importantly,
it had to be done right. APP made a irm decision to
have a deforestation-free supply chain, which is a
commitment that remains steadfast. We have proven
this with maintaining 100% plantation iber supply to
all our mills since 2013. We also knew that change was
not going to happen overnight and it was not going
to be easy. Hence, we were prepared to embark on
a journey, illed with challenges that we could and
could not anticipate. The launch of the FCP signiied a
complete business model transformation for APP as well
as for all of our suppliers across Indonesia. Since then,
the four pillars of the FCP have become completely
embedded in our business and day-to-day operations.
Throughout the journey of implementing the FCP over
the past ive years, our approach has evolved from irst
focusing on changing practices in APP concession
including third party suppliers concession areas, to
now working together with communities to protect
forests both within the concessions but also at the
larger landscape level. Community involvement is an
especially prevalent aspect of the FCP implementation.
Aside from communities, we are also strengthened
by the support of our other implementation partners
3
and stakeholders, having engaged critical voices to
rewetted peatlands, rehabilitation and restoration as
understand diferent perspectives while ensuring that
well as conlict resolution, among others.
we do not rest on our laurels.
As we take the FCP forward, our focus will be to
The
understanding
that
a
multi-stakeholder
assess our progress by developing more science-
approach is crucial to the success of the FCP is
based targets with measurable metrics and improving
why we give serious weightage and consideration
data collection, reporting and transparency, continue
to the expectations of our stakeholders. APP also
working alongside our partners and stakeholders.
appreciates that stakeholders would like to view
tangible and measurable results while hearing from
We still have a long journey ahead of us and the road
us on the progress, milestones and success thus far.
can be a little bumpy at times as we strive to fulill our
However, we still encounter many challenges along
FCP commitments while aspiring to become a more
this journey; some old and some new. Third party
sustainable and more responsible global corporate
forest clearance and social conlicts are among our
citizen. We thank you for accompanying and supporting
many prevailing challenges that we continue to face.
us thus far but for us to achieve our collective goals,
Meanwhile, our more recent challenges include
we certainly hope to continue receiving your support
measuring the impact of our FCP as well as our eforts
in the years to come as we strive to continuously and
for peat land management.
consistently improve ourselves in this journey.
In the FCP 5th Anniversary Progress Report, we share
our progress to date, signiicant achievements we
have had to date, our thoughts on the challenges
we have faced over these last ive years and how we
have resolved or are approaching them as we move
forward. Some of our initiatives and eforts however
require a longer duration before any signiicant result
or success can be achieved, including our work
on development of alternative species to grow in
Elim Sritaba
May 2018
4
A WORD FROM OUR IMPLEMENTATION PARTNER
THE FOREST TRUST (TFT)
Having worked with APP since February 2012 to
launch the Forest Conservation Policy, TFT has been
deeply involved in this exciting journey as a partner,
both on the ground and strategically. As I look back
at the work achieved to date, there are three key
learnings that stand out.
The irst is that company leaders who state their vision
and values through an ambitious policy, like APP did,
can drive an immense amount of change. Overcoming
the challenge of transforming a business model reliant
on natural forest ibre to make it exclusively reliant
on plantation ibre,while at the same time becoming
an agent for forest conservation, is not a small task.
But APP is proving to the world that it is possible.
Along the way it discovered ways to reduce waste
(9% reduction in ibre waste) and optimize production,
eiciently combat ires, accelerating the transition of
the company into a way of operating that is in line with
what the world expects from such a large business.
The second learning is that while change can be
fast in some respects, it does not happen overnight.
Solving the numerous social conlicts that were
simmering when the work started in 2012required
time, because it meant engaging on the ground with
skilled people to ind a mutually agreeable solution
to issues that have been present for years and
that are extremely complicated. Allowing time for a
company to change, while at the same time making
sure that things go as fast as they possibly could, is of
5
paramount importance. This understanding however
led to the realization that progress is hard to monitor
quantitatively. TFT introduced tools to monitor
forest concessions by satellite images - which APP
embraced - and we are now discussing how to better
integrate the feedback from local NGOs.
The third learning is that none of the above is
possible without strong partnerships and a genuine
stakeholder engagement, keeping ears wide open
to criticism, even if it sometimes appears unjustiied.
We have been challenging and will continue to
challenge APP on that front because we believe
they can do more to share their learnings, as well
as their challenges, with a wider audience. I am a
strong believer that doing so is also a way to call
for more support. The challenge of ighting climate
change and supplying the material needs of a
growing population worldwide has never been so
daunting, and nobody can face it alone. Yet, thanks
to an increased transparency, APP’s customers,
investors, governments and NGOs can make their
own assessment and eventually support APP
towards achieving the full implementation of its FCP.
Conscious of the great challenges ahead, we
remain committed to supporting APP in solving the
problems and the issues that we are facing and
which we will meet together as we continue on this
journey of change.
6
A WORD FROM OUR IMPLEMENTATION PARTNER
DELTARES
Deltares has been engaged in helping improving APP’s water and peatland management practices in coastal
lowlands since 2014, after their FCP announcement in 2013. The scale of APP’s operations is huge, maybe even
unprecedented for any private company in the world.
Considering the challenges faced, we can conidently say that much has already been achieved in the last four
years. However it is also clear that much more still needs to be done. In terms of peatland management, the
massive ires in drained peatlands of 2014 and 2015 have been a wake up call to APP, that it has responded to with
very substantial investments in knowledge development and, subsequently, management improvement.
A major obstacle to management improvement in the past has been a lack of data and understanding of peatland
functioning and condition. In fact, even the presence and thickness of peat was in many areas not clear from
existing maps. Over 2014-2017 we have therefore focused on measuring conditions and creating maps and
models. A key tool in this has been airborne LiDAR that was collected from 2015 to 2017, over an area exceeding
5 million hectares. Combined with ield surveys, LiDAR data was used in creating elevation models, peat thickness
maps, water depth assessments, lood maps and more. A ield monitoring system and database system for water
levels was set up that now allow APP to better understand conditions in many thousands of locations.
In parallel to improving data availability, we have worked with APP on deining pilot activities that will provide the
basis for larger scale management improvements. This includes retiring 7,000 hectares of productive plantation in
South Sumatra and Riau to let forest return, constructing over 5,000 compacted peat dams in plantation boundary
canals to start bringing up water levels to better protect neighbouring peat swamp forest and reduce ire risk,
developing a trial site with raised water levels in Siak for alternative production species that are tolerant of such wet
conditions, and detailed assessments olooded areas to help ind out how these can be made more productive.
7
Now that data availability has much improved and the irst results of pilots and assessments are becoming clear,
we are committed to help APP start applying this knowledge to management improvements at a much larger scale.
Diiculties and opportunities in raising water levels in peatlands are better understood now, allowing targeted
interventions. Work is ongoing on a full rezoning plan for all APP supplier concessions that contain peatland. The
objectives of the zoning are to create large water storage areas with natural or near natural high water levels on
top of all peat domes, which is necessary toimprove control of water levels on lower slopes, and to better protect
remaining forest applying bufer zones within the concessions. This includes additional retirement of plantations
to forest in most sensitive areas.
These changes aim to substantially improve sustainability in APPs supplier concessions, in terms of reduction of
ire risk, carbon emissions, health of natural forest and eventually also production if losses to ire and loods are
prevented. Working with a large company like APP is complex but we remain impressed by the will to push forward
with improvements despite internal and external challenges. While the pace of change may seem slow sometimes,
the targets are worthwhile and deserving of our support in implementation. APP will need partners in achieving these
targets, and this requires openness from all sides about expectations andchallenges, plans and achievements.
8
FCP 5 YEARS PROGRESS TIMELINE
2013
1. Launch APP Forest
Conservation Policy
2. APP mills stopped receiving natural
3.
4.
5.
6.
7.
2014
1. Rainforest Alliance Assessment on
FCP implementation progress
2. Deltares (Peat Expert) engaged,
forest woods
work started on developing peat
HCV, HCS, Social assessment start
management plan
Conlict Mapping
3. APP released Procedure for
Growth and Yield study
Association for its existing and
Senyerang Conlict resolved (1st Pilot)
potential suppliers
Independent Observer Moratorium
formed and started
8. FCP Monitoring Dashboard launch
4. Launched commitment to support
forest protection and restoration
outside concessions
9
2015
1. HCV and HCS assessment
completed in all suppliers
2. Updated FCP Implementation Plan
2015 based on RA assessment
3. 1st LiDAR Mapping completed
Retirement of 7,000 ha of
productive plantation on peat
4. Integrated Forestry & Farming
2016
1. ISFMP completed for all suppliers
Rolled out of Integrated Fire
Management strategy
2. Research for alternative species
for peatland started
3. IFFS program implemented in
80 villages
4. Jurisdictional approach with
System (IFFS) program launched
South Sumatra and West
in COP21
Kalimantan province
5. Landscape masterplan completed
6. Stakeholder Advisory Forum for
FCP progress update
7. Belantara Foundation launched
in COP21
8. PSPI / Datuk Rajo Melayu conlict
resolved (2nd Pilot)
2017
1. Utilizing high technology to monitor
forest cover (MDA)
2. 2nd LiDAR mapping completed
Riding conlict resolved
3. Regional Social Working Group
(SWGR) established
4. IFFS implemented in 146 villages
10
FCP ACHIEVEMENTS - SUMMARY IN NUMBERS
100%
100%
APP Suppliers’
Plantation Area
Certiied under
the Wood Legality
Veriication System
APP Suppliers
Plantation Area IFCC
– PEFC Sustainable
Forest Management
Certiied
OVER
600,000HA
0.1%
ZERO
APP Products
Sourced from
Plantation Fibres
Protected Areas in
APP’s Suppliers’
Concessions after HCV
and HCS Assessments
Natural Forest Loss
Rate in APP’s Suppliers
Protected Areas by 3rd
Party Deforestation
(Mar 2017 – Jan 2018)
86%
ZERO casualty from
human-wildlife conlict
within APP’s suppliers
concession areas
since 2013
0.01%
Areas Impacted by
Forest Fire in 2017 out
of the Total Gross Area
7,000HA
Commercial Plantation
in Peat land Retired for
Conservation Purposes
46%
Social Conlicts
Resolved
OVER
5,000
12
Perimeter Canal Dams
Built to Raise and
Maintain Water Levels
Alternative Peat Tree
Species Identiied for
Rewetted Peat Areas
191
13,800
Villages Participating in
the IFFS Program
Households are
Beneiciaries of the
IFFS Program
(as of March 2018)
(as of March 2018)
11
FCP INVESTMENTS IN NUMBERS
DEVELOPMENT OF
THE INTEGRATED
FIRE MANAGEMENT
SYSTEM
100 MIL
LANDSCAPE
APPROACH FOREST
CONSERVATION
IMPLEMENTATION
OF THE IFFS
PROGRAM
50 MIL*
10 MIL*
*over a 5 year period
*over a 5 year period
12
FCP PROGRESS REPORT:
FEBRUARY 2013 - FEBRUARY 2018
13
COMMITMENT 1: NATURAL FOREST PROTECTION
APP and its suppliers will only develop areas that are not forested, as identiied through independent High
Conservation Value (HCV) and High Carbon Stock (HCS) assessments.
100%
100%
APP Suppliers’
Plantation Area
Certiied under
the Wood Legality
Veriication System
APP Suppliers
Plantation Area IFCC
– PEFC Sustainable
Forest Management
Certiied
OVER
600,000HA
0.1%
ZERO
APP Products
Sourced from
Plantation Fibres
Protected Areas in
APP’s Suppliers’
Concessions after HCV
and HCS Assessments
0.01%
Areas Impacted by
Forest Fire in 2017 out
of the Total Gross Area
Natural Forest Loss
Rate in APP’s Suppliers
Protected Areas by 3rd
Party Deforestation
(Mar 2017 – Jan 2018)
86%
ZERO casualty from
human-wildlife conlict
within APP’s suppliers
concession areas
since 2013
14
•
•
2013
•
•
•
APP mills stopped
receiving Mixed
Hardwood (MHW), relying
only to plantation iber
HCV, HCS, Social
assessment start
IO Moratorium formed
and started
2015
Launched commitment to
support forest protection
and restoration outside
concessions
•
•
•
•
2014
•
ISFMP completed for ALL 38
concessions
Rolled out of Integrated Fire
Management strategy
IFFS program implemented
in 80 villages
Jurisdictional approach with
South Sumatra and West
Kalimantan province
HCV and HCS
assessment completed
in all suppliers
Integrated Forestry &
Farming System (IFFS)
Program Launched
in COP21
Landscape Master
Plan completed
•
•
•
2016
2017
Utilizing high technology to
monitor forest cover (MDA)
0,01% of total gross area
were impacted by forest ire
IFFS implemented in 146
villages ( 191 as per
March 2018)
Since February 2013, APP and our suppliers stopped converting natural forest for the purpose of pulpwood
plantation development. As of September 2013, APP’s mills stopped accepting Mixed Hardwood (MHW), and only
relies 100 percent on plantation wood and certiied material.
Integrated Sustainable Forest Management Plans (ISFMP)
APP designed and completed the Integrated Sustainable Forest Management Plans (ISFMP) for all suppliers’
concessions with the support and assistance of our implementation partners and key stakeholders that we engage with.
The ISFMP is a consolidation of recommendations as well as data that was gathered through various assessments – High
Conservation Value (HCV), High Carbon Stock (HCS), Social Impact, Peat Mapping, Growth and Yield – that serves as the
foundation in developing management plans for each of our suppliers’ concessions. The process included an extensive
stakeholder consultation process to ensure that their concerns were taken into account in the ISFMP.
15
ISFMP PROCESS
1.
•
•
Map of recommendation
synergies and conlicts
List of redundant
recommendation
if no conlicts between all
recommendation
Recommendation
analysis
2.
6.
3.
Landscape region multi
stakeholder workshop
•
•
Key stakeholder
awareness raised
Working group (4-people)
for the development
of management plan
priorities (hierarchy)
Integrated management
plan hierarchy development
•
Agreed upon hierarchy
for reconciling conlicting
recommendation
4.
5.
Guideline Development
Dissemonation to key
stakeholders
Spatial and non-spatial
analyses
• Map or guideline detailing
where recommendation need
to be inserted into
• Final priorities for nonspatial recommendations
agreed upon
• Most acceptable spatial
scenario chosen
• Final priorities for non-spatial
recommendations
• Best spatial
scenario produced
7.
The ISFMP for all suppliers were completed in 2016,
with several of them subsequently being approved by
the Government of Indonesia. These plans were then
developed into manuals to serve as guidelines for its
implementation.
Management plan and
SOP development
• Management plan document
• SOPs
The protected areas within APP and its third party
suppliers’ concessions, according to the initial version
of the ISFMP, increased to more than 20 percent
(over 600,000 hectares) from the gross area,
which is twice the minimum amount required by the
Government of Indonesia.
The ISFMP is currently undergoing further revision and
updating to align itself to the new Peat Regulation and
the process set forth by the Government of Indonesia.
16
1
Protecting Forests:
3rd Party Deforestation & Fires
security vendors, whereby community members will
Among the concerns and challenges that APP still
The involvement of community is also a critical
faces is third party deforestation despite the fact that
factor in protecting forests. Strengthening the
APP’s suppliers no longer convert natural forests
existing forest security patrol by the suppliers and
into pulpwood plantation since February 2013. We
their security vendors, we developed a community-
have been working tirelessly to address this through
based forest security program, complementing the
various eforts, including engaging communities as
forest patrols conducted by APP’s security vendors,
well as harnessing technology to further enhance our
whereby community members will patrol the forest
forest security and monitoring measures.
area surrounding their villages. This program is being
patrol the forest area surrounding their villages.
piloted in South Sumatra, with a view to be rolled out
APP started using the Forest Alert Service provided
to all regions.
by MacDonald, Dettwiler and Associates (MDA)
in March 2017 to monitor APP’s and its suppliers’
These various eforts resulted in a signiicant decrease
concession areas, with special focus in the protected
of forest cover loss in APP’s suppliers protected area.
areas. The MDA feeds alerts directly to our operations
An assessment taken from MDA data analysis in the
team on a 24-day cycle. These alerts will enable us to
period March 2017 till January 2018 indicates only
detect of forest cover changes and follow by speciic
0.1 percent third party deforestation rate, signiicant
ield veriication to identify the causes such as illegal
reduction in natural forest cover change from total
logging, encroachment, and other sources of forest
protected area compared with the 2014 and 2015
loss while the data captured by MDA will form as a
where the average rate was more than 5%.
basis to develop our strategy in addressing these
issues.
The involvement of community is also a critical
factor in protecting forests. Hence, we developed
a
community-based
forest
security
program,
complementing the forest patrols conducted by APP’s
17
2
Integrated Forestry & Farming Systam (IFFS)
The Integrated Forestry & Farming System (IFFS)
plays a critical role in protecting natural forests as it
aims to reduce the threats of ire, encroachment and
social conlict. Also known as Desa Makmur Peduli
Api (DMPA), the IFFS program was rolled out in 2016
and targets 500 villages. The program supports
communities to improve their livelihoods through
training on agro-ecological practices and climatesmart agriculture, thus reducing pressure on forests
from agricultural expansion and one of the driving
forces behind uncontrolled ires and land clearance.
As
of
March
2018,
the
program
has
been
implemented in 191 villages, beneitting more than
13,800 households. APP partnered with the Center
for International Forestry Research (CIFOR) and
the World Agroforestry Centre (ICRAF) to better
understand the impacts and to further improve our
ability to attribute impacts to speciic components of
the programme, with the aim of developing a feasible
business model that can be adapted and scaled up with
smallholders across forest landscapes in Indonesia.
Integrated Fire Management (IFM) Strategy
In 2016 APP rolled out the Integrated Fire Management to tackle the issue of forest ire across APP’s and its
suppliers’ concession areas. Developed in consultation with ire experts from Canada and South Africa, the IFM
consist of four main pillars: Prevention, Preparedness, Early Detection and Rapid Response.
In prevention, APP mainly engaged with the communities through the IFFS program, providing training and
assistance on agro-ecology, maximizing the yield of the available land to reduce the risk of opening forest area for
agricultural purpose. On preparedness, APP continues to improve the personnel’s capacity by providing routine
training to the ire marshals as well as the ireighting teams. APP also continues to research technologies that can
provide quicker and reliable alerts to hotspot and irespot. In ensuring rapid response, APP has invested to deploy
18
6 helicopters – 3 of them large capacity Superpumas, as well as helitack teams and implementing a more cohesive
strategies in ire suppression.
Since 2016, APP has invested more than USD 100 million on the IFM. In 2017, only 0,01% of the total APP’s and its
suppliers’ concession areas were impacted by forest ire.
PREVENTION
• Integrated Forestry & Farming System (IFFS)
• MPA Incentives
• Prevention Planning
• Water Management : Built more than 5,000
perimeter canal blocks
PREVENTION
PREPARATION
PREPARATION
INTEGRATED
FIRE
MANAGEMENT
• Training
• Situation room
• Patrol routes
• 2,700 Fire-fighters standby
EARLY DETECTIO N
• Infra-red detection cameras
• Satellite trial
• Increased ground patrol
• Integrated Fire Information IT System
RAPID
RESPONSE
EARLY
DETECTION
RAPID RESPONSE
• Suppression strategy
• Online fire reporting
• Incident room
• 6 Helicopters standby
Landscape Approach to Restoration and Conservation
APP quickly realized when we started implementing the FCP that forest protection cannot be done in silo. Rather,
it needs a landscape approach with multi-stakeholder involvement to succeed. With that in mind, in 2014, APP
provided the seed funding to set up the Belantara Foundation, a grant-making institution with the goal of delivering
wide- ranging community and conservation results in 10 landscapes in Indonesia. Formally established in 2016,
the Foundation primarily focuses on allocating grants to support restoration, protection and conservation of
endangered species, institutional development and community empowerment initiatives.
Belantara Foundation has signed MoUs with stakeholders in the landscapes, such as the Provincial Government
of South Sumatra, Provincial Government of West Kalimantan, the Man and Biosphere Program, IDH Sustainable
Trade Initiative, YAPEKA, and KPHP Meranti, to name a few. The Foundation has also developed catalogues on
ive main commodities amongst the communities in the regions: cacao, cofee, rubber, coconut, and palm oil, in
order to enable potential donors and partners to identify potential areas for the projects suitable with their
respective objectives.
More information on Belantara Foundation projects can be found at : www.belantara.or.id
19
COMMITMENT 2: PEATLAND BEST
MANAGEMENT PRACTICES
APP will support the Government of Indonesia’s low emission development goals and its target to reduce the
emission of greenhouse gases.
OVER
5,000
7,000HA
Commercial Plantation
in Peat land Retired for
Conservation Purposes
2014
Alternative Peat Tree
Species Identiied for
Rewetted Peat Areas
2016
•
•
•
12
Perimeter Canal Dams
Built to Raise and
Maintain Water Levels
1st LiDAR Mapping Completed
Retirement of 7,000 Ha of
Productive Plantation on Peat
Deltares (Peat Experts)
engaged and started work
on developing Peat Best
Management Practices
•
•
•
2nd LiDAR Mapping Completed
Research on Alternative
Species for Peatland Started
Develop over 5000 Perimeter
canal Dams
2015
2017
APP committed to employing its resources to explore and test approaches in a means to identify the best practices
to manage peatland. This includes identifying methodology to rehabilitate the natural function of peatlands, which
is to store carbon and contribute towards biodiversity.
APP has given top priority to this, having invested heavily to improve the management of peatlands in APP’s
and its suppliers areas, including, but not limited to, ire prevention and suppression eforts, peat mapping, peat
rehabilitation strategy as well as research into alternative species.
20
Peat Mapping
APP, together with Deltares, in 2015 undertook
a LiDAR (Light Detection and Ranging) mapping
exercise over approximately 5 million hectares of
coastal lowland across Riau, Jambi, South Sumatra
and West Kalimantan. The primary purpose of the
irst LiDAR initiative was to map the distribution and
topography of peat in the landscapes where APP’s
suppliers operate.
A second LiDAR mapping exercise followed in 2017
for more assessments and products. The LiDAR data
have yielded an elevation model that is accurate
results look promising. A system of dipwells was
enough (within 0.5m) for improved water management
implemented across all plantations on peatland
zoning and design, and for peat thickness mapping.
to monitor groundwater depth and land surface
A new technique was developed to determine canal
subsidence; to this the PROPER monitoring system
water depth (CWD) below the surface, and CWD maps
designed by the Ministry of Environment and Forestry
were produced. The LiDAR data are now also used
is now being added. A central database system
to better determine vegetation types from canopy
(Operational Water Management System / OWMS)
height, with a focus on retirement areas.
allowing water managers to enter and analyze
relevant information such as water levels and rainfall
Retirement
is being implemented.
We have also built 5,076
perimeter canals dams to raise water levels along the
APP
decided
to
retire
7,000
hectares
of
commercial plantations on peatlands located
near the Berbak – Sembilang National Park in
South Sumatra and near the Kerumutan Wildlife
Reserve in Riau to protect the natural forest in
these landscape based on the data analysis from
the first LiDAR mapping.
The retired areas are
now used to develop knowledge on strategies to
rehabilitate peat, both on natural regeneration as
well as assisted restoration. APP is working with
academics and researchers in finding suitable
methods to restore peat forests on a large scale.
Water Management
boundaries of our suppliers’ production areas, with a
focus on natural forest.
Alternative Species Research
In
collaboration
with
Gadjah
Mada
University
(UGM), APP has identiied 12 species able to grow
in peatlands with higher water tables for alternative
species to be used of commercial, restoration and
community production purposes. Eleven of the
species are already planted and monitored in trial sites
in Riau and South Sumatra. Helped by the Research &
Development Agency of the Ministry of Environment
& Forestry, APP also conducts research into peatland
mychorrhiza, which are various types of fungi that
APP is exploring the possibility of using LiDAR as
have symbiotic relationships with plants, and can help
a monitoring tool, working with experts to assess
them better absorb nutrients. APP will continue to
whether it can be used to help measure canal water
implement the trial and research, and will involve the
levels in the future, alongside ground monitoring;
wider Peat Experts to be part of the process.
21
COMMITMENT 3: SOCIAL ENGAGEMENT
To avoid and resolve social conlicts across its supply chain, APP actively seeks input and feedback from a wide
range of stakeholders, including civil society, to implement a set of principles including the FPIC, responsible
resolution of conlicts and community empowerment.
46%
Social Conlicts
Resolved
191
13,800
Villages Participating in
the IFFS Program
Households are
Beneiciaries of the
IFFS Program
(as of March 2018)
(as of March 2018)
•
•
2013
•
•
•
•
•
Conlict Mapping
Conducted
Conlict Resolution
Guideline developed
1st Pilot Senyerang
Conlict Resolved
•
IFFS Program Launched
in COP21
2nd Pilot Datuk Rajo
Melayu Conlict Resolved
Conlict Resolved by end
of 2015: 34%
2016
•
•
•
•
3rd Pilot Riding Conlict
Resolved
Regional Social Working
Group Established
IFFS Implemented
in 146 Villages
Conlict Resolved by end
of 2017: 46%
IFFS Program
Implemented in
80 Villages
Conlict Resolved by end
of 2016: 40%
2015
2017
APP recognizes that communities must be engaged as we grow our business. We also recognize that the survival
of our business depends on being able to balance the interests of the company with that of local communities and
the environment, therefore inding a solution that works for everyone.
Thus, we dedicated signiicant resources towards tackling social challenges and to also ind ways of providing
support to local communities living in and around our suppliers’ concessions to improve their livelihoods and thus
reduce the pressure of the natural forest deforestation.
22
Social Conlict Resolution
Soon after launching the FCP, APP and our suppliers began the process of mapping land disputes, grouping them
by the eight typologies identiied, which are:
1 2 3
4
5
6 7 8
OLD
VILLAGE
NEW
VILLAGE
CUSTOMARY
LAND (ADAT)
LIVELIHOOD
PURPOSE
EIGHT
ILLEGAL LAND
TRADING
LAND
SPECULATOR
NON
PROCEDURAL
LAND USE
TYPOLOGIES
OVERLAPPING
LICENSES
We developed stages in the Conlict Resolution
APP considers a conlict as resolved when it has
Process for monitoring and evaluation purposes.
reached Phase 3. As of February 2018, 46 percent of
These are the four phases:
social conlicts mapped at the beginning of the FCP
are in phase 3 and phase 4.
PHASE
1
COMPLETION OF CONFLICT
MAPPING, ANALYSIS AND
ACTION PLANS
We
subsequently
developed
guidelines
for
responsible conlict resolution that emphasised on the
need for multi-stakeholder engagement. We piloted
PHASE
2
ENGAGEMENT, EXPLORING OPTIONS,
NEGOTIATION PROCESS, ACHIEVEMENT
OF INITIAL AGREEMENT
this guidance while rolling it out across all conlicts
to ensure that it was efective and for continues
improvement. The three pilots that were determined
at the beginning of the FCP implementation have now
been concluded and have shown that this type of
PHASE
3
PHASE
4
methodology can work.
MOU/AGREEMENT SIGNED
MOU/AGREEMENT IMPLEMENTATION
23
Pilot Project: Senyerang
Highlighting the complexities of reaching conlict resolution, this particular case dated back to 2000.
Following numerous meetings, agreements for community development programme investments, external
veriication, government endorsements and multi stakeholder working groups a resolution was inally agreed
by all parties in 2013. Regular monitoring & evaluation of the implementation is now in place.
Pilot Project: Datuk Rajo Melayu
A local tribe claimed that the land managed by an APP supplier for pulpwood plantation was in fact their land
to develop rubber and palm oil. An resolution agreement was signed in June 2015 – implementation of the
agreed actions has begun and the schedule for monitoring is currently being discussed by the parties.
Pilot Project: Riding Village
In 2005, the community of Riding Village in South Sumatra claim a portion of land located in an APP’s
supplier’s concession area. By involving the local government, village leaders, 2 local social NGOs, and the
Ministry of Environment and Forestry, in April 2017 the conlict was resolved through a community forestry
partnership agreement.
24
Regional Social Working Groups (RSWG)
Based on recommendations from the biannual
Stakeholder Advisory Forum (SAF), in 2017, APP
established Regional Social Working Groups (RSWG)
for social conlict resolution at the provincial levels.
The RSWG gathers NGOs, academicians, local
government and community representatives to
discuss social conlicts at the regional level. Ad hoc
teams were set up from within the groups to verify,
monitor, resolve conlicts and to reach agreements.
These regional platforms are formed to speed up the
conlict resolution process and identify mechanisms
for establishing better cooperation between APP and
the communities living in and around concessions.
While the dynamics between these three regions
difers from one another, the RSWG in Jambi has
shown encouraging results with one conlict already
resolved through MOU signing, and two more in the
pipeline. From the experiences since mid-2017, key
lessons learnt in multi-stakeholder conlict resolution
process is the importance of all parties sharing the
same spirit to resolve conlict as soon as possible.
It is also critical that companies act in proactive way
during the resolution process and for the community
to receive assistance and support from NGOs.
Free, Prior and Informed Consent (FPIC)
APP adopted the UN Guiding Principles on Business
and Human Rights, ensuring that FPIC procedures are
performed before proceeding with any proposed
new developments (conservation and plantation).
All of APP’s suppliers have begun to use the Standard
Operating Procedures (SOPs) for FPIC and land
tenure issues in preparing their Annual Work Plans.
APP continues to monitor the efectiveness of our
approach. In 2017, we conducted a pilot to assess
FPIC implementation in South Sumatra.
Integrated Forestry and Farming Systems (IFFS)
The IFFS program rolled out by APP not only contributes
to Commitment 1 in terms of protecting natural forest
but is also aimed at improving APP’s engagement
with communities and building a more reciprocal and
respectful relationship through support for livelihood
development. APP provides direct inancial support
for each community to implement the programs they
choose, participatory mapping, capacity building,
technology transfer as well as providing facilitator
in the village to assist the program implementation.
As the programme is rolled out, APP will also work
with communities to improve market access for the
products they produce by facilitating relationships
and agreements with oftakers. As well as lending
technical and inancial support, we believe in the
importance of building capacity at the cooperative or
either BUMDES. In 2017, APP also signed an MoU with
the Ministry of Village, Underdeveloped Region and
Transmigration on collaborating to strengthen villagebased institutions.
25
COMMITMENT 4: SUSTAINABLE FIBRE
SUPPLY & SOURCING
APP and its suppliers will only develop areas that are not forested, as identiied through independent High
Conservation Value (HCV) and High Carbon Stock (HCS) assessments.
100%
100%
APP Products
Sourced from
Plantation Fibres
•
2013
•
•
•
APP mills stopped
receiving natural
forest woods
Established the
Responsible Fiber
Procurement &
Processing Policy
Strengthening Supplier
Evaluation Risk
Assessment (SERA)
comply to FCP
86%
APP Suppliers’
Plantation Area
Certiied under
the Wood Legality
Veriication System
APP released the
Procedures for
Association for its
existing as well as
potential suppliers
2015
•
•
2014
APP Suppliers
Plantation Area IFCC
– PEFC Sustainable
Forest Management
Certiied
2017
•
21 suppliers are IFCC-PEFC
SFM certiied
Implementation of SERA
to potential suppliers
3 suppliers are IFCCPEFC SFM certiied
•
25 suppliers are IFCC-PEFC
SFM certiied (as of March
2018, 30 suppliers are
IFCC-PEFC SFM certiied)
2016
APP commits to only sourcing ibre from sustainable sources. All existing and potential APP suppliers must
comply with the FCP, the Responsible Fibre Procurement & Processing Policy (RFPPP) and Supplier Evaluation
& Risk Assessment (SERA), the last being a tool APP uses to continuously ensure compliance and to monitor
risks associated with potential suppliers entering our supply chain. One key parameter in SERA is that the
potential suppliers should not be involved in deforestation or natural forest conversion as of February 2013.
If the potential suppliers are unable to show proof of this, they will be automatically rejected. This pass-fail
mechanism help to ensure the integrity of APP supply chain in complying with the FCP.
In conducting the SERA assessment, APP is assisted by The Forest Trust (TFT). The result of risk assessment,
which may consist of a ield assessment, is then submitted to the Joint Steering Committee (JSC), which includes
26
representatives from APP, APP Forestry Division,
and The Forest Trust (TFT). The JSC then takes the
decision on whether or not to accept the potential
supplier into our supply chain. Details of existing
and potential suppliers are listed on the FCP
Monitoring Dashboard.
In 2017, APP approved six new one-time suppliers
through the SERA process. Outside of these
six suppliers, APP terminated contract with two
one-time suppliers as they are proven to have
affiliated companies that are still involved in forest
conversion practice.
As part of our efort to integrate local communities
into our supply chain, and in line with the Government
of Indonesia’s ambition to boost social forestry and
empower forest communities, APP has also focused
in the last year on supporting communities to supply
pulpwood to our operations. In May 2017, the JSC
approved the acceptance of four community forests
as APP pulpwood supplier. These are consolidations
from the farmers that previously supplied to APP mills
individually. These community forests will supply
pulpwood to APP mills as a long term suppliers,
bringing in additional income for the communities
managing these forests and become entrepreneur
under cooperative.
27
ADDRESSING CONCERNS REGARDING
FUTURE FIBER SUPPLY
Despite the progress made by APP in fulilling its FCP commitments, especially with regards to ending
natural forest clearance, concerns were raised pertaining to our ability to fulill the increasing demand
following the OKI mill commencing operations. These concerns were based on APP’s past performance,
referencing our previous Growth and Yield Assessments.
Fortunately, over the last ive years, we have made many improvements in yield and eiciency, such as
addressing wood loss and leakages, none of which relected when stakeholders raised their concerns.
Using a methodology which was veriied by Rainforest Alliance, and working closely with TFT and Ata
Marie, APP conducted its own growth and yield projections that take into account, among others, the area
burnt in 2015 as well as potential development on existing land banks in APP’s suppliers’ concessions.
The result of this indicates that APP will be able to supply all of our mills, including OKI, through to 2025.
However, between now and 2025, APP will be reviewing potential new suppliers while also exploring
ways to further improve yield and eiciency. We are working with research facilities to explore how to
maximise yields sustainably on these soils.
APP has existing undeveloped areas in its concession on mineral soils in Kalimantan (PT Finnantara Intiga)
which could also be developed through the implementation of ISFMP with the partnership with the local
communities inside the concession.
In addition, APP is working with communities and smallholders to source for additional wood, having
approved four community forests as new suppliers in 2017. All new suppliers are required to meet APP’s
FCP and SERA process prior to acceptance to supply chain.
28
REFLECTING ON THE IMPLEMENTATION OF THE
FCP AS WE LOOK AHEAD TO VISION 2030
APP has started the process to develop the next sustainability roadmap – Sustainability Roadmap Vision
2030 – by taking stock of our achievements in meeting and even exceeding many of the goals set in
APP’s Vision 2020. The aim is for the new Vision 2030 to be a more cohesive strategy, which targets
forests, peatlands, people, and products under the overarching frame of contributing to addressing climate
change and the Sustainable Development Goals. The Sustainability Vision 2020 is the integral foundation
for our ability to achieve the targets we will identify for 2030. It is thus important that we relect on our
implementation of the FCP over the last ive years to identify how to overcome key obstacles.
Transparency is fundamental in building trust and we have aimed to build trust with our stakeholders in
part by regularly reporting on FCP progress and organising bi-annual multi-stakeholders consultations to
discuss progress with stakeholders. We have been using this platform to take opportunity to share the
challenges we have faced and our plans to overcoming them.
We are conscious that progress in some areas has been time-consuming, particularly in areas where we
are breaking new ground with research and restoration, which take considerable time to produce results.
This in no way means that we are reducing our ambitions. We hope that the challenges outlined in this
report can inspire further conversations and partnerships, leading to solutions that spur our eforts to
accelerate the progress within the FCP implementation.
29
CHALLENGES AND PROPOSED
STRATEGIES TO RESOLVE
Challenge:
Third Party Forest Clearance
Challenge:
Culture Change
Approach over 5 years: We continue to face
Approach over 5 years: When we undertook
challenges in eradicating third party forest clearance
the endeavour to decouple our business from
and encroachment into protected forests. Over
deforestation, we knew that we were also taking
the last ive years, we have deployed a number of
on the responsibility for achieving a shift in
strategies and initiatives – e.g. IFFS programme
culture. A shift in culture not only in our business,
and increased monitoring. We’ve strengthened
but the culture of our suppliers, the culture of the
our monitoring of forest change through the use
communities within and around our concessions,
of forest cover alert technology and on the ground
and with the stakeholders all around us. One of the
monitoring networks of communities in order to be
gifts of Indonesia is its incredible cultural diversity,
able to respond more quickly to changes we see
but this also means that a strategy that works in
and quickly address any clearing activities before
shifting practices in one village will not necessarily
they expand. Through our landscape approach to
work in another. This means that we need to target
forest protection we have also aimed to work with all
our initiatives and engagements to the speciic
stakeholders across the landscape – including other
cultural context of each area across 5 provinces. In
private sector actors addressing the same issue
some instances, we have tried to make progress with
one approach and have had to improve and re-plan
2018 Strategy: APP will continue to strengthen its
when we have come up against cultural diferences.
forest protection eforts, particularly by involving
communities. APP is also looking into new ways
2018 Strategy: As part of the IFFS programme,
to improve the efectiveness of its patrol, such as
we will train ‘change agents’, in an efort to ‘train
improving & prioritising the patrol routes based
the trainers’ in each community on climate smart
on the data received through MDA, as well as
agricultural practices and agro-forestry techniques
integrating SMART patrol concept to its suppliers’
who can then adapt them to their own context and
forest security patrol.
with APP’s support facilitate training for the larger
community. We will also continue to work with NGO
Further, APP will continue to pursue collaboration
partners on raising awareness related to issues
with other stakeholders on forest protection
around human-animal interactions and the negative
and
impacts of ires, among other issues.
community
development.
A
key
focus
going forward will be to engage with neutral,
independent organisations that can take up a role
as facilitator and/or mediator in order to bring
stakeholders with diverse interests together. We
will also increase our support for jurisdictional
approaches to forest protection.
30
Challenge:
Measuring Impact
Challenge:
Social conlict resolution
Approach over 5 years: The initiatives APP is
Approach over 5 years: We have been very careful
embarking on, whether environment or social,
in addressing the very complex issue of managing
need to be measured in terms of impacts so that
conlicts we inherited from the moment the company
we can identify what works and what needs to be
was granted concessions by the Government of
improved. This is where the challenge lies – there
Indonesia. We conducted a detailed mapping of
is no globally acknowledged method to measure
these conlicts to adapt the resolution process to
impacts of conservation and restoration eforts
each case. As mentioned previously in this report,
– particularly over the short-term. While success
each situation is a speciic one and there is no one
stories can be found in some places, they have
solution to address these diferent types of conlicts.
usually been conducted in small areas. Measuring
We are learning a lot from our collaboration with
impacts in large areas such as APP’s concession and
local stakeholders and hope to be able to develop
its third party suppliers’ concessions is a relatively
more partnerships with local groups that would be
new endeavour.
ready to support our eforts to solve all conlicts as
soon as possible.
2018 Strategy: APP will increase engagement with
academics and research organisations to deine and
2018 Strategy: APP will continue working closely
develop a science-based methodology to measure
with stakeholders joining the regional platforms.
the impact of its protection, conservation and
We will also analyse through case studies how the
restoration eforts economically, environmentally
diferent components of our FCP – ire prevention,
and socially. Collaboration has already commenced
IFFS, community forestry – can be better integrated
with CIFOR – ICRAF in the IFFS project in 2017 and
with our conlict resolution eforts to hopefully help
expanding with University of Indonesia in 2018.
reinforce these eforts. In addition, we will continue
training our staf to improve their capacity to prevent
and address disputes.
These eforts, among many others, will take time to produce results. We recognise the urgency of halting
deforestation, and we remain committed to doing our part to stamp out illegal logging and encroachment in addition
to upholding our commitment to no natural forest clearance in our concessions or those of our suppliers. At the
same time, we are keen on investing resources where we can be proactive and bring sustained improvement. APP
will continue to engage in longer-term projects, such as restoration, research on alternative species, social conlict
resolution and changing mindsets.
As we take on more complex challenges, which take longer time to deliver results, we will remain accountable to our
commitments. To this end, we will work with relevant experts and organisations to develop more science-based targets
with measurable deined metrics to facilitate tracking and assessment of our progress in overcoming these challenges.
We will also improve our data collection, reporting, and transparency to make it easier to follow our progress. Through
all of this we will maintain in dialogue with all our stakeholders hearing their criticisms but also welcoming their proposals
to help us to achieve our ambitions to improve forest landscapes and transform our business successfully.
www.asiapulppaper.com
www.fcpmonitoring.com