srv nov2013 update4 final
SuStainability
Roadmap ViSion
SRV2020
www.asiapulppaper.com
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NOVEMBER 2013
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Foreword from Aida Greenbury,
Foreword from Aida Greenbury, Managing Director of
Sustainability and Stakeholder Engagement, APP
This is the fourth report on our progress in implementing APP’s wide
ranging Sustainability Roadmap Vision 2020, announced in June 2012.
It comes nine months after the introduction of the Forest Conservation
Policy (FCP), which brought forward the moratorium on all natural
forest clearance by two years.
Since the policy was launched in February 2013 we have made
considerable progress in carrying out the promised High Conservation
Value (HCV) and High Carbon Stock (HCS) assessments across all
38 of our suppliers’ concessions. As part of the HCV assessment process,
we have begun the complex task of assessing peatland in our suppliers’
concessions. We have also initiated a policy of global responsible ibre
sourcing, and begun implementing an increasingly effective social,
community and conlict resolution programme.
This report comes on the heels of a Greenpeace report assessing
our progress in implementing the FCP. The report highlights achievements
we have made, acknowledges the continuing commitment of our senior
management to the policy, our transparency in reporting developments,
and challenges we must address.
We welcome this report and look forward to continued engagement
with Greenpeace and other stakeholders in the future. More details
can be found later in this document.
Our partner, TFT, continues to publish regular FCP Progress Updates
available through the TFT website and via our online monitoring
dashboard. A pilot version of the dashboard went live in June 2013
and we have been consulting stakeholders on its content since then.
We encourage you to access both the monitoring dashboard and the
TFT reports as a means of tracking our progress.
As ever, your comments are welcome, and you can send these to us at
[email protected]
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FOURTH PROGRESS REPORT
SECTION
1
KEY HIGHLIGHT:
[
GREENPEACE PROGRESS REVIEW
]
On October 28th, Greenpeace published a progress review of our
Forest Conservation Policy (FCP). The report assessed APP’s progress
in implementing the FCP policy commitments, highlighting areas of
positive progress and ongoing challenges, as well as setting out criteria
against which to judge the short and long-term success of our FCP.
APP has welcomed the publication of the Greenpeace Progress Review.
Full details of our response to that report, including the challenges
raised, can be found on our website.
APP is pleased that the Greenpeace report has recognised our efforts
in moving ahead on key areas of the FCP implementation. That includes
our overall implementation of the natural forest and undeveloped
peatland moratoriums. The report also highlighted APP’s self-disclosure
of two FCP moratorium breaches and the corrective actions it has taken
to improve the management and implementation of the FCP.
Greenpeace also welcomes our decision to introduce independent
third-party auditing of FCP implementation.
APP is in complete agreement with the criteria Greenpeace have
set out in order to judge the short and long term success of its FCP.
This includes the continued delivery of the forest and undeveloped
peatland development moratoriums, the quality of the
High Conservation Value (HCV), High Carbon Stock (HCS),
peatland and social assessments, as well as the recommendations
and enhanced management plans that will arise from these
assessments. For more details on how APP is proposing to address
the challenges raised in the Greenpeace report, please access our
full response on our website.
We welcome the clarity of advice that Greenpeace is giving
customers wishing to engage with APP, stating that ongoing
implementation of the FCP should be one of the conditions of
doing business with the company. APP believes that additional scrutiny
provided by buyers can only help APP in the continued implementation
of the FCP. This level of engagement with customers will send a clear
signal to the market that the actions being taken by APP are genuine
and should be commended.
The scrutiny of Greenpeace, and many other stakeholders, has been
an important driver of our progress towards ‘No Deforestation’ and
greater transparency. We remain more committed than ever to the
ambitious task we have set ourselves and look forward to continued
engagement with Greenpeace and a range of other stakeholders in
the months and years ahead.
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[
Nov 2013
EPN/EEPN PERFORMANCE MILESTONES
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]
In September, the European and North American Environmental Paper
Networks published a report detailing seven performance milestones
developed by their afiliated civil society organisations to help external
stakeholders assess the implementation of our FCP and Sustainability
Roadmap Vision 2020 commitments. The milestones cover the four
FCP policy commitments as well as a number of the commitments laid
out in our Sustainability Roadmap: Vision 2020.
APP welcomes the introduction of the EPN/EEPN milestones and
fully supports any measures that allow external parties to monitor
our performance in delivering both the FCP and Roadmap
commitments.
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It is for this reason that APP has committed both to the introduction
of an independent third-party auditing of FCP implementation, and
to enhanced transparency measures (such as the FCP monitoring
dashboard) that allow our stakeholders to track and monitor
our progress.
We have reviewed the EPN/EEPN performance milestones in
detail and we are conident that our implementation of the FCP
and Roadmap commitments is on track and that together with
our stakeholders we will be able to address the challenges of
implementing such an ambitious zero deforestation policy. APP’s
full response on how it is addressing the targets and milestones laid
out by both the EPN and the EEPN can be found on our website.
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[
Nov 2013
NATURAL FOREST WOOD ACCEPTANCE DEADLINE
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]
The monitoring and processing of natural forest wood (NFW), previously
known as Mixed Tropical Hardwood or MTH, cut prior to the introduction of
the moratorium has been an important concern for our stakeholders since
we announced the Forest Conservation Policy earlier this year.
It was agreed that APP’s mills would use all NFW cut prior to the
moratorium and that a collaborative approach would be taken to monitor
its consumption and traceability. However, following further consultation with
stakeholders, we established a cut-off date, August 31st 2013, after which
no further NFW cut prior to the moratorium could enter APP’s pulp mills.
After this date, APP’s mills would not accept any further timber from natural
forests as identiied through High Conservation Value (HCV)
and High Carbon Stock (HCS) assessments.
APP can conirm that as of 1st September 2013, APP’s mills are no longer
accepting any wood sourced from natural forests. Final stock inventory
igures1 – following adjustments to account for measurement uncertainty –
indicate that the total amount of pre-February NFW was 1,606,098 m3.
Of this, 899,663 m3 had been received by APP’s mills by August 31st 2013.
Of the remaining NFW, APP’s suppliers have sold 46,494 m3 to third
parties, 56,120 m3 has been allocated for internal use (e.g. infrastructure),
and handling losses account for 60,541 m3. 543,280m3 of NFW
pulpwood remains stockpiled at APP suppliers’ concessions.
APP’s pulp mills will now process the NFW that remains in its log yards.
TFT and APP will continue to track the processing of that NFW and provide
details via APP’s FCP monitoring dashboard. Independent Observers have
been invited to join this monitoring process.
The 543,280 m3 of NFW stockpiled across APP suppliers’ concessions is
a ire risk, and an end use needs to be found for it. APP is currently working
with stakeholders and NGOs to identify an alternative use for this pulpwood.
For a breakdown of NFW processing igures please access APP’s FCP
Monitoring Dashboard.
1.
Final stock inventory igures – including all igures for the resolution of NFW cut prior to the February 5th moratorium
– were subject to very minor revisions on 1st November 2013, as a result of a inal stock inventory validation exercise
completed by TFT and APP. These minor revisions supersede NFW igures presented in TFT’s 4th Progress Update.
8
SECTION
2
[
FOREST CONSERVATION
POLICY COMMITMENT
PROGRESS
The Forest Conservation Policy
has four components:
1. Identiication and protection of
High Conservation Value (HCV)
and High Carbon Stock (HCS)
forests
2. Best practice
peatland management
3. Social and community
engagement
4. Ensuring compliance
from third party suppliers
]
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1.
IDENTIFICATION AND PROTECTION OF HIGH CONSERVATION VALUE (HCV)
AND HIGH CARBON STOCK (HCS) FORESTS
‘APP and its suppliers will only develop areas that are not forested,
as identiied through independent HCVF and HCS assessments.’
1.1
[ Forest Clearance Moratorium ]
• With the launch of the FCP, APP suppliers implemented
a moratorium on natural forest clearance effective February 1st 2013.
The moratorium allows for High Conservation Value (HCV) and High
Carbon Stock (HCS) assessments to be undertaken. All areas
identiied as HCV and HCS will be protected as part of an integrated
sustainable forest management plan.
• Since our 3rd Roadmap Progress Update was published in June
2013, an additional moratorium breach was identiied as well as
a breach of our FCP policy on new peatland development. These
were self-reported by APP in September 2013. Since the FCP was
announced in February 2013, there have been two forest moratorium
breaches and a peatland development breach.
• APP’s moratorium is in place across more than 2.6 million hectares
of APP pulpwood suppliers’ concession areas. The two forest
moratorium breaches have resulted in a total forest clearance of
140 hectares, in addition to the 27.8 hectare breach of new peatland
development.
MORATORIUM BREACHES –PT. BDL AND PT. SPM
• Following a TFT investigation of the case in PT Riau Indo Agropalma
(RIA), APP’s Joint Steering Committee (JSC) ordered an urgent review
to determine whether other similar cases existed that could threaten
APP’s moratorium or implementation of its FCP. As a result of that
review process, two APP pulpwood suppliers – PT. Sekato Pratama
Makmur (SPM) and PT. Bina Duta Laksana (BDL) in Riau –
were identiied as having similar cases as the one in RIA.
• A subsequent investigation conirmed no forest moratorium breach had
taken place at SPM but a breach of APP’s FCP policy on new peatland
development had occurred in BDL. It was not possible to determine
whether the peatland area cleared (27.8 hectares) was HCS forest due
to the fact that assessments were ongoing in this area.
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• The 27.8 hectares was cleared because, like in the RIA case,
the FCP Implementation Team wrongly approved the continuation
of development on forested land allocated for community use
under the government’s community livelihood area programme
(TK) without prior consultation with the JSC.
MORATORIUM BREACH – SOUTH SUMATRA
• In addition to the speciic audit resulting from the RIA case, ongoing
monitoring of FCP implementation by TFT and APP identiied a
moratorium breach in South Sumatra at PT. Bumi Andalas Permai
(BAP), PT. Sebangun Bumi Andalas (SBA), and PT. Bumi Mekar
Hijau (BMH), South Sumatra.
• A total area of 69.45 hectares of HCS was wrongly cleared in BMH,
BAP and SBA after 1st February 2013, a result of land clearance in
an area marked as a “No Go” zone during a pre-assessment phase
of activity.
• APP requested that this pre-assessment be done in South Sumatra
to identify ‘low risk’ areas for ongoing plantation development in
order to meet future pulpwood demand. Areas identiied as “No Go”
were awaiting full HCV, HCS and peatland assessments.
• The TFT/APP investigation indicated that the breach could have been
avoided if operational teams had:
a) been provided with a robust checklist of actions and
documents for formal signoff;
b) implemented more stringent supervision and
monitoring process before any land development had occurred.
• No other land development operations across APP’s supply base
were subjected to pre-assessments.
As a result of these cases, new procedures have now been introduced
by APP/TFT to prevent any such issues from occurring again. Not only
are we now addressing these issues, but we are also using the indings
to improve the way we implement the FCP.
Comprehensive TFT veriication reports have been published for both
of the above cases and can be accessed via APP’s FCP monitoring
dashboard.
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1.2
[ HCV and HCS Assessments ]
• HCV and HCS assessments are currently underway
across all 38 APP suppliers’ concessions across Indonesia.
• Asia Paciic Consulting Solutions (APCS) is conducting HCV
assessments across 11 suppliers’ concessions and will complete
them by Q4 2013. Ekologika is conducting HCV assessments on
the other 27 concessions, due for completion in Q2 2014.
TFT is conducting all HCS assessments.
• APP will use the assessment results and recommendations
to develop a Sustainable Forest Management (SFM) plan detailing
how it proposes to go about managing and protecting all areas
identiied as HCV and HCS.
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HCV
• Full assessments for the irst 11 concessions have now been
completed. APCS is inalising its draft reports before delivery to APP.
• Assessments across the 27 suppliers’ concessions are ongoing in Riau,
East Kalimantan, West Kalimantan, and South Sumatra. Seven
concessions are undergoing full assessment, while 20 concessions
are in the pre-assessment stage. Ekologika aims to submit all reports
to APP by end of March 2014.
HCS
• HCS assessments began in January 2013. The irst priority 20 concessions are
targeted for completion in Q4 2013 with the remaining 18 due in early 2014.
• The irst wave of HCS stratiication and ield assessments for the irst
priority 20 concessions is now complete. Following a team review and
additional analysis and work from external consultants, Ata Marie, a reinement
stage and supplementary ieldwork are now required to improve the correlation
between the GIS overlays (forest strata) and plot ield data. The HCS team will
initially test this process of reinement in a small pilot area before deploying
across all other concessions areas.
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1.3
[ Plantation Growth & Yield Assessment ]
• In 2012 and early 2013, independent Growth & Yield assessments were
undertaken to review the long-term availability of plantation ibre to feed
APP pulp mills. The assessments focused on the plantation growth and
pulpwood log yields of APP suppliers’ plantations.
• In addition to an APP internal assessment, one initial assessment
was conducted by TFT and a second was done by Ata Marie Group,
a professional services group specialising in forest inventory, growth
and yield modelling and wood supply forecasting. These provisional
evaluations were completed in January 2013 and indicated that
APP will have suficient plantation resources to meet the long-term
demand of its pulp mills. For more information, including an Ata Marie
statement on APP wood low projections, please visit our FCP monitoring
dashboard.
• TFT and APP are now reviewing and verifying baseline growth and yield
data through ield visits. This data will be used to run updated
system-wide projections on ibre supply and demand analysis.
A key component of this is to strengthen APP’s existing forest
architecture planning to allow for an upgrade to a more integrated
Plantation Yield Regulation System (PYRS).
• An initial evaluation covering seven forests, one pulp mill and one paper
mill was completed at the end of June. The study will be extended to all
38 suppliers’ concession areas and is due for completion in December
2013.
1.4
[ Progress Tracking ]
• APP has introduced an updated v 1.1 of the FCP dashboard
monitoring tool. Developed in partnership with TFT, the monitoring
tool allows interested parties to track the implementation of APP’s
Forest Conservation Policy. V 1.1 contains a number of updates
and improvements including:
- Concession-level HCV and HCS progress data;
- Details on APP’s approach to FCP implementation in China;
- Details on APP’s approach to supplier management and assessment
- Updated grievance resolution data.
• APP has been consulting with stakeholders on the content of the
dashboard. All input and feedback will be used to develop a revised
v 2.0 that will go live in early 2014.
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2.
BEST PRACTICE PEATLAND MANAGEMENT
‘APP will support the Government of Indonesia’s low emission
development goal and its target to reduce greenhouse gas emissions.
This will be achieved by ensuring that forested peatland is protected
as part of the commitment to maintain HCVF and HCS forest and
through best practice management to reduce and avoid GHG
emissions within the peatland landscape.’
• As part of the HCV assessment process being undertaken by
APCS and Ekologika, areas of peatland are being identiied within
APP’s supply chain.
• The indings of the HCV assessment reports – and the peatland
indings presented therein – will help to inform a long-term
peatland management and monitoring plan which will be created
in consultation with an independent peat expert team. This will
be integrated
• into APP’s wider Sustainable Forest Management Plan.
APP has already identiied a number of candidates for the
independent peat expert team, using recommendations made
by partners, NGOs and consultants. The team will be formalised
in due course.
3.
SOCIAL AND COMMUNITY ENGAGEMENT
‘In order to avoid and resolve social conlicts across its supply chain,
APP will actively seek and incorporate input and feedback from a wide
range of stakeholders and civil society on a number of social policies
and procedures’.
3.1
[ Transparency and engagement ]
• A Focus Group Discussion (FGD) was held in Jakarta on October 31st.
A continuation of the FGDs held earlier in the year, the objective was
to update stakeholders on FCP progress implementation, and to invite
input on how to address challenges and threats to the FCP. The session
was attended by over 20 NGOs, civil society organisations, and regional
and national government representatives. The challenges highlighted
during the FGD were license overlap and social conlict in the
moratorium area. Options for the use of harvested NFW and the future
use of non-HCS/HCV MTH were also discussed. APP and TFT will use
all input and feedback to develop and implement action points.
Stakeholders will be invited to support in the implementation of
these actions points.
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China
• TFT and APP-China have reviewed APP-China’s social conlict
management system and conducted interviews and site-visits to
a number of villages in North East Hainan selected from existing social
conlict mapping documentation prepared by APP-China. A draft action
plan for social engagement and conlict management across APP-China
operations is now being reviewed internally.
• APP-China has added an additional staff member to the team to focus
speciically on social engagement issues.This marked the irst step in
strengthening APP-China’s social engagement team. APP-China and
TFT will now provide capacity development and on-site training to all
team members. APP-China staff also joined the FPIC training in
Indonesia.
• APP-China, APP-HQ and TFT also held discussions with Landesa,
who in collaboration with The Rights and Resources Initiative (RRI)
conducted a study of APP’s social performance in its plantation
operations in China. Landesa presented their preliminary indings
to APP-China, APP and TFT and these were incorporated into the
aforementioned draft social engagement action plan for APP-China
operations. The oficial report is expected to be provided to APP-China
for review and comment before the end of the year.
3.2
[ Conlict mapping ]
Indonesia
• Conlict mapping training has now been completed for more than 400
of APP’s suppliers’ staff and managers. The aim of the training was to
familiarise staff with APP’s new conlict mapping approach and
methodology and to strengthen their ability to carry out conlict
mapping. Those trained were then asked to carry out conlict mapping
using the new approach and methodology.
• Conlict mapping has now been completed across all 38 APP
suppliers’ concessions.The objective of the mapping is to ensure that
social conlict is identiied, prioritised and managed appropriately.
• TFT has reviewed the mapping results and direct technical support
has been provided to align the quality of the conlict mapping and
APP suppliers’ staff understanding of the methodology and approach.
• TFT and APP are now in the process of developing action plans for all
APP suppliers to determine whether any follow-up training is needed.
APP will provide opportunities for relevant stakeholders to support
APP in the implementation of action plans to address social conlicts.
3.3
[ Social conlict resolution progress ]
Indonesia
• With the support of TFT, APP has been working to resolve a number
of ongoing conlicts between APP’s suppliers and local communities.
These pilot projects are being used to test APP’s conlict resolution
approaches and methods and they will be used as learning and capacity
building opportunities for APP teams as well as to build up engagement
with local communities and civil society representatives.
• An ongoing land tenure conlict in Senyerang village, Jambi province,
has been resolved following the signing of a Memorandum of
Understanding (MoU) by both parties at the Indonesian Ministry of
Forestry in Jakarta.
• A number of other conlict resolution pilot projects are ongoing,
including in Riau province and in South Sumatra. Details of APP’s
progress with these pilot projects can be found in the social engagement
pages of our FCP monitoring dashboard.
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3.4
[ New mill development – Ogan Komiring llir, South Sumatra ]
• APP’s FCP commitments - including its no-deforestation policy and
the Free, Prior and Informed Consent (FPIC) of indigenous people
and local communities – apply to all of APP’s future development
projects.
• With the support of TFT, APP has been mapping all communities
likely to be impacted by the new mill development at Ogan Komiring
llir in South Sumatra. An initial data analysis is complete and
FPIC training for all the new mill managers is now underway.
Once the training is completed, the FPIC process will begin.
• A number of stakeholders have also raised concerns about APP’s
ability to meet the forecast raw material demand of the new pulp
mill. As mentioned in Section 1.3, independent Growth and Yield
studies that were undertaken in Q3 and Q4 2012, alongside APP’s
own internal assessments, have indicated that APP will have
suficient plantation resources to meet the long term forecast
demand of its pulp mills.
• To follow up on these assessments, TFT and APP are now reviewing
and verifying baseline growth and yield data via ield visits.
Assessment results are expected in December 2013.
• Any unforeseen or unplanned shortfall in plantation ibre –
as a result of unavoidable plantation wood losses (e.g. through
disease or wood handling) – will, if necessary, be met through the
purchase and import of certiied plantation chips from overseas
suppliers.
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4.
THIRD-PARTY SUPPLIERS
‘APP sources ibre from all around the world and is developing measures
to ensure that this sourcing supports responsible forest management.’
4.1
[ Global suppliers ]
Indonesia
• APP’s FCP applies to all global suppliers. All Tier One2 global suppliers have been mapped and are being updated over time.
• APP applies a supplier evaluation and risk assessment (SERA) due
diligence process to assess its global suppliers. With the help of
TFT, APP is aligning SERA with both the FCP and Responsible Fibre
Procurement and Processing Policy to ensure that global suppliers
comply with the FCP.
China
• In China, initial risk assessments of APP’s 3rd party suppliers are
ongoing. This is being done through interviews and meetings with
APP pulp and paper mills as well as through a series of on-site
visits. Activity has focused on APP-China’s Jinhai pulp mill,
Jingui pulp mill and Gold East, an APP-China paper mill.
• An independent social assessment has been conducted in
APP-China’s pulpwood concessions. APP-China is also consulting
with stakeholders, including NGOs and government, to develop
a conservation programme at Hainan island.
• Internal training at the Jinhai, Jingui and Gold East mills has also been
conducted to present the RFPPP and FCP concepts to all key personnel
from the procurement and quality control teams of all three mills.
2.
Supplier that directly supplies ibre materials to APP mill. Tier 2 suppliers are suppliers of tier 1 suppliers
and so forth. The last tier is the forest.
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4.2
[ FCP Association Procedure ]
• Following stakeholder consultations earlier in the year, APP has been
developing an Association Procedure that aims to ensure that all future
suppliers or acquisitions are compliant with our FCP and other policies.
• APP shared the elements of the draft Association Procedure with
stakeholders during the last Focus Group Discussion held in Jakarta
on October 31st.
• We will be seeking stakeholder feedback on the draft Association
Procedure.
4.3
[ Responsible Fibre Procurement and Purchasing Policy (RFPPP)
and supplier scorecard ]
Indonesia
• Supplier scorecard assessments for all Indonesian suppliers
were completed in 2012 as part of a phase 1 of Responsible
Fibre Procurement and Purchasing Policy (RFPPP) activity.
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A phase 2 of activity began in Q2 2013 and involves the development
of action plans for each supplier based on the indings of the initial
scorecard assessments. This will continue until December 2013 at
which point action plans will be implemented as part of a phase 3.
China
• In China, TFT has been working with APP on the development
of a scorecard system; a tool for monitoring both APP-China
operations and third party log/chip suppliers against APP’s RFPPP.
The scorecard places special focus on the assessment of
management practices of mills and their associated wood origins.
A irst draft of the scorecard on chip mill and wood origin for 3rd
party chip/log supplier is being developed. A second version of
the scorecard for APP-China operations has been developed and
is now under discussion with APP-China.
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SECTION 3
DIAGRAM 1:
SUSTAINABLE FOREST MANAGEMENT PLANNING
SUSTAINABLE FOREST MANAGEMENT PLANNING PROCESS
The FCP is designed to protect all natural forests, to conserve
forested peatland, and to avoid and resolve social conlict in all
of APP suppliers’ concessions. This will be achieved through
the development and implementation of sustainable management
practices across those concession areas.
The development of management plans is dependent on the progress
of the various assessments currently ongoing across APP suppliers’
concession areas. APP will provide more details regarding the
development of the management plans in due course.
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[
Appendix A
Forest Conservation Policy
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Sept 2013
]
APP’s Forest Conservation Policy applies to:
1. APP and all its suppliers in Indonesia.
2. Any Indonesian ibre utilised by APP’s mills elsewhere, including China.
3. All future expansion.
High Conservation Value (HCV) and High Carbon Stock (HCS) Forests:
Policy commitment 1:
APP and its suppliers will only develop areas that are not forested,
as identiied through independent HCV and HCS assessments:
• From 1st February 2013 all natural forest clearance has been
suspended whilst HCV and HCS assessments are completed.
No further clearance of areas identiied as forest will take place.
• APP has conducted an initial assessment of all of its supply chain.
It has prioritised HCV and HCS assessments in those concessions that
up to now have been supplying the company with natural forest ibre.
HCV and HCS areas will be protected.
• On HCS work has started to identify the area and quality of forest cover.
Satellite analysis, backed up by ield work, will identify areas that will
be protected as well as low carbon areas that can be developed as
plantations.
• The HCS approach distinguishes natural forest from degraded lands
with only small trees, scrub, or grass remaining. It separates
vegetation into 6 different classes (stratiication) through the
combination of analysing satellite images and ield plots. These
thresholds are known in Indonesia as: High Density Forest (HK3),
Medium Density Forest (HK2), Low Density/older regenerating
Forest (HK1), Old Scrub/regenerating forest (BT), Young Scrub (BM),
and Cleared/Open Land (LT). APP’s threshold for HCS will be deined,
following ield analysis, within the category referred to as old scrub (BT).
• Any existing natural forest logs within APP’s supply chain cut before
1st February 2013, such as stocks in log yards, will be utilised by its
mills. Any ibre cleared from land which is not forest, such as scrub land,
will also be utilised by its pulp mills.
• APP will withdraw from all purchase and other agreements with any
supplier who is found not to be in compliance with these commitments.
• These commitments are being monitored by The Forest Trust. APP will
welcome independent 3rd party observers to verify the implementation.
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Peatland management
Policy commitment 2:
APP will support the Government of Indonesia’s low emission
development goal and its target to reduce greenhouse gas emissions
(GHG). This will be achieved by:
• Ensuring that forested peatland is protected as part of its
commitment to maintain HCV and HCS forests.
•
Best practice management to reduce and avoid GHG emissions
within the peatland landscape. As part of achieving this,
no further canal or other infrastructure activities will take place
within undeveloped suppliers’ concessions on non-forested
peatland until independent HCV assessments including input
from peat experts has been completed.
Social and community engagement
Policy commitment 3:
In order to avoid and resolve social conlicts across its supply chain APP
will actively seek and incorporate input and feedback from a wide range
of stakeholders, including civil society, as it implements the following set
of principles:
• Free, Prior and Informed Consent of indigenous people and
local communities
• Responsible handling of complaints
• Responsible resolution of conlicts
• Open and constructive dialogue with local, national and
international stakeholders
• Empowering community development programs
• Respecting human rights
• Recognising and respecting the rights of its workers
• Compliance to all relevant laws and internationally accepted
certiication principles and criteria
Where new plantations are proposed, APP will respect the rights of
indigenous peoples and local communities, including recognition of
customary land rights. APP has committed to independent HCV
assessments as part of this commitment and will, in consultation
with stakeholders, develop further measures to implement FPIC.
APP will consult with NGOs and other stakeholders to ensure that
its protocols and procedures for FPIC and conlict resolution are in
accordance with international best practice.
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Third party suppliers
Policy commitment 4:
APP sources ibre from all around the world and is developing measures to
ensure that this sourcing supports responsible forest management.
[
Appendix B
Monitoring Progress
1. TFT Progress Update
1st TFT FCP Progress Update
2nd TFT FCP Progress Update
3rd TFT FCP Progress Update
4th TFT FCP Progress Update
Are accessible on APP’s website.
]
2. APP FCP Monitoring Dashboard
To seek a username and login click http://www.asiapulppaper.com/contact
To directly access the dashboard click https://tft.chainfood.com/
[
Appendix C
Grievance and monitoring information
]
APP encourages independent observers and stakeholders to participate in
the APP Grievance and Monitoring via the contact information below:
Toll Free Number: 0800 1 401471
Fax: +6221-316 2617
PO-Box: 6604/JKPWK, Jakarta 10350c
Email: [email protected]
Roadmap ViSion
SRV2020
www.asiapulppaper.com
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20
NOVEMBER 2013
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Foreword from Aida Greenbury,
Foreword from Aida Greenbury, Managing Director of
Sustainability and Stakeholder Engagement, APP
This is the fourth report on our progress in implementing APP’s wide
ranging Sustainability Roadmap Vision 2020, announced in June 2012.
It comes nine months after the introduction of the Forest Conservation
Policy (FCP), which brought forward the moratorium on all natural
forest clearance by two years.
Since the policy was launched in February 2013 we have made
considerable progress in carrying out the promised High Conservation
Value (HCV) and High Carbon Stock (HCS) assessments across all
38 of our suppliers’ concessions. As part of the HCV assessment process,
we have begun the complex task of assessing peatland in our suppliers’
concessions. We have also initiated a policy of global responsible ibre
sourcing, and begun implementing an increasingly effective social,
community and conlict resolution programme.
This report comes on the heels of a Greenpeace report assessing
our progress in implementing the FCP. The report highlights achievements
we have made, acknowledges the continuing commitment of our senior
management to the policy, our transparency in reporting developments,
and challenges we must address.
We welcome this report and look forward to continued engagement
with Greenpeace and other stakeholders in the future. More details
can be found later in this document.
Our partner, TFT, continues to publish regular FCP Progress Updates
available through the TFT website and via our online monitoring
dashboard. A pilot version of the dashboard went live in June 2013
and we have been consulting stakeholders on its content since then.
We encourage you to access both the monitoring dashboard and the
TFT reports as a means of tracking our progress.
As ever, your comments are welcome, and you can send these to us at
[email protected]
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FOURTH PROGRESS REPORT
SECTION
1
KEY HIGHLIGHT:
[
GREENPEACE PROGRESS REVIEW
]
On October 28th, Greenpeace published a progress review of our
Forest Conservation Policy (FCP). The report assessed APP’s progress
in implementing the FCP policy commitments, highlighting areas of
positive progress and ongoing challenges, as well as setting out criteria
against which to judge the short and long-term success of our FCP.
APP has welcomed the publication of the Greenpeace Progress Review.
Full details of our response to that report, including the challenges
raised, can be found on our website.
APP is pleased that the Greenpeace report has recognised our efforts
in moving ahead on key areas of the FCP implementation. That includes
our overall implementation of the natural forest and undeveloped
peatland moratoriums. The report also highlighted APP’s self-disclosure
of two FCP moratorium breaches and the corrective actions it has taken
to improve the management and implementation of the FCP.
Greenpeace also welcomes our decision to introduce independent
third-party auditing of FCP implementation.
APP is in complete agreement with the criteria Greenpeace have
set out in order to judge the short and long term success of its FCP.
This includes the continued delivery of the forest and undeveloped
peatland development moratoriums, the quality of the
High Conservation Value (HCV), High Carbon Stock (HCS),
peatland and social assessments, as well as the recommendations
and enhanced management plans that will arise from these
assessments. For more details on how APP is proposing to address
the challenges raised in the Greenpeace report, please access our
full response on our website.
We welcome the clarity of advice that Greenpeace is giving
customers wishing to engage with APP, stating that ongoing
implementation of the FCP should be one of the conditions of
doing business with the company. APP believes that additional scrutiny
provided by buyers can only help APP in the continued implementation
of the FCP. This level of engagement with customers will send a clear
signal to the market that the actions being taken by APP are genuine
and should be commended.
The scrutiny of Greenpeace, and many other stakeholders, has been
an important driver of our progress towards ‘No Deforestation’ and
greater transparency. We remain more committed than ever to the
ambitious task we have set ourselves and look forward to continued
engagement with Greenpeace and a range of other stakeholders in
the months and years ahead.
SRV2020
[
Nov 2013
EPN/EEPN PERFORMANCE MILESTONES
6
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]
In September, the European and North American Environmental Paper
Networks published a report detailing seven performance milestones
developed by their afiliated civil society organisations to help external
stakeholders assess the implementation of our FCP and Sustainability
Roadmap Vision 2020 commitments. The milestones cover the four
FCP policy commitments as well as a number of the commitments laid
out in our Sustainability Roadmap: Vision 2020.
APP welcomes the introduction of the EPN/EEPN milestones and
fully supports any measures that allow external parties to monitor
our performance in delivering both the FCP and Roadmap
commitments.
5
It is for this reason that APP has committed both to the introduction
of an independent third-party auditing of FCP implementation, and
to enhanced transparency measures (such as the FCP monitoring
dashboard) that allow our stakeholders to track and monitor
our progress.
We have reviewed the EPN/EEPN performance milestones in
detail and we are conident that our implementation of the FCP
and Roadmap commitments is on track and that together with
our stakeholders we will be able to address the challenges of
implementing such an ambitious zero deforestation policy. APP’s
full response on how it is addressing the targets and milestones laid
out by both the EPN and the EEPN can be found on our website.
SRV2020
[
Nov 2013
NATURAL FOREST WOOD ACCEPTANCE DEADLINE
7
]
The monitoring and processing of natural forest wood (NFW), previously
known as Mixed Tropical Hardwood or MTH, cut prior to the introduction of
the moratorium has been an important concern for our stakeholders since
we announced the Forest Conservation Policy earlier this year.
It was agreed that APP’s mills would use all NFW cut prior to the
moratorium and that a collaborative approach would be taken to monitor
its consumption and traceability. However, following further consultation with
stakeholders, we established a cut-off date, August 31st 2013, after which
no further NFW cut prior to the moratorium could enter APP’s pulp mills.
After this date, APP’s mills would not accept any further timber from natural
forests as identiied through High Conservation Value (HCV)
and High Carbon Stock (HCS) assessments.
APP can conirm that as of 1st September 2013, APP’s mills are no longer
accepting any wood sourced from natural forests. Final stock inventory
igures1 – following adjustments to account for measurement uncertainty –
indicate that the total amount of pre-February NFW was 1,606,098 m3.
Of this, 899,663 m3 had been received by APP’s mills by August 31st 2013.
Of the remaining NFW, APP’s suppliers have sold 46,494 m3 to third
parties, 56,120 m3 has been allocated for internal use (e.g. infrastructure),
and handling losses account for 60,541 m3. 543,280m3 of NFW
pulpwood remains stockpiled at APP suppliers’ concessions.
APP’s pulp mills will now process the NFW that remains in its log yards.
TFT and APP will continue to track the processing of that NFW and provide
details via APP’s FCP monitoring dashboard. Independent Observers have
been invited to join this monitoring process.
The 543,280 m3 of NFW stockpiled across APP suppliers’ concessions is
a ire risk, and an end use needs to be found for it. APP is currently working
with stakeholders and NGOs to identify an alternative use for this pulpwood.
For a breakdown of NFW processing igures please access APP’s FCP
Monitoring Dashboard.
1.
Final stock inventory igures – including all igures for the resolution of NFW cut prior to the February 5th moratorium
– were subject to very minor revisions on 1st November 2013, as a result of a inal stock inventory validation exercise
completed by TFT and APP. These minor revisions supersede NFW igures presented in TFT’s 4th Progress Update.
8
SECTION
2
[
FOREST CONSERVATION
POLICY COMMITMENT
PROGRESS
The Forest Conservation Policy
has four components:
1. Identiication and protection of
High Conservation Value (HCV)
and High Carbon Stock (HCS)
forests
2. Best practice
peatland management
3. Social and community
engagement
4. Ensuring compliance
from third party suppliers
]
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1.
IDENTIFICATION AND PROTECTION OF HIGH CONSERVATION VALUE (HCV)
AND HIGH CARBON STOCK (HCS) FORESTS
‘APP and its suppliers will only develop areas that are not forested,
as identiied through independent HCVF and HCS assessments.’
1.1
[ Forest Clearance Moratorium ]
• With the launch of the FCP, APP suppliers implemented
a moratorium on natural forest clearance effective February 1st 2013.
The moratorium allows for High Conservation Value (HCV) and High
Carbon Stock (HCS) assessments to be undertaken. All areas
identiied as HCV and HCS will be protected as part of an integrated
sustainable forest management plan.
• Since our 3rd Roadmap Progress Update was published in June
2013, an additional moratorium breach was identiied as well as
a breach of our FCP policy on new peatland development. These
were self-reported by APP in September 2013. Since the FCP was
announced in February 2013, there have been two forest moratorium
breaches and a peatland development breach.
• APP’s moratorium is in place across more than 2.6 million hectares
of APP pulpwood suppliers’ concession areas. The two forest
moratorium breaches have resulted in a total forest clearance of
140 hectares, in addition to the 27.8 hectare breach of new peatland
development.
MORATORIUM BREACHES –PT. BDL AND PT. SPM
• Following a TFT investigation of the case in PT Riau Indo Agropalma
(RIA), APP’s Joint Steering Committee (JSC) ordered an urgent review
to determine whether other similar cases existed that could threaten
APP’s moratorium or implementation of its FCP. As a result of that
review process, two APP pulpwood suppliers – PT. Sekato Pratama
Makmur (SPM) and PT. Bina Duta Laksana (BDL) in Riau –
were identiied as having similar cases as the one in RIA.
• A subsequent investigation conirmed no forest moratorium breach had
taken place at SPM but a breach of APP’s FCP policy on new peatland
development had occurred in BDL. It was not possible to determine
whether the peatland area cleared (27.8 hectares) was HCS forest due
to the fact that assessments were ongoing in this area.
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• The 27.8 hectares was cleared because, like in the RIA case,
the FCP Implementation Team wrongly approved the continuation
of development on forested land allocated for community use
under the government’s community livelihood area programme
(TK) without prior consultation with the JSC.
MORATORIUM BREACH – SOUTH SUMATRA
• In addition to the speciic audit resulting from the RIA case, ongoing
monitoring of FCP implementation by TFT and APP identiied a
moratorium breach in South Sumatra at PT. Bumi Andalas Permai
(BAP), PT. Sebangun Bumi Andalas (SBA), and PT. Bumi Mekar
Hijau (BMH), South Sumatra.
• A total area of 69.45 hectares of HCS was wrongly cleared in BMH,
BAP and SBA after 1st February 2013, a result of land clearance in
an area marked as a “No Go” zone during a pre-assessment phase
of activity.
• APP requested that this pre-assessment be done in South Sumatra
to identify ‘low risk’ areas for ongoing plantation development in
order to meet future pulpwood demand. Areas identiied as “No Go”
were awaiting full HCV, HCS and peatland assessments.
• The TFT/APP investigation indicated that the breach could have been
avoided if operational teams had:
a) been provided with a robust checklist of actions and
documents for formal signoff;
b) implemented more stringent supervision and
monitoring process before any land development had occurred.
• No other land development operations across APP’s supply base
were subjected to pre-assessments.
As a result of these cases, new procedures have now been introduced
by APP/TFT to prevent any such issues from occurring again. Not only
are we now addressing these issues, but we are also using the indings
to improve the way we implement the FCP.
Comprehensive TFT veriication reports have been published for both
of the above cases and can be accessed via APP’s FCP monitoring
dashboard.
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1.2
[ HCV and HCS Assessments ]
• HCV and HCS assessments are currently underway
across all 38 APP suppliers’ concessions across Indonesia.
• Asia Paciic Consulting Solutions (APCS) is conducting HCV
assessments across 11 suppliers’ concessions and will complete
them by Q4 2013. Ekologika is conducting HCV assessments on
the other 27 concessions, due for completion in Q2 2014.
TFT is conducting all HCS assessments.
• APP will use the assessment results and recommendations
to develop a Sustainable Forest Management (SFM) plan detailing
how it proposes to go about managing and protecting all areas
identiied as HCV and HCS.
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HCV
• Full assessments for the irst 11 concessions have now been
completed. APCS is inalising its draft reports before delivery to APP.
• Assessments across the 27 suppliers’ concessions are ongoing in Riau,
East Kalimantan, West Kalimantan, and South Sumatra. Seven
concessions are undergoing full assessment, while 20 concessions
are in the pre-assessment stage. Ekologika aims to submit all reports
to APP by end of March 2014.
HCS
• HCS assessments began in January 2013. The irst priority 20 concessions are
targeted for completion in Q4 2013 with the remaining 18 due in early 2014.
• The irst wave of HCS stratiication and ield assessments for the irst
priority 20 concessions is now complete. Following a team review and
additional analysis and work from external consultants, Ata Marie, a reinement
stage and supplementary ieldwork are now required to improve the correlation
between the GIS overlays (forest strata) and plot ield data. The HCS team will
initially test this process of reinement in a small pilot area before deploying
across all other concessions areas.
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1.3
[ Plantation Growth & Yield Assessment ]
• In 2012 and early 2013, independent Growth & Yield assessments were
undertaken to review the long-term availability of plantation ibre to feed
APP pulp mills. The assessments focused on the plantation growth and
pulpwood log yields of APP suppliers’ plantations.
• In addition to an APP internal assessment, one initial assessment
was conducted by TFT and a second was done by Ata Marie Group,
a professional services group specialising in forest inventory, growth
and yield modelling and wood supply forecasting. These provisional
evaluations were completed in January 2013 and indicated that
APP will have suficient plantation resources to meet the long-term
demand of its pulp mills. For more information, including an Ata Marie
statement on APP wood low projections, please visit our FCP monitoring
dashboard.
• TFT and APP are now reviewing and verifying baseline growth and yield
data through ield visits. This data will be used to run updated
system-wide projections on ibre supply and demand analysis.
A key component of this is to strengthen APP’s existing forest
architecture planning to allow for an upgrade to a more integrated
Plantation Yield Regulation System (PYRS).
• An initial evaluation covering seven forests, one pulp mill and one paper
mill was completed at the end of June. The study will be extended to all
38 suppliers’ concession areas and is due for completion in December
2013.
1.4
[ Progress Tracking ]
• APP has introduced an updated v 1.1 of the FCP dashboard
monitoring tool. Developed in partnership with TFT, the monitoring
tool allows interested parties to track the implementation of APP’s
Forest Conservation Policy. V 1.1 contains a number of updates
and improvements including:
- Concession-level HCV and HCS progress data;
- Details on APP’s approach to FCP implementation in China;
- Details on APP’s approach to supplier management and assessment
- Updated grievance resolution data.
• APP has been consulting with stakeholders on the content of the
dashboard. All input and feedback will be used to develop a revised
v 2.0 that will go live in early 2014.
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2.
BEST PRACTICE PEATLAND MANAGEMENT
‘APP will support the Government of Indonesia’s low emission
development goal and its target to reduce greenhouse gas emissions.
This will be achieved by ensuring that forested peatland is protected
as part of the commitment to maintain HCVF and HCS forest and
through best practice management to reduce and avoid GHG
emissions within the peatland landscape.’
• As part of the HCV assessment process being undertaken by
APCS and Ekologika, areas of peatland are being identiied within
APP’s supply chain.
• The indings of the HCV assessment reports – and the peatland
indings presented therein – will help to inform a long-term
peatland management and monitoring plan which will be created
in consultation with an independent peat expert team. This will
be integrated
• into APP’s wider Sustainable Forest Management Plan.
APP has already identiied a number of candidates for the
independent peat expert team, using recommendations made
by partners, NGOs and consultants. The team will be formalised
in due course.
3.
SOCIAL AND COMMUNITY ENGAGEMENT
‘In order to avoid and resolve social conlicts across its supply chain,
APP will actively seek and incorporate input and feedback from a wide
range of stakeholders and civil society on a number of social policies
and procedures’.
3.1
[ Transparency and engagement ]
• A Focus Group Discussion (FGD) was held in Jakarta on October 31st.
A continuation of the FGDs held earlier in the year, the objective was
to update stakeholders on FCP progress implementation, and to invite
input on how to address challenges and threats to the FCP. The session
was attended by over 20 NGOs, civil society organisations, and regional
and national government representatives. The challenges highlighted
during the FGD were license overlap and social conlict in the
moratorium area. Options for the use of harvested NFW and the future
use of non-HCS/HCV MTH were also discussed. APP and TFT will use
all input and feedback to develop and implement action points.
Stakeholders will be invited to support in the implementation of
these actions points.
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China
• TFT and APP-China have reviewed APP-China’s social conlict
management system and conducted interviews and site-visits to
a number of villages in North East Hainan selected from existing social
conlict mapping documentation prepared by APP-China. A draft action
plan for social engagement and conlict management across APP-China
operations is now being reviewed internally.
• APP-China has added an additional staff member to the team to focus
speciically on social engagement issues.This marked the irst step in
strengthening APP-China’s social engagement team. APP-China and
TFT will now provide capacity development and on-site training to all
team members. APP-China staff also joined the FPIC training in
Indonesia.
• APP-China, APP-HQ and TFT also held discussions with Landesa,
who in collaboration with The Rights and Resources Initiative (RRI)
conducted a study of APP’s social performance in its plantation
operations in China. Landesa presented their preliminary indings
to APP-China, APP and TFT and these were incorporated into the
aforementioned draft social engagement action plan for APP-China
operations. The oficial report is expected to be provided to APP-China
for review and comment before the end of the year.
3.2
[ Conlict mapping ]
Indonesia
• Conlict mapping training has now been completed for more than 400
of APP’s suppliers’ staff and managers. The aim of the training was to
familiarise staff with APP’s new conlict mapping approach and
methodology and to strengthen their ability to carry out conlict
mapping. Those trained were then asked to carry out conlict mapping
using the new approach and methodology.
• Conlict mapping has now been completed across all 38 APP
suppliers’ concessions.The objective of the mapping is to ensure that
social conlict is identiied, prioritised and managed appropriately.
• TFT has reviewed the mapping results and direct technical support
has been provided to align the quality of the conlict mapping and
APP suppliers’ staff understanding of the methodology and approach.
• TFT and APP are now in the process of developing action plans for all
APP suppliers to determine whether any follow-up training is needed.
APP will provide opportunities for relevant stakeholders to support
APP in the implementation of action plans to address social conlicts.
3.3
[ Social conlict resolution progress ]
Indonesia
• With the support of TFT, APP has been working to resolve a number
of ongoing conlicts between APP’s suppliers and local communities.
These pilot projects are being used to test APP’s conlict resolution
approaches and methods and they will be used as learning and capacity
building opportunities for APP teams as well as to build up engagement
with local communities and civil society representatives.
• An ongoing land tenure conlict in Senyerang village, Jambi province,
has been resolved following the signing of a Memorandum of
Understanding (MoU) by both parties at the Indonesian Ministry of
Forestry in Jakarta.
• A number of other conlict resolution pilot projects are ongoing,
including in Riau province and in South Sumatra. Details of APP’s
progress with these pilot projects can be found in the social engagement
pages of our FCP monitoring dashboard.
SRV2020
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3.4
[ New mill development – Ogan Komiring llir, South Sumatra ]
• APP’s FCP commitments - including its no-deforestation policy and
the Free, Prior and Informed Consent (FPIC) of indigenous people
and local communities – apply to all of APP’s future development
projects.
• With the support of TFT, APP has been mapping all communities
likely to be impacted by the new mill development at Ogan Komiring
llir in South Sumatra. An initial data analysis is complete and
FPIC training for all the new mill managers is now underway.
Once the training is completed, the FPIC process will begin.
• A number of stakeholders have also raised concerns about APP’s
ability to meet the forecast raw material demand of the new pulp
mill. As mentioned in Section 1.3, independent Growth and Yield
studies that were undertaken in Q3 and Q4 2012, alongside APP’s
own internal assessments, have indicated that APP will have
suficient plantation resources to meet the long term forecast
demand of its pulp mills.
• To follow up on these assessments, TFT and APP are now reviewing
and verifying baseline growth and yield data via ield visits.
Assessment results are expected in December 2013.
• Any unforeseen or unplanned shortfall in plantation ibre –
as a result of unavoidable plantation wood losses (e.g. through
disease or wood handling) – will, if necessary, be met through the
purchase and import of certiied plantation chips from overseas
suppliers.
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4.
THIRD-PARTY SUPPLIERS
‘APP sources ibre from all around the world and is developing measures
to ensure that this sourcing supports responsible forest management.’
4.1
[ Global suppliers ]
Indonesia
• APP’s FCP applies to all global suppliers. All Tier One2 global suppliers have been mapped and are being updated over time.
• APP applies a supplier evaluation and risk assessment (SERA) due
diligence process to assess its global suppliers. With the help of
TFT, APP is aligning SERA with both the FCP and Responsible Fibre
Procurement and Processing Policy to ensure that global suppliers
comply with the FCP.
China
• In China, initial risk assessments of APP’s 3rd party suppliers are
ongoing. This is being done through interviews and meetings with
APP pulp and paper mills as well as through a series of on-site
visits. Activity has focused on APP-China’s Jinhai pulp mill,
Jingui pulp mill and Gold East, an APP-China paper mill.
• An independent social assessment has been conducted in
APP-China’s pulpwood concessions. APP-China is also consulting
with stakeholders, including NGOs and government, to develop
a conservation programme at Hainan island.
• Internal training at the Jinhai, Jingui and Gold East mills has also been
conducted to present the RFPPP and FCP concepts to all key personnel
from the procurement and quality control teams of all three mills.
2.
Supplier that directly supplies ibre materials to APP mill. Tier 2 suppliers are suppliers of tier 1 suppliers
and so forth. The last tier is the forest.
SRV2020
Sept 2013
4.2
[ FCP Association Procedure ]
• Following stakeholder consultations earlier in the year, APP has been
developing an Association Procedure that aims to ensure that all future
suppliers or acquisitions are compliant with our FCP and other policies.
• APP shared the elements of the draft Association Procedure with
stakeholders during the last Focus Group Discussion held in Jakarta
on October 31st.
• We will be seeking stakeholder feedback on the draft Association
Procedure.
4.3
[ Responsible Fibre Procurement and Purchasing Policy (RFPPP)
and supplier scorecard ]
Indonesia
• Supplier scorecard assessments for all Indonesian suppliers
were completed in 2012 as part of a phase 1 of Responsible
Fibre Procurement and Purchasing Policy (RFPPP) activity.
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A phase 2 of activity began in Q2 2013 and involves the development
of action plans for each supplier based on the indings of the initial
scorecard assessments. This will continue until December 2013 at
which point action plans will be implemented as part of a phase 3.
China
• In China, TFT has been working with APP on the development
of a scorecard system; a tool for monitoring both APP-China
operations and third party log/chip suppliers against APP’s RFPPP.
The scorecard places special focus on the assessment of
management practices of mills and their associated wood origins.
A irst draft of the scorecard on chip mill and wood origin for 3rd
party chip/log supplier is being developed. A second version of
the scorecard for APP-China operations has been developed and
is now under discussion with APP-China.
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SECTION 3
DIAGRAM 1:
SUSTAINABLE FOREST MANAGEMENT PLANNING
SUSTAINABLE FOREST MANAGEMENT PLANNING PROCESS
The FCP is designed to protect all natural forests, to conserve
forested peatland, and to avoid and resolve social conlict in all
of APP suppliers’ concessions. This will be achieved through
the development and implementation of sustainable management
practices across those concession areas.
The development of management plans is dependent on the progress
of the various assessments currently ongoing across APP suppliers’
concession areas. APP will provide more details regarding the
development of the management plans in due course.
SRV2020
[
Appendix A
Forest Conservation Policy
25
Sept 2013
]
APP’s Forest Conservation Policy applies to:
1. APP and all its suppliers in Indonesia.
2. Any Indonesian ibre utilised by APP’s mills elsewhere, including China.
3. All future expansion.
High Conservation Value (HCV) and High Carbon Stock (HCS) Forests:
Policy commitment 1:
APP and its suppliers will only develop areas that are not forested,
as identiied through independent HCV and HCS assessments:
• From 1st February 2013 all natural forest clearance has been
suspended whilst HCV and HCS assessments are completed.
No further clearance of areas identiied as forest will take place.
• APP has conducted an initial assessment of all of its supply chain.
It has prioritised HCV and HCS assessments in those concessions that
up to now have been supplying the company with natural forest ibre.
HCV and HCS areas will be protected.
• On HCS work has started to identify the area and quality of forest cover.
Satellite analysis, backed up by ield work, will identify areas that will
be protected as well as low carbon areas that can be developed as
plantations.
• The HCS approach distinguishes natural forest from degraded lands
with only small trees, scrub, or grass remaining. It separates
vegetation into 6 different classes (stratiication) through the
combination of analysing satellite images and ield plots. These
thresholds are known in Indonesia as: High Density Forest (HK3),
Medium Density Forest (HK2), Low Density/older regenerating
Forest (HK1), Old Scrub/regenerating forest (BT), Young Scrub (BM),
and Cleared/Open Land (LT). APP’s threshold for HCS will be deined,
following ield analysis, within the category referred to as old scrub (BT).
• Any existing natural forest logs within APP’s supply chain cut before
1st February 2013, such as stocks in log yards, will be utilised by its
mills. Any ibre cleared from land which is not forest, such as scrub land,
will also be utilised by its pulp mills.
• APP will withdraw from all purchase and other agreements with any
supplier who is found not to be in compliance with these commitments.
• These commitments are being monitored by The Forest Trust. APP will
welcome independent 3rd party observers to verify the implementation.
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Peatland management
Policy commitment 2:
APP will support the Government of Indonesia’s low emission
development goal and its target to reduce greenhouse gas emissions
(GHG). This will be achieved by:
• Ensuring that forested peatland is protected as part of its
commitment to maintain HCV and HCS forests.
•
Best practice management to reduce and avoid GHG emissions
within the peatland landscape. As part of achieving this,
no further canal or other infrastructure activities will take place
within undeveloped suppliers’ concessions on non-forested
peatland until independent HCV assessments including input
from peat experts has been completed.
Social and community engagement
Policy commitment 3:
In order to avoid and resolve social conlicts across its supply chain APP
will actively seek and incorporate input and feedback from a wide range
of stakeholders, including civil society, as it implements the following set
of principles:
• Free, Prior and Informed Consent of indigenous people and
local communities
• Responsible handling of complaints
• Responsible resolution of conlicts
• Open and constructive dialogue with local, national and
international stakeholders
• Empowering community development programs
• Respecting human rights
• Recognising and respecting the rights of its workers
• Compliance to all relevant laws and internationally accepted
certiication principles and criteria
Where new plantations are proposed, APP will respect the rights of
indigenous peoples and local communities, including recognition of
customary land rights. APP has committed to independent HCV
assessments as part of this commitment and will, in consultation
with stakeholders, develop further measures to implement FPIC.
APP will consult with NGOs and other stakeholders to ensure that
its protocols and procedures for FPIC and conlict resolution are in
accordance with international best practice.
SRV2020
Sept 2013
27
28
SRV2020
Sept 2013
Third party suppliers
Policy commitment 4:
APP sources ibre from all around the world and is developing measures to
ensure that this sourcing supports responsible forest management.
[
Appendix B
Monitoring Progress
1. TFT Progress Update
1st TFT FCP Progress Update
2nd TFT FCP Progress Update
3rd TFT FCP Progress Update
4th TFT FCP Progress Update
Are accessible on APP’s website.
]
2. APP FCP Monitoring Dashboard
To seek a username and login click http://www.asiapulppaper.com/contact
To directly access the dashboard click https://tft.chainfood.com/
[
Appendix C
Grievance and monitoring information
]
APP encourages independent observers and stakeholders to participate in
the APP Grievance and Monitoring via the contact information below:
Toll Free Number: 0800 1 401471
Fax: +6221-316 2617
PO-Box: 6604/JKPWK, Jakarta 10350c
Email: [email protected]