Sustainable Forest Management and

Biodiversity Conservation Assessment

Assess the implementation of commitments made under

Asia Pulp and Paper’s Sustainability Roadmap – Vision 2020

and Forest Conservation Policy

Han Ye

University Number: 3035201445

MSc in Environmental Management (2014-2015)

The University of Hong Kong

1

Chapter 1 Introduction

1.1 Company Background

Asia Pulp & Paper, known as APP in the paper industry, with 14 major companies in Indonesia

and China, is one of the largest pulp and paper companies in the world [1]. With nine pulp and

paper production facilities in Indonesia, APP has a current annual combined pulp, paper, and

packaging-grade capacity of more than 9 million tons per year, and delivers its products tissue,

packaging and paper to more than 120 countries across six continents [2].

Apart from mills and other operations, APP has 5 main forest and plantation areas in Indonesia

located on Java and Sumatra islands. Sinarmas Forestry is the management team that

represents APP pulpwood suppliers, currently manage 38 concessions which is the forest

management units based on government forest concession licenses. APP has the responsibility

to manage and monitor its suppliers’ activities [2].

1.2 Sustainable Forest Management

In general, sustainable forest management (SFM) is the process of planning and implementing

practices for the stewardship and use of forests and other wooded land in a manner that

embrace sustainable use and conservation of forests [3]. According to the United Nations, the

aim of SFM is to maintain and enhance the economic, social and environmental values of all

types of forests through human interventions, for the benefit of present and future

generations.

Sustainable forest criteria and indicators that are widely adopted is summarized in the following

seven areas [4]:

- Extent of forest resources

- Biological diversity

- Forest health and vitality

- Productive functions and forest resources

- Protective functions of forest resources

- Socio-economic functions

- Legal, policy and institutional framework.

1.3 Forest Certification

2

In response to concerns about logging practices and forest conversion, especially in tropical

regions [5], third-party forest certification emerged as a credible tool for communicating the

environmental and social performance of forest operations. Third-party forest certification

programs typically require forest management practices of the operation conform to the

standards of sustainable forest management developed by an independent organization. The

functions of forest certification include promote sustainable forest management practices to

the forest operators and provide verification to the paper and wood products that come from

the forests that are well-managed and legally harvested [6]. Programme for the Endorsement

of Forest Certification (PEFC) and Forest Stewardship Council (FSC) are the two largest

international certification schemes among all the certification standards worldwide, addressing

the diversity of forest types and tenures [7].

3

Chapter 2 APP’s Sustainability Roadmap Vision 2020

2.1 Background of APP’s Sustainability Journey

Asia Pulp & Paper (APP) has been criticized to be one of the most controversial paper

producers on the planet because of its extensive clearance of rainforest in Indonesia

[8]. Many of the clearances as well as illegal logging are on peatland, which is the

vital rainforest habitat. This type of habitat is especially important for numerous

endangered species such as Sumatran tiger, orangutan, Javan Rhinoceros and

Sumatran Elephants [9]. The destruction of peatland by development and operation

of plantations in peatland is a major source of greenhouse gas emissions in

Indonesia. In addition, many conflicts with local communities and indigenous people

raised because of APP’s operations.

Although APP has obtained several environmental quality management certifications

for its operations and productions, tackling the problems of fiber sourcing,

plantation and deforestation became APP’s main focus in the recent years. APP’s

determination of achieving sustainable forest management throughout its supply

chain is put into action through implementing APP’s Sustainability Roadmap Vision

2020 and Forest Conservation Policy. In June 2012, APP launched its Sustainability

Roadmap Vision 2020, covers eleven impact areas each of which has a number of

subsidiary and specific goals. The Sustainability Roadmap serves as company’s guide

for achieving a ‘whole business’ sustainability operating model. The Sustainability

Roadmap continues to develop over time, and the goals stated in the Roadmap will

be updated along the actual implementation.

2.2 Summary of Sustainability Roadmap Vision 2020

Under the Sustainability Roadmap, there are several elements, policies and

individual programs addressing respective areas of sustianbility. Quarterly progress

reports and annual sustainability reports are published on APP’s website for

comunicating the progress and achievement of implementing of the Sustainablility

Roadmap.

4

Targets and Components

“To become a leading and respected global pulp and paper company that provides

superior value to customers, community, employees and shareholders, responsibly

and sustainably” is the vision of the Sustainability Roadmap. The listed areas of

commitments are the central of APP’s sustainability strategy, shows a clear picture

of the goals to be achieved by the year of 2020.

- Reforestation

- Fiber Sourcing

- Conservation and Biodiversity

- Emissions

- Solid Waste

- Water Management

- Employee Welfare

- Community Empowerment and Welfare

- Indigenous People

- Human Rights

- Climate Change

Forest Conservation Policy

The Forest Conservation Policy (FCP) was, in effect, an update to APP’s Vision 2020:

Sustainability Roadmap, at its heart lies a company-wide commitment to zero

deforestation throughout APP’s supply chain.

There are four commitments underpinning the overall objective of the Forest

Conservation Policy:

Policy commitment 1: APP and its suppliers will only develop areas that are not

forested, as identified through independent High Conservation Value Forest (HCVF)

and High Carbon Stock (HCS) assessments.

Policy commitment 2: 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 its commitment

to maintain HCVF and HCS forests.

5

Policy commitment 3: APP will implement the following set of principles: Free,

Prior and Informed Consent (FPIC) of indigenous people and local communities;

Responsible handling of complaints; Responsible resolution of conflicts; Open and

constructive dialogue with local, national and international stakeholders;

Empowering community development programs; Respecting human rights;

Recognizing and respecting the rights of its workers; Compliance with all relevant

laws and internationally accepted certification principles and criteria.

Policy commitment 4: APP sources fiber from all around the world and is developing

measures to ensure that this sourcing supports responsible forest management.

Sustainability Roadmap Vision 2020 Reports

There are three regular report forms that APP uses to track the progress and update

its sustainability commitments, as well as, show its commitment to transparency.

- Roadmap Vision 2020 Status Reports / Forest Conservation Policy Reports

- TFT Progress Reports

The Forest Trust (TFT) as a partner of APP publishes regular assessment reports

on APP’s progress and to support fulfilling APP’s commitment to full transparency

and ongoing monitoring.

- Grievance Verification Reports

One Million Hectare Commitment

In April 2014, APP introduced its commitment to support the conservation of one

million hectares of rainforest in Indonesia. The concept involves matching the

approximately one million hectares of established plantation across APP and

suppliers’ concessions, with an equivalent area of protected forest. APP adopts and

promotes a landscape-scale approach and identified ten priority forest landscapes

and peatland landscapes for protection and restoration.

6

Chapter 3 Assessment of Sustainability Roadmap

3.1 Methodology

The assessment of APP’s Sustainable Roadmap Vision 2020 is based on close

examining of APP’s guidance report and sustainable policies through four methods.

First method is in the form of literature review of sustainable forest management.

Second method is cross-examining APP’s standards with international standards.

Third is interviewing with corporate representative, NGOs’ representatives and

industry experts. Forth method is an onsite evaluation of APP’s operation and

conservation implementation through observation.

Literature review as the first method is used to get a basic idea of the international

sustainable forest management standards, as well as the current status of

sustainable forest management in APP. Many countries and organization have

developed their own standards, criteria and indicators. The assessment standards

which are adopted to compare APP’s standards with, are developed based on FSC

Harmonised Certification Bodies’ Forest Stewardship Standard for the Republic of

Indonesia and Revised ITTO criteria and indicators for the sustainable management

of tropical forests. The International Tropical Timber Organization (ITTO) is an

intergovernmental organization promoting the conservation and sustainable

management, use and trade of tropical forest resources. Its 59 members represent

more than 75% of the world’s tropical forests and 90% of the global tropical timber

trade [10]. These two assessment templates or guidelines are chosen because they

are widely accepted and adopted for assessing sustainable forest management.

Further, these standards are published by world recognized authorities. The purpose

of the ITTO C&I is to provide member countries with a tool for monitoring, assessing

and reporting changes and trends in forest conditions and management systems.

The interviews are conducted through face-to-face meeting with APP

representatives, APP Executive, Greenpeace representatives and conference call with

TFT Executive Director. The meeting and conference include presentation by APP

representatives and interview based on designed questions to respective

organizations. APP’s company structure, progress of implementing sustainable

policies and future plan are presented in the presentation. Answers of specific

designed questions are recorded during the interviews.

Onsite observations were conducted during arboretum tour, visit to Rasau Kuning

plantation area, Indah Kiat Perawang Pulp & Paper Mill tour, Arara Abadi Forestry

Research and Development center visit and Giam Siak Kecil-Bukit Batu Biosphere

Reserve. Photographs and observation results are recorded, together with

7

supplementary documents and brochures provided by APP are collected for further

analysis and evaluation.

3.2 Assessment of Sustainable Forest Management

Criterion 1: Enabling conditions for sustainable forest management

Policy, legal and governance framework

1.1 APP can prove the existence and implementation of policies, laws and regulations to

govern forest management. The introduction of Forest Conservation Policy demonstrate a

long-term commitment to adhere to the sustainable forest management plan.

1.2 Long-term tenure and use rights to the land and forest resources are clearly defined,

documented and legally established. But the boundary of the land licensed to APP is not

clearly defined due to overlapping licenses. The plantation sectors of the same area are

licensed to different industries at the same time. Unclear land use rights and tenure pose

threats to APP’s implementation of forest conservation and management measures. In

order to clear the obstacles before achieving Sustainable Roadmap commitments, APP

must work with government to resolve the licensing issue.

Economic framework

1.3 Amount of funding in forest management, administration, research and human

resource development is ensured. Since APP has launched Sustainable Roadmap Vision

2020, the funding for forest management research is allocated. The funding for forest

conservation is still at the stage of initiation, assessment and planning.

Institutional framework

1.4 Besides the availability of financial resources, there are adequate institutions and

personnel to undertake sustainable forest management. APP’s Solutions Working Group

(SWG) brings together APP and its outside experts, with civil society organizations working

to conserve Indonesia’s forests and wildlife and secure community rights in an informal,

non-legally binding form. In addition, APP has formed several assessment teams for High

Carbon Stock (HCS), High Conservation Value (HCV) and peatland forest assessments.

These include effective implementing agencies, research institutions and appropriately

trained personnel to ensure that management is in accordance with scientific and technical

knowledge.

1.5 APP has the ability to apply, appropriate technology to practice sustainable forest

management and the efficient utilization and marketing of forest products. Through the

onsite observation, APP has applied several technologies in maintaining its plantation.

Planning framework

1.6 The development of Integrated Sustainable Forest Management Plans (ISFMP) shows

8

that APP has enough capacity and mechanisms for planning sustainable forest

management. In 2014, the Pilot ISFMP got underway in Jambi Province. The final

sustainable forest management plans will integrate the various assessment findings

including HCS, HCV, peatland, social mapping and Growth and Yield (plantation fiber

availability) into long-term action plan. APP still needs periodic monitoring, evaluation and

feedback on the progress of ISFMP development and implementation.

1.7 APP Forest Conservation Policy (FCP) Dashboard, stakeholder meetings and other

multiple stakeholder engagement platforms allows public participation in forest

management planning, decision-making, data collection, monitoring and assessment. APP

consider stakeholders to be employees, governments, customers, NGOs, contractors,

suppliers, educational establishments, host communities, unions and media (sustainability

report book).

1.8 Based on onsite observation and interview with APP representatives, the forest

management plans are existing in the current operations. The existing forest

management plans comply with all the national level regulations. The development of

ISFMP is an important step for APP to manage all its forests including suppliers in a

sustainable way and beyond national regulations and requirements.

Criterion 2: Extent and condition of forests

2.1 2.6 million hectares, 38 concession areas of which 9 are APP Forest Management Unit

(FMU) and 29 are suppliers’ FMU, are under evaluation. Moratorium on natural forest

clearance and end of using natural forest fibres effective from February 1st 2013 is the first

step APP took to end deforestation. There will be no more operation in concession

areas until HCV and HCS assessments are completed.

2.2 Extent (area) of forests committed to production and protection will be designed and

managed when the HCV and HCS assessments are completed and the results are included

in the development of Integrated Sustainable Forest Management Plan. Forest

Conservation Policy commitment: APP and its suppliers only develop areas that are not

forested, as identified through independent HCV and HCS assessments. In the Sustainability

Roadmap Vision 2020, APP stated it will support the national target to preserved

designated protected and conservation areas.

2.3 HCV assessments are for identifying high conservation and value areas, as one of APP’s.

Forest Conservation Policy commitment. High Conservation Value areas are those that

contain biological, ecological, social or cultural values which are considered critically

important or outstandingly significant. Asia-Pacific Consulting Solutions (APCS) and

Ekologika have undertaken independent assessments using on-the-ground data collection

to categorize the forest area. 11 HCV assessment result reports are published on APP

9

dashboard. Those reports contain the outputs of which determine the location of

management plans need to be in place to maintain and enhance those values, as well as

recommendations for further assessment and conservation actions.

2.4 HCS assessments are carried out to identify boundaries of natural forest. And the

reports are expected to be published on monitoring dashboard after the completion of

assessments in the end of 2014. High Carbon Stock areas are those where the land has a

high concentration of organic matter above ground, therefore, the protection of these

areas is critical in mitigating climate change. APP intends to develop a methodology and the

necessary tools to account for above and below ground carbon balance for its forest in

Indonesia.

2.5 At least 10% of the forest area is designated as a conservation zone, identified on maps.

Half of this area as 5% of total forest area is designated as a protected area and identified

on maps, and is fully protected from commercial harvesting. However, the management of

the protected area with biodiversity as a major objective is not clearly shown on the

Sustainability Roadmap.

Criterion 3: Environmental impact

3.1 Assessment of environmental impacts of each concession shall be completed,

appropriate to the scale, intensity of forest management and the uniqueness of the

affected resources. AMDAL– Indonesian Environmental Feasibility Assessment

(Environmental Impact Assessment) is done for each APP’s operations prior to

commencement of site-disturbing. The AMDAL consists of several documents including the

Terms of Reference, Environmental Impact Statement and Environmental Management

and Monitoring Plans [11]. The AMDAL process includes a comprehensive consultation and

socialization program with local, provincial and central stakeholders [11]. The subsequent

documentations are submitted to and approved by Indonesian authorities.

3.2 APP stated in Responsible Fibre Procurement & Processing Policy, a policy under

Sustainability Roadmap, it will ensure that a multi-stage environmental assessment process

is conducted prior to forest plantation development. In addition to government regulated

assessments, APP will also pursue the High Conservation Value (HCV) Forest assessment in

accordance with HCV Resources Network methodology and tools.

3.3 “On environmental sustainability, we believe that continuous improvements in raw

material sourcing and utilization, process efficiency, environmental impact/footprint

minimization and supply chain management are core disciplines in achieving a better

environment.” stated in APP Responsible & Sustainable Business Declaration. However, the

impacts of using pesticides, chemicals, biological control of pests in the plantation are not

clearly addressed in any of the Roadmap reports. APP R&D center did not carry out any

10

comprehensive research about mitigating all kinds of impacts.

3.4 In the Sustainability Report, APP expressed its concern about biodiversity loss, “Based

on the Environmental Impact Assessment conducted prior to plantation development, one

potential impact of our suppliers’ operations, both in terms of plantation development and

ongoing management, and is the loss of diversity.”

3.5 FCP commitment 2: “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 its commitment to maintain HCV

and HCS forests.” The environmental impact of peatland clearance for plantation and other

agricultural activities is huge, as the peatland has high carbon stock, the released carbon

dioxide during burning peatland is the major greenhouse gas. Other impacts includes loss

habitats which is critical for peatland species and air, water, soil pollution. APP’s action of

peatland study and protection is a great step forward to mitigate those environment

impact. But considering the speed of peatland destruction, the protection and

management need to be put into real action as soon as possible.

Criterion 4: Forest production

Fiber Sourcing (APP Forest Conservation Commitments)

4.1 100% independent 3rd party verification for pulpwood legality is achieved.

4.2 Zero High Conservation Value (HCV) Fibre commitment is on track. APP pulp wood

suppliers in January 2013 stopped all conversion of natural forest for HCV and HCS

assessments.

4.3 APP sets the goal to achieve 100% sustainable plantation wood for pulp by 2015,

subject to maximum tolerance of 5% for waste and residue. As the suppliers stopped

delivery of natural forest wood to APP pulp mills by end of August 2013, APP has achieved

its commitment partially. The sustainability of the plantation wood has to be certified by

Sustainable Forest Management Certification Programs.

4.4 46% of the pulpwood is Sustainable Forest Management (SFM) certified. PEFC has

endorsed Indonesian Forestry Certification Cooperation (IFCC). The certifying of pulpwood

process by IFCC will be complete in 2015 to 2016, by then APP will have 100% of its

products certified by PEFC.

Resource assessment (APP Responsible Fibre Procurement & Processing Policy)

4.5 APP is committed to only accept wood that is properly checked and verified as to legal

origin and chain of custody; wood harvested that does not violate traditional and civil

rights; wood harvested in forests in which high conservation values are protected by forest

11

management activities.

Planning and control procedures

4.6 Existence and implementation of forest harvesting/operational plans (within forest

management plans) and other harvesting permits is confirmed during site visit and

interviewing with APP representatives.

4.7 Existence of a log-tracking system or similar control mechanisms cannot be proved

since the document is not published.

Long-term projections, strategies and plans for forest production

4.8 In 2013, APP commissioned TFT and Ata Marie to conduct an independent Growth and

Yield study to determine the capability of its suppliers’ plantation base to provide sufficient

plantation pulpwood to sustain the production. The scope of the study is based on

concession data from 2005-2012. And the study finalized and confirmed that APP does

have sufficient resources to meet wood demand of the mills.

4.9 The Growth and Yield study identified a number of efficiency gains and management

improvement practices which could substantially increase the wood yield.

An action plan will be prepared included silvicultural and operation improvements to

improve plantation yields, contains action such as:

- Minimizing wood losses and improving wood recovery through optimized

mechanical harvesting

- Improving the growth rate of the plantations through the introduction of a species

improvement programme

- Improvement of management systems including monitoring.

- Improvement in land utilization

4.10 The findings from the Growth and Yield study are under analyzing and management

recommendations will be integrated into APP’s Integrated Sustainable Forest Management

Plans (ISFMP).

Criterion 5: Biological diversity

Ecosystem diversity

5.1 With the completion of HCV assessment, forest area possess high biodiversity will be

further protected and managed regards to Sustainability Roadmap commitments.

5.2 In April 2014, APP introduced its One Million Hectare Commitment to support the

conservation of one million hectares of rainforest in Indonesia. 10 forest and peatland

landscape are identified using landscape approach for protection and restoration efforts.

Because those landscapes are among the most ecologically valuable, yet simultaneously

12

threatened. Kubu landscape is one of the pilot scheme, which is categorized into lowland

tropical forest, peat swamp forest and mangrove forest. APP’s conservation activity will

focus on three key species, proboscis monkeys, Borneo orangutans, and Irrawaddy

dolphins.

5.3 In August 2013 Sinarmas Forestry, in collaboration with UNESCO MAB, LIPI, Ministry of

Forestry and the local government of Riau, launched the Giam Siak Kecil-Bukit Batu (GSK-

BB) Biosphere Reserve Vision 2020 Roadmap to Sustainable Co-Management.

5.4 One existing shortage of designing of protected areas is the lack of biological corridors

or ‘stepping stones’ to increase the connectivity of protected areas and mobility of the

organisms.

Species diversity

5.5 APP committed to support the national target to increase by 3% the population of 14

specific endangered species.

5.6 APP has demonstrated procedures to identify and protect endangered, rare and

threatened species of forest-dependent flora and fauna, including Javan Rhino monitoring,

Sumatran tiger population studies and elephant conservation programme. But the depth of

those conservation actions remains a question.

5.7 Based on the arboretum site visit, the studies on several high conservation value tree

species are being conducted.

Genetic diversity

5.8 No existing measures are planned in the Sustainability Roadmap for in situ and/or ex

situ conservation of genetic variation within commercial, endangered, rare and threatened

species of forest flora and fauna.

Procedures for biodiversity conservation in production forests

5.9 The HCV assessment also includes biodiversity aspects and form part of biodiversity

management tool post-assessment. The Sustainability Roadmap and related policies and

procedures identified actions that are taken to protect maintain, enhance and safeguard

the presence of rare, threatened and endangered species and their habitats as a whole.

5.10 APP is in the process of establishing a foundation to fund those extensive conservation

initiatives and encourage the involvement from third parties. The four key objectives of the

foundation will be to:

- Maintain viable populations of the four key species (orangutans, rhinos, elephants

and tigers)

13

- Identify, protect and where necessary restore critical habitats

- Stabilize and then increase key species populations over time.

- Secure the funding and capacity required to meet these objectives.

Criterion 6: A management plan and monitoring

6.1 Based on the information obtained during visiting the Research and Development

Center of APP, the research about tree production and improvement programs have many

breakthroughs such as development of species with enhanced properties to protect against

disease and reduce chemical and water requirement. The R&C provide most cultivated

trees that are planted in APP’s and its suppliers’ concessions.

6.2 To achieve sustainably and responsibly managed plantations, APP is developing

Integrated Sustainable Forest Management Plans (ISFMPs) which combine the results of all

assessment work including HCV, HCS, peatland, social conflict mapping and growth and

yield. It is a long-term action plans for its suppliers. In 2014, two pilot schemes have been

introduced in Jambi Province, Indonesia.

6.3 APP developed its pulpwood supplier scorecards in order to track and monitor the

implementation of sustainability policies and for the future ISFMPs. The scorecards

incorporate seven elements: social, environment, health and safety, planning, human

rights, chain of custody and administration, including over 800 criteria that every supplier is

expected to meet. The suppliers will be monitored every three months to assess the

compliance against the scorecard. These are the primary requirements aligned to the

necessary certification schemes.

Criterion 7: Social and community engagement

Social conflict resolution

7.1 Compliance with all relevant laws and internationally accepted certification principles

and criteria is one of the principle in the Forest Conservation Policy.

7.2 APP reported its social conflict mapping and resolution on its dashboard website, and

claims that APP and its suppliers will continue to engage with local communities, apply the

principles of responsible handling of complaints and resolution of conflicts. The conflict

resolution process is made up of 4 stages:

(1) Conflict mapping;

(2) Development of action plans (based on the conflict mapping results);

(3) Implementation and reporting;

(4) Monitoring and evaluations;

And conflict resolution plans are developed and agreed with stakeholders and incorporated

into management plans. Three current conflicts in Riau (Datuk Rajo Malayu), Jambi

(Senyerang) and South Sumatra (Riding) are resolved and agreements are signed to solve

14

long-running dispute.

7.3 APP committes to have open and constructive dialogue with local, national and

international stakeholders.

Forest worker’s right

7.4 APP Responsible Fibre Procurement & Processing Policy made the commitment that

wood harvested in compliance with the International Labor Organization (ILO) Core

Conventions, which include the ILO Code of Practice on Safety and Health in Forestry Work.

7.5 The Sustainability Roadmap or relevant policy has not mentioned any training, capacity-

building and manpower development programs for forest workers.

7.6 Another FCP principle is recognizing and respecting the rights of its workers. Existence

and implementation of procedures to ensure the health and safety of forest workers

Cultural aspects

7.7 In the Sustainability Roadmap, the identification and protection of important

archaeological, cultural and spiritual sites are not mentioned.

7.8 APP empowered several community development programs. Its Flagship CSR

development project in Soran Ecotourism village, Yogyakarta is completed. The project

objective was to create a sustainable, self-sufficient ecotourism destination that protects

and promotes local historic cultural traditions. APP supported community by investment in

developing the village infrastructure and provide education, training. However, long-term

supporting and monitoring shall be considered.

Community and indigenous peoples’ rights and participation

7.9 Tenure and user rights of communities and indigenous peoples over publicly owned

forests are recognized and practiced in Sustainability Roadmap. In the Forest Conservation

Policy, APP stated it will respect the rights of indigenous peoples and local communities,

including recognition of customary land rights.

7.10 Indigenous peoples will be compensated for the application of their traditional

knowledge regarding the use of forest species or management systems in forest

operations. However, the extent to which indigenous knowledge is used in forest

management planning and implementation is not presented in the Sustainability Roadmap.

7.11 As part of APP’s Forest Conservation Policy, the company adopted Free, Prior and

informed Consent (FPIC) principles for all new developments, including suppliers’ new

plantation development. APP claims the involvement of indigenous peoples, local

15

communities and other forest dwellers in forest management capacity-building,

consultation processes, decision-making and implementation.

16

Chapter 4 Conclusion

4.1 Research Limitations

The critical review of APP’s Sustainability Roadmap is mainly based on the

information and document provided on APP’s website and site visit. As the

achievements and information about Sustainability Roadmap are mostly presented in

a quantitative way, therefore, the evaluation is rather qualitative than quantitative.

This poses a difficulty to conduct more neutral and accurate assessments. APP’s

purposed Integrated Sustainable Forest Management Plans (ISFMPs) is not yet

available, the evaluation of APP’s sustainable forest management policies and

measurements are limited to its reports generated in the current phase (end of 2014)

of Sustainability Roadmap reports, forest assessment results and primary

implementation feedbacks.

There are several design shortages in the evaluation template and criteria due to lack

of professional knowledge. However, most of the criteria are developed from the

international recognized templates. Objective evaluation is limited to personal

understanding of the Sustainability Roadmap and assessment criteria.

4.2 APP milestones

The most significant achievement in APP’s Roadmap is the moratorium of forest and

peatland clearance. Apart from the two moratorium cases, the overall

implementation of this policy has been very successful. The deforestation and

peatland lost rate will slow down in some extent due to APP’s contribution in

conservation. After the implementation of FCP, APP realized the deficiency of

traditional models of forest conservation, hence, APP introduced the commitment to

support the conservation of one million hectares of rainforest in Indonesia.

The successful implementation of Forest Conservation Policy throughout the entire

supply chain brings a good start of APP’s journey of sustainable forest management.

The HCV, HCS, peatland, growth and yield assessment are going to be completed in

the year of 2015, and individual results and reports are published on monitoring

17

dashboard successively. The prototype of ISFMPs has been tested out in few of APP’s

concessions.

Overall, APP has made great effort in ensuring transparency by publishing

Sustainability Roadmap reports and engaging with third party and NGOs to

monitoring its progress. Third-party auditing has been carried out to verify the

transparency and implementation. However, the efforts may not be easily

determined by one or two organizations, APP should keep engaging and inviting

stakeholders to check the accuracy and transparency.

4.3 Improvement and recommendations

In 2007, the Forest Stewardship Council (FSC) dissociated with APP due to concerns

regarding APP’s forest practices. With the implementation of Forest Conservation

Policy (FCP), FSC is willing to engage with APP to know the implementation of

sustainable forest policies. From my point of view, FSC’s principles and criteria are

not limited to the principles listed on FCP and other Sustainability Roadmap policies.

There is a lot more effort to be made to achieve FSC requirements. APP is on a right

track as it has started series of forest conservation programs and assessments.

The next stage for APP sustainable forest management is to assess its pilot schemes

and integrate all the data and assessment results into a comprehensive management

plan. APP should demonstrate the outcomes from these different assessments are

being effectively aligned and integrated. APP should have more stakeholder and

experts from various field engage in every stage of developing Integrated Sustainable

Forest Management.

Green technologies and environmental protection measures have been widely

implemented in its paper and pulp production mills. However, green technologies

and measures are not widely used in its plantation, harvesting or forest

management. APP is lack of research in some aspects of sustainable forest

management. Firstly, APP’s R&D is mainly focused on tree species and growth and

yield, it is missing an important part of forest management, which is water and soil

protection. The environment impact of plantation is huge, apart from direct impact

18

and damage to the rainforest habitat, and biodiversity, the alteration of water and

soil composition and many physical and chemical characters will have a profound

influence on the whole rainforest ecosystem.

APP’s former production and operation in Indonesia had cost extensive disturbance

to the environment and rainforest ecosystem. The damage and long-term impact are

unmeasurable, some are irreversible. APP is funding many conservation and

restoration projects as well as co-managing reserves. The effectiveness of all the

conservation actions has to be evaluated by individual institutes, authorities or

NGOs. APP should also keep revising and mending its forest protection policies and

measurements according to specific situation. Consistent commitment, solid

implementation, international cooperation and forward-looking vision and planning

are especially crucial. It is a long and tough way for APP, Indonesia government

even the whole word to fight against deforestation, peatland lost, and species

extinction.

19

Reference:

[1] Businessweek, Company Overview of Asia Pulp & Paper Group,

http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId

=345755, Accessed on 29th December 2014.

[2] APP, 2013, APP Sustainability Report 2013,

https://www.asiapulppaper.com/sites/default/files/flippingbook/2013/index.html#2

, Accessed on 29th December 2014.

[3] FAO, Food and Agriculture Organization of the United Nation, 2014, Sustainable

Forest Management, http://www.fao.org/forestry/sfm/85084/en/, Accessed on 29th

December 2014.

[4] Forestry Department, Food and Agriculture Organization of the United Nations,

2001, Criteria and Indicators for Sustainable Forest Management: A Compendium,

http://www.fao.org/docrep/004/AC135E/AC135E00.HTM, Accessed on 29th

December 2014.

[5] Forestry Innovation Investment, British-Colombia Forest Fact, Third-Party

Certification in British-Colombia,

http://www.naturallywood.com/sites/default/files/Third-Party-Certification.pdf,

Accessed on 29th December 2014.

[6] National Association of State Foresters, 2008, FOREST CERTIFICATION AS IT

CONTRIBUTES TO SUSTAINABLE FORESTRY,

http://stateforesters.org/files/2008.Forest%20Certification.pdf, Accessed on 29th

December 2014.

[7] Wikipedia, http://en.wikipedia.org/wiki/Sustainable_forest_management,

Accessed on 29th December 2014.

[8] Rhett A. Butler, 2014, Debating deforestation in Indonesia and APP's forest

conservation policy, http://travel.mongabay.com/news/2014/0124-app-forum.html,

Accessed on 30th December 2014.

[9] Rainforest Action Network, Indonesia’s Rainforests: Biodiversity and Endangered

Species,

20

http://www.ran.org/indonesia_s_rainforests_biodiversity_and_endangered_species,

Accessed on 30th December 2014.

[10] ITTO, About ITTO, http://www.itto.int/about_itto/, Accessed on 25th December

2014

[11] AMDAL, Indonesian Environmental Feasibility Assessment,

http://www.wedabaynickel.com/en/commitment-to-people-and-nature/impact-

assessments/the-amdal/, Accessed on 30th December 2014