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  • Overall approach
    3/16
    • Overarching commitment on deforestation
      0/6
      Deforestation commitment
      Commodity-specific commitment
      0/6
      Commodities (if applicable): Palm oil; Pulp & Paper
      "ZERO DEFORESTATION As a leading global pulp and paper company, APP is committed to Zero Deforestation throughout its supply chain." [...] "Golden Agri-Resources (GAR) wants to ensure that our palm oil operations are deforestation-free, traceable and bring benefits to the communities where we operate."
    • Signatory to an initiative tackling deforestation
      1/1
      Signatory
      Yes
      1/1
      Which initiatives?: New York Declaration on Forests
      "Golden Agri Declares Strong Commitment to the New YorkDeclaration on Forests at the UN Climate Summit 2014."
    • Awareness of the value of forests
      1/1
      Awareness
      Yes
      1/1
      "Conserve High Carbon Stock (HCS) forest and High Conservation Value (HCV) area and continue restoration efforts.Conserve critical peatland ecosystems.Protect Indonesia's flora and fauna, focusing on the three priority wildlife and ten species of rare trees."
    • Deforestation as a business risk
      1/1
      Business risk
      Yes
      1/1
      Does the company recognise the risk as financial, operational, competition, reputational, or other? Please detail.: Reputational
      "Negative perceptions and public campaigns against palm oil based on concerns surrounding deforestation can result reputational damage and lead to potential boycotts/loss of markets. We assess this risk through various ways including monitoring of media reports, social campaigns and market intelligence gathering. "
    • High-level management of deforestion
      0/1
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      0/3
    • Reporting on emissions from land-use change
      0/3
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
  • Commodity score
    33/84
    • Palm oil
      63/84
      • Commitment Strength
        22/28
        • Commitment to protect priority forests
          8/12
          • Commitment details
            Zero-gross deforestation
            6/8
            Commitment to protect priority forests
            Zero-gross deforestation
            6/8
            Which certification schemes are used?: RSPO
            "We have strong commitments under the GSEP to no deforestation, no development on peat, no burning etc and we report on these through our sustainability report, dashboard and website. We also participate in sustainable palm oil certification schemes including RSPO, ISCC and ISPO. We submit Annual Communications of Progress to RSPO.[...] Under the current regulatory conditions, we expect to complete the RSPO certification process by 2020."
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
            Commitment applies to all regions, suppliers and operation
            No
            0/2
            If no, what is excluded?: Subsidary
            "We have strong commitments under the GSEP to no deforestation, no development on peat, no burning etc and we report on these through our sustainability report, dashboard and website. We also participate in sustainable palm oil certification schemes including RSPO, ISCC and ISPO. We submit Annual Communications of Progress to RSPO.[...] Under the current regulatory conditions, we expect to complete the RSPO certification process by 2020."
          • Target date
            Current/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            1.3/1.3
            "We have strong commitments under the GSEP to no deforestation, no development on peat, no burning etc and we report on these through our sustainability report, dashboard and website. We also participate in sustainable palm oil certification schemes including RSPO, ISCC and ISPO. We submit Annual Communications of Progress to RSPO.[...] Under the current regulatory conditions, we expect to complete the RSPO certification process by 2020."
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            "We have strong commitments under the GSEP to no deforestation, no development on peat, no burning etc and we report on these through our sustainability report, dashboard and website. We also participate in sustainable palm oil certification schemes including RSPO, ISCC and ISPO. We submit Annual Communications of Progress to RSPO.[...] Under the current regulatory conditions, we expect to complete the RSPO certification process by 2020."
        • Commitment to protect High Carbon Stock areas and/or peatlands
          8/8
          • Commitment details
            Yes
            4/4
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            4/4
            Type of commitment: HCS; Peat
            "We have strong commitments under the GSEP to no deforestation, no development on peat, no burning etc and we report on these through our sustainability report, dashboard and website. We also participate in sustainable palm oil certification schemes including RSPO, ISCC and ISPO. We submit Annual Communications of Progress to RSPO.[...] Under the current regulatory conditions, we expect to complete the RSPO certification process by 2020."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "We have strong commitments under the GSEP to no deforestation, no development on peat, no burning etc and we report on these through our sustainability report, dashboard and website. We also participate in sustainable palm oil certification schemes including RSPO, ISCC and ISPO. We submit Annual Communications of Progress to RSPO.[...] Under the current regulatory conditions, we expect to complete the RSPO certification process by 2020."
          • Target date
            Current/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            1.3/1.3
            "We have strong commitments under the GSEP to no deforestation, no development on peat, no burning etc and we report on these through our sustainability report, dashboard and website. We also participate in sustainable palm oil certification schemes including RSPO, ISCC and ISPO. We submit Annual Communications of Progress to RSPO.[...] Under the current regulatory conditions, we expect to complete the RSPO certification process by 2020."
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            "We have strong commitments under the GSEP to no deforestation, no development on peat, no burning etc and we report on these through our sustainability report, dashboard and website. We also participate in sustainable palm oil certification schemes including RSPO, ISCC and ISPO. We submit Annual Communications of Progress to RSPO.[...] Under the current regulatory conditions, we expect to complete the RSPO certification process by 2020."
        • Commitment to a traceable supply chain
          6/8
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            "We are working to expand full TTP to our entire palm supply chain involving third-party mills which supply our downstream facilities (refineries) by end 2020."
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
            Commitment applies to all regions, suppliers and operation
            No
            0/2
            If no, what is excluded?: Operations
          • Target date
            Current/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            1.3/1.3
            "We are working to expand full TTP to our entire palm supply chain involving third-party mills which supply our downstream facilities (refineries) by end 2020."
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            What date is given for the interim milestone(s)?: 2020
            "We are working to expand full TTP to our entire palm supply chain involving third-party mills which supply our downstream facilities (refineries) by end 2020."
      • Social Considerations
        14/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: UN Declaration for HR
          "Respecting human rights We commit to upholding and promoting the United Nations Universal Declaration of Human Rights5 for all workers, contractors, indigenous peoples and local communities in all company operations. [...] Prohibit the use of forced or bonded labour [...] Prohibit the use of child labour [...] Respect workers’ freedom of association and the right to collective bargaining [...] Discrimination"
        • Inclusion of small-scale farmers
          Yes
          4/4
          Inclusion of small-scale farmers
          Yes
          4/4
          What is the nature of that support?: Technical assistance/support; Economic
          "We support the inclusion of smallholders and local businesses into our sustainable supply chain and aim to help them comply with our sustainability policy in fair, transparent and accountable partnerships. We continue to fully support the development of plasma smallholders and are committed to improving the productivity of plasma smallholders. We provide them with high yielding seeds, transfer of knowledge and capacity building through training on best agricultural practices."
        • Gender equality in the supply chain
          Equality in the supply chain
          2/4
          Gender equality in the supply chain
          Equality in the supply chain
          2/4
          "We recognise, respect and strengthen the rights of all our workers including contract, temporary, casual and migrant workers of all genders.. We provide equal opportunities for all workers, and embrace diversity regardless of ethnicity, religion, disability,gender, political affiliation, sexual orientation or union membership. We shall ensure that workers are protected from any discrimination in all stages of the employment relationship..Practice zero tolerance of sexual and all other forms of harassment and abuse.", "We shall not knowingly source from any suppliers who refuse to comply with this policy"
        • Commitment to remediation
          Yes
          2/2
          Commitment to remediation
          Yes
          2/2
          "We will review our business dealings with all suppliers who are found to be in breach of our policy. We recognise that suppliers may need time to comply with our policy requirements. We will work with them through direct engagement to encourage and support them in taking remedial time-bound actions to correct any violations"
        • Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          "As part of the implementation of the Social and Community Engagement Policy that GAR/SMART compiled with inputs from TFT, it is important to implement the Free, Prior, Informed & Consent (FPIC). This is to ensure a decision-making process by the indigenous people and local communities is done without pressure and intimidation (free), performed before an activity that has impact on the surrounding communities is carried out (prior), and with sufficient knowledge about the activity and its impact on the surrounding communities (informed), so they may express agreement or disagreement to such activity (consent)."
      • Reporting and Implementation
        27/38
        • Reporting against commitments
          6/6
          • Commitment to protect priority forests
            Yes
            2/2
            Commitment to protect priority forests
            Yes
            2/2
            "To date, 257,621 hectares of plantations including smallholders plantation 51,128 hectares, 29 mills, 9 kernel crushing plants, 6 refineries, 7 bulking stations and 1 oleochemical plant have received RSPO certification."
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            2/2
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            2/2
            "To date, 257,621 hectares of plantations including smallholders plantation 51,128 hectares, 29 mills, 9 kernel crushing plants, 6 refineries, 7 bulking stations and 1 oleochemical plant have received RSPO certification."
          • Commitment to a traceable supply chain
            Yes
            2/2
            Commitment to a traceable supply chain
            Yes
            2/2
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: Yes
            "By end 2017, GAR achieved 100% Traceability to the Plantation for its owned mills and is now working with its third-party suppliers to achieve Traceability to the Plantation by end 2020. As of end 2019, we have achieved 78% TTP for our entire palm supply chain (GAR-owned mills and third-party supplier mills)."
        • Reporting is independently verified
          3/4
          • Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO Certification

            Which processes or groups does the company use for third party verification?: RSPO Certification
            "We have strong commitments under the GSEP to no deforestation, no development on peat, no burning etc and we report on these through our sustainability report, dashboard and website. We also participate in sustainable palm oil certification schemes including RSPO, ISCC and ISPO. We submit Annual Communications of Progress to RSPO.[...] Under the current regulatory conditions, we expect to complete the RSPO certification process by 2020."
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes: third-party
            1.3/1.3
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes: third-party
            1.3/1.3
            "We have strong commitments under the GSEP to no deforestation, no development on peat, no burning etc and we report on these through our sustainability report, dashboard and website. We also participate in sustainable palm oil certification schemes including RSPO, ISCC and ISPO. We submit Annual Communications of Progress to RSPO.[...] Under the current regulatory conditions, we expect to complete the RSPO certification process by 2020."
          • Commitment to a traceable supply chain
            No
            0/1.3
        • Deforestation cut off date
          Yes
          2/2
          Deforestation cut off date
          Yes
          2/2
          Cut-off date: 2015
          "We adopted the Forest Conservation Policy applicable to our primary operations in 2011. Subsequently this was included in our updated sustainability policy, the GSEP Golden Agri-Resources (GAR Social and Environmental Policy) in 2015. The cutoff date for our palm suppliers is therefore 2015"
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What is the nature of that participation?: Attending & contributing to meetings; Providing support/advice/experience/expertise

          What initiatives does the company participate in?: Peat Ecosystem Rehabilitation in West Kalimantan; Riparian Ecosystem Restoration in Tropical Agriculture (RERTA) Project; Orangutan Foundation International (OFI)
          "We engage with the Indonesian government in various initiatives including: 1. boosting smallholder productivity through supporting national replanting schemes 2. collaborating with the Peat Restoration Agency to implement best practices in Riau and Jambi 3. working with authorities on long-term management of fire and haze"
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          How frequently are assessments conducted?: annually
          "We have rolled out the HCS approach in all our concessions. This includes HCS assessments by third parties to identify conservation areas. We also conduct HCV assessments. These are carried out by third-party assessors and HCV reports after 2015 are submitted for HCV Resource Network approval. We monitor our HCS/HCV areas continuously through satelite/radar and drone technology. We also conduct annual internal and external audits and reporting on this area."
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "We want to ensure that GAR upstream and downstream palm oil operations are deforestation free, traceable and bring benefits to the people and communities where we operate. Core to this are: [...] 4. Marketplace and Supply Chain; Traceable and transparent supply chain, support to suppliers, due diligence and grievance procedures, compliance with all relevant national laws and international certifications principles and criteria [...] The supply chain is checked for compliance with our NDPE commitments and we are able to better monitor and take action if any of our suppliers are non-compliant in areas such as deforestation."
        • Accessible grievance mechanism
          Yes
          4/4
          Accessible grievance mechanism
          Yes
          4/4
          Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: Yes

          Details of the mechanism: Social; Environmental

          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, focused on social issues, focused on environmental issues, etc.)?: webform and compliance email address
          " GAR is responsive to grievances from external parties. This includes any individuals, government organisations, NGOs or media outlets with concerns related to the implementation of GAR’s sustainability policies. GAR values the input of stakeholders in helping to achieve the aims of the policies and in enhancing transparency throughout its supply chain." [...] "For further information, please contact:Lim Shu LingHead, Sustainability CommunicationsTel: (65) 6590 0800Email: shuling.lim@goldenagri.com.sg"
        • Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          Which certification schemes are used?: RSPO

          What is the non-certified/non-compliant volume?: 985,671 tons

          What is the certified volume?: 1,320,328.67 tons
          In the 2020 CDP Forest report, GAR reported their total usage of palm oil as 2,306,000 tons, of which 1,320,328.67 tons were RSPO certified.
        • Upstream: Impact assessments for land development/acquisition
          No
          0/4
        • Upstream: Reporting production/processing locations
          Reports location of company-owned processing facilities
          1/4
          Upstream: Reporting production/processing locations
          Reports location of company-owned processing facilities
          1/4
          In what country(ies) does the company operate and/or source material?: Indonesia

          What is the total area in production (in ha)?: 0 ha
          GAR report their processing operations on a map.
        • Downstream: Publishing supplier lists
          Yes report direct suppliers; Yes report indirect suppliers
          4/4
          Downstream: Publishing supplier lists
          Yes report direct suppliers; Yes report indirect suppliers
          4/4
          For what percent of suppliers' production areas are point locations disclosed?: 100%

          From what country(ies) does the company source material?: Malaysia, Indonesia

          Does the company disclose location of suppliers' production areas or primary processing sites?: Yes

          For what percent of smallholder suppliers is location disclosed?: 100%
          "We are committed to building a fully traceable and transparent supply chain, which includes mapping smallholder farmers in our supply chain. We have achieved 100% traceability to palm oil mills since 2015 and have set a time-bound plan to achieve traceability to plantations by 2020."
        • Upstream: Monitor compliance of production/processing
          Yes using a third-party monitoring system
          4/4
          Upstream: Monitor compliance of production/processing
          Yes using a third-party monitoring system
          4/4
          How frequently is compliance assessed?: Not disclosed

          If so, what jurisdictions and mechanisms does the company use?: Not disclosed

          What tools, processes, bodies carry out monitoring of the company's production or processing operations?: Internal checks, audits, certification, satellite monitoring

          Does the company use a jurisdictional monitoring mechanism?: No

          Does the company use a certification system?: Yes
          "Regular internal checks and audits are conducted to ensure proper implementation of these environmental management commitments. External checks/audits for annual certification process for sustainable palm oil. Continuous physical monitoring of conservation areas using satellite, drones and radar is carried out."
        • Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          Details of monitoring: Using certification

          How frequently is compliance assessed?: annually
          "We assess our entire supply chain annually for compliance with our sustainability/NDPE policy through desk research and spatial analysis. This allows us to monitor implementation of our sustainability commitments such as no deforestation. We are also able to use the data to identify the high-risk suppliers and target them for further intervention and support towards responsible production including site visits, targeted training and sharing of best practices in areas like no-deforestation."
        • Downstream: Engagement with non-compliant suppliers
          Engage with suppliers with a time-bound threat of exclusion
          2/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers with a time-bound threat of exclusion
          2/2
          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
          "Non-compliance is judged on severity of case and willingness of supplier to engage/change. Suppliers who do not change/engage after several outreach attempts by GAR for eg continued incidents of deforestation; no response to contact attempts are deemed non-compliant. For suppliers engage, we help them achieve and maintain compliance with time-bound action plans including targeted training; strengthening processes and procedures; implementing traceability; and formalization of NDPE policies. Since deep engagement efforts began in 2015, about 10 suppliers have also undertaken HCS/HCV assessments. Former suppliers who can demonstrate substantive change can reengage with GAR - timeframe depends on complexity of case."
        • Downstream: Disclosure of non-compliant suppliers
          Yes (engaged); Yes (excluded)
          2/2
          Downstream: Disclosure of non-compliant suppliers
          Yes (engaged); Yes (excluded)
          2/2
          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: no individual list but names are listed
          GAR have a full interactive list of both their own operations and third party suppliers with live statuses
    • Pulp & Paper
      35/84
      • Commitment Strength
        12/28
        • Commitment to protect priority forests
          8/12
          • Commitment details
            Zero-gross deforestation
            6/8
            Commitment to protect priority forests
            Zero-gross deforestation
            6/8
            "To ensure that our supply chain is free from deforestation, APP Sinar Mas requires all pulpwood suppliers--both current and potential to comply with our Forest Conservation Policy (FCP) as well as our Responsible Fiber Procurement and Purchasing Policy (RFPPP)."
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
            Commitment applies to all regions, suppliers and operation
            No
            0/2
            If no, what is excluded?: Subsidary
            "To ensure that our supply chain is free from deforestation, APP Sinar Mas requires all pulpwood suppliers--both current and potential to comply with our Forest Conservation Policy (FCP) as well as our Responsible Fiber Procurement and Purchasing Policy (RFPPP)."
          • Target date
            Current/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            1.3/1.3
            "To ensure that our supply chain is free from deforestation, APP Sinar Mas requires all pulpwood suppliers--both current and potential to comply with our Forest Conservation Policy (FCP) as well as our Responsible Fiber Procurement and Purchasing Policy (RFPPP)."
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            "To ensure that our supply chain is free from deforestation, APP Sinar Mas requires all pulpwood suppliers--both current and potential to comply with our Forest Conservation Policy (FCP) as well as our Responsible Fiber Procurement and Purchasing Policy (RFPPP)."
        • Commitment to reduce use of virgin wood fibre
          4/8
          • Commitment details
            Yes
            4/4
            Commitment to reduce use of virgin wood fibre
            Yes
            4/4
            Type of commitment: Recycled content
            "We wholly support the role of recycled content in the global pulp and paper supply chain. Indeed, we manufacture many products with recycled content. However, wood fibre can only be recycled a limited number of times due to degradation, so a source of virgin fibre will always be needed. With the rapid harvest rotation of our forest plantations, APP has a sustainable source of renewable virgin fibre that can ultimately be used as recycle." [....] As of 2020 APP Sinar reports the following: "45% Fibre was from recycled sources"
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
            Commitment applies to all regions, suppliers and operation
            No
            0/2
            If no, what is excluded?: Subsidary
            "We wholly support the role of recycled content in the global pulp and paper supply chain. Indeed, we manufacture many products with recycled content. However, wood fibre can only be recycled a limited number of times due to degradation, so a source of virgin fibre will always be needed. With the rapid harvest rotation of our forest plantations, APP has a sustainable source of renewable virgin fibre that can ultimately be used as recycle." [....] As of 2020 APP Sinar reports the following: "45% Fibre was from recycled sources"
          • Target date
            No target date
            0/1.3
          • Interim target date
            No
            0/0.7
        • Commitment to a traceable supply chain
          0/8
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1.3
          • Interim target date
            No
            0/0.7
      • Social Considerations
        2/18
        • Labour rights in the supply chain
          No
          0/4
          Labour rights in the supply chain
          No
          0/4
          Details of commitment: Discrimination; Forced Labour; Child Labour
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          No commitment
          0/4
          Gender equality in the supply chain
          No commitment
          0/4
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          "In order to avoid and resolve social conflicts 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 [...] 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 HCVF 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 conflict resolution are in accordance with international best practice."
      • Reporting and Implementation
        21/38
        • Reporting against commitments
          4/6
          • Commitment to protect priority forests
            Yes
            2/2
            Commitment to protect priority forests
            Yes
            2/2
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: Yes
            As of 2020 APP Sinar reports the following: "100% Fibre supply from sustainably managed plantations, 45% Fibre was from recycled sources, 38 Pulpwood supplier's concessions are completed ISFMPs, Zero Natural forest conversion by APP pulpwood suppliers since 2013"
          • Commitment to reduce use of virgin wood fibre
            Yes
            2/2
            Commitment to reduce use of virgin wood fibre
            Yes
            2/2
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
            "We wholly support the role of recycled content in the global pulp and paper supply chain. Indeed, we manufacture many products with recycled content. However, wood fibre can only be recycled a limited number of times due to degradation, so a source of virgin fibre will always be needed. With the rapid harvest rotation of our forest plantations, APP has a sustainable source of renewable virgin fibre that can ultimately be used as recycle." [....] As of 2020 APP Sinar reports the following: "45% Fibre was from recycled sources"
          • Commitment to a traceable supply chain
            No
            0/2
        • Reporting is independently verified
          1/4
          • Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            89% PEFC certified
          • Commitment to reduce use of virgin wood fibre
            No
            0/1.3
          • Commitment to a traceable supply chain
            No
            0/1.3
        • Deforestation cut off date
          Yes
          2/2
          Deforestation cut off date
          Yes
          2/2
          Cut-off date: 2013
          "APP and its suppliers will only develop areas that are not forested, as identified 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 identified as forest will take place."
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What initiatives does the company participate in?: We work together with Natural Resources Conservation Agency – East Kalimantan, Kutai National Park, and the Orangutan Foundation International."

          What is the nature of that participation?: Providing support/advice/experience/expertise
          "We support measures to reduce human-orangutan conflicts and continue to raise awareness to help enforce our zero-tolerance policy on harming endangered species. We work together with Natural Resources Conservation Agency – East Kalimantan, Kutai National Park, and the Orangutan Foundation International."
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          How frequently are assessments conducted?: not specified
          "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 fibre. 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 field work, will identify areas that will be protected as well as low carbon areas that can be developed as plantations. "
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "In 2017 we further improved our approach to supplier due diligence. We began by assessing the legal status of supplier companies, through document checks, to ensure that the appropriate and correct permits are in place. Like many robust procurement practices, we also consider the financial stability of a company before conducting business with them. Depending on the output of the assessment, further due diligence is carried out, with site assessments if required."
        • Accessible grievance mechanism
          Yes
          4/4
          Accessible grievance mechanism
          Yes
          4/4
          Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: Yes

          Details of the mechanism: Social; Environmental

          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, focused on social issues, focused on environmental issues, etc.)?: Not disclosed
          "APP’s grievance mechanism is available to all stakeholders, although some cases are not processed through it. Ultimately, the grievance process is used to manage recurring, less significant issues that no longer warrant an MoU. And since the grievance process was launched in 2013, new conflicts have not been significant"
        • Report volumes of commodity
          Reporting non-certified/non-compliant volume
          2/4
          Report volumes of commodity
          Reporting non-certified/non-compliant volume
          2/4
          What is the non-certified/non-compliant volume?: 28,183,579 tonnes
          APP report in 2018 - "Total raw material for pulp = 21,525,654" [...] "Total raw material for packaging = 475,918" [...] "total raw material for paper = 6,182,007"
        • Upstream: Impact assessments for land development/acquisition
          Yes
          4/4
          Upstream: Impact assessments for land development/acquisition
          Yes
          4/4
          How does the company remedy adverse social and environmental impacts linked to their operations and/or supply chains?: Not disclosed
          "APP defines a significant investment as one that requires the mill to update their Environmental Impact Assessment (AMDAL)." "A Social Impact Assessment (SIA) guides APP’s response to the need on the ground, and if relevant, proposes a five-year CSR plan. Each mill has an annual programme of work plan adjusted to their respective needs and developed in consultation with local communities and other beneficiaries"
        • Upstream: Reporting production/processing locations
          No disclosure
          0/4
        • Downstream: Publishing supplier lists
          Yes report direct suppliers
          2/4
          Downstream: Publishing supplier lists
          Yes report direct suppliers
          2/4
          From what country(ies) does the company source material?: Indonesia

          Does the company disclose location of suppliers' production areas or primary processing sites?: No
          APP report their supplier list, broken down by category and region.
        • Upstream: Monitor compliance of production/processing
          Yes using an internal monitoring system
          4/4
          Upstream: Monitor compliance of production/processing
          Yes using an internal monitoring system
          4/4
          Does the company use a certification system?: No

          How frequently is compliance assessed?: not specified

          Does the company use a jurisdictional monitoring mechanism?: No

          What tools, processes, bodies carry out monitoring of the company's production or processing operations?: Forest Monitoring System
          "As one of the monitoring and prevention measures, we implement forest patrol across our and our suppliers concession areas, whether it is by our own resources or collaborating with relevant external stakeholders. Since 2017, we have also put in place a Forest Monitoring System as a alert service, using data from RADARSAT-2 satellite to identify forest cover change that takes place in our protected areas, enabling our team to respond quicker to events on the ground."
        • Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          How frequently is compliance assessed?: not specified

          Details of monitoring: Using internal monitoring and verification systems
          "To ensure that our supply chain is free from deforestation, APP Sinar Mas requires all pulpwood suppliers--both current and potential to comply with our Forest Conservation Policy (FCP) as well as our Responsible Fiber Procurement and Purchasing Policy (RFPPP). It provides an overarching framework for the specific processes and criteria that we use in evaluating their compliance with our FCP. [...] We have developed a robust tool to facilitate the implementation of the RFPPP across our fiber supply chain, called the Supplier Evaluation and Risk Assessment (SERA). For new suppliers, SERA acts as an initial screening to evaluate the level of risk within a supplier’s operations. Developed based on global standards for Sustainable Forest Management, SERA evaluates suppliers against 12 indicators. [....] To ensure that our suppliers manage their concession areas in accordance to the FCP commitments, we have developed and continue to implement the Integrated Sustainable Forest Management Plan (ISFMP)."
        • Downstream: Engagement with non-compliant suppliers
          Blacklist non-compliant suppliers without engagement
          1/2
          Downstream: Engagement with non-compliant suppliers
          Blacklist non-compliant suppliers without engagement
          1/2
          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
          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.
        • Downstream: Disclosure of non-compliant suppliers
          Yes (engaged)
          1/2
          Downstream: Disclosure of non-compliant suppliers
          Yes (engaged)
          1/2
          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: no
          "A summary of all the grievances that we have received and dealt with to date, as well as their corresponding verification report, can be found on the Grievance List."
    • Soy
      0/84
      • Commitment Strength
        0/28
        • Commitment to protect priority forests
          0/17
          • Commitment details
            No commitment
            0/10.7
            Commitment to protect priority forests
            No commitment
            0/10.7
            (For downstream soy companies only) Does the company commitment also apply to hidden/indirect soy?: Supply chain includes no indirect soy
          • Commitment applies to all regions, suppliers and operation
            No
            0/3
          • Target date
            No target date
            0/2
          • Interim target date
            No
            0/1
        • Commitment to a traceable supply chain
          0/11
          • Commitment details
            No traceability commitment
            0/5.3
          • Commitment applies to all regions, suppliers and operation
            No
            0/3
          • Target date
            No target date
            0/2
          • Interim target date
            No
            0/1
      • Social Considerations
        0/18
        • Labour rights in the supply chain
          No
          0/4
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          No commitment
          0/4
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          No commitment
          0/4
      • Reporting and Implementation
        0/38
        • Reporting against commitments
          0/6
          • Commitment to protect priority forests
            No
            0/3
          • Commitment to a traceable supply chain
            No
            0/3
        • Reporting is independently verified
          0/4
          • Commitment to protect priority forests
            No
            0/2
          • Commitment to a traceable supply chain
            No
            0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          No reporting
          0/4
        • Upstream: Impact assessments for land development/acquisition
          No
          0/4
        • Upstream: Reporting production/processing locations
          No disclosure
          0/4
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Upstream: Monitor compliance of production/processing
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
  • Commitment strength
    11/28
    Avg. score
  • Reporting and Implementation
    16/38
    Avg. score
  • Social considerations
    5/18
    Avg. score

Profile

Sinar Mas is an Indonesian conglomerate active in diverse industries, including pulp and paper, agriculture and food, energy, financial services, and real estate. The group’s agricultural business has one of the largest landbanks globally among palm oil producers. It is also one of the largest importers and exporters of palm oil in Indonesia. Its products include cooking oil and margarine. Additionally, the group crushes soy, with an annual capacity of 2.3 million metric tons. Sinar Mas is also a major pulp and paper producer with its company Asia Pulp and Paper, having an annual capacity of more than 20 million metric tons across its mills in Indonesia and China. Sinar Mas is selected as a powerbroker for palm oil, soy and pulp & paper and is also assessed for its exposure to pulp & paper.

Sector
Industry sector 
Agri commodities, Agriculture, Forestry
Segments
Producer, Trader, Processor, Manufacturer
HQ
HQ 
Indonesia
Company Type
Company type 
Private
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.